Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 21, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | LaPorte Bancorp, Inc. | ||
Entity Central Index Key | 1,549,276 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 68,621 | ||
Entity Common Stock, Shares Outstanding | 5,580,115 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from financial institutions | $ 18,459 | $ 8,698 |
Interest-earning time deposits in other financial institutions | 13,599 | 6,615 |
Securities available-for-sale | 122,243 | 155,223 |
Federal Home Loan Bank (FHLB) stock, at cost (restricted) | 4,029 | 4,275 |
Loans held for sale, at fair value | 3,581 | 763 |
Loans, net of allowance for loan losses of $3,634 and $3,595 at December 31, 2015 and 2014 | 341,552 | 306,131 |
Mortgage servicing rights | 334 | 351 |
Other real estate owned | 2,200 | 649 |
Premises and equipment, net | 8,608 | 8,668 |
Goodwill | 8,431 | 8,431 |
Other intangible assets | 153 | 204 |
Bank owned life insurance | 15,034 | 14,608 |
Accrued interest receivable and other assets | 4,968 | 4,000 |
Total assets | 543,191 | 518,616 |
Deposits: | ||
Non-interest bearing | 62,020 | 53,030 |
Interest bearing | 328,939 | 287,738 |
Total deposits | 390,959 | 340,768 |
Federal Home Loan Bank advances | 55,000 | 84,919 |
Subordinated debentures | 5,155 | 5,155 |
Accrued interest payable and other liabilities | 6,529 | 5,386 |
Total liabilities | $ 457,643 | $ 436,228 |
Commitments and contingent liabilities (Note 22) | ||
Shareholders’ equity: | ||
Preferred stock, no par value; 50,000,000 shares authorized | $ 0 | $ 0 |
Common stock, $0.01 par value; 100,000,000 shares authorized at December 31, 2015 and 2014; 5,578,223 and 5,672,968 shares issued and outstanding at December 31, 2015 and 2014 | 56 | 57 |
Additional paid-in capital | 40,120 | 40,609 |
Retained earnings | 47,940 | 44,258 |
Accumulated other comprehensive income, net of tax expense of $162 and $269 at December 31, 2015 and 2014 | 310 | 522 |
Unearned Employee Stock Ownership Plan (ESOP) shares | (2,878) | (3,058) |
Total shareholders’ equity | 85,548 | 82,388 |
Total liabilities and shareholders’ equity | $ 543,191 | $ 518,616 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 3,634 | $ 3,595 |
Preferred stock, par value (in usd per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 5,578,223 | 5,672,968 |
Common stock, shares outstanding | 5,578,223 | 5,672,968 |
Accumulated other comprehensive income (loss), tax | $ (162) | $ (269) |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest and dividend income: | ||
Loans, including fees | $ 15,476,000 | $ 14,065,000 |
Taxable securities | 1,385,000 | 1,951,000 |
Tax exempt securities | 1,557,000 | 1,648,000 |
FHLB stock | 173,000 | 173,000 |
Other interest income | 134,000 | 88,000 |
Total interest and dividend income | 18,725,000 | 17,925,000 |
Interest expense: | ||
Deposits | 1,259,000 | 1,702,000 |
FHLB advances | 1,234,000 | 1,165,000 |
Subordinated debentures | 172,000 | 195,000 |
Short-term borrowings | 4,000 | 3,000 |
Total interest expense | 2,669,000 | 3,065,000 |
Net interest income | 16,056,000 | 14,860,000 |
Provision (credit) for loan losses | 255,000 | (150,000) |
Net interest income after provision for loan losses | 15,801,000 | 15,010,000 |
Noninterest income: | ||
Service charges on deposit accounts | 327,000 | 410,000 |
ATM and debit card fees | 440,000 | 430,000 |
Wire Transfer Fees | 390,000 | 249,000 |
Earnings on life insurance, net | 426,000 | 431,000 |
Net gains on mortgage banking activities | 843,000 | 755,000 |
Loan servicing fees, net | 203,000 | 112,000 |
Net gains on sales of securities available-for-sale | 99,000 | 105,000 |
Gains (losses) on other assets | 64,000 | (200,000) |
Other income | 107,000 | 199,000 |
Total noninterest income | 2,899,000 | 2,491,000 |
Noninterest expense: | ||
Salaries and employee benefits | 7,731,000 | 7,307,000 |
Occupancy and equipment | 1,667,000 | 1,690,000 |
Data processing | 623,000 | 584,000 |
Advertising | 295,000 | 245,000 |
Bank examination fees | 473,000 | 385,000 |
Amortization of intangible assets | 51,000 | 70,000 |
Collection and other real estate owned | 273,000 | 308,000 |
Collection and other real estate owned | 293,000 | 228,000 |
Other expenses | 1,655,000 | 1,581,000 |
Total noninterest expense | 13,061,000 | 12,398,000 |
Income before income taxes | 5,639,000 | 5,103,000 |
Income tax expense | 1,061,000 | 693,000 |
Net income | $ 4,578,000 | $ 4,410,000 |
Earnings per share (Note 24): | ||
Basic earnings per common share (in usd per share) | $ 0.88 | $ 0.82 |
Earnings Per Share, Diluted | $ 0.86 | $ 0.81 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 4,578 | $ 4,410 |
Unrealized holding gains (losses) arising during the period | ||
Unrealized holding gains (losses) arising during the period | (114) | 3,656 |
Reclassification adjustment for gains included in net income | (99) | (105) |
Gross unrealized gains (losses) | (213) | 3,551 |
Related income tax (expense) benefit | 74 | (1,208) |
Net unrealized gains (losses) | (139) | 2,343 |
Unrealized gains (losses) on cash flow hedges: | ||
Gross unrealized gains (losses) | (109) | 25 |
Related income tax (expense) benefit | 36 | (8) |
Net unrealized gains (losses) | (73) | 17 |
Total other comprehensive income (loss) | (212) | 2,360 |
Comprehensive income | $ 4,366 | $ 6,770 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Unearned ESOP Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Tax |
Beginning Balance at Dec. 31, 2013 | $ 80,249 | $ (3,238) | $ 59 | $ 44,495 | $ 40,771 | $ (1,838) |
Net income | 4,410 | |||||
Other comprehensive income (loss) | 2,360 | 2,360 | ||||
Cash dividends on common stock ($0.16 and $0.13 per share for December 31, 2013 and 2012 respectively) | (923) | (923) | ||||
Repurchase of common stock | (4,321) | (3) | (4,318) | |||
ESOP shares earned, 22,486 shares for both December 31, 2013 and 2012 respectively | 251 | 180 | 71 | |||
Exercise of stock options | 28 | 28 | ||||
Stock-based compensation expense | 334 | 1 | 333 | |||
Ending Balance at Dec. 31, 2014 | 82,388 | (3,058) | 57 | 40,609 | 44,258 | 522 |
Net income | 4,578 | |||||
Other comprehensive income (loss) | (212) | (212) | ||||
Cash dividends on common stock ($0.16 and $0.13 per share for December 31, 2013 and 2012 respectively) | (896) | (896) | ||||
Repurchase of common stock | (1,419) | (1) | (1,418) | |||
ESOP shares earned, 22,486 shares for both December 31, 2013 and 2012 respectively | 310 | 180 | 130 | |||
Exercise of stock options | 103 | 103 | ||||
Stock-based compensation expense | 696 | 696 | ||||
Ending Balance at Dec. 31, 2015 | $ 85,548 | $ (2,878) | $ 56 | $ 40,120 | $ 47,940 | $ 310 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash dividends (in usd per share) | $ 0.16 | $ 0.16 |
ESOP shares | 22,486 | 22,486 |
Repurchase of common stock, shares | 109,168 | 382,513 |
Stock activity under compensation plans, shares | 15,308 | 4,472 |
Unearned ESOP Shares | ||
ESOP shares | 22,486 | 22,486 |
Common Stock | ||
Repurchase of common stock, shares | 109,168 | 382,513 |
Additional Paid-In Capital | ||
ESOP shares | 22,486 | 22,486 |
Repurchase of common stock, shares | 109,168 | 382,513 |
Stock activity under compensation plans, shares | 15,308 | 4,472 |
Retained Earnings | ||
Cash dividends (in usd per share) | $ 0.16 | $ 0.16 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | ||
Net income | $ 4,578,000 | $ 4,410,000 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation | 572,000 | 547,000 |
Provision (credit) for loan losses | 255,000 | (150,000) |
Net gains on securities available-for-sale | (99,000) | (105,000) |
Amortization Of Net Premiums On Securities Available For Sale | 687,000 | 944,000 |
Net gains on sales of loans | (798,000) | (722,000) |
Originations of loans held for sale | (26,806,000) | (23,997,000) |
Proceeds from sales of loans held for sale | (24,786,000) | (25,074,000) |
Recognition of mortgage servicing rights | 45,000 | 33,000 |
Amortization of mortgage servicing rights | 67,000 | 65,000 |
Net change in mortgage servicing rights valuation allowance | (5,000) | (15,000) |
Net (gains) losses on sales of other real estate owned | (89,000) | 12,000 |
Other Real Estate and Assets Available for Sale Write Downs | 28,000 | 225,000 |
Earnings on bank owned life insurance, net | (426,000) | (431,000) |
Amortization of intangible assets | 51,000 | 70,000 |
ESOP compensation expense | 310,000 | 251,000 |
Stock based compensation expense | 696,000 | 334,000 |
Changes in assets and liabilities: | ||
Accrued interest receivable and other assets | (875,000) | 399,000 |
Accrued interest payable and other liabilities | 1,034,000 | (173,000) |
Net Cash Provided by (Used in) Operating Activities | 3,921,000 | 6,705,000 |
Cash flows from investing activities: | ||
Net changes in interest-earning time deposits at other financial institutions | (6,984,000) | 27,000 |
Proceeds from sales of securities available-for-sale | 21,539,000 | 26,133,000 |
Proceeds from maturities, calls, and principal repayments of securities available-for-sale | 25,475,000 | 19,662,000 |
Purchases of securities available-for-sale | (14,835,000) | (34,035,000) |
Proceeds from Sale of Federal Home Loan Bank Stock | 246,000 | 100,000 |
Net change in loans | (38,126,000) | (12,810,000) |
Proceeds from sales of other real estate owned | 977,000 | 850,000 |
Purchase of bank owned life insurance | 0 | (500,000) |
Premises and equipment expenditures, net | (512,000) | (231,000) |
Net cash utilized for investing activities | (12,220,000) | (804,000) |
Cash flows from financing activities: | ||
Net change in deposits | 50,191,000 | (5,933,000) |
Proceeds from FHLB long-term advances | 0 | 15,000,000 |
Repayment of FHLB long-term advances | (25,000,000) | (15,000,000) |
Net change in FHLB short-term advances | (4,919,000) | (1,858,000) |
Net change in short-term borrowings | 0 | (2,415,000) |
Stock options exercised | 103,000 | 28,000 |
Dividends paid on common stock | (896,000) | (923,000) |
Repurchase of common stock | (1,419,000) | (4,321,000) |
Net cash provided by (utilized for) financing activities | 18,060,000 | (15,422,000) |
Net increase (decrease) in cash and cash equivalents | 9,761,000 | (9,521,000) |
Cash and cash equivalents at beginning of year | 8,698,000 | 18,219,000 |
Cash and cash equivalents at end of year | 18,459,000 | 8,698,000 |
Cash paid during the period for: | ||
Interest paid | 2,649,000 | 3,087,000 |
Income taxes paid | 1,134,000 | 517,000 |
Supplemental noncash disclosures: | ||
Transfers from loans receivable to other real estate owned | 2,450,000 | 114,000 |
Transfer from Fixed Assets to Other Assets | $ 0 | $ 479,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Principles of Consolidation : The consolidated financial statements include the accounts of LaPorte Bancorp, Inc., a Maryland corporation (the “Bancorp”), its wholly owned subsidiaries, LSB Risk Management, Inc., The LaPorte Savings Bank (the “Bank”), the Bank’s wholly owned subsidiary, LSB Investments Inc. (“LSB Inc.”) and LSB Inc.’s wholly-owned subsidiary, LSB Real Estate, Inc., (“LSB REIT”), together referred to as “the Company.” The Bancorp was formed in June 2012. LSB Risk Management, Inc. was formed on December 27, 2013 as a captive insurance company and is incorporated in Nevada. LSB Inc. was formed on October 1, 2011 to manage a portion of the Bank’s investment portfolio and is incorporated in Nevada. LSB REIT, a real estate investment trust, was formed on January 1, 2013 to invest in assets secured by residential or commercial real estate properties originated by the Bank and is incorporated in Maryland. Intercompany transactions and balances are eliminated in consolidation. The Company provides financial services through its offices in LaPorte and Porter counties in Indiana. The Company also provides residential lending through its loan production office in St. Joseph, Michigan. Its primary deposit products are checking, savings, and term certificate accounts. Its primary lending products are residential mortgage, commercial, and installment loans. The Company also provides lines of credit to mortgage companies. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from the cash flows from operations of the businesses. There are no significant concentrations of loans to any one industry or customer. However, the customers’ ability to repay their loans is dependent on the real estate and general economic conditions in the area. Use of Estimates : To prepare financial statements in conformity with United States generally accepted accounting principles management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The allowance for loan losses, mortgage servicing rights, consideration of other than temporary declines in fair values of securities, the fair values of securities and other financial instruments, consideration of impairment of goodwill and other intangible assets, and the need for a deferred tax asset valuation allowance are particularly subject to change. Cash Flows : Cash and cash equivalents includes cash, deposits with other financial institutions with original maturities under 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions, short term borrowings, and Federal Home Loan Bank advances. Restrictions on Cash and Due from Financial Institutions : The Bank is required to maintain reserve balances in cash or on deposit with the Federal Reserve Bank, based on a percentage of deposits. The total of those required reserve balances was approximately $5.2 million and $2.6 million at December 31, 2015 and 2014 , respectively. The increase in the required reserve balance at December 31, 2015 was primarily due to increased deposit balances during 2015 including balances held in interest bearing accounts for mortgage warehouse participants to be used for funding their portion of mortgage warehouse loans. The nature of the Company’s business requires that it maintain amounts with banks and federal funds sold which, at times, may exceed federally insured limits. Management monitors these correspondent relationships and the Company has not experienced any losses in such accounts. At December 31, 2015 , the Company’s cash accounts exceeded federally insured limits by approximately $13.8 million . Included in this amount are uninsured accounts of approximately $12.1 million at the Federal Reserve Bank of Chicago and Federal Home Loan Bank of Indianapolis. Interest-Earning Time Deposits in Other Financial Institutions : Interest-earning time deposits in other financial institutions mature between one and six years and are carried at cost. Securities : Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities are classified as available-for-sale when they might be sold before maturity. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income (loss), net of tax, as a separate component of shareholders’ equity. Trading securities are carried at fair value, with changes in unrealized holding gains and losses included in income. The Company currently holds all of its investment securities as available-for-sale. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities and collateralized mortgage obligations where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as an impairment through earnings. For securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized through earnings, and 2) OTTI related to other factors, which is recognized in other comprehensive income (loss). A credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. Loans Held for Sale : Residential mortgage loans originated and intended for sale in the secondary market are carried at fair value, as determined by outstanding commitments from investors. The fair value includes the servicing value of the loans. Loans : Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Interest income on residential mortgage and commercial loans is discontinued, and the loan is moved to nonaccrual status at the time the loan is 90 days delinquent, unless the loan is well-secured and in process of collection in accordance with the Company’s policy. Consumer loans are typically charged-off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still accruing include both individually classified impaired loans and smaller balance homogeneous loans that are collectively evaluated for impairment. The Company follows the same nonaccrual policy for troubled debt restructurings. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Troubled debt restructurings are returned to accrual status after at least six months of payments in accordance with the restructured agreements and when management believes future payments are reasonably assured. The recorded investment in loans is the loan balance plus unamortized net deferred loan costs less unamortized net deferred loan fees. The recorded investment in loans does not include accrued interest. The total amount of accrued interest on loans as of December 31, 2015 and 2014 was $756,000 and $628,000 , respectively. Concentration of Credit Risk : The Company offers its loan products to its customers, which are primarily located within La Porte Porter, and Lake counties in Indiana and Berrien county in Michigan. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy in these areas. Mortgage Warehouse Loans : The Bank’s mortgage warehouse lending division has approved specific mortgage companies through which individual mortgage loans are originated by the mortgage company and funded by the Bank as a secured borrowing with the pledge of collateral under the Bank’s agreement with the mortgage company. The individual mortgage loans are held between the time of origination and subsequent repurchase by the mortgage company for sale of the loan into the secondary market. Each individual mortgage is assigned to the Bank until the loan is repurchased and sold to the secondary market by the mortgage company. Also, the Bank takes possession of each original note and forwards such note to the end investor once the mortgage company has sold the loan. The individual loans are typically sold by the mortgage company within 30 days of origination and are seldom held more than 90 days. Interest income is accrued by the Bank during this period, and fee income for each loan sold is collected when the sale has been completed. Purchased Loans : The Company purchased a group of loans through the acquisition of City Savings Financial Corporation on October 12, 2007. Purchased loans that showed evidence of credit deterioration since their origination are recorded at an allocated fair value, such that there is no carryover of the seller’s allowance for loan losses. After acquisition, incurred losses are recognized by an increase in the allowance for loan losses. Purchased loans are accounted for individually or aggregated into pools of loans based on common risk characteristics (e.g., credit score, loan type, and date of origination). The Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Allowance for Loan Losses : The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of shortfall in relation to the principal and interest owed. All individually classified loans are evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated based on the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, it is measured at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over certain time periods. The Company utilizes a historical loss experience based on the actual loss history experienced over the last three years for all portfolio segments. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other change in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: Commercial, Residential Mortgage, Mortgage Warehouse, Residential Construction, Home Equity, and Consumer and Other. The risk characteristics of each of the identified portfolio segments are as follows: Commercial – Subject to decreases in demand for certain products or services; increasing production costs; increases in interest rates on adjustable rate loans may impact borrowers’ ability to continue payments; and adverse market conditions, which may cause a decrease in the value of underlying collateral. Residential Mortgage – Subject to adverse market conditions, which may cause a decrease in the value of underlying collateral; adverse employment conditions in the local economy, which may lead to an increase in default rates; and incremental rate increases on adjustable rate mortgages may impact borrowers’ ability to continue payments. Mortgage Warehouse – Subject to higher fraud risk than our other lending areas and decreased market values in real estate throughout the country. Residential Construction – Subject to adverse market conditions, which may cause a decrease in the value of underlying collateral; and adverse employment conditions in the local economy, which may lead to an increase in default rates. Home Equity – Subject to adverse employment conditions in the local economy, which may lead to an increase in default rates; and decreased market values due to adverse real estate market conditions. Consumer and Other – Subject to adverse employment conditions in the local economy, which may lead to an increase in default rates; and decreased value of the underlying collateral. The Bank is subject to periodic examinations by its federal and state regulatory examiners, and may be required by such regulators to recognize additions to the allowance for loan losses based on their assessment of credit information available to them at the time of their examinations. The process of assessing the allowance for loan losses is necessarily subjective. Further, and particularly in times of economic downturns, it is reasonably possible that future credit losses may exceed historical loss levels and may also exceed management’s current estimates of incurred credit losses inherent within the loan portfolio. As such, there can be no assurance that future charge-offs will not exceed management’s current estimate of what constitutes a reasonable allowance for loan losses. Mortgage Servicing Rights: When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in net gains on mortgage banking activities. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds, and default rates and losses. The Company compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type, and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with loan servicing fees, net on the consolidated statements of income. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is reported on the consolidated statements of income as loan servicing fees, net, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal; or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Loan servicing fees, net totaled $203,000 and $112,000 for the years ended December 31, 2015 and 2014 . The increase in loan servicing fees, net for the year ended December 31, 2015 from 2014 is primarily due to the mortgage warehouse participations that were entered into during 2015. Each mortgage warehouse participant pays the Company a loan servicing fee for the portion of the loans sold. Late fees and ancillary fees related to loan servicing are not material. Transfers of Financial Assets : Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Other Real Estate Owned : Assets acquired through loan foreclosure or in-substance foreclosure are initially recorded at fair value, less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, the Company records a write-down to fair value through expense. Operating costs after acquisition are expensed. Premises and Equipment : Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives ranging from 5 to 30 years. Furniture, fixtures, and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 10 years. Leasehold improvements are amortized over the life of the lease. Federal Home Loan Bank (FHLB) Stock: The Bank is a member of the FHLB system. Members are required to own a certain amount of FHLB stock based on the level of FHLB borrowings and other factors and may invest in additional amounts. FHLB stock is carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Bank Owned Life Insurance : The Bank has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Goodwill and Other Intangible Assets : All goodwill on the Company’s balance sheet resulted from business combinations prior to January 1, 2009 and represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. The Company has selected October 31st as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Other intangible assets consist of core deposit intangible assets arising from a whole bank acquisition. They are initially measured at fair value and are then amortized on an accelerated method over their estimated useful life of 15 years. Loan Commitments and Related Financial Instruments : Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Derivatives : At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income (loss) and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest income. As of December 31, 2015 , the Company had entered into four cash flow hedge transactions, including one which is a forward starting hedge to begin in March 2016. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income (loss) are amortized into earnings over the same periods which the hedged transactions will affect earnings. Mortgage Banking Derivatives : Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest rate on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in net gains on mortgage banking activities on the consolidated statements of income. Stock-Based Compensation : Compensation cost is recognized for stock options and restricted stock awards issued to employees based on the fair value of these awards at the grant date. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the grant date is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Income Taxes : Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is 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% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Retirement Plans : Employee 401(k) plan expense is the amount of the Company’s matching contributions to eligible employees participating in the 401(k) plan. Split-dollar life insurance plan expense and supplemental retirement plan expense allocates the benefits over years of service. Employee Stock Ownership Plan : The cost of shares issued to the Employee Stock Ownership Plan (“ESOP”), but not yet allocated to participants, is shown as a reduction of shareholders’ equity. Compensation expense is based on the market price of shares as they are committed to be released to participant accounts. Dividends on allocated ESOP shares reduce retained earnings; dividends on unearned ESOP shares reduce debt and accrued interest. Earnings Per Common Share : Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. ESOP shares are considered outstanding for this calculation unless unearned. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options. Comprehensive Income (Loss) : Comprehensive income (loss), net of tax, consists of net income and other comprehensive income (loss), net of tax. Other comprehensive income (loss), net of tax, includes net changes in unrealized gains and losses on securities available-for-sale, net of tax, reclassification adjustments, and unrealized gains and losses on cash flow hedges, which are also recognized as a separate component of shareholders’ equity. Loss Contingencies : Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the consolidated financial statements. Dividend |
Securities
Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The amortized cost and fair value of available-for-sale securities and the related gross unrealized gains and losses were as follows: December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) U.S. federal agency obligations $ 9,442 $ 1 $ (71 ) $ 9,372 State and municipal 50,020 2,397 (17 ) 52,400 Mortgage-backed securities – residential 17,671 98 (73 ) 17,696 Government agency sponsored collateralized mortgage obligations 42,376 139 (679 ) 41,836 Corporate debt securities 1,000 — (61 ) 939 Total $ 120,509 $ 2,635 $ (901 ) $ 122,243 December 31, 2014 Amortized Costs Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) U.S. federal agency obligations $ 7,447 $ 14 $ (66 ) $ 7,395 State and municipal 54,298 2,638 (89 ) 56,847 Mortgage-backed securities – residential 27,391 185 (88 ) 27,488 Government agency sponsored collateralized mortgage obligations 63,140 290 (900 ) 62,530 Corporate debt securities 1,000 — (37 ) 963 Total $ 153,276 $ 3,127 $ (1,180 ) $ 155,223 At December 31, 2015 and 2014 , all of our mortgage-backed securities were issued by U.S. government-sponsored enterprises, and all of our collateralized mortgage obligations were issued by either U.S. government-sponsored enterprises or the U.S. Small Business Administration. Securities with unrealized losses at December 31, 2015 and 2014 , aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are presented in the following tables: December 31, 2015 Continuing Unrealized Loss For Less Than 12 Months Continuing Unrealized Loss For 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (Dollars in thousands) U.S. federal agency obligations $ 8,371 $ (71 ) $ — $ — $ 8,371 $ (71 ) State and municipal 4,512 (14 ) 856 (3 ) 5,368 (17 ) Mortgage-backed securities – residential 9,259 (48 ) 809 (25 ) 10,068 (73 ) Government agency sponsored collateralized mortgage obligations 11,200 (136 ) 18,148 (543 ) 29,348 (679 ) Corporate debt securities — — 939 (61 ) 939 (61 ) Total temporarily impaired $ 33,342 $ (269 ) $ 20,752 $ (632 ) $ 54,094 $ (901 ) December 31, 2014 Continuing Unrealized Loss For Less Than 12 Months Continuing Unrealized Loss For 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (Dollars in thousands) U.S. federal agency obligations $ 2,792 $ (8 ) $ 2,942 $ (58 ) $ 5,734 $ (66 ) State and municipal 3,571 (11 ) 5,506 (78 ) 9,077 (89 ) Mortgage-backed securities – residential 13,261 (40 ) 3,073 (48 ) 16,334 (88 ) Government agency sponsored collateralized mortgage obligations 5,845 (34 ) 33,504 (866 ) 39,349 (900 ) Corporate debt securities 963 (37 ) — — 963 (37 ) Total temporarily impaired $ 26,432 $ (130 ) $ 45,025 $ (1,050 ) $ 71,457 $ (1,180 ) At December 31, 2015 , the Company held 67 investments in debt securities totaling $54.1 million , or 44.3% of its total debt securities, in an unrealized loss position, of which 41 were in an unrealized loss position for less than twelve months and 26 were in an unrealized loss position for more than twelve months. At December 31, 2014 , the Company held 86 investments in debt securities totaling $71.5 million , or 46.0% of its total debt securities, in an unrealized loss position, of which 32 were in an unrealized loss position for less than twelve months and 54 were in an unrealized loss position for more than twelve months. Management periodically evaluates each investment security for potential other than temporary impairment, relying primarily on industry analyst reports and observation of market conditions and interest rate fluctuations. The unrealized losses on the Company’s investments in U.S. federal agency obligations, mortgage-backed securities, agency collateralized mortgage obligations, and corporate debt securities were a result of changes in interest rates and not a result of a decline in credit quality. Management believes it will be able to collect all amounts due according to the contractual terms of the underlying investment securities and that the noted declines in fair value are considered temporary. The unrealized losses on the Company’s investment in state and municipal securities were also caused by changes in interest rates. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The Company does not intend to sell the securities and is not more likely than not to be required to sell them before their anticipated recovery. The proceeds from sales of securities available-for-sale were as follows: Year Ended December 31, 2015 2014 (Dollars in thousands) Proceeds $ 21,539 $ 26,133 Gross gains 166 203 Gross losses (67 ) (98 ) The amortized cost and fair value of the investment securities portfolio are shown by contractual maturity. Securities not due at a single maturity date, primarily mortgage-backed securities and government agency sponsored collateralized mortgage obligations, are shown separately. December 31, 2015 Amortized Cost Fair Value (Dollars in thousands) Due in one year or less $ 641 $ 648 Due from one to five years 20,084 20,271 Due from five to ten years 28,438 29,636 Due after ten years 11,299 12,156 Subtotal 60,462 62,711 Mortgage-backed securities and government agency sponsored collateralized mortgage obligations 60,047 59,532 Total $ 120,509 $ 122,243 Securities pledged at December 31, 2015 and 2014 had a carrying amount of approximately $43.1 million and $40.2 million , respectively. Securities pledged at December 31, 2015 were pledged to FHLB advances and cash flow hedges. Securities pledged at December 31, 2014 were pledged to FHLB advances, cash flow hedges, and short-term borrowings through the Federal Reserve Bank discount window. At December 31, 2015 and 2014 , there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of shareholders’ equity. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
LOANS | LOANS Loans were as follows for the dates indicated: December 31, 2015 2014 (Dollars in thousands) Commercial $ 154,830 $ 118,312 Residential mortgage 40,478 39,317 Mortgage warehouse 128,902 132,636 Residential construction 3,301 1,664 Home equity 13,990 13,195 Consumer and other 3,380 4,325 Subtotal 344,881 309,449 Less: Net deferred loan (fees) costs 305 277 Allowance for loan losses (3,634 ) (3,595 ) Loans, net $ 341,552 $ 306,131 As of December 31, 2015 and 2014 , the Bank’s mortgage warehouse division had active repurchase agreements with 37 and 29 mortgage companies, respectively. The following table identifies the activity and related interest and fee income attributable to the mortgage warehouse division for the years ended December 31, 2015 and 2014 : For the Year Ended December 31, 2015 2014 (Dollars in thousands) Mortgage warehouse: Originations $ 3,633,087 $ 2,195,170 Sold loans 3,529,726 2,178,953 Interest income 4,954 4,555 Warehouse fees 1,133 695 Wire transfer fees 364 223 Loan servicing fees 109 — The increase in activity during the year ended December 31, 2015 was related to the Company implementing a participation program with local financial institutions. The total participations sold increase the availability for the Company to fund mortgage warehouse loans. At December 31, 2015 , the total participated balance of mortgage warehouse loans was $101.0 million and the total lines of credit availability was $14.0 million . The Company records a servicing fee on the participated balances. |
Allowance for Loan Losses (Note
Allowance for Loan Losses (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Allowance for Credit Losses | ALLOWANCE FOR LOAN LOSSES The following tables present the activity in the allowance for loan losses by portfolio segment for the years ending December 31, 2015 and 2014 : Year Ended December 31, 2015 Commercial Residential Mortgage Mortgage Warehouse Residential Construction Home Equity Consumer and Other Unallocated Total (Dollars in thousands) Allowance for loan losses: Beginning balance $ 2,116 $ 676 $ 654 $ 4 $ 90 $ 55 $ — $ 3,595 Charge-offs (20 ) (78 ) — — (18 ) (122 ) — (238 ) Recoveries 1 — — — 1 20 — 22 Provision 343 (7 ) (194 ) — 20 93 — 255 Ending balance $ 2,440 $ 591 $ 460 $ 4 $ 93 $ 46 $ — $ 3,634 Year Ended December 31, 2014 Commercial Residential Mortgage Mortgage Warehouse Residential Construction Home Equity Consumer and Other Unallocated Total (Dollars in thousands) Allowance for loan losses: Beginning balance $ 2,725 $ 458 $ 508 $ — $ 111 $ 83 $ 20 $ 3,905 Charge-offs — (159 ) — — (12 ) (30 ) — (201 ) Recoveries — 21 — — 5 15 — 41 Provision (609 ) 356 146 4 (14 ) (13 ) (20 ) (150 ) Ending balance $ 2,116 $ 676 $ 654 $ 4 $ 90 $ 55 $ — $ 3,595 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2015 and 2014 : December 31, 2015 Commercial Residential Mortgage Mortgage Warehouse Residential Construction Home Equity Consumer and Other Unallocated Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 885 $ 43 $ — $ — $ 17 $ — $ — $ 945 Collectively evaluated for impairment 1,555 548 460 4 76 46 — 2,689 Acquired with deteriorated credit quality — — — — — — — — Total ending allowance $ 2,440 $ 591 $ 460 $ 4 $ 93 $ 46 $ — $ 3,634 Loans: Individually evaluated for impairment $ 2,920 $ 1,283 $ — $ — $ 97 $ — $ — $ 4,300 Collectively evaluated for impairment 151,910 39,089 128,902 3,301 13,893 3,380 — 340,475 Acquired with deteriorated credit quality — 106 — — — — — 106 Total ending loan balance $ 154,830 $ 40,478 $ 128,902 $ 3,301 $ 13,990 $ 3,380 $ — $ 344,881 December 31, 2014 Commercial Residential Mortgage Mortgage Warehouse Residential Construction Home Equity Consumer and Other Unallocated Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 764 $ 122 $ — $ — $ — $ — $ — $ 886 Collectively evaluated for impairment 1,352 554 654 4 90 55 — 2,709 Acquired with deteriorated credit quality — — — — — — — — Total ending allowance $ 2,116 $ 676 $ 654 $ 4 $ 90 $ 55 $ — $ 3,595 Loans: Individually evaluated for impairment $ 9,005 $ 2,206 $ — $ — $ 7 $ — $ — $ 11,218 Collectively evaluated for impairment 108,688 36,999 132,636 1,664 13,188 4,325 — 297,500 Acquired with deteriorated credit quality 619 112 — — — — — 731 Total ending loan balance $ 118,312 $ 39,317 $ 132,636 $ 1,664 $ 13,195 $ 4,325 $ — $ 309,449 The following tables present information related to impaired loans by class of loans as of and for the years ended December 31, 2015 and 2014 : December 31, 2015 Year Ended December 31, 2015 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized (Dollars in thousands) With no related allowance recorded: Commercial: Commercial and other $ — $ — $ — $ 1 $ — $ — Real estate 1,436 1,366 — 1,556 103 6 Five or more family — — — 910 60 — Residential mortgage 1,054 988 — 997 16 — Home equity 81 80 — 58 4 — Subtotal 2,571 2,434 — 3,522 183 6 With an allowance recorded: Commercial: Real estate 1,214 1,214 624 1,368 9 — Construction 41 41 41 10 — — Land 431 299 220 1,362 — — Residential mortgage 355 295 43 583 11 — Home equity 17 17 17 18 — — Consumer and other — — — 51 — — Subtotal 2,058 1,866 945 3,392 20 — Total $ 4,629 $ 4,300 $ 945 $ 6,914 $ 203 $ 6 December 31, 2014 Year Ended December 31, 2014 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized (Dollars in thousands) With no related allowance recorded: Commercial: Real estate $ 2,962 $ 2,960 $ — $ 2,906 $ 175 $ — Five or more family 3,699 3,699 — 3,670 234 — Land 138 123 — 184 — 9 Residential mortgage 1,151 1,103 — 1,365 9 — Residential construction: Land — — — 13 — — Home equity 8 7 — 8 — — Subtotal 7,958 7,892 — 8,146 418 9 With an allowance recorded: Commercial: Real estate 830 769 281 806 — — Land 1,937 1,454 483 2,034 — — Residential mortgage 1,169 1,103 122 570 9 — Home equity — — — 20 — — Subtotal 3,936 3,326 886 3,430 9 — Total $ 11,894 $ 11,218 $ 886 $ 11,576 $ 427 $ 9 Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following table presents the recorded investment in nonaccrual loans by class of loans as of December 31, 2015 and 2014 . The Bank had no loans greater than 90 days past due that were still accruing as of December 31, 2015 and 2014 . December 31, 2015 2014 (Dollars in thousands) Nonaccrual loans: Commercial: Commercial and other $ — $ 27 Real estate 1,396 879 Construction 41 — Land 299 1,577 Residential mortgage 590 1,933 Home equity 23 7 Total $ 2,349 $ 4,423 The following tables present the aging of the recorded investment in past due loans as of December 31, 2015 and 2014 by class of loans: December 31, 2015 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Loans Not Past Due Total (Dollars in thousands) Commercial: Commercial and other $ — $ — $ — $ — $ 18,117 $ 18,117 Real estate 1,282 — 102 1,384 90,916 92,300 Five or more family 20 — — 20 22,672 22,692 Construction 41 — — 41 11,041 11,082 Land — — — — 10,639 10,639 Residential mortgage 176 — 495 671 39,807 40,478 Mortgage warehouse — — — — 128,902 128,902 Residential construction: Construction — — — — 2,423 2,423 Land — — — — 878 878 Home equity — — 8 8 13,982 13,990 Consumer and other — — — — 3,380 3,380 Total $ 1,519 $ — $ 605 $ 2,124 $ 342,757 $ 344,881 December 31, 2014 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Loans Not Past Due Total (Dollars in thousands) Commercial: Commercial and other $ — $ — $ 27 $ 27 $ 17,388 $ 17,415 Real estate 72 — 822 894 74,369 75,263 Five or more family — — — — 16,486 16,486 Construction — — — — 2,322 2,322 Land — — 1,216 1,216 5,610 6,826 Residential mortgage 454 203 920 1,577 37,740 39,317 Mortgage warehouse — — — — 132,636 132,636 Residential construction: Construction — — — — 1,472 1,472 Land — — — — 192 192 Home equity — 73 7 80 13,115 13,195 Consumer and other 19 — — 19 4,306 4,325 Total $ 545 $ 276 $ 2,992 $ 3,813 $ 305,636 $ 309,449 Troubled Debt Restructurings A loan modification is considered a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulty and the Company grants a concession it would not otherwise consider but for the borrower’s financial difficulties. The following table presents the Company’s TDRs as of the dates indicated: December 31, 2015 2014 (Dollars in thousands) TDRs: Performing in accordance with modified repayment terms $ 1,720 $ 5,873 Nonperforming — 762 Total $ 1,720 $ 6,635 Specific reserve $ — $ 23 TDRs previously disclosed resulted in no charge-offs during the years ending December 31, 2015 and 2014 . The Company has not committed to lend additional amounts as of December 31, 2015 and 2014 to customers with outstanding TDR loans. The following tables present loans by class that were modified as troubled debt restructurings during the year ending December 31, 2015 and 2014 : Year Ended December 31, 2015 Year Ended December 31, 2014 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Commercial: Real estate 4 $ 1,213 $ 1,221 3 $ 2,106 $ 2,106 Five or more family — — — 2 3,507 3,750 Residential mortgage — — — 4 514 673 Home equity 1 73 78 — — — Total 5 $ 1,286 $ 1,299 9 $ 6,127 $ 6,529 During the year ended December 31, 2015, the concessions granted by the Company consisted of a reduction in monthly payments and loan refinances at below market interest rates. During the year ended December 31, 2014, the concessions granted by the Company consisted of loan refinances at below market interest rates. The troubled debt restructurings described above did not require any additional reserves or result in any charge-offs during the years ended December 31, 2015 and 2014 . There were no TDRs that defaulted within twelve months following the modification for the years ended December 31, 2015 and 2014 . A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s management loan committee. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. The analysis includes loans with risk ratings of Special Mention, Substandard, and Doubtful. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Special Mention . Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard . Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful . Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. The Bank monitors credit quality on loans not rated through the loan’s individual payment performance. As of December 31, 2015 and 2014 , and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: December 31, 2015 Pass Special Mention Substandard Doubtful (Dollars in thousands) Commercial: Commercial and other $ 17,807 $ 310 $ — $ — Real estate 86,548 3,075 2,677 — Five or more family 22,692 — — — Construction 11,041 — 41 — Land 10,258 82 299 — Residential mortgage 39,490 21 967 — Mortgage warehouse 128,902 — — — Residential construction: Construction 2,423 — — — Land 878 — — — Home equity 13,893 — 97 — Consumer and other 3,380 — — — Total $ 337,312 $ 3,488 $ 4,081 $ — December 31, 2014 Pass Special Mention Substandard Doubtful (Dollars in thousands) Commercial: Commercial and other $ 17,397 $ — $ 18 $ — Real estate 67,597 1,663 5,983 20 Five or more family 12,787 — 3,699 — Construction 2,322 — — — Land 5,147 102 1,577 — Residential mortgage 36,827 120 2,370 — Mortgage warehouse 132,636 — — — Residential construction: Construction 1,472 — — — Land 192 — — — Home equity 13,113 73 9 — Consumer and other 4,325 — — — Total $ 293,815 $ 1,958 $ 13,656 $ 20 Purchased Loans The Company purchased loans during 2007, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The outstanding balance and carrying amount of those loans is as follows at the dates indicated: December 31, 2015 2014 (Dollars in thousands) Commercial: Commercial and other $ — $ 27 Real estate — 621 Residential mortgage 106 112 Outstanding balance $ 106 $ 760 Carrying amount, net of allowance of $0 $ 106 $ 731 Accretable yield, or income expected to be collected, is as follows: Year Ended December 31, 2015 2014 (Dollars in thousands) Beginning balance $ 18 $ 73 Accretion of income (18 ) (55 ) Ending balance $ — $ 18 For the purchased loans disclosed above, the Company did not increase the allowance for loan losses during 2015 or 2014 . No allowances for loan losses were reversed during 2015 or 2014 . |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate the fair value of each type of financial asset: Investment Securities : The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). Loans Held for Sale and Loan Commitment Derivatives : The fair value of loans held for sale and residential mortgage loan commitments are determined by obtaining quoted prices for similar loans and commitments with similar interest rates and maturities from major secondary markets (Level 2). Derivatives-Interest Rate Swaps : The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). Impaired Loans : At the time a loan is considered impaired, it is valued at the lower of cost or fair value, less estimated costs to sell. Impaired loans carried at fair value generally receive specific allocations of the allowance for loan losses. For collateral dependent loans, fair value is commonly based on recent real estate appraisals performed by qualified independent third-party appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including cost, comparable sales, and the income approach. The cost approach is based on the cost to replace the existing property. The comparable sales approach evaluates the sales prices of comparable properties within the same market area. The income approach considers net operating income generated by the property and the rate of return required by an investor. Adjustments are routinely made in the appraisal process by the independent third-party appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Other Real Estate Owned : Assets acquired through or instead of loan foreclosures are initially recorded at fair value less cost to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals performed by qualified independent third-party appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including cost, comparable sales, and the income approach. The cost approach is based on the cost to replace the existing property. The comparable sales approach evaluates the sales prices of comparable properties within the same market area. The income approach considers net operating income generated by the property and the rate of return required by an investor. Adjustments are routinely made in the appraisal process by the independent third-party appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. The President and Chief Financial Officer (“President/CFO”), Senior Vice President – Chief Accounting Officer (“SVP – CAO”), and Executive Vice President – Credit (“EVP – Credit”) are responsible for determining the valuation processes and procedures for the fair value measurement of impaired loans and other real estate owned properties. The President/CFO, SVP – CAO, and EVP – Credit review impaired loans and other real estate owned properties on a quarterly basis to determine the accuracy of third-party appraisals, auction values, values derived from trade publications and any additional data received from the borrower, and the appropriateness of unobservable inputs, generally discounts due to collection issues and current market conditions which are utilized in determining the fair value. The EVP – Credit determines discounts based on the valuation source and asset type for impaired loans. These discounts are reviewed periodically, annually at a minimum, for appropriateness. Current trends in market values and gains and losses on sales of similar assets are also considered when determining discounts of asset categories. The tables below present the valuation methodology and unobservable inputs for impaired loans and other real estate owned at December 31, 2015 and 2014 . December 31, 2015 Valuation Methodology Unobservable Inputs Range of Inputs Average of Inputs Impaired loans: Commercial: Real Estate Appraisals Discounts for changes in market conditions 8% 8% Land Appraisals Discounts for changes in 10% 10% Residential mortgage Appraisals Discounts for changes in 0-20% 10% Other real estate owned, net: Residential mortgage Appraisals Discounts for changes in 30% 30% December 31, 2014 Valuation Methodology Unobservable Inputs Range of Inputs Average of Inputs Impaired loans: Commercial: Real Estate Appraisals Discount for changes in market conditions 20-90% 34% Land Appraisals Discount for changes in 10-20% 18% Residential mortgage Appraisals Discount for changes in 0-20% 7% Other real estate owned, net: Commercial: Real Estate Appraisals Discount for changes in 10% 10% Land Appraisals Discount for changes in 0-37% 18% Residential construction: Land Appraisals Discount for changes in 20% 20% Mortgage Servicing Rights : On a quarterly basis, mortgage servicing rights are evaluated for impairment based on the fair value of the rights as compared to the carrying amount. If the carrying amount of an individual tranche exceeds fair value, impairment is recorded on that tranche so that the servicing asset is carried at fair value. Fair value is determined at a tranche level, based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data (Level 2). Fair value at December 31, 2015 was determined using a discount rate of 10.0% ; prepayment speeds ranging from 6.9% to 22.1% , depending on the stratification of the specific right; and a weighted average default rate of approximately 0.5% . Fair value at December 31, 2014 was determined using a discount rate of 10.0% ; prepayment speeds ranging from 8.8% to 23.9% , depending on the stratification of the specific right; and a weighted average default rate of approximately 0.5% . Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below: December 31, 2015 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial Assets: Investment securities available-for-sale: U.S. federal agency obligations $ 9,372 $ — $ 9,372 $ — State and municipal 52,400 — 52,400 — Mortgage-backed securities – residential 17,696 — 17,696 — Government agency sponsored collateralized mortgage obligations 41,836 — 41,836 — Corporate debt securities 939 — 939 — Total investment securities available-for-sale $ 122,243 $ — $ 122,243 $ — Loans held for sale $ 3,581 $ — $ 3,581 $ — Derivatives – residential mortgage loan commitments $ 39 $ — $ 39 $ — Financial Liabilities: Derivatives – interest rate swaps $ (1,265 ) $ — $ (1,265 ) $ — December 31, 2014 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial Assets: Investment securities available-for-sale: U.S. federal agency obligations $ 7,395 $ — $ 7,395 $ — State and municipal 56,847 — 56,847 — Mortgage-backed securities – residential 27,488 — 27,488 — Government agency sponsored collateralized mortgage obligations 62,530 — 62,530 — Corporate debt securities 963 — 963 — Total investment securities available-for-sale $ 155,223 $ — $ 155,223 $ — Loans held for sale $ 763 $ — $ 763 $ — Derivatives – residential mortgage loan commitments $ 53 $ — $ 53 $ — Financial Liabilities: Derivatives – interest rate swaps $ (1,156 ) $ — $ (1,156 ) $ — There were no transfers between Level 1, Level 2, and Level 3 during the years ended December 31, 2015 or 2014 . The Company has elected the fair value option for loans held for sale. These loans are intended for sale, and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on loans held for investment. None of these loans are 90 days or more past due nor on nonaccrual as of December 31, 2015 and 2014 . The aggregate fair value, contractual principal, and gain or loss for loans held for sale was as follows: December 31, 2015 2014 Aggregate Fair Value Gain (Loss) Contractual Principal Aggregate Fair Value Gain (Loss) Contractual Principal (Dollars in thousands) Loans held for sale $ 3,581 $ 110 $ 3,471 $ 763 $ 24 $ 739 The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value for the years ended December 31, 2015 and 2014 : Year Ended December 31, 2015 2014 (Dollars in thousands) Loans held for sale Other gains (losses) $ 45 $ (6 ) Interest income 41 30 Interest expense — — Total changes in fair values included in current period earnings $ 86 $ 24 For items for which the fair value option has been elected, interest income is recorded within the consolidated statements of income and comprehensive income (loss) based on the contractual amount of interest income earned on financial assets (none were delinquent or in nonaccrual status). Assets measured at fair value on a non-recurring basis are summarized below: December 31, 2015 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Impaired loans: Commercial: Real estate $ 590 $ — $ — $ 590 Land 79 — — 79 Residential mortgage 252 — — 252 Home equity — — — — Other real estate owned, net: Residential mortgage 36 — — 36 Mortgage servicing rights 145 — 145 — December 31, 2014 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Impaired loans: Commercial: Real estate $ 488 $ — $ — $ 488 Land 971 — — 971 Residential mortgage 981 — — 981 Other real estate owned, net: Commercial: Real estate 67 — — 67 Land 512 — — 512 Residential construction – land 45 — — 45 Mortgage servicing rights 173 — 173 — Impaired loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a gross carrying amount of $1.9 million , with a valuation allowance of $945,000 at December 31, 2015 , resulting in an additional provision for loan losses of $764,000 for the year ended December 31, 2015 . At December 31, 2014 , impaired loans had a gross carrying amount of $3.3 million , with a valuation allowance of $886,000 , resulting in a reversal of provision for loan losses of $87,000 for the year ended December 31, 2014 . Other real estate owned, which is measured at the lower of carrying or fair value less costs to sell, had a net carrying amount of $36,000 at December 31, 2015 , resulting in write-downs of $10,000 for the year ended December 31, 2015 . At December 31, 2014 , other real estate owned had a net carrying amount of $624,000 at December 31, 2014 , resulting in write-downs of $176,000 for the year ending December 31, 2014 . Mortgage servicing rights, which are carried at lower of cost or fair value, were carried at their fair value of $145,000 , which is made up of the outstanding balance of $231,000 , net of a valuation allowance of $86,000 at December 31, 2015 , resulting in a reversal of $5,000 for the year ending December 31, 2015 . At December 31, 2014 , mortgage servicing rights were carried at their fair value of $173,000 , which is made up of the outstanding balance of $264,000 , net of a valuation allowance of $91,000 , resulting in a reversal of $15,000 for the year ended December 31, 2014 . The carrying amounts and estimated fair values of financial instruments are as follows: December 31, 2015 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial assets: Cash and due from financial institutions $ 18,459 $ 18,459 $ — $ — Interest-earning time deposits in other financial institutions 13,599 — 13,641 — Securities available-for-sale 122,243 — 122,243 — Loans held for sale 3,581 — 3,581 — Loans, net 341,552 — — 344,488 Federal Home Loan Bank stock 4,029 — 4,029 — Accrued interest receivable 1,519 — 760 759 Financial liabilities: Deposits $ (390,959 ) $ — $ (390,914 ) $ — Federal Home Loan Bank advances (55,000 ) — (55,197 ) — Subordinated debentures (5,155 ) — — (5,139 ) Accrued interest payable (175 ) — (172 ) (3 ) Derivatives – interest rate swaps (1,265 ) — (1,265 ) — December 31, 2014 Carrying Quoted Prices in Significant Significant (Dollars in thousands) Financial assets: Cash and due from financial institutions $ 8,698 $ 8,698 $ — $ — Interest-earning time deposits in other financial institutions 6,615 — 6,636 — Securities available-for-sale 155,223 — 155,223 — Loans held for sale 763 — 763 — Loans, net 306,131 — — 309,903 Federal Home Loan Bank stock 4,275 — 4,275 — Accrued interest receivable 1,485 — 857 628 Financial liabilities: Deposits $ (340,768 ) $ — $ (340,830 ) $ — Federal Home Loan Bank advances (84,919 ) — (85,078 ) — Subordinated debentures (5,155 ) — — (5,149 ) Accrued interest payable (155 ) — (152 ) (3 ) Derivatives – interest rate swaps (1,156 ) — (1,156 ) — The methods and assumptions, not previously presented, used to estimate fair value are described as follows: Cash and due from financial institutions : The carrying amounts of cash and due from financial institutions approximate fair values and are classified as Level 1. Interest-earning time deposits at other financial institutions : The fair values of the Company’s interest-earning time deposits at other financial institutions are estimated using discounted cash flow analyses based on current rates for similar types of interest-earning time deposits and are classified as Level 2. Loans held for sale : The fair value of loans held for sale is estimated based upon binding contracts and quotes from third-party investors resulting in a Level 2 classification. Loans : The fair values of loans is based on discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price. Federal Home Loan Bank stock : The fair value of FHLB stock is based on the price at which it may be resold to the FHLB. Deposits : The carrying amounts of demand deposits approximate fair values and are classified as Level 2. Fair value of fixed rate certificates of deposit are estimated using a cash flow calculation reduced by known maturities, estimated principal payments, and estimated early withdrawal amounts. These cash flows are discounted to the current market rate. This results in a Level 2 classification. Federal Home Loan Bank advances : The fair values of the Company’s FHLB advances are estimated using discounted cash flow analyses based on current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification. Subordinated Debentures : The fair value of the Company’s subordinated debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 3 classification. Accrued Interest Receivable/Payable : The carrying amounts of accrued interest approximate fair value resulting in a Level 1, Level 2, or Level 3 classification based on the underlying asset or liability. |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2015 | |
Loan Servicing [Abstract] | |
LOAN SERVICING | LOAN SERVICING Mortgage loans serviced for others are not reported as assets. The principal balances of these loans for the dates indicated are as follows: December 31, 2015 2014 (Dollars in thousands) Mortgage loan portfolios serviced for: FHLMC $ 56,968 $ 59,938 FHLB 1,591 1,339 Total $ 58,559 $ 61,277 Custodial escrow balances maintained in connection with serviced loans were $437,000 and $358,000 , respectively, at December 31, 2015 and 2014 . Activity for capitalized mortgage servicing rights was as follows: Year Ended December 31, 2015 2014 (Dollars in thousands) Servicing rights: Beginning of year $ 351 $ 368 Additions 45 33 Amortized to expense (67 ) (65 ) Change in valuation allowance 5 15 End of year $ 334 $ 351 Valuation allowance: Beginning of year $ 91 $ 106 Additions expensed 17 5 Reductions credited to expense (22 ) (20 ) Direct write-downs — — End of year $ 86 $ 91 The weighted average amortization period for mortgage servicing rights was 4.10 years at December 31, 2015 . The Company also services mortgage warehouse loans for the mortgage warehouse participation program that was implemented during 2015. At December 31, 2015 , the program included three local financial institutions. The principal balances serviced totaled $101.0 million at December 31, 2015 . |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT Premises and equipment were as follows for the dates indicated: December 31, 2015 2014 (Dollars in thousands) Land $ 2,355 $ 2,355 Buildings 10,205 10,076 Furniture, fixtures, and equipment 5,430 5,580 Leasehold improvements 45 45 Construction in progress — 17 18,035 18,073 Less: Accumulated depreciation (9,427 ) (9,405 ) $ 8,608 $ 8,668 Depreciation expense was $572,000 and $547,000 , respectively, for the years ended December 31, 2015 and 2014 . During the year ended December 31, 2014, the Company transferred the land and building associated with one of its branches to assets held for sale when the branch was closed. The assets were transferred at the fair market value less costs to sell which totaled $65,000 . During the fourth quarter of 2014, the Company also transferred land previously acquired for a branch location to other real estate owned at the fair market value less costs to sell which totaled $325,000 . The Company leases its loan production office in St. Joseph, Michigan under an operating lease. Rent expense was $14,000 for the years ended December 31, 2015 and 2014 , respectively. Rent commitments, before considering renewal options that generally are present, were $14,000 in 2016 and $8,000 in 2017 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The Company’s goodwill totaled $8.4 million at December 31, 2015 and 2014 . The Company determined that no impairment of its goodwill existed during the years ended December 31, 2015 and 2014 . Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value, which is determined through a two-step impairment test. Step 1 includes the determination of the carrying value of the Company’s single reporting unit, including the existing goodwill and intangible assets, and estimating the fair value of the reporting unit. Management determined the fair value of the reporting unit and compared it to its carrying amount. If the carrying amount of a reporting unit exceeds its fair value, a second step to the impairment test is required. The Company’s annual impairment analysis performed as of October 31, 2015 indicated that the Step 2 analysis was not necessary. At December 31, 2015 and 2014 , the Company’s core deposit intangible assets had a net carrying value of $153,000 and $204,000 , respectively. The total gross carrying amount of the core deposit intangible assets totaled $1.5 million at December 31, 2015 and 2014 and is reported net of accumulated amortization of $1.4 million and $1.3 million at December 31, 2015 and 2014 , respectively. Aggregate amortization expense for the years ended December 31, 2015 and 2014 was $51,000 and $70,000 , respectively. Estimated amortization expense related to the Company’s core deposit intangibles for each of the next five years is as follows: (Dollars in thousands) 2016 $ 41 2017 33 2018 26 2019 21 2020 18 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
DEPOSITS | DEPOSITS December 31, 2015 2014 (Dollars in thousands) Noninterest-bearing demand deposits $ 62,020 $ 53,030 Interest-bearing demand deposits 106,434 58,892 Money market 57,999 57,069 Savings deposits 65,747 62,330 Certificates of deposit of $250,000 or more 2,799 4,148 Other certificates and time deposits 95,960 105,299 Total deposits $ 390,959 $ 340,768 Time deposits of $100,000 or more totaled $43.6 million and $48.8 million , respectively, at December 31, 2015 and 2014 . Scheduled maturities of time deposits for the next five years were as follows at December 31, 2015 : (Dollars in thousands) 2016 $ 38,264 2017 31,266 2018 9,614 2019 11,771 2020 3,250 Thereafter 4,594 $ 98,759 |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
FEDERAL HOME LOAN BANK ADVANCES | FEDERAL HOME LOAN BANK ADVANCES The advance type, balances, and interest rate ranges for the dates indicated are as follows: December 31, 2015 Advance Type Balance Interest Rate Range Weighted Average Rate Maturity Date Range (Dollars in thousands) Fixed rate bullet $ 45,000 0.52% to 1.86% 1.00% January 2016 through April 2019 LIBOR adjustable 10,000 0.57% 0.57% July 2016 Total advances $ 55,000 December 31, 2014 Advance Type Balance Interest Rate Range Weighted Average Rate Maturity Date Range (Dollars in thousands) Fixed rate bullet $ 60,000 0.30% to 3.22% 1.04% January 2015 through April 2019 Variable rate 9,919 0.43% 0.43% January 2015 LIBOR adjustable 15,000 0.47% to 0.50% 0.49% September 2015 through July 2016 Total advances $ 84,919 The Bank was authorized to borrow up to $99.5 million from the FHLB at December 31, 2015 and up to $85.9 million at December 31, 2014 . At December 31, 2015 and 2014 , the Bank had indebtedness to the FHLB totaling $55.0 million and $84.9 million , respectively. The FHLB advances held by the Bank consisted of two different types as of December 31, 2015 and three different types as of December 31, 2014 , respectively. Fixed rate bullet advances carry a fixed interest rate throughout the life of the advance and are subject to a prepayment penalty if the advances are repaid prior to maturity. Variable rate advances carry a variable rate throughout the life of the advance. All of the variable rate advances held by the Bank at December 31, 2014 were short-term advances and may be prepaid at any time. London Interbank Offered Rate (“LIBOR”) adjustable advances carry adjustable interest rates which reset quarterly based on the 3-Month LIBOR in effect on the reset date plus a spread. These advances may be called by the FHLB on a quarterly basis. The required payments for FHLB advances over the next four years are as follows at December 31, 2015 : (Dollars in thousands) 2016 $ 30,000 2017 10,000 2018 10,000 2019 5,000 At December 31, 2015 and 2014 , in addition to FHLB stock, the Bank pledged mortgage, home equity, and commercial real estate loans totaling $100.6 million and $103.6 million , respectively, to the FHLB to secure its outstanding advances. At December 31, 2015 and 2014 , the Bank also pledged U.S. government sponsored agency securities totaling $39.4 million and $35.1 million , respectively, to the FHLB to secure its outstanding advances. |
Other Borrowings
Other Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
OTHER BORROWINGS | OTHER BORROWINGS During the years ended December 31, 2015 and 2014 , the Company had an accommodation from First Tennessee Bank National Association to borrow federal funds up to the amount of $15.0 million . This federal funds accommodation is not a confirmed line of credit or loan, and First Tennessee Bank National Association may cancel, in whole or in part, the accommodation at any time without cause or notice in its sole discretion. The Company did not have an outstanding balance on this accommodation at December 31, 2015 and 2014 . At December 31, 2015 and 2014 , the Company had an agreement with Zions First National Bank to borrow federal funds up to $9.0 million . This federal funds amount was established at the discretion of Zions First National Bank and may be terminated at any time in its sole discretion. The Company did not have an outstanding balance on this line at December 31, 2015 and 2014 . |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
SUBORDINATED DEBENTURES | SUBORDINATED DEBENTURES In June 2003, City Savings Statutory Trust I (the “Trust”), a trust formed by City Savings Financial Corporation, closed a pooled private offering of 5,000 trust preferred securities with a liquidation amount of $1,000 per security. City Savings Financial Corporation issued $5.2 million of subordinated debentures to the Trust in exchange for ownership of all of the common security of the Trust and the proceeds of the preferred securities sold by the Trust. On October 12, 2007, the Company purchased the ownership of the common securities of the Trust as a result of its acquisition of City Savings Financial Corporation. The Company is not considered the primary beneficiary of this Trust (variable interest entity), therefore the Trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures are shown as a liability. The Company’s investment in the common stock of the Trust was $155,000 and is included in other assets in the December 31, 2015 and 2014 consolidated balance sheets. The Company may redeem the subordinated debentures, in whole or in part, in a principal amount with integral multiples of $1,000 , on or after June 26, 2008 at 100% of the principal amount, plus accrued and unpaid interest. The subordinated debentures mature on June 26, 2033 . The Company has the right to defer interest payments by extending the interest payment period during the term of the subordinated debentures for up to 20 consecutive quarterly periods . The subordinated debentures are also redeemable in whole or in part from time to time, upon the occurrence of specific events defined within the Trust indenture. The subordinated debentures may be included in Tier I capital (with certain limitations applicable) under current regulatory guidelines and interpretations. The subordinated debentures have a variable rate of interest equal to the 3-Month LIBOR plus 3.10% , which was 3.70% at December 31, 2015 and 3.35% at December 31, 2014 . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS 401(k) Plan : The Bank maintains a defined contribution 401(k) plan (“401(k) Plan”) for all employees. Employees must be 21 years of age to participate in the 401(k) Plan. Employees are eligible to enter the 401(k) Plan upon the first day of the quarter following employment and are eligible for matching employer contributions upon the first day of the quarter following one year of employment. Voluntary participant contributions may be made in the range of 1% to 75% of employee compensation. The Company will make matching employer contributions equal to 25% of the first 6% of the participant’s voluntary contributions. Employee contributions are 100% vested. Employer matching contributions are vested over five years . The Company made matching contributions totaling $72,000 and $63,000 , respectively, for the years ended December 31, 2015 and 2014 . Supplemental Executive Retirement Plan : Effective August 1, 2002, a supplemental retirement plan (“SERP”) was established to cover selected officers. The Bank records an expense equal to the projected present value of payments due at retirement based on the projected remaining years of service. The obligation under the SERP was $2.4 million and $2.3 million for the years ended December 31, 2015 and 2014 , respectively, and is included in other liabilities in the consolidated balance sheets. The expense attributable to the SERP, included in salaries and employee benefits in the consolidated statements of income, was $185,000 and $231,000 , respectively, for the years ended December 31, 2015 and 2014 . Split-Dollar Life Insurance Plans : Effective January 1, 2003, life insurance plans were provided for certain officers on a split-dollar basis. The officer’s designated beneficiary(s) is entitled to a percentage of the death proceeds from the split-dollar policies. The Bank is entitled to the remainder of the death proceeds less any loans on the policies and unpaid interest or cash withdrawals previously incurred by the Bank. The cash surrender value of these life insurance policies related to the Bank’s SERP totaled $15.0 million and $14.6 million , respectively, at December 31, 2015 and 2014 . The Bank is the owner of the split-dollar policies. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EMPLOYEE STOCK OWNERSHIP PLAN | EMPLOYEE STOCK OWNERSHIP PLAN During 2007, the Bank implemented an Employee Stock Ownership Plan (“ESOP”), which covers substantially all of its employees. In connection with the second step stock offering on October 4, 2012, the Company issued 270,768 shares of common stock which were added to 59,650 allocated converted shares and 178,949 unallocated converted shares from the original ESOP for a total of 509,367 shares. The 449,717 unallocated shares of common stock are eligible for allocation under the ESOP in exchange for a twenty -year note in the amount of $3.6 million . The $3.6 million for the ESOP share purchase was borrowed from the Company with the ESOP shares being pledged as collateral for the loan. The loan is secured by shares purchased with the loan proceeds and will be repaid by the ESOP with funds from the Bank’s contributions to the ESOP and earnings on ESOP assets. The Company is able to make discretionary contributions to the ESOP, as well as pay dividends on unallocated shares to the ESOP, and the ESOP uses funds it receives to repay the loan. When loan payments are made, ESOP shares are allocated to participants based on relative compensation and ESOP expense is recorded. Dividends on allocated shares increase participant accounts. Participants receive the shares at the end of employment. During the year ended December 31, 2015 and 2014 , 7,968 and 7,927 allocated shares, respectively, were distributed to former participants. Contributions to the ESOP during the years ended December 31, 2015 and 2014 were $166,000 and $164,000 , respectively. ESOP related expenses totaled $310,000 and $251,000 , respectively, during the years ended December 31, 2015 and 2014 . Shares held by the ESOP were as follows at the dates indicated: December 31, 2015 2014 (Dollars in thousands) Allocated to participants 119,036 104,518 Unearned 359,773 382,259 Total ESOP shares 478,809 486,777 Fair value of unearned shares $ 5,469 $ 4,774 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense (benefit) was as follows: Year Ended December 31, 2015 2014 (Dollars in thousands) Current expense (benefit): Federal $ 906 $ 542 State 248 54 1,154 596 Deferred expense (benefit): Federal 57 124 State (82 ) 308 (25 ) 432 Change in valuation allowance related to realization of net state deferred tax asset (68 ) (335 ) Total $ 1,061 $ 693 The net deferred tax assets at December 31, 2015 and 2014 were as follows: December 31, 2015 2014 (Dollars in thousands) Deferred tax assets: Deferred officer compensation $ 995 $ 963 Bad debt expense 1,419 1,413 Indiana net operating loss carryforwards 326 271 Tax credit carryforwards 40 98 Write downs of other real estate owned 160 260 Capital loss carryforwards 128 135 Nonaccrual loan interest 86 217 Net unrealized losses on interest rate swaps 429 392 Other 147 91 3,730 3,840 Deferred tax liabilities: Mortgage servicing rights (136 ) (144 ) FHLB stock dividends (129 ) (133 ) Deferred loan fees (124 ) (114 ) Prepaid expenses (560 ) (554 ) Depreciation (281 ) (339 ) Net unrealized gains on securities available-for-sale (590 ) (661 ) Amortization of other intangible assets (61 ) (74 ) Real estate investment trust dividends (140 ) (143 ) (2,021 ) (2,162 ) Valuation allowance (682 ) (614 ) $ 1,027 $ 1,064 The valuation allowance has been established against the portion of the Company’s net state tax deferred tax asset that management feels is not realizable as of December 31, 2015 and 2014 . The Company has an Indiana net operating loss carryforward of approximately $3.3 million at December 31, 2015 which will expire in 2028 , if not used. The Company also has Indiana enterprise zone credit carryforwards of approximately $40,000 at December 31, 2015 which will expire in 2016 through 2017 , if not used. Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 34% to income before income taxes as a result of the following: Year Ended December 31, 2015 2014 (Dollars in thousands) Expected income tax expense at: Federal tax rate $ 1,917 $ 1,735 State tax expense, net of federal benefit 65 17 Increase (decrease) resulting from: Effect of tax exempt income (net) (686 ) (723 ) Other tax exempt income (346 ) (316 ) Other, net 111 (20 ) Total income tax expense $ 1,061 $ 693 Effective tax rate 18.8 % 13.6 % Unrecognized Tax Benefits The Company has no unrecognized tax positions at December 31, 2015 or 2014 not already addressed by the deferred tax asset valuation allowance. The Company does not expect a significant increase or decrease in unrecognized tax benefits over the next twelve months. Federal income tax laws provided savings banks with additional bad debt deductions through 1995 which total $2.7 million for the Company. Accounting standards do not require a deferred tax liability to be recorded on this amount, which liability would otherwise total $904,000 at December 31, 2015 and 2014 . If the Company were liquidated or otherwise ceases to be a bank or if tax laws change, the $904,000 would be recorded as expense. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With a few exceptions, the Company is no longer subject to U.S. federal, state, and local income tax examinations by tax authorities for years before 2012. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | RELATED-PARTY TRANSACTIONS Loans to principal officers, directors, and their affiliates were as follows: December 31, 2015 2014 (Dollars in thousands) Beginning balance $ 444 $ 488 New loans 177 45 Repayments (259 ) (89 ) Ending balance $ 362 $ 444 Deposits from principal officers, directors, and their affiliates at December 31, 2015 and 2014 totaled $1.9 million and $1.7 million , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION During the month of September 2011, the Company implemented the 2011 Equity Incentive Plan (the “2011 Plan”) which was approved by shareholders on May 10, 2011. The 2011 Plan provided for the issuance of stock options or restricted share awards to employees and directors. Total shares authorized for issuance under the 2011 Plan were 417,543 . On May 13, 2014, the Company’s shareholders approved the 2014 Equity Incentive Plan (the “2014 Plan”) which provides for the issuance of stock options or restricted share awards to employees and directors and effectively terminated the 2011 Plan. The total shares authorized for issuance under the 2014 Plan are 473,845 shares of the Company’s common stock plus, at the date the 2014 Plan was approved, 14,471 shares of stock that were rolled over from the terminated 2011 Plan and added to the shares available for awards under the 2014 Plan. In addition, any stock awards that had been granted under the 2011 Plan and subsequently forfeited were also included for issuance under the 2014 Plan. On October 14, 2014, the Company implemented the 2014 Plan and granted 332,250 stock options and 126,800 restricted share awards to employees and directors. On March 6, 2015, the Company also awarded 3,500 stock options under the 2014 Plan to an employee. Compensation costs related to these grants will be amortized over a five year period on a straight-line basis. The options and restricted share awards vest 20% annually. Total compensation expense related to the Plans was $696,000 and $334,000 , respectively, for the years ended December 31, 2015 and 2014 . Stock-Based Compensation Compensation expense is recognized for stock options and restricted stock awards issued to employees or directors based on their grant date fair value. A Black-Scholes model is utilized to estimate the fair value of stock options. The market price of the Company’s common stock at the grant date is used for restricted stock awards. Compensation expense is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation expense is recognized on a straight-line basis over the requisite service period for the entire award. Stock Options The 2011 Plan permitted stock option grants to employees or directors for up to 298,245 shares of common stock. The 2014 Plan permits stock option grants to employees or directors for up to 352,544 shares of common stock. Option awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant, vesting periods of five years, and a 10 -year contractual term. Options granted generally vest 20% annually. The fair value of each option award is estimated on the grant date using a closed form option valuation (Black-Scholes) model. Expected volatilities are based on historical volatilities of the Company’s common stock. The expected term of options granted represents the period of time they are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the options is based on the U.S. Treasury yield curve in effect at the time of the grant. The table below presents information related to stock options granted for the years ended December 31, 2015 and 2014 . Year Ended December 31, 2015 2014 Options granted: Number of options 3,500 332,250 Risk-free interest rate 2.04 % 1.88 % Expected term 7.5 years 7.5 years Expected stock price volatility 19.24 % 19.03 % Dividend yield 1.17 % 1.39 % Weighted average fair value of options granted $ 2.94 $ 2.28 A summary of stock option activity for the year ended December 31, 2015 was as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (Dollars in thousands) Outstanding at beginning of year 598,972 $ 9.30 8.4 years $ 1,911 Granted 3,500 13.71 9.2 years Exercised (15,308 ) 6.68 Forfeited or expired (5,338 ) 9.10 Outstanding at end of year 581,826 9.40 7.5 years 3,377 Exercisable at end of year 256,262 7.77 6.5 years 1,903 During the year ended December 31, 2015 , 15,308 options were exercised which had an intrinsic value of $113,000 The Company received $103,000 in cash and realized $36,000 in tax benefits related to the exercise of these options. There were 4,472 options exercised during the year ended December 31, 2014 which had an intrinsic value of $21,000 . The Company received $28,000 in cash and realized $10,000 in tax benefits related to the exercise of these options. At December 31, 2015 , there was $647,000 of total unrecognized compensation expense related to nonvested stock options granted. The expense is expected to be recognized over a weighted-average period of 3.5 years . The 2014 Plan had 22,132 shares available for future grant at December 31, 2015 . Restricted Share Awards The 2011 Plan provided for the issuance of up to 119,298 of restricted shares to directors and employees. The 2014 Plan provides for the issuance of up to 135,772 of restricted shares to directors and employees. Compensation expense is recognized over the vesting period of the awards based on the grant date fair value of the Company’s common stock as determined by the listing price on the respective date. Shares vest 20% annually over five years. The 2014 Plan had 9,870 shares available for future grant at December 31, 2015 . A summary of changes in the Company’s nonvested restricted shares for the year ended December 31, 2015 follows: Shares Weighted-Average Grant-Date Fair Value Nonvested at beginning of year 175,164 $ 10.14 Granted — — Vested (49,114 ) 9.09 Forfeited (898 ) 6.44 Nonvested at end of year 125,152 10.58 As of December 31, 2015 , there was $1.2 million of total unrecognized compensation expense related to nonvested shares granted under the Plans. The expense is expected to be recognized over a weighted-average period of 3.5 years . At December 31, 2015 , the nonvested shares had an intrinsic value of $578,000 . |
Regulatory Capital Matters
Regulatory Capital Matters | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
REGULATORY CAPITAL MATTERS | REGULATORY CAPITAL MATTERS Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Management believes as of December 31, 2015 , the Bank met all capital adequacy requirements to which it is subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If only adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At December 31, 2015 and 2014 , the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. Actual and required Bank capital amounts and ratios are presented below at the dates indicated. Actual Required For Capital Adequacy Purposes Minimum Required To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2015 (1) Total Capital to risk weighted assets Bank $ 71,217 18.0 % $ 31,700 8.0 % $ 39,625 10.0 % Tier 1 (Core) Capital to risk weighted assets Bank 67,583 17.1 23,775 6.0 31,700 8.0 Tier 1 Common Equity Capital to risk weighted assets Bank 67,583 17.1 17,831 4.5 25,757 6.5 Tier 1 (Core) Capital to average assets Bank 67,583 13.3 20,317 4.0 25,397 5.0 December 31, 2014 (1) Total Capital to risk weighted assets Bank $ 67,729 19.2 % $ 28,277 8.0 % $ 35,346 10.0 % Tier 1 (Core) Capital to risk weighted assets Bank 64,134 18.1 14,138 4.0 21,207 6.0 Tier 1 (Core) Capital to average assets Bank 64,134 13.0 19,754 4.0 24,692 5.0 (1) Basel III Capital Rules, which became effective for the Bank on January 1, 2015, revised the risk-based capital requirements and introduced a new capital measure, Tier 1 common capital to risk weighted assets. As a result, ratios as of December 31, 2015 are computed using the new rules and ratios as of December 31, 2014 are computed using the regulatory guidance applicable at that time. In July 2013, the federal banking agencies published final rules (“Basel III Capital Rules”) that revise the regulatory capital rules to incorporate certain revisions by the Basel Committee on Banking Supervision. The phase-in period for the final rules began for the Bank on January 1, 2015, with full compliance with the final rules entire requirement phased in on January 1, 2019. The Basel III Capital Rules (i) introduced a new capital measure called “Common Equity Tier 1” (“CET1”), (ii) specified that Tier 1 capital consists of CET1 and “Additional Tier 1 Capital” instruments meeting specified requirements, (iii) narrowly defined CET1 by requiring the most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital, and (iv) expanded the scope of the deductions/adjustments compared to existing regulations. When fully-phased in on January 1, 2019, the Basel III Capital Rules will require the Bank to maintain the following: • A minimum ratio of CET1 to risk weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (resulting in a minimum ratio of CET1 to risk weighted assets of at least 7% upon full implementation). • A minimum ratio of Tier 1 capital to risk weighted assets of at least 6.0%, plus the capital conservation buffer (resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation). • A minimum ratio of total capital (Tier 1 capital plus Tier 2 capital) to risk weighted assets of at least 8.0%, plus the capital conservation buffer (resulting in a minimum total capital ratio of 10.5% upon full implementation). • A minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average assets. The Basel III Capital Rules also provide for a number of deductions from and adjustments to CET1 to be phased-in over a four-year period through January 1, 2019 (beginning at 40% on January 1, 2015 and an additional 20% per year thereafter). Examples of these include the requirement that mortgage servicing rights, deferred tax assets depending on future taxable income, and significant investments in non-consolidated financial entities be deducted from CET1 to the extent that any one such category exceeds 10% of CET1 or all such categories in the aggregate exceed 15% of CET1. Under current capital standards, the effects of accumulated other comprehensive income items included in capital are excluded for the purposes of determining regulatory capital ratios. Under the Basel III Capital Rules, the effects of certain accumulated other comprehensive items are not excluded; however, the Bank made a one-time permanent election to continue to exclude these items. Finally, the Basel III Capital Rules prescribe a standardized approach for risk weightings that expand the risk weighting categories from the previous four Basel I-derived categories (0%, 20%, 50%, and 100%) to a much larger and more risk-sensitive number of categories depending on the nature of the assets, generally ranging from 0% for U.S. government and agency securities to 600% for certain equity exposures, resulting in higher risk weights for a variety of asset categories. Management of the Bank believes they would meet all capital adequacy requirements under the Basel III Capital Rules on a fully-phased in basis as if such requirement were currently in effect as of December 31, 2015. The Qualified Thrift Lender test requires at least 65% of assets be maintained in housing-related finance and other specified areas. If this test is not met, limits are placed on growth, branching, new investments, FHLB advances, and dividends, or the Bank must convert to a commercial bank charter. Management believes that this test is met at December 31, 2015 . Dividend Restrictions – The Parent Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s net profits combined with the retained net profits of the preceding two years, subject to the capital requirements described above. At December 31, 2015 , the Bank could, without prior approval, declare dividends of approximately $2.2 million million to the Parent Company. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. The counterparties to the Company’s derivatives are exposed to credit risk whenever a derivative is in a liability position. As a result, the Company has collateralized these liabilities with security collateral held in safekeeping by Bank of New York and PNC Bank. At December 31, 2015 and 2014 , the Company had securities with fair market values of $3.7 million and $2.6 million , respectively, posted as collateral for these derivatives. Interest Rate Swaps Designated as Cash Flow Hedges : Interest rate swaps with notional amounts of $40.0 million and $45.0 million as of December 31, 2015 and 2014 , respectively, were designated as cash flow hedges of certain FHLB advances and were determined to be fully effective during the years then ended. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swaps is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The hedge would no longer be considered effective if a portion of the hedge becomes ineffective, the item hedged is no longer in existence, or the Company discontinues hedge accounting. The Company expects the hedges to remain fully effective during the remaining terms of the swaps. The Company does not expect any amounts to be reclassified from other comprehensive income (loss) over the next 12 months. Information related to the interest-rate swaps designated as cash flow hedges were as follows for the periods presented: December 31, 2015 2014 (Dollars in thousands) FHLB Advance: Notional amount $ — $ 5,000 Unrealized losses — (109 ) Fixed interest rate payable — % 3.54 % Variable interest rate receivable (Three month LIBOR plus 0.22%) — 0.47 Maturity date September 20, 2015 FHLB Advance: Notional amount $ 10,000 $ 10,000 Unrealized losses (154 ) (434 ) Fixed interest rate payable 3.69 % 3.69 % Variable interest rate receivable (Three month LIBOR plus 0.25%) 0.57 0.48 Maturity date July 19, 2016 FHLB Advance: Notional amount $ 10,000 $ 10,000 Unrealized losses (276 ) (186 ) Fixed interest rate payable 2.09 % 2.09 % Variable interest rate receivable (One month LIBOR) 0.35 — Maturity date March 15, 2020 FHLB Advance: Notional amount $ 10,000 $ 10,000 Unrealized losses (339 ) (197 ) Fixed interest rate payable 2.23 % 2.23 % Variable interest rate receivable (One month LIBOR) 0.35 — Maturity date June 15, 2020 December 31, 2015 2014 (Dollars in thousands) Forward Starting: FHLB advance: Notional amount $ 10,000 $ 10,000 Unrealized losses (496 ) (230 ) Fixed interest rate payable 2.62 % 2.62 % Variable interest rate receivable (One month LIBOR) — — Start date March 15, 2016 Maturity date March 15, 2021 Interest expense recorded on these swap transactions totaled $696,000 and $704,000 , respectively, for the years ended December 31, 2015 and 2014 and was reported as a component of interest expense on subordinated debentures, deposits, and FHLB advances. The following table presents the net gains (losses) recorded in accumulated other comprehensive income (loss) and the consolidated statements of income relating to the cash flow derivative instruments for the periods presented: Year Ended December 31, 2015 2014 (Dollars in thousands) Interest rate contracts: Net amount of gain (loss): Recognized in OCI (Effective Portion) $ (73 ) $ 17 Reclassified from OCI to interest income — — Recognized in other noninterest income (Ineffective Portion) — — The following table reflects the cash flow hedges included in the consolidated balance sheets as of the dates indicated: December 31, 2015 2014 Notional Amount Fair Value Notional Fair Included in other liabilities: Interest rate swaps related to FHLB advances (40,000 ) (1,265 ) (45,000 ) (1,156 ) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) A summary of the changes in accumulated other comprehensive income (loss) by component for the dates indicated is as follows: Year Ended December 31, 2015 2014 Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Available- for-Sale Securities Total Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Available- for-Sale Securities Total (Dollars in thousands) Beginning balance $ (763 ) $ 1,285 $ 522 $ (780 ) $ (1,058 ) $ (1,838 ) Other comprehensive income (loss) before reclassification (73 ) (74 ) (147 ) 17 2,412 2,429 Amounts reclassified from accumulated other comprehensive income (loss) — (65 ) (65 ) — (69 ) (69 ) Net current period other comprehensive income (loss) (73 ) (139 ) (212 ) 17 2,343 2,360 Ending balance $ (836 ) $ 1,146 $ 310 $ (763 ) $ 1,285 $ 522 A summary of the reclassifications out of accumulated other comprehensive income (loss) for the date indicated is as follows: Year ended December 31, 2015 2014 Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (Dollars in thousands) Unrealized gains and losses on available-for-sale securities: Net gains on securities $ 99 $ 105 Income tax expense (34 ) (36 ) Net of tax $ 65 $ 69 |
Offsetting Financial Assets and
Offsetting Financial Assets and Liabilities Offsetting Financial Assets and Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Offsetting [Abstract] | |
OFFSETTING FINANCIAL ASSETS AND LIABILITIES | OFFSETTING FINANCIAL ASSETS AND LIABILITIES The following tables summarize gross and net information about financial instruments and derivative instruments that are offset in the Company’s statement of consolidated balance sheets or that are subject to an enforceable master netting arrangement at December 31, 2015 and 2014 . December 31, 2015 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount (Dollars in thousands) Derivatives $ 1,265 $ — $ 1,265 $ (3,696 ) $ — $ (2,431 ) December 31, 2014 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount (Dollars in thousands) Derivatives $ 1,156 $ — $ 1,156 $ (2,606 ) $ — $ (1,450 ) Repurchase agreements 755 — 755 (755 ) — — Total $ 1,911 $ — $ 1,911 $ (3,361 ) $ — $ (1,450 ) If an event of default occurs causing an early termination of an interest rate swap derivative, an early termination amount payable to one party by the other party may be reduced by set-off against any other amount payable by the one party to the other party. If a default in performance of any obligation of a repurchase agreement occurs, each party will set-off property held in respect of transactions against obligations owing in respect of any other transactions. |
Loan Commitments and Other Rela
Loan Commitments and Other Related Activities | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES | COMMITMENTS AND CONTINGENCIES Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. The contractual amounts of financial instruments with off-balance-sheet risk were as follows at the dates indicated: December 31, 2015 2014 Fixed Rate Variable Rate Fixed Rate Variable Rate (Dollars in thousands) Commitments to make loans $ 1,491 $ 969 $ 5,662 $ 21,103 Unused lines of credit 7,237 25,447 6,191 26,959 Standby letters of credit 38 964 33 950 Total $ 8,766 $ 27,380 $ 11,886 $ 49,012 Commitments to make loans are generally made for periods of 60 days or less . The fixed rate loan commitments have interest rates from 4.00% to 5.50% and maturities of up to 60 months at December 31, 2015 . The fixed rate loan commitments have interest rates from 3.95% to 5.25% and a maturity of up to 60 months at December 31, 2014 . The Company has entered into employment agreements with certain officers that provide for the continuation of salary and certain benefits for a specified period of time under certain conditions. Under the terms of the agreements, these payments could occur in the event of a change in control of the Company, as defined, along with other specific conditions. |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed financial information of LaPorte Bancorp, Inc. at December 31, 2015 and 2014 and for the years ended December 31, 2015 and 2014 was as follows: CONDENSED BALANCE SHEETS December 31, 2015 2014 (Dollars in thousands) ASSETS Cash and cash equivalents $ 3,213 $ 4,954 Interest-earning time deposits in other financial institutions 1,729 — Securities available-for-sale 3,493 4,342 ESOP loan receivable 2,992 3,133 Investment in banking subsidiary 76,444 73,376 Investment in captive insurance subsidiary 2,256 1,177 Investment in statutory trust 155 155 Accrued interest receivable and other assets 439 411 Total assets $ 90,721 $ 87,548 LIABILITIES AND SHAREHOLDERS’ EQUITY Subordinated debentures $ 5,155 $ 5,155 Accrued interest payable and other liabilities 18 5 Shareholders’ equity 85,548 82,388 Total liabilities and shareholders’ equity $ 90,721 $ 87,548 CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Year Ended December 31, 2015 2014 (Dollars in thousands) Dividends from banking subsidiary $ 1,500 $ 4,000 Interest income 170 198 Interest expense (172 ) (195 ) Other income 3 — Other expense (451 ) (274 ) Income before income tax and undistributed subsidiary income 1,050 3,729 Income tax benefit (153 ) (92 ) Equity in undistributed income or net income of subsidiaries 3,375 589 Net income 4,578 4,410 Other comprehensive income (loss) (212 ) 2,360 Net income and comprehensive income (loss) $ 4,366 $ 6,770 CONDENSED STATEMENTS OF CASH FLOWS Year Ended December 31, 2015 2014 (Dollars in thousands) Cash flows from operating activities: Net income $ 4,578 $ 4,410 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed income or net income of subsidiaries (3,375 ) (589 ) Change in other assets 70 806 Change in other liabilities (96 ) (6 ) Net cash provided by operating activities 1,177 4,621 Cash flows from investing activities: Net change in ESOP loan receivable 141 137 Net change in interest-earning time deposits at other financial institutions (1,729 ) 2,232 Net change in securities available-for-sale 882 524 Net cash (utilized for) provided by investing activities (706 ) 2,893 Cash flows from financing activities: Stock option exercises 103 28 Repurchase of common stock (1,419 ) (4,321 ) Dividends paid on common stock (896 ) (923 ) Net cash utilized for financing activities (2,212 ) (5,216 ) Net change in cash and cash equivalents (1,741 ) 2,298 Beginning cash and cash equivalents 4,954 2,656 Ending cash and cash equivalents $ 3,213 $ 4,954 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The factors used in the earnings per common share computation follow: Year Ended December 31, 2015 2014 (Dollars in thousands, except per share data) Basic: Net income $ 4,578 $ 4,410 Weighted average common shares outstanding 5,596,165 5,767,168 Less: Average unallocated ESOP shares (371,017 ) (393,502 ) Average shares 5,225,148 5,373,666 Basic earnings per common share $ 0.88 $ 0.82 Diluted: Net income $ 4,578 $ 4,410 Weighted average common shares outstanding for basic earnings per common share 5,225,148 5,373,666 Add: Dilutive effects of assumed exercises of stock options 122,764 91,890 Average shares and dilutive potential common shares 5,347,912 5,465,556 Diluted earnings per common share $ 0.86 $ 0.81 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) Interest Income Net Net Income Basic Diluted Earnings Per Share (Dollars in thousands, except per share data) December 31, 2015 First quarter $ 4,481 $ 3,876 $ 952 $ 0.18 $ 0.18 Second quarter 4,736 4,056 1,324 0.25 0.25 Third quarter 4,604 3,904 1,071 0.21 0.20 Fourth quarter 4,904 4,220 1,231 0.24 0.23 December 31, 2014 First quarter $ 4,277 $ 3,482 $ 850 $ 0.15 $ 0.15 Second quarter 4,505 3,695 1,214 0.23 0.22 Third quarter 4,644 3,861 1,341 0.25 0.25 Fourth quarter 4,499 3,822 1,005 0.19 0.19 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of Operations and Principles of Consolidation | Nature of Operations and Principles of Consolidation : The consolidated financial statements include the accounts of LaPorte Bancorp, Inc., a Maryland corporation (the “Bancorp”), its wholly owned subsidiaries, LSB Risk Management, Inc., The LaPorte Savings Bank (the “Bank”), the Bank’s wholly owned subsidiary, LSB Investments Inc. (“LSB Inc.”) and LSB Inc.’s wholly-owned subsidiary, LSB Real Estate, Inc., (“LSB REIT”), together referred to as “the Company.” The Bancorp was formed in June 2012. LSB Risk Management, Inc. was formed on December 27, 2013 as a captive insurance company and is incorporated in Nevada. LSB Inc. was formed on October 1, 2011 to manage a portion of the Bank’s investment portfolio and is incorporated in Nevada. LSB REIT, a real estate investment trust, was formed on January 1, 2013 to invest in assets secured by residential or commercial real estate properties originated by the Bank and is incorporated in Maryland. Intercompany transactions and balances are eliminated in consolidation. The Company provides financial services through its offices in LaPorte and Porter counties in Indiana. The Company also provides residential lending through its loan production office in St. Joseph, Michigan. Its primary deposit products are checking, savings, and term certificate accounts. Its primary lending products are residential mortgage, commercial, and installment loans. The Company also provides lines of credit to mortgage companies. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from the cash flows from operations of the businesses. There are no significant concentrations of loans to any one industry or customer. However, the customers’ ability to repay their loans is dependent on the real estate and general economic conditions in the area. |
Use of Estimates | Use of Estimates : To prepare financial statements in conformity with United States generally accepted accounting principles management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The allowance for loan losses, mortgage servicing rights, consideration of other than temporary declines in fair values of securities, the fair values of securities and other financial instruments, consideration of impairment of goodwill and other intangible assets, and the need for a deferred tax asset valuation allowance are particularly subject to change. |
Cash Flows | Cash Flows : Cash and cash equivalents includes cash, deposits with other financial institutions with original maturities under 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions, short term borrowings, and Federal Home Loan Bank advances. |
Interest-Earning Time Deposits in Other Financial Institutions | Interest-Earning Time Deposits in Other Financial Institutions : Interest-earning time deposits in other financial institutions mature between one and six years and are carried at cost. |
Securities | Securities : Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities are classified as available-for-sale when they might be sold before maturity. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income (loss), net of tax, as a separate component of shareholders’ equity. Trading securities are carried at fair value, with changes in unrealized holding gains and losses included in income. The Company currently holds all of its investment securities as available-for-sale. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities and collateralized mortgage obligations where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as an impairment through earnings. For securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized through earnings, and 2) OTTI related to other factors, which is recognized in other comprehensive income (loss). A credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. |
Loans Held for Sale | Loans Held for Sale : Residential mortgage loans originated and intended for sale in the secondary market are carried at fair value, as determined by outstanding commitments from investors. The fair value includes the servicing value of the loans. |
Loans | Loans : Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Interest income on residential mortgage and commercial loans is discontinued, and the loan is moved to nonaccrual status at the time the loan is 90 days delinquent, unless the loan is well-secured and in process of collection in accordance with the Company’s policy. Consumer loans are typically charged-off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still accruing include both individually classified impaired loans and smaller balance homogeneous loans that are collectively evaluated for impairment. The Company follows the same nonaccrual policy for troubled debt restructurings. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Troubled debt restructurings are returned to accrual status after at least six months of payments in accordance with the restructured agreements and when management believes future payments are reasonably assured. The recorded investment in loans is the loan balance plus unamortized net deferred loan costs less unamortized net deferred loan fees. The recorded investment in loans does not include accrued interest. |
Concentration of Credit Risk | Concentration of Credit Risk : The Company offers its loan products to its customers, which are primarily located within La Porte Porter, and Lake counties in Indiana and Berrien county in Michigan. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy in these areas. |
Mortgage Warehouse Loans | Mortgage Warehouse Loans : The Bank’s mortgage warehouse lending division has approved specific mortgage companies through which individual mortgage loans are originated by the mortgage company and funded by the Bank as a secured borrowing with the pledge of collateral under the Bank’s agreement with the mortgage company. The individual mortgage loans are held between the time of origination and subsequent repurchase by the mortgage company for sale of the loan into the secondary market. Each individual mortgage is assigned to the Bank until the loan is repurchased and sold to the secondary market by the mortgage company. Also, the Bank takes possession of each original note and forwards such note to the end investor once the mortgage company has sold the loan. The individual loans are typically sold by the mortgage company within 30 days of origination and are seldom held more than 90 days. Interest income is accrued by the Bank during this period, and fee income for each loan sold is collected when the sale has been completed. |
Purchased Loans | Purchased Loans : The Company purchased a group of loans through the acquisition of City Savings Financial Corporation on October 12, 2007. Purchased loans that showed evidence of credit deterioration since their origination are recorded at an allocated fair value, such that there is no carryover of the seller’s allowance for loan losses. After acquisition, incurred losses are recognized by an increase in the allowance for loan losses. Purchased loans are accounted for individually or aggregated into pools of loans based on common risk characteristics (e.g., credit score, loan type, and date of origination). The Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. |
Allowance for Loan Losses | Allowance for Loan Losses : The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of shortfall in relation to the principal and interest owed. All individually classified loans are evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated based on the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, it is measured at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over certain time periods. The Company utilizes a historical loss experience based on the actual loss history experienced over the last three years for all portfolio segments. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other change in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: Commercial, Residential Mortgage, Mortgage Warehouse, Residential Construction, Home Equity, and Consumer and Other. The risk characteristics of each of the identified portfolio segments are as follows: Commercial – Subject to decreases in demand for certain products or services; increasing production costs; increases in interest rates on adjustable rate loans may impact borrowers’ ability to continue payments; and adverse market conditions, which may cause a decrease in the value of underlying collateral. Residential Mortgage – Subject to adverse market conditions, which may cause a decrease in the value of underlying collateral; adverse employment conditions in the local economy, which may lead to an increase in default rates; and incremental rate increases on adjustable rate mortgages may impact borrowers’ ability to continue payments. Mortgage Warehouse – Subject to higher fraud risk than our other lending areas and decreased market values in real estate throughout the country. Residential Construction – Subject to adverse market conditions, which may cause a decrease in the value of underlying collateral; and adverse employment conditions in the local economy, which may lead to an increase in default rates. Home Equity – Subject to adverse employment conditions in the local economy, which may lead to an increase in default rates; and decreased market values due to adverse real estate market conditions. Consumer and Other – Subject to adverse employment conditions in the local economy, which may lead to an increase in default rates; and decreased value of the underlying collateral. The Bank is subject to periodic examinations by its federal and state regulatory examiners, and may be required by such regulators to recognize additions to the allowance for loan losses based on their assessment of credit information available to them at the time of their examinations. The process of assessing the allowance for loan losses is necessarily subjective. Further, and particularly in times of economic downturns, it is reasonably possible that future credit losses may exceed historical loss levels and may also exceed management’s current estimates of incurred credit losses inherent within the loan portfolio. As such, there can be no assurance that future charge-offs will not exceed management’s current estimate of what constitutes a reasonable allowance for loan losses. |
Mortgage Servicing Rights | Mortgage Servicing Rights: When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in net gains on mortgage banking activities. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds, and default rates and losses. The Company compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type, and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with loan servicing fees, net on the consolidated statements of income. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is reported on the consolidated statements of income as loan servicing fees, net, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal; or a fixed amount per loan and are recorded as income when earned. |
Transfers of Financial Assets | Transfers of Financial Assets : Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Other Real Estate Owned | Other Real Estate Owned : Assets acquired through loan foreclosure or in-substance foreclosure are initially recorded at fair value, less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, the Company records a write-down to fair value through expense. Operating costs after acquisition are expensed. |
Premises and Equipment | Premises and Equipment : Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives ranging from 5 to 30 years. Furniture, fixtures, and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 10 years. Leasehold improvements are amortized over the life of the lease. |
Federal Home Loan Bank (FHLB) Stock | Federal Home Loan Bank (FHLB) Stock: The Bank is a member of the FHLB system. Members are required to own a certain amount of FHLB stock based on the level of FHLB borrowings and other factors and may invest in additional amounts. FHLB stock is carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Bank Owned Life Insurance | Bank Owned Life Insurance : The Bank has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets : All goodwill on the Company’s balance sheet resulted from business combinations prior to January 1, 2009 and represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. The Company has selected October 31st as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Other intangible assets consist of core deposit intangible assets arising from a whole bank acquisition. They are initially measured at fair value and are then amortized on an accelerated method over their estimated useful life of 15 years. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments : Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Derivatives | Derivatives : At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income (loss) and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest income. As of December 31, 2015 , the Company had entered into four cash flow hedge transactions, including one which is a forward starting hedge to begin in March 2016. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income (loss) are amortized into earnings over the same periods which the hedged transactions will affect earnings. |
Mortgage Banking Derivatives | Mortgage Banking Derivatives : Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest rate on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in net gains on mortgage banking activities on the consolidated statements of income. |
Stock-Based Compensation | Stock-Based Compensation : Compensation cost is recognized for stock options and restricted stock awards issued to employees based on the fair value of these awards at the grant date. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the grant date is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. |
Income Taxes | Income Taxes : Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is 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% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Retirement Plans | Retirement Plans : Employee 401(k) plan expense is the amount of the Company’s matching contributions to eligible employees participating in the 401(k) plan. Split-dollar life insurance plan expense and supplemental retirement plan expense allocates the benefits over years of service. |
Employee Stock Ownership Plan | Employee Stock Ownership Plan : The cost of shares issued to the Employee Stock Ownership Plan (“ESOP”), but not yet allocated to participants, is shown as a reduction of shareholders’ equity. Compensation expense is based on the market price of shares as they are committed to be released to participant accounts. Dividends on allocated ESOP shares reduce retained earnings; dividends on unearned ESOP shares reduce debt and accrued interest. |
Earnings Per Common Share | Earnings Per Common Share : Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. ESOP shares are considered outstanding for this calculation unless unearned. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) : Comprehensive income (loss), net of tax, consists of net income and other comprehensive income (loss), net of tax. Other comprehensive income (loss), net of tax, includes net changes in unrealized gains and losses on securities available-for-sale, net of tax, reclassification adjustments, and unrealized gains and losses on cash flow hedges, which are also recognized as a separate component of shareholders’ equity. |
Loss Contingencies | Loss Contingencies : Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the consolidated financial statements. |
Restrictions on Cash | Restrictions on Cash and Due from Financial Institutions : The Bank is required to maintain reserve balances in cash or on deposit with the Federal Reserve Bank, based on a percentage of deposits. The total of those required reserve balances was approximately $5.2 million and $2.6 million at December 31, 2015 and 2014 , respectively. The increase in the required reserve balance at December 31, 2015 was primarily due to increased deposit balances during 2015 including balances held in interest bearing accounts for mortgage warehouse participants to be used for funding their portion of mortgage warehouse loans. The nature of the Company’s business requires that it maintain amounts with banks and federal funds sold which, at times, may exceed federally insured limits. Management monitors these correspondent relationships and the Company has not experienced any losses in such accounts. At December 31, 2015 , the Company’s cash accounts exceeded federally insured limits by approximately $13.8 million . Included in this amount are uninsured accounts of approximately $12.1 million at the Federal Reserve Bank of Chicago and Federal Home Loan Bank of Indianapolis. |
Dividend Restriction | Dividend Restriction : Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Bancorp or by the Bancorp to shareholders. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments : Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 5. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. |
Operating Segments | Operating Segments : While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. |
Reclassifications | Reclassifications : Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholders’ equity. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards : |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summarizes the amortized cost and fair value of the available-for-sale securities portfolio | : December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) U.S. federal agency obligations $ 9,442 $ 1 $ (71 ) $ 9,372 State and municipal 50,020 2,397 (17 ) 52,400 Mortgage-backed securities – residential 17,671 98 (73 ) 17,696 Government agency sponsored collateralized mortgage obligations 42,376 139 (679 ) 41,836 Corporate debt securities 1,000 — (61 ) 939 Total $ 120,509 $ 2,635 $ (901 ) $ 122,243 December 31, 2014 Amortized Costs Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) U.S. federal agency obligations $ 7,447 $ 14 $ (66 ) $ 7,395 State and municipal 54,298 2,638 (89 ) 56,847 Mortgage-backed securities – residential 27,391 185 (88 ) 27,488 Government agency sponsored collateralized mortgage obligations 63,140 290 (900 ) 62,530 Corporate debt securities 1,000 — (37 ) 963 Total $ 153,276 $ 3,127 $ (1,180 ) $ 155,223 |
Sales of securities available for sale | The proceeds from sales of securities available-for-sale were as follows: Year Ended December 31, 2015 2014 (Dollars in thousands) Proceeds $ 21,539 $ 26,133 Gross gains 166 203 Gross losses (67 ) (98 ) |
Amortized cost and fair value of debt securities by contractual maturity | December 31, 2015 Amortized Cost Fair Value (Dollars in thousands) Due in one year or less $ 641 $ 648 Due from one to five years 20,084 20,271 Due from five to ten years 28,438 29,636 Due after ten years 11,299 12,156 Subtotal 60,462 62,711 Mortgage-backed securities and government agency sponsored collateralized mortgage obligations 60,047 59,532 Total $ 120,509 $ 122,243 |
Fair value of securities with unrealized losses, aggregated by investment category and length of time | Securities with unrealized losses at December 31, 2015 and 2014 , aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are presented in the following tables: December 31, 2015 Continuing Unrealized Loss For Less Than 12 Months Continuing Unrealized Loss For 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (Dollars in thousands) U.S. federal agency obligations $ 8,371 $ (71 ) $ — $ — $ 8,371 $ (71 ) State and municipal 4,512 (14 ) 856 (3 ) 5,368 (17 ) Mortgage-backed securities – residential 9,259 (48 ) 809 (25 ) 10,068 (73 ) Government agency sponsored collateralized mortgage obligations 11,200 (136 ) 18,148 (543 ) 29,348 (679 ) Corporate debt securities — — 939 (61 ) 939 (61 ) Total temporarily impaired $ 33,342 $ (269 ) $ 20,752 $ (632 ) $ 54,094 $ (901 ) December 31, 2014 Continuing Unrealized Loss For Less Than 12 Months Continuing Unrealized Loss For 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (Dollars in thousands) U.S. federal agency obligations $ 2,792 $ (8 ) $ 2,942 $ (58 ) $ 5,734 $ (66 ) State and municipal 3,571 (11 ) 5,506 (78 ) 9,077 (89 ) Mortgage-backed securities – residential 13,261 (40 ) 3,073 (48 ) 16,334 (88 ) Government agency sponsored collateralized mortgage obligations 5,845 (34 ) 33,504 (866 ) 39,349 (900 ) Corporate debt securities 963 (37 ) — — 963 (37 ) Total temporarily impaired $ 26,432 $ (130 ) $ 45,025 $ (1,050 ) $ 71,457 $ (1,180 ) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Loans and allowances for loans losses | Loans were as follows for the dates indicated: December 31, 2015 2014 (Dollars in thousands) Commercial $ 154,830 $ 118,312 Residential mortgage 40,478 39,317 Mortgage warehouse 128,902 132,636 Residential construction 3,301 1,664 Home equity 13,990 13,195 Consumer and other 3,380 4,325 Subtotal 344,881 309,449 Less: Net deferred loan (fees) costs 305 277 Allowance for loan losses (3,634 ) (3,595 ) Loans, net $ 341,552 $ 306,131 |
Mortgage Warehouse Loan | The following table identifies the activity and related interest and fee income attributable to the mortgage warehouse division for the years ended December 31, 2015 and 2014 : For the Year Ended December 31, 2015 2014 (Dollars in thousands) Mortgage warehouse: Originations $ 3,633,087 $ 2,195,170 Sold loans 3,529,726 2,178,953 Interest income 4,954 4,555 Warehouse fees 1,133 695 Wire transfer fees 364 223 Loan servicing fees 109 — |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Allowance for loan losses by portfolio segment | The following tables present the activity in the allowance for loan losses by portfolio segment for the years ending December 31, 2015 and 2014 : Year Ended December 31, 2015 Commercial Residential Mortgage Mortgage Warehouse Residential Construction Home Equity Consumer and Other Unallocated Total (Dollars in thousands) Allowance for loan losses: Beginning balance $ 2,116 $ 676 $ 654 $ 4 $ 90 $ 55 $ — $ 3,595 Charge-offs (20 ) (78 ) — — (18 ) (122 ) — (238 ) Recoveries 1 — — — 1 20 — 22 Provision 343 (7 ) (194 ) — 20 93 — 255 Ending balance $ 2,440 $ 591 $ 460 $ 4 $ 93 $ 46 $ — $ 3,634 Year Ended December 31, 2014 Commercial Residential Mortgage Mortgage Warehouse Residential Construction Home Equity Consumer and Other Unallocated Total (Dollars in thousands) Allowance for loan losses: Beginning balance $ 2,725 $ 458 $ 508 $ — $ 111 $ 83 $ 20 $ 3,905 Charge-offs — (159 ) — — (12 ) (30 ) — (201 ) Recoveries — 21 — — 5 15 — 41 Provision (609 ) 356 146 4 (14 ) (13 ) (20 ) (150 ) Ending balance $ 2,116 $ 676 $ 654 $ 4 $ 90 $ 55 $ — $ 3,595 |
Allowance for loan losses and recorded investment in loans by portfolio segment and impairment method | The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2015 and 2014 : December 31, 2015 Commercial Residential Mortgage Mortgage Warehouse Residential Construction Home Equity Consumer and Other Unallocated Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 885 $ 43 $ — $ — $ 17 $ — $ — $ 945 Collectively evaluated for impairment 1,555 548 460 4 76 46 — 2,689 Acquired with deteriorated credit quality — — — — — — — — Total ending allowance $ 2,440 $ 591 $ 460 $ 4 $ 93 $ 46 $ — $ 3,634 Loans: Individually evaluated for impairment $ 2,920 $ 1,283 $ — $ — $ 97 $ — $ — $ 4,300 Collectively evaluated for impairment 151,910 39,089 128,902 3,301 13,893 3,380 — 340,475 Acquired with deteriorated credit quality — 106 — — — — — 106 Total ending loan balance $ 154,830 $ 40,478 $ 128,902 $ 3,301 $ 13,990 $ 3,380 $ — $ 344,881 December 31, 2014 Commercial Residential Mortgage Mortgage Warehouse Residential Construction Home Equity Consumer and Other Unallocated Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 764 $ 122 $ — $ — $ — $ — $ — $ 886 Collectively evaluated for impairment 1,352 554 654 4 90 55 — 2,709 Acquired with deteriorated credit quality — — — — — — — — Total ending allowance $ 2,116 $ 676 $ 654 $ 4 $ 90 $ 55 $ — $ 3,595 Loans: Individually evaluated for impairment $ 9,005 $ 2,206 $ — $ — $ 7 $ — $ — $ 11,218 Collectively evaluated for impairment 108,688 36,999 132,636 1,664 13,188 4,325 — 297,500 Acquired with deteriorated credit quality 619 112 — — — — — 731 Total ending loan balance $ 118,312 $ 39,317 $ 132,636 $ 1,664 $ 13,195 $ 4,325 $ — $ 309,449 |
Information related to impaired loans by class of loans | The following tables present information related to impaired loans by class of loans as of and for the years ended December 31, 2015 and 2014 : December 31, 2015 Year Ended December 31, 2015 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized (Dollars in thousands) With no related allowance recorded: Commercial: Commercial and other $ — $ — $ — $ 1 $ — $ — Real estate 1,436 1,366 — 1,556 103 6 Five or more family — — — 910 60 — Residential mortgage 1,054 988 — 997 16 — Home equity 81 80 — 58 4 — Subtotal 2,571 2,434 — 3,522 183 6 With an allowance recorded: Commercial: Real estate 1,214 1,214 624 1,368 9 — Construction 41 41 41 10 — — Land 431 299 220 1,362 — — Residential mortgage 355 295 43 583 11 — Home equity 17 17 17 18 — — Consumer and other — — — 51 — — Subtotal 2,058 1,866 945 3,392 20 — Total $ 4,629 $ 4,300 $ 945 $ 6,914 $ 203 $ 6 December 31, 2014 Year Ended December 31, 2014 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized (Dollars in thousands) With no related allowance recorded: Commercial: Real estate $ 2,962 $ 2,960 $ — $ 2,906 $ 175 $ — Five or more family 3,699 3,699 — 3,670 234 — Land 138 123 — 184 — 9 Residential mortgage 1,151 1,103 — 1,365 9 — Residential construction: Land — — — 13 — — Home equity 8 7 — 8 — — Subtotal 7,958 7,892 — 8,146 418 9 With an allowance recorded: Commercial: Real estate 830 769 281 806 — — Land 1,937 1,454 483 2,034 — — Residential mortgage 1,169 1,103 122 570 9 — Home equity — — — 20 — — Subtotal 3,936 3,326 886 3,430 9 — Total $ 11,894 $ 11,218 $ 886 $ 11,576 $ 427 $ 9 |
Investment in nonaccrual loans | The following table presents the recorded investment in nonaccrual loans by class of loans as of December 31, 2015 and 2014 . The Bank had no loans greater than 90 days past due that were still accruing as of December 31, 2015 and 2014 . December 31, 2015 2014 (Dollars in thousands) Nonaccrual loans: Commercial: Commercial and other $ — $ 27 Real estate 1,396 879 Construction 41 — Land 299 1,577 Residential mortgage 590 1,933 Home equity 23 7 Total $ 2,349 $ 4,423 |
Aging of the recorded investment in past due loans | The following tables present the aging of the recorded investment in past due loans as of December 31, 2015 and 2014 by class of loans: December 31, 2015 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Loans Not Past Due Total (Dollars in thousands) Commercial: Commercial and other $ — $ — $ — $ — $ 18,117 $ 18,117 Real estate 1,282 — 102 1,384 90,916 92,300 Five or more family 20 — — 20 22,672 22,692 Construction 41 — — 41 11,041 11,082 Land — — — — 10,639 10,639 Residential mortgage 176 — 495 671 39,807 40,478 Mortgage warehouse — — — — 128,902 128,902 Residential construction: Construction — — — — 2,423 2,423 Land — — — — 878 878 Home equity — — 8 8 13,982 13,990 Consumer and other — — — — 3,380 3,380 Total $ 1,519 $ — $ 605 $ 2,124 $ 342,757 $ 344,881 December 31, 2014 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Loans Not Past Due Total (Dollars in thousands) Commercial: Commercial and other $ — $ — $ 27 $ 27 $ 17,388 $ 17,415 Real estate 72 — 822 894 74,369 75,263 Five or more family — — — — 16,486 16,486 Construction — — — — 2,322 2,322 Land — — 1,216 1,216 5,610 6,826 Residential mortgage 454 203 920 1,577 37,740 39,317 Mortgage warehouse — — — — 132,636 132,636 Residential construction: Construction — — — — 1,472 1,472 Land — — — — 192 192 Home equity — 73 7 80 13,115 13,195 Consumer and other 19 — — 19 4,306 4,325 Total $ 545 $ 276 $ 2,992 $ 3,813 $ 305,636 $ 309,449 |
Loans by class modified as troubled debt restructurings | A loan modification is considered a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulty and the Company grants a concession it would not otherwise consider but for the borrower’s financial difficulties. The following table presents the Company’s TDRs as of the dates indicated: December 31, 2015 2014 (Dollars in thousands) TDRs: Performing in accordance with modified repayment terms $ 1,720 $ 5,873 Nonperforming — 762 Total $ 1,720 $ 6,635 Specific reserve $ — $ 23 |
Loans by class modified as troubled debt restructurings | The following tables present loans by class that were modified as troubled debt restructurings during the year ending December 31, 2015 and 2014 : Year Ended December 31, 2015 Year Ended December 31, 2014 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Commercial: Real estate 4 $ 1,213 $ 1,221 3 $ 2,106 $ 2,106 Five or more family — — — 2 3,507 3,750 Residential mortgage — — — 4 514 673 Home equity 1 73 78 — — — Total 5 $ 1,286 $ 1,299 9 $ 6,127 $ 6,529 |
Recent analysis performed for risk category of loans | As of December 31, 2015 and 2014 , and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: December 31, 2015 Pass Special Mention Substandard Doubtful (Dollars in thousands) Commercial: Commercial and other $ 17,807 $ 310 $ — $ — Real estate 86,548 3,075 2,677 — Five or more family 22,692 — — — Construction 11,041 — 41 — Land 10,258 82 299 — Residential mortgage 39,490 21 967 — Mortgage warehouse 128,902 — — — Residential construction: Construction 2,423 — — — Land 878 — — — Home equity 13,893 — 97 — Consumer and other 3,380 — — — Total $ 337,312 $ 3,488 $ 4,081 $ — December 31, 2014 Pass Special Mention Substandard Doubtful (Dollars in thousands) Commercial: Commercial and other $ 17,397 $ — $ 18 $ — Real estate 67,597 1,663 5,983 20 Five or more family 12,787 — 3,699 — Construction 2,322 — — — Land 5,147 102 1,577 — Residential mortgage 36,827 120 2,370 — Mortgage warehouse 132,636 — — — Residential construction: Construction 1,472 — — — Land 192 — — — Home equity 13,113 73 9 — Consumer and other 4,325 — — — Total $ 293,815 $ 1,958 $ 13,656 $ 20 |
Outstanding balance and carrying amount of purchased loans | The Company purchased loans during 2007, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The outstanding balance and carrying amount of those loans is as follows at the dates indicated: December 31, 2015 2014 (Dollars in thousands) Commercial: Commercial and other $ — $ 27 Real estate — 621 Residential mortgage 106 112 Outstanding balance $ 106 $ 760 Carrying amount, net of allowance of $0 $ 106 $ 731 |
Accretable yield, or income expected to be collected on purchased loans | Accretable yield, or income expected to be collected, is as follows: Year Ended December 31, 2015 2014 (Dollars in thousands) Beginning balance $ 18 $ 73 Accretion of income (18 ) (55 ) Ending balance $ — $ 18 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | The tables below present the valuation methodology and unobservable inputs for impaired loans and other real estate owned at December 31, 2015 and 2014 . December 31, 2015 Valuation Methodology Unobservable Inputs Range of Inputs Average of Inputs Impaired loans: Commercial: Real Estate Appraisals Discounts for changes in market conditions 8% 8% Land Appraisals Discounts for changes in 10% 10% Residential mortgage Appraisals Discounts for changes in 0-20% 10% Other real estate owned, net: Residential mortgage Appraisals Discounts for changes in 30% 30% December 31, 2014 Valuation Methodology Unobservable Inputs Range of Inputs Average of Inputs Impaired loans: Commercial: Real Estate Appraisals Discount for changes in market conditions 20-90% 34% Land Appraisals Discount for changes in 10-20% 18% Residential mortgage Appraisals Discount for changes in 0-20% 7% Other real estate owned, net: Commercial: Real Estate Appraisals Discount for changes in 10% 10% Land Appraisals Discount for changes in 0-37% 18% Residential construction: Land Appraisals Discount for changes in 20% 20% |
Assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below: December 31, 2015 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial Assets: Investment securities available-for-sale: U.S. federal agency obligations $ 9,372 $ — $ 9,372 $ — State and municipal 52,400 — 52,400 — Mortgage-backed securities – residential 17,696 — 17,696 — Government agency sponsored collateralized mortgage obligations 41,836 — 41,836 — Corporate debt securities 939 — 939 — Total investment securities available-for-sale $ 122,243 $ — $ 122,243 $ — Loans held for sale $ 3,581 $ — $ 3,581 $ — Derivatives – residential mortgage loan commitments $ 39 $ — $ 39 $ — Financial Liabilities: Derivatives – interest rate swaps $ (1,265 ) $ — $ (1,265 ) $ — December 31, 2014 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial Assets: Investment securities available-for-sale: U.S. federal agency obligations $ 7,395 $ — $ 7,395 $ — State and municipal 56,847 — 56,847 — Mortgage-backed securities – residential 27,488 — 27,488 — Government agency sponsored collateralized mortgage obligations 62,530 — 62,530 — Corporate debt securities 963 — 963 — Total investment securities available-for-sale $ 155,223 $ — $ 155,223 $ — Loans held for sale $ 763 $ — $ 763 $ — Derivatives – residential mortgage loan commitments $ 53 $ — $ 53 $ — Financial Liabilities: Derivatives – interest rate swaps $ (1,156 ) $ — $ (1,156 ) $ — |
Assets measured at fair value on a non-recurring basis | Assets measured at fair value on a non-recurring basis are summarized below: December 31, 2015 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Impaired loans: Commercial: Real estate $ 590 $ — $ — $ 590 Land 79 — — 79 Residential mortgage 252 — — 252 Home equity — — — — Other real estate owned, net: Residential mortgage 36 — — 36 Mortgage servicing rights 145 — 145 — December 31, 2014 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Impaired loans: Commercial: Real estate $ 488 $ — $ — $ 488 Land 971 — — 971 Residential mortgage 981 — — 981 Other real estate owned, net: Commercial: Real estate 67 — — 67 Land 512 — — 512 Residential construction – land 45 — — 45 Mortgage servicing rights 173 — 173 — |
Difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding for loans held for sale | The aggregate fair value, contractual principal, and gain or loss for loans held for sale was as follows: December 31, 2015 2014 Aggregate Fair Value Gain (Loss) Contractual Principal Aggregate Fair Value Gain (Loss) Contractual Principal (Dollars in thousands) Loans held for sale $ 3,581 $ 110 $ 3,471 $ 763 $ 24 $ 739 |
Amount of gains and losses from fair value changes | The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value for the years ended December 31, 2015 and 2014 : Year Ended December 31, 2015 2014 (Dollars in thousands) Loans held for sale Other gains (losses) $ 45 $ (6 ) Interest income 41 30 Interest expense — — Total changes in fair values included in current period earnings $ 86 $ 24 |
Carrying amounts and estimated fair values of financial instruments | The carrying amounts and estimated fair values of financial instruments are as follows: December 31, 2015 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial assets: Cash and due from financial institutions $ 18,459 $ 18,459 $ — $ — Interest-earning time deposits in other financial institutions 13,599 — 13,641 — Securities available-for-sale 122,243 — 122,243 — Loans held for sale 3,581 — 3,581 — Loans, net 341,552 — — 344,488 Federal Home Loan Bank stock 4,029 — 4,029 — Accrued interest receivable 1,519 — 760 759 Financial liabilities: Deposits $ (390,959 ) $ — $ (390,914 ) $ — Federal Home Loan Bank advances (55,000 ) — (55,197 ) — Subordinated debentures (5,155 ) — — (5,139 ) Accrued interest payable (175 ) — (172 ) (3 ) Derivatives – interest rate swaps (1,265 ) — (1,265 ) — December 31, 2014 Carrying Quoted Prices in Significant Significant (Dollars in thousands) Financial assets: Cash and due from financial institutions $ 8,698 $ 8,698 $ — $ — Interest-earning time deposits in other financial institutions 6,615 — 6,636 — Securities available-for-sale 155,223 — 155,223 — Loans held for sale 763 — 763 — Loans, net 306,131 — — 309,903 Federal Home Loan Bank stock 4,275 — 4,275 — Accrued interest receivable 1,485 — 857 628 Financial liabilities: Deposits $ (340,768 ) $ — $ (340,830 ) $ — Federal Home Loan Bank advances (84,919 ) — (85,078 ) — Subordinated debentures (5,155 ) — — (5,149 ) Accrued interest payable (155 ) — (152 ) (3 ) Derivatives – interest rate swaps (1,156 ) — (1,156 ) — |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loan Servicing [Abstract] | |
LOAN SERVICING | LOAN SERVICING Mortgage loans serviced for others are not reported as assets. The principal balances of these loans for the dates indicated are as follows: December 31, 2015 2014 (Dollars in thousands) Mortgage loan portfolios serviced for: FHLMC $ 56,968 $ 59,938 FHLB 1,591 1,339 Total $ 58,559 $ 61,277 Custodial escrow balances maintained in connection with serviced loans were $437,000 and $358,000 , respectively, at December 31, 2015 and 2014 . Activity for capitalized mortgage servicing rights was as follows: Year Ended December 31, 2015 2014 (Dollars in thousands) Servicing rights: Beginning of year $ 351 $ 368 Additions 45 33 Amortized to expense (67 ) (65 ) Change in valuation allowance 5 15 End of year $ 334 $ 351 Valuation allowance: Beginning of year $ 91 $ 106 Additions expensed 17 5 Reductions credited to expense (22 ) (20 ) Direct write-downs — — End of year $ 86 $ 91 The weighted average amortization period for mortgage servicing rights was 4.10 years at December 31, 2015 . The Company also services mortgage warehouse loans for the mortgage warehouse participation program that was implemented during 2015. At December 31, 2015 , the program included three local financial institutions. The principal balances serviced totaled $101.0 million at December 31, 2015 . |
Activity in Capitalized Mortgage Servicing Rights | Activity for capitalized mortgage servicing rights was as follows: Year Ended December 31, 2015 2014 (Dollars in thousands) Servicing rights: Beginning of year $ 351 $ 368 Additions 45 33 Amortized to expense (67 ) (65 ) Change in valuation allowance 5 15 End of year $ 334 $ 351 Valuation allowance: Beginning of year $ 91 $ 106 Additions expensed 17 5 Reductions credited to expense (22 ) (20 ) Direct write-downs — — End of year $ 86 $ 91 |
Loan Portfolios Serviced [Text Block] | Mortgage loans serviced for others are not reported as assets. The principal balances of these loans for the dates indicated are as follows: December 31, 2015 2014 (Dollars in thousands) Mortgage loan portfolios serviced for: FHLMC $ 56,968 $ 59,938 FHLB 1,591 1,339 Total $ 58,559 $ 61,277 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment were as follows for the dates indicated: December 31, 2015 2014 (Dollars in thousands) Land $ 2,355 $ 2,355 Buildings 10,205 10,076 Furniture, fixtures, and equipment 5,430 5,580 Leasehold improvements 45 45 Construction in progress — 17 18,035 18,073 Less: Accumulated depreciation (9,427 ) (9,405 ) $ 8,608 $ 8,668 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Estimated Amortization Expense | Estimated amortization expense related to the Company’s core deposit intangibles for each of the next five years is as follows: (Dollars in thousands) 2016 $ 41 2017 33 2018 26 2019 21 2020 18 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Scheduled Maturities of Time Deposits | Scheduled maturities of time deposits for the next five years were as follows at December 31, 2015 : (Dollars in thousands) 2016 $ 38,264 2017 31,266 2018 9,614 2019 11,771 2020 3,250 Thereafter 4,594 $ 98,759 |
Federal Home Loan Bank Advanc43
Federal Home Loan Bank Advances (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Advance Type, Balances and Interest Rate Ranges | The advance type, balances, and interest rate ranges for the dates indicated are as follows: December 31, 2015 Advance Type Balance Interest Rate Range Weighted Average Rate Maturity Date Range (Dollars in thousands) Fixed rate bullet $ 45,000 0.52% to 1.86% 1.00% January 2016 through April 2019 LIBOR adjustable 10,000 0.57% 0.57% July 2016 Total advances $ 55,000 December 31, 2014 Advance Type Balance Interest Rate Range Weighted Average Rate Maturity Date Range (Dollars in thousands) Fixed rate bullet $ 60,000 0.30% to 3.22% 1.04% January 2015 through April 2019 Variable rate 9,919 0.43% 0.43% January 2015 LIBOR adjustable 15,000 0.47% to 0.50% 0.49% September 2015 through July 2016 Total advances $ 84,919 |
Schedule of Repayments Advances from Federal Home Loan Banks | The required payments for FHLB advances over the next four years are as follows at December 31, 2015 : (Dollars in thousands) 2016 $ 30,000 2017 10,000 2018 10,000 2019 5,000 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shares Held by the ESOP at Year-end | Shares held by the ESOP were as follows at the dates indicated: December 31, 2015 2014 (Dollars in thousands) Allocated to participants 119,036 104,518 Unearned 359,773 382,259 Total ESOP shares 478,809 486,777 Fair value of unearned shares $ 5,469 $ 4,774 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense (Benefit) | Income tax expense (benefit) was as follows: Year Ended December 31, 2015 2014 (Dollars in thousands) Current expense (benefit): Federal $ 906 $ 542 State 248 54 1,154 596 Deferred expense (benefit): Federal 57 124 State (82 ) 308 (25 ) 432 Change in valuation allowance related to realization of net state deferred tax asset (68 ) (335 ) Total $ 1,061 $ 693 |
Net Deferred Tax Assets | The net deferred tax assets at December 31, 2015 and 2014 were as follows: December 31, 2015 2014 (Dollars in thousands) Deferred tax assets: Deferred officer compensation $ 995 $ 963 Bad debt expense 1,419 1,413 Indiana net operating loss carryforwards 326 271 Tax credit carryforwards 40 98 Write downs of other real estate owned 160 260 Capital loss carryforwards 128 135 Nonaccrual loan interest 86 217 Net unrealized losses on interest rate swaps 429 392 Other 147 91 3,730 3,840 Deferred tax liabilities: Mortgage servicing rights (136 ) (144 ) FHLB stock dividends (129 ) (133 ) Deferred loan fees (124 ) (114 ) Prepaid expenses (560 ) (554 ) Depreciation (281 ) (339 ) Net unrealized gains on securities available-for-sale (590 ) (661 ) Amortization of other intangible assets (61 ) (74 ) Real estate investment trust dividends (140 ) (143 ) (2,021 ) (2,162 ) Valuation allowance (682 ) (614 ) $ 1,027 $ 1,064 |
Income Tax Expense Differed from the Amounts Computed by Applying the U.S. Federal Income Tax Rate | Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of 34% to income before income taxes as a result of the following: Year Ended December 31, 2015 2014 (Dollars in thousands) Expected income tax expense at: Federal tax rate $ 1,917 $ 1,735 State tax expense, net of federal benefit 65 17 Increase (decrease) resulting from: Effect of tax exempt income (net) (686 ) (723 ) Other tax exempt income (346 ) (316 ) Other, net 111 (20 ) Total income tax expense $ 1,061 $ 693 Effective tax rate 18.8 % 13.6 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Loans to Principal Officers, Directors, and Affiliates | Loans to principal officers, directors, and their affiliates were as follows: December 31, 2015 2014 (Dollars in thousands) Beginning balance $ 444 $ 488 New loans 177 45 Repayments (259 ) (89 ) Ending balance $ 362 $ 444 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Fair Value Assumptions | The table below presents information related to stock options granted for the years ended December 31, 2015 and 2014 . Year Ended December 31, 2015 2014 Options granted: Number of options 3,500 332,250 Risk-free interest rate 2.04 % 1.88 % Expected term 7.5 years 7.5 years Expected stock price volatility 19.24 % 19.03 % Dividend yield 1.17 % 1.39 % Weighted average fair value of options granted $ 2.94 $ 2.28 |
Summary of Activity in the Stock Option Plan | A summary of stock option activity for the year ended December 31, 2015 was as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (Dollars in thousands) Outstanding at beginning of year 598,972 $ 9.30 8.4 years $ 1,911 Granted 3,500 13.71 9.2 years Exercised (15,308 ) 6.68 Forfeited or expired (5,338 ) 9.10 Outstanding at end of year 581,826 9.40 7.5 years 3,377 Exercisable at end of year 256,262 7.77 6.5 years 1,903 |
Summary of Changes in the Company's Nonvested Shares | A summary of changes in the Company’s nonvested restricted shares for the year ended December 31, 2015 follows: Shares Weighted-Average Grant-Date Fair Value Nonvested at beginning of year 175,164 $ 10.14 Granted — — Vested (49,114 ) 9.09 Forfeited (898 ) 6.44 Nonvested at end of year 125,152 10.58 |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Actual and Required Bank Capital Amounts | Actual and required Bank capital amounts and ratios are presented below at the dates indicated. Actual Required For Capital Adequacy Purposes Minimum Required To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2015 (1) Total Capital to risk weighted assets Bank $ 71,217 18.0 % $ 31,700 8.0 % $ 39,625 10.0 % Tier 1 (Core) Capital to risk weighted assets Bank 67,583 17.1 23,775 6.0 31,700 8.0 Tier 1 Common Equity Capital to risk weighted assets Bank 67,583 17.1 17,831 4.5 25,757 6.5 Tier 1 (Core) Capital to average assets Bank 67,583 13.3 20,317 4.0 25,397 5.0 December 31, 2014 (1) Total Capital to risk weighted assets Bank $ 67,729 19.2 % $ 28,277 8.0 % $ 35,346 10.0 % Tier 1 (Core) Capital to risk weighted assets Bank 64,134 18.1 14,138 4.0 21,207 6.0 Tier 1 (Core) Capital to average assets Bank 64,134 13.0 19,754 4.0 24,692 5.0 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest-rate Swaps Designated as Cash Flow Hedges | Information related to the interest-rate swaps designated as cash flow hedges were as follows for the periods presented: December 31, 2015 2014 (Dollars in thousands) FHLB Advance: Notional amount $ — $ 5,000 Unrealized losses — (109 ) Fixed interest rate payable — % 3.54 % Variable interest rate receivable (Three month LIBOR plus 0.22%) — 0.47 Maturity date September 20, 2015 FHLB Advance: Notional amount $ 10,000 $ 10,000 Unrealized losses (154 ) (434 ) Fixed interest rate payable 3.69 % 3.69 % Variable interest rate receivable (Three month LIBOR plus 0.25%) 0.57 0.48 Maturity date July 19, 2016 FHLB Advance: Notional amount $ 10,000 $ 10,000 Unrealized losses (276 ) (186 ) Fixed interest rate payable 2.09 % 2.09 % Variable interest rate receivable (One month LIBOR) 0.35 — Maturity date March 15, 2020 FHLB Advance: Notional amount $ 10,000 $ 10,000 Unrealized losses (339 ) (197 ) Fixed interest rate payable 2.23 % 2.23 % Variable interest rate receivable (One month LIBOR) 0.35 — Maturity date June 15, 2020 December 31, 2015 2014 (Dollars in thousands) Forward Starting: FHLB advance: Notional amount $ 10,000 $ 10,000 Unrealized losses (496 ) (230 ) Fixed interest rate payable 2.62 % 2.62 % Variable interest rate receivable (One month LIBOR) — — Start date March 15, 2016 Maturity date March 15, 2021 |
Net Gains (Losses) Recorded in Accumulated Other Comprehensive Income (Loss) and Income Relating to the Cash Flow Derivative | The following table presents the net gains (losses) recorded in accumulated other comprehensive income (loss) and the consolidated statements of income relating to the cash flow derivative instruments for the periods presented: Year Ended December 31, 2015 2014 (Dollars in thousands) Interest rate contracts: Net amount of gain (loss): Recognized in OCI (Effective Portion) $ (73 ) $ 17 Reclassified from OCI to interest income — — Recognized in other noninterest income (Ineffective Portion) — — |
Cash Flow Hedges Included in Consolidated Balance Sheets | The following table reflects the cash flow hedges included in the consolidated balance sheets as of the dates indicated: December 31, 2015 2014 Notional Amount Fair Value Notional Fair Included in other liabilities: Interest rate swaps related to FHLB advances (40,000 ) (1,265 ) (45,000 ) (1,156 ) |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | A summary of the changes in accumulated other comprehensive income (loss) by component for the dates indicated is as follows: Year Ended December 31, 2015 2014 Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Available- for-Sale Securities Total Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Available- for-Sale Securities Total (Dollars in thousands) Beginning balance $ (763 ) $ 1,285 $ 522 $ (780 ) $ (1,058 ) $ (1,838 ) Other comprehensive income (loss) before reclassification (73 ) (74 ) (147 ) 17 2,412 2,429 Amounts reclassified from accumulated other comprehensive income (loss) — (65 ) (65 ) — (69 ) (69 ) Net current period other comprehensive income (loss) (73 ) (139 ) (212 ) 17 2,343 2,360 Ending balance $ (836 ) $ 1,146 $ 310 $ (763 ) $ 1,285 $ 522 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | A summary of the reclassifications out of accumulated other comprehensive income (loss) for the date indicated is as follows: Year ended December 31, 2015 2014 Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (Dollars in thousands) Unrealized gains and losses on available-for-sale securities: Net gains on securities $ 99 $ 105 Income tax expense (34 ) (36 ) Net of tax $ 65 $ 69 |
Offsetting Financial Assets a51
Offsetting Financial Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | The following tables summarize gross and net information about financial instruments and derivative instruments that are offset in the Company’s statement of consolidated balance sheets or that are subject to an enforceable master netting arrangement at December 31, 2015 and 2014 . December 31, 2015 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount (Dollars in thousands) Derivatives $ 1,265 $ — $ 1,265 $ (3,696 ) $ — $ (2,431 ) December 31, 2014 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount (Dollars in thousands) Derivatives $ 1,156 $ — $ 1,156 $ (2,606 ) $ — $ (1,450 ) Repurchase agreements 755 — 755 (755 ) — — Total $ 1,911 $ — $ 1,911 $ (3,361 ) $ — $ (1,450 ) |
Loan Commitments and Other Re52
Loan Commitments and Other Related Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Amounts of Financial Instruments with Off-balance-sheet Risk | The contractual amounts of financial instruments with off-balance-sheet risk were as follows at the dates indicated: December 31, 2015 2014 Fixed Rate Variable Rate Fixed Rate Variable Rate (Dollars in thousands) Commitments to make loans $ 1,491 $ 969 $ 5,662 $ 21,103 Unused lines of credit 7,237 25,447 6,191 26,959 Standby letters of credit 38 964 33 950 Total $ 8,766 $ 27,380 $ 11,886 $ 49,012 |
Parent Company Only Condensed53
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets | CONDENSED BALANCE SHEETS December 31, 2015 2014 (Dollars in thousands) ASSETS Cash and cash equivalents $ 3,213 $ 4,954 Interest-earning time deposits in other financial institutions 1,729 — Securities available-for-sale 3,493 4,342 ESOP loan receivable 2,992 3,133 Investment in banking subsidiary 76,444 73,376 Investment in captive insurance subsidiary 2,256 1,177 Investment in statutory trust 155 155 Accrued interest receivable and other assets 439 411 Total assets $ 90,721 $ 87,548 LIABILITIES AND SHAREHOLDERS’ EQUITY Subordinated debentures $ 5,155 $ 5,155 Accrued interest payable and other liabilities 18 5 Shareholders’ equity 85,548 82,388 Total liabilities and shareholders’ equity $ 90,721 $ 87,548 |
Condensed Statements of Income | CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Year Ended December 31, 2015 2014 (Dollars in thousands) Dividends from banking subsidiary $ 1,500 $ 4,000 Interest income 170 198 Interest expense (172 ) (195 ) Other income 3 — Other expense (451 ) (274 ) Income before income tax and undistributed subsidiary income 1,050 3,729 Income tax benefit (153 ) (92 ) Equity in undistributed income or net income of subsidiaries 3,375 589 Net income 4,578 4,410 Other comprehensive income (loss) (212 ) 2,360 Net income and comprehensive income (loss) $ 4,366 $ 6,770 |
Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS Year Ended December 31, 2015 2014 (Dollars in thousands) Cash flows from operating activities: Net income $ 4,578 $ 4,410 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed income or net income of subsidiaries (3,375 ) (589 ) Change in other assets 70 806 Change in other liabilities (96 ) (6 ) Net cash provided by operating activities 1,177 4,621 Cash flows from investing activities: Net change in ESOP loan receivable 141 137 Net change in interest-earning time deposits at other financial institutions (1,729 ) 2,232 Net change in securities available-for-sale 882 524 Net cash (utilized for) provided by investing activities (706 ) 2,893 Cash flows from financing activities: Stock option exercises 103 28 Repurchase of common stock (1,419 ) (4,321 ) Dividends paid on common stock (896 ) (923 ) Net cash utilized for financing activities (2,212 ) (5,216 ) Net change in cash and cash equivalents (1,741 ) 2,298 Beginning cash and cash equivalents 4,954 2,656 Ending cash and cash equivalents $ 3,213 $ 4,954 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Factors Used in the Earnings per Common Share Computation | The factors used in the earnings per common share computation follow: Year Ended December 31, 2015 2014 (Dollars in thousands, except per share data) Basic: Net income $ 4,578 $ 4,410 Weighted average common shares outstanding 5,596,165 5,767,168 Less: Average unallocated ESOP shares (371,017 ) (393,502 ) Average shares 5,225,148 5,373,666 Basic earnings per common share $ 0.88 $ 0.82 Diluted: Net income $ 4,578 $ 4,410 Weighted average common shares outstanding for basic earnings per common share 5,225,148 5,373,666 Add: Dilutive effects of assumed exercises of stock options 122,764 91,890 Average shares and dilutive potential common shares 5,347,912 5,465,556 Diluted earnings per common share $ 0.86 $ 0.81 |
Quarterly Financial Data (Una55
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Interest Income Net Net Income Basic Diluted Earnings Per Share (Dollars in thousands, except per share data) December 31, 2015 First quarter $ 4,481 $ 3,876 $ 952 $ 0.18 $ 0.18 Second quarter 4,736 4,056 1,324 0.25 0.25 Third quarter 4,604 3,904 1,071 0.21 0.20 Fourth quarter 4,904 4,220 1,231 0.24 0.23 December 31, 2014 First quarter $ 4,277 $ 3,482 $ 850 $ 0.15 $ 0.15 Second quarter 4,505 3,695 1,214 0.23 0.22 Third quarter 4,644 3,861 1,341 0.25 0.25 Fourth quarter 4,499 3,822 1,005 0.19 0.19 |
Summary of Significant Accoun56
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Restricted Cash and Investments, Current | $ 5,200,000 | $ 2,600,000 |
Cash, Uninsured Amount | 13,800,000 | |
Uninsured Federal Reserve Bank Federal Home Loan Bank Cash | 12,100,000 | |
Loans Receivable, Accrual of Interest | $ 756,000 | $ 628,000 |
Summary of Significant Accounting Policies (Textual) [Abstract] | ||
Cash and cash equivalents with original maturities | 90 days | |
Interest income on mortgage and commercial loans discontinued, period | 90 days | |
Consumer loans are charged off | 120 days | |
Nonaccrual loans and loans past due | 90 days | |
Actual loss history experiencing period for all other portfolio segments | 3 years | 3 years |
Loan servicing fees, net | $ 203,000 | $ 112,000 |
Tax benefit percentage | 50.00% | |
Income tax expense benefit for tax positions | $ 0 | |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Interest-earning time deposits maturity period | 1 year | |
Period of individual loans are sold by the mortgage company | 30 days | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Interest-earning time deposits maturity period | 6 years | |
Period of individual loans are sold by the mortgage company | 90 days | |
Estimated useful lives initially measured at fair value | 15 years | |
Buildings [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives of computing depreciation of buildings and related components | 5 years | |
Buildings [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives of computing depreciation of buildings and related components | 30 years | |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives of computing depreciation of buildings and related components | 3 years | |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives of computing depreciation of buildings and related components | 10 years |
Securities (Details)
Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 33,342 | $ 26,432 |
Summarizes the amortized cost and fair value of the available-for-sale securities portfolio | ||
Amortized Cost | 120,509 | 153,276 |
Gross Unrealized Gains | 2,635 | 3,127 |
Gross Unrealized Losses | (901) | (1,180) |
Fair Value | 122,243 | 155,223 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | (269) | (130) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 20,752 | 45,025 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | (632) | (1,050) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 54,094 | 71,457 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 901 | 1,180 |
Government Agency Sponsored Collateralized Mortgage Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 8,371 | 2,792 |
Summarizes the amortized cost and fair value of the available-for-sale securities portfolio | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | (71) | (8) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 2,942 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 0 | (58) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 8,371 | 5,734 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 71 | 66 |
U.S. Federal Agency [Member] | ||
Summarizes the amortized cost and fair value of the available-for-sale securities portfolio | ||
Amortized Cost | 9,442 | 7,447 |
Gross Unrealized Gains | 1 | 14 |
Gross Unrealized Losses | (71) | (66) |
Fair Value | 9,372 | 7,395 |
State and Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 4,512 | 3,571 |
Summarizes the amortized cost and fair value of the available-for-sale securities portfolio | ||
Amortized Cost | 50,020 | 54,298 |
Gross Unrealized Gains | 2,397 | 2,638 |
Gross Unrealized Losses | (17) | (89) |
Fair Value | 52,400 | 56,847 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | (14) | (11) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 856 | 5,506 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | (3) | (78) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 5,368 | 9,077 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 17 | 89 |
Mortgage-backed Securities - Residential [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 9,259 | 13,261 |
Summarizes the amortized cost and fair value of the available-for-sale securities portfolio | ||
Amortized Cost | 17,671 | 27,391 |
Gross Unrealized Gains | 98 | 185 |
Gross Unrealized Losses | (73) | (88) |
Fair Value | 17,696 | 27,488 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | (48) | (40) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 809 | 3,073 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | (25) | (48) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 10,068 | 16,334 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 73 | 88 |
Government Agency Sponsored Collateralized Mortgage Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 11,200 | 5,845 |
Summarizes the amortized cost and fair value of the available-for-sale securities portfolio | ||
Amortized Cost | 42,376 | 63,140 |
Gross Unrealized Gains | 139 | 290 |
Gross Unrealized Losses | (679) | (900) |
Fair Value | 41,836 | 62,530 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | (136) | (34) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 18,148 | 33,504 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | (543) | (866) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 29,348 | 39,349 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 679 | 900 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 0 | 963 |
Summarizes the amortized cost and fair value of the available-for-sale securities portfolio | ||
Amortized Cost | 1,000 | 1,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (61) | (37) |
Fair Value | 939 | 963 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 0 | (37) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 939 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | (61) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 939 | 963 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 61 | $ 37 |
Securities (Details 1)
Securities (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Sales of securities available for sale | ||
Proceeds | $ 21,539 | $ 26,133 |
Gross gains | 166 | 203 |
Gross losses | $ (67) | $ (98) |
Securities (Details 2)
Securities (Details 2) $ in Thousands | Dec. 31, 2015USD ($) |
Amortized cost and fair value of debt securities by contractual maturity | |
Due in one year or less, Amortized Cost | $ 641 |
Due from more than one to five years, Amortized Cost | 20,084 |
Due from more than five to ten years, Amortized Cost | 28,438 |
Due after ten years, Amortized Cost | 11,299 |
Subtotal, Amortized Cost | 60,462 |
Mortgage-backed securities and government agency sponsored collateralized mortgage obligations, Amortized Cost | 60,047 |
Total, Amortized Cost Basis | 120,509 |
Due in one year or less, Fair Value | 648 |
Due from more than one to five years, Fair Value | 20,271 |
Due from more than five to ten years, Fair Value | 29,636 |
Due after ten years, Fair Value | 12,156 |
Subtotal, Fair Value | 62,711 |
Mortgage-backed securities and government agency sponsored collateralized mortgage obligations, Fair Value | 59,532 |
Total, Fair Value | $ 122,243 |
Securities (Details 3)
Securities (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair value of securities with unrealized losses, aggregated by investment category and length of time | ||
Continuing Unrealized Loss For Less Than 12 Months Fair Value | $ 33,342 | $ 26,432 |
Continuing Unrealized Loss For Less Than 12 Months, Unrealized Loss | (269) | (130) |
Continuing Unrealized Loss For 12 Months or More Fair Value | 20,752 | 45,025 |
Continuing Unrealized Loss For 12 Months or More, Unrealized Loss | (632) | (1,050) |
Total Fair Value | 54,094 | 71,457 |
Total Unrealized Loss | (901) | (1,180) |
U.S. Federal Agency [Member] | ||
Fair value of securities with unrealized losses, aggregated by investment category and length of time | ||
Continuing Unrealized Loss For Less Than 12 Months Fair Value | 8,371 | 2,792 |
Continuing Unrealized Loss For Less Than 12 Months, Unrealized Loss | (71) | (8) |
Continuing Unrealized Loss For 12 Months or More Fair Value | 0 | 2,942 |
Continuing Unrealized Loss For 12 Months or More, Unrealized Loss | 0 | (58) |
Total Fair Value | 8,371 | 5,734 |
Total Unrealized Loss | (71) | (66) |
State and Municipal [Member] | ||
Fair value of securities with unrealized losses, aggregated by investment category and length of time | ||
Continuing Unrealized Loss For Less Than 12 Months Fair Value | 4,512 | 3,571 |
Continuing Unrealized Loss For Less Than 12 Months, Unrealized Loss | (14) | (11) |
Continuing Unrealized Loss For 12 Months or More Fair Value | 856 | 5,506 |
Continuing Unrealized Loss For 12 Months or More, Unrealized Loss | (3) | (78) |
Total Fair Value | 5,368 | 9,077 |
Total Unrealized Loss | (17) | (89) |
Mortgage-backed Securities - Residential [Member] | ||
Fair value of securities with unrealized losses, aggregated by investment category and length of time | ||
Continuing Unrealized Loss For Less Than 12 Months Fair Value | 9,259 | 13,261 |
Continuing Unrealized Loss For Less Than 12 Months, Unrealized Loss | (48) | (40) |
Continuing Unrealized Loss For 12 Months or More Fair Value | 809 | 3,073 |
Continuing Unrealized Loss For 12 Months or More, Unrealized Loss | (25) | (48) |
Total Fair Value | 10,068 | 16,334 |
Total Unrealized Loss | (73) | (88) |
Government Agency Sponsored Collateralized Mortgage Obligations [Member] | ||
Fair value of securities with unrealized losses, aggregated by investment category and length of time | ||
Continuing Unrealized Loss For Less Than 12 Months Fair Value | 11,200 | 5,845 |
Continuing Unrealized Loss For Less Than 12 Months, Unrealized Loss | (136) | (34) |
Continuing Unrealized Loss For 12 Months or More Fair Value | 18,148 | 33,504 |
Continuing Unrealized Loss For 12 Months or More, Unrealized Loss | (543) | (866) |
Total Fair Value | 29,348 | 39,349 |
Total Unrealized Loss | (679) | (900) |
Corporate Debt Securities [Member] | ||
Fair value of securities with unrealized losses, aggregated by investment category and length of time | ||
Continuing Unrealized Loss For Less Than 12 Months Fair Value | 0 | 963 |
Continuing Unrealized Loss For Less Than 12 Months, Unrealized Loss | 0 | (37) |
Continuing Unrealized Loss For 12 Months or More Fair Value | 939 | 0 |
Continuing Unrealized Loss For 12 Months or More, Unrealized Loss | (61) | 0 |
Total Fair Value | 939 | 963 |
Total Unrealized Loss | $ (61) | $ (37) |
Securities (Details Textual)
Securities (Details Textual) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)Investment | Dec. 31, 2014USD ($)Investment | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross gains | $ 166 | $ 203 |
Gross losses | (67) | (98) |
Securities (Textual) [Abstract] | ||
Securities pledged, carrying amount | 43,100 | 40,200 |
Holding of securities | $ 0 | $ 0 |
Percentage of equity | 10.00% | 10.00% |
Number of investment in unrealized loss position | Investment | 67 | 86 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 54,094 | $ 71,457 |
Available-for-Sale Securities Continuous Unrealized Loss Position Percentage | 44.30% | 46.00% |
Number of investment in unrealized loss position for less than one year | Investment | 41 | 32 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | Investment | 26 | 54 |
Loans (Details)
Loans (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)Companies | Dec. 31, 2014USD ($)Companies | Dec. 31, 2013USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal | $ 344,881,000 | $ 309,449,000 | |
Less: Net deferred loan (fees) costs | 305,000 | 277,000 | |
Allowance for loan losses | (3,634,000) | (3,595,000) | $ (3,905,000) |
Loans, net | $ 341,552,000 | $ 306,131,000 | |
Number Of Mortgage Companies | Companies | 37 | 29 | |
Mortgage Warehouse Loans Originated | $ 3,633,087,000 | $ 2,195,170,000 | |
Mortgage Warehouse Loans Sold | 3,529,726,000 | 2,178,953,000 | |
Interest and Fee Income, Loans and Leases | 15,476,000 | 14,065,000 | |
Wire Transfer Fees | 390,000 | 249,000 | |
Loans and Leases Receivable, Fees Earned but Excluded from Yield | 203,000 | 112,000 | |
Commercial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal | 154,830,000 | 118,312,000 | |
Allowance for loan losses | (2,440,000) | (2,116,000) | (2,725,000) |
Mortgage [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal | 40,478,000 | 39,317,000 | |
Allowance for loan losses | (591,000) | (676,000) | (458,000) |
Mortgage Warehouse [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal | 128,902,000 | 132,636,000 | |
Allowance for loan losses | (460,000) | (654,000) | (508,000) |
Residential Construction [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal | 3,301,000 | 1,664,000 | |
Allowance for loan losses | (4,000) | (4,000) | 0 |
Home Equity [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal | 13,990,000 | 13,195,000 | |
Allowance for loan losses | (93,000) | (90,000) | (111,000) |
Consumer and Other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal | 3,380,000 | 4,325,000 | |
Allowance for loan losses | (46,000) | (55,000) | $ (83,000) |
Mortgage Warehouse [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest and Fee Income, Loans and Leases | 4,954,000 | 4,555,000 | |
Interest And Fee Income On Loans | 1,133,000 | 695,000 | |
Wire Transfer Fees | 364,000 | 223,000 | |
Loans and Leases Receivable, Fees Earned but Excluded from Yield | 109,000 | $ 0 | |
Participated Loans, Outstanding Balance | 101,000,000 | ||
Participated Loans, Lines of Credit Available | $ 14,000,000 |
Allowance for Loan Losses (Deta
Allowance for Loan Losses (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($)Loanloan | Dec. 31, 2014USD ($)Loanloan | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Allowance for Credit Losses | $ 3,634,000 | $ 3,595,000 |
Financing Receivable, Recorded Investment, Past Due | 2,124,000 | 3,813,000 |
Performing in accordance with modified repayment terms | $ 1,720,000 | $ 5,873,000 |
Financing Receivable Modifications Number of Loan | Loan | 5 | 9 |
Financing Receivable Modifications Pre Modification Outstanding Recorded Investment | $ 1,286,000 | $ 6,127,000 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 2,349,000 | 4,423,000 |
Financing Receivable Modifications Post Modification Outstanding Recorded Investment | $ 1,299,000 | 6,529,000 |
Document Period End Date | Dec. 31, 2015 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | $ 2,571,000 | 7,958,000 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 2,434,000 | $ 7,892,000 |
Number of Loans, Subsequent default | loan | 0 | 0 |
Impaired Financing Receivable With No Related Allowance For Loan Losses Allocated | $ 0 | $ 0 |
Recorded Investment, Subsequent default | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 3,522,000 | 8,146,000 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 183,000 | 418,000 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method | 6,000 | 9,000 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Allowance for Credit Losses | 93,000 | 90,000 |
Financing Receivable, Recorded Investment, Past Due | 8,000 | 80,000 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 23,000 | 7,000 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 81,000 | 8,000 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 80,000 | 7,000 |
Impaired Financing Receivable With No Related Allowance For Loan Losses Allocated | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 58,000 | 8,000 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 4,000 | 0 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method | 0 | 0 |
Land [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 1,216,000 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 299,000 | 1,577,000 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 138,000 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 123,000 | |
Impaired Financing Receivable With No Related Allowance For Loan Losses Allocated | 0 | |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 184,000 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 0 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method | 9,000 | |
Commercial Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 41,000 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 41,000 | 0 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 1,384,000 | $ 894,000 |
Financing Receivable Modifications Number of Loan | loan | 4 | 3 |
Financing Receivable Modifications Pre Modification Outstanding Recorded Investment | $ 1,213,000 | $ 2,106,000 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,396,000 | 879,000 |
Financing Receivable Modifications Post Modification Outstanding Recorded Investment | 1,221,000 | 2,106,000 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,436,000 | 2,962,000 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,366,000 | 2,960,000 |
Impaired Financing Receivable With No Related Allowance For Loan Losses Allocated | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,556,000 | 2,906,000 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 103,000 | 175,000 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method | 6,000 | 0 |
Commercial And Other [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 27,000 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 27,000 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 0 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 0 | |
Impaired Financing Receivable With No Related Allowance For Loan Losses Allocated | 0 | |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,000 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 0 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method | 0 | |
Unallocated Financing Receivables [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Allowance for Credit Losses | 0 | 0 |
Consumer And Other [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Allowance for Credit Losses | 46,000 | 55,000 |
Financing Receivable, Recorded Investment, Past Due | $ 0 | $ 19,000 |
Home Equity Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable Modifications Number of Loan | loan | 1 | 0 |
Financing Receivable Modifications Pre Modification Outstanding Recorded Investment | $ 73,000 | $ 0 |
Financing Receivable Modifications Post Modification Outstanding Recorded Investment | 78,000 | 0 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Allowance for Credit Losses | 4,000 | 4,000 |
Mortgage [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Allowance for Credit Losses | 591,000 | 676,000 |
Financing Receivable, Recorded Investment, Past Due | $ 671,000 | $ 1,577,000 |
Financing Receivable Modifications Number of Loan | loan | 0 | 4 |
Financing Receivable Modifications Pre Modification Outstanding Recorded Investment | $ 0 | $ 514,000 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 590,000 | 1,933,000 |
Financing Receivable Modifications Post Modification Outstanding Recorded Investment | 0 | 673,000 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,054,000 | 1,151,000 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 988,000 | 1,103,000 |
Impaired Financing Receivable With No Related Allowance For Loan Losses Allocated | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 997,000 | 1,365,000 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 16,000 | 9,000 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method | 0 | 0 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Allowance for Credit Losses | 2,440,000 | 2,116,000 |
Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Net | 106,000 | 731,000 |
Financing Receivable, Allowance for Credit Losses | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Net | 0 | 0 |
Financing Receivable, Allowance for Credit Losses | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Unallocated Financing Receivables [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Net | 0 | 0 |
Financing Receivable, Allowance for Credit Losses | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Consumer And Other [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Net | 0 | 0 |
Financing Receivable, Allowance for Credit Losses | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Net | 0 | 0 |
Financing Receivable, Allowance for Credit Losses | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Mortgage [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Net | 106,000 | 112,000 |
Financing Receivable, Allowance for Credit Losses | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Net | 0 | 619,000 |
Financing Receivable, Allowance for Credit Losses | $ 0 | $ 0 |
Allowance for Loan Losses (De64
Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for loan losses: | ||
Beginning balance | $ 3,595 | $ 3,905 |
Charge-offs | (238) | (201) |
Recoveries | 22 | 41 |
Provision | (255) | 150 |
Ending balance | 3,634 | 3,595 |
Commercial [Member] | ||
Allowance for loan losses: | ||
Beginning balance | 2,116 | 2,725 |
Charge-offs | (20) | 0 |
Recoveries | 1 | 0 |
Provision | (343) | 609 |
Ending balance | 2,440 | 2,116 |
Commercial Mortgage [Member] | ||
Allowance for loan losses: | ||
Beginning balance | 676 | 458 |
Charge-offs | (78) | (159) |
Recoveries | 0 | 21 |
Provision | 7 | (356) |
Ending balance | 591 | 676 |
Mortgage Warehouse [Member] | ||
Allowance for loan losses: | ||
Beginning balance | 654 | 508 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | 194 | (146) |
Ending balance | 460 | 654 |
Residential Construction [Member] | ||
Allowance for loan losses: | ||
Beginning balance | 4 | 0 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | 0 | (4) |
Ending balance | 4 | 4 |
Home Equity [Member] | ||
Allowance for loan losses: | ||
Beginning balance | 90 | 111 |
Charge-offs | (18) | (12) |
Recoveries | 1 | 5 |
Provision | (20) | 14 |
Ending balance | 93 | 90 |
Consumer and Other [Member] | ||
Allowance for loan losses: | ||
Beginning balance | 55 | 83 |
Charge-offs | (122) | (30) |
Recoveries | 20 | 15 |
Provision | (93) | 13 |
Ending balance | 46 | 55 |
Unallocated [Member] | ||
Allowance for loan losses: | ||
Beginning balance | 0 | 20 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | 0 | 20 |
Ending balance | $ 0 | $ 0 |
Allowance for Loan Losses (De65
Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Ending allowance balance attributable to loans: | ||
Individually evaluated for impairment | $ 945 | $ 886 |
Collectively evaluated for impairment | 2,689 | 2,709 |
Total ending allowance | 3,634 | 3,595 |
Loans: | ||
Individually evaluated for impairment | 4,300 | 11,218 |
Collectively evaluated for impairment | 340,475 | 297,500 |
Total ending loan balance | 344,881 | 309,449 |
Commercial Construction [Member] | ||
Loans: | ||
Total ending loan balance | 11,082 | 2,322 |
Commercial [Member] | ||
Ending allowance balance attributable to loans: | ||
Individually evaluated for impairment | 885 | 764 |
Collectively evaluated for impairment | 1,555 | 1,352 |
Total ending allowance | 2,440 | 2,116 |
Loans: | ||
Individually evaluated for impairment | 2,920 | 9,005 |
Collectively evaluated for impairment | 151,910 | 108,688 |
Total ending loan balance | 154,830 | 118,312 |
Commercial Mortgage [Member] | ||
Ending allowance balance attributable to loans: | ||
Individually evaluated for impairment | 43 | 122 |
Collectively evaluated for impairment | 548 | 554 |
Total ending allowance | 591 | 676 |
Loans: | ||
Individually evaluated for impairment | 1,283 | 2,206 |
Collectively evaluated for impairment | 39,089 | 36,999 |
Total ending loan balance | 40,478 | 39,317 |
Mortgage Warehouse [Member] | ||
Ending allowance balance attributable to loans: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 460 | 654 |
Total ending allowance | 460 | 654 |
Loans: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 128,902 | 132,636 |
Total ending loan balance | 128,902 | 132,636 |
Residential Construction [Member] | ||
Ending allowance balance attributable to loans: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 4 | 4 |
Total ending allowance | 4 | 4 |
Loans: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 3,301 | 1,664 |
Total ending loan balance | 3,301 | 1,664 |
Home Equity [Member] | ||
Ending allowance balance attributable to loans: | ||
Individually evaluated for impairment | 17 | 0 |
Collectively evaluated for impairment | 76 | 90 |
Total ending allowance | 93 | 90 |
Loans: | ||
Individually evaluated for impairment | 97 | 7 |
Collectively evaluated for impairment | 13,893 | 13,188 |
Total ending loan balance | 13,990 | 13,195 |
Consumer and Other [Member] | ||
Ending allowance balance attributable to loans: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 46 | 55 |
Total ending allowance | 46 | 55 |
Loans: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 3,380 | 4,325 |
Total ending loan balance | 3,380 | 4,325 |
Unallocated [Member] | ||
Ending allowance balance attributable to loans: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Total ending allowance | 0 | 0 |
Loans: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Total ending loan balance | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Ending allowance balance attributable to loans: | ||
Total ending allowance | 0 | 0 |
Loans: | ||
Acquired with deteriorated credit quality | 106 | 731 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial [Member] | ||
Ending allowance balance attributable to loans: | ||
Total ending allowance | 0 | 0 |
Loans: | ||
Acquired with deteriorated credit quality | 0 | 619 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial Mortgage [Member] | ||
Ending allowance balance attributable to loans: | ||
Total ending allowance | 0 | 0 |
Loans: | ||
Acquired with deteriorated credit quality | 106 | 112 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Mortgage Warehouse [Member] | ||
Ending allowance balance attributable to loans: | ||
Total ending allowance | 0 | 0 |
Loans: | ||
Acquired with deteriorated credit quality | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Residential Construction [Member] | ||
Ending allowance balance attributable to loans: | ||
Total ending allowance | 0 | 0 |
Loans: | ||
Acquired with deteriorated credit quality | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Home Equity [Member] | ||
Ending allowance balance attributable to loans: | ||
Total ending allowance | 0 | 0 |
Loans: | ||
Acquired with deteriorated credit quality | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Consumer and Other [Member] | ||
Ending allowance balance attributable to loans: | ||
Total ending allowance | 0 | 0 |
Loans: | ||
Acquired with deteriorated credit quality | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality [Member] | Unallocated [Member] | ||
Ending allowance balance attributable to loans: | ||
Total ending allowance | 0 | 0 |
Loans: | ||
Acquired with deteriorated credit quality | $ 0 | $ 0 |
Allowance for Loan Losses (De66
Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Information Related to Impaired Loans by Class of Loans | ||
With no related allowance recorded, Unpaid Principal Balance | $ 2,571 | $ 7,958 |
With an allowance recorded, Unpaid Principal Balance | 2,058 | 3,936 |
Subtotal | 4,629 | 11,894 |
With no related allowance recorded, Recorded Investment | 2,434 | 7,892 |
With an allowance recorded, Recorded Investment | 1,866 | 3,326 |
Subtotal | 4,300 | 11,218 |
With no related allowance recorded, allowance For Loan Losses Allocated | 0 | 0 |
With an allowance recorded, allowance For Loan Losses Allocated | 945 | 886 |
Subtotal | 945 | 886 |
With no related allowance recorded, Average Recorded Investment | 3,522 | 8,146 |
With an allowance recorded, Average Recorded Investment | 3,392 | 3,430 |
Subtotal | 6,914 | 11,576 |
With no related allowance recorded, Interest Income Recognized | 183 | 418 |
With an allowance recorded, Interest Income Recognized | 20 | 9 |
Subtotal | 203 | 427 |
With no related allowance recorded, Cash Basis Interest Recognized | 6 | 9 |
With an allowance recorded, Cash Basis Interest Recognized | 0 | 0 |
Subtotal | 6 | 9 |
Commercial And Other [Member] | ||
Information Related to Impaired Loans by Class of Loans | ||
With no related allowance recorded, Unpaid Principal Balance | 0 | |
With no related allowance recorded, Recorded Investment | 0 | |
With no related allowance recorded, allowance For Loan Losses Allocated | 0 | |
With no related allowance recorded, Average Recorded Investment | 1 | |
With no related allowance recorded, Interest Income Recognized | 0 | |
With no related allowance recorded, Cash Basis Interest Recognized | 0 | |
Commercial: Real Estate [Member] | ||
Information Related to Impaired Loans by Class of Loans | ||
With no related allowance recorded, Unpaid Principal Balance | 1,436 | 2,962 |
With an allowance recorded, Unpaid Principal Balance | 1,214 | 830 |
With no related allowance recorded, Recorded Investment | 1,366 | 2,960 |
With an allowance recorded, Recorded Investment | 1,214 | 769 |
With no related allowance recorded, allowance For Loan Losses Allocated | 0 | 0 |
With an allowance recorded, allowance For Loan Losses Allocated | 624 | 281 |
With no related allowance recorded, Average Recorded Investment | 1,556 | 2,906 |
With an allowance recorded, Average Recorded Investment | 1,368 | 806 |
With no related allowance recorded, Interest Income Recognized | 103 | 175 |
With an allowance recorded, Interest Income Recognized | 9 | 0 |
With no related allowance recorded, Cash Basis Interest Recognized | 6 | 0 |
With an allowance recorded, Cash Basis Interest Recognized | 0 | 0 |
Commercial Real Estate And Multi Family Portfolio Segment [Member] | ||
Information Related to Impaired Loans by Class of Loans | ||
With no related allowance recorded, Unpaid Principal Balance | 0 | 3,699 |
With no related allowance recorded, Recorded Investment | 0 | 3,699 |
With no related allowance recorded, allowance For Loan Losses Allocated | 0 | 0 |
With no related allowance recorded, Average Recorded Investment | 910 | 3,670 |
With no related allowance recorded, Interest Income Recognized | 60 | 234 |
With no related allowance recorded, Cash Basis Interest Recognized | 0 | 0 |
Commercial: Land [Member] | ||
Information Related to Impaired Loans by Class of Loans | ||
With no related allowance recorded, Unpaid Principal Balance | 138 | |
With an allowance recorded, Unpaid Principal Balance | 431 | 1,937 |
With no related allowance recorded, Recorded Investment | 123 | |
With an allowance recorded, Recorded Investment | 299 | 1,454 |
With no related allowance recorded, allowance For Loan Losses Allocated | 0 | |
With an allowance recorded, allowance For Loan Losses Allocated | 220 | 483 |
With no related allowance recorded, Average Recorded Investment | 184 | |
With an allowance recorded, Average Recorded Investment | 1,362 | 2,034 |
With no related allowance recorded, Interest Income Recognized | 0 | |
With an allowance recorded, Interest Income Recognized | 0 | 0 |
With no related allowance recorded, Cash Basis Interest Recognized | 9 | |
With an allowance recorded, Cash Basis Interest Recognized | 0 | 0 |
Commercial Construction [Member] | ||
Information Related to Impaired Loans by Class of Loans | ||
With an allowance recorded, Unpaid Principal Balance | 41 | |
With an allowance recorded, Recorded Investment | 41 | |
With an allowance recorded, allowance For Loan Losses Allocated | 41 | |
With an allowance recorded, Average Recorded Investment | 10 | |
With an allowance recorded, Interest Income Recognized | 0 | |
With an allowance recorded, Cash Basis Interest Recognized | 0 | |
Mortgage [Member] | ||
Information Related to Impaired Loans by Class of Loans | ||
With no related allowance recorded, Unpaid Principal Balance | 1,054 | 1,151 |
With an allowance recorded, Unpaid Principal Balance | 355 | 1,169 |
With no related allowance recorded, Recorded Investment | 988 | 1,103 |
With an allowance recorded, Recorded Investment | 295 | 1,103 |
With no related allowance recorded, allowance For Loan Losses Allocated | 0 | 0 |
With an allowance recorded, allowance For Loan Losses Allocated | 43 | 122 |
With no related allowance recorded, Average Recorded Investment | 997 | 1,365 |
With an allowance recorded, Average Recorded Investment | 583 | 570 |
With no related allowance recorded, Interest Income Recognized | 16 | 9 |
With an allowance recorded, Interest Income Recognized | 11 | 9 |
With no related allowance recorded, Cash Basis Interest Recognized | 0 | 0 |
With an allowance recorded, Cash Basis Interest Recognized | 0 | 0 |
Residential Construction Land [Member] | ||
Information Related to Impaired Loans by Class of Loans | ||
With no related allowance recorded, Unpaid Principal Balance | 0 | |
With no related allowance recorded, Recorded Investment | 0 | |
With no related allowance recorded, allowance For Loan Losses Allocated | 0 | |
With no related allowance recorded, Average Recorded Investment | 13 | |
With no related allowance recorded, Interest Income Recognized | 0 | |
With no related allowance recorded, Cash Basis Interest Recognized | 0 | |
Home Equity [Member] | ||
Information Related to Impaired Loans by Class of Loans | ||
With no related allowance recorded, Unpaid Principal Balance | 81 | 8 |
With an allowance recorded, Unpaid Principal Balance | 17 | 0 |
With no related allowance recorded, Recorded Investment | 80 | 7 |
With an allowance recorded, Recorded Investment | 17 | 0 |
With no related allowance recorded, allowance For Loan Losses Allocated | 0 | 0 |
With an allowance recorded, allowance For Loan Losses Allocated | 17 | 0 |
With no related allowance recorded, Average Recorded Investment | 58 | 8 |
With an allowance recorded, Average Recorded Investment | 18 | 20 |
With no related allowance recorded, Interest Income Recognized | 4 | 0 |
With an allowance recorded, Interest Income Recognized | 0 | 0 |
With no related allowance recorded, Cash Basis Interest Recognized | 0 | 0 |
With an allowance recorded, Cash Basis Interest Recognized | 0 | $ 0 |
Consumer And Other [Member] | ||
Information Related to Impaired Loans by Class of Loans | ||
With an allowance recorded, Unpaid Principal Balance | 0 | |
With an allowance recorded, Recorded Investment | 0 | |
Subtotal | 0 | |
With an allowance recorded, Average Recorded Investment | 51 | |
With an allowance recorded, Interest Income Recognized | 0 | |
With an allowance recorded, Cash Basis Interest Recognized | $ 0 |
Allowance for Loan Losses (De67
Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investment in nonaccrual loans and loans past due | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 0 | $ 0 |
Nonaccrual | 2,349 | 4,423 |
Commercial And Other [Member] | ||
Investment in nonaccrual loans and loans past due | ||
Nonaccrual | 0 | 27 |
Commercial: Real Estate [Member] | ||
Investment in nonaccrual loans and loans past due | ||
Nonaccrual | 1,396 | 879 |
Commercial Construction [Member] | ||
Investment in nonaccrual loans and loans past due | ||
Nonaccrual | 41 | 0 |
Commercial: Land [Member] | ||
Investment in nonaccrual loans and loans past due | ||
Nonaccrual | 299 | 1,577 |
Mortgage [Member] | ||
Investment in nonaccrual loans and loans past due | ||
Nonaccrual | 590 | 1,933 |
Home Equity [Member] | ||
Investment in nonaccrual loans and loans past due | ||
Nonaccrual | $ 23 | $ 7 |
Allowance for Loan Losses (De68
Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Aging of recorded investment in past due loans | ||
Document Period End Date | Dec. 31, 2015 | |
Total Past Due | $ 2,124 | $ 3,813 |
Loans Not Past Due | 342,757 | 305,636 |
Total ending loan balance | 344,881 | 309,449 |
Commercial And Other [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 27 |
Loans Not Past Due | 18,117 | 17,388 |
Total ending loan balance | 18,117 | 17,415 |
Commercial: Real Estate [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 1,384 | 894 |
Loans Not Past Due | 90,916 | 74,369 |
Total ending loan balance | 92,300 | 75,263 |
Commercial: Five or more family [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 20 | 0 |
Loans Not Past Due | 22,672 | 16,486 |
Total ending loan balance | 22,692 | 16,486 |
Commercial: Construction [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 41 | 0 |
Loans Not Past Due | 11,041 | 2,322 |
Total ending loan balance | 11,082 | 2,322 |
Commercial: Land [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 1,216 |
Loans Not Past Due | 10,639 | 5,610 |
Total ending loan balance | 10,639 | 6,826 |
Mortgage [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 671 | 1,577 |
Loans Not Past Due | 39,807 | 37,740 |
Total ending loan balance | 40,478 | 39,317 |
Mortgage Warehouse [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Loans Not Past Due | 128,902 | 132,636 |
Total ending loan balance | 128,902 | 132,636 |
Residential Construction: Construction [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Loans Not Past Due | 2,423 | 1,472 |
Total ending loan balance | 2,423 | 1,472 |
Residential construction: Land [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Loans Not Past Due | 878 | 192 |
Total ending loan balance | 878 | 192 |
Home Equity [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 8 | 80 |
Loans Not Past Due | 13,982 | 13,115 |
Total ending loan balance | 13,990 | 13,195 |
Consumer and Other [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 19 |
Loans Not Past Due | 3,380 | 4,306 |
Total ending loan balance | 3,380 | 4,325 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 1,519 | 545 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial And Other [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial: Real Estate [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 1,282 | 72 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial: Five or more family [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 20 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial: Construction [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 41 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial: Land [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Mortgage [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 176 | 454 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Mortgage Warehouse [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Construction: Construction [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential construction: Land [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Home Equity [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer and Other [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 19 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 276 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial And Other [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial: Real Estate [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial: Five or more family [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial: Construction [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial: Land [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Mortgage [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 203 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Mortgage Warehouse [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Construction: Construction [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential construction: Land [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Home Equity [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 73 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer and Other [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 605 | 2,992 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial And Other [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 27 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial: Real Estate [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 102 | 822 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial: Five or more family [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial: Construction [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial: Land [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 1,216 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Mortgage [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 495 | 920 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Mortgage Warehouse [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Construction: Construction [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential construction: Land [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Home Equity [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | 8 | 7 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer and Other [Member] | ||
Aging of recorded investment in past due loans | ||
Total Past Due | $ 0 | $ 0 |
Allowance for Loan Losses (De69
Allowance for Loan Losses (Details 6) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)Loanloan | Dec. 31, 2014USD ($)Loanloan | |
Loans by class modified as troubled debt restructurings | ||
Number of Loans | Loan | 5 | 9 |
Pre-Modification Outstanding Recorded Investment | $ 1,286 | $ 6,127 |
Post-Modification Outstanding Recorded Investment | $ 1,299 | $ 6,529 |
Commercial Real Estate And Multi Family Portfolio Segment [Member] | ||
Loans by class modified as troubled debt restructurings | ||
Number of Loans | loan | 0 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 3,507 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 3,750 |
Commercial Real Estate [Member] | ||
Loans by class modified as troubled debt restructurings | ||
Number of Loans | loan | 4 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 1,213 | $ 2,106 |
Post-Modification Outstanding Recorded Investment | $ 1,221 | $ 2,106 |
Home Equity Loan [Member] | ||
Loans by class modified as troubled debt restructurings | ||
Number of Loans | loan | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 73 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 78 | $ 0 |
Allowance for Loan Losses (De70
Allowance for Loan Losses (Details 7) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Performing in accordance with modified repayment terms | $ 1,720 | $ 5,873 |
Nonperforming | 0 | 762 |
Total | 1,720 | 6,635 |
Specific reserve | $ 0 | $ 23 |
Allowance for Loan Losses (De71
Allowance for Loan Losses (Details 8) | 12 Months Ended | |
Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Pre Modification Outstanding Recorded Investment | $ 1,286,000 | $ 6,127,000 |
Financing Receivable Modifications Subsequent Default Charges Offs | 0 | 0 |
Financing Receivable Modifications Subsequent Default Of Allowance For Credit Losses | $ 0 | $ 0 |
Loans by class modified as troubled debt restructurings, payment default | ||
Number of Loans, Subsequent default | loan | 0 | 0 |
Recorded Investment, Subsequent default | $ 0 | $ 0 |
Commercial: Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Pre Modification Outstanding Recorded Investment | 1,213,000 | 2,106,000 |
Commercial Real Estate And Multi Family Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Pre Modification Outstanding Recorded Investment | 0 | 3,507,000 |
Mortgage [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Pre Modification Outstanding Recorded Investment | $ 0 | $ 514,000 |
Allowance for Loan Losses (De72
Allowance for Loan Losses (Details 9) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Pass [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | $ 337,312 | $ 293,815 |
Pass [Member] | Commercial And Other [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 17,807 | 17,397 |
Pass [Member] | Commercial: Real Estate [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 86,548 | 67,597 |
Pass [Member] | Commercial: Five or more family [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 22,692 | 12,787 |
Pass [Member] | Commercial: Construction [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 11,041 | 2,322 |
Pass [Member] | Commercial: Land [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 10,258 | 5,147 |
Pass [Member] | Mortgage [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 39,490 | 36,827 |
Pass [Member] | Mortgage Warehouse [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 128,902 | 132,636 |
Pass [Member] | Residential Portfolio Segment [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 2,423 | 1,472 |
Pass [Member] | Residential construction: Land [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 878 | 192 |
Pass [Member] | Home Equity [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 13,893 | 13,113 |
Pass [Member] | Consumer and Other [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 3,380 | 4,325 |
Special Mention [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 3,488 | 1,958 |
Special Mention [Member] | Commercial And Other [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 310 | 0 |
Special Mention [Member] | Commercial: Real Estate [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 3,075 | 1,663 |
Special Mention [Member] | Commercial: Five or more family [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 0 |
Special Mention [Member] | Commercial: Construction [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 0 |
Special Mention [Member] | Commercial: Land [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 82 | 102 |
Special Mention [Member] | Mortgage [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 21 | 120 |
Special Mention [Member] | Mortgage Warehouse [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 0 |
Special Mention [Member] | Residential Portfolio Segment [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 0 |
Special Mention [Member] | Residential construction: Land [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 0 |
Special Mention [Member] | Home Equity [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 73 |
Special Mention [Member] | Consumer and Other [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 0 |
Substandard [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 4,081 | 13,656 |
Substandard [Member] | Commercial And Other [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 18 |
Substandard [Member] | Commercial: Real Estate [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 2,677 | 5,983 |
Substandard [Member] | Commercial: Five or more family [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 3,699 |
Substandard [Member] | Commercial: Construction [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 41 | 0 |
Substandard [Member] | Commercial: Land [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 299 | 1,577 |
Substandard [Member] | Mortgage [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 967 | 2,370 |
Substandard [Member] | Mortgage Warehouse [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 0 |
Substandard [Member] | Residential Portfolio Segment [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 0 |
Substandard [Member] | Residential construction: Land [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 0 |
Substandard [Member] | Home Equity [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 97 | 9 |
Substandard [Member] | Consumer and Other [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 0 |
Doubtful [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 20 |
Doubtful [Member] | Commercial And Other [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 0 |
Doubtful [Member] | Commercial: Real Estate [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 20 |
Doubtful [Member] | Commercial: Five or more family [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 0 |
Doubtful [Member] | Commercial: Construction [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 0 |
Doubtful [Member] | Commercial: Land [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 0 |
Doubtful [Member] | Mortgage [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 0 |
Doubtful [Member] | Mortgage Warehouse [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 0 |
Doubtful [Member] | Residential Portfolio Segment [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 0 |
Doubtful [Member] | Residential construction: Land [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 0 |
Doubtful [Member] | Home Equity [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | 0 | 0 |
Doubtful [Member] | Consumer and Other [Member] | ||
Recent analysis performed for risk category of loans | ||
Financing Receivable, Net | $ 0 | $ 0 |
Allowance for Loan Losses (De73
Allowance for Loan Losses (Details 10) | 12 Months Ended | |
Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loan | 0 | 0 |
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 0 | $ 0 |
Purchased Loans Allowance Increase | 0 | 0 |
Outstanding balance and carrying amount of purchased loans | ||
Outstanding balance | 106,000 | 760,000 |
Carrying amount, net of allowance of $0 | 106,000 | 731,000 |
Purchased Loans Allowance Reversal | 0 | 0 |
Commercial And Other [Member] | ||
Outstanding balance and carrying amount of purchased loans | ||
Outstanding balance | 0 | 27,000 |
Commercial: Real Estate [Member] | ||
Outstanding balance and carrying amount of purchased loans | ||
Outstanding balance | 0 | 621,000 |
Mortgage [Member] | ||
Outstanding balance and carrying amount of purchased loans | ||
Outstanding balance | $ 106,000 | $ 112,000 |
Allowance for Loan Losses (De74
Allowance for Loan Losses (Details 11) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accretable yield, or income expected to be collected on purchased loans | ||
Beginning balance | $ 18 | $ 73 |
Accretion of income | (18) | (55) |
Ending balance | $ 0 | $ 18 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Interest Expense | $ 2,669 | $ 3,065 |
Unrealized Gain On Loans Held For Sale | $ 110 | $ 24 |
Impaired loans [Member] | Commercial: Real Estate [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Average of Inputs | 8.00% | 34.00% |
Impaired loans [Member] | Commercial: Real Estate [Member] | Minimum [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Range of Inputs | 8.00% | 20.00% |
Impaired loans [Member] | Commercial: Real Estate [Member] | Maximum [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Range of Inputs | 8.00% | 90.00% |
Impaired loans [Member] | Commercial: Land [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Average of Inputs | 10.00% | 18.00% |
Impaired loans [Member] | Commercial: Land [Member] | Minimum [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Range of Inputs | 10.00% | 10.00% |
Impaired loans [Member] | Commercial: Land [Member] | Maximum [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Range of Inputs | 10.00% | 20.00% |
Impaired loans [Member] | Commercial Mortgage [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Average of Inputs | 10.00% | 7.00% |
Impaired loans [Member] | Commercial Mortgage [Member] | Minimum [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Range of Inputs | 0.00% | 0.00% |
Impaired loans [Member] | Commercial Mortgage [Member] | Maximum [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Range of Inputs | 20.00% | 20.00% |
Other real estate owned, net [Member] | Commercial: Real Estate [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Average of Inputs | 10.00% | |
Other real estate owned, net [Member] | Commercial: Real Estate [Member] | Minimum [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Range of Inputs | 0.00% | 10.00% |
Other real estate owned, net [Member] | Commercial: Real Estate [Member] | Maximum [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Range of Inputs | 0.00% | 10.00% |
Other real estate owned, net [Member] | Commercial: Land [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Average of Inputs | 18.00% | |
Other real estate owned, net [Member] | Commercial: Land [Member] | Minimum [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Range of Inputs | 0.00% | 0.00% |
Other real estate owned, net [Member] | Commercial: Land [Member] | Maximum [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Range of Inputs | 0.00% | 37.00% |
Other real estate owned, net [Member] | Commercial Mortgage [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Average of Inputs | 30.00% | |
Other real estate owned, net [Member] | Commercial Mortgage [Member] | Minimum [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Range of Inputs | 30.00% | 0.00% |
Other real estate owned, net [Member] | Commercial Mortgage [Member] | Maximum [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Range of Inputs | 30.00% | 0.00% |
Other real estate owned, net [Member] | Residential Construction Land [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Average of Inputs | 20.00% | |
Other real estate owned, net [Member] | Residential Construction Land [Member] | Minimum [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Range of Inputs | 0.00% | 20.00% |
Other real estate owned, net [Member] | Residential Construction Land [Member] | Maximum [Member] | ||
Valuation methodology and unobservable inputs for impaired loans and other real estate owned | ||
Fair Value, Range of Inputs | 0.00% | 20.00% |
Estimate of Fair Value Measurement [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loans Held-for-sale, Fair Value Disclosure | $ 3,581 | $ 763 |
Fair Value (Details 1)
Fair Value (Details 1) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Financial Assets | ||
Securities available-for-sale | $ 122,243,000 | $ 155,223,000 |
Financial Liabilities | ||
Derivatives – interest rate swaps | (1,265,000) | (1,156,000) |
U.S. Federal Agency [Member] | ||
Financial Assets | ||
Securities available-for-sale | 9,372,000 | 7,395,000 |
State and Municipal [Member] | ||
Financial Assets | ||
Securities available-for-sale | 52,400,000 | 56,847,000 |
Mortgage-backed Securities - Residential [Member] | ||
Financial Assets | ||
Securities available-for-sale | 17,696,000 | 27,488,000 |
Corporate Debt Securities [Member] | ||
Financial Assets | ||
Securities available-for-sale | 939,000 | 963,000 |
Fair Value Measurements Recurring [Member] | ||
Financial Assets | ||
Securities available-for-sale | 122,243,000 | 155,223,000 |
Loans held for sale | 3,581,000 | 763,000 |
Derivatives – residential mortgage loan commitments | 39,000 | 53,000 |
Financial Liabilities | ||
Derivatives – interest rate swaps | (1,265,000) | (1,156,000) |
Fair Value Measurements Recurring [Member] | U.S. Federal Agency [Member] | ||
Financial Assets | ||
Securities available-for-sale | 9,372,000 | 7,395,000 |
Fair Value Measurements Recurring [Member] | State and Municipal [Member] | ||
Financial Assets | ||
Securities available-for-sale | 52,400,000 | 56,847,000 |
Fair Value Measurements Recurring [Member] | Mortgage-backed Securities - Residential [Member] | ||
Financial Assets | ||
Securities available-for-sale | 17,696,000 | 27,488,000 |
Fair Value Measurements Recurring [Member] | Corporate Debt Securities [Member] | ||
Financial Assets | ||
Securities available-for-sale | 939,000 | 963,000 |
Fair Value Measurements Recurring [Member] | Government Agency Sponsored Collateralized Mortgage Obligations [Member] | ||
Financial Assets | ||
Securities available-for-sale | 41,836,000 | 62,530,000 |
Fair Value Measurements Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial Assets | ||
Securities available-for-sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Derivatives – residential mortgage loan commitments | 0 | 0 |
Financial Liabilities | ||
Derivatives – interest rate swaps | 0 | 0 |
Fair Value Measurements Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Federal Agency [Member] | ||
Financial Assets | ||
Securities available-for-sale | 0 | 0 |
Fair Value Measurements Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | State and Municipal [Member] | ||
Financial Assets | ||
Securities available-for-sale | 0 | 0 |
Fair Value Measurements Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mortgage-backed Securities - Residential [Member] | ||
Financial Assets | ||
Securities available-for-sale | 0 | 0 |
Fair Value Measurements Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Debt Securities [Member] | ||
Financial Assets | ||
Securities available-for-sale | 0 | 0 |
Fair Value Measurements Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Government Agency Sponsored Collateralized Mortgage Obligations [Member] | ||
Financial Assets | ||
Securities available-for-sale | 0 | 0 |
Fair Value Measurements Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Financial Assets | ||
Securities available-for-sale | 122,243,000 | 155,223,000 |
Loans held for sale | 3,581,000 | 763,000 |
Derivatives – residential mortgage loan commitments | 39,000 | 53,000 |
Financial Liabilities | ||
Derivatives – interest rate swaps | (1,265,000) | (1,156,000) |
Fair Value Measurements Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Federal Agency [Member] | ||
Financial Assets | ||
Securities available-for-sale | 9,372,000 | 7,395,000 |
Fair Value Measurements Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | State and Municipal [Member] | ||
Financial Assets | ||
Securities available-for-sale | 52,400,000 | 56,847,000 |
Fair Value Measurements Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage-backed Securities - Residential [Member] | ||
Financial Assets | ||
Securities available-for-sale | 17,696,000 | 27,488,000 |
Fair Value Measurements Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Debt Securities [Member] | ||
Financial Assets | ||
Securities available-for-sale | 939,000 | 963,000 |
Fair Value Measurements Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Government Agency Sponsored Collateralized Mortgage Obligations [Member] | ||
Financial Assets | ||
Securities available-for-sale | 41,836,000 | 62,530,000 |
Fair Value Measurements Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Financial Assets | ||
Securities available-for-sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Derivatives – residential mortgage loan commitments | 0 | 0 |
Financial Liabilities | ||
Derivatives – interest rate swaps | 0 | 0 |
Fair Value Measurements Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Federal Agency [Member] | ||
Financial Assets | ||
Securities available-for-sale | 0 | 0 |
Fair Value Measurements Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | State and Municipal [Member] | ||
Financial Assets | ||
Securities available-for-sale | 0 | 0 |
Fair Value Measurements Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage-backed Securities - Residential [Member] | ||
Financial Assets | ||
Securities available-for-sale | 0 | 0 |
Fair Value Measurements Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate Debt Securities [Member] | ||
Financial Assets | ||
Securities available-for-sale | 0 | 0 |
Fair Value Measurements Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Government Agency Sponsored Collateralized Mortgage Obligations [Member] | ||
Financial Assets | ||
Securities available-for-sale | $ 0 | $ 0 |
Fair Value (Details 2)
Fair Value (Details 2) - Fair Value Measurements Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Impaired loans [Member] | Commercial: Real Estate [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | $ 590 | $ 488 |
Impaired loans [Member] | Commercial: Land [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 79 | 971 |
Impaired loans [Member] | Commercial Mortgage [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 252 | 981 |
Impaired loans [Member] | Home Equity Loan [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 0 | |
Other real estate owned, net [Member] | Commercial: Real Estate [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 67 | |
Other real estate owned, net [Member] | Commercial: Land [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 512 | |
Other real estate owned, net [Member] | Commercial Mortgage [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 36 | |
Other real estate owned, net [Member] | Residential Construction Land [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 45 | |
Mortgage servicing rights [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 145 | 173 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Impaired loans [Member] | Commercial: Real Estate [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Impaired loans [Member] | Commercial: Land [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Impaired loans [Member] | Commercial Mortgage [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Impaired loans [Member] | Home Equity Loan [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other real estate owned, net [Member] | Commercial: Real Estate [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other real estate owned, net [Member] | Commercial: Land [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other real estate owned, net [Member] | Commercial Mortgage [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other real estate owned, net [Member] | Residential Construction Land [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mortgage servicing rights [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Impaired loans [Member] | Commercial: Real Estate [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Impaired loans [Member] | Commercial: Land [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Impaired loans [Member] | Commercial Mortgage [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Impaired loans [Member] | Home Equity Loan [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Other real estate owned, net [Member] | Commercial: Real Estate [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Other real estate owned, net [Member] | Commercial: Land [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Other real estate owned, net [Member] | Commercial Mortgage [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Other real estate owned, net [Member] | Residential Construction Land [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Mortgage servicing rights [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 145 | 173 |
Significant Unobservable Inputs (Level 3) [Member] | Impaired loans [Member] | Commercial: Real Estate [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 590 | 488 |
Significant Unobservable Inputs (Level 3) [Member] | Impaired loans [Member] | Commercial: Land [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 79 | 971 |
Significant Unobservable Inputs (Level 3) [Member] | Impaired loans [Member] | Commercial Mortgage [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 252 | 981 |
Significant Unobservable Inputs (Level 3) [Member] | Impaired loans [Member] | Home Equity Loan [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Other real estate owned, net [Member] | Commercial: Real Estate [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 67 | |
Significant Unobservable Inputs (Level 3) [Member] | Other real estate owned, net [Member] | Commercial: Land [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 512 | |
Significant Unobservable Inputs (Level 3) [Member] | Other real estate owned, net [Member] | Commercial Mortgage [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 36 | |
Significant Unobservable Inputs (Level 3) [Member] | Other real estate owned, net [Member] | Residential Construction Land [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | 45 | |
Significant Unobservable Inputs (Level 3) [Member] | Mortgage servicing rights [Member] | ||
Assets measured at fair value on a non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | $ 0 | $ 0 |
Fair Value (Details 3)
Fair Value (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding for loans held for sale | ||
Gain (Loss) | $ 110 | $ 24 |
Contractual Principal | 3,471 | 739 |
Estimate of Fair Value Measurement [Member] | ||
Difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding for loans held for sale | ||
Loans held for sale | $ 3,581 | $ 763 |
Fair Value (Details 4)
Fair Value (Details 4) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Amount of gains and losses from fair value changes | ||
Interest Expense Earnings | $ (2,669) | $ (3,065) |
Loans held for sale [Member] | ||
Amount of gains and losses from fair value changes | ||
Other Gains and Losses | 45 | (6) |
Interest Income | 41 | 30 |
Interest Expense Earnings | 0 | 0 |
Total Changes in Fair Values Included in Current Period Earnings | $ 86 | $ 24 |
Fair Value (Details 5)
Fair Value (Details 5) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets | ||
Securities available-for-sale | $ 122,243 | $ 155,223 |
Loans held for sale, at fair value | 3,581 | 763 |
Financial liabilities | ||
Subordinated Debentures | (5,155) | (5,155) |
Derivatives – interest rate swaps | (1,265) | (1,156) |
Carrying Value [Member] | ||
Financial assets | ||
Cash and due from financial institutions | 18,459 | 8,698 |
Interest-earning time deposits at other financial institutions | 13,599 | 6,615 |
Securities available-for-sale | 122,243 | 155,223 |
Federal Home Loan Bank stock | 4,029 | 4,275 |
Loans held for sale | 3,581 | 763 |
Loans, net | 341,552 | 306,131 |
Accrued interest receivable | 1,519 | 1,485 |
Financial liabilities | ||
Deposits | (390,959) | (340,768) |
Federal Home Loan Bank advances | (55,000) | (84,919) |
Subordinated Debentures | (5,155) | (5,155) |
Accrued interest payable | (175) | (155) |
Derivatives – interest rate swaps | (1,265) | (1,156) |
Fair Value [Member] | ||
Financial assets | ||
Loans held for sale | 3,581 | 763 |
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial assets | ||
Cash and due from financial institutions | 18,459 | 8,698 |
Interest-earning time deposits at other financial institutions | 0 | 0 |
Securities available-for-sale | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities | ||
Deposits | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated Debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Derivatives – interest rate swaps | 0 | 0 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Financial assets | ||
Cash and due from financial institutions | 0 | 0 |
Interest-earning time deposits at other financial institutions | 13,641 | 6,636 |
Securities available-for-sale | 122,243 | 155,223 |
Federal Home Loan Bank stock | 4,029 | 4,275 |
Loans held for sale, at fair value | 3,581 | 763 |
Loans, net | 0 | 0 |
Accrued interest receivable | 760 | 857 |
Financial liabilities | ||
Deposits | (390,914) | (340,830) |
Federal Home Loan Bank advances | (55,197) | (85,078) |
Subordinated Debentures | 0 | 0 |
Accrued interest payable | (172) | (152) |
Derivatives – interest rate swaps | (1,265) | (1,156) |
Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Financial assets | ||
Cash and due from financial institutions | 0 | 0 |
Interest-earning time deposits at other financial institutions | 0 | 0 |
Securities available-for-sale | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Loans, net | 344,488 | 309,903 |
Accrued interest receivable | 759 | 628 |
Financial liabilities | ||
Deposits | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated Debentures | (5,139) | (5,149) |
Accrued interest payable | (3) | (3) |
Derivatives – interest rate swaps | $ 0 | $ 0 |
Fair Value (Details Textual)
Fair Value (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value (Textual) [Abstract] | ||
Outstanding balance | $ 36,000 | $ 624,000 |
Impairment of Real Estate | 10,000 | 176,000 |
Mortgage Servicing Rights At Fair Value | 145,000 | 173,000 |
Mortgage Servicing Rights Outstanding Amount | 231,000 | 264,000 |
Mortgage Servicing Rights, Valuation Allowance | 86,000 | 91,000 |
Mortgage Servicing Rights Provision | (5,000) | (15,000) |
Fair Value (Additional Textual) [Abstract] | ||
Impaired loans, collateral dependent | 1,900,000 | 3,300,000 |
Valuation allowance, impaired loans | 945,000 | 886,000 |
Additional provision for loan losses impaired loan | $ 764,000 | $ 87,000 |
Mortgage servicing rights [Member] | ||
Fair Value (Textual) [Abstract] | ||
Discount rate | 10.03% | 10.00% |
Default rate approximately | 0.50% | 0.50% |
Maximum [Member] | Mortgage servicing rights [Member] | ||
Fair Value (Textual) [Abstract] | ||
Prepayment rate | 22.14% | 23.94% |
Minimum [Member] | Mortgage servicing rights [Member] | ||
Fair Value (Textual) [Abstract] | ||
Prepayment rate | 6.90% | 8.76% |
Loan Servicing (Details)
Loan Servicing (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Servicing Assets at Fair Value [Line Items] | ||
Mortgage loan portfolios serviced | $ 58,559 | $ 61,277 |
FHLMC [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Mortgage loan portfolios serviced | 56,968 | 59,938 |
FHLB [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Mortgage loan portfolios serviced | $ 1,591 | $ 1,339 |
Loan Servicing (Details 1)
Loan Servicing (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing rights: | ||
Beginning of year | $ 351 | $ 368 |
Additions | 45 | 33 |
Amortized to expense | (67) | (65) |
Change in valuation allowance | 5 | 15 |
End of year | 334 | 351 |
Valuation allowance: | ||
Beginning of year | 91 | 106 |
Additions expensed | 17 | 5 |
Reductions credited to expense | (22) | (20) |
Direct write-downs | 0 | 0 |
End of year | $ 86 | $ 91 |
Loan Servicing (Details Textual
Loan Servicing (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Servicing Assets at Fair Value [Line Items] | |||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Loan servicing (Textual) [Abstract] | |||
Custodial escrow balances | $ 437,000 | $ 358,000 | |
Valuation allowance | $ 86,000 | $ 91,000 | $ 106,000 |
Weighted average amortization period | 4 years 1 month 6 days | ||
Mortgage Warehouse [Member] | |||
Servicing Assets at Fair Value [Line Items] | |||
Participated Loans, Outstanding Balance | $ 101,000,000 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Premises and equipment | |||
Premises and equipment, gross | $ 18,073 | $ 18,035 | $ 18,073 |
Less: Accumulated depreciation | (9,405) | (9,427) | (9,405) |
Premises and equipment, net | 8,668 | 8,608 | 8,668 |
Depreciation expense | 572 | 547 | |
Transfer from Fixed Assets to Other Assets | 65 | ||
Transfer from Fixed Assets to Other Assets | 325 | 0 | 479 |
Land [Member] | |||
Premises and equipment | |||
Premises and equipment, gross | 2,355 | 2,355 | 2,355 |
Buildings [Member] | |||
Premises and equipment | |||
Premises and equipment, gross | 10,076 | 10,205 | 10,076 |
Furniture, Fixtures and Equipment [Member] | |||
Premises and equipment | |||
Premises and equipment, gross | 5,580 | 5,430 | 5,580 |
Leasehold Improvements [Member] | |||
Premises and equipment | |||
Premises and equipment, gross | 45 | 45 | 45 |
Construction in Progress [Member] | |||
Premises and equipment | |||
Premises and equipment, gross | $ 17 | $ 0 | $ 17 |
Premises and Equipment - Rent C
Premises and Equipment - Rent Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Rent expense | $ 14 | $ 14 |
2,016 | 14 | |
2,017 | $ 8 |
Goodwill and Intangible Asset87
Goodwill and Intangible Assets (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Estimated amortization expense | |
2,014 | $ 41 |
2,015 | 33 |
2,016 | 26 |
2,017 | 21 |
2,018 | $ 18 |
Goodwill and Intangible Asset88
Goodwill and Intangible Assets (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets (Textual) [Abstract] | ||
Goodwill | $ 8,431,000 | $ 8,431,000 |
Intangible assets, net carrying value | 153,000 | 204,000 |
Intangible assets, gross | 1,534,000 | 1,534,000 |
Intangible assets, accumulated amortization | 1,381,000 | 1,330,000 |
Amortization of intangible assets | $ 51,000 | $ 70,000 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Banking and Thrift [Abstract] | ||
Noninterest-bearing Deposit Liabilities | $ 62,020 | $ 53,030 |
Interest-bearing Domestic Deposit, Demand | 106,434 | 58,892 |
Deposits, Money Market Deposits | 57,999 | 57,069 |
Deposits, Savings Deposits | 65,747 | 62,330 |
Time Deposits, at or Above FDIC Insurance Limit | 2,799 | 4,148 |
Other Certificate and Time Deposits | 95,960 | 105,299 |
Total deposits | 390,959 | $ 340,768 |
Scheduled maturities of time deposits | ||
2,014 | 38,264 | |
2,015 | 31,266 | |
2,016 | 9,614 | |
2,017 | 11,771 | |
2,018 | 3,250 | |
Thereafter | 4,594 | |
Total | $ 98,759 |
Deposits (Details Textual)
Deposits (Details Textual) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits (Textual) [Abstract] | ||
Time deposits of $100 thousand or more | $ 43.6 | $ 48.8 |
Federal Home Loan Bank Advanc91
Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Advance type, balances and interest rate ranges | ||
Total advances | $ (55,000) | $ (84,919) |
Fixed Rate Bullet [Member] | ||
Advance type, balances and interest rate ranges | ||
Total advances | $ (45,000) | $ (60,000) |
Fixed Rate Bullet [Member] | Weighted Average [Member] | ||
Advance type, balances and interest rate ranges | ||
Interest rate range | 1.00% | 1.04% |
Fixed Rate Bullet [Member] | Minimum [Member] | ||
Advance type, balances and interest rate ranges | ||
Interest rate range | 0.52% | 0.30% |
Maturity Date Rage | January 2,016 | January 2,015 |
Fixed Rate Bullet [Member] | Maximum [Member] | ||
Advance type, balances and interest rate ranges | ||
Interest rate range | 1.86% | 3.22% |
Maturity Date Rage | April 2,019 | April 2,019 |
Variable Rate [Member] | ||
Advance type, balances and interest rate ranges | ||
Total advances | $ (9,919) | |
Variable Rate [Member] | Weighted Average [Member] | ||
Advance type, balances and interest rate ranges | ||
Interest rate range | 0.43% | |
Variable Rate [Member] | Minimum [Member] | ||
Advance type, balances and interest rate ranges | ||
Interest rate range | 0.43% | |
Maturity Date Rage | January 2,015 | |
Variable Rate [Member] | Maximum [Member] | ||
Advance type, balances and interest rate ranges | ||
Interest rate range | 0.43% | |
Maturity Date Rage | January 2,015 | |
LIBOR Adjustable [Member] | ||
Advance type, balances and interest rate ranges | ||
Total advances | $ (10,000) | $ (15,000) |
LIBOR Adjustable [Member] | Weighted Average [Member] | ||
Advance type, balances and interest rate ranges | ||
Interest rate range | 0.57% | 0.49% |
LIBOR Adjustable [Member] | Minimum [Member] | ||
Advance type, balances and interest rate ranges | ||
Interest rate range | 0.565% | 0.467% |
Maturity Date Rage | July 2,016 | September 2,015 |
LIBOR Adjustable [Member] | Maximum [Member] | ||
Advance type, balances and interest rate ranges | ||
Interest rate range | 0.57% | 0.50% |
Maturity Date Rage | July 2,016 | July 2,016 |
Federal Home Loan Bank Advanc92
Federal Home Loan Bank Advances (Details 1) $ in Thousands | Dec. 31, 2015USD ($) |
Required payments over the next five years | |
2,014 | $ 30,000 |
2,015 | 10,000 |
2,016 | 10,000 |
2,017 | $ 5,000 |
Federal Home Loan Bank Advanc93
Federal Home Loan Bank Advances (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Borrowed amount for ESOP purchase | $ 100,600 | $ 103,600 |
Federal Home Loan Bank Advances (Textual) [Abstract] | ||
Authorized to borrow from Federal Home Loan Bank | 99,500 | 85,900 |
Bank's indebtedness to the FHLB | $ 55,000 | 84,919 |
LIBOR Adjustable interest rate, reset period | 3-Month LIBOR | |
U.S. Federal Agency [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Borrowed amount for ESOP purchase | $ 39,400 | $ 35,100 |
Other Borrowings (Details)
Other Borrowings (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
First Tennessee Bank National Association [Member] | ||
Extinguishment of Debt [Line Items] | ||
Borrowed federal funds | $ 15,000,000 | $ 15,000,000 |
Outstanding balance on accommodation | 0 | 0 |
Zions First National Bank [Member] | ||
Extinguishment of Debt [Line Items] | ||
Borrowed federal funds | 9,000,000 | 9,000,000 |
Outstanding balance on accommodation | $ 0 | $ 0 |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Preferred securities | 0 | 0 |
Liquidation amount per security (in usd per share) | $ 1,000 | |
Subordinated debentures | $ 5,155,000 | $ 5,155,000 |
Common stock held in trust | $ 155,000 | $ 155,000 |
Document Period End Date | Dec. 31, 2015 | |
Preferred stock, redemption premium | $ 1,000 | |
Principal amount, plus accrued and unpaid interest | 100.00% | |
Subordinated debentures, maturity date | Jun. 26, 2033 | |
Right of defer interest payments | up to 20 consecutive quarterly periods | |
Debt Instrument, Interest Rate Terms | 3-Month LIBOR plus 3.10% | |
Variable rate of interest | 3.10% | 3.10% |
Subordinated Borrowing, Interest Rate | 3.70% | 3.35% |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Preferred securities | 5,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($)Age | Dec. 31, 2014USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||
Age to participate in the plan | Age | 21 | |
Minimum requirement to enter the Plan | 1 year | |
Matching employer contributions percent | 25.00% | |
Matching employer contributions, participants contributions, percent | 6.00% | |
Employer basic and matching contributions | 5 years | |
Vested Employee contributions | 100.00% | |
Employer basic and matching contributions totaled | $ 72,000 | $ 63,000 |
Document Period End Date | Dec. 31, 2015 | |
Obligation under the plans | $ 2,400,000 | 2,300,000 |
Expense attributable to plan | 7,731,000 | 7,307,000 |
Bank's supplemental employee retirement plan | 15,000,000 | 14,600,000 |
Supplemental Employee Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expense attributable to plan | $ 185,000 | $ 231,000 |
Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Voluntary participant contributions rate | 1.00% | |
Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Voluntary participant contributions rate | 75.00% |
Employee Stock Ownership Plan97
Employee Stock Ownership Plan (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 04, 2012 |
Shares held by the ESOP at year end | |||
Allocated to participants | 119,036 | 104,518 | 59,650 |
Unearned | 359,773 | 382,259 | 449,717 |
Total ESOP shares | 478,809 | 486,777 | 509,367 |
Fair value of unearned shares | $ 5,469 | $ 4,774 |
Employee Stock Ownership Plan98
Employee Stock Ownership Plan (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Oct. 04, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Common stock shares issued | 270,768 | 22,486 | 22,486 |
Allocated converted shares from ESOP | 59,650 | 119,036 | 104,518 |
Unallocated converted shares from ESOP | 178,949 | ||
Total of ESOP | 509,367 | 478,809 | 486,777 |
Allocation of eligible common stock under the ESOP | 449,717 | 359,773 | 382,259 |
Period for allocated stock under ESOP | 20 years | ||
Borrowed amount for ESOP purchase | $ 3,600,000 | ||
Contributions to the ESOP | 166,000 | $ 164,000 | |
ESOP related expenses totaled | $ 310,000 | $ 251,000 | |
Former Participants [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Allocated converted shares from ESOP | 7,968 | 7,927 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Current expense (benefit) | ||
Federal | $ 906 | $ 542 |
State | 248 | 54 |
Total current expense | 1,154 | 596 |
Deferred expense | ||
Federal | 57 | 124 |
State | (82) | 308 |
Total deferred expense | (25) | 432 |
Change in valuation allowance related to realization of net state deferred tax asset | (68) | (335) |
Total | $ 1,061 | $ 693 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Deferred officer compensation | $ 995 | $ 963 |
Bad debt expense | 1,419 | 1,413 |
Indiana net operating loss carryforwards | 326 | 271 |
Tax credit carryforwards | 40 | 98 |
Write downs of other real estate owned | 160 | 260 |
Capital loss carryforwards | 128 | 135 |
Nonaccrual loan interest | 86 | 217 |
Net unrealized losses on interest rate swaps | 429 | 392 |
Other | 147 | 91 |
Deferred tax assets | 3,730 | 3,840 |
Deferred tax liabilities: | ||
Mortgage servicing rights | (136) | (144) |
FHLB stock dividends | (129) | (133) |
Deferred loan fees | (124) | (114) |
Prepaid expenses | (560) | (554) |
Depreciation | (281) | (339) |
Net unrealized gains on securities available-for-sale | (590) | (661) |
Amortization of other intangible assets | (61) | (74) |
Real estate investment trust dividends | (140) | (143) |
Deferred tax liabilities | (2,021) | (2,162) |
Valuation allowance | (682) | (614) |
Deferred tax assets, net | $ 1,027 | $ 1,064 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate | ||
Expected income tax expense at Federal tax rate | $ 1,917 | $ 1,735 |
State tax expense, net of federal benefit | 65 | 17 |
Increase (decrease) resulting from: | ||
Effect of tax exempt income (net) | (686) | (723) |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | (346) | (316) |
Other, net | (111) | 20 |
Total | $ 1,061 | $ 693 |
Effective tax rate | 18.80% | 13.60% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforward | $ 3,300,000 | |
Indiana enterprise zone credit carryforwards | $ 40,000 | |
Income Taxes (Textual) [Abstract] | ||
U.S. Federal income tax rate | 34.00% | |
Unrecognized tax positions | $ 0 | $ 0 |
Additional bad debt deductions | 2,659,000 | 2,659,000 |
Total deferred tax liability | $ 904,000 | $ 904,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loans to principal officers, directors, and their affiliates | ||
Beginning balance | $ 444 | $ 488 |
New loans | 177 | 45 |
Repayments | (259) | (89) |
Ending balance | $ 362 | $ 444 |
Related Party Transactions (104
Related Party Transactions (Details Textual) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Related Party Transactions (Textual) [Abstract] | ||
Deposits from principal officers, directors, and their affiliates | $ 1.9 | $ 1.7 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Shares | ||
Outstanding at beginning of year (in shares) | 598,972 | |
Granted (in shares) | 3,500 | 332,250 |
Exercised (in shares) | (15,308) | (4,472) |
Forfeited or expired (in shares) | (5,338) | |
Outstanding at end of year (in shares) | 581,826 | 598,972 |
Exercisable at end of year (in shares) | 256,262 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of year (in usd per share) | $ 9.30 | |
Granted (in usd per share) | 13.71 | |
Exercised (in usd per share) | 6.68 | |
Forfeited or expired (in usd per share) | 9.10 | |
Outstanding at end of year (in usd per share) | 9.40 | $ 9.30 |
Exercisable at end of period (in usd per share) | $ 7.77 | |
Additional Disclosures | ||
Outstanding, Weighted Average Remaining Contractual Term | 7 years 6 months | 8 years 5 months |
Granted, Weighted Average Remaining Contractual Term | 9 years 2 months | |
Exercisable at end of period, Weighted Average Remaining Contractual Term | 6 years 6 months | |
Outstanding, Aggregate Intrinsic Value, beginning balance | $ 1,911 | |
Outstanding, Aggregate Intrinsic Value, Ending balance | 3,377 | $ 1,911 |
Exercisable at end of period, Aggregate Intrinsic Value | $ 1,903 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.04% | 1.88% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years 6 months | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 19.24% | 19.03% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.17% | 1.39% |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 2.94 | $ 2.28 |
Stock-Based Compensation (De106
Stock-Based Compensation (Details 1) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Shares | ||
Nonvested at beginning of year (in shares) | 175,164 | |
Granted (in shares) | 0 | 126,800 |
Vested (in shares) | (49,114) | |
Forfeited (in shares) | (898) | |
Nonvested at end of year (in shares) | 125,152 | 175,164 |
Weighted-Average Grant-Date Fair Value | ||
Nonvested at beginning of year (in usd per share) | $ 10.14 | |
Granted (in usd per share) | 0 | |
Vested (in usd per share) | 9.09 | |
Forfeited (in usd per share) | 6.44 | |
Nonvested at end of year (in usd per share) | $ 10.58 | $ 10.14 |
Stock-Based Compensation (De107
Stock-Based Compensation (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Oct. 14, 2014 | Sep. 30, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost charged against income | $ 696,000 | $ 334,000 | ||
Options granted (in shares) | 3,500 | 332,250 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 126,800 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.04% | 1.88% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years 6 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 19.24% | 19.03% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.17% | 1.39% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 2.94 | $ 2.28 | ||
Options exercised during period (in shares) | 15,308 | 4,472 | ||
Options exercised, intrinsic value | $ 113,000 | $ 21,000 | ||
Cash received | 103,000 | 28,000 | ||
Tax benefits related to the exercise of options | 36,000 | $ 10,000 | ||
Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of shares to employees and directors | 14,471 | 417,543 | ||
Equity Incentive Plan [Member] | Unearned ESOP Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of shares to employees and directors | 298,245 | |||
Unrecognized compensation cost related to nonvested stock options granted under the Plan | $ 647,000 | |||
Equity Incentive Plan [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of shares to employees and directors | 119,298 | |||
Option awards, vesting periods | 5 years | |||
Option awards, annual percentage, vesting | 20.00% | |||
Unrecognized compensation cost related to nonvested stock options granted under the Plan | $ 1,200,000 | |||
Intrinsic value of nonvested shares | $ 578,000 | |||
2014 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of shares to employees and directors | 473,845 | |||
Option awards, vesting periods | 5 years | |||
Option awards, annual percentage, vesting | 20.00% | |||
2014 Equity Incentive Plan [Member] | Unearned ESOP Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of shares to employees and directors | 352,544 | |||
Option awards, vesting periods | 5 years | |||
Option awards, contractual terms | 10 years | |||
Option awards, annual percentage, vesting | 20.00% | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 6 months | |||
Available shares for future grants | 22,132 | |||
2014 Equity Incentive Plan [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of shares to employees and directors | 135,772 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 6 months | |||
Available shares for future grants | 9,870 |
Regulatory Capital Matters (Det
Regulatory Capital Matters (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Actual and required Bank capital amounts | ||
Total Capital to risk weighted assets Bank, Actual | $ 71,217 | $ 67,729 |
Total Capital to risk weighted assets Bank, Actual, Ratio | 18.00% | 19.20% |
Total Capital to risk weighted assets Bank, Required For Capital Adequacy Purposes | $ 31,700 | $ 28,277 |
Total Capital to risk weighted assets Bank, Required For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Total Capital to risk weighted assets Bank, Minimum Required To Be Well Capitalized Under Prompt Corrective Action Regulations | $ 39,625 | $ 35,346 |
Total Capital to risk weighted assets Bank, Minimum Required To Be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 10.00% | 10.00% |
Tier 1 (Core) Capital to risk weighted assets Bank, Actual | $ 67,583 | $ 64,134 |
Tier 1 (Core) Capital to risk weighted assets Bank, Actual, Ratio | 17.10% | 18.10% |
Tier 1 (Core) Capital to risk weighted assets Bank, Required For Capital Adequacy Purposes | $ 23,775 | $ 14,138 |
Tier 1 (Core) Capital to risk weighted assets Bank, Required For Capital Adequacy Purposes, Ratio | 6.00% | 4.00% |
Tier 1 (Core) Capital to risk weighted assets Bank, Minimum Required To Be Well Capitalized Under Prompt Corrective Action Regulations | $ 31,700 | $ 21,207 |
Tier 1 (Core) Capital to risk weighted assets Bank, Minimum Required To Be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 8.00% | 6.00% |
Tier One Common Capital | $ 67,583 | |
Tier One Common Capital to Risk Weighted Assets | 17.10% | |
Tier One Common Capital Required for Capital Adequacy | $ 17,831 | |
Tier One Common Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | |
Tier One Common Capital Required to be Well Capitalized | $ 25,757 | |
Tier One Common Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | |
Tier 1 (Core) Capital to average assets Bank | $ 67,583 | $ 64,134 |
Tier 1 (Core) Capital to average assets Bank, Ratio | 13.30% | 13.00% |
Tier 1 (Core) Capital to average assets Bank, Required For Capital Adequacy Purposes | $ 20,317 | $ 19,754 |
Tier 1 (Core) Capital to average assets Bank, Required For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Tier 1 (Core) Capital to average assets Bank, Required For Capital Adequacy Purposes, Minimum Required To Be Well Capitalized Under Prompt Corrective Action Regulations | $ 25,397 | $ 24,692 |
Tier 1 (Core) Capital to average assets Bank, Required For Capital Adequacy Purposes, Minimum Required To Be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 5.00% | 5.00% |
Regulatory Capital Matters (109
Regulatory Capital Matters (Details Textual) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Regulatory Capital Matters (Textual) [Abstract] | |
House finance | 65.00% |
Dividends | $ 2.2 |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
FHLB Advance (Sep 20, 2015) [Member] | ||
Interest-rate swaps designated as cash flow hedges | ||
Notional amount | $ 0 | $ 5,000 |
Unrealized losses | $ 0 | $ (109) |
Fixed interest rate payable | 0.00% | 3.54% |
Maturity date | Sep. 20, 2015 | |
FHLB Advance (Sep 20, 2015) [Member] | Three month LIBOR plus 0.22% [Member] | ||
Interest-rate swaps designated as cash flow hedges | ||
Variable interest rate receivable | 0.00% | 0.47% |
FHLB Advance (Jul 19, 2016) [Member] | ||
Interest-rate swaps designated as cash flow hedges | ||
Notional amount | $ 10,000 | $ 10,000 |
Unrealized losses | $ (276) | $ (186) |
Fixed interest rate payable | 2.09% | 2.09% |
Maturity date | Mar. 15, 2020 | |
FHLB Advance (Jul 19, 2016) [Member] | Three month LIBOR plus 0.25% [Member] | ||
Interest-rate swaps designated as cash flow hedges | ||
Variable interest rate receivable | 0.35% | 0.00% |
Federal Home Loan Banks Advance Four [Member] [Domain] [Domain] | ||
Interest-rate swaps designated as cash flow hedges | ||
Notional amount | $ 10,000 | $ 10,000 |
Unrealized losses | $ (339) | $ (197) |
Fixed interest rate payable | 2.23% | 2.23% |
Maturity date | Jun. 15, 2020 | |
Federal Home Loan Banks Advance Four [Member] [Domain] [Domain] | Three month LIBOR plus 0.25% [Member] | ||
Interest-rate swaps designated as cash flow hedges | ||
Variable interest rate receivable | 0.35% | 0.00% |
Federal Home Loan Banks Advance Five [Member] [Domain] [Domain] [Domain] | ||
Interest-rate swaps designated as cash flow hedges | ||
Notional amount | $ 10,000 | $ 10,000 |
Unrealized losses | $ (496) | $ (230) |
Fixed interest rate payable | 2.62% | 2.62% |
Derivative, Start Date | Mar. 15, 2016 | |
Maturity date | Mar. 15, 2021 | |
Federal Home Loan Banks Advance Five [Member] [Domain] [Domain] [Domain] | Three month LIBOR plus 0.25% [Member] | ||
Interest-rate swaps designated as cash flow hedges | ||
Variable interest rate receivable | 0.00% | 0.00% |
Federal Home Loan Banks Advance Two [Member] | ||
Interest-rate swaps designated as cash flow hedges | ||
Notional amount | $ 10,000 | $ 10,000 |
Unrealized losses | $ (154) | $ (434) |
Fixed interest rate payable | 3.69% | 3.69% |
Maturity date | Jul. 19, 2016 | |
Variable interest rate receivable, Three/One month LIBOR plus or less | 0.25% | 0.25% |
Federal Home Loan Banks Advance Two [Member] | Three Month London Interbank Offered Rate Plus Zero Point Twenty Five Percentage [Member] | ||
Interest-rate swaps designated as cash flow hedges | ||
Variable interest rate receivable | 0.57% | 0.48% |
Derivatives (Details 1)
Derivatives (Details 1) - Interest Rate Contracts [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net losses recorded in accumulated other comprehensive income (loss) and Income relating to the cash flow derivative | ||
Net amount of gain (loss) recognized in OCI (Effective Portion) | $ (73) | $ 17 |
Net amount of gain (loss) reclassified from OCI to interest income | 0 | 0 |
Net amount of gain (loss) recognized in other non interest income (Ineffective Portion) | $ 0 | $ 0 |
Derivatives (Details 2)
Derivatives (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Included in other liabilities: | ||
Fair Value | $ (1,265) | $ (1,156) |
Cash Flow Hedges [Member] | ||
Included in other liabilities: | ||
Notional Amount | (40,000) | |
FHLB advances [Member] | Cash Flow Hedges [Member] | ||
Included in other liabilities: | ||
Notional Amount | (40,000) | (45,000) |
Fair Value | $ (1,265) | $ (1,156) |
Derivatives (Details Textual)
Derivatives (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Interest expense | $ 696 | $ 704 | ||||||||
Interest income | $ 4,904 | $ 4,604 | $ 4,736 | $ 4,481 | $ 4,499 | $ 4,644 | $ 4,505 | $ 4,277 | ||
Interest Rate Swaps Designated as Cash Flow Hedges [Member] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Notional amount | 40,000 | |||||||||
Interest Rate Swaps Designated as Fair Value Hedges [Member] | Interest Rate Swap [Member] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Notional amount | 45,000 | |||||||||
Security Collateral Held in Safekeeping by Bank of New York [Member] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Cash and securities fair value | $ 3,700 | $ 2,600 | ||||||||
Federal Home Loan Banks Advance Two [Member] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Derivative, Description of Terms | Three month LIBOR | Three month LIBOR | ||||||||
Derivative, Basis Spread on Variable Rate | 0.25% | 0.25% | ||||||||
Notional amount | $ 10,000 | $ 10,000 | ||||||||
Federal Home Loan Banks Advance Three [Member] [Domain] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Notional amount | 10,000 | 10,000 | ||||||||
Federal Home Loan Banks Advance Four [Member] [Domain] [Domain] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Notional amount | 10,000 | 10,000 | ||||||||
Federal Home Loan Banks Advance Five [Member] [Domain] [Domain] [Domain] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Notional amount | 10,000 | 10,000 | ||||||||
Federal Home Loan Banks Advance One [Member] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Notional amount | $ 0 | $ 5,000 |
Accumulated Other Comprehens114
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ (1,838) | $ 522 | |
Other comprehensive income (loss) before reclassification | 2,429 | (147) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (69) | (65) | |
Total other comprehensive income (loss) | 2,360 | (212) | $ 2,360 |
Ending balance | 310 | 522 | |
Gains (Losses) on Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (780) | (763) | |
Other comprehensive income (loss) before reclassification | 17 | (73) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |
Total other comprehensive income (loss) | 17 | (73) | |
Ending balance | (836) | (763) | |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (1,058) | 1,285 | |
Other comprehensive income (loss) before reclassification | 2,412 | (74) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (69) | (65) | |
Total other comprehensive income (loss) | $ 2,343 | (139) | |
Ending balance | $ 1,146 | $ 1,285 |
Accumulated Other Comprehens115
Accumulated Other Comprehensive Income (Loss) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||||
Income before income taxes | $ 5,639 | $ 5,103 | ||||||||
(36) | (1,061) | (693) | ||||||||
Net income | $ 1,231 | $ 1,071 | $ 1,324 | $ 952 | $ 1,005 | $ 1,341 | $ 1,214 | $ 850 | 4,578 | 4,410 |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||||
105 | 99 | 105 | ||||||||
(36) | (34) | (36) | ||||||||
Net income | $ 65 | $ 69 |
Offsetting Financial Assets 116
Offsetting Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Offsetting [Abstract] | ||
Derivatives, Gross Amounts of Recognized Liabilities | $ 1,265 | $ 1,156 |
Derivatives, Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Derivatives, Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 1,265 | 1,156 |
Derivative, Collateral, Right to Reclaim Securities | 3,696 | 2,606 |
Derivatives, Cash Collateral Pledged | 0 | 0 |
Derivatives, Net Amount | $ (2,431) | (1,450) |
Repurchase agreements, Gross Amounts of Recognized Liabilities | 755 | |
Repurchase agreements, Gross Amounts Offset in the Consolidated Balance Sheet | 0 | |
Repurchase agreements, Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 755 | |
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Securities | (755) | |
Repurchase agreements, Cash Collateral Pledged | 0 | |
Repurchase agreements, Net Amount | 0 | |
Total, Gross Amounts of Recognized Liabilities | 1,911 | |
Total, Gross Amounts Offset in the Consolidated Balance Sheet | 0 | |
Total, Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 1,911 | |
Total, Financial Instruments | (3,361) | |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Collateral, Right to Reclaim Cash | 0 | |
Total, Net Amount | $ (1,450) |
Loan Commitments and Other R117
Loan Commitments and Other Related Activities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fixed Rate [Member] | ||
Contractual amounts of financial instruments with off-balance-sheet risk | ||
Contractual amounts of financial instruments with off-balance-sheet risk, Total | $ 8,766 | $ 11,886 |
Variable Rate [Member] | ||
Contractual amounts of financial instruments with off-balance-sheet risk | ||
Contractual amounts of financial instruments with off-balance-sheet risk, Total | 27,380 | 49,012 |
Commitments to Make Loans [Member] | Fixed Rate [Member] | ||
Contractual amounts of financial instruments with off-balance-sheet risk | ||
Contractual amounts of financial instruments with off-balance-sheet risk, Total | 1,491 | 5,662 |
Commitments to Make Loans [Member] | Variable Rate [Member] | ||
Contractual amounts of financial instruments with off-balance-sheet risk | ||
Contractual amounts of financial instruments with off-balance-sheet risk, Total | 969 | 21,103 |
Unused Lines of Credit [Member] | Fixed Rate [Member] | ||
Contractual amounts of financial instruments with off-balance-sheet risk | ||
Contractual amounts of financial instruments with off-balance-sheet risk, Total | 7,237 | 6,191 |
Unused Lines of Credit [Member] | Variable Rate [Member] | ||
Contractual amounts of financial instruments with off-balance-sheet risk | ||
Contractual amounts of financial instruments with off-balance-sheet risk, Total | 25,447 | 26,959 |
Standby Letters of Credit [Member] | Fixed Rate [Member] | ||
Contractual amounts of financial instruments with off-balance-sheet risk | ||
Contractual amounts of financial instruments with off-balance-sheet risk, Total | 38 | 33 |
Standby Letters of Credit [Member] | Variable Rate [Member] | ||
Contractual amounts of financial instruments with off-balance-sheet risk | ||
Contractual amounts of financial instruments with off-balance-sheet risk, Total | $ 964 | $ 950 |
Loan Commitments and Other R118
Loan Commitments and Other Related Activities (Details Textual) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loan Commitments and Other Related Activities (Textual) [Abstract] | ||
Commitments to make loans | 60 days or less | |
Fixed rate loan commitment interest rate minimum | 4.00% | 3.95% |
Fixed rate loan commitment interest rate maximum | 5.50% | 5.25% |
Commitments maturity | 60 months | 60 months |
Parent Company Only Condense119
Parent Company Only Condensed Financial Information (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS | |||
Interest-earning time deposits in other financial institutions | $ 13,599 | $ 6,615 | |
Securities available-for-sale | 122,243 | 155,223 | |
Accrued interest receivable and other assets | 4,968 | 4,000 | |
Total assets | 543,191 | 518,616 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
Subordinated debentures | 5,155 | 5,155 | |
Accrued interest payable and other liabilities | 6,529 | 5,386 | |
Shareholders' equity | 85,548 | 82,388 | $ 80,249 |
Total liabilities and shareholders’ equity | 543,191 | 518,616 | |
Parent Company [Member] | |||
ASSETS | |||
Cash and cash equivalents | 3,213 | 4,954 | $ 2,656 |
Interest-earning time deposits in other financial institutions | 1,729 | 0 | |
Securities available-for-sale | 3,493 | 4,342 | |
ESOP loan receivable | 2,992 | 3,133 | |
Investment in banking subsidiary | 76,444 | 73,376 | |
Investment in captive subsidiary | 2,256 | 1,177 | |
Investment in statutory trust | 155 | 155 | |
Accrued interest receivable and other assets | 439 | 411 | |
Total assets | 90,721 | 87,548 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
Subordinated debentures | 5,155 | 5,155 | |
Accrued interest payable and other liabilities | 18 | 5 | |
Shareholders' equity | 85,548 | 82,388 | |
Total liabilities and shareholders’ equity | $ 90,721 | $ 87,548 |
Parent Company Only Condense120
Parent Company Only Condensed Financial Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | |
CONDENSED STATEMENTS OF INCOME | ||||||||||
Interest income | $ 4,904 | $ 4,604 | $ 4,736 | $ 4,481 | $ 4,499 | $ 4,644 | $ 4,505 | $ 4,277 | ||
Interest expense | $ (2,669) | $ (3,065) | ||||||||
Other expenses | (1,655) | (1,581) | ||||||||
Income tax benefit | 1,061 | 693 | ||||||||
Net income | $ 1,231 | $ 1,071 | $ 1,324 | 952 | $ 1,005 | $ 1,341 | $ 1,214 | $ 850 | 4,578 | 4,410 |
Other comprehensive income (loss) | $ 2,360 | (212) | 2,360 | |||||||
Comprehensive income | 4,366 | 6,770 | ||||||||
Parent Company [Member] | ||||||||||
CONDENSED STATEMENTS OF INCOME | ||||||||||
Dividends from banking subsidiary | 1,500 | 4,000 | ||||||||
Interest income | 170 | 198 | ||||||||
Interest expense | (172) | (195) | ||||||||
Noninterest Income, Other Operating Income | 3 | 0 | ||||||||
Other expenses | (451) | (274) | ||||||||
Income (loss) before income tax and undistributed subsidiary income | 1,050 | 3,729 | ||||||||
Income tax benefit | (153) | (92) | ||||||||
Equity in undistributed income or net income of banking subsidiary | 3,375 | 589 | ||||||||
Net income | 4,578 | 4,410 | ||||||||
Other comprehensive income (loss) | (212) | 2,360 | ||||||||
Comprehensive income | $ 4,366 | $ 6,770 |
Parent Company Only Condense121
Parent Company Only Condensed Financial Information (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | ||||||||||
Net income | $ 1,231 | $ 1,071 | $ 1,324 | $ 952 | $ 1,005 | $ 1,341 | $ 1,214 | $ 850 | $ 4,578 | $ 4,410 |
Adjustments to reconcile net income to net cash from operating activities: | ||||||||||
Accrued interest receivable and other assets | (875) | 399 | ||||||||
Change in other liabilities | 1,034 | (173) | ||||||||
Net Cash Provided by (Used in) Operating Activities | 3,921 | 6,705 | ||||||||
Cash flows from investing activities: | ||||||||||
Net change in interest-earning time deposits at other financial institutions | (6,984) | 27 | ||||||||
Purchases of securities available-for-sale | (14,835) | (34,035) | ||||||||
Net cash utilized for investing activities | (12,220) | (804) | ||||||||
Cash flows from financing activities: | ||||||||||
Stock option exercises | 103 | 28 | ||||||||
Repurchase of common stock | (1,419) | (4,321) | ||||||||
Dividends paid on common stock | (896) | (923) | ||||||||
Net cash provided by (utilized for) financing activities | 18,060 | (15,422) | ||||||||
Net increase (decrease) in cash and cash equivalents | 9,761 | (9,521) | ||||||||
Parent Company [Member] | ||||||||||
Cash flows from operating activities | ||||||||||
Net income | 4,578 | 4,410 | ||||||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||||
Equity in undistributed income or net income of banking subsidiary | (3,375) | (589) | ||||||||
Accrued interest receivable and other assets | 70 | 806 | ||||||||
Change in other liabilities | (96) | (6) | ||||||||
Net Cash Provided by (Used in) Operating Activities | 1,177 | 4,621 | ||||||||
Cash flows from investing activities: | ||||||||||
Net change in ESOP loan receivable | 141 | 137 | ||||||||
Net change in interest-earning time deposits at other financial institutions | (1,729) | 2,232 | ||||||||
Purchases of securities available-for-sale | 882 | 524 | ||||||||
Net cash utilized for investing activities | (706) | 2,893 | ||||||||
Cash flows from financing activities: | ||||||||||
Stock option exercises | 103 | 28 | ||||||||
Repurchase of common stock | (1,419) | (4,321) | ||||||||
Dividends paid on common stock | (896) | (923) | ||||||||
Net cash provided by (utilized for) financing activities | (2,212) | (5,216) | ||||||||
Net increase (decrease) in cash and cash equivalents | (1,741) | 2,298 | ||||||||
Beginning cash and cash equivalents | 4,954 | 2,656 | ||||||||
Ending cash and cash equivalents | $ 2,656 | $ 3,213 | $ 4,954 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | |
Basic | ||||||||||
Net Income | $ 1,231 | $ 1,071 | $ 1,324 | $ 952 | $ 1,005 | $ 1,341 | $ 1,214 | $ 850 | $ 4,578 | $ 4,410 |
Weighted average common shares outstanding | 5,596,165 | 5,767,168 | ||||||||
Less: Average unallocated ESOP shares | (371,017) | (393,502) | ||||||||
Average shares | 5,225,148 | 5,373,666 | ||||||||
Basic earnings per common share (in usd per share) | $ 0.24 | $ 0.21 | $ 0.25 | $ 0.18 | $ 0.19 | $ 0.25 | $ 0.23 | $ 0.15 | $ 0.88 | $ 0.82 |
Diluted | ||||||||||
Net income | $ 4,578 | $ 4,410 | ||||||||
Weighted average common shares outstanding for basic earnings per common share | 5,225,148 | 5,373,666 | ||||||||
Add: Dilutive effects of assumed exercises of stock options | 122,764 | 91,890 | ||||||||
Average shares and dilutive potential common shares | 5,347,912 | 5,465,556 | ||||||||
Diluted earnings per common share | $ 0.23 | $ 0.20 | $ 0.25 | $ 0.18 | $ 0.19 | $ 0.25 | $ 0.22 | $ 0.15 | $ 0.86 | $ 0.81 |
Quarterly Financial Data (Un123
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Data | ||||||||||
Interest Income | $ 4,904 | $ 4,604 | $ 4,736 | $ 4,481 | $ 4,499 | $ 4,644 | $ 4,505 | $ 4,277 | ||
Net Interest Income | 4,220 | 3,904 | 4,056 | 3,876 | 3,822 | 3,861 | 3,695 | 3,482 | $ 16,056 | $ 14,860 |
Net Income | $ 1,231 | $ 1,071 | $ 1,324 | $ 952 | $ 1,005 | $ 1,341 | $ 1,214 | $ 850 | $ 4,578 | $ 4,410 |
Basic earnings per common share (in usd per share) | $ 0.24 | $ 0.21 | $ 0.25 | $ 0.18 | $ 0.19 | $ 0.25 | $ 0.23 | $ 0.15 | $ 0.88 | $ 0.82 |
Earnings Per Share, Diluted | $ 0.23 | $ 0.20 | $ 0.25 | $ 0.18 | $ 0.19 | $ 0.25 | $ 0.22 | $ 0.15 | $ 0.86 | $ 0.81 |