Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 06, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | First Internet Bancorp | ||
Entity Central Index Key | 1562463 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Trading Symbol | INBK | ||
Entity Common Stock, Shares Outstanding | 4,486,563 | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $84.30 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and due from banks | $1,940 | $2,578 |
Interest-bearing demand deposits | 26,349 | 51,112 |
Total cash and cash equivalents | 28,289 | 53,690 |
Interest-bearing time deposits | 2,000 | 2,500 |
Securities available for sale - at fair value (amortized cost of $137,727 in 2014 and $185,091 in 2013) | 137,518 | 181,409 |
Loans held-for-sale (includes $32,618 and $24,254 at fair value in 2014 and 2013, respectively) | 34,671 | 28,610 |
Loans receivable | 732,426 | 501,153 |
Allowance for loan losses | -5,800 | -5,426 |
Net loans receivable | 726,626 | 495,727 |
Accrued interest receivable | 2,833 | 2,904 |
Federal Home Loan Bank of Indianapolis stock | 5,350 | 2,943 |
Cash surrender value of bank-owned life insurance | 12,325 | 11,935 |
Premises and equipment, net | 7,061 | 7,134 |
Goodwill | 4,687 | 4,687 |
Other real estate owned | 4,488 | 4,381 |
Accrued income and other assets | 4,655 | 6,422 |
Total assets | 970,503 | 802,342 |
Liabilities | ||
Noninterest-bearing deposits | 21,790 | 19,386 |
Interest-bearing deposits | 736,808 | 653,709 |
Total deposits | 758,598 | 673,095 |
Advances from Federal Home Loan Bank | 106,897 | 31,793 |
Subordinated debt | 2,873 | 2,789 |
Accrued interest payable | 97 | 102 |
Accrued expenses and other liabilities | 5,253 | 3,655 |
Total liabilities | 873,718 | 711,434 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Preferred stock, no par value; 4,913,779 shares authorized; issued and outstanding - none | 0 | 0 |
Retained earnings | 25,146 | 21,902 |
Accumulated other comprehensive loss | -135 | -2,372 |
Total shareholders’ equity | 96,785 | 90,908 |
Total liabilities and shareholders’ equity | 970,503 | 802,342 |
Voting Common Stock | ||
Shareholders’ Equity | ||
Voting and nonvoting common stock | 71,774 | 71,378 |
Nonvoting Common Stock | ||
Shareholders’ Equity | ||
Voting and nonvoting common stock | $0 | $0 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets [Parenthetical] (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Amortized cost, at fair value | $137,727 | $185,091 |
Loans held-for-sale, Fair Value | $32,618 | $24,254 |
Preferred Stock, Par or Stated Value (in dollars per share) | $0 | $0 |
Preferred stock, shares authorized (in shares) | 4,913,779 | 4,913,779 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Voting Common Stock | ||
Common Stock, Par or Stated Value (in dollars per share) | $0 | $0 |
Common stock, shares authorized (in shares) | 45,000,000 | 45,000,000 |
Common stock, shares issued (in shares) | 4,439,575 | 4,448,326 |
Common stock, shares outstanding (in shares) | 4,439,575 | 4,448,326 |
Nonvoting Common Stock | ||
Common Stock, Par or Stated Value (in dollars per share) | $0 | $0 |
Common stock, shares authorized (in shares) | 86,221 | 86,221 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Interest Income | ||
Loans | $27,875 | $20,843 |
Securities – taxable | 3,036 | 2,891 |
Securities – non-taxable | 58 | 1,611 |
Other earning assets | 246 | 191 |
Total interest income | 31,215 | 25,536 |
Interest Expense | ||
Deposits | 7,653 | 6,861 |
Other borrowed funds | 1,275 | 1,227 |
Total interest expense | 8,928 | 8,088 |
Net Interest Income | 22,287 | 17,448 |
Provision for Loan Losses | 349 | 324 |
Net Interest Income After Provision for Loan Losses | 21,938 | 17,124 |
Noninterest Income | ||
Service charges and fees | 707 | 687 |
Mortgage banking activities | 5,609 | 8,682 |
Other-than-temporary impairment | ||
Total loss related to other than temporarily impaired securities | 0 | -129 |
Portion of loss recognized in other comprehensive income (loss) | 0 | 80 |
Other-than-temporary impairment loss recognized in net income | 0 | -49 |
Gain (loss) on sale of securities | 538 | -63 |
Loss on asset disposals | -78 | -146 |
Other | 398 | 406 |
Total noninterest income | 7,174 | 9,517 |
Noninterest Expense | ||
Salaries and employee benefits | 12,348 | 10,250 |
Marketing, advertising, and promotion | 1,455 | 1,858 |
Consulting and professional fees | 1,902 | 2,152 |
Data processing | 995 | 911 |
Loan expenses | 626 | 799 |
Premises and equipment | 2,937 | 2,196 |
Deposit insurance premium | 591 | 451 |
Other | 1,808 | 1,865 |
Total noninterest expense | 22,662 | 20,482 |
Income Before Income Taxes | 6,450 | 6,159 |
Income Tax Provision | 2,126 | 1,566 |
Net Income | $4,324 | $4,593 |
Income Per Share of Common Stock (in dollars per share) | ||
Basic | $0.96 | $1.51 |
Diluted | $0.96 | $1.51 |
Weighted-Average Number of Common Shares Outstanding | ||
Basic | 4,497,007 | 3,041,666 |
Diluted | 4,507,995 | 3,050,001 |
Dividends Declared Per Share (in dollars per share) | $0.24 | $0.22 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $4,324 | $4,593 |
Other comprehensive income (loss) | ||
Net unrealized holding gains (losses) on securities available for sale | 3,260 | -6,462 |
Reclassification adjustment for (gains) losses realized | -538 | 63 |
Net unrealized holding gains (losses) on securities available for sale for which an other-than-temporary impairment has been recognized in income | 751 | -129 |
Reclassification adjustment for other-than-temporary impairment loss recognized in income | 0 | 49 |
Other comprehensive income (loss) before tax | 3,473 | -6,479 |
Income tax provision (benefit) | 1,236 | -2,289 |
Other comprehensive income (loss) - net of tax | 2,237 | -4,190 |
Comprehensive income | $6,561 | $403 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Voting and Nonvoting Common Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
In Thousands, unless otherwise specified | ||||
Balance at Dec. 31, 2012 | $61,350 | $41,508 | $1,818 | $18,024 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 4,593 | 4,593 | ||
Other comprehensive income (loss) | -4,190 | -4,190 | ||
Cash dividends declared | -715 | -715 | ||
Recognition of the fair value of share-based compensation | 514 | 514 | ||
Issuance of common stock warrants | 255 | 255 | ||
Net cash proceeds from common stock issuance | 29,101 | 29,101 | ||
Balance at Dec. 31, 2013 | 90,908 | 71,378 | -2,372 | 21,902 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 4,324 | 4,324 | ||
Other comprehensive income (loss) | 2,237 | 2,237 | ||
Cash dividends declared | -1,080 | -1,080 | ||
Recognition of the fair value of share-based compensation | 507 | 507 | ||
Common stock redeemed for the net settlement of share-based awards | -71 | -71 | ||
Other | -40 | -40 | ||
Balance at Dec. 31, 2014 | $96,785 | $71,774 | ($135) | $25,146 |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity [Parenthetical] (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared (in dollars per share) | $0.24 | $0.22 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Operating Activities | ||
Net income | $4,324 | $4,593 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,904 | 2,257 |
Loss from real estate owned | 71 | 11 |
Increase in cash surrender value of bank-owned life insurance | -390 | -396 |
Provision for loan losses | 349 | 324 |
Stock compensation expense | 507 | 514 |
Loss on other-than-temporary impairment of securities | 0 | 49 |
(Gain) loss from sale of available for sale securities | -538 | 63 |
Loans originated for sale | -409,715 | -741,078 |
Proceeds from sale of loans | 409,453 | 784,077 |
Gain on loans sold | -5,048 | -8,379 |
(Increase) decrease in fair value of loans held-for-sale | -751 | 4 |
Loss (gain) on derivatives | 190 | -307 |
Deferred income tax | -1,529 | 2,259 |
Net change in: | ||
Accrued income and other assets | 1,964 | -2,415 |
Accrued expenses and other liabilities | 1,189 | -36 |
Net cash provided by operating activities | 1,980 | 41,540 |
Investing Activities | ||
Net change in loans | -124,696 | -61,039 |
Net change in interest bearing deposits | 500 | -2,500 |
Loans purchased | -106,480 | -83,265 |
Proceeds from liquidation of other real estate owned | 235 | 1,268 |
Maturities of securities available for sale | 21,254 | 29,757 |
Proceeds from sale of securities available for sale | 137,816 | 72,019 |
Purchase of securities available for sale | -112,000 | -134,471 |
Purchase of Federal Home Loan Bank of Indianapolis stock | -2,407 | 0 |
Purchase of premises and equipment | -915 | -7,187 |
Net cash used in investing activities | -186,693 | -185,418 |
Financing Activities | ||
Net increase in deposits | 85,503 | 142,404 |
Cash dividends paid | -1,080 | -450 |
Proceeds from issuance of subordinated debt and related warrants | 0 | 3,000 |
Net proceeds from common stock issuance | 0 | 29,101 |
Repayment of FHLB advances | -95,000 | -22,000 |
Proceeds from FHLB advances | 170,000 | 13,000 |
Other, net | -111 | 0 |
Net cash provided by financing activities | 159,312 | 165,055 |
Net (Decrease) Increase in Cash and Cash Equivalents | -25,401 | 21,177 |
Cash and Cash Equivalents, Beginning of Year | 53,690 | 32,513 |
Cash and Cash Equivalents, End of Year | 28,289 | 53,690 |
Supplemental Disclosures of Cash Flows Information | ||
Cash paid during the year for interest | 8,933 | 8,106 |
Cash paid during the year for taxes | 2,346 | 770 |
Loans transferred to other real estate owned | 0 | 581 |
Cash dividends declared, not paid | $265 | $265 |
Basis_of_Presentation_and_Summ
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Basis of Presentation and Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | ||||||||
The accounting policies of First Internet Bancorp and its subsidiaries (the “Company”) conform to accounting principles generally accepted in the United States of America (“GAAP”). A summary of the Company’s significant accounting policies follows: | |||||||||
Description of Business | |||||||||
The Company was incorporated on September 15, 2005, and was approved to consummate a plan of exchange on March 21, 2006, by which the Company became a bank holding company owning 100% of First Internet Bank of Indiana (the “Bank”). | |||||||||
The Bank provides commercial and retail banking services, with operations conducted on the Internet at www.firstib.com and primarily through its corporate office located in Indianapolis, Indiana as well as loan production offices in Tempe, Arizona and Portland, Oregon. The majority of the Bank’s income is derived from commercial lending, retail lending, and mortgage banking activities. The Bank is subject to competition from other financial institutions. The Bank is regulated by certain state and federal agencies and undergoes periodic examinations by those regulatory authorities. | |||||||||
JKH Realty Services, LLC was established August 20, 2012 as a single member LLC wholly owned by the Bank to manage other real estate owned properties as needed. | |||||||||
Principles of Consolidation | |||||||||
The consolidated financial statements include the accounts of the Company and its subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. | |||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company utilizes processes that involve the use of significant estimates and the judgment of management in determining the amount of the Company’s allowance for credit losses and income taxes, as well as fair value measurements of investment securities, derivatives, goodwill, and loans held-for-sale. Actual results could differ from those estimates. | |||||||||
Securities | |||||||||
The Company classifies its securities in one of three categories and accounts for the investments as follows: | |||||||||
• | Securities that the Company has the positive intent and ability to hold to maturity are classified as “held to maturity” and reported at amortized cost. The Company had no securities classified as “held to maturity” at December 31, 2014 and 2013. | ||||||||
• | Securities that are acquired and held principally for the purpose of selling them in the near term with the objective of generating economic profits on short-term differences in market characteristics are classified as “trading securities” and reported at fair value, with unrealized gains and losses included in earnings. The Company had no securities classified as “trading securities” at December 31, 2014 and 2013. | ||||||||
• | Securities not classified as either “held to maturity” or “trading securities” are classified as “securities available for sale” and reported at fair value, with unrealized gains and losses, after applicable taxes, excluded from earnings and reported in a separate component of shareholders’ equity. Declines in the value of debt securities and marketable equity securities that are considered to be other-than-temporary are recorded as an other-than-temporary impairment of securities available for sale with other-than-temporary impairment losses recorded in the consolidated statements of income. | ||||||||
Interest and dividend income, adjusted by amortization of premium or discount, is included in earnings using the effective interest rate method. Purchases and sales of securities are recorded in the consolidated balance sheets on the trade date. Gains and losses from security sales or disposals are recognized as of the trade date in the consolidated statements of income for the period in which securities are sold or otherwise disposed of. Gains and losses on sales of securities are determined on the specific-identification method. | |||||||||
Loans Held-for-Sale | |||||||||
Loans originated and intended for sale in the secondary market under best-efforts pricing agreements are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. | |||||||||
Loans originated and intended for sale in the secondary market under mandatory pricing agreements are carried at fair value to facilitate hedging of the loans. Gains and losses resulting from changes in fair value are included in noninterest income. | |||||||||
Gains and losses on loan sales are recorded in noninterest income, and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of loan. | |||||||||
Revenue Recognition | |||||||||
Interest income on loans is accrued as earned using the interest method based on unpaid principal balances except for interest on loans in nonaccrual status. Interest on loans in nonaccrual status is recorded as a reduction of loan principal when received. | |||||||||
Premiums and discounts are amortized using the effective interest rate method. | |||||||||
Loan fees, net of certain direct origination costs, primarily salaries and wages, are deferred and amortized to interest income as a yield adjustment over the life of the loan. | |||||||||
Loans Receivable | |||||||||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity are reported at their outstanding principal balance adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans, and unamortized premiums or discounts on purchased loans. | |||||||||
For loans recorded at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. | |||||||||
Allowance for Loan Losses Methodology | |||||||||
Company policy is designed to maintain an adequate allowance for loan losses (“ALLL”). Primary responsibility for ensuring that the Company has processes in place to consistently assess the adequacy of the ALLL rests with the Board of Directors (the “Board”). The Board has charged management with responsibility for establishing the methodology to be used and to assess the adequacy of the ALLL. The Board reviews recommendations from management on a quarterly basis to adjust the allowance as appropriate. | |||||||||
The methodology employed by management for each portfolio segment, at a minimum, contains the following: | |||||||||
1 | Loans are segmented by type of loan. | ||||||||
2 | The required ALLL for types of performing homogeneous loans which do not have a specific reserve is determined by applying a factor based on historical losses averaged over the past twelve months. In those instances where the Company’s historical experience is not available, management develops factors based on industry experience and best practices. | ||||||||
3 | All criticized, classified and impaired loans are tested for impairment by applying one of three methodologies: | ||||||||
a. | Present value of future cash flows; | ||||||||
b. | Fair value of collateral less costs to sell; or | ||||||||
c. | The loan’s observable market price | ||||||||
4 | All troubled debt restructurings (“TDR”) are considered impaired loans. | ||||||||
5 | Loans tested for impairment are removed from other pools to prevent layering (double-counting). | ||||||||
6 | The required ALLL for each group of loans are added together to determine the total required ALLL for the Company. The required ALLL is compared to the existing ALLL to determine the provision required to increase the ALLL or credit to decrease the ALLL. | ||||||||
The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced over the prior twelve months. Management believes the historical loss experience methodology is appropriate in the current economic environment, as it captures loss rates that are comparable to the current period being analyzed. | |||||||||
The Company also factors in the following qualitative considerations: | |||||||||
1 | Changes in policies and procedures; | ||||||||
2 | Changes in national, regional, and local economic and business conditions; | ||||||||
3 | Changes in the composition and size of the portfolio and in the terms of loans; | ||||||||
4 | Changes in the experience, ability, and depth of lending management and other relevant staff; | ||||||||
5 | Changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans; | ||||||||
6 | Changes in the quality of the Company’s loan review system; | ||||||||
7 | Changes in the value of underlying collateral for collateral-dependent loans; | ||||||||
8 | The existence and effect of any concentration of credit and changes in the level of such concentrations; and | ||||||||
9 | The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio. | ||||||||
Provision for Loan Losses | |||||||||
A provision for estimated losses on loans is charged to income based upon management’s evaluation of the potential losses. Such an evaluation, which includes a review of all loans for which full repayment may not be reasonably assured, considers, among other matters, the estimated net realizable value of the underlying collateral, as applicable, economic conditions, loan loss experience, and other factors that are particularly susceptible to changes that could result in a material adjustment in the near term. While management attempts to use the best information available in making its evaluations, future allowance adjustments may be necessary if economic conditions change substantially from the assumptions used in making the evaluations. | |||||||||
Accounting Standards Codification (“ASC”) Topic 310, Receivables, requires that impaired loans be measured based on the present value of expected future cash flows discounted at the loans’ effective interest rates or the fair value of the underlying collateral, less costs to sell, and allows existing methods for recognizing interest income. | |||||||||
Nonaccrual Loans | |||||||||
Any loan which becomes 90 days delinquent or for which the full collection of principal and interest may be in doubt will be considered for nonaccrual status. At the time a loan is placed on nonaccrual status, all accrued but unpaid interest will be reversed from interest income. Placing the loan on nonaccrual status does not relieve the borrower of the obligation to repay interest. A loan placed on nonaccrual status may be restored to accrual status when all delinquent principal and interest has been brought current, and the Company expects full payment of the remaining contractual principal and interest. | |||||||||
Impaired Loans | |||||||||
A loan is designated as impaired when, based on current information or events, it is probable that the Company will be unable to collect all amounts due (principal and interest) according to the contractual terms of the loan agreement. Payments with insignificant delays not exceeding 90 days outstanding are generally not considered impaired. Certain nonaccrual and substantially all delinquent loans may be considered to be impaired. Generally, loans are placed on nonaccrual status at 90 days past due and accrued interest is reversed against earnings, unless the loan is well-secured and in the process of collection. The accrual of interest on impaired loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due. | |||||||||
Troubled Debt Restructurings (“TDR”) | |||||||||
The loan portfolio includes certain loans that have been modified in a TDR, where economic concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from loss mitigation efforts and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally not less than six months. | |||||||||
When loans are modified in a TDR, any possible impairment similar to other impaired loans is evaluated based on either the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, or the current fair value of the collateral, less selling costs for collateral dependent loans. If it is determined that the value of the modified loan is less than the recorded balance of the loan, impairment is recognized through a specific ALLL or charge-off to the ALLL. In periods subsequent to modification, all TDRs, including those that have payment defaults, are evaluated for possible impairment, and impairment is recognized through the ALLL. | |||||||||
Policy for Charging Off Loans | |||||||||
A loan should be charged off at any point in time when it no longer can be considered a bankable asset, meaning collected within the parameters of policy. A secured loan generally should be charged off to the estimated fair value of the collateral, less costs to sell, no later than when it is 120 days past due as to principal or interest. An unsecured loan generally should be charged off no later than when it is 180 days past due as to principal or interest. All charge-offs are approved by the Chief Credit Officer. | |||||||||
Federal Home Loan Bank (“FHLB”) of Indianapolis Stock | |||||||||
Federal law requires a member institution of the FHLB system to hold common stock of its district FHLB according to a predetermined formula. This investment is stated at cost, which represents redemption value, and may be pledged as collateral for FHLB advances. | |||||||||
Other Real Estate Owned | |||||||||
Other real estate owned represents real estate acquired through foreclosure or deed in lieu of foreclosure and is recorded at its fair value less estimated costs to sell. When property is acquired, it is recorded at its fair value at the date of acquisition with any resulting write-down charged against the ALLL. Any subsequent deterioration of the property is charged directly to operating expense. Costs relating to the development and improvement of real estate owned are capitalized, whereas costs relating to holding and maintaining the property are charged to expense as incurred. | |||||||||
Premises and Equipment | |||||||||
Premises and equipment is stated at cost, less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives, which range from three to five years for software and equipment, 39 years for buildings, and ten years for land improvements. | |||||||||
Derivative Financial Instruments | |||||||||
The Company uses derivative financial instruments to help manage exposure to interest rate risk and the effects that changes in interest rates may have on net income and the fair value of assets and liabilities. The Company enters into forward contracts for the future delivery of mortgage loans to third party investors and enters into interest rate lock commitments with potential borrowers to fund specific mortgage loans that will be sold into the secondary market. The forward contracts are entered into in order to economically hedge the effect of changes in interest rates resulting from the Company’s commitment to fund the loans. | |||||||||
All of these items are considered derivatives, but are not designated as accounting hedges, and therefore, are recorded at fair value with changes in fair value reflected in noninterest income on the consolidated statements of income. The fair value of derivative instruments with a positive fair value are reported in accrued income and other assets in the consolidated balance sheets while derivative instruments with a negative fair value are reported in accrued expenses and other liabilities in the consolidated balance sheets. | |||||||||
Fair Value Measurements | |||||||||
The Company records or discloses certain assets and liabilities at fair value. ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified within one of three levels in a valuation hierarchy. ASC Topic 820 describes three levels of inputs that may be used to measure fair value: | |||||||||
Level 1 | Quoted prices in active markets for identical assets or liabilities | ||||||||
Level 2 | 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 for substantially the full term of the assets or liabilities | ||||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities | ||||||||
Income Taxes | |||||||||
Deferred income tax assets and liabilities reflect the impact of temporary differences between amounts of assets and liabilities for financial reporting purposes and the basis of such assets and liabilities as measured by tax laws and regulations. Deferred income tax expense or benefit is based upon the change in deferred tax assets and liabilities from period to period, subject to an ongoing assessment of realization of deferred tax assets. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. | |||||||||
The Company files income tax returns in the U.S. federal, Indiana, and other state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local examinations by tax authorities for years before 2010. | |||||||||
ASC Topic 740-10, Accounting for Uncertainty in Income Taxes, prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company did not identify any uncertain tax positions that it believes should be recognized in the consolidated financial statements. | |||||||||
Earnings Per Share | |||||||||
Earnings per share of common stock is based on the weighted-average number of basic shares and dilutive shares outstanding during the year. | |||||||||
The following is a reconciliation of the weighted-average common shares for the basic and diluted earnings per share computations. | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Basic earnings per share | |||||||||
Net income available to common shareholders | $ | 4,324 | $ | 4,593 | |||||
Weighted-average common shares | 4,497,007 | 3,041,666 | |||||||
Basic earnings per common share | $ | 0.96 | $ | 1.51 | |||||
Diluted earnings per share | |||||||||
Net income applicable to diluted earnings per share | $ | 4,324 | $ | 4,593 | |||||
Weighted-average common shares | 4,497,007 | 3,041,666 | |||||||
Dilutive effect of warrants | 2,895 | 5,933 | |||||||
Dilutive effect of equity compensation | 8,093 | 2,402 | |||||||
Weighted-average common and incremental shares | 4,507,995 | 3,050,001 | |||||||
Diluted earnings per common share | $ | 0.96 | $ | 1.51 | |||||
Number of warrants excluded from the calculation of diluted earnings per share as the exercise prices were greater than the average market price of the Company’s common stock during the year | — | — | |||||||
Dividend Restrictions | |||||||||
Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Company or by the Company to shareholders. As of December 31, 2014, approximately $16,686 was available to be paid as dividends to the Company by the Bank without prior approval. | |||||||||
Stock Compensation | |||||||||
The Company has a stock-based compensation plan using the fair value recognition provisions of ASC Topic 718, Compensation - Stock Compensation. The plan is described more fully in Note 9. | |||||||||
Comprehensive Income | |||||||||
Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, which are also recognized as separate components of equity. Accumulated other comprehensive income (loss) at December 31, 2014 and 2013 is solely related to unrealized gains and losses on available for sale securities. | |||||||||
Reclassification adjustments have been determined for all components of other comprehensive income or loss reported in the consolidated statements of changes in shareholders’ equity. | |||||||||
Statements of Cash Flows | |||||||||
Cash and cash equivalents are defined to include cash on-hand, noninterest and interest-bearing amounts due from other banks and federal funds sold. Generally, federal funds are sold for one-day periods. The Company reports net cash flows for customer loan transactions and deposit transactions. | |||||||||
Bank-Owned Life Insurance | |||||||||
Bank-owned life insurance policies are carried at their cash surrender value. The Company recognizes tax-free income from the periodic increases in the cash surrender value of these policies and from death benefits. | |||||||||
Goodwill | |||||||||
Goodwill is tested at least annually for impairment. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the consolidated financial statements. | |||||||||
Reclassifications | |||||||||
Certain reclassifications have been made to the 2013 financial statements to conform to the 2014 financial statement presentation. These reclassifications had no effect on net income. |
Cash_and_Cash_Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2014 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
At December 31, 2014, the Company’s interest-bearing cash accounts at other institutions did not exceed the limits for full FDIC insurance coverage. However, approximately $2,755 and $23,592 of cash is held by the FHLB of Indianapolis and Federal Reserve Bank of Chicago, respectively, which are not federally insured. | |
The Company is required to maintain reserve funds in cash and/or on deposit with the Federal Reserve Bank. The reserve required at December 31, 2014 was $295. |
Securities
Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Securities | Securities | ||||||||||||||||||||||||
Securities at December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||
U.S. Government-sponsored agencies | $ | 13,680 | $ | 129 | $ | (257 | ) | $ | 13,552 | ||||||||||||||||
Mortgage-backed securities | 117,134 | 282 | (368 | ) | 117,048 | ||||||||||||||||||||
Asset-backed securities | 4,913 | — | (1 | ) | 4,912 | ||||||||||||||||||||
Other securities | 2,000 | 6 | — | 2,006 | |||||||||||||||||||||
Total available for sale | $ | 137,727 | $ | 417 | $ | (626 | ) | $ | 137,518 | ||||||||||||||||
2013 | |||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||
U.S. Government-sponsored agencies | $ | 57,569 | $ | 470 | $ | (1,762 | ) | $ | 56,277 | ||||||||||||||||
Municipals | 46,126 | 1,080 | (883 | ) | 46,323 | ||||||||||||||||||||
Mortgage-backed securities | 76,371 | 705 | (1,903 | ) | 75,173 | ||||||||||||||||||||
Other securities | 5,025 | — | (1,389 | ) | 3,636 | ||||||||||||||||||||
Total available for sale | $ | 185,091 | $ | 2,255 | $ | (5,937 | ) | $ | 181,409 | ||||||||||||||||
The carrying value of securities at December 31, 2014 is shown below by their contractual maturity date. Actual maturities will differ because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Within one year | $ | — | $ | — | |||||||||||||||||||||
One to five years | — | — | |||||||||||||||||||||||
Five to ten years | 811 | 801 | |||||||||||||||||||||||
After ten years | 12,869 | 12,751 | |||||||||||||||||||||||
13,680 | 13,552 | ||||||||||||||||||||||||
Mortgage-backed securities | 117,134 | 117,048 | |||||||||||||||||||||||
Asset-backed securities | 4,913 | 4,912 | |||||||||||||||||||||||
Other securities | 2,000 | 2,006 | |||||||||||||||||||||||
Totals | $ | 137,727 | $ | 137,518 | |||||||||||||||||||||
Gross gains of $2,749 and $461, and gross losses of $2,211 and $524 resulting from sales of available for sale securities were realized for 2014 and 2013, respectively. | |||||||||||||||||||||||||
As of December 31, 2014, the fair value of available for sale investment securities pledged as collateral was $130,600. The Company pledged the securities for various types of transactions, including FHLB advances and derivative financial instruments. | |||||||||||||||||||||||||
Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. Total fair value of these investments at December 31, 2014 and 2013 was $86,873 and $109,946, which is approximately 63% and 61%, respectively, of the Company’s available for sale securities portfolio. These declines primarily resulted from fluctuations in market interest rates after purchase. | |||||||||||||||||||||||||
Except as discussed below, management believes the declines in fair value for these securities are temporary. | |||||||||||||||||||||||||
Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced with the resulting loss recognized in net income in the period the other-than-temporary impairment (“OTTI”) is identified. | |||||||||||||||||||||||||
The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2014 and 2013: | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||
U.S. Government-sponsored agencies | $ | 801 | $ | (10 | ) | $ | 8,719 | $ | (247 | ) | $ | 9,520 | $ | (257 | ) | ||||||||||
Mortgage-backed securities | 51,204 | (57 | ) | 21,237 | (311 | ) | 72,441 | (368 | ) | ||||||||||||||||
Asset-backed securities | 4,912 | (1 | ) | — | — | 4,912 | (1 | ) | |||||||||||||||||
$ | 56,917 | $ | (68 | ) | $ | 29,956 | $ | (558 | ) | $ | 86,873 | $ | (626 | ) | |||||||||||
2013 | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||
U.S. Government-sponsored agencies | $ | 43,085 | $ | (1,761 | ) | $ | 14 | $ | (1 | ) | $ | 43,099 | $ | (1,762 | ) | ||||||||||
Municipals | 14,105 | (882 | ) | 351 | (1 | ) | 14,456 | (883 | ) | ||||||||||||||||
Mortgage-backed securities | 47,918 | (1,814 | ) | 838 | (89 | ) | 48,756 | (1,903 | ) | ||||||||||||||||
Other securities | 1,962 | (38 | ) | 1,673 | (1,351 | ) | 3,635 | (1,389 | ) | ||||||||||||||||
$ | 107,070 | $ | (4,495 | ) | $ | 2,876 | $ | (1,442 | ) | $ | 109,946 | $ | (5,937 | ) | |||||||||||
U.S. Government-Sponsored Agencies and Municipal Securities | |||||||||||||||||||||||||
The unrealized losses on the Company’s investments in securities issued by U.S. Government-sponsored agencies and municipal securities were caused by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. The Company expects to recover the amortized cost bases over the term of the securities. Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2014. | |||||||||||||||||||||||||
Mortgage-Backed Securities | |||||||||||||||||||||||||
The unrealized losses on the Company’s investments in mortgage-backed securities were caused by interest rate changes. The Company expects to recover the amortized cost bases over the term of the securities. Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2014. | |||||||||||||||||||||||||
For identified mortgage-backed securities in the investment portfolio, an extensive, quarterly review is conducted to determine if an other-than-temporary impairment has occurred. Various inputs to the economic models are used to determine if an unrealized loss is other-than-temporary. The most significant inputs are voluntary prepayment rates, default rates, liquidation rates, and loss severity. | |||||||||||||||||||||||||
To determine if the unrealized loss for mortgage-backed securities is other-than-temporary, the Company projects total estimated defaults of the underlying assets (mortgages) and multiplies that calculated amount by an estimate of realizable value upon sale in the marketplace (severity) in order to determine the projected collateral loss. The Company also evaluates the current credit enhancement underlying the security to determine the impact on cash flows. If the Company determines that a given mortgage-backed security position will be subject to a write-down or loss, the Company records the expected credit loss as a charge to earnings. | |||||||||||||||||||||||||
Asset-Backed Securities | |||||||||||||||||||||||||
The unrealized losses on the Company’s investments in asset-backed securities were caused by interest rate changes. The Company expects to recover the amortized cost bases over the term of the securities. Because the Company does not intend to sell the securities and it is not likely that the Company will be required to sell the securities before recovery of their amortized cost bases, which may be maturity, the Company does not consider those securities to be other-than-temporarily impaired at December 31, 2014. | |||||||||||||||||||||||||
Other Securities | |||||||||||||||||||||||||
The Company’s unrealized loss on investments in other securities at December 31, 2013 primarily consisted of two investments, both of which were sold in the second quarter of 2014. | |||||||||||||||||||||||||
The first investment was a $2,000 par investment in I-PreTSL I B-2 pooled trust security. The unrealized loss was primarily caused by a sector downgrade by several industry analysts. The determination of no credit loss was calculated by comparing expected discounted cash flows based on performance indicators of the underlying assets in the security to the carrying value of the investment. | |||||||||||||||||||||||||
The second investment was a $2,000 par investment in ALESCO IV Series B2 pooled trust security for which the Company had recognized an other-than-temporary impairment loss. The unrealized loss was primarily caused by: (a) a decrease in performance; and (b) a sector downgrade by several industry analysts. The credit loss was calculated by comparing expected discounted cash flows based on performance indicators of the underlying assets in the security to the carrying value of the investment. | |||||||||||||||||||||||||
The credit losses recognized in earnings during the years ended December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Mortgage-backed and asset-backed securities – private labeled | $ | — | $ | 49 | |||||||||||||||||||||
Total credit losses recognized in earnings | $ | — | $ | 49 | |||||||||||||||||||||
Credit Losses Recognized on Investments | |||||||||||||||||||||||||
Certain debt securities have experienced fair value deterioration due to credit losses, as well as due to other market factors, but are not otherwise other than temporarily impaired. | |||||||||||||||||||||||||
The following table provides information about debt securities for which only a credit loss was recognized in income and other losses are recorded in other comprehensive loss. | |||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||
Credit Losses | |||||||||||||||||||||||||
Credit losses on debt securities held | |||||||||||||||||||||||||
January 1, 2013 | $ | 1,737 | |||||||||||||||||||||||
Realized losses related to OTTI | (603 | ) | |||||||||||||||||||||||
Additions related to OTTI losses not previously recognized | 31 | ||||||||||||||||||||||||
Additions related to increases in previously recognized OTTI losses | 18 | ||||||||||||||||||||||||
December 31, 2013 | 1,183 | ||||||||||||||||||||||||
Realized losses related to OTTI | (1,139 | ) | |||||||||||||||||||||||
Recoveries related to OTTI | (44 | ) | |||||||||||||||||||||||
December 31, 2014 | $ | — | |||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss and the affected line items in the consolidated statements of income during the years ended December 31, 2014 and 2013, were as follows: | |||||||||||||||||||||||||
Details About Accumulated Other Comprehensive Income Components | Amounts Reclassified from | Affected Line Item in the | |||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Statements of Income | ||||||||||||||||||||||||
for the Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Unrealized gains and losses on securities available for sale | |||||||||||||||||||||||||
Gain (loss) realized in earnings | $ | 538 | $ | (63 | ) | Gain (loss) on sale of securities | |||||||||||||||||||
OTTI losses recognized in earnings | — | (49 | ) | Other-than-temporary impairment loss recognized in net income | |||||||||||||||||||||
Total reclassified amount before tax | 538 | (112 | ) | Income Before Income Taxes | |||||||||||||||||||||
Tax expense (benefit) | 191 | (38 | ) | Income Tax Provision | |||||||||||||||||||||
Total reclassifications out of accumulated other comprehensive loss | $ | 347 | $ | (74 | ) | Net Income | |||||||||||||||||||
Loans_Receivable
Loans Receivable | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||
Loans Receivable | Loans Receivable | ||||||||||||||||||||||||||||||||
Categories of loans include: | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Real estate loans | |||||||||||||||||||||||||||||||||
Residential | $ | 279,046 | $ | 191,007 | |||||||||||||||||||||||||||||
Commercial | 273,855 | 142,429 | |||||||||||||||||||||||||||||||
Total real estate loans | 552,901 | 333,436 | |||||||||||||||||||||||||||||||
Commercial loans | 77,232 | 55,168 | |||||||||||||||||||||||||||||||
Consumer loans | 97,094 | 107,562 | |||||||||||||||||||||||||||||||
Total loans | 727,227 | 496,166 | |||||||||||||||||||||||||||||||
Deferred loan origination costs and premiums and discounts on purchased loans | 5,199 | 4,987 | |||||||||||||||||||||||||||||||
Allowance for loan losses | (5,800 | ) | (5,426 | ) | |||||||||||||||||||||||||||||
Net loans receivable | $ | 726,626 | $ | 495,727 | |||||||||||||||||||||||||||||
The risk characteristics of each loan portfolio segment are summarized as follows: | |||||||||||||||||||||||||||||||||
Commercial Real Estate: These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. These loans may also incorporate a personal guarantee. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of property type and geographic location. Management monitors and evaluates commercial real estate loans based on property financial performance, collateral value, and other risk grade criteria. As a general rule, the Company avoids financing special use projects or properties outside of its designated market areas unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner-occupied loans. | |||||||||||||||||||||||||||||||||
Commercial: Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Loans are made for working capital, equipment purchases, or other purposes. Most commercial loans are secured by the assets being financed and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. | |||||||||||||||||||||||||||||||||
Residential Real Estate and Consumer: With respect to residential loans that are secured by 1-4 family residences and are generally owner occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences. The properties securing the Company’s residential loan portfolio are generally geographically diverse as the Company offers these loans on a nationwide basis. Repayment on residential loans can be impacted by changes in property values on residential properties. Consumer loans are secured by consumer assets such as horse trailers, recreational vehicles, or automobiles. Some consumer loans are unsecured, such as small installment loans and certain lines of credit. Repayment of consumer loans is primarily dependent upon the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers in geographically diverse locations throughout the country. | |||||||||||||||||||||||||||||||||
The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Consumer | Total | |||||||||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 1,219 | $ | 2,517 | $ | 819 | $ | 871 | $ | 5,426 | |||||||||||||||||||||||
Provision charged to expense | 182 | 20 | 115 | 32 | 349 | ||||||||||||||||||||||||||||
Losses charged off | (247 | ) | — | (14 | ) | (596 | ) | (857 | ) | ||||||||||||||||||||||||
Recoveries | 38 | 460 | — | 384 | 882 | ||||||||||||||||||||||||||||
Balance, end of year | $ | 1,192 | $ | 2,997 | $ | 920 | $ | 691 | $ | 5,800 | |||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | — | $ | — | $ | 15 | $ | 15 | |||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,192 | $ | 2,997 | $ | 920 | $ | 676 | $ | 5,785 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending balance | $ | 279,046 | $ | 273,855 | $ | 77,232 | $ | 97,094 | $ | 727,227 | |||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 1,139 | $ | 87 | $ | — | $ | 305 | $ | 1,531 | |||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 277,907 | $ | 273,768 | $ | 77,232 | $ | 96,789 | $ | 725,696 | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Consumer | Total | |||||||||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 1,149 | $ | 3,107 | $ | 371 | $ | 1,206 | $ | 5,833 | |||||||||||||||||||||||
Provision charged to expense | 136 | (352 | ) | 378 | 162 | 324 | |||||||||||||||||||||||||||
Losses charged off | (164 | ) | (238 | ) | — | (810 | ) | (1,212 | ) | ||||||||||||||||||||||||
Recoveries | 98 | — | 70 | 313 | 481 | ||||||||||||||||||||||||||||
Balance, end of year | $ | 1,219 | $ | 2,517 | $ | 819 | $ | 871 | $ | 5,426 | |||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 116 | $ | 98 | $ | — | $ | 28 | $ | 242 | |||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,103 | $ | 2,419 | $ | 819 | $ | 843 | $ | 5,184 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending balance | $ | 191,007 | $ | 142,429 | $ | 55,168 | $ | 107,562 | $ | 496,166 | |||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 1,684 | $ | 1,054 | $ | — | $ | 339 | $ | 3,077 | |||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 189,323 | $ | 141,375 | $ | 55,168 | $ | 107,223 | $ | 493,089 | |||||||||||||||||||||||
The Company utilizes a risk grading matrix to assign a risk grade to each of its commercial loans. Loans are graded on a scale of 1 to 9. A description of the general characteristics of the nine risk grades is as follows: | |||||||||||||||||||||||||||||||||
• | “Pass” (Grades 1-5) - Higher quality loans that do not fit any of the other categories described below. | ||||||||||||||||||||||||||||||||
• | “Special Mention” (Grade 6) - Loans that possess some credit deficiency or potential weakness which deserve close attention. | ||||||||||||||||||||||||||||||||
• | “Substandard” (Grade 7) - Loans that possess a defined weakness or weaknesses that jeopardize the liquidation of the debt. Loans characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. | ||||||||||||||||||||||||||||||||
• | “Doubtful” (Grade 8) - Such loans have been placed on nonaccrual status and may be heavily dependent upon collateral possessing a value that is difficult to determine or based upon some near-term event which lacks clear certainty. These loans have all of the weaknesses of those classified as Substandard; however, based on existing conditions, these weaknesses make full collection of the principal balance highly improbable. | ||||||||||||||||||||||||||||||||
• | “Loss” (Grade 9) - Loans that are considered uncollectible and of such little value that continuing to carry them as assets is not warranted. | ||||||||||||||||||||||||||||||||
The following tables present the credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | ||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
Rating: | |||||||||||||||||||||||||||||||||
1-5 Pass | $ | 271,868 | $ | 77,232 | |||||||||||||||||||||||||||||
6 Special Mention | 379 | — | |||||||||||||||||||||||||||||||
7 Substandard | 1,608 | — | |||||||||||||||||||||||||||||||
8 Doubtful | — | — | |||||||||||||||||||||||||||||||
Total | $ | 273,855 | $ | 77,232 | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
Residential | Consumer | ||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
Performing | $ | 279,021 | $ | 96,971 | |||||||||||||||||||||||||||||
Nonaccrual | 25 | 123 | |||||||||||||||||||||||||||||||
Total | $ | 279,046 | $ | 97,094 | |||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | ||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
Rating: | |||||||||||||||||||||||||||||||||
1-5 Pass | $ | 139,052 | $ | 54,035 | |||||||||||||||||||||||||||||
6 Special Mention | 2,323 | 1,133 | |||||||||||||||||||||||||||||||
7 Substandard | 1,054 | — | |||||||||||||||||||||||||||||||
8 Doubtful | — | — | |||||||||||||||||||||||||||||||
Total | $ | 142,429 | $ | 55,168 | |||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||
Residential | Consumer | ||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
Performing | $ | 190,377 | $ | 107,412 | |||||||||||||||||||||||||||||
Nonaccrual | 630 | 150 | |||||||||||||||||||||||||||||||
Total | $ | 191,007 | $ | 107,562 | |||||||||||||||||||||||||||||
The following tables present the Company’s loan portfolio aging analysis as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | 90 Days | Total | Current | Total | Nonaccrual | Total Loans | ||||||||||||||||||||||||||
Days | Days | or More | Past Due | Loans | Loans | 90 Days or | |||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Receivable | More Past | |||||||||||||||||||||||||||||
Due and Accruing | |||||||||||||||||||||||||||||||||
Residential real estate | $ | 161 | $ | — | $ | 57 | $ | 218 | $ | 278,828 | $ | 279,046 | $ | 25 | $ | 57 | |||||||||||||||||
Commercial real estate | — | — | — | — | 273,855 | 273,855 | 87 | — | |||||||||||||||||||||||||
Commercial | — | — | — | — | 77,232 | 77,232 | — | — | |||||||||||||||||||||||||
Consumer | 249 | 56 | 53 | 358 | 96,736 | 97,094 | 123 | 4 | |||||||||||||||||||||||||
Total | $ | 410 | $ | 56 | $ | 110 | $ | 576 | $ | 726,651 | $ | 727,227 | $ | 235 | $ | 61 | |||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | 90 Days | Total | Current | Total | Nonaccrual | Total Loans | ||||||||||||||||||||||||||
Days | Days | or More | Past Due | Loans | Loans | 90 Days or | |||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Receivable | More Past | |||||||||||||||||||||||||||||
Due | |||||||||||||||||||||||||||||||||
and Accruing | |||||||||||||||||||||||||||||||||
Residential real estate | $ | 122 | $ | — | $ | 603 | $ | 725 | $ | 190,282 | $ | 191,007 | $ | 630 | $ | — | |||||||||||||||||
Commercial real estate | — | — | 955 | 955 | 141,474 | 142,429 | 1,054 | — | |||||||||||||||||||||||||
Commercial | — | — | — | — | 55,168 | 55,168 | — | — | |||||||||||||||||||||||||
Consumer | 484 | 45 | 84 | 613 | 106,949 | 107,562 | 150 | 18 | |||||||||||||||||||||||||
Total | $ | 606 | $ | 45 | $ | 1,642 | $ | 2,293 | $ | 493,873 | $ | 496,166 | $ | 1,834 | $ | 18 | |||||||||||||||||
A loan is considered impaired, in accordance with the impairment accounting guidance in ASC Topic 310, Receivables, when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. | |||||||||||||||||||||||||||||||||
The following tables present the Company’s impaired loans as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
Recorded | Unpaid | Specific | Average | Interest | |||||||||||||||||||||||||||||
Balance | Principal | Allowance | Balance | Income | |||||||||||||||||||||||||||||
Balance | |||||||||||||||||||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||||||||||||||
Residential real estate loans | $ | 1,139 | $ | 1,146 | $ | — | $ | 1,266 | $ | 32 | |||||||||||||||||||||||
Commercial real estate loans | 87 | 87 | — | 666 | 5 | ||||||||||||||||||||||||||||
Commercial loans | — | — | — | — | — | ||||||||||||||||||||||||||||
Consumer loans | 268 | 338 | — | 380 | 37 | ||||||||||||||||||||||||||||
Total | $ | 1,494 | $ | 1,571 | $ | — | $ | 2,312 | $ | 74 | |||||||||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||||||||||||||
Residential real estate loans | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Commercial real estate loans | — | — | — | — | — | ||||||||||||||||||||||||||||
Commercial loans | — | — | — | — | — | ||||||||||||||||||||||||||||
Consumer loans | 37 | 51 | 15 | 40 | 4 | ||||||||||||||||||||||||||||
Total | $ | 37 | $ | 51 | $ | 15 | $ | 40 | $ | 4 | |||||||||||||||||||||||
Total impaired loans | |||||||||||||||||||||||||||||||||
Residential real estate loans | $ | 1,139 | $ | 1,146 | $ | — | $ | 1,266 | $ | 32 | |||||||||||||||||||||||
Commercial real estate loans | 87 | 87 | — | 666 | 5 | ||||||||||||||||||||||||||||
Commercial loans | — | — | — | — | — | ||||||||||||||||||||||||||||
Consumer loans | 305 | 389 | 15 | 420 | 41 | ||||||||||||||||||||||||||||
Total | $ | 1,531 | $ | 1,622 | $ | 15 | $ | 2,352 | $ | 78 | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||
Recorded | Unpaid | Specific | Average | Interest | |||||||||||||||||||||||||||||
Balance | Principal | Allowance | Balance | Income | |||||||||||||||||||||||||||||
Balance | |||||||||||||||||||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||||||||||||||
Residential real estate loans | $ | 1,551 | $ | 1,842 | $ | — | $ | 1,894 | $ | 29 | |||||||||||||||||||||||
Commercial real estate loans | 956 | 2,310 | — | 239 | — | ||||||||||||||||||||||||||||
Commercial loans | — | — | — | — | — | ||||||||||||||||||||||||||||
Consumer loans | 271 | 326 | — | 315 | 28 | ||||||||||||||||||||||||||||
Total | $ | 2,778 | $ | 4,478 | $ | — | $ | 2,448 | $ | 57 | |||||||||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||||||||||||||
Residential real estate loans | $ | 133 | $ | 141 | $ | 116 | $ | 66 | $ | 3 | |||||||||||||||||||||||
Commercial real estate loans | 98 | 98 | 98 | 1,617 | 5 | ||||||||||||||||||||||||||||
Commercial loans | — | — | — | — | — | ||||||||||||||||||||||||||||
Consumer loans | 68 | 80 | 28 | 78 | 2 | ||||||||||||||||||||||||||||
Total | $ | 299 | $ | 319 | $ | 242 | $ | 1,761 | $ | 10 | |||||||||||||||||||||||
Total impaired loans | |||||||||||||||||||||||||||||||||
Residential real estate loans | $ | 1,684 | $ | 1,983 | $ | 116 | $ | 1,960 | $ | 32 | |||||||||||||||||||||||
Commercial real estate loans | 1,054 | 2,408 | 98 | 1,856 | 5 | ||||||||||||||||||||||||||||
Commercial loans | — | — | — | — | — | ||||||||||||||||||||||||||||
Consumer loans | 339 | 406 | 28 | 393 | 30 | ||||||||||||||||||||||||||||
Total | $ | 3,077 | $ | 4,797 | $ | 242 | $ | 4,209 | $ | 67 | |||||||||||||||||||||||
In the course of working with troubled borrowers, the Company may choose to restructure the contractual terms of certain loans in an effort to work out an alternative payment schedule with the borrower in order to optimize the collectability of the loan. Any loan modified is reviewed by the Company to identify if a TDR has occurred, which is when the Company grants a concession to the borrower that it would not otherwise consider based on economic or legal reasons related to a borrower’s financial difficulties. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status or the loan may be restructured to secure additional collateral and/or guarantees to support the debt, or a combination of the two. | |||||||||||||||||||||||||||||||||
Loans classified as a TDR during the years ended December 31, 2014 and 2013 are shown in the tables below. | |||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
Modifications | |||||||||||||||||||||||||||||||||
Number of Contracts | Recorded | Recorded | |||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||
Before | After | ||||||||||||||||||||||||||||||||
Consumer | 1 | $ | 21 | $ | 21 | ||||||||||||||||||||||||||||
Total | 1 | $ | 21 | $ | 21 | ||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||
Modifications | |||||||||||||||||||||||||||||||||
Number of Contracts | Recorded | Recorded | |||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||
Before | After | ||||||||||||||||||||||||||||||||
Consumer | 4 | $ | 25 | $ | 25 | ||||||||||||||||||||||||||||
Total | 4 | $ | 25 | $ | 25 | ||||||||||||||||||||||||||||
There were no TDR loans which had payment defaults during the years ended December 31, 2014 and 2013. Default occurs when a loan is 90 days or more past due or transferred to nonaccrual status within 12 months of restructuring. | |||||||||||||||||||||||||||||||||
The following tables summarize loan modifications that occurred during the years ended December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
Payment Extension | Rate Reduction | ||||||||||||||||||||||||||||||||
Number | Amount | Number | Amount | ||||||||||||||||||||||||||||||
Consumer | 1 | $ | 21 | — | $ | — | |||||||||||||||||||||||||||
Total | 1 | $ | 21 | — | $ | — | |||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||
Payment Extension | Rate Reduction | ||||||||||||||||||||||||||||||||
Number | Amount | Number | Amount | ||||||||||||||||||||||||||||||
Consumer | 2 | $ | 2 | 2 | $ | 23 | |||||||||||||||||||||||||||
Total | 2 | $ | 2 | 2 | $ | 23 | |||||||||||||||||||||||||||
Payment extensions and rate reductions have proved to be successful in optimizing the overall collectability of the loan. |
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Premises and Equipment | Premises and Equipment | ||||||||
Premises and equipment at December 31, 2014 and 2013 consists of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Land | $ | 2,500 | $ | 2,500 | |||||
Building and improvements | 3,018 | 2,858 | |||||||
Furniture and equipment | 5,277 | 4,883 | |||||||
Less: accumulated depreciation | (3,734 | ) | (3,107 | ) | |||||
$ | 7,061 | $ | 7,134 | ||||||
Goodwill
Goodwill | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | Goodwill | |||
The change in the carrying amount of goodwill for the two years ended December 31, 2014 was: | ||||
Balance as of January 1, 2013 | $ | 4,687 | ||
Changes in goodwill during the year | — | |||
Balance as of December 31, 2013 | 4,687 | |||
Changes in goodwill during the year | — | |||
Balance as of December 31, 2014 | $ | 4,687 | ||
Goodwill is tested for impairment on an annual basis as of August 31, or whenever events or changes in circumstances indicate the carrying amount of goodwill exceeds its implied fair value. No events or changes in circumstances have occurred since the August 31, 2014 annual impairment test that would suggest it was more likely than not goodwill impairment existed. |
Deposits
Deposits | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Banking and Thrift [Abstract] | |||||||||
Deposits | Deposits | ||||||||
Deposits at December 31, 2014 and 2013 are as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Regular savings accounts | $ | 20,776 | $ | 14,330 | |||||
Noninterest-bearing demand deposit accounts | 21,790 | 19,386 | |||||||
Interest-bearing demand deposit accounts | 74,238 | 73,748 | |||||||
Money market accounts | 267,046 | 255,169 | |||||||
Certificates of deposits | 361,202 | 292,685 | |||||||
Brokered deposits | 13,546 | 17,777 | |||||||
Total deposits | $ | 758,598 | $ | 673,095 | |||||
Certificates of deposit in the amount of $100 or more totaled approximately $294,386 and $237,273 at December 31, 2014 and 2013, respectively. | |||||||||
A summary of certificate accounts by scheduled maturities at December 31, 2014 is as follows: | |||||||||
2015 | $ | 223,078 | |||||||
2016 | 108,238 | ||||||||
2017 | 19,213 | ||||||||
2018 | 14,776 | ||||||||
2019 | 9,435 | ||||||||
Thereafter | 8 | ||||||||
$ | 374,748 | ||||||||
FHLB_Advances
FHLB Advances | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Banking and Thrift [Abstract] | ||||
FHLB Advances | FHLB Advances | |||
The Company has outstanding FHLB advances of $106,897 and $31,793 as of December 31, 2014 and 2013, respectively. As of December 31, 2014, the Company has $67,000 of fixed rate advances outstanding. These fixed rate advances are subject to restrictions or penalties in the event of prepayment. The Company also has $40,000 of variable rate advances outstanding as of December 31, 2014. As of December 31, 2014, the interest rates on the Company’s outstanding FHLB advances ranged from 0.24% to 4.57%, with a weighted average interest rate of 1.58%. All advances are collateralized by mortgage loans pledged and held by the Company and investment securities pledged by the Company and held in safekeeping with the FHLB. Mortgage loans pledged were approximately $212,559 and $96,195 as of December 31, 2014 and 2013, respectively, and the fair value of investment securities pledged to the FHLB was approximately $128,185 and $73,698 as of December 31, 2014 and 2013, respectively. | ||||
The Company’s FHLB advances are scheduled to mature according to the following schedule: | ||||
Amount | ||||
2015 | $ | 101,000 | ||
2016 | 3,000 | |||
2017 | — | |||
2018 | 3,000 | |||
Thereafter | — | |||
107,000 | ||||
Deferred prepayment penalties on advance restructure | (103 | ) | ||
$ | 106,897 | |||
Benefit_Plans
Benefit Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||
Benefit Plans | Benefit Plans | |||||||||||||
401(k) Plan | ||||||||||||||
The Company has a 401(k) plan established for substantially all full-time employees, as defined. Employee contributions are limited to the maximum established by the Internal Revenue Service on an annual basis. The Company has elected to match contributions equal to 100% of the first 1% of employee deferrals and then 50% on deferrals over 1% up to a maximum of 6% of an individual’s total eligible salary, as defined by the plan. Employer-matching contributions begin vesting after one year at a rate of 50% per year of employment and are fully vested after the completion of two years of service. Contributions each year during the years ended December 31, 2014 and 2013, totaled approximately $268 and $252, respectively. | ||||||||||||||
Employment Agreement | ||||||||||||||
The Company has entered into an employment agreement with its Chief Executive Officer that provides for the continuation of salary and certain benefits for a specified period of time under certain conditions. Under the terms of the agreement, these payments could occur in the event of a change in control of the Company, as defined, along with other specific conditions. | ||||||||||||||
2013 Equity Incentive Plan | ||||||||||||||
The 2013 Equity Incentive Plan (“2013 Plan”) authorizes the issuance of 750,000 shares of the Company’s common stock in the form of equity-based awards to employees, directors, and other eligible persons. The 2013 Plan replaced the 2006 Stock Option Plan, which had 595,500 shares of common stock available for issuance when the 2013 Plan became effective. Under the terms of the 2013 Plan, the pool of shares available for issuance may be used for available types of equity awards under the 2013 Plan, which includes stock options, stock appreciation rights, restricted stock awards, stock unit awards, and other stock-based awards. All employees, consultants and advisors of the Company or any subsidiary, as well as all non-employee directors of the Company, are eligible to receive awards under the 2013 Plan. | ||||||||||||||
The Company recorded $507 and $387 of share-based compensation expense for the years ended December 31, 2014 and 2013, respectively, related to awards made under the 2013 Plan. | ||||||||||||||
The following table summarizes the status of the Company’s restricted stock and deferred stock unit awards as of December 31, 2014, and activity for the year ended December 31, 2014: | ||||||||||||||
Restricted Stock Awards | Weighted-Average Grant Date Fair Value Per Share | Deferred Stock Units | Weighted-Average Grant Date Fair Value Per Unit | |||||||||||
Nonvested at January 1, 2014 | 46,232 | $ | 25.09 | — | $ | — | ||||||||
Granted | 4,445 | 22.5 | 897 | 22.47 | ||||||||||
Vested | (19,856 | ) | 24.51 | (897 | ) | 22.47 | ||||||||
Forfeited | (10,044 | ) | 25.09 | — | — | |||||||||
Nonvested at December 31, 2014 | 20,777 | $ | 25.09 | — | $ | — | ||||||||
As of December 31, 2014, the total unrecognized compensation cost related to nonvested awards was $135, with a weighted-average expense recognition period of 1.0 years. | ||||||||||||||
Directors Deferred Stock Plan | ||||||||||||||
Until January 1, 2014, the Company had a stock compensation plan for members of the Board of Directors (“Directors Deferred Stock Plan”). The Company reserved 180,000 shares of common stock that could have been issued pursuant to the Directors Deferred Stock Plan. The plan provided directors the option to elect to receive up to 100% of their annual retainer in either common stock or deferred stock rights. Deferred stock rights were to be settled in common stock following the end of the deferral period payable on the basis of one share of common stock for each deferred stock right. | ||||||||||||||
For the year ended December 31, 2013, the Company recorded $205 of expense related to awards made from the Directors Deferred Stock Plan. The Company recognized compensation expense ratably over the vesting period based upon the fair value of the stock on the grant date. The Directors Deferred Stock Plan ended on December 31, 2013. On January 1, 2014, the Company issued tandem awards of shares of restricted stock and deferred stock units to each of its non-employee directors under the 2013 Plan. Each award had a grant date fair value of $20 and represents the non-cash component of the compensation payable for the directors’ service during 2014. The economic terms of the awards are substantially the same as the non-cash retainer compensation the non-employee directors received for 2013 in the form of director deferred stock rights. | ||||||||||||||
The following is an analysis of deferred stock rights and common stock related to the Directors Deferred Stock Plan for the year ended December 31, 2014: | ||||||||||||||
Deferred | ||||||||||||||
Rights | ||||||||||||||
Outstanding, beginning of year | 79,676 | |||||||||||||
Granted | 852 | |||||||||||||
Exercised | — | |||||||||||||
Outstanding, end of year | 80,528 | |||||||||||||
All deferred stock rights granted during 2014 were additional rights issued in lieu of cash dividends payable on outstanding deferred stock rights. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Taxes | Income Taxes | ||||||||
The provision (credit) for income taxes consists of the following: | |||||||||
2014 | 2013 | ||||||||
Current | $ | 3,655 | $ | (693 | ) | ||||
Deferred | (1,529 | ) | 2,259 | ||||||
Total | $ | 2,126 | $ | 1,566 | |||||
Income tax provision (credit) is reconciled to the 34% statutory rate applied to pre-tax income as follows: | |||||||||
2014 | 2013 | ||||||||
Statutory rate times pre-tax income | $ | 2,193 | $ | 2,094 | |||||
Add (subtract) the tax effect of: | |||||||||
Income from tax-exempt securities | (31 | ) | (514 | ) | |||||
State income tax, net of federal tax effect | 63 | 33 | |||||||
Bank-owned life insurance | (132 | ) | (135 | ) | |||||
Other differences | 33 | 88 | |||||||
Total income taxes | $ | 2,126 | $ | 1,566 | |||||
The net deferred tax asset at December 31 consists of the following: | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets (liabilities) | |||||||||
Allowance for loan losses | $ | 2,073 | $ | 1,930 | |||||
Unrealized loss on available for sale securities | 75 | 1,310 | |||||||
Fair value adjustments | (117 | ) | (1,840 | ) | |||||
Depreciation | (590 | ) | (270 | ) | |||||
Deferred compensation | 262 | 510 | |||||||
Loan origination costs | (288 | ) | (209 | ) | |||||
Prepaid assets | (207 | ) | (205 | ) | |||||
Accrued payroll | 458 | 155 | |||||||
Other | 546 | 536 | |||||||
Total deferred tax assets, net | $ | 2,212 | $ | 1,917 | |||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions |
In the normal course of business, the Company may enter into transactions with various related parties. In management’s opinion, such loans, other extensions of credit, and deposits were made in the ordinary course of business and were made on substantially the same terms (including interest rates and collateral) as those prevailing at the time for comparable transactions with other persons. Further, in management’s opinion, these loans did not involve more than normal risk of collectability or present other unfavorable features. | |
Deposits from related parties held by the Company at December 31, 2014 and 2013 totaled $13,713 and $13,904, respectively. |
Regulatory_Capital_Requirement
Regulatory Capital Requirements | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Banking and Thrift [Abstract] | ||||||||||||||||||||||
Regulatory Capital Requirements | Regulatory Capital Requirements | |||||||||||||||||||||
The Company and the Bank are each subject to regulatory capital requirements administered by federal banking regulatory agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items. These capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the regulators of the Company and Bank could require adjustments to regulatory capital not reflected in these consolidated financial statements. | ||||||||||||||||||||||
Quantitative measures that have been established by regulation to ensure capital adequacy require the Company to maintain minimum capital amounts and ratios (set forth in the table below) of Total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined). | ||||||||||||||||||||||
To be categorized as well capitalized, the Bank must maintain minimum Total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table. As of December 31, 2014, the most recent notification from the FDIC 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 Bank’s categories. | ||||||||||||||||||||||
Actual | Minimum | Minimum to be | ||||||||||||||||||||
Capital | Well Capitalized | |||||||||||||||||||||
Requirement | Under Prompt | |||||||||||||||||||||
Corrective Actions | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||
Total capital (to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | $ | 101,033 | 13.8 | % | $ | 58,777 | 8 | % | N/A | N/A | ||||||||||||
Bank | 89,177 | 12.2 | % | 58,600 | 8 | % | $ | 73,250 | 10 | % | ||||||||||||
Tier 1 capital (to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | 92,233 | 12.6 | % | 29,388 | 4 | % | N/A | N/A | ||||||||||||||
Bank | 83,377 | 11.4 | % | 29,300 | 4 | % | 43,950 | 6 | % | |||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||||
Consolidated | 92,233 | 9.9 | % | 37,381 | 4 | % | N/A | N/A | ||||||||||||||
Bank | 83,377 | 8.9 | % | 37,303 | 4 | % | 46,629 | 5 | % | |||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||
Total capital (to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | $ | 96,981 | 17.1 | % | $ | 45,386 | 8 | % | N/A | N/A | ||||||||||||
Bank | 77,862 | 13.8 | % | 45,287 | 8 | % | $ | 56,609 | 10 | % | ||||||||||||
Tier 1 capital (to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | 88,555 | 15.6 | % | 22,693 | 4 | % | N/A | N/A | ||||||||||||||
Bank | 72,436 | 12.8 | % | 22,644 | 4 | % | 33,965 | 6 | % | |||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||||
Consolidated | 88,555 | 11.7 | % | 30,385 | 4 | % | N/A | N/A | ||||||||||||||
Bank | 72,436 | 9.6 | % | 30,329 | 4 | % | 37,911 | 5 | % | |||||||||||||
Commitments_and_Credit_Risk
Commitments and Credit Risk | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Credit Risk | Commitments and Credit Risk | |||
In the normal course of business, the Company makes various commitments to extend credit which are not reflected in the accompanying consolidated financial statements. At December 31, 2014 and 2013, the Company had outstanding loan commitments totaling approximately $110,393 and $49,100, respectively. | ||||
As of December 31, 2014, the Company leased office facilities under various operating leases. The leases may be subject to additional payments based on building operating costs and property taxes in excess of specified amounts. The Company recorded rental expense for all operating leases of $495 and $468 for the years ended December 31, 2014 and 2013, respectively. Future minimum cash lease payments are as follows: | ||||
Amount | ||||
2015 | $ | 611 | ||
2016 | 557 | |||
2017 | 517 | |||
2018 | 526 | |||
2019 | 534 | |||
Thereafter | 634 | |||
$ | 3,379 | |||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | ||||||||||||||||
ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also specifies a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |||||||||||||||||
Level 1 | Quoted prices in active markets for identical assets or liabilities | ||||||||||||||||
Level 2 | 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 for substantially the full term of the assets or liabilities | ||||||||||||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities | ||||||||||||||||
Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. | |||||||||||||||||
Securities | |||||||||||||||||
Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid mutual funds. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. | |||||||||||||||||
Level 2 securities include U.S. Government-sponsored agencies, mortgage-and asset-backed securities, state and municipal securities, and certain corporate securities. Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for specific investment securities but rather relying on the investment securities’ relationship to other benchmark quoted investment securities. | |||||||||||||||||
In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy and include certain other securities. Fair values are calculated using discounted cash flows. Discounted cash flows are calculated based off of the anticipated future cash flows updated to incorporate loss severities and volatility. Rating agency and industry research reports as well as default and deferral activity are reviewed and incorporated into the calculation. | |||||||||||||||||
Loans Held-for-Sale | |||||||||||||||||
The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). | |||||||||||||||||
Forward Contracts | |||||||||||||||||
The fair values of forward contracts on to-be-announced securities are determined using quoted prices in active markets, or benchmarked thereto (Level 1). | |||||||||||||||||
Interest Rate Lock Commitments | |||||||||||||||||
The fair value of interest rate lock commitments (“IRLCs”) are determined using the projected sale price of individual loans based on changes in market interest rates, projected pull-through rates (the probability that an IRLC will ultimately result in an originated loan), the reduction in the value of the applicant’s option due to the passage of time, and the remaining origination costs to be incurred based on management’s estimate of market costs (Level 3). | |||||||||||||||||
The following tables present the fair value measurements of assets and liabilities recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2014 and 2013: | |||||||||||||||||
2014 | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Fair | Quoted Prices | Significant | Significant | ||||||||||||||
Value | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
U.S. Government-sponsored agencies | $ | 13,552 | $ | — | $ | 13,552 | $ | — | |||||||||
Mortgage-backed securities | 117,048 | — | 117,048 | — | |||||||||||||
Asset-backed securities | 4,912 | — | 4,912 | — | |||||||||||||
Other securities | 2,006 | 2,006 | — | — | |||||||||||||
Total available for sale securities | $ | 137,518 | $ | 2,006 | $ | 135,512 | $ | — | |||||||||
Loans held-for-sale (mandatory pricing agreements) | 32,618 | — | 32,618 | — | |||||||||||||
Forward contracts | (405 | ) | (405 | ) | — | — | |||||||||||
Interest rate lock commitments | 521 | — | — | 521 | |||||||||||||
2013 | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Fair | Quoted Prices | Significant | Significant | ||||||||||||||
Value | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
U.S. Government-sponsored agencies | $ | 56,277 | $ | — | $ | 56,277 | $ | — | |||||||||
Municipals | 46,323 | — | 46,323 | — | |||||||||||||
Mortgage-backed securities | 75,173 | — | 75,173 | — | |||||||||||||
Other securities | 3,636 | 1,963 | — | 1,673 | |||||||||||||
Total available for sale securities | $ | 181,409 | $ | 1,963 | $ | 177,773 | $ | 1,673 | |||||||||
Loans held-for-sale (mandatory pricing agreements) | 24,254 | — | 24,254 | — | |||||||||||||
Forward contracts | 227 | 227 | — | — | |||||||||||||
Interest rate lock commitments | 79 | — | — | 79 | |||||||||||||
The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying consolidated balance sheets using significant unobservable (Level 3) inputs: | |||||||||||||||||
Securities | Interest Rate | ||||||||||||||||
Available for | Lock | ||||||||||||||||
Sale | Commitments | ||||||||||||||||
Balance, January 1, 2013 | $ | 840 | $ | — | |||||||||||||
Total gains or losses for the period: | |||||||||||||||||
Included in Mortgage banking activities | — | 79 | |||||||||||||||
Included in other comprehensive income | 833 | — | |||||||||||||||
Balance, December 31, 2013 | 1,673 | 79 | |||||||||||||||
Total gains or losses for the period: | |||||||||||||||||
Included in Mortgage banking activities | — | 442 | |||||||||||||||
Included in Gain (loss) on sale of securities | (259 | ) | — | ||||||||||||||
Included in other comprehensive income | 1,333 | — | |||||||||||||||
Sales | (2,747 | ) | — | ||||||||||||||
Balance, December 31, 2014 | $ | — | $ | 521 | |||||||||||||
Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. | |||||||||||||||||
Impaired Loans (Collateral Dependent) | |||||||||||||||||
Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral, less costs to sell, for collateral dependent loans. | |||||||||||||||||
If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. | |||||||||||||||||
Impaired loans that are collateral dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method. | |||||||||||||||||
The following tables present the fair value measurements recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2014 and 2013: | |||||||||||||||||
2014 | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Fair | Quoted Prices | Significant | Significant | ||||||||||||||
Value | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Impaired loans | $ | — | $ | — | $ | — | $ | — | |||||||||
2013 | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Fair | Quoted Prices | Significant | Significant | ||||||||||||||
Value | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Impaired loans | $ | 137 | $ | — | $ | — | $ | 137 | |||||||||
Unobservable (Level 3) Inputs | |||||||||||||||||
The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill. | |||||||||||||||||
Fair Value at | Valuation | Unobservable | Range | ||||||||||||||
December 31, | Technique | Inputs | |||||||||||||||
2014 | |||||||||||||||||
IRLCs | $ | 521 | Discounted cash flow | Loan closing rates | 40 - 95% | ||||||||||||
Fair Value at | Valuation | Unobservable | Range | ||||||||||||||
December 31, | Technique | Inputs | |||||||||||||||
2013 | |||||||||||||||||
Other securities | $ | 1,673 | Discounted cash flow | Discount margin | 6% - 12.5% | ||||||||||||
Cumulative default % | 2% - 100% | ||||||||||||||||
Loss given default % | 85% - 100% | ||||||||||||||||
Cumulative prepayment % | 0% - 100% | ||||||||||||||||
Collateral dependent impaired loans | $ | 137 | Fair value of collateral | Discount for type of property and current market conditions | 0% - 54% | ||||||||||||
IRLCs | $ | 79 | Discounted cash flow | Loan closing rates | 53% - 97% | ||||||||||||
The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying consolidated balance sheets at amounts other than fair value: | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
For these instruments, the carrying amount is a reasonable estimate of fair value. | |||||||||||||||||
Interest-Bearing Time Deposits | |||||||||||||||||
The fair value of these financial instruments approximates carrying value. | |||||||||||||||||
Loans Held-For-Sale | |||||||||||||||||
The fair value of these financial instruments approximates carrying value. | |||||||||||||||||
Loans Receivable | |||||||||||||||||
The fair value of loans receivable is estimated by discounting future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and remaining maturities. | |||||||||||||||||
Accrued Interest Receivable | |||||||||||||||||
The fair value of these financial instruments approximates carrying value. | |||||||||||||||||
Federal Home Loan Bank Stock | |||||||||||||||||
The fair value approximates carrying value. | |||||||||||||||||
Deposits | |||||||||||||||||
The fair value of noninterest-bearing and interest-bearing demand deposits, savings and money market accounts are the amounts payable as of the reporting date. The fair value of fixed maturity certificates of deposit and brokered deposits are estimated using rates currently offered for deposits of similar remaining maturities. | |||||||||||||||||
Advances from Federal Home Loan Bank | |||||||||||||||||
The fair value of fixed rate advances is estimated using rates currently offered for similar remaining maturities. The carrying value of variable rate advances approximates fair value. | |||||||||||||||||
Accrued Interest Payable | |||||||||||||||||
The fair value of these financial instruments approximates carrying value. | |||||||||||||||||
Subordinated Debt | |||||||||||||||||
The fair value of subordinated debt is estimated using discounted cash flow analysis, based on current borrowing rates for similar types of debt instruments. | |||||||||||||||||
Commitments | |||||||||||||||||
The fair value of commitments to extend credit are based on fees currently charged to enter into similar agreements with similar maturities and interest rates. The Company determined that the fair value of commitments was zero based on the contractual value of outstanding commitments at December 31, 2014 and 2013. | |||||||||||||||||
The following schedule includes the carrying value and estimated fair value of all financial assets and liabilities at December 31, 2014 and 2013: | |||||||||||||||||
2014 | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Carrying | Quoted Prices | Significant | Significant | ||||||||||||||
Amount | In Active | Other | Unobservable | ||||||||||||||
Market for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Cash and cash equivalents | $ | 28,289 | $ | 28,289 | $ | — | $ | — | |||||||||
Interest-bearing time deposits | 2,000 | 2,000 | — | — | |||||||||||||
Loans held-for-sale (best efforts pricing agreements) | 2,053 | — | 2,053 | — | |||||||||||||
Loans receivable | 732,426 | — | — | 733,538 | |||||||||||||
Accrued interest receivable | 2,833 | 2,833 | — | — | |||||||||||||
Federal Home Loan Bank of Indianapolis stock | 5,350 | — | 5,350 | — | |||||||||||||
Deposits | 758,598 | 383,847 | — | 377,067 | |||||||||||||
Advances from Federal Home Loan Bank | 106,897 | — | 107,743 | — | |||||||||||||
Subordinated debt | 2,873 | — | 3,094 | — | |||||||||||||
Accrued interest payable | 97 | 97 | — | — | |||||||||||||
2013 | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Carrying | Quoted Prices | Significant | Significant | ||||||||||||||
Amount | In Active | Other | Unobservable | ||||||||||||||
Market for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Cash and cash equivalents | $ | 53,690 | $ | 53,690 | $ | — | $ | — | |||||||||
Interest-bearing time deposits | 2,500 | 2,500 | — | — | |||||||||||||
Loans held-for-sale (best efforts pricing agreements) | 4,356 | — | 4,356 | — | |||||||||||||
Loans receivable | 501,153 | — | — | 500,447 | |||||||||||||
Accrued interest receivable | 2,904 | 2,904 | — | — | |||||||||||||
Federal Home Loan Bank of Indianapolis stock | 2,943 | — | 2,943 | — | |||||||||||||
Deposits | 673,095 | 362,634 | — | 315,179 | |||||||||||||
Advances from Federal Home Loan Bank | 31,793 | — | 33,415 | — | |||||||||||||
Subordinated debt | 2,789 | — | 2,978 | — | |||||||||||||
Accrued interest payable | 102 | 102 | — | — | |||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments | ||||||||||||||||
The Company uses derivative financial instruments to help manage exposure to interest rate risk and the effects that changes in interest rates may have on net income and the fair value of assets and liabilities. The Company enters into forward contracts for the future delivery of mortgage loans to third party investors and enters into IRLCs with potential borrowers to fund specific mortgage loans that will be sold into the secondary market. The forward contracts are entered into in order to economically hedge the effect of changes in interest rates resulting from the Company’s commitment to fund the loans. | |||||||||||||||||
All of these items are considered derivatives, but are not designated as accounting hedges, and are recorded at fair value with changes in fair value reflected in noninterest income on the consolidated statements of income. The fair value of derivative instruments with a positive fair value are reported in accrued income and other assets in the consolidated balance sheets while derivative instruments with a negative fair value are reported in accrued expenses and other liabilities in the consolidated balance sheets. | |||||||||||||||||
The notional amount and fair value of IRLCs and forward contracts utilized by the Company were as follows: | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Notional | Fair | Notional | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Asset Derivatives | |||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||
IRLCs | $ | 29,967 | $ | 521 | $ | 20,752 | $ | 79 | |||||||||
Forward contracts | — | — | 30,628 | 227 | |||||||||||||
Liability Derivatives | |||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||
Forward contracts | $ | 55,102 | $ | (405 | ) | $ | — | $ | — | ||||||||
Fair values of derivative financial instruments were estimated using changes in mortgage interest rates from the date the Company entered into the IRLC and the balance sheet date. Periodic changes in the fair value of the derivative financial instruments on the consolidated statements of income for the twelve months ended December 31, 2014 and 2013 were as follows: | |||||||||||||||||
Amount of gain / (loss) recognized in the twelve months ended | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Asset Derivatives | |||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||
IRLCs | $ | 442 | $ | 79 | |||||||||||||
Forward contracts | — | 227 | |||||||||||||||
Liability Derivatives | |||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||
Forward contracts | $ | (632 | ) | $ | — | ||||||||||||
Subordinated_Debenture
Subordinated Debenture | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Subordinated Debenture | Subordinated Debenture |
On June 28, 2013, the Company entered into a subordinated debenture purchase agreement with a third party and issued a subordinated debenture in the principal amount of $3,000 which bears interest at a fixed annual rate of 8.00% and is scheduled to mature on June 28, 2021; however, the Company can repay the debenture without premium or penalty at any time after June 28, 2016. The debenture qualifies for treatment as Tier 2 capital for regulatory capital purposes. The purchase agreement and the debenture contain customary subordination provisions and events of default; however, the right of the investor to accelerate the payment of the debenture is limited to bankruptcy or insolvency. | |
As partial inducement for the third party to purchase the debenture, the Company issued to the third party a warrant to purchase up to 48,750 shares of the Company’s common stock at an initial per share exercise price equal to $19.33. The warrant became exercisable on June 28, 2014, and unless previously exercised, will expire on June 28, 2021. The Company has the right to force an exercise of the warrant after the debenture has been repaid in full if the 20-day volume-weighted average price of a share of its common stock exceeds $30.00. | |
The Company used the Black-Scholes option pricing model to assign a fair value of $255 to the warrant as of June 28, 2013. The following assumptions were used to value the warrant: a risk-free interest rate of 0.66% per the U.S. Treasury yield curve in effect at the date of issuance, an expected dividend yield of 1.19% calculated using the dividend rate and stock price at the date of the issuance, and an expected volatility of 34% based on the estimated volatility of the Company’s stock over the expected term of the warrant, which is estimated to be three years. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity |
In 2013, the Company completed a public offering of 1.587 million shares of its common stock and received net proceeds of approximately $29,101. |
Condensed_Financial_Informatio
Condensed Financial Information (Parent Company Only) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||
Condensed Financial Information (Parent Company Only) | Condensed Financial Information (Parent Company Only) | ||||||||
Presented below is condensed financial information as to financial position, results of operations, and cash flows of the Company: | |||||||||
Condensed Balance Sheets | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Cash and cash equivalents | $ | 10,056 | $ | 17,983 | |||||
Investment in common stock of subsidiaries | 87,929 | 74,789 | |||||||
Premises and equipment, net | 4,542 | 4,524 | |||||||
Accrued income and other assets | 1,678 | 967 | |||||||
Total assets | $ | 104,205 | $ | 98,263 | |||||
Liabilities and Shareholders’ Equity | |||||||||
Subordinated debt | $ | 2,873 | $ | 2,789 | |||||
Note payable to the Bank | 4,000 | 4,000 | |||||||
Accrued expenses and other liabilities | 547 | 566 | |||||||
Total liabilities | 7,420 | 7,355 | |||||||
Shareholders’ equity | 96,785 | 90,908 | |||||||
Total liabilities and shareholders’ equity | $ | 104,205 | $ | 98,263 | |||||
Condensed Statements of Income | |||||||||
Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Income | |||||||||
Dividends from subsidiaries | $ | — | $ | 500 | |||||
Total income | — | 500 | |||||||
Expenses | |||||||||
Interest on borrowings | 216 | 142 | |||||||
Professional services | 777 | 859 | |||||||
Premises & equipment | 521 | 252 | |||||||
Other expenses | 504 | 551 | |||||||
Total expenses | 2,018 | 1,804 | |||||||
Loss Before Income Tax and Equity in Undistributed Net Income of Subsidiaries | (2,018 | ) | (1,304 | ) | |||||
Income Tax Benefit | (756 | ) | (596 | ) | |||||
Loss Before Equity in Undistributed Net Income of Subsidiaries | (1,262 | ) | (708 | ) | |||||
Equity in Undistributed Net Income of Subsidiaries | 5,586 | 5,301 | |||||||
Net Income | $ | 4,324 | $ | 4,593 | |||||
Condensed Statements of Comprehensive Income | |||||||||
Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Net income | $ | 4,324 | $ | 4,593 | |||||
Other comprehensive income (loss) | |||||||||
Net unrealized holding gains (losses) on securities available for sale | 3,260 | (6,462 | ) | ||||||
Reclassification adjustment for (gains) losses realized | (538 | ) | 63 | ||||||
Net unrealized holding gains (losses) on securities available for sale for which an other-than-temporary impairment has been recognized in income | 751 | (129 | ) | ||||||
Reclassification adjustment for other-than-temporary impairment loss recognized in income | — | 49 | |||||||
Other comprehensive income (loss) before tax | 3,473 | (6,479 | ) | ||||||
Income tax provision (benefit) | 1,236 | (2,289 | ) | ||||||
Other comprehensive income (loss) - net of tax | 2,237 | (4,190 | ) | ||||||
Comprehensive income | $ | 6,561 | $ | 403 | |||||
Condensed Statements of Cash Flows | |||||||||
Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Operating Activities | |||||||||
Net income | $ | 4,324 | $ | 4,593 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Equity in undistributed net income of subsidiaries | (5,586 | ) | (5,301 | ) | |||||
Depreciation and amortization | 226 | 161 | |||||||
Stock compensation expense | 120 | 127 | |||||||
Net change in: | |||||||||
Accrued income and other assets | (641 | ) | (433 | ) | |||||
Accrued expenses and other liabilities | (19 | ) | 44 | ||||||
Net cash used in operating activities | (1,576 | ) | (809 | ) | |||||
Investing Activities | |||||||||
Capital contribution to the Bank | (5,000 | ) | (13,000 | ) | |||||
Purchase of premises and equipment | (160 | ) | (4,641 | ) | |||||
Net cash used in investing activities | (5,160 | ) | (17,641 | ) | |||||
Financing Activities | |||||||||
Cash dividends paid | (1,080 | ) | (450 | ) | |||||
Proceeds from issuance of subordinated debt and related warrants | — | 3,000 | |||||||
Proceeds from loan from the Bank | — | 4,000 | |||||||
Net proceeds from common stock issuance | — | 29,101 | |||||||
Other, net | (111 | ) | — | ||||||
Net cash (used in) provided by financing activities | (1,191 | ) | 35,651 | ||||||
Net (Decrease) Increase in Cash and Cash Equivalents | (7,927 | ) | 17,201 | ||||||
Cash and Cash Equivalents at Beginning of Year | 17,983 | 782 | |||||||
Cash and Cash Equivalents at End of Year | $ | 10,056 | $ | 17,983 | |||||
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended | |
Dec. 31, 2014 | ||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |
Accounting Standards Update (“ASU” or “Update”) 2014-01, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (January 2014) | ||
This Update permits entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The ASU modifies the conditions that an entity must meet to be eligible to use a method other than the equity or cost methods to account for qualified affordable housing project investments. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. The amendments in this Update should be applied retrospectively to all periods presented. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | ||
ASU 2014-04, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (January 2014) | ||
The objective of this Update is to reduce diversity by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. The amendments in this Update may be adopted using either a modified retrospective transition method or a prospective transition method. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | ||
ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (May 2014) | ||
• | Section A - Summary and Amendments That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs - Contracts with Customers (Subtopic 340-40) | |
• | Section B - Conforming Amendments to Other Topics and Subtopics in the Codification and Status Tables | |
• | Section C - Background Information and Basis for Conclusions | |
The topic of revenue recognition had become broad with several other regulatory agencies issuing standards which lacked cohesion. The new guidance establishes a “comprehensive framework” and “reduces the number of requirements to which an entity must consider in recognizing revenue” and yet provides improved disclosures to assist stakeholders reviewing financial statements. The amendments in this Update are effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company will adopt the methodologies prescribed by this ASU by the date required. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | ||
ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (June 2014) | ||
This Update addresses the concerns of stakeholders’ by changing the accounting practices surrounding repurchase agreements. The new guidance changes the “accounting for repurchase-to-maturity transactions and linked repurchase financings to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements.” The amendments in this Update are effective for annual reporting periods beginning after December 15, 2014. Early adoption is prohibited. The Company will adopt the methodologies prescribed by this ASU by the date required. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | ||
ASU 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (June 2014) | ||
This Update defines the accounting treatment for share-based payments and “resolves the diverse accounting treatment of those awards in practice.” The new requirement mandates that “a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition.” Compensation cost will now be recognized in the period in which it becomes likely that the performance target will be met. The amendments in this Update are effective for annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The Company will adopt the methodologies prescribed by this ASU by the date required. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | ||
ASU 2014-14, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure (August 2014) | ||
The objective of this Update is to reduce diversity in practice by addressing the classification of foreclosed mortgage loans that are fully or partially guaranteed under government programs. Currently, some creditors reclassify those loans to real estate as with other foreclosed loans that do not have guarantees; others reclassify the loans to other receivables. The amendments affect creditors that hold government-guaranteed mortgage loans, including those guaranteed by the FHA and the VA. | ||
An entity should adopt the amendments in this Update using either a prospective transition method or a modified retrospective transition method. For prospective transition, an entity should apply the amendments in this Update to foreclosures that occur after the date of adoption. For the modified retrospective transition, an entity should apply the amendments in the Update by means of a cumulative-effect adjustment (through a reclassification to a separate other receivable) as of the beginning of the annual period of adoption. Prior periods should not be adjusted. However, a reporting entity must apply the same method of transition as elected under ASU 2014-04. The amendments in this Update are effective for annual reporting periods ending after December 15, 2015 and interim periods beginning after December 15, 2015. Early adoption, including adoption in an interim period, is permitted if the entity already has adopted Update 2014-04. The Company will adopt the methodologies prescribed by this ASU by the date required. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | ||
ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (August 2014) | ||
The Update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The amendments in this Update are effective for annual reporting periods ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. The Company will adopt the methodologies prescribed by this ASU by the date required. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. |
Basis_of_Presentation_and_Summ1
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Description of Business | Description of Business | |
The Company was incorporated on September 15, 2005, and was approved to consummate a plan of exchange on March 21, 2006, by which the Company became a bank holding company owning 100% of First Internet Bank of Indiana (the “Bank”). | ||
The Bank provides commercial and retail banking services, with operations conducted on the Internet at www.firstib.com and primarily through its corporate office located in Indianapolis, Indiana as well as loan production offices in Tempe, Arizona and Portland, Oregon. The majority of the Bank’s income is derived from commercial lending, retail lending, and mortgage banking activities. The Bank is subject to competition from other financial institutions. The Bank is regulated by certain state and federal agencies and undergoes periodic examinations by those regulatory authorities. | ||
JKH Realty Services, LLC was established August 20, 2012 as a single member LLC wholly owned by the Bank to manage other real estate owned properties as needed. | ||
Principles of Consolidation | Principles of Consolidation | |
The consolidated financial statements include the accounts of the Company and its subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. | ||
Use of Estimates | Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company utilizes processes that involve the use of significant estimates and the judgment of management in determining the amount of the Company’s allowance for credit losses and income taxes, as well as fair value measurements of investment securities, derivatives, goodwill, and loans held-for-sale. Actual results could differ from those estimates. | ||
Securities | Securities | |
The Company classifies its securities in one of three categories and accounts for the investments as follows: | ||
• | Securities that the Company has the positive intent and ability to hold to maturity are classified as “held to maturity” and reported at amortized cost. The Company had no securities classified as “held to maturity” at December 31, 2014 and 2013. | |
• | Securities that are acquired and held principally for the purpose of selling them in the near term with the objective of generating economic profits on short-term differences in market characteristics are classified as “trading securities” and reported at fair value, with unrealized gains and losses included in earnings. The Company had no securities classified as “trading securities” at December 31, 2014 and 2013. | |
• | Securities not classified as either “held to maturity” or “trading securities” are classified as “securities available for sale” and reported at fair value, with unrealized gains and losses, after applicable taxes, excluded from earnings and reported in a separate component of shareholders’ equity. Declines in the value of debt securities and marketable equity securities that are considered to be other-than-temporary are recorded as an other-than-temporary impairment of securities available for sale with other-than-temporary impairment losses recorded in the consolidated statements of income. | |
Interest and dividend income, adjusted by amortization of premium or discount, is included in earnings using the effective interest rate method. Purchases and sales of securities are recorded in the consolidated balance sheets on the trade date. Gains and losses from security sales or disposals are recognized as of the trade date in the consolidated statements of income for the period in which securities are sold or otherwise disposed of. Gains and losses on sales of securities are determined on the specific-identification method. | ||
Loans Held for Sale | Loans Held-for-Sale | |
Loans originated and intended for sale in the secondary market under best-efforts pricing agreements are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. | ||
Loans originated and intended for sale in the secondary market under mandatory pricing agreements are carried at fair value to facilitate hedging of the loans. Gains and losses resulting from changes in fair value are included in noninterest income. | ||
Gains and losses on loan sales are recorded in noninterest income, and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of loan. | ||
Revenue Recognition | Revenue Recognition | |
Interest income on loans is accrued as earned using the interest method based on unpaid principal balances except for interest on loans in nonaccrual status. Interest on loans in nonaccrual status is recorded as a reduction of loan principal when received. | ||
Premiums and discounts are amortized using the effective interest rate method. | ||
Loan fees, net of certain direct origination costs, primarily salaries and wages, are deferred and amortized to interest income as a yield adjustment over the life of the loan. | ||
Loans Receivable | Loans Receivable | |
Loans that management has the intent and ability to hold for the foreseeable future or until maturity are reported at their outstanding principal balance adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans, and unamortized premiums or discounts on purchased loans. | ||
For loans recorded at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. | ||
Allowance for Loan Losses Methodology | Allowance for Loan Losses Methodology | |
Company policy is designed to maintain an adequate allowance for loan losses (“ALLL”). Primary responsibility for ensuring that the Company has processes in place to consistently assess the adequacy of the ALLL rests with the Board of Directors (the “Board”). The Board has charged management with responsibility for establishing the methodology to be used and to assess the adequacy of the ALLL. The Board reviews recommendations from management on a quarterly basis to adjust the allowance as appropriate. | ||
The methodology employed by management for each portfolio segment, at a minimum, contains the following: | ||
1 | Loans are segmented by type of loan. | |
2 | The required ALLL for types of performing homogeneous loans which do not have a specific reserve is determined by applying a factor based on historical losses averaged over the past twelve months. In those instances where the Company’s historical experience is not available, management develops factors based on industry experience and best practices. | |
3 | All criticized, classified and impaired loans are tested for impairment by applying one of three methodologies: | |
a. | Present value of future cash flows; | |
b. | Fair value of collateral less costs to sell; or | |
c. | The loan’s observable market price | |
4 | All troubled debt restructurings (“TDR”) are considered impaired loans. | |
5 | Loans tested for impairment are removed from other pools to prevent layering (double-counting). | |
6 | The required ALLL for each group of loans are added together to determine the total required ALLL for the Company. The required ALLL is compared to the existing ALLL to determine the provision required to increase the ALLL or credit to decrease the ALLL. | |
The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced over the prior twelve months. Management believes the historical loss experience methodology is appropriate in the current economic environment, as it captures loss rates that are comparable to the current period being analyzed. | ||
The Company also factors in the following qualitative considerations: | ||
1 | Changes in policies and procedures; | |
2 | Changes in national, regional, and local economic and business conditions; | |
3 | Changes in the composition and size of the portfolio and in the terms of loans; | |
4 | Changes in the experience, ability, and depth of lending management and other relevant staff; | |
5 | Changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans; | |
6 | Changes in the quality of the Company’s loan review system; | |
7 | Changes in the value of underlying collateral for collateral-dependent loans; | |
8 | The existence and effect of any concentration of credit and changes in the level of such concentrations; and | |
9 | The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio. | |
Provision for Loan Losses | Provision for Loan Losses | |
A provision for estimated losses on loans is charged to income based upon management’s evaluation of the potential losses. Such an evaluation, which includes a review of all loans for which full repayment may not be reasonably assured, considers, among other matters, the estimated net realizable value of the underlying collateral, as applicable, economic conditions, loan loss experience, and other factors that are particularly susceptible to changes that could result in a material adjustment in the near term. While management attempts to use the best information available in making its evaluations, future allowance adjustments may be necessary if economic conditions change substantially from the assumptions used in making the evaluations. | ||
Accounting Standards Codification (“ASC”) Topic 310, Receivables, requires that impaired loans be measured based on the present value of expected future cash flows discounted at the loans’ effective interest rates or the fair value of the underlying collateral, less costs to sell, and allows existing methods for recognizing interest income. | ||
Nonaccrual Loans | Nonaccrual Loans | |
Any loan which becomes 90 days delinquent or for which the full collection of principal and interest may be in doubt will be considered for nonaccrual status. At the time a loan is placed on nonaccrual status, all accrued but unpaid interest will be reversed from interest income. Placing the loan on nonaccrual status does not relieve the borrower of the obligation to repay interest. A loan placed on nonaccrual status may be restored to accrual status when all delinquent principal and interest has been brought current, and the Company expects full payment of the remaining contractual principal and interest. | ||
Impaired Loans | Impaired Loans | |
A loan is designated as impaired when, based on current information or events, it is probable that the Company will be unable to collect all amounts due (principal and interest) according to the contractual terms of the loan agreement. Payments with insignificant delays not exceeding 90 days outstanding are generally not considered impaired. Certain nonaccrual and substantially all delinquent loans may be considered to be impaired. Generally, loans are placed on nonaccrual status at 90 days past due and accrued interest is reversed against earnings, unless the loan is well-secured and in the process of collection. The accrual of interest on impaired loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due. | ||
Troubled Debt Restructurings (TDR) | Troubled Debt Restructurings (“TDR”) | |
The loan portfolio includes certain loans that have been modified in a TDR, where economic concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from loss mitigation efforts and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally not less than six months. | ||
When loans are modified in a TDR, any possible impairment similar to other impaired loans is evaluated based on either the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, or the current fair value of the collateral, less selling costs for collateral dependent loans. If it is determined that the value of the modified loan is less than the recorded balance of the loan, impairment is recognized through a specific ALLL or charge-off to the ALLL. In periods subsequent to modification, all TDRs, including those that have payment defaults, are evaluated for possible impairment, and impairment is recognized through the ALLL. | ||
Policy for Charging Off Loans | Policy for Charging Off Loans | |
A loan should be charged off at any point in time when it no longer can be considered a bankable asset, meaning collected within the parameters of policy. A secured loan generally should be charged off to the estimated fair value of the collateral, less costs to sell, no later than when it is 120 days past due as to principal or interest. An unsecured loan generally should be charged off no later than when it is 180 days past due as to principal or interest. All charge-offs are approved by the Chief Credit Officer. | ||
Federal Home Loan Bank (FHLB) Stock | Federal Home Loan Bank (“FHLB”) of Indianapolis Stock | |
Federal law requires a member institution of the FHLB system to hold common stock of its district FHLB according to a predetermined formula. This investment is stated at cost, which represents redemption value, and may be pledged as collateral for FHLB advances. | ||
Other Real Estate Owned | Other Real Estate Owned | |
Other real estate owned represents real estate acquired through foreclosure or deed in lieu of foreclosure and is recorded at its fair value less estimated costs to sell. When property is acquired, it is recorded at its fair value at the date of acquisition with any resulting write-down charged against the ALLL. Any subsequent deterioration of the property is charged directly to operating expense. Costs relating to the development and improvement of real estate owned are capitalized, whereas costs relating to holding and maintaining the property are charged to expense as incurred. | ||
Property and Equipment | Premises and Equipment | |
Premises and equipment is stated at cost, less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives, which range from three to five years for software and equipment, 39 years for buildings, and ten years for land improvements. | ||
Derivative Financial Instruments | Derivative Financial Instruments | |
The Company uses derivative financial instruments to help manage exposure to interest rate risk and the effects that changes in interest rates may have on net income and the fair value of assets and liabilities. The Company enters into forward contracts for the future delivery of mortgage loans to third party investors and enters into interest rate lock commitments with potential borrowers to fund specific mortgage loans that will be sold into the secondary market. The forward contracts are entered into in order to economically hedge the effect of changes in interest rates resulting from the Company’s commitment to fund the loans. | ||
All of these items are considered derivatives, but are not designated as accounting hedges, and therefore, are recorded at fair value with changes in fair value reflected in noninterest income on the consolidated statements of income. The fair value of derivative instruments with a positive fair value are reported in accrued income and other assets in the consolidated balance sheets while derivative instruments with a negative fair value are reported in accrued expenses and other liabilities in the consolidated balance sheets. | ||
Fair Value Measurements | Fair Value Measurements | |
The Company records or discloses certain assets and liabilities at fair value. ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified within one of three levels in a valuation hierarchy. ASC Topic 820 describes three levels of inputs that may be used to measure fair value: | ||
Level 1 | Quoted prices in active markets for identical assets or liabilities | |
Level 2 | 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 for substantially the full term of the assets or liabilities | |
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities | |
Income Taxes | Income Taxes | |
Deferred income tax assets and liabilities reflect the impact of temporary differences between amounts of assets and liabilities for financial reporting purposes and the basis of such assets and liabilities as measured by tax laws and regulations. Deferred income tax expense or benefit is based upon the change in deferred tax assets and liabilities from period to period, subject to an ongoing assessment of realization of deferred tax assets. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. | ||
The Company files income tax returns in the U.S. federal, Indiana, and other state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local examinations by tax authorities for years before 2010. | ||
ASC Topic 740-10, Accounting for Uncertainty in Income Taxes, prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company did not identify any uncertain tax positions that it believes should be recognized in the consolidated financial statements. | ||
Earnings Per Share | Earnings Per Share | |
Earnings per share of common stock is based on the weighted-average number of basic shares and dilutive shares outstanding during the year. | ||
Dividend Restrictions | Dividend Restrictions | |
Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Company or by the Company to shareholders. | ||
Stock Compensation | Stock Compensation | |
The Company has a stock-based compensation plan using the fair value recognition provisions of ASC Topic 718, Compensation - Stock Compensation. The plan is described more fully in Note 9. | ||
Comprehensive Income | Comprehensive Income | |
Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, which are also recognized as separate components of equity. Accumulated other comprehensive income (loss) at December 31, 2014 and 2013 is solely related to unrealized gains and losses on available for sale securities. | ||
Reclassification adjustments have been determined for all components of other comprehensive income or loss reported in the consolidated statements of changes in shareholders’ equity. | ||
Statements of Cash Flows | Statements of Cash Flows | |
Cash and cash equivalents are defined to include cash on-hand, noninterest and interest-bearing amounts due from other banks and federal funds sold. Generally, federal funds are sold for one-day periods. The Company reports net cash flows for customer loan transactions and deposit transactions. | ||
Bank Owned Life Insurance | Bank-Owned Life Insurance | |
Bank-owned life insurance policies are carried at their cash surrender value. The Company recognizes tax-free income from the periodic increases in the cash surrender value of these policies and from death benefits. | ||
Goodwill | Goodwill | |
Goodwill is tested at least annually for impairment. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the consolidated financial statements. | ||
Reclassifications | Reclassifications | |
Certain reclassifications have been made to the 2013 financial statements to conform to the 2014 financial statement presentation. These reclassifications had no effect on net income. |
Basis_of_Presentation_and_Summ2
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Schedule of Weighted Average Number of Shares | The following is a reconciliation of the weighted-average common shares for the basic and diluted earnings per share computations. | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Basic earnings per share | |||||||||
Net income available to common shareholders | $ | 4,324 | $ | 4,593 | |||||
Weighted-average common shares | 4,497,007 | 3,041,666 | |||||||
Basic earnings per common share | $ | 0.96 | $ | 1.51 | |||||
Diluted earnings per share | |||||||||
Net income applicable to diluted earnings per share | $ | 4,324 | $ | 4,593 | |||||
Weighted-average common shares | 4,497,007 | 3,041,666 | |||||||
Dilutive effect of warrants | 2,895 | 5,933 | |||||||
Dilutive effect of equity compensation | 8,093 | 2,402 | |||||||
Weighted-average common and incremental shares | 4,507,995 | 3,050,001 | |||||||
Diluted earnings per common share | $ | 0.96 | $ | 1.51 | |||||
Number of warrants excluded from the calculation of diluted earnings per share as the exercise prices were greater than the average market price of the Company’s common stock during the year | — | — | |||||||
Securities_Tables
Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Unrealized Gain (Loss) on Investments | Securities at December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||
U.S. Government-sponsored agencies | $ | 13,680 | $ | 129 | $ | (257 | ) | $ | 13,552 | ||||||||||||||||
Mortgage-backed securities | 117,134 | 282 | (368 | ) | 117,048 | ||||||||||||||||||||
Asset-backed securities | 4,913 | — | (1 | ) | 4,912 | ||||||||||||||||||||
Other securities | 2,000 | 6 | — | 2,006 | |||||||||||||||||||||
Total available for sale | $ | 137,727 | $ | 417 | $ | (626 | ) | $ | 137,518 | ||||||||||||||||
2013 | |||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||
U.S. Government-sponsored agencies | $ | 57,569 | $ | 470 | $ | (1,762 | ) | $ | 56,277 | ||||||||||||||||
Municipals | 46,126 | 1,080 | (883 | ) | 46,323 | ||||||||||||||||||||
Mortgage-backed securities | 76,371 | 705 | (1,903 | ) | 75,173 | ||||||||||||||||||||
Other securities | 5,025 | — | (1,389 | ) | 3,636 | ||||||||||||||||||||
Total available for sale | $ | 185,091 | $ | 2,255 | $ | (5,937 | ) | $ | 181,409 | ||||||||||||||||
Investments Classified by Contractual Maturity Date | The carrying value of securities at December 31, 2014 is shown below by their contractual maturity date. Actual maturities will differ because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Within one year | $ | — | $ | — | |||||||||||||||||||||
One to five years | — | — | |||||||||||||||||||||||
Five to ten years | 811 | 801 | |||||||||||||||||||||||
After ten years | 12,869 | 12,751 | |||||||||||||||||||||||
13,680 | 13,552 | ||||||||||||||||||||||||
Mortgage-backed securities | 117,134 | 117,048 | |||||||||||||||||||||||
Asset-backed securities | 4,913 | 4,912 | |||||||||||||||||||||||
Other securities | 2,000 | 2,006 | |||||||||||||||||||||||
Totals | $ | 137,727 | $ | 137,518 | |||||||||||||||||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2014 and 2013: | ||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||
U.S. Government-sponsored agencies | $ | 801 | $ | (10 | ) | $ | 8,719 | $ | (247 | ) | $ | 9,520 | $ | (257 | ) | ||||||||||
Mortgage-backed securities | 51,204 | (57 | ) | 21,237 | (311 | ) | 72,441 | (368 | ) | ||||||||||||||||
Asset-backed securities | 4,912 | (1 | ) | — | — | 4,912 | (1 | ) | |||||||||||||||||
$ | 56,917 | $ | (68 | ) | $ | 29,956 | $ | (558 | ) | $ | 86,873 | $ | (626 | ) | |||||||||||
2013 | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||
U.S. Government-sponsored agencies | $ | 43,085 | $ | (1,761 | ) | $ | 14 | $ | (1 | ) | $ | 43,099 | $ | (1,762 | ) | ||||||||||
Municipals | 14,105 | (882 | ) | 351 | (1 | ) | 14,456 | (883 | ) | ||||||||||||||||
Mortgage-backed securities | 47,918 | (1,814 | ) | 838 | (89 | ) | 48,756 | (1,903 | ) | ||||||||||||||||
Other securities | 1,962 | (38 | ) | 1,673 | (1,351 | ) | 3,635 | (1,389 | ) | ||||||||||||||||
$ | 107,070 | $ | (4,495 | ) | $ | 2,876 | $ | (1,442 | ) | $ | 109,946 | $ | (5,937 | ) | |||||||||||
Credit Losses Recognized In Earnings | The credit losses recognized in earnings during the years ended December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Mortgage-backed and asset-backed securities – private labeled | $ | — | $ | 49 | |||||||||||||||||||||
Total credit losses recognized in earnings | $ | — | $ | 49 | |||||||||||||||||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings | The following table provides information about debt securities for which only a credit loss was recognized in income and other losses are recorded in other comprehensive loss. | ||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||
Credit Losses | |||||||||||||||||||||||||
Credit losses on debt securities held | |||||||||||||||||||||||||
January 1, 2013 | $ | 1,737 | |||||||||||||||||||||||
Realized losses related to OTTI | (603 | ) | |||||||||||||||||||||||
Additions related to OTTI losses not previously recognized | 31 | ||||||||||||||||||||||||
Additions related to increases in previously recognized OTTI losses | 18 | ||||||||||||||||||||||||
December 31, 2013 | 1,183 | ||||||||||||||||||||||||
Realized losses related to OTTI | (1,139 | ) | |||||||||||||||||||||||
Recoveries related to OTTI | (44 | ) | |||||||||||||||||||||||
December 31, 2014 | $ | — | |||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Amounts reclassified from accumulated other comprehensive loss and the affected line items in the consolidated statements of income during the years ended December 31, 2014 and 2013, were as follows: | ||||||||||||||||||||||||
Details About Accumulated Other Comprehensive Income Components | Amounts Reclassified from | Affected Line Item in the | |||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Statements of Income | ||||||||||||||||||||||||
for the Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Unrealized gains and losses on securities available for sale | |||||||||||||||||||||||||
Gain (loss) realized in earnings | $ | 538 | $ | (63 | ) | Gain (loss) on sale of securities | |||||||||||||||||||
OTTI losses recognized in earnings | — | (49 | ) | Other-than-temporary impairment loss recognized in net income | |||||||||||||||||||||
Total reclassified amount before tax | 538 | (112 | ) | Income Before Income Taxes | |||||||||||||||||||||
Tax expense (benefit) | 191 | (38 | ) | Income Tax Provision | |||||||||||||||||||||
Total reclassifications out of accumulated other comprehensive loss | $ | 347 | $ | (74 | ) | Net Income | |||||||||||||||||||
Loans_Receivable_Tables
Loans Receivable (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | Categories of loans include: | ||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Real estate loans | |||||||||||||||||||||||||||||||||
Residential | $ | 279,046 | $ | 191,007 | |||||||||||||||||||||||||||||
Commercial | 273,855 | 142,429 | |||||||||||||||||||||||||||||||
Total real estate loans | 552,901 | 333,436 | |||||||||||||||||||||||||||||||
Commercial loans | 77,232 | 55,168 | |||||||||||||||||||||||||||||||
Consumer loans | 97,094 | 107,562 | |||||||||||||||||||||||||||||||
Total loans | 727,227 | 496,166 | |||||||||||||||||||||||||||||||
Deferred loan origination costs and premiums and discounts on purchased loans | 5,199 | 4,987 | |||||||||||||||||||||||||||||||
Allowance for loan losses | (5,800 | ) | (5,426 | ) | |||||||||||||||||||||||||||||
Net loans receivable | $ | 726,626 | $ | 495,727 | |||||||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables | The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Consumer | Total | |||||||||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 1,219 | $ | 2,517 | $ | 819 | $ | 871 | $ | 5,426 | |||||||||||||||||||||||
Provision charged to expense | 182 | 20 | 115 | 32 | 349 | ||||||||||||||||||||||||||||
Losses charged off | (247 | ) | — | (14 | ) | (596 | ) | (857 | ) | ||||||||||||||||||||||||
Recoveries | 38 | 460 | — | 384 | 882 | ||||||||||||||||||||||||||||
Balance, end of year | $ | 1,192 | $ | 2,997 | $ | 920 | $ | 691 | $ | 5,800 | |||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | — | $ | — | $ | 15 | $ | 15 | |||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,192 | $ | 2,997 | $ | 920 | $ | 676 | $ | 5,785 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending balance | $ | 279,046 | $ | 273,855 | $ | 77,232 | $ | 97,094 | $ | 727,227 | |||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 1,139 | $ | 87 | $ | — | $ | 305 | $ | 1,531 | |||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 277,907 | $ | 273,768 | $ | 77,232 | $ | 96,789 | $ | 725,696 | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Consumer | Total | |||||||||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 1,149 | $ | 3,107 | $ | 371 | $ | 1,206 | $ | 5,833 | |||||||||||||||||||||||
Provision charged to expense | 136 | (352 | ) | 378 | 162 | 324 | |||||||||||||||||||||||||||
Losses charged off | (164 | ) | (238 | ) | — | (810 | ) | (1,212 | ) | ||||||||||||||||||||||||
Recoveries | 98 | — | 70 | 313 | 481 | ||||||||||||||||||||||||||||
Balance, end of year | $ | 1,219 | $ | 2,517 | $ | 819 | $ | 871 | $ | 5,426 | |||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 116 | $ | 98 | $ | — | $ | 28 | $ | 242 | |||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,103 | $ | 2,419 | $ | 819 | $ | 843 | $ | 5,184 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending balance | $ | 191,007 | $ | 142,429 | $ | 55,168 | $ | 107,562 | $ | 496,166 | |||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 1,684 | $ | 1,054 | $ | — | $ | 339 | $ | 3,077 | |||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 189,323 | $ | 141,375 | $ | 55,168 | $ | 107,223 | $ | 493,089 | |||||||||||||||||||||||
Financing Receivable Credit Quality Indicators | The following tables present the credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | ||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
Rating: | |||||||||||||||||||||||||||||||||
1-5 Pass | $ | 271,868 | $ | 77,232 | |||||||||||||||||||||||||||||
6 Special Mention | 379 | — | |||||||||||||||||||||||||||||||
7 Substandard | 1,608 | — | |||||||||||||||||||||||||||||||
8 Doubtful | — | — | |||||||||||||||||||||||||||||||
Total | $ | 273,855 | $ | 77,232 | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
Residential | Consumer | ||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
Performing | $ | 279,021 | $ | 96,971 | |||||||||||||||||||||||||||||
Nonaccrual | 25 | 123 | |||||||||||||||||||||||||||||||
Total | $ | 279,046 | $ | 97,094 | |||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | ||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
Rating: | |||||||||||||||||||||||||||||||||
1-5 Pass | $ | 139,052 | $ | 54,035 | |||||||||||||||||||||||||||||
6 Special Mention | 2,323 | 1,133 | |||||||||||||||||||||||||||||||
7 Substandard | 1,054 | — | |||||||||||||||||||||||||||||||
8 Doubtful | — | — | |||||||||||||||||||||||||||||||
Total | $ | 142,429 | $ | 55,168 | |||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||
Residential | Consumer | ||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
Performing | $ | 190,377 | $ | 107,412 | |||||||||||||||||||||||||||||
Nonaccrual | 630 | 150 | |||||||||||||||||||||||||||||||
Total | $ | 191,007 | $ | 107,562 | |||||||||||||||||||||||||||||
Past Due Financing Receivables | The following tables present the Company’s loan portfolio aging analysis as of December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | 90 Days | Total | Current | Total | Nonaccrual | Total Loans | ||||||||||||||||||||||||||
Days | Days | or More | Past Due | Loans | Loans | 90 Days or | |||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Receivable | More Past | |||||||||||||||||||||||||||||
Due and Accruing | |||||||||||||||||||||||||||||||||
Residential real estate | $ | 161 | $ | — | $ | 57 | $ | 218 | $ | 278,828 | $ | 279,046 | $ | 25 | $ | 57 | |||||||||||||||||
Commercial real estate | — | — | — | — | 273,855 | 273,855 | 87 | — | |||||||||||||||||||||||||
Commercial | — | — | — | — | 77,232 | 77,232 | — | — | |||||||||||||||||||||||||
Consumer | 249 | 56 | 53 | 358 | 96,736 | 97,094 | 123 | 4 | |||||||||||||||||||||||||
Total | $ | 410 | $ | 56 | $ | 110 | $ | 576 | $ | 726,651 | $ | 727,227 | $ | 235 | $ | 61 | |||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | 90 Days | Total | Current | Total | Nonaccrual | Total Loans | ||||||||||||||||||||||||||
Days | Days | or More | Past Due | Loans | Loans | 90 Days or | |||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Receivable | More Past | |||||||||||||||||||||||||||||
Due | |||||||||||||||||||||||||||||||||
and Accruing | |||||||||||||||||||||||||||||||||
Residential real estate | $ | 122 | $ | — | $ | 603 | $ | 725 | $ | 190,282 | $ | 191,007 | $ | 630 | $ | — | |||||||||||||||||
Commercial real estate | — | — | 955 | 955 | 141,474 | 142,429 | 1,054 | — | |||||||||||||||||||||||||
Commercial | — | — | — | — | 55,168 | 55,168 | — | — | |||||||||||||||||||||||||
Consumer | 484 | 45 | 84 | 613 | 106,949 | 107,562 | 150 | 18 | |||||||||||||||||||||||||
Total | $ | 606 | $ | 45 | $ | 1,642 | $ | 2,293 | $ | 493,873 | $ | 496,166 | $ | 1,834 | $ | 18 | |||||||||||||||||
Impaired Financing Receivables | The following tables present the Company’s impaired loans as of December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
Recorded | Unpaid | Specific | Average | Interest | |||||||||||||||||||||||||||||
Balance | Principal | Allowance | Balance | Income | |||||||||||||||||||||||||||||
Balance | |||||||||||||||||||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||||||||||||||
Residential real estate loans | $ | 1,139 | $ | 1,146 | $ | — | $ | 1,266 | $ | 32 | |||||||||||||||||||||||
Commercial real estate loans | 87 | 87 | — | 666 | 5 | ||||||||||||||||||||||||||||
Commercial loans | — | — | — | — | — | ||||||||||||||||||||||||||||
Consumer loans | 268 | 338 | — | 380 | 37 | ||||||||||||||||||||||||||||
Total | $ | 1,494 | $ | 1,571 | $ | — | $ | 2,312 | $ | 74 | |||||||||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||||||||||||||
Residential real estate loans | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Commercial real estate loans | — | — | — | — | — | ||||||||||||||||||||||||||||
Commercial loans | — | — | — | — | — | ||||||||||||||||||||||||||||
Consumer loans | 37 | 51 | 15 | 40 | 4 | ||||||||||||||||||||||||||||
Total | $ | 37 | $ | 51 | $ | 15 | $ | 40 | $ | 4 | |||||||||||||||||||||||
Total impaired loans | |||||||||||||||||||||||||||||||||
Residential real estate loans | $ | 1,139 | $ | 1,146 | $ | — | $ | 1,266 | $ | 32 | |||||||||||||||||||||||
Commercial real estate loans | 87 | 87 | — | 666 | 5 | ||||||||||||||||||||||||||||
Commercial loans | — | — | — | — | — | ||||||||||||||||||||||||||||
Consumer loans | 305 | 389 | 15 | 420 | 41 | ||||||||||||||||||||||||||||
Total | $ | 1,531 | $ | 1,622 | $ | 15 | $ | 2,352 | $ | 78 | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||
Recorded | Unpaid | Specific | Average | Interest | |||||||||||||||||||||||||||||
Balance | Principal | Allowance | Balance | Income | |||||||||||||||||||||||||||||
Balance | |||||||||||||||||||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||||||||||||||
Residential real estate loans | $ | 1,551 | $ | 1,842 | $ | — | $ | 1,894 | $ | 29 | |||||||||||||||||||||||
Commercial real estate loans | 956 | 2,310 | — | 239 | — | ||||||||||||||||||||||||||||
Commercial loans | — | — | — | — | — | ||||||||||||||||||||||||||||
Consumer loans | 271 | 326 | — | 315 | 28 | ||||||||||||||||||||||||||||
Total | $ | 2,778 | $ | 4,478 | $ | — | $ | 2,448 | $ | 57 | |||||||||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||||||||||||||
Residential real estate loans | $ | 133 | $ | 141 | $ | 116 | $ | 66 | $ | 3 | |||||||||||||||||||||||
Commercial real estate loans | 98 | 98 | 98 | 1,617 | 5 | ||||||||||||||||||||||||||||
Commercial loans | — | — | — | — | — | ||||||||||||||||||||||||||||
Consumer loans | 68 | 80 | 28 | 78 | 2 | ||||||||||||||||||||||||||||
Total | $ | 299 | $ | 319 | $ | 242 | $ | 1,761 | $ | 10 | |||||||||||||||||||||||
Total impaired loans | |||||||||||||||||||||||||||||||||
Residential real estate loans | $ | 1,684 | $ | 1,983 | $ | 116 | $ | 1,960 | $ | 32 | |||||||||||||||||||||||
Commercial real estate loans | 1,054 | 2,408 | 98 | 1,856 | 5 | ||||||||||||||||||||||||||||
Commercial loans | — | — | — | — | — | ||||||||||||||||||||||||||||
Consumer loans | 339 | 406 | 28 | 393 | 30 | ||||||||||||||||||||||||||||
Total | $ | 3,077 | $ | 4,797 | $ | 242 | $ | 4,209 | $ | 67 | |||||||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables | Loans classified as a TDR during the years ended December 31, 2014 and 2013 are shown in the tables below. | ||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
Modifications | |||||||||||||||||||||||||||||||||
Number of Contracts | Recorded | Recorded | |||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||
Before | After | ||||||||||||||||||||||||||||||||
Consumer | 1 | $ | 21 | $ | 21 | ||||||||||||||||||||||||||||
Total | 1 | $ | 21 | $ | 21 | ||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||
Modifications | |||||||||||||||||||||||||||||||||
Number of Contracts | Recorded | Recorded | |||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||
Before | After | ||||||||||||||||||||||||||||||||
Consumer | 4 | $ | 25 | $ | 25 | ||||||||||||||||||||||||||||
Total | 4 | $ | 25 | $ | 25 | ||||||||||||||||||||||||||||
There were no TDR loans which had payment defaults during the years ended December 31, 2014 and 2013. Default occurs when a loan is 90 days or more past due or transferred to nonaccrual status within 12 months of restructuring. | |||||||||||||||||||||||||||||||||
Schedule of Financing Receivables, Troubled Debt Restructuring, Non Accrual Status | The following tables summarize loan modifications that occurred during the years ended December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
Payment Extension | Rate Reduction | ||||||||||||||||||||||||||||||||
Number | Amount | Number | Amount | ||||||||||||||||||||||||||||||
Consumer | 1 | $ | 21 | — | $ | — | |||||||||||||||||||||||||||
Total | 1 | $ | 21 | — | $ | — | |||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||
Payment Extension | Rate Reduction | ||||||||||||||||||||||||||||||||
Number | Amount | Number | Amount | ||||||||||||||||||||||||||||||
Consumer | 2 | $ | 2 | 2 | $ | 23 | |||||||||||||||||||||||||||
Total | 2 | $ | 2 | 2 | $ | 23 | |||||||||||||||||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Premises and Equipment | Premises and equipment at December 31, 2014 and 2013 consists of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Land | $ | 2,500 | $ | 2,500 | |||||
Building and improvements | 3,018 | 2,858 | |||||||
Furniture and equipment | 5,277 | 4,883 | |||||||
Less: accumulated depreciation | (3,734 | ) | (3,107 | ) | |||||
$ | 7,061 | $ | 7,134 | ||||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Schedule of Goodwill | The change in the carrying amount of goodwill for the two years ended December 31, 2014 was: | |||
Balance as of January 1, 2013 | $ | 4,687 | ||
Changes in goodwill during the year | — | |||
Balance as of December 31, 2013 | 4,687 | |||
Changes in goodwill during the year | — | |||
Balance as of December 31, 2014 | $ | 4,687 | ||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Banking and Thrift [Abstract] | |||||||||
Schedule of deposits | Deposits at December 31, 2014 and 2013 are as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Regular savings accounts | $ | 20,776 | $ | 14,330 | |||||
Noninterest-bearing demand deposit accounts | 21,790 | 19,386 | |||||||
Interest-bearing demand deposit accounts | 74,238 | 73,748 | |||||||
Money market accounts | 267,046 | 255,169 | |||||||
Certificates of deposits | 361,202 | 292,685 | |||||||
Brokered deposits | 13,546 | 17,777 | |||||||
Total deposits | $ | 758,598 | $ | 673,095 | |||||
Schedule of certificates of deposits scheduled maturities | A summary of certificate accounts by scheduled maturities at December 31, 2014 is as follows: | ||||||||
2015 | $ | 223,078 | |||||||
2016 | 108,238 | ||||||||
2017 | 19,213 | ||||||||
2018 | 14,776 | ||||||||
2019 | 9,435 | ||||||||
Thereafter | 8 | ||||||||
$ | 374,748 | ||||||||
FHLB_Advances_Tables
FHLB Advances (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Banking and Thrift [Abstract] | ||||
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank | The Company’s FHLB advances are scheduled to mature according to the following schedule: | |||
Amount | ||||
2015 | $ | 101,000 | ||
2016 | 3,000 | |||
2017 | — | |||
2018 | 3,000 | |||
Thereafter | — | |||
107,000 | ||||
Deferred prepayment penalties on advance restructure | (103 | ) | ||
$ | 106,897 | |||
Benefit_Plans_Tables
Benefit Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||
Nonvested Restricted Stock Shares Activity | The following table summarizes the status of the Company’s restricted stock and deferred stock unit awards as of December 31, 2014, and activity for the year ended December 31, 2014: | |||||||||||||
Restricted Stock Awards | Weighted-Average Grant Date Fair Value Per Share | Deferred Stock Units | Weighted-Average Grant Date Fair Value Per Unit | |||||||||||
Nonvested at January 1, 2014 | 46,232 | $ | 25.09 | — | $ | — | ||||||||
Granted | 4,445 | 22.5 | 897 | 22.47 | ||||||||||
Vested | (19,856 | ) | 24.51 | (897 | ) | 22.47 | ||||||||
Forfeited | (10,044 | ) | 25.09 | — | — | |||||||||
Nonvested at December 31, 2014 | 20,777 | $ | 25.09 | — | $ | — | ||||||||
Schedule Of Deferred Stock Option Plan | The following is an analysis of deferred stock rights and common stock related to the Directors Deferred Stock Plan for the year ended December 31, 2014: | |||||||||||||
Deferred | ||||||||||||||
Rights | ||||||||||||||
Outstanding, beginning of year | 79,676 | |||||||||||||
Granted | 852 | |||||||||||||
Exercised | — | |||||||||||||
Outstanding, end of year | 80,528 | |||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Schedule of Components of Income Tax Expense (Benefit) | The provision (credit) for income taxes consists of the following: | ||||||||
2014 | 2013 | ||||||||
Current | $ | 3,655 | $ | (693 | ) | ||||
Deferred | (1,529 | ) | 2,259 | ||||||
Total | $ | 2,126 | $ | 1,566 | |||||
Schedule of Effective Income Tax Rate Reconciliation | Income tax provision (credit) is reconciled to the 34% statutory rate applied to pre-tax income as follows: | ||||||||
2014 | 2013 | ||||||||
Statutory rate times pre-tax income | $ | 2,193 | $ | 2,094 | |||||
Add (subtract) the tax effect of: | |||||||||
Income from tax-exempt securities | (31 | ) | (514 | ) | |||||
State income tax, net of federal tax effect | 63 | 33 | |||||||
Bank-owned life insurance | (132 | ) | (135 | ) | |||||
Other differences | 33 | 88 | |||||||
Total income taxes | $ | 2,126 | $ | 1,566 | |||||
Schedule of Deferred Tax Assets and Liabilities | The net deferred tax asset at December 31 consists of the following: | ||||||||
2014 | 2013 | ||||||||
Deferred tax assets (liabilities) | |||||||||
Allowance for loan losses | $ | 2,073 | $ | 1,930 | |||||
Unrealized loss on available for sale securities | 75 | 1,310 | |||||||
Fair value adjustments | (117 | ) | (1,840 | ) | |||||
Depreciation | (590 | ) | (270 | ) | |||||
Deferred compensation | 262 | 510 | |||||||
Loan origination costs | (288 | ) | (209 | ) | |||||
Prepaid assets | (207 | ) | (205 | ) | |||||
Accrued payroll | 458 | 155 | |||||||
Other | 546 | 536 | |||||||
Total deferred tax assets, net | $ | 2,212 | $ | 1,917 | |||||
Regulatory_Capital_Requirement1
Regulatory Capital Requirements (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Banking and Thrift [Abstract] | ||||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | ||||||||||||||||||||||
Actual | Minimum | Minimum to be | ||||||||||||||||||||
Capital | Well Capitalized | |||||||||||||||||||||
Requirement | Under Prompt | |||||||||||||||||||||
Corrective Actions | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||
Total capital (to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | $ | 101,033 | 13.8 | % | $ | 58,777 | 8 | % | N/A | N/A | ||||||||||||
Bank | 89,177 | 12.2 | % | 58,600 | 8 | % | $ | 73,250 | 10 | % | ||||||||||||
Tier 1 capital (to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | 92,233 | 12.6 | % | 29,388 | 4 | % | N/A | N/A | ||||||||||||||
Bank | 83,377 | 11.4 | % | 29,300 | 4 | % | 43,950 | 6 | % | |||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||||
Consolidated | 92,233 | 9.9 | % | 37,381 | 4 | % | N/A | N/A | ||||||||||||||
Bank | 83,377 | 8.9 | % | 37,303 | 4 | % | 46,629 | 5 | % | |||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||
Total capital (to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | $ | 96,981 | 17.1 | % | $ | 45,386 | 8 | % | N/A | N/A | ||||||||||||
Bank | 77,862 | 13.8 | % | 45,287 | 8 | % | $ | 56,609 | 10 | % | ||||||||||||
Tier 1 capital (to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | 88,555 | 15.6 | % | 22,693 | 4 | % | N/A | N/A | ||||||||||||||
Bank | 72,436 | 12.8 | % | 22,644 | 4 | % | 33,965 | 6 | % | |||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||||
Consolidated | 88,555 | 11.7 | % | 30,385 | 4 | % | N/A | N/A | ||||||||||||||
Bank | 72,436 | 9.6 | % | 30,329 | 4 | % | 37,911 | 5 | % | |||||||||||||
Commitments_and_Credit_Risk_Ta
Commitments and Credit Risk (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2014, the Company leased office facilities under various operating leases. The leases may be subject to additional payments based on building operating costs and property taxes in excess of specified amounts. The Company recorded rental expense for all operating leases of $495 and $468 for the years ended December 31, 2014 and 2013, respectively. Future minimum cash lease payments are as follows: | |||
Amount | ||||
2015 | $ | 611 | ||
2016 | 557 | |||
2017 | 517 | |||
2018 | 526 | |||
2019 | 534 | |||
Thereafter | 634 | |||
$ | 3,379 | |||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the fair value measurements of assets and liabilities recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2014 and 2013: | ||||||||||||||||
2014 | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Fair | Quoted Prices | Significant | Significant | ||||||||||||||
Value | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
U.S. Government-sponsored agencies | $ | 13,552 | $ | — | $ | 13,552 | $ | — | |||||||||
Mortgage-backed securities | 117,048 | — | 117,048 | — | |||||||||||||
Asset-backed securities | 4,912 | — | 4,912 | — | |||||||||||||
Other securities | 2,006 | 2,006 | — | — | |||||||||||||
Total available for sale securities | $ | 137,518 | $ | 2,006 | $ | 135,512 | $ | — | |||||||||
Loans held-for-sale (mandatory pricing agreements) | 32,618 | — | 32,618 | — | |||||||||||||
Forward contracts | (405 | ) | (405 | ) | — | — | |||||||||||
Interest rate lock commitments | 521 | — | — | 521 | |||||||||||||
2013 | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Fair | Quoted Prices | Significant | Significant | ||||||||||||||
Value | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
U.S. Government-sponsored agencies | $ | 56,277 | $ | — | $ | 56,277 | $ | — | |||||||||
Municipals | 46,323 | — | 46,323 | — | |||||||||||||
Mortgage-backed securities | 75,173 | — | 75,173 | — | |||||||||||||
Other securities | 3,636 | 1,963 | — | 1,673 | |||||||||||||
Total available for sale securities | $ | 181,409 | $ | 1,963 | $ | 177,773 | $ | 1,673 | |||||||||
Loans held-for-sale (mandatory pricing agreements) | 24,254 | — | 24,254 | — | |||||||||||||
Forward contracts | 227 | 227 | — | — | |||||||||||||
Interest rate lock commitments | 79 | — | — | 79 | |||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying consolidated balance sheets using significant unobservable (Level 3) inputs: | ||||||||||||||||
Securities | Interest Rate | ||||||||||||||||
Available for | Lock | ||||||||||||||||
Sale | Commitments | ||||||||||||||||
Balance, January 1, 2013 | $ | 840 | $ | — | |||||||||||||
Total gains or losses for the period: | |||||||||||||||||
Included in Mortgage banking activities | — | 79 | |||||||||||||||
Included in other comprehensive income | 833 | — | |||||||||||||||
Balance, December 31, 2013 | 1,673 | 79 | |||||||||||||||
Total gains or losses for the period: | |||||||||||||||||
Included in Mortgage banking activities | — | 442 | |||||||||||||||
Included in Gain (loss) on sale of securities | (259 | ) | — | ||||||||||||||
Included in other comprehensive income | 1,333 | — | |||||||||||||||
Sales | (2,747 | ) | — | ||||||||||||||
Balance, December 31, 2014 | $ | — | $ | 521 | |||||||||||||
Fair Value Measurements, Nonrecurring | The following tables present the fair value measurements recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2014 and 2013: | ||||||||||||||||
2014 | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Fair | Quoted Prices | Significant | Significant | ||||||||||||||
Value | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Impaired loans | $ | — | $ | — | $ | — | $ | — | |||||||||
2013 | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Fair | Quoted Prices | Significant | Significant | ||||||||||||||
Value | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Impaired loans | $ | 137 | $ | — | $ | — | $ | 137 | |||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill. | ||||||||||||||||
Fair Value at | Valuation | Unobservable | Range | ||||||||||||||
December 31, | Technique | Inputs | |||||||||||||||
2014 | |||||||||||||||||
IRLCs | $ | 521 | Discounted cash flow | Loan closing rates | 40 - 95% | ||||||||||||
Fair Value at | Valuation | Unobservable | Range | ||||||||||||||
December 31, | Technique | Inputs | |||||||||||||||
2013 | |||||||||||||||||
Other securities | $ | 1,673 | Discounted cash flow | Discount margin | 6% - 12.5% | ||||||||||||
Cumulative default % | 2% - 100% | ||||||||||||||||
Loss given default % | 85% - 100% | ||||||||||||||||
Cumulative prepayment % | 0% - 100% | ||||||||||||||||
Collateral dependent impaired loans | $ | 137 | Fair value of collateral | Discount for type of property and current market conditions | 0% - 54% | ||||||||||||
IRLCs | $ | 79 | Discounted cash flow | Loan closing rates | 53% - 97% | ||||||||||||
Fair Value, by Balance Sheet Grouping | The following schedule includes the carrying value and estimated fair value of all financial assets and liabilities at December 31, 2014 and 2013: | ||||||||||||||||
2014 | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Carrying | Quoted Prices | Significant | Significant | ||||||||||||||
Amount | In Active | Other | Unobservable | ||||||||||||||
Market for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Cash and cash equivalents | $ | 28,289 | $ | 28,289 | $ | — | $ | — | |||||||||
Interest-bearing time deposits | 2,000 | 2,000 | — | — | |||||||||||||
Loans held-for-sale (best efforts pricing agreements) | 2,053 | — | 2,053 | — | |||||||||||||
Loans receivable | 732,426 | — | — | 733,538 | |||||||||||||
Accrued interest receivable | 2,833 | 2,833 | — | — | |||||||||||||
Federal Home Loan Bank of Indianapolis stock | 5,350 | — | 5,350 | — | |||||||||||||
Deposits | 758,598 | 383,847 | — | 377,067 | |||||||||||||
Advances from Federal Home Loan Bank | 106,897 | — | 107,743 | — | |||||||||||||
Subordinated debt | 2,873 | — | 3,094 | — | |||||||||||||
Accrued interest payable | 97 | 97 | — | — | |||||||||||||
2013 | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Carrying | Quoted Prices | Significant | Significant | ||||||||||||||
Amount | In Active | Other | Unobservable | ||||||||||||||
Market for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Cash and cash equivalents | $ | 53,690 | $ | 53,690 | $ | — | $ | — | |||||||||
Interest-bearing time deposits | 2,500 | 2,500 | — | — | |||||||||||||
Loans held-for-sale (best efforts pricing agreements) | 4,356 | — | 4,356 | — | |||||||||||||
Loans receivable | 501,153 | — | — | 500,447 | |||||||||||||
Accrued interest receivable | 2,904 | 2,904 | — | — | |||||||||||||
Federal Home Loan Bank of Indianapolis stock | 2,943 | — | 2,943 | — | |||||||||||||
Deposits | 673,095 | 362,634 | — | 315,179 | |||||||||||||
Advances from Federal Home Loan Bank | 31,793 | — | 33,415 | — | |||||||||||||
Subordinated debt | 2,789 | — | 2,978 | — | |||||||||||||
Accrued interest payable | 102 | 102 | — | — | |||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The notional amount and fair value of IRLCs and forward contracts utilized by the Company were as follows: | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Notional | Fair | Notional | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Asset Derivatives | |||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||
IRLCs | $ | 29,967 | $ | 521 | $ | 20,752 | $ | 79 | |||||||||
Forward contracts | — | — | 30,628 | 227 | |||||||||||||
Liability Derivatives | |||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||
Forward contracts | $ | 55,102 | $ | (405 | ) | $ | — | $ | — | ||||||||
Schedule Of Derivative Instruments In Statements Of Income Fair Value | Fair values of derivative financial instruments were estimated using changes in mortgage interest rates from the date the Company entered into the IRLC and the balance sheet date. Periodic changes in the fair value of the derivative financial instruments on the consolidated statements of income for the twelve months ended December 31, 2014 and 2013 were as follows: | ||||||||||||||||
Amount of gain / (loss) recognized in the twelve months ended | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Asset Derivatives | |||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||
IRLCs | $ | 442 | $ | 79 | |||||||||||||
Forward contracts | — | 227 | |||||||||||||||
Liability Derivatives | |||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||
Forward contracts | $ | (632 | ) | $ | — | ||||||||||||
Condensed_Financial_Informatio1
Condensed Financial Information (Parent Company Only) (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||
Schedule Of Condensed Balance Sheet Of Parent Company Only | Condensed Balance Sheets | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Cash and cash equivalents | $ | 10,056 | $ | 17,983 | |||||
Investment in common stock of subsidiaries | 87,929 | 74,789 | |||||||
Premises and equipment, net | 4,542 | 4,524 | |||||||
Accrued income and other assets | 1,678 | 967 | |||||||
Total assets | $ | 104,205 | $ | 98,263 | |||||
Liabilities and Shareholders’ Equity | |||||||||
Subordinated debt | $ | 2,873 | $ | 2,789 | |||||
Note payable to the Bank | 4,000 | 4,000 | |||||||
Accrued expenses and other liabilities | 547 | 566 | |||||||
Total liabilities | 7,420 | 7,355 | |||||||
Shareholders’ equity | 96,785 | 90,908 | |||||||
Total liabilities and shareholders’ equity | $ | 104,205 | $ | 98,263 | |||||
Schedule Of Condensed Income Statement Of Parent Company Only | Condensed Statements of Income | ||||||||
Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Income | |||||||||
Dividends from subsidiaries | $ | — | $ | 500 | |||||
Total income | — | 500 | |||||||
Expenses | |||||||||
Interest on borrowings | 216 | 142 | |||||||
Professional services | 777 | 859 | |||||||
Premises & equipment | 521 | 252 | |||||||
Other expenses | 504 | 551 | |||||||
Total expenses | 2,018 | 1,804 | |||||||
Loss Before Income Tax and Equity in Undistributed Net Income of Subsidiaries | (2,018 | ) | (1,304 | ) | |||||
Income Tax Benefit | (756 | ) | (596 | ) | |||||
Loss Before Equity in Undistributed Net Income of Subsidiaries | (1,262 | ) | (708 | ) | |||||
Equity in Undistributed Net Income of Subsidiaries | 5,586 | 5,301 | |||||||
Net Income | $ | 4,324 | $ | 4,593 | |||||
Comprehensive Income (Loss) | Condensed Statements of Comprehensive Income | ||||||||
Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Net income | $ | 4,324 | $ | 4,593 | |||||
Other comprehensive income (loss) | |||||||||
Net unrealized holding gains (losses) on securities available for sale | 3,260 | (6,462 | ) | ||||||
Reclassification adjustment for (gains) losses realized | (538 | ) | 63 | ||||||
Net unrealized holding gains (losses) on securities available for sale for which an other-than-temporary impairment has been recognized in income | 751 | (129 | ) | ||||||
Reclassification adjustment for other-than-temporary impairment loss recognized in income | — | 49 | |||||||
Other comprehensive income (loss) before tax | 3,473 | (6,479 | ) | ||||||
Income tax provision (benefit) | 1,236 | (2,289 | ) | ||||||
Other comprehensive income (loss) - net of tax | 2,237 | (4,190 | ) | ||||||
Comprehensive income | $ | 6,561 | $ | 403 | |||||
Schedule Of Condensed Cash Flow Statement Of Parent Company Only | Condensed Statements of Cash Flows | ||||||||
Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Operating Activities | |||||||||
Net income | $ | 4,324 | $ | 4,593 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Equity in undistributed net income of subsidiaries | (5,586 | ) | (5,301 | ) | |||||
Depreciation and amortization | 226 | 161 | |||||||
Stock compensation expense | 120 | 127 | |||||||
Net change in: | |||||||||
Accrued income and other assets | (641 | ) | (433 | ) | |||||
Accrued expenses and other liabilities | (19 | ) | 44 | ||||||
Net cash used in operating activities | (1,576 | ) | (809 | ) | |||||
Investing Activities | |||||||||
Capital contribution to the Bank | (5,000 | ) | (13,000 | ) | |||||
Purchase of premises and equipment | (160 | ) | (4,641 | ) | |||||
Net cash used in investing activities | (5,160 | ) | (17,641 | ) | |||||
Financing Activities | |||||||||
Cash dividends paid | (1,080 | ) | (450 | ) | |||||
Proceeds from issuance of subordinated debt and related warrants | — | 3,000 | |||||||
Proceeds from loan from the Bank | — | 4,000 | |||||||
Net proceeds from common stock issuance | — | 29,101 | |||||||
Other, net | (111 | ) | — | ||||||
Net cash (used in) provided by financing activities | (1,191 | ) | 35,651 | ||||||
Net (Decrease) Increase in Cash and Cash Equivalents | (7,927 | ) | 17,201 | ||||||
Cash and Cash Equivalents at Beginning of Year | 17,983 | 782 | |||||||
Cash and Cash Equivalents at End of Year | $ | 10,056 | $ | 17,983 | |||||
Basis_of_Presentation_and_Summ3
Basis of Presentation and Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ||
Net income | $4,324 | $4,593 |
Weighted-average common shares (in shares) | 4,497,007 | 3,041,666 |
Basic earnings per share | ||
Basic earnings per common share (in dollars per share) | $0.96 | $1.51 |
Diluted earnings per share | ||
Dilutive effect of warrants (in shares) | 2,895 | 5,933 |
Dilutive effect of equity compensation (in shares) | 8,093 | 2,402 |
Weighted-average common and incremental shares (in shares) | 4,507,995 | 3,050,001 |
Diluted earnings per common share (in dollars per share) | $0.96 | $1.51 |
Number of warrants excluded from the calculation of diluted earnings per share as the exercise prices were greater than the average market price of the Company’s common stock during the year | 0 | 0 |
Basis_of_Presentation_and_Summ4
Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2006 |
Significant Accounting Policies [Line Items] | |||
Date of incorporation | 15-Sep-05 | ||
Ownership (as a percent) | 100.00% | ||
Other real estate owned | $4,488 | $4,381 | |
Dividends paid | $16,686 | ||
Equipment | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives (in years) | 3 years | ||
Equipment | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives (in years) | 5 years | ||
Buildings | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives (in years) | 39 years | ||
Land Improvements | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives (in years) | 10 years |
Cash_and_Cash_Equivalents_Deta
Cash and Cash Equivalents (Details Textual) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Cash and Cash Equivalents [Line Items] | |
Cash on deposit | $295 |
Federal Home Loan Bank of Indianapolis | |
Cash and Cash Equivalents [Line Items] | |
Cash held | 2,755 |
Federal Home Loan Bank of Chicago | |
Cash and Cash Equivalents [Line Items] | |
Cash held | $23,592 |
Securities_Details
Securities (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $137,727 | $185,091 |
Gross Unrealized Gains | 417 | 2,255 |
Gross Unrealized Losses | -626 | -5,937 |
Fair Value | 137,518 | 181,409 |
U.S. Government-sponsored agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 13,680 | 57,569 |
Gross Unrealized Gains | 129 | 470 |
Gross Unrealized Losses | -257 | -1,762 |
Fair Value | 13,552 | 56,277 |
Municipals | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 46,126 | |
Gross Unrealized Gains | 1,080 | |
Gross Unrealized Losses | -883 | |
Fair Value | 46,323 | |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 117,134 | 76,371 |
Gross Unrealized Gains | 282 | 705 |
Gross Unrealized Losses | -368 | -1,903 |
Fair Value | 117,048 | 75,173 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,913 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | -1 | |
Fair Value | 4,912 | |
Other securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,000 | 5,025 |
Gross Unrealized Gains | 6 | 0 |
Gross Unrealized Losses | 0 | -1,389 |
Fair Value | $2,006 | $3,636 |
Securities_Carrying_Value_of_S
Securities - Carrying Value of Securities by Contractual Maturity Date (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortized Cost | ||
Within one year | $0 | |
One to five years | 0 | |
Five to ten years | 811 | |
Five to ten years | 12,869 | |
Amortized Cost | 13,680 | |
Totals | 137,727 | 185,091 |
Fair Value | ||
Within one year | 0 | |
One to five years | 0 | |
Five to ten years | 801 | |
After ten years | 12,751 | |
Fair Value | 13,552 | |
Totals | 137,518 | 181,409 |
Mortgage-backed securities | ||
Amortized Cost | ||
Totals | 117,134 | 76,371 |
Fair Value | ||
Totals | 117,048 | 75,173 |
Asset-backed securities | ||
Amortized Cost | ||
Totals | 4,913 | |
Fair Value | ||
Totals | 4,912 | |
Other securities | ||
Amortized Cost | ||
Totals | 2,000 | 5,025 |
Fair Value | ||
Totals | $2,006 | $3,636 |
Securities_Gross_Unrealized_Lo
Securities - Gross Unrealized Losses and Fair Value (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value | ||
Less Than 12 Months | $56,917 | $107,070 |
12 Months or Longer | 29,956 | 2,876 |
Total | 86,873 | 109,946 |
Unrealized Losses | ||
Less Than 12 Months | -68 | -4,495 |
12 Months or Longer | -558 | -1,442 |
Total | -626 | -5,937 |
U.S. Government-sponsored agencies | ||
Fair Value | ||
Less Than 12 Months | 801 | 43,085 |
12 Months or Longer | 8,719 | 14 |
Total | 9,520 | 43,099 |
Unrealized Losses | ||
Less Than 12 Months | -10 | -1,761 |
12 Months or Longer | -247 | -1 |
Total | -257 | -1,762 |
Municipals | ||
Fair Value | ||
Less Than 12 Months | 14,105 | |
12 Months or Longer | 351 | |
Total | 14,456 | |
Unrealized Losses | ||
Less Than 12 Months | -882 | |
12 Months or Longer | -1 | |
Total | -883 | |
Mortgage-backed securities | ||
Fair Value | ||
Less Than 12 Months | 51,204 | 47,918 |
12 Months or Longer | 21,237 | 838 |
Total | 72,441 | 48,756 |
Unrealized Losses | ||
Less Than 12 Months | -57 | -1,814 |
12 Months or Longer | -311 | -89 |
Total | -368 | -1,903 |
Asset-backed securities | ||
Fair Value | ||
Less Than 12 Months | 4,912 | |
12 Months or Longer | 0 | |
Total | 4,912 | |
Unrealized Losses | ||
Less Than 12 Months | -1 | |
12 Months or Longer | 0 | |
Total | -1 | |
Other securities | ||
Fair Value | ||
Less Than 12 Months | 1,962 | |
12 Months or Longer | 1,673 | |
Total | 3,635 | |
Unrealized Losses | ||
Less Than 12 Months | -38 | |
12 Months or Longer | -1,351 | |
Total | ($1,389) |
Securities_Credit_Losses_Recog
Securities - Credit Losses Recognized in Earnings (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Reclassification adjustment for other-than-temporary impairment loss recognized in income | $0 | $49 |
Asset-backed securities | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Reclassification adjustment for other-than-temporary impairment loss recognized in income | $0 | $49 |
Securities_Credit_Losses_Recog1
Securities - Credit Losses Recognized on Investments (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Balance at beginning of period | $1,183 | $1,737 |
Realized losses related to OTTI | -1,139 | -603 |
Recoveries related to OTTI | -44 | |
Additions related to OTTI losses not previously recognized | 31 | |
Additions related to increases in previously recognized OTTI losses | 18 | |
Balance at end of period | $0 | $1,183 |
Securities_Amounts_Reclassifie
Securities - Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Investments, Debt and Equity Securities [Abstract] | ||
Gain (loss) realized in earnings | $538 | ($63) |
OTTI losses recognized in earnings | 0 | -49 |
Total reclassified amount before tax | 538 | -112 |
Tax expense (benefit) | 191 | -38 |
Total reclassifications out of accumulated other comprehensive loss | $347 | ($74) |
Securities_Details_Textual
Securities (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
investment | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of investments | 2 | |
Gross gains | $2,749 | $461 |
Gross losses | 2,211 | 524 |
Securities pledged as collateral | 130,600 | |
Total fair value | $86,873 | $109,946 |
Percentage of available-for-sale portfolio | 63.00% | 61.00% |
I Pretsl I B 2 Pooled Trust Security | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Par investment | $2,000 | |
Alesco Iv Series B2 Pooled Trust Security | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Par investment | $2,000 |
Loans_Receivable_Details
Loans Receivable (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Total loans | $727,227 | $496,166 | |
Deferred loan origination costs and premiums and discounts on purchased loans | 5,199 | 4,987 | |
Allowance for loan losses | -5,800 | -5,426 | -5,833 |
Net loans receivable | 726,626 | 495,727 | |
Commercial loans | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Total loans | 77,232 | 55,168 | |
Allowance for loan losses | -920 | -819 | -371 |
Consumer loans | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Total loans | 97,094 | 107,562 | |
Allowance for loan losses | -691 | -871 | -1,206 |
Residential Real Estate | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Total loans | 279,046 | 191,007 | |
Allowance for loan losses | -1,192 | -1,219 | -1,149 |
Commercial Real Estate | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Total loans | 273,855 | 142,429 | |
Allowance for loan losses | -2,997 | -2,517 | -3,107 |
Real estate loans | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Total loans | $552,901 | $333,436 |
Loans_Receivable_Allowance_for
Loans Receivable - Allowance for Loan Losses and the Recorded Investment in Loans (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Balance, beginning of year | ||
Balance, beginning of year | $5,426 | $5,833 |
Provision charged to expense | 349 | 324 |
Losses charged off | -857 | -1,212 |
Recoveries | 882 | 481 |
Balance, end of year | 5,800 | 5,426 |
Ending balance: individually evaluated for impairment | 15 | 242 |
Ending balance: collectively evaluated for impairment | 5,785 | 5,184 |
Loans: | ||
Ending balance | 727,227 | 496,166 |
Ending balance: individually evaluated for impairment | 1,531 | 3,077 |
Ending balance: collectively evaluated for impairment | 725,696 | 493,089 |
Commercial loans | ||
Balance, beginning of year | ||
Balance, beginning of year | 819 | 371 |
Provision charged to expense | 115 | 378 |
Losses charged off | -14 | 0 |
Recoveries | 0 | 70 |
Balance, end of year | 920 | 819 |
Ending balance: individually evaluated for impairment | 0 | 0 |
Ending balance: collectively evaluated for impairment | 920 | 819 |
Loans: | ||
Ending balance | 77,232 | 55,168 |
Ending balance: individually evaluated for impairment | 0 | 0 |
Ending balance: collectively evaluated for impairment | 77,232 | 55,168 |
Consumer loans | ||
Balance, beginning of year | ||
Balance, beginning of year | 871 | 1,206 |
Provision charged to expense | 32 | 162 |
Losses charged off | -596 | -810 |
Recoveries | 384 | 313 |
Balance, end of year | 691 | 871 |
Ending balance: individually evaluated for impairment | 15 | 28 |
Ending balance: collectively evaluated for impairment | 676 | 843 |
Loans: | ||
Ending balance | 97,094 | 107,562 |
Ending balance: individually evaluated for impairment | 305 | 339 |
Ending balance: collectively evaluated for impairment | 96,789 | 107,223 |
Residential Real Estate | ||
Balance, beginning of year | ||
Balance, beginning of year | 1,219 | 1,149 |
Provision charged to expense | 182 | 136 |
Losses charged off | -247 | -164 |
Recoveries | 38 | 98 |
Balance, end of year | 1,192 | 1,219 |
Ending balance: individually evaluated for impairment | 0 | 116 |
Ending balance: collectively evaluated for impairment | 1,192 | 1,103 |
Loans: | ||
Ending balance | 279,046 | 191,007 |
Ending balance: individually evaluated for impairment | 1,139 | 1,684 |
Ending balance: collectively evaluated for impairment | 277,907 | 189,323 |
Commercial Real Estate | ||
Balance, beginning of year | ||
Balance, beginning of year | 2,517 | 3,107 |
Provision charged to expense | 20 | -352 |
Losses charged off | 0 | -238 |
Recoveries | 460 | 0 |
Balance, end of year | 2,997 | 2,517 |
Ending balance: individually evaluated for impairment | 0 | 98 |
Ending balance: collectively evaluated for impairment | 2,997 | 2,419 |
Loans: | ||
Ending balance | 273,855 | 142,429 |
Ending balance: individually evaluated for impairment | 87 | 1,054 |
Ending balance: collectively evaluated for impairment | $273,768 | $141,375 |
Loans_Receivable_Credit_Risk_P
Loans Receivable - Credit Risk Profile (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $727,227 | $496,166 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 273,855 | 142,429 |
Commercial Real Estate | 1-5 Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 271,868 | 139,052 |
Commercial Real Estate | 6 Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 379 | 2,323 |
Commercial Real Estate | 7 Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,608 | 1,054 |
Commercial Real Estate | 8 Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 279,046 | 191,007 |
Residential Real Estate | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 279,021 | 190,377 |
Residential Real Estate | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 25 | 630 |
Commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 77,232 | 55,168 |
Commercial loans | 1-5 Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 77,232 | 54,035 |
Commercial loans | 6 Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 1,133 |
Commercial loans | 7 Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial loans | 8 Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Consumer loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 97,094 | 107,562 |
Consumer loans | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 96,971 | 107,412 |
Consumer loans | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $123 | $150 |
Loans_Receivable_Loan_Portfoli
Loans Receivable - Loan Portfolio Aging Analysis (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | $410 | $606 |
60-89 Days Past Due | 56 | 45 |
90 Days or More Past Due | 110 | 1,642 |
Total Past Due | 576 | 2,293 |
Current | 726,651 | 493,873 |
Total Loans Receivable | 727,227 | 496,166 |
Nonaccrual Loans | 235 | 1,834 |
Total Loans 90 Days or More Past Due and Accruing | 61 | 18 |
Commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
90 Days or More Past Due | 0 | 0 |
Total Past Due | 0 | 0 |
Current | 77,232 | 55,168 |
Total Loans Receivable | 77,232 | 55,168 |
Nonaccrual Loans | 0 | 0 |
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 249 | 484 |
60-89 Days Past Due | 56 | 45 |
90 Days or More Past Due | 53 | 84 |
Total Past Due | 358 | 613 |
Current | 96,736 | 106,949 |
Total Loans Receivable | 97,094 | 107,562 |
Nonaccrual Loans | 123 | 150 |
Total Loans 90 Days or More Past Due and Accruing | 4 | 18 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 161 | 122 |
60-89 Days Past Due | 0 | 0 |
90 Days or More Past Due | 57 | 603 |
Total Past Due | 218 | 725 |
Current | 278,828 | 190,282 |
Total Loans Receivable | 279,046 | 191,007 |
Nonaccrual Loans | 25 | 630 |
Total Loans 90 Days or More Past Due and Accruing | 57 | 0 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
90 Days or More Past Due | 0 | 955 |
Total Past Due | 0 | 955 |
Current | 273,855 | 141,474 |
Total Loans Receivable | 273,855 | 142,429 |
Nonaccrual Loans | 87 | 1,054 |
Total Loans 90 Days or More Past Due and Accruing | $0 | $0 |
Loans_Receivable_Impaired_Loan
Loans Receivable - Impaired Loans (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loans without a specific valuation allowance | ||
Recorded Balance | $1,494 | $2,778 |
Unpaid Principal Balance | 1,571 | 4,478 |
Average Balance | 2,312 | 2,448 |
Interest Income | 74 | 57 |
Loans with a specific valuation allowance | ||
Recorded Balance | 37 | 299 |
Unpaid Principal Balance | 51 | 319 |
Average Balance | 40 | 1,761 |
Interest Income | 4 | 10 |
Total impaired loans | ||
Recorded Balance | 1,531 | 3,077 |
Unpaid Principal Balance | 1,622 | 4,797 |
Specific Allowance | 15 | 242 |
Average Balance | 2,352 | 4,209 |
Interest Income | 78 | 67 |
Commercial loans | ||
Loans without a specific valuation allowance | ||
Recorded Balance | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Average Balance | 0 | 0 |
Interest Income | 0 | 0 |
Loans with a specific valuation allowance | ||
Recorded Balance | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Average Balance | 0 | 0 |
Interest Income | 0 | 0 |
Total impaired loans | ||
Recorded Balance | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Specific Allowance | 0 | 0 |
Average Balance | 0 | 0 |
Interest Income | 0 | 0 |
Consumer loans | ||
Loans without a specific valuation allowance | ||
Recorded Balance | 268 | 271 |
Unpaid Principal Balance | 338 | 326 |
Average Balance | 380 | 315 |
Interest Income | 37 | 28 |
Loans with a specific valuation allowance | ||
Recorded Balance | 37 | 68 |
Unpaid Principal Balance | 51 | 80 |
Average Balance | 40 | 78 |
Interest Income | 4 | 2 |
Total impaired loans | ||
Recorded Balance | 305 | 339 |
Unpaid Principal Balance | 389 | 406 |
Specific Allowance | 15 | 28 |
Average Balance | 420 | 393 |
Interest Income | 41 | 30 |
Residential Real Estate | ||
Loans without a specific valuation allowance | ||
Recorded Balance | 1,139 | 1,551 |
Unpaid Principal Balance | 1,146 | 1,842 |
Average Balance | 1,266 | 1,894 |
Interest Income | 32 | 29 |
Loans with a specific valuation allowance | ||
Recorded Balance | 0 | 133 |
Unpaid Principal Balance | 0 | 141 |
Average Balance | 0 | 66 |
Interest Income | 0 | 3 |
Total impaired loans | ||
Recorded Balance | 1,139 | 1,684 |
Unpaid Principal Balance | 1,146 | 1,983 |
Specific Allowance | 0 | 116 |
Average Balance | 1,266 | 1,960 |
Interest Income | 32 | 32 |
Commercial Real Estate | ||
Loans without a specific valuation allowance | ||
Recorded Balance | 87 | 956 |
Unpaid Principal Balance | 87 | 2,310 |
Average Balance | 666 | 239 |
Interest Income | 5 | 0 |
Loans with a specific valuation allowance | ||
Recorded Balance | 0 | 98 |
Unpaid Principal Balance | 0 | 98 |
Average Balance | 0 | 1,617 |
Interest Income | 0 | 5 |
Total impaired loans | ||
Recorded Balance | 87 | 1,054 |
Unpaid Principal Balance | 87 | 2,408 |
Specific Allowance | 0 | 98 |
Average Balance | 666 | 1,856 |
Interest Income | $5 | $5 |
Loans_Receivable_Loans_Classif
Loans Receivable - Loans Classified as TDR (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
contract | contract | |
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 1 | 4 |
Recorded Balance Before | $21 | $25 |
Recorded Balance After | 21 | 25 |
Consumer loans | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 1 | 4 |
Recorded Balance Before | 21 | 25 |
Recorded Balance After | $21 | $25 |
Loans_Receivable_Loan_Modifica
Loans Receivable - Loan Modifications (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
contract | contract | |
Financing Receivable, Impaired [Line Items] | ||
Number of Contracts | 1 | 4 |
Consumer loans | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Contracts | 1 | 4 |
Payment Extension | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Contracts | 1 | 2 |
Amount | 21 | 2 |
Payment Extension | Consumer loans | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Contracts | 1 | 2 |
Amount | 21 | 2 |
Rate Reduction | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Contracts | 0 | 2 |
Amount | 0 | 23 |
Rate Reduction | Consumer loans | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Contracts | 0 | 2 |
Amount | 0 | 23 |
Premises_and_Equipment_Details
Premises and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | ($3,734) | ($3,107) |
Premises and equipment, Net | 7,061 | 7,134 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 2,500 | 2,500 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 3,018 | 2,858 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $5,277 | $4,883 |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ||
Balance | $4,687 | $4,687 |
Changes in goodwill during the year | 0 | 0 |
Balance | $4,687 | $4,687 |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Banking and Thrift [Abstract] | ||
Regular savings accounts | $20,776 | $14,330 |
Noninterest-bearing demand deposit accounts | 21,790 | 19,386 |
Interest-bearing demand deposit accounts | 74,238 | 73,748 |
Money market accounts | 267,046 | 255,169 |
Certificates of deposits | 361,202 | 292,685 |
Brokered deposits | 13,546 | 17,777 |
Total deposits | $758,598 | $673,095 |
Deposits_Scheduled_Maturities_
Deposits - Scheduled Maturities (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Banking and Thrift [Abstract] | |
2015 | $223,078 |
2016 | 108,238 |
2017 | 19,213 |
2018 | 14,776 |
2019 | 9,435 |
Thereafter | 8 |
Time Deposits, Total | $374,748 |
Deposits_Details_Textual
Deposits (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Banking and Thrift [Abstract] | ||
Time Deposits, $100,000 or More, Total | $294,386 | $237,273 |
FHLB_Advances_Details
FHLB Advances (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Banking and Thrift [Abstract] | ||
2015 | $101,000 | |
2016 | 3,000 | |
2017 | 0 | |
2018 | 3,000 | |
Thereafter | 0 | |
Summary total | 107,000 | |
Deferred prepayment penalties on advance restructure | -103 | |
Total | $106,897 | $31,793 |
FHLB_Advances_Details_Textual
FHLB Advances (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
FHLB Advances | $106,897 | $31,793 |
Par value | 67,000 | |
Variable rate advances | 40,000 | |
Weighted average interest rate (as a percent) | 1.58% | |
Loans pledged | 212,559 | 96,195 |
Investment securities pledged | $128,185 | $73,698 |
Minimum | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Interest rate (as a percent) | 0.24% | |
Maximum | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Interest rate (as a percent) | 4.57% |
Benefit_Plans_Restricted_Stock
Benefit Plans - Restricted Stock (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock Awards | |
Restricted Stock Awards (in shares) | |
Nonvested at beginning of period | 46,232 |
Granted | 4,445 |
Vested | -19,856 |
Forfeited | -10,044 |
Nonvested at end of period | 20,777 |
Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | |
Weighted-Average Grant Date Fair Value Per Share Nonvested at January 1, 2013 | $25.09 |
Weighted-Average Grant Date Fair Value Per Share Granted | $22.50 |
Weighted-Average Grant Date Fair Value Per Share Vested | $24.51 |
Weighted-Average Grant Date Fair Value Per Share Forfeited | $25.09 |
Weighted-Average Grant Date Fair Value Per Share Nonvested at December 31, 2013 | $25.09 |
Deferred Stock Units | |
Restricted Stock Awards (in shares) | |
Nonvested at beginning of period | 0 |
Granted | 897 |
Vested | -897 |
Forfeited | 0 |
Nonvested at end of period | 0 |
Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | |
Weighted-Average Grant Date Fair Value Per Share Nonvested at January 1, 2013 | $0 |
Weighted-Average Grant Date Fair Value Per Share Granted | $22.47 |
Weighted-Average Grant Date Fair Value Per Share Vested | $22.47 |
Weighted-Average Grant Date Fair Value Per Share Forfeited | $0 |
Weighted-Average Grant Date Fair Value Per Share Nonvested at December 31, 2013 | $0 |
Benefit_Plans_Deferred_Stock_R
Benefit Plans - Deferred Stock Rights (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Deferred Rights (in shares) | |
Outstanding, beginning of year | 79,676 |
Granted | 852 |
Exercised | 0 |
Outstanding, end of year | 80,528 |
Benefit_Plans_Details_Textual
Benefit Plans (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contributions | $268 | $252 | |
Vesting (as a percent) | 50.00% | ||
Unrecognized compensation cost | 135 | ||
Weighted average expense recognition period (in years) | 1 year | ||
Director compensation expense | 205 | ||
Employer matching contribution description | The Company has a 401(k) plan established for substantially all full-time employees, as defined. Employee contributions are limited to the maximum established by the Internal Revenue Service on an annual basis. The Company has elected to match contributions equal to 100% of the first 1% of employee deferrals and then 50% on deferrals over 1% up to a maximum of 6% of an individuals total eligible salary, as defined by the plan. | ||
Grant date fair value (in dollars per share) | $20 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee deferral (as a percent) | 1.00% | ||
Vesting period (in years) | 1 year | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee deferral (as a percent) | 6.00% | ||
Vesting period (in years) | 2 years | ||
Equity Incentive Plan 2013 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 750,000 | ||
Number of shares available for future issuance | 595,500 | ||
Share-based compensation expense | $507 | $387 | |
Directors Deferred Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contributions (as a percent) | 100.00% | ||
Employee deferral (as a percent) | 1.00% | ||
Number of shares available for future issuance | 180,000 |
Income_Taxes_Provisions_Credit
Income Taxes - Provisions (Credit) for Income Taxes (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Current | $3,655 | ($693) |
Deferred | -1,529 | 2,259 |
Total | $2,126 | $1,566 |
Income_Taxes_Income_Tax_Reconc
Income Taxes - Income Tax Reconciliation (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Statutory rate times pre-tax income | $2,193 | $2,094 |
Add (subtract) the tax effect of: | ||
Income from tax-exempt securities | -31 | -514 |
State income tax, net of federal tax effect | 63 | 33 |
Bank-owned life insurance | -132 | -135 |
Other differences | 33 | 88 |
Total | $2,126 | $1,566 |
Income_Taxes_Net_Deferred_Taxe
Income Taxes - Net Deferred Taxes (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets (liabilities) | ||
Allowance for loan losses | $2,073 | $1,930 |
Unrealized loss on available for sale securities | 75 | 1,310 |
Fair value adjustments | -117 | -1,840 |
Depreciation | -590 | -270 |
Deferred compensation | 262 | 510 |
Loan origination costs | -288 | -209 |
Prepaid assets | -207 | -205 |
Accrued payroll | 458 | 155 |
Other | 546 | 536 |
Total deferred tax assets, net | $2,212 | $1,917 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
Statutory rate (as a percent) | 34.00% | 34.00% |
Related_Party_Transactions_Det
Related Party Transactions (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Related Party Transactions [Abstract] | ||
Deposits | $13,713 | $13,904 |
Regulatory_Capital_Requirement2
Regulatory Capital Requirements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual Amount | $101,033 | $96,981 |
Total capital (to risk-weighted assets), Actual Ratio (as a percent) | 13.80% | 17.10% |
Total capital (to risk-weighted assets), Minimum Capital Requirement, Amount | 58,777 | 45,386 |
Total capital (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 8.00% | 8.00% |
Tier 1 capital (to risk-weighted assets), Actual Amount | 92,233 | 88,555 |
Tier 1 capital (to risk-weighted assets), Actual Ratio (as a percent) | 12.60% | 15.60% |
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Amount | 29,388 | 22,693 |
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 4.00% | 4.00% |
Tier 1 capital (to average assets), Actual Amount | 92,233 | 88,555 |
Tier 1 capital (to average assets), Actual Ratio (as a percent) | 9.90% | 11.70% |
Tier 1 capital (to average assets), Minimum Capital Requirement, Amount | 37,381 | 30,385 |
Tier 1 capital (to average assets), Minimum Capital Requirement, Ratio (as a percent) | 4.00% | 4.00% |
Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual Amount | 89,177 | 77,862 |
Total capital (to risk-weighted assets), Actual Ratio (as a percent) | 12.20% | 13.80% |
Total capital (to risk-weighted assets), Minimum Capital Requirement, Amount | 58,600 | 45,287 |
Total capital (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 8.00% | 8.00% |
Total capital (to risk-weighted assets), Minimum to be Well Capitalized Under Prompt Corrective Actions, Amount | 73,250 | 56,609 |
Total capital (to risk-weighted assets), Minimum to be Well Capitalized Under Prompt Corrective Actions, Ratio (as a percent) | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets), Actual Amount | 83,377 | 72,436 |
Tier 1 capital (to risk-weighted assets), Actual Ratio (as a percent) | 11.40% | 12.80% |
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Amount | 29,300 | 22,644 |
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 4.00% | 4.00% |
Tier 1 capital (to risk-weighted assets), Minimum to be Wel Capitalized Under Prompt Corrective Actions, Amount | 43,950 | 33,965 |
Tier 1 capital (to risk-weighted assets), Minimum to be Wel Capitalized Under Prompt Corrective Actions, Ratio (as a percent) | 6.00% | 6.00% |
Tier 1 capital (to average assets), Actual Amount | 83,377 | 72,436 |
Tier 1 capital (to average assets), Actual Ratio (as a percent) | 8.90% | 9.60% |
Tier 1 capital (to average assets), Minimum Capital Requirement, Amount | 37,303 | 30,329 |
Tier 1 capital (to average assets), Minimum Capital Requirement, Ratio (as a percent) | 4.00% | 4.00% |
Tier 1 capital (to average assets), Minimum to be Well Capitalized Under Prompt Corrective Actions, Amount | $46,629 | $37,911 |
Tier 1 capital (to average assets), Minimum to be Well Capitalized Under Prompt Corrective Actions, Ratio (as a percent) | 5.00% | 5.00% |
Commitments_and_Credit_Risk_De
Commitments and Credit Risk (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $611 |
2016 | 557 |
2017 | 517 |
2018 | 526 |
2019 | 534 |
Thereafter | 634 |
Total | $3,379 |
Commitments_and_Credit_Risk_De1
Commitments and Credit Risk (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ||
Loan commitments | $110,393 | $49,100 |
Operating lease expense | $495 | $468 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | $137,518 | $181,409 |
Loans held-for-sale (mandatory pricing agreements) | 32,618 | 24,254 |
Interest rate lock commitments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivatives | 521 | 79 |
Forward contracts | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivatives | -405 | 227 |
Loans held for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Loans held-for-sale (mandatory pricing agreements) | 32,618 | 24,254 |
U.S. Government-sponsored agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 13,552 | 56,277 |
Municipals | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 46,323 | |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 117,048 | 75,173 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 4,912 | |
Other securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 2,006 | 3,636 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 2,006 | 1,963 |
Loans held-for-sale (mandatory pricing agreements) | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate lock commitments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivatives | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward contracts | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivatives | -405 | 227 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Loans held for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Loans held-for-sale (mandatory pricing agreements) | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government-sponsored agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipals | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 2,006 | 1,963 |
Significant Other Observable Inputs (Level 2) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 135,512 | 177,773 |
Loans held-for-sale (mandatory pricing agreements) | 2,053 | 4,356 |
Significant Other Observable Inputs (Level 2) | Interest rate lock commitments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivatives | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Forward contracts | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivatives | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Loans held for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Loans held-for-sale (mandatory pricing agreements) | 32,618 | 24,254 |
Significant Other Observable Inputs (Level 2) | U.S. Government-sponsored agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 13,552 | 56,277 |
Significant Other Observable Inputs (Level 2) | Municipals | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 46,323 | |
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 117,048 | 75,173 |
Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 4,912 | |
Significant Other Observable Inputs (Level 2) | Other securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 0 | 1,673 |
Loans held-for-sale (mandatory pricing agreements) | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Interest rate lock commitments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivatives | 521 | 79 |
Significant Unobservable Inputs (Level 3) | Forward contracts | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Loans held for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Loans held-for-sale (mandatory pricing agreements) | 0 | 0 |
Significant Unobservable Inputs (Level 3) | U.S. Government-sponsored agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Municipals | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 0 | |
Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | 0 | |
Significant Unobservable Inputs (Level 3) | Other securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale securities | $0 | $1,673 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Recurring Fair Value Measurements Reconciliation (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Interest rate lock commitments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance | $79 | $0 |
Total gains or losses for the period: | ||
Included in other comprehensive income | 0 | 0 |
Balance | 521 | 79 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | |
Loans held for sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance | 1,673 | 840 |
Total gains or losses for the period: | ||
Included in other comprehensive income | 1,333 | 833 |
Balance | 0 | 1,673 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | -2,747 | |
Included in Mortgage banking activities | Interest rate lock commitments | ||
Total gains or losses for the period: | ||
Included in Mortgage banking activities | 442 | 79 |
Included in Mortgage banking activities | Loans held for sale | ||
Total gains or losses for the period: | ||
Included in Mortgage banking activities | 0 | 0 |
Included in other comprehensive income | Interest rate lock commitments | ||
Total gains or losses for the period: | ||
Included in Mortgage banking activities | 0 | |
Included in other comprehensive income | Loans held for sale | ||
Total gains or losses for the period: | ||
Included in Mortgage banking activities | ($259) |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments - Impaired Loans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | $0 | $137 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | $0 | $137 |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments - Unobservable (Level 3) Inputs (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Interest rate lock commitments | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
IRLCs, Fair Value | 521 | 79 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Other securities, Fair Value | 1,673 | |
Other securities, Valuation Technique | Discounted cash flow | |
Other securities, Unobservable Inputs | Discount margin Cumulative default % Loss given default % Cumulative prepayment % | |
Collateral dependent impaired loans, Fair Value | 137 | |
Collateral dependent impaired loans, Valuation Technique | Fair value of collateral | |
Collateral dependent impaired loans, Unobservable Inputs | Discount for type of property and current market conditions | |
Significant Unobservable Inputs (Level 3) | Interest rate lock commitments | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Other securities, Valuation Technique | Discounted cash flow | |
Other securities, Unobservable Inputs | Loan closing rates | |
IRLCs, Fair Value | 521 | 79 |
Significant Unobservable Inputs (Level 3) | Minimum | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Other securities, Range, Discount margin (as a percent) | 6.00% | |
Other securities, Range, Cumulative default (as a percent) | 2.00% | |
Other securities, Range, Loss given default (as a percent) | 85.00% | |
Other securities, Range, Cumulative prepayment (as a percent) | 0.00% | |
Collateral dependent impaired loans, Range, Marketability discount (as a percent) | 0.00% | |
Significant Unobservable Inputs (Level 3) | Minimum | Interest rate lock commitments | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
IRLC, Range, Loan closing rates (as a percent) | 40.00% | 53.00% |
Significant Unobservable Inputs (Level 3) | Maximum | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Other securities, Range, Discount margin (as a percent) | 12.50% | |
Other securities, Range, Cumulative default (as a percent) | 100.00% | |
Other securities, Range, Loss given default (as a percent) | 100.00% | |
Other securities, Range, Cumulative prepayment (as a percent) | 100.00% | |
Collateral dependent impaired loans, Range, Marketability discount (as a percent) | 54.00% | |
Significant Unobservable Inputs (Level 3) | Maximum | Interest rate lock commitments | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
IRLC, Range, Loan closing rates (as a percent) | 95.00% | 97.00% |
Fair_Value_of_Financial_Instru6
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Carrying Value | $28,289 | $53,690 | $32,513 |
Interest-bearing time deposits, Carrying Amount | 2,000 | 2,500 | |
Loans held for sale, Carrying Amount | 2,053 | 4,356 | |
Loans held-for-sale, Fair Value | 32,618 | 24,254 | |
Loans receivable | 732,426 | 501,153 | |
Loans receivable - net, Carrying Amount | 726,626 | 495,727 | |
Accrued interest receivable, Carrying Amount | 2,833 | 2,904 | |
FHLB stock, Carrying Amount | 5,350 | 2,943 | |
Deposits, Carrying Amount | 758,598 | 673,095 | |
FHLB advances, Carrying Amount | 106,897 | 31,793 | |
Subordinated Debt, Carrying Value | 2,873 | 2,789 | |
Accrued interest payable, Carrying Amount | 97 | 102 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents, Fair Value | 28,289 | 53,690 | |
Interest bearing time deposits, Fair Value | 2,000 | 2,500 | |
Loans held-for-sale, Fair Value | 0 | 0 | |
Loans receivable - net, Fair Value | 0 | 0 | |
Accrued interest receivable, Fair Value | 2,833 | 2,904 | |
FHLB stock, Fair Value | 0 | 0 | |
Deposits, Fair Value | 383,847 | 362,634 | |
FHLB advances, Fair Value | 0 | 0 | |
Subordinated Debt, Fair Value | 0 | 0 | |
Accrued interest payable, Fair Value | 97 | 102 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents, Fair Value | 0 | 0 | |
Interest bearing time deposits, Fair Value | 0 | 0 | |
Loans held-for-sale, Fair Value | 2,053 | 4,356 | |
Loans receivable - net, Fair Value | 0 | 0 | |
Accrued interest receivable, Fair Value | 0 | 0 | |
FHLB stock, Fair Value | 5,350 | 2,943 | |
Deposits, Fair Value | 0 | 0 | |
FHLB advances, Fair Value | 107,743 | 33,415 | |
Subordinated Debt, Fair Value | 3,094 | 2,978 | |
Accrued interest payable, Fair Value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents, Fair Value | 0 | 0 | |
Interest bearing time deposits, Fair Value | 0 | 0 | |
Loans held-for-sale, Fair Value | 0 | 0 | |
Loans receivable - net, Fair Value | 733,538 | 500,447 | |
Accrued interest receivable, Fair Value | 0 | 0 | |
FHLB stock, Fair Value | 0 | 0 | |
Deposits, Fair Value | 377,067 | 315,179 | |
FHLB advances, Fair Value | 0 | 0 | |
Subordinated Debt, Fair Value | 0 | 0 | |
Accrued interest payable, Fair Value | $0 | $0 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Notional Amounts and Fair Value (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
IRLCs | ||
Asset Derivatives | ||
Notional Amount | $29,967 | $20,752 |
Fair Value | 521 | 79 |
Forward contracts | ||
Asset Derivatives | ||
Notional Amount | 0 | 30,628 |
Fair Value | 0 | 227 |
Liability Derivatives | ||
Notional Amount | 55,102 | 0 |
Fair Value | ($405) | $0 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Gain (Loss) Recognized (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Asset Derivatives | IRLCs | ||
Asset Derivatives | ||
Derivatives not designated as hedging instruments | $442 | $79 |
Asset Derivatives | Forward contracts | ||
Asset Derivatives | ||
Derivatives not designated as hedging instruments | 0 | 227 |
Liability Derivatives | Forward contracts | ||
Asset Derivatives | ||
Derivatives not designated as hedging instruments | ($632) | $0 |
Subordinated_Debenture_Details
Subordinated Debenture (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended |
Jun. 28, 2013 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Warrants (in shares) | 48,750 | |
Exercise price (in shares) | $19.33 | |
Warrant exercise price description | The warrant became exercisable on June 28, 2014, and, unless previously exercised, will expire on June 28, 2021. The Company has the right to force an exercise of the warrant after the debenture has been repaid in full if the 20-day volume-weighted average price of a share of its common stock exceeds $30.00. | |
Weighted average share price period (in days) | 20 days | |
Weighted average price (in dollars per share) | $30 | |
Fair value of warrant (in dollars per share) | $255,000 | |
Risk-free interest date (as a percent) | 0.66% | |
Expected dividend yield (as a percent) | 1.19% | |
Expected volatility (as a percent) | 34.00% | |
Expected term (in years) | 3 years | |
Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Principal amount | $3,000,000 | |
Annual rate (as a percent) | 8.00% | |
Maturity date | 28-Jun-21 | |
Maturity date range, start | 28-Jun-16 |
Shareholders_Equity_Details_Te
Shareholders' Equity (Details Textual) (IPO, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
IPO | |
Shareholders Equity [Line Items] | |
Common stock issued (in shares) | 1,587 |
Net proceeds | $29,101 |
Condensed_Financial_Informatio2
Condensed Financial Information (Parent Company Only) - Condensed Balance Sheets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Assets | |||
Cash and cash equivalents | $28,289 | $53,690 | $32,513 |
Premises and equipment, net | 7,061 | 7,134 | |
Accrued income and other assets | 4,655 | 6,422 | |
Total assets | 970,503 | 802,342 | |
Liabilities and Shareholders’ Equity | |||
Subordinated debt | 2,873 | 2,789 | |
Accrued expenses and other liabilities | 5,253 | 3,655 | |
Total liabilities | 873,718 | 711,434 | |
Total shareholders’ equity | 96,785 | 90,908 | 61,350 |
Total liabilities and shareholders’ equity | 970,503 | 802,342 | |
Parent Company | |||
Assets | |||
Cash and cash equivalents | 10,056 | 17,983 | 782 |
Investment in common stock of subsidiaries | 87,929 | 74,789 | |
Premises and equipment, net | 4,542 | 4,524 | |
Accrued income and other assets | 1,678 | 967 | |
Total assets | 104,205 | 98,263 | |
Liabilities and Shareholders’ Equity | |||
Subordinated debt | 2,873 | 2,789 | |
Note payable to the Bank | 4,000 | 4,000 | |
Accrued expenses and other liabilities | 547 | 566 | |
Total liabilities | 7,420 | 7,355 | |
Total shareholders’ equity | 96,785 | 90,908 | |
Total liabilities and shareholders’ equity | $104,205 | $98,263 |
Condensed_Financial_Informatio3
Condensed Financial Information (Parent Company Only) - Condensed Statements of Income (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income | ||
Total interest income | $31,215 | $25,536 |
Expenses | ||
Interest on borrowings | 1,275 | 1,227 |
Professional services | 1,902 | 2,152 |
Premises & equipment | 2,937 | 2,196 |
Income Tax Benefit | 2,126 | 1,566 |
Net Income | 4,324 | 4,593 |
Parent Company | ||
Income | ||
Dividends from subsidiaries | 0 | 500 |
Total interest income | 0 | 500 |
Expenses | ||
Interest on borrowings | 216 | 142 |
Professional services | 777 | 859 |
Premises & equipment | 521 | 252 |
Other expenses | 504 | 551 |
Total expenses | 2,018 | 1,804 |
Loss Before Income Tax and Equity in Undistributed Net Income of Subsidiaries | -2,018 | -1,304 |
Income Tax Benefit | -756 | -596 |
Loss Before Equity in Undistributed Net Income of Subsidiaries | -1,262 | -708 |
Equity in Undistributed Net Income of Subsidiaries | 5,586 | 5,301 |
Net Income | $4,324 | $4,593 |
Condensed_Financial_Informatio4
Condensed Financial Information (Parent Company Only) - Condensed Statements of Comprehensive Income (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule Of Condensed Comprehensive Income [Line Items] | ||
Net income | $4,324 | $4,593 |
Other comprehensive income (loss) | ||
Net unrealized holding gains (losses) on securities available for sale | 3,260 | -6,462 |
Reclassification adjustment for (gains) losses realized | -538 | 63 |
Net unrealized holding gains (losses) on securities available for sale for which an other-than-temporary impairment has been recognized in income | 0 | -129 |
Reclassification adjustment for other-than-temporary impairment loss recognized in income | 0 | 49 |
Other comprehensive income (loss) before tax | 3,473 | -6,479 |
Income tax provision (benefit) | 1,236 | -2,289 |
Other comprehensive income (loss) - net of tax | 2,237 | -4,190 |
Comprehensive income | 6,561 | 403 |
Parent Company | ||
Schedule Of Condensed Comprehensive Income [Line Items] | ||
Net income | 4,324 | 4,593 |
Other comprehensive income (loss) | ||
Net unrealized holding gains (losses) on securities available for sale | 3,260 | -6,462 |
Reclassification adjustment for (gains) losses realized | -538 | 63 |
Net unrealized holding gains (losses) on securities available for sale for which an other-than-temporary impairment has been recognized in income | 751 | -129 |
Reclassification adjustment for other-than-temporary impairment loss recognized in income | 0 | 49 |
Other comprehensive income (loss) before tax | 3,473 | -6,479 |
Income tax provision (benefit) | 1,236 | -2,289 |
Other comprehensive income (loss) - net of tax | 2,237 | -4,190 |
Comprehensive income | $6,561 | $403 |
Condensed_Financial_Informatio5
Condensed Financial Information (Parent Company Only) - Condensed Statements of Cash Flows (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Operating Activities | ||
Net income | $4,324 | $4,593 |
Depreciation and amortization | 1,904 | 2,257 |
Stock compensation expense | 507 | 514 |
Accrued income and other assets | 1,964 | -2,415 |
Accrued expenses and other liabilities | 1,189 | -36 |
Investing Activities | ||
Purchase of premises and equipment | -915 | -7,187 |
Financing Activities | ||
Cash dividends paid | -1,080 | -450 |
Proceeds from issuance of subordinated debt and related warrants | 0 | 3,000 |
Net proceeds from common stock issuance | 0 | 29,101 |
Other, net | -111 | 0 |
Net (Decrease) Increase in Cash and Cash Equivalents | -25,401 | 21,177 |
Cash and Cash Equivalents, Beginning of Year | 53,690 | 32,513 |
Cash and Cash Equivalents, End of Year | 28,289 | 53,690 |
Parent Company | ||
Operating Activities | ||
Net income | 4,324 | 4,593 |
Equity in undistributed net income of subsidiaries | -5,586 | -5,301 |
Depreciation and amortization | 226 | 161 |
Stock compensation expense | 120 | 127 |
Accrued income and other assets | -641 | -433 |
Accrued expenses and other liabilities | -19 | 44 |
Net cash used in operating activities | -1,576 | -809 |
Investing Activities | ||
Capital contribution to the Bank | -5,000 | -13,000 |
Purchase of premises and equipment | -160 | -4,641 |
Net cash used in investing activities | -5,160 | -17,641 |
Financing Activities | ||
Cash dividends paid | -1,080 | -450 |
Proceeds from issuance of subordinated debt and related warrants | 0 | 3,000 |
Proceeds from loan from the Bank | 0 | 4,000 |
Net proceeds from common stock issuance | 0 | 29,101 |
Other, net | -111 | 0 |
Net cash (used in) provided by financing activities | -1,191 | 35,651 |
Net (Decrease) Increase in Cash and Cash Equivalents | -7,927 | 17,201 |
Cash and Cash Equivalents, Beginning of Year | 17,983 | 782 |
Cash and Cash Equivalents, End of Year | $10,056 | $17,983 |