Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 05, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | First Internet Bancorp | ||
Entity Central Index Key | 0001562463 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Trading Symbol | INBK | ||
Entity Common Stock, Shares Outstanding | 10,134,234 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | FY | ||
Document Fiscal Year Focus | 2018 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 329.7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 7,080 | $ 4,539 |
Interest-bearing demand deposits | 181,632 | 43,442 |
Total cash and cash equivalents | 188,712 | 47,981 |
Securities available-for-sale - at fair value (amortized cost of $499,893 in 2018 and $481,357 in 2017) | 481,345 | 473,275 |
Securities held-to-maturity - at amortized cost (fair value of $22,418 in 2018 and $19,083 in 2017) | 22,750 | 19,209 |
Loans held-for-sale (includes $18,328 in 2018 and $23,571 in 2017 at fair value) | 18,328 | 51,407 |
Loans | 2,716,228 | 2,091,193 |
Allowance for loan losses | (17,896) | (14,970) |
Net loans | 2,698,332 | 2,076,223 |
Accrued interest receivable | 16,822 | 11,944 |
Federal Home Loan Bank of Indianapolis stock | 23,625 | 19,575 |
Cash surrender value of bank-owned life insurance | 36,059 | 35,105 |
Premises and equipment, net | 10,697 | 10,058 |
Goodwill | 4,687 | 4,687 |
Other real estate owned | 2,619 | 5,041 |
Accrued income and other assets | 37,716 | 13,182 |
Total assets | 3,541,692 | 2,767,687 |
Liabilities | ||
Noninterest-bearing deposits | 43,301 | 44,686 |
Interest-bearing deposits | 2,628,050 | 2,040,255 |
Total deposits | 2,671,351 | 2,084,941 |
Advances from Federal Home Loan Bank | 525,153 | 410,176 |
Subordinated debt, net of unamortized discounts and debt issuance costs of $1,125 in 2018 and $1,274 in 2017 | 33,875 | 36,726 |
Accrued interest payable | 1,108 | 311 |
Accrued expenses and other liabilities | 21,470 | 11,406 |
Total liabilities | 3,252,957 | 2,543,560 |
Commitments and Contingencies | ||
Shareholders’ equity | ||
Preferred stock, no par value; 4,913,779 shares authorized; issued and outstanding - none | 0 | 0 |
Retained earnings | 77,689 | 57,103 |
Accumulated other comprehensive loss | (16,541) | (5,019) |
Total shareholders’ equity | 288,735 | 224,127 |
Total liabilities and shareholders’ equity | 3,541,692 | 2,767,687 |
Voting Common Stock | ||
Shareholders’ equity | ||
Voting and nonvoting common stock | 227,587 | 172,043 |
Nonvoting Common Stock | ||
Shareholders’ equity | ||
Voting and nonvoting common stock | $ 0 | $ 0 |
Consolidated Balance Sheets _Pa
Consolidated Balance Sheets [Parenthetical] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized cost, at fair value | $ 499,893 | $ 481,357 |
Held-to-maturity securities, fair value | 22,418 | 19,083 |
Loans held-for-sale, Fair Value | 18,328 | 23,571 |
Unamortized discounts and debt issuance costs | $ 1,125 | $ 1,274 |
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) | 10,170,778 | 8,411,077 |
Common stock, shares outstanding (in shares) | 10,170,778 | 8,411,077 |
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 Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income | |||
Loans | $ 99,082 | $ 70,465 | $ 49,054 |
Securities – taxable | 10,630 | 10,036 | 7,326 |
Securities – non-taxable | 2,810 | 2,786 | 1,856 |
Other earning assets | 2,945 | 1,410 | 663 |
Total interest income | 115,467 | 84,697 | 58,899 |
Interest expense | |||
Deposits | 42,484 | 23,975 | 15,853 |
Other borrowed funds | 10,716 | 6,740 | 3,357 |
Total interest expense | 53,200 | 30,715 | 19,210 |
Net interest income | 62,267 | 53,982 | 39,689 |
Provision for loan losses | 3,892 | 4,872 | 4,330 |
Net interest income after provision for loan losses | 58,375 | 49,110 | 35,359 |
Noninterest income | |||
Service charges and fees | 934 | 888 | 818 |
Mortgage banking activities | 5,718 | 7,836 | 12,398 |
Gain on sale of loans | 503 | 395 | 0 |
Other | 1,605 | 1,422 | 861 |
Total noninterest income | 8,760 | 10,541 | 14,077 |
Noninterest expense | |||
Salaries and employee benefits | 23,174 | 21,164 | 17,387 |
Marketing, advertising and promotion | 2,468 | 2,393 | 1,823 |
Consulting and professional fees | 3,055 | 3,091 | 3,143 |
Data processing | 1,233 | 971 | 1,127 |
Loan expenses | 942 | 1,027 | 891 |
Premises and equipment | 4,996 | 4,183 | 3,699 |
Deposit insurance premium | 1,956 | 1,410 | 1,159 |
Write-down of other real estate owned | 2,423 | 0 | 0 |
Other | 2,936 | 2,484 | 2,222 |
Total noninterest expense | 43,183 | 36,723 | 31,451 |
Income before income taxes | 23,952 | 22,928 | 17,985 |
Income tax provision | 2,052 | 7,702 | 5,911 |
Net income | $ 21,900 | $ 15,226 | $ 12,074 |
Income Per Share of Common Stock (in dollars per share) | |||
Basic (in dollars per share) | $ 2.31 | $ 2.14 | $ 2.32 |
Diluted (in dollars per share) | $ 2.30 | $ 2.13 | $ 2.30 |
Weighted-average number of common shares outstanding | |||
Basic (shares) | 9,490,506 | 7,118,628 | 5,211,209 |
Diluted (shares) | 9,508,653 | 7,149,302 | 5,239,082 |
Dividends Declared Per Share (in dollars per share) | $ 0.24 | $ 0.24 | $ 0.24 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income | $ 3,576 | $ 6,288 | $ 6,008 | $ 6,028 | $ 3,498 | $ 4,895 | $ 4,001 | $ 2,832 | $ 21,900 | $ 15,226 | $ 12,074 |
Other comprehensive income | |||||||||||
Net unrealized holding (losses) gains on securities available-for-sale recorded within other comprehensive income before income tax | (10,466) | 6,280 | (12,315) | ||||||||
Reclassification adjustment for losses (gains) realized | 0 | 8 | (177) | ||||||||
Net unrealized holding losses on cash flow hedging derivatives recorded within other comprehensive income before income tax | (4,358) | 0 | 0 | ||||||||
Other comprehensive (loss) income before tax | (14,824) | 6,288 | (12,492) | ||||||||
Income tax (benefit) provision | (4,365) | 2,039 | (4,433) | ||||||||
Other comprehensive (loss) income - net of tax | (10,459) | 4,249 | (8,059) | ||||||||
Comprehensive income | $ 11,441 | $ 19,475 | $ 4,015 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common StockVoting and Nonvoting Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance at Dec. 31, 2015 | $ 104,330 | $ 72,559 | $ 32,980 | $ (1,209) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 12,074 | 12,074 | ||
Other comprehensive income (loss) | (8,059) | (8,059) | ||
Cash dividends declared | (1,350) | (1,350) | ||
Net cash proceeds from common stock issuance | 46,223 | 46,223 | ||
Recognition of the fair value of share-based compensation | 736 | 736 | ||
Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units | 30 | 30 | ||
Excess tax benefit on share-based compensation | 49 | 49 | ||
Common stock redeemed for the net settlement of share-based awards | (91) | (91) | ||
Balance at Dec. 31, 2016 | 153,942 | 119,506 | 43,704 | (9,268) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 15,226 | 15,226 | ||
Other comprehensive income (loss) | 4,249 | 4,249 | ||
Cash dividends declared | (1,827) | (1,827) | ||
Net cash proceeds from common stock issuance | 51,636 | 51,636 | ||
Recognition of the fair value of share-based compensation | 1,038 | 1,038 | ||
Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units | 36 | 36 | ||
Common stock redeemed for the net settlement of share-based awards | (173) | (173) | ||
Balance at Dec. 31, 2017 | 224,127 | 172,043 | 57,103 | (5,019) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Retained earnings | 57,103 | |||
Net income | 21,900 | 21,900 | ||
Other comprehensive income (loss) | (10,459) | (10,459) | ||
Cash dividends declared | (2,377) | (2,377) | ||
Net cash proceeds from common stock issuance | 54,334 | 54,334 | ||
Repurchase of common stock | (216) | (216) | ||
Recognition of the fair value of share-based compensation | 1,596 | 1,596 | ||
Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units | 40 | 40 | ||
Common stock redeemed for the net settlement of share-based awards | (210) | (210) | ||
Balance at Dec. 31, 2018 | 288,735 | $ 227,587 | $ 77,689 | $ (16,541) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Retained earnings | $ 77,689 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity [Parenthetical] - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared (in dollars per share) | $ 0.24 | $ 0.24 | $ 0.24 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net income | $ 21,900 | $ 15,226 | $ 12,074 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 5,667 | 5,299 | 3,799 |
Write-down of other real estate owned | 2,423 | 0 | 0 |
Increase in cash surrender value of bank-owned life insurance | (954) | (910) | (468) |
Provision for loan losses | 3,892 | 4,872 | 4,330 |
Share-based compensation expense | 1,596 | 1,038 | 736 |
Loss (gain) from sale of available-for-sale securities | 0 | 8 | (177) |
Loans originated for sale | (364,630) | (412,925) | (598,439) |
Proceeds from sale of loans originated for sale | 376,535 | 425,262 | 619,818 |
Gain on sale of loans | (6,605) | (8,170) | (12,462) |
(Increase) decrease in fair value of loans held-for-sale | (57) | (638) | 500 |
Loss (gain) on derivatives | 501 | 577 | (436) |
Deferred income tax | 978 | (3,296) | 3,544 |
Net change in other assets | (11,807) | (2,273) | (7,390) |
Net change in other liabilities | (83) | 554 | 1,041 |
Net cash provided by operating activities | 29,356 | 24,624 | 26,470 |
Investing activities | |||
Net loan activity, excluding sales and purchases | (463,528) | (870,181) | (247,957) |
Net change in interest-bearing deposits | 0 | 250 | 750 |
Purchase of bank owned life insurance | 0 | (10,000) | (11,000) |
Proceeds from sales of other real estate owned | 332 | 30 | 0 |
Net proceeds from sale of portfolio loans | 41,916 | 67,696 | 0 |
Maturities of securities available-for-sale | 62,507 | 68,342 | 42,616 |
Proceeds from sale of securities available-for-sale | 0 | 9,192 | 49,430 |
Purchase of securities available-for-sale | (87,993) | (91,463) | (349,683) |
Purchase of securities held-to-maturity | (3,554) | (2,550) | (16,672) |
Purchase of Federal Home Loan Bank of Indianapolis stock | (4,050) | (10,665) | (315) |
Purchase of premises and equipment | (2,219) | (1,517) | (3,173) |
Loans purchased | (171,958) | (67,285) | (50,718) |
Other investing activities | (10,166) | 0 | 0 |
Net cash used in investing activities | (638,713) | (908,151) | (586,722) |
Financing activities | |||
Net increase in deposits | 586,410 | 622,074 | 506,813 |
Cash dividends paid | (2,230) | (1,675) | (1,199) |
Net proceeds from issuance of subordinated debt | 0 | 0 | 23,757 |
Repayment of subordinated debt | (3,000) | 0 | 0 |
Net proceeds from common stock issuance | 54,334 | 51,636 | 46,223 |
Repurchase of common stock | (216) | 0 | 0 |
Proceeds from advances from Federal Home Loan Bank | 375,000 | 542,000 | 157,000 |
Repayment of advances from Federal Home Loan Bank | (260,000) | (321,806) | (158,000) |
Other, net | (210) | (173) | (42) |
Net cash provided by financing activities | 750,088 | 892,056 | 574,552 |
Net increase in cash and cash equivalents | 140,731 | 8,529 | 14,300 |
Cash and cash equivalents, beginning of year | 47,981 | 39,452 | 25,152 |
Cash and cash equivalents, end of year | 188,712 | 47,981 | 39,452 |
Supplemental disclosures of cash flows information | |||
Cash paid during the year for interest | 52,403 | 30,516 | 19,215 |
Cash paid during the year for taxes | 485 | 6,568 | 5,894 |
Loans transferred to other real estate owned | 227 | 648 | 45 |
Loans transferred to held-for-sale from portfolio | 16,065 | 95,531 | 0 |
Cash dividends declared, not paid | 611 | 504 | 388 |
Capital committed to Small Business Investment Company fund, not contributed | 0 | 0 | 4,000 |
Transfer of mutual fund securities to other assets | $ 2,932 | $ 0 | $ 0 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and 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 consummated a plan of exchange on March 21, 2006, by which the Company became a bank holding company and 100% owner 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 Fishers, Indiana as well as a loan production office in Tempe, Arizona. 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. First Internet Public Finance Corp., a wholly owned subsidiary of the Bank, was incorporated on March 6, 2017 and was established to provide municipal finance lending and leasing products to government entities and to purchase, manage, service, and safekeep municipal securities. SPF15, Inc., a wholly owned subsidiary of the Bank, was incorporated on August 31, 2018 and was formed to acquire and hold real estate. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its direct and indirect subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company’s business activities are currently limited to one reporting unit and reportable segment, which is commercial banking. Use of Estimates The preparation of financial statements in conformity with GAAP 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 loan losses and income taxes and valuation and impairments of investment securities and goodwill, as well as fair value measurements of derivatives, loans held-for-sale and other real estate owned. 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. • 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, 2018 or 2017 . • 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 using 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 the loan. Revenue Recognition The Company recognizes revenues as they are earned based on contractual terms, as transactions occur, or as services are provided and collectability is reasonably assured. The Company's principal source of revenue is interest income from loans and leases and investment securities. 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. The Company also earns noninterest income through a variety of financial and transaction services provided to corporate and consumer clients such as deposit account, debit card and mortgage banking. Revenue is recorded for noninterest income based on the contractual terms for the service or transaction performed. In certain circumstances, noninterest income is reported net of associated expenses. Loans Loans that management intends to hold until maturity are reported at their outstanding principal balance adjusted for unearned income, charge-offs, the allowance for loan losses (“ALLL”), 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 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 sixteen quarters. 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 considers two weighted average net charge-off trends: 1) the Company’s average loss history over the previous sixteen quarters; and 2) the average loss history over the previous sixteen quarters for a peer group. 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. 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, in accordance with the impairment accounting guidance 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 delays generally not exceeding 90 days outstanding are not considered impaired. Certain nonaccrual and substantially all delinquent loans more than 90 days past due 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 and nonaccrual loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due. Impaired loans include nonperforming loans but also include loans modified in TDRs 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. 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. Troubled Debt Restructurings 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 The Company’s policy is to charge off a loan at any point in time when it no longer can be considered a bankable asset, meaning collectible within the parameters of policy. A secured loan is generally charged down 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 is charged off no later than when it is 180 days past due as to principal or interest. A home improvement loan generally is charged off no later than when it is 90 days past due as to principal or interest. 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. 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, ten years for land improvements, and 39 years for buildings. 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 other real estate owned are capitalized, whereas costs relating to holding and maintaining the property are charged to expense as incurred. 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 interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. Additionally, the Company enters into forward contracts for the future delivery of mortgage loans to third-party investors and enters into interest rate lock commitments ("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. Designating an interest rate swap as an accounting hedge allows the Company to recognize gains and losses, less any ineffectiveness, in the income statement within the same period that the hedged item affects earnings. The Company includes the gain or loss on the hedged items in the same line item as the offsetting loss or gain on the related interest rate swaps. For derivative instruments that are designated and qualify as cash flow hedges, any gains or losses related to changes in fair value are recorded in accumulated other comprehensive loss, net of tax. The fair value of interest rate swaps with a positive fair value are reported in accrued income and other assets in the consolidated balance sheets while interest rate swaps with a negative fair value are reported in accrued expenses and other liabilities in the consolidated balance sheets. The IRLCs and forward contracts 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. 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 There were no transfers that occurred and, therefore, recognized, between any of the fair value hierarchy levels at December 31, 2018 or 2017. 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 2015. 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 material 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, 2018 2017 2016 Basic earnings per share Net income available to common shareholders $ 21,900 $ 15,226 $ 12,074 Weighted-average common shares 9,490,506 7,118,628 5,211,209 Basic earnings per common share $ 2.31 $ 2.14 $ 2.32 Diluted earnings per share Net income available to common shareholders $ 21,900 $ 15,226 $ 12,074 Weighted-average common shares 9,490,506 7,118,628 5,211,209 Dilutive effect of warrants — 6,120 11,026 Dilutive effect of equity compensation 18,147 24,554 16,847 Weighted-average common and incremental shares 9,508,653 7,149,302 5,239,082 Diluted earnings per common share $ 2.30 $ 2.13 $ 2.30 Share-based Compensation The Company has a share-based compensation plan using the fair value recognition provisions of ASC Topic 718, Compensation - Stock Compensation . The plan is described more fully in Note 10. 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 and unrealized gains and losses on cash flow hedges. 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 2017 and 2016 financial statements to conform to the 2018 financial statement presentation. These reclassifications had no effect on net income. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents At December 31, 2018 , the Company’s interest-bearing and noninterest-bearing cash accounts at other institutions exceeded the limits for full FDIC insurance coverage by $32.2 million . In addition, approximately $ 5.4 million and $ 144.1 million of cash was 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, 2018 was $ 1.6 million . |
Securities
Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The following tables summarize securities available-for-sale and securities held-to-maturity as of December 31, 2018 and 2017 . December 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities available-for-sale U.S. Government-sponsored agencies $ 109,631 $ 20 $ (2,066 ) $ 107,585 Municipal securities 97,090 90 (4,674 ) 92,506 Mortgage-backed securities 251,492 162 (8,742 ) 242,912 Asset-backed securities 5,002 — (143 ) 4,859 Corporate securities 36,678 — (3,195 ) 33,483 Total available-for-sale $ 499,893 $ 272 $ (18,820 ) $ 481,345 December 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities held-to-maturity Municipal securities $ 10,157 $ — $ (356 ) $ 9,801 Corporate securities 12,593 80 (56 ) 12,617 Total held-to-maturity $ 22,750 $ 80 $ (412 ) $ 22,418 December 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities available-for-sale U.S. Government-sponsored agencies $ 133,424 $ 531 $ (765 ) $ 133,190 Municipal securities 97,370 366 (1,359 ) 96,377 Mortgage-backed securities 215,452 15 (5,747 ) 209,720 Asset-backed securities 5,000 9 — 5,009 Corporate securities 27,111 103 (1,167 ) 26,047 Other securities 3,000 — (68 ) 2,932 Total available-for-sale $ 481,357 $ 1,024 $ (9,106 ) $ 473,275 December 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities held-to-maturity Municipal securities $ 10,164 $ 40 $ (357 ) $ 9,847 Corporate securities 9,045 191 — 9,236 Total held-to-maturity $ 19,209 $ 231 $ (357 ) $ 19,083 The carrying value of securities at December 31, 2018 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 Within one year $ — $ — One to five years 291 273 Five to ten years 62,119 59,805 After ten years 180,989 173,496 243,399 233,574 Mortgage-backed securities 251,492 242,912 Asset-backed securities 5,002 4,859 Total $ 499,893 $ 481,345 Held-to-Maturity Amortized Cost Fair Value Five to ten years $ 16,836 $ 16,698 After ten years 5,914 5,720 Total $ 22,750 $ 22,418 Gross realized gains of $0.0 million , $0.0 million , and $0.2 million and gross realized losses of $0.0 million , $0.0 million , and $0.0 million resulting from sales of available-for-sale securities were recognized during the twelve months ended December 31, 2018 , 2017 , and 2016 , respectively. As of December 31, 2018 , the fair value of available-for-sale investment securities pledged as collateral was $445.8 million . The Company pledged the securities for various types of transactions, including FHLB advances, derivative financial instruments and to collateralize municipal deposits. 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, 2018 and 2017 was $469.8 million and $354.6 million , which is approximately 93% and 72% , respectively, of the Company’s available-for-sale and held-to-maturity securities portfolio. These declines primarily resulted from fluctuations in market interest rates after purchase. 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 is identified. U.S. Government-Sponsored Agencies, Municipal Securities, and Corporate Securities The unrealized losses on the Company’s investments in securities issued by U.S. Government-sponsored agencies, municipal organizations and corporate entities 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. 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, 2018 . Mortgage-Backed and Asset-Backed Securities The unrealized losses on the Company’s investments in mortgage-backed and 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 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, 2018 . The following tables show the securities portfolio’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, 2018 and 2017 : December 31, 2018 Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Securities available-for-sale U.S. Government-sponsored agencies $ 69,798 $ (893 ) $ 33,511 $ (1,173 ) $ 103,309 $ (2,066 ) Municipal securities 23,747 (710 ) 59,938 (3,964 ) 83,685 (4,674 ) Mortgage-backed securities 56,177 (529 ) 172,442 (8,213 ) 228,619 (8,742 ) Asset-backed securities 4,859 (143 ) — — 4,859 (143 ) Corporate securities 14,092 (586 ) 19,391 (2,609 ) 33,483 (3,195 ) Total $ 168,673 $ (2,861 ) $ 285,282 $ (15,959 ) $ 453,955 $ (18,820 ) December 31, 2018 Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Securities held-to-maturity Municipal securities $ 9,801 $ (356 ) $ — $ — $ 9,801 $ (356 ) Corporate securities 6,037 (56 ) — — 6,037 (56 ) Total $ 15,838 $ (412 ) $ — $ — $ 15,838 $ (412 ) December 31, 2017 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Securities available-for-sale U.S. Government-sponsored agencies $ 30,194 $ (256 ) $ 22,824 $ (509 ) $ 53,018 $ (765 ) Municipals 5,638 (77 ) 57,128 (1,282 ) 62,766 (1,359 ) Mortgage-backed securities 29,542 (251 ) 177,266 (5,496 ) 206,808 (5,747 ) Corporate securities 1,852 (148 ) 18,981 (1,019 ) 20,833 (1,167 ) Other securities — — 2,932 (68 ) 2,932 (68 ) Total $ 67,226 $ (732 ) $ 279,131 $ (8,374 ) $ 346,357 $ (9,106 ) December 31, 2017 Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Securities held-to-maturity Municipal securities $ 8,255 $ (357 ) $ — $ — $ 8,255 $ (357 ) Total $ 8,255 $ (357 ) $ — $ — $ 8,255 $ (357 ) Amounts reclassified from accumulated other comprehensive loss and the affected line items in the consolidated statements of income during the years ended December 31, 2018 , 2017 and 2016 were as follows: Details About Accumulated Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss for the Year Ended December 31, Affected Line Item in the Statements of Income 2018 2017 2016 Unrealized gains and losses on securities available-for-sale (Loss) gain realized in earnings $ — $ (8 ) $ 177 Other Total reclassified amount before tax — (8 ) 177 Income before income taxes Tax (benefit) expense — (3 ) 63 Income tax provision Total reclassifications out of accumulated other comprehensive loss $ — $ (5 ) $ 114 Net Income |
Loans
Loans | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans | Loans Categories of loans include: December 31, 2018 2017 Commercial loans Commercial and industrial $ 114,382 $ 122,940 Owner-occupied commercial real estate 87,962 75,768 Investor commercial real estate 5,391 7,273 Construction 39,916 49,213 Single tenant lease financing 919,440 803,299 Public finance 706,342 438,341 Healthcare finance 117,007 31,573 Total commercial loans 1,990,440 1,528,407 Consumer loans Residential mortgage 399,898 299,935 Home equity 28,735 30,554 Other consumer 279,771 227,533 Total consumer loans 708,404 558,022 Total commercial and consumer loans 2,698,844 2,086,429 Net deferred loan origination costs and premiums and discounts on purchased loans and other (1) 17,384 4,764 Total loans 2,716,228 2,091,193 Allowance for loan losses (17,896 ) (14,970 ) Net loans $ 2,698,332 $ 2,076,223 (1) Includes carrying value adjustments of $5.0 million and $0.3 million as of December 31, 2018 and 2017, respectively, related to interest rate swaps associated with public finance loans. The risk characteristics of each loan portfolio segment are as follows: Commercial and Industrial: Commercial and industrial loans’ sources of repayment 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 and industrial loans are secured by the assets being financed and may incorporate a personal guarantee. This portfolio segment is generally concentrated in Central Indiana and adjacent markets and the greater Phoenix, Arizona market. Owner-Occupied Commercial Real Estate: The primary source of repayment is the cash flow from the ongoing operations and activities conducted by the borrower, or an affiliate of the borrower, who owns the property. This portfolio segment is generally concentrated in Central Indiana and adjacent markets and the greater Phoenix, Arizona market and its loans are often secured by manufacturing and service facilities, as well as office buildings. Investor Commercial Real Estate: These loans are underwritten primarily based on the cash flow expected to be generated from the property and are secondarily supported by the value of the real estate. These loans typically incorporate a personal guarantee from the primary sponsor or sponsors. This portfolio segment generally involves larger loan amounts with repayment primarily dependent on the successful leasing and operation of the property securing the loan or the business conducted on the property securing the loan. Investor commercial real estate loans may be more adversely affected by changing economic conditions in the real estate markets, industry dynamics or the overall health of the local economy where the property is located. The properties securing the Company’s investor commercial real estate portfolio tend to be diverse in terms of property type and are ideally located in the state of Indiana or markets immediately adjacent to Indiana. Management monitors and evaluates commercial real estate loans based on property financial performance, collateral value, guarantor strength, economic and industry conditions together with 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 mitigate these additional risks. Construction: Construction loans are secured by land and related improvements and are made to assist in the construction of new structures, which may include commercial (retail, industrial, office, multi-family) properties or single family residential properties offered for sale by the builder. These loans generally finance a variety of project costs, including land, site preparation, architectural services, construction, closing and soft costs and interim financing needs. The cash flows of builders, while initially predictable, may fluctuate with market conditions, and the value of the collateral securing these loans may be subject to fluctuations based on general economic changes. This portfolio segment is generally concentrated in Central Indiana. Single Tenant Lease Financing: These loans are made on a nationwide basis to property owners of real estate subject to long-term lease arrangements with single tenant operators. The real estate is typically operated by regionally, nationally or globally branded businesses. The loans are underwritten based on the financial strength of the borrower, characteristics of the real estate, cash flows generated from the lease arrangements and the financial strength of the tenant. Similar to the other loan portfolio segments, management monitors and evaluates these loans based on borrower and tenant financial performance, collateral value, industry trends and other risk grade criteria. Public Finance: These loans are made to governmental and not-for-profit entities to provide both tax-exempt and taxable loans for a variety of purposes including: short-term cash-flow needs; debt refinancing; economic development; quality of life projects; infrastructure improvements; and equipment financing. The primary sources of repayment for public finance loans include pledged revenue sources including but not limited to: general obligations; property taxes; income taxes; tax increment revenue; utility revenue; gaming revenues; sales tax; and pledged general revenue. Certain loans may also include an additional collateral pledge of mortgaged property or a security interest in financed equipment. Public finance loans have been completed primarily in the Midwest, with plans to continue expanding nationwide. Healthcare Finance: These loans are made to healthcare providers, primarily dentists, for refinancing or acquiring practices, refinancing or acquiring owner-occupied commercial real estate, and equipment purchases. These loans’ sources of repayment are primarily based on the identified cash flows of the borrower (including ongoing operations and activities conducted by the borrower, or an affiliate of the borrower, who owns the property) and secondarily on the underlying collateral provided by the borrower. This portfolio segment is generally concentrated in the Western United States with plans to expand nationwide. Residential Mortgage: With respect to residential loans that are secured by 1 to 4 family residences and are generally owner occupied, the Company typically establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Repayment of these loans is primarily dependent on the financial circumstances of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in residential property values. 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. Home Equity: Home equity loans and lines of credit are typically secured by a subordinate interest in 1 to 4 family residences. The properties securing the home equity portfolio segment are generally geographically diverse as the Company offers these products on a nationwide basis. Repayment of these loans and lines of credit is primarily dependent on the financial circumstances of the borrowers and may be impacted by changes in unemployment levels and property values on residential properties, among other economic conditions in the market. Other Consumer: These loans primarily consist of consumer loans and credit cards. Consumer loans may be secured by consumer assets such as horse trailers or recreational vehicles. Some consumer loans are unsecured, such as small installment loans, home improvement 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 changes in the balance of the ALLL during the twelve months ended December 31, 2018 , 2017 , and 2016 . Twelve Months Ended December 31, 2018 Balance, beginning of period Provision (credit) charged to expense Losses charged off Recoveries Balance, end of period Allowance for loan losses: Commercial and industrial $ 1,738 $ (170 ) $ (92 ) $ 3 $ 1,479 Owner-occupied commercial real estate 803 88 — — 891 Investor commercial real estate 85 (24 ) — — 61 Construction 423 (172 ) — — 251 Single tenant lease financing 7,872 955 — — 8,827 Public finance 959 711 — — 1,670 Healthcare finance 313 951 — — 1,264 Residential mortgage 956 127 (9 ) 5 1,079 Home equity 70 (33 ) — 16 53 Other consumer 1,751 1,459 (1,176 ) 287 2,321 Total $ 14,970 $ 3,892 $ (1,277 ) $ 311 $ 17,896 Twelve Months Ended December 31, 2017 Balance, beginning of period Provision (credit) charged to expense Losses charged off Recoveries Balance, end of period Allowance for loan losses: Commercial and industrial $ 1,352 $ 588 $ (271 ) $ 69 $ 1,738 Owner-occupied commercial real estate 582 221 — — 803 Investor commercial real estate 168 (83 ) — — 85 Construction 544 (121 ) — — 423 Single tenant lease financing 6,248 1,624 — — 7,872 Public finance — 959 — — 959 Healthcare finance — 313 — — 313 Residential mortgage 754 314 (116 ) 4 956 Home equity 102 (55 ) — 23 70 Other consumer 1,231 1,112 (895 ) 303 1,751 Total $ 10,981 $ 4,872 $ (1,282 ) $ 399 $ 14,970 Twelve Months Ended December 31, 2016 Balance, beginning of period Provision (credit) charged to expense Losses charged off Recoveries Balance, end of period Allowance for loan losses: Commercial and industrial $ 1,367 $ 1,380 $ (1,582 ) $ 187 $ 1,352 Owner-occupied commercial real estate 476 106 — — 582 Investor commercial real estate 212 (44 ) — — 168 Construction 500 44 — — 544 Single tenant lease financing 3,931 2,317 — — 6,248 Residential mortgage 896 (38 ) (134 ) 30 754 Home equity 125 (3 ) (33 ) 13 102 Other consumer 844 568 (440 ) 259 1,231 Total $ 8,351 $ 4,330 $ (2,189 ) $ 489 $ 10,981 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, 2018 and 2017 . Loans Allowance for Loan Losses December 31, 2018 Ending Balance: Collectively Evaluated for Impairment Ending Balance: Individually Evaluated for Impairment Ending Balance Ending Balance: Ending Balance: Ending Balance Commercial and industrial $ 108,742 $ 5,640 $ 114,382 $ 1,479 $ — $ 1,479 Owner-occupied commercial real estate 85,653 2,309 87,962 891 — 891 Investor commercial real estate 5,391 — 5,391 61 — 61 Construction 39,916 — 39,916 251 — 251 Single tenant lease financing 919,440 — 919,440 8,827 — 8,827 Public finance 706,342 — 706,342 1,670 — 1,670 Healthcare finance 117,007 — 117,007 1,264 — 1,264 Residential mortgage 399,328 570 399,898 1,079 — 1,079 Home equity 28,680 55 28,735 53 — 53 Other consumer 279,714 57 279,771 2,321 — 2,321 Total $ 2,690,213 $ 8,631 $ 2,698,844 $ 17,896 $ — $ 17,896 Loans Allowance for Loan Losses December 31, 2017 Ending Balance: Collectively Evaluated for Impairment Ending Balance: Individually Evaluated for Impairment Ending Balance Ending Balance: Ending Balance: Ending Balance Commercial and industrial $ 119,054 $ 3,886 $ 122,940 $ 1,738 $ — $ 1,738 Owner-occupied commercial real estate 75,761 7 75,768 803 — 803 Investor commercial real estate 7,273 — 7,273 85 — 85 Construction 49,213 — 49,213 423 — 423 Single tenant lease financing 803,299 — 803,299 7,872 — 7,872 Public finance 438,341 — 438,341 959 — 959 Healthcare finance 31,573 — 31,573 313 — 313 Residential mortgage 298,796 1,139 299,935 956 — 956 Home equity 30,471 83 30,554 70 — 70 Other consumer 227,443 90 227,533 1,751 — 1,751 Total $ 2,081,224 $ 5,205 $ 2,086,429 $ 14,970 $ — $ 14,970 The Company utilizes a risk grading matrix to assign a risk grade to each of its commercial loans. A description of the general characteristics of the risk grades is as follows: • “Pass” - Higher quality loans that do not fit any of the other categories described below. • “Special Mention” - Loans that possess some credit deficiency or potential weakness which deserve close attention. • “Substandard” - 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” - 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” - 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 commercial and consumer loan portfolios based on rating category and payment activity as of December 31, 2018 and 2017 . December 31, 2018 Pass Special Mention Substandard Total Commercial and industrial $ 107,666 $ 1,076 $ 5,640 $ 114,382 Owner-occupied commercial real estate 81,264 4,389 2,309 87,962 Investor commercial real estate 5,391 — — 5,391 Construction 39,916 — — 39,916 Single tenant lease financing 913,984 5,456 — 919,440 Public finance 706,342 — — 706,342 Healthcare finance 117,007 — — 117,007 Total commercial loans $ 1,971,570 $ 10,921 $ 7,949 $ 1,990,440 December 31, 2018 Performing Nonaccrual Total Residential mortgage $ 399,723 $ 175 $ 399,898 Home equity 28,680 55 28,735 Other consumer 279,729 42 279,771 Total $ 708,132 $ 272 $ 708,404 December 31, 2017 Pass Special Mention Substandard Total Commercial and industrial $ 113,840 $ 5,203 $ 3,897 $ 122,940 Owner-occupied commercial real estate 72,995 2,766 7 75,768 Investor commercial real estate 7,273 — — 7,273 Construction 49,213 — — 49,213 Single tenant lease financing 796,307 6,992 — 803,299 Public finance 438,341 — — 438,341 Healthcare finance 31,573 — — 31,573 Total commercial loans $ 1,509,542 $ 14,961 $ 3,904 $ 1,528,407 December 31, 2017 Performing Nonaccrual Total Residential mortgage $ 299,211 $ 724 $ 299,935 Home equity 30,471 83 30,554 Other consumer 227,501 32 227,533 Total $ 557,183 $ 839 $ 558,022 The following tables present the Company’s loan portfolio delinquency analysis as of December 31, 2018 and 2017 . December 31, 2018 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total loans Nonaccrual Loans Total Loans 90 Days or More Past Due and Accruing Commercial and industrial $ 9 $ — $ — $ 9 $ 114,373 $ 114,382 $ 195 $ — Owner-occupied commercial real estate 92 234 — 326 87,636 87,962 325 — Investor commercial real estate — — — — 5,391 5,391 — — Construction — — — — 39,916 39,916 — — Single tenant lease financing — — — — 919,440 919,440 — — Public finance — — — — 706,342 706,342 — — Healthcare finance — — — — 117,007 117,007 — — Residential mortgage — 3,118 98 3,216 396,682 399,898 175 97 Home equity — — 55 55 28,680 28,735 55 — Other consumer 235 170 4 409 279,362 279,771 42 — Total $ 336 $ 3,522 $ 157 $ 4,015 $ 2,694,829 $ 2,698,844 $ 792 $ 97 December 31, 2017 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total loans Nonaccrual Loans Total Loans 90 Days or More Past Due and Accruing Commercial and industrial $ — $ 10 $ — $ 10 $ 122,930 $ 122,940 $ — $ — Owner-occupied commercial real estate — — — — 75,768 75,768 — — Investor commercial real estate — — — — 7,273 7,273 — — Construction — — — — 49,213 49,213 — — Single tenant lease financing — — — — 803,299 803,299 — — Public finance — — — 438,341 438,341 — — Healthcare finance — — — 31,573 31,573 — — Residential mortgage — 23 560 583 299,352 299,935 724 — Home equity — — 83 83 30,471 30,554 83 — Other consumer 299 110 6 415 227,118 227,533 32 — Total $ 299 $ 143 $ 649 $ 1,091 $ 2,085,338 $ 2,086,429 $ 839 $ — The following tables present the Company’s impaired loans as of December 31, 2018 and 2017 . There were no impaired loans with a specific valuation allowance as of December 31, 2018 and 2017 . December 31, 2018 December 31, 2017 Recorded Unpaid Specific Recorded Unpaid Specific Loans without a specific valuation allowance Commercial and industrial $ 5,640 $ 5,652 $ — $ 3,886 $ 3,886 $ — Owner-occupied commercial real estate 2,309 2,309 — 7 7 — Residential mortgage 570 570 — 1,139 1,144 — Home equity 55 55 — 83 83 — Other consumer 57 124 — 90 143 — Total impaired loans $ 8,631 $ 8,710 $ — $ 5,205 $ 5,263 $ — The table below presents average balances and interest income recognized for impaired loans during the twelve months ended December 31, 2018 , 2017 , and 2016 . Twelve Months Ended December 31, 2018 December 31, 2017 December 31, 2016 Average Interest Average Interest Average Interest Loans without a specific valuation allowance Commercial and industrial $ 5,961 $ 426 $ 2,942 $ 146 $ — $ — Owner-occupied commercial real estate 893 59 3 — — — Residential mortgage 720 — 1,546 6 1,595 8 Home equity 61 — 5 — — — Other consumer 108 — 105 4 149 5 Total 7,743 485 4,601 156 1,744 13 Loans with a specific valuation allowance Commercial and industrial — — 35 — 1,084 — Total — — 35 — 1,084 — Total impaired loans $ 7,743 $ 485 $ 4,636 $ 156 $ 2,828 $ 13 As of December 31, 2018 and December 31, 2017 , the Company had $0.6 million in residential mortgage other real estate owned. There were $0.0 million and $0.2 million of loans at December 31, 2018 and December 31, 2017 , respectively, in the process of foreclosure. Troubled Debt Restructurings The loan portfolio includes TDRs, which are loans that have been modified to grant economic concessions 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 consecutive months. When loans are modified in a TDR, any possible impairment similar to other impaired loans is evaluated based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, or using 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 allowance or charge-off to the allowance. In periods subsequent to modification, all TDRs, including those that have payment defaults, are evaluated for possible impairment, and impairment is recognized through the allowance. 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 modification is reviewed by the Company to identify whether a TDR has occurred 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. There were no loans classified as new TDRs during the twelve months ended December 31, 2018. There were two commercial and industrial loans classified as new TDRs during the twelve months ended December 31, 2017 with a pre-modification and post-modification outstanding recorded investment of $1.8 million . These loans were paid-in-full in the fourth quarter of 2017. The 2017 modifications consisted of maturity date amendments and certain other term modifications. There were no loans classified as new TDRs during the twelve months ended December 31, 2016. There were no performing TDRs which had payment defaults within the twelve months following modification during the years ended December 31, 2018, 2017 and 2016. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The following table summarizes premises and equipment at December 31, 2018 and 2017 . December 31, 2018 2017 Land $ 2,500 $ 2,500 Building and improvements 6,752 6,427 Furniture and equipment 9,076 7,610 Less: accumulated depreciation (7,631 ) (6,479 ) $ 10,697 $ 10,058 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill As of December 31, 2018 and 2017 , the carrying amount of goodwill was $4.7 million . There have been no changes in the carrying amount of goodwill for the three years ended December 31, 2018 , 2017 , and 2016 . 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, 2018 annual impairment test that would suggest it was more likely than not goodwill impairment existed. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits The following table presents the composition of the Company’s deposit base as of December 31, 2018 and 2017 . December 31, 2018 2017 Noninterest-bearing demand deposit accounts $ 43,301 $ 44,686 Interest-bearing demand deposit accounts 121,055 94,674 Regular savings accounts 38,489 49,939 Money market accounts 528,533 499,501 Certificates of deposits 1,292,883 1,319,488 Brokered deposits 647,090 76,653 Total deposits $ 2,671,351 $ 2,084,941 Time deposits (in the amount of $250 or more) $ 494,403 $ 453,034 The following table presents time deposit maturities by year as of December 31, 2018 . 2019 $ 762,263 2020 256,624 2021 316,649 2022 56,399 2023 59,890 Thereafter 502 $ 1,452,327 |
FHLB Advances
FHLB Advances | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
FHLB Advances | FHLB Advances The Company had outstanding FHLB advances of $525.2 million and $410.2 million as of December 31, 2018 and 2017 , respectively. As of December 31, 2018 , the interest rates on the Company’s outstanding FHLB advances ranged from 1.06% to 3.26% , with a weighted average interest rate of 2.15% . All advances are collateralized by residential mortgage loans and commercial real estate loans pledged and held by the Company and investment securities pledged by the Company and held in safekeeping with the FHLB. Residential mortgage loans pledged were approximately $238.6 million and $226.3 million as of December 31, 2018 and 2017 , respectively, and commercial real estate loans pledged were approximately $881.7 million and $808.9 million as of December 31, 2018 and 2017, respectively. The fair value of investment securities pledged to the FHLB was approximately $339.1 million and $362.8 million as of December 31, 2018 and 2017 , respectively. Based on this collateral and the Company’s holdings of FHLB stock, the Company is eligible to borrow up to an additional $494.3 million at year-end 2018. As of December 31, 2018, the Company had $230.0 million of putable advances with the FHLB. The Company’s FHLB advances are scheduled to mature according to the following schedule: Amount 2019 $ 140,000 2020 — 2021 — 2022 60,000 2023 35,000 Thereafter 290,000 525,000 Net deferred prepayment gain on advance restructure 153 $ 525,153 |
Subordinated Debt
Subordinated Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Subordinated Debt | Subordinated Debt In June 2013, the Company issued a subordinated debenture (the “2021 Debenture”) in the principal amount of $3.0 million . The 2021 Debenture bore a fixed interest rate of 8.00% per year, payable quarterly, and was scheduled to mature on June 28, 2021. The 2021 Debenture could be repaid, without penalty, at any time after June 28, 2016. The Company repaid the 2021 Debenture in full in June 2018. In connection with the 2021 Debenture, the Company also issued a warrant to purchase up to 48,750 shares of common stock at an initial per share exercise price equal to $19.33 . The warrant became exercisable on June 28, 2014. On May 4, 2017, the holder of the warrant exercised the warrant in full and the Company issued a net amount of 15,915 shares of common stock. The holder satisfied the exercise price by instructing the Company to withhold 32,835 of the shares of common stock in accordance with the warrant’s cashless exercise feature. In October 2015, the Company entered into a term loan in the principal amount of $10.0 million , evidenced by a term note due 2025 (the “2025 Note”). The 2025 Note bears a fixed interest rate of 6.4375% per year, payable quarterly, and is scheduled to mature on October 1, 2025. The 2025 Note is an unsecured subordinated obligation of the Company and may be repaid, without penalty, on any interest payment date on or after October 15, 2020. The 2025 Note is intended to qualify as Tier 2 capital under regulatory guidelines. In September 2016, the Company issued $25.0 million aggregate principal amount of 6.0% Fixed-to-Floating Rate Subordinated Notes due 2026 (the “2026 Notes”) in a public offering. The 2026 Notes initially bear a fixed interest rate of 6.00% per year to, but excluding September 30, 2021, and thereafter a floating rate equal to the then-current three-month London Interbank Offered Rate (“LIBOR”) plus 485 basis points. LIBOR will be phased-out after 2021 and the transition to another benchmark rate could have an adverse effect on the 2026 Notes. Refer to Part I Item 1A. Risk Factors for more information on the LIBOR phase out. All interest on the 2026 Notes is payable quarterly. The 2026 Notes are scheduled to mature on September 30, 2026. The 2026 Notes are unsecured subordinated obligations of the Company and may be repaid, without penalty, on any interest payment date on or after September 30, 2021. The 2026 Notes are intended to qualify as Tier 2 capital under regulatory guidelines. The following table presents the principal balance and unamortized discount and debt issuance costs for the 2021 Debenture, the 2025 Note and the 2026 Notes as of December 31, 2018 and 2017 . December 31, 2018 December 31, 2017 Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs 2021 Debenture $ — — 3,000 — 2025 Note 10,000 (162 ) 10,000 (186 ) 2026 Notes 25,000 (963 ) 25,000 (1,088 ) Total $ 35,000 (1,125 ) 38,000 (1,274 ) |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans 401(k) Plan The Company has a 401(k) plan established for substantially all full-time employees, as defined in the plan. 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 in 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 employment. Contributions totaled approximately $0.5 million , $0.5 million and $0.4 million in the twelve months ended December 31, 2018 , 2017 and 2016, respectively. Employment Agreement The Company has entered into an employment agreement with its Chief Executive Officer that provides for an annual base salary and an annual bonus, if any, as determined from time to time by the Compensation Committee. The annual bonus is to be determined with reference to the achievement of annual performance objectives established by the Compensation Committee for the Chief Executive Officer and other senior officers. The agreement also provides that the Chief Executive Officer may be awarded additional compensation, benefits or consideration as the Compensation Committee may determine. The agreement 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 in the agreement, along with other specific conditions. 2013 Equity Incentive Plan The 2013 Equity Incentive Plan (“2013 Plan”) authorizes the issuance of up to 750,000 shares of the Company’s common stock in the form of equity-based awards to employees, directors, and other eligible persons. 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 share-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 $1.6 million , $1.0 million , and $0.7 million of share-based compensation expense for the years ended December 31, 2018 , 2017 , and 2016 , respectively, related to awards made under the 2013 Plan. The following table summarizes the status of the 2013 Plan awards as of December 31, 2018 , and activity for the year ended December 31, 2018 : Restricted Stock Units Weighted-Average Grant Date Fair Value Per Share Restricted Stock Awards Weighted-Average Grant Date Fair Value Per Share Deferred Stock Units Weighted-Average Grant Date Fair Value Per Unit Unvested at January 1, 2018 72,765 $ 27.91 3,333 $ 24.44 — $ — Granted 41,507 40.64 11,294 38.75 6 34.00 Vested (34,241 ) 26.06 (12,961 ) 37.39 (6 ) (34.00 ) Forfeited (4,477 ) 34.57 — — — — Unvested at December 31, 2018 75,554 $ 35.34 1,666 $ 24.44 — $ — As of December 31, 2018 , the total unrecognized compensation cost related to unvested awards was $1.7 million , with a weighted-average expense recognition period of 1.9 years. Directors Deferred Stock Plan Until January 1, 2014, the Company had a stock compensation plan for non-employee 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. The following table summarizes the status of deferred stock rights related to the Directors Deferred Stock Plan for the year ended December 31, 2018 . Deferred Rights Outstanding, beginning of year 82,995 Granted 526 Exercised — Outstanding, end of year 83,521 All deferred stock rights granted during 2018 were additional rights issued in lieu of cash dividends payable on outstanding deferred stock rights. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes consists of the following: December 31, 2018 2017 2016 Current $ 1,074 $ 10,998 $ 2,367 Deferred 978 (5,142 ) 3,544 Net deferred tax asset revaluation — 1,846 — Total $ 2,052 $ 7,702 $ 5,911 The Tax Cuts and Jobs Act of 2017 ("Tax Act") was enacted on December 22, 2017. Among other changes, the Tax Act reduced the federal corporate tax rate from 35% to 21%. Deferred tax assets and liabilities, as of December 31, 2017, were revalued based on the rate expected to reverse in the future, which was 21%. Income tax provision is reconciled to the statutory rate applied to pre-tax income. The statutory rate was 21% , 35% and 34% at December 31, 2018, 2017 and 2016, respectively. December 31, 2018 2017 2016 Statutory rate times pre-tax income $ 5,030 $ 8,025 $ 6,115 (Subtract) add the tax effect of: Income from tax-exempt securities and loans (3,833 ) (2,512 ) (635 ) State income tax, net of federal tax effect 1,164 693 567 Bank-owned life insurance (200 ) (318 ) (159 ) Net deferred tax asset revaluation — 1,846 — Tax credits (180 ) — — Other differences 71 (32 ) 23 Total income taxes $ 2,052 $ 7,702 $ 5,911 The net deferred tax asset at December 31, 2018 and 2017 consists of the following: December 31, 2018 2017 Deferred tax assets (liabilities) Allowance for loan losses $ 4,832 $ 3,873 Unrealized loss on available-for-sale securities 6,137 1,939 Fair value adjustments (5,016 ) (2,213 ) Depreciation (398 ) (263 ) Deferred compensation and accrued payroll 1,043 1,051 Loan origination costs (1,081 ) (783 ) Prepaid assets (406 ) (288 ) Net operating loss 455 — Tax credits 231 — Other 808 69 Total deferred tax assets, net $ 6,605 $ 3,385 As of December 31, 2018 the Company had approximately $2.2 million of federal net operating loss carryforwards, with no expiration date, available to offset future taxable income. Additionally, as of December 31, 2018, the Company had approximately $0.2 million of general business credit carryovers that will expire in 2038. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
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 the normal risk of collectability or present other unfavorable features. Management evaluated related party loans and extensions of credit at December 31, 2018 and 2017 , and deemed the balances immaterial. Deposits from related parties held by the Company at December 31, 2018 and 2017 totaled $24.0 million and $22.8 million , respectively. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Regulatory Capital Requirements | Regulatory Capital Requirements The Company and the Bank are subject to various regulatory capital requirements administered by state and federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weighting and other factors. The Basel III Capital Rules became effective for the Company and the Bank on January 1, 2015, subject to a phase-in period for certain provisions. Quantitative measures established by the Basel III Capital Rules to ensure capital adequacy require the maintenance of minimum amounts and ratios of Common Equity Tier 1 capital, Tier 1 capital and Total capital, as defined in the regulations, to risk-weighted assets, and of Tier 1 capital to adjusted quarterly average assets (“Leverage Ratio”). As fully phased in effective January 1, 2019, the Basel III Capital Rules require the Company and the Bank to maintain: 1) a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of 4.5% , plus a 2.5% “capital conservation buffer” (resulting in a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of 7.0% ); 2) a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0% , plus the capital conservation buffer (resulting in a minimum Tier 1 capital ratio of 8.5% ); 3) a minimum ratio of Total capital to risk-weighted assets of 8.0% , plus the capital conservation buffer (resulting in a minimum Total capital ratio of 10.5% ); and 4) a minimum Leverage Ratio of 4.0% . The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and was phased in over a four -year period until it reached 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress. Failure to maintain the minimum Common Equity Tier 1 ratio plus the capital conservation buffer will result in potential restrictions on a banking institution’s ability to pay dividends, repurchase stock and/or pay discretionary compensation to its employees. The following tables present actual and required capital ratios as of December 31, 2018 and 2017 for the Company and the Bank under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of December 31, 2018 and 2017 based on the phase-in provisions of the Basel III Capital Rules and the minimum required capital levels as of January 1, 2019 when the Basel III Capital Rules were fully phased-in, in each case, including the capital conservation buffer required during such period. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Actual Minimum Capital Required - Basel III Phase-In Schedule Minimum Capital Required - Basel III Fully Phased-In Minimum Required to be Considered Well Capitalized Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio As of December 31, 2018: Common equity tier 1 capital to risk-weighted assets Consolidated $ 300,589 12.39 % $ 154,613 6.38 % $ 169,771 7.00 % N/A N/A Bank 286,012 11.81 % 154,407 6.38 % 169,545 7.00 % 157,435 6.50 % Tier 1 capital to risk-weighted assets Consolidated 300,589 12.39 % 190,992 7.88 % 206,150 8.50 % N/A N/A Bank 286,012 11.81 % 190,738 7.88 % 205,876 8.50 % 193,766 8.00 % Total capital to risk-weighted assets Consolidated 352,360 14.53 % 239,498 9.88 % 254,656 10.50 % N/A N/A Bank 300,908 12.55 % 239,180 9.88 % 254,318 10.50 % 242,207 10.00 % Leverage ratio Consolidated 300,589 9.00 % 133,602 4.00 % 133,602 4.00 % N/A N/A Bank 286,012 8.57 % 133,474 4.00 % 133,474 4.00 % 166,843 5.00 % Actual Minimum Capital Required - Basel III Phase-In Schedule Minimum Capital Required - Basel III Fully Phased-In Minimum Required to be Considered Well Capitalized Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio As of December 31, 2017: Common equity tier 1 capital to risk-weighted assets Consolidated $ 224,407 11.43 % $ 112,866 5.75 % $ 137,402 7.00 % N/A N/A Bank 223,288 11.40 % 112,672 5.75 % 137,166 7.00 % 127,368 6.50 % Tier 1 capital to risk-weighted assets Consolidated 224,407 11.43 % 142,309 7.25 % 166,845 8.50 % N/A N/A Bank 223,288 11.40 % 142,064 7.25 % 166,558 8.50 % 156,761 8.00 % Total capital to risk-weighted assets Consolidated 276,103 14.07 % 181,566 9.25 % 206,102 10.50 % N/A N/A Bank 238,258 12.16 % 181,255 9.25 % 205,748 10.50 % 195,951 10.00 % Leverage ratio Consolidated 224,407 8.45 % 106,196 4.00 % 106,196 4.00 % N/A N/A Bank 223,288 8.42 % 106,059 4.00 % 106,059 4.00 % 132,574 5.00 % |
Commitments and Credit Risk
Commitments and Credit Risk | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 , the Company had outstanding loan commitments totaling approximately $223.5 million and $155.4 million , respectively. As of December 31, 2018 , 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 $0.7 million , $0.7 million , and $0.6 million for the years ended December 31, 2018 , 2017 , and 2016 respectively. Future minimum cash lease payments are as follows: Amount 2019 $ 747 2020 760 2021 315 2022 229 2023 116 Thereafter — Total minimum payments required 1 $ 2,167 1 Minimum payments have not been reduced by minimum sublease rentals of $1.1 million due in the future under noncancelable subleases. In addition, the Company is a limited partner in a Small Business Investment Company fund (the “SBIC Fund”). As of December 31, 2018 , the Company has committed to contribute up to $2.5 million of capital to the SBIC Fund. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
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. ASU 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. Available-for-Sale 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, municipal securities, mortgage and asset-backed 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 also 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. 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. Rating agency and industry research reports as well as default and deferral activity are reviewed and incorporated into the calculation. The Company did not own any securities classified within Level 3 of the hierarchy as of December 31, 2018 or 2017 . Loans Held-for-Sale (mandatory pricing agreements) 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). Interest Rate Swap Agreements The fair values of interest rate swap agreements are estimated using current market interest rates as of the balance sheet date and calculated using discounted cash flows that are observable or that can be corroborated by observable market data and, therefore, are classified within Level 2 of the valuation hierarchy. 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 values of 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, 2018 and 2017 . December 31, 2018 Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. Government-sponsored agencies $ 107,585 $ — $ 107,585 $ — Municipal securities 92,506 — 92,506 — Mortgage-backed securities 242,912 — 242,912 — Asset-backed securities 4,859 — 4,859 — Corporate securities 33,483 — 33,483 — Total available-for-sale securities $ 481,345 $ — $ 481,345 $ — Interest rate swaps assets 1,579 — 1,579 — Interest rate swaps liabilities (10,727 ) — (10,727 ) — Loans held-for-sale (mandatory pricing agreements) 18,328 — 18,328 — Forward contracts (360 ) (360 ) — — IRLCs 389 — — 389 December 31, 2017 Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. Government-sponsored agencies $ 133,190 $ — $ 133,190 $ — Municipal securities 96,377 — 96,377 — Mortgage-backed securities 209,720 — 209,720 — Asset-backed securities 5,009 — 5,009 — Corporate securities 26,047 26,047 Other securities 2,932 2,932 — — Total available-for-sale securities $ 473,275 $ 2,932 $ 470,343 $ — Interest rate swaps (271 ) — (271 ) — Loans held-for-sale (mandatory pricing agreements) 23,571 — 23,571 — Forward contracts (80 ) (80 ) — — IRLCs 551 — — 551 The following table reconciles the beginning and ending balances of recurring fair value measurements recognized in the accompanying consolidated balance sheets using significant unobservable (Level 3) inputs. Interest Rate Balance as of January 1, 2016 $ 582 Total realized gains (losses) Included in net income 28 Balance, December 31, 2016 610 Total realized gains Included in net income (59 ) Balance, December 31, 2017 551 Total realized gains Included in net income (162 ) Balance, December 31, 2018 $ 389 The following describes the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis, 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. The amount of the impairment may be determined based on the fair value of the underlying collateral, less costs to sell, the estimated present value of future cash flows or the loan’s observable market price. If the impaired loan is identified as collateral dependent, the fair value of the underlying collateral, less costs to sell, is used to measure impairment. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. If the impaired loan is not collateral dependent, the Company utilizes a discounted cash flow analysis to measure impairment. Impaired loans with a specific valuation allowance based on the value of the underlying collateral or a discounted cash flow analysis are classified as Level 3 assets. Other Real Estate Owned Other real estate owned is a level 3 asset that is adjusted to fair value less estimated selling costs, upon transfer to other real estate owned. When a current appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value as a result of known changes in the market or the collateral and there is no observable market price, such valuation inputs result in a fair value measurement. To the extent a negotiated sales price or reduced listing price represents a significant discount to an observable market price, such valuation input would result in a fair value measurement that is also considered a Level 3 measurement. 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 nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2018 and 2017 . 2018 Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other real estate owned 2,065 — — 2,065 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 IRLCs $ 389 Discounted cash flow Loan closing rates 34% - 100% Other real estate owned $ 2,065 Fair value of collateral Discount to reflect current market conditions 10% Fair Value at Valuation Unobservable Range IRLCs $ 551 Discounted cash flow Loan closing rates 39% - 100% 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. Held-to-Maturity Securities Fair values are determined by using models that are based on security-specific details, as well as relevant industry and economic factors. The most significant of these inputs are quoted market prices, and interest rate spreads on relevant benchmark securities. Loans Held-For-Sale (best efforts pricing agreements) The fair value of these loans approximates carrying value. Loans The fair value of loans as of December 31, 2018 was impacted by the adoption of Accounting Standards Update 2016-01, which is discussed further in Note 21 to the Company's consolidated financial statements. In accordance with Accounting Standards Update 2016-01, the fair value of loans are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. This is not comparable with the fair values disclosed for December 31, 2017, which were based on an entrance price basis. For that date, fair values of variable rate loans that reprice frequently and with no significant change in credit risk were based on carrying values. The fair value of other loans as of that date were estimated by discounted cash flow analysis, which used interest rates then being offered for loans with similar terms to borrowers of similar credit quality. Accrued Interest Receivable The fair value of these financial instruments approximates carrying value. Federal Home Loan Bank of Indianapolis Stock The fair value approximates carrying value. Deposits The fair value of noninterest-bearing and interest-bearing demand deposits, savings and money market accounts approximates carrying value. 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. Subordinated Debt The fair value of the Company’s publicly traded subordinated debt is obtained from quoted market prices. The fair value of the Company’s remaining subordinated debt is estimated using discounted cash flow analysis, based on current borrowing rates for similar types of debt instruments. Accrued Interest Payable The fair value of these financial instruments approximates carrying value. 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, 2018 and 2017 . The following tables summarize the carrying value and estimated fair value of all financial assets and liabilities at December 31, 2018 and 2017 : December 31, 2018 Fair Value Measurements Using Carrying Amount Fair Value Quoted Prices In Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 188,712 $ 188,712 $ 188,712 $ — $ — Securities held-to-maturity 22,750 22,418 — 22,418 — Net loans 2,698,332 2,646,060 — — 2,646,060 Accrued interest receivable 16,822 16,822 16,822 — — Federal Home Loan Bank of Indianapolis stock 23,625 23,625 — 23,625 — Deposits 2,671,351 2,687,666 731,378 — 1,956,288 Advances from Federal Home Loan Bank 525,153 520,120 — 520,120 — Subordinated debt 33,875 34,490 24,250 10,240 — Accrued interest payable 1,108 1,108 1,108 — — December 31, 2017 Fair Value Measurements Using Carrying Amount Fair Value Quoted Prices In Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 47,981 $ 47,981 $ 47,981 $ — $ — Securities held-to-maturity 19,209 19,209 — 19,209 — Loans held-for-sale (best efforts pricing agreements) 27,835 27,835 — 27,835 — Net loans 2,076,223 2,051,545 — — 2,051,545 Accrued interest receivable 11,944 11,944 11,944 — — Federal Home Loan Bank of Indianapolis stock 19,575 19,575 — 19,575 — Deposits 2,084,941 2,057,708 688,800 — 1,368,908 Advances from Federal Home Loan Bank 410,176 397,950 — 397,950 — Subordinated debt 36,726 39,972 26,520 13,452 — Accrued interest payable 311 311 311 — — |
Mortgage Banking Activities
Mortgage Banking Activities | 12 Months Ended |
Dec. 31, 2018 | |
Mortgage Banking [Abstract] | |
Mortgage Banking Activities | Mortgage Banking Activities The Company’s residential real estate lending business originates mortgage loans for customers and sells a majority of the originated loans into the secondary market. The Company hedges its mortgage banking pipeline by entering into forward contracts for the future delivery of mortgage loans to third-party investors and entering into IRLCs with potential borrowers to fund specific mortgage loans that will be sold into the secondary market. To facilitate the hedging of the loans, the Company has elected the fair value option for loans originated and intended for sale in the secondary market under mandatory pricing agreements. Changes in the fair value of loans held-for-sale, IRLCs and forward contracts are recorded in the mortgage banking activities line item within noninterest income. Refer to Note 17 for further information on derivative financial instruments. During the years ended December 31, 2018 , 2017 , and 2016 , the Company originated mortgage loans held-for-sale of $364.6 million , $412.9 million , and $598.4 million , respectively, and received $376.5 million , $425.3 million , and $619.8 million from the sale of mortgage loans, respectively, into the secondary market. During 2017, the Company $42.3 million of residential mortgage loans that were originally held for investment. The following table provides the components of income from mortgage banking activities for the years ended December 31, 2018 , 2017 , and 2016 . Year Ended December 31, 2018 2017 2016 Gain on loans sold $ 6,102 $ 7,775 $ 12,462 Gain (loss) resulting from the change in fair value of loans held-for-sale 57 638 (500 ) (Loss) gain resulting from the change in fair value of derivatives (441 ) (577 ) 436 Net revenue from mortgage banking activities $ 5,718 $ 7,836 $ 12,398 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
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 interest rate swap agreements as part of its asset/liability management strategy to help manage its interest rate risk position. Additionally, 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. The Company entered into various interest rate swap agreements designated and qualifying as accounting hedges during the reported periods. Designating an interest rate swap as an accounting hedge allows the Company to recognize gains and losses, less any ineffectiveness, in the income statement within the same period that the hedged item affects earnings. The Company includes the gain or loss on the hedged items in the same line item as the offsetting loss or gain on the related interest rate swaps. For derivative instruments that are designated and qualify as cash flow hedges, any gains or losses related to changes in fair value are recorded in accumulated other comprehensive loss, net of tax. The fair value of interest rate swaps with a positive fair value are reported in accrued income and other assets in the consolidated balance sheets while interest rate swaps with a negative fair value are reported in accrued expenses and other liabilities in the consolidated balance sheets. The IRLCs and forward contracts 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 following table presents amounts that were recorded on the consolidated balance sheets related to cumulative basis adjustments for interest rate swap derivatives designated as fair value accounting hedges as of December 31, 2018 and 2017. Carrying amount of the hedged assets Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets Line item in the consolidated balance sheet in which the hedged item is included December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Loans $ 474,233 $ 91,653 $ 4,961 $ 263 Securities available-for-sale 1 159,188 92,230 (229 ) 8 1 These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At December 31, 2018 and 2017, the amounts of the designated hedged items were $88.2 million and $50.0 million , respectively. The following table presents a summary of interest rate swap derivatives designated as fair value accounting hedges of fixed-rate receivables used in the Company's asset/liability management activities at December 31, 2018 and December 31, 2017, identified by the underlying interest rate-sensitive instruments. December 31, 2018 Weighted Average Remaining Maturity (years) Weighted-Average Rate Instruments Associated With Notional Value Fair Value Receive Pay Loans $ 435,926 6.5 $ (5,025 ) 3 month LIBOR 2.86% Securities available-for-sale 88,200 5.1 235 3 month LIBOR 2.54% Total swap portfolio at December 31, 2018 $ 524,126 6.3 $ (4,790 ) 3 month LIBOR 2.80% December 31, 2017 Weighted Average Remaining Maturity (years) Weighted-Average Rate Instruments Associated With Notional Value Fair Value Receive Pay Loans $ 91,135 7.9 $ (263 ) 3 month LIBOR 2.44% Securities available-for-sale 50,000 6.8 (8 ) 3 month LIBOR 2.33% Total swap portfolio at December 31, 2017 $ 141,135 7.5 $ (271 ) 3 month LIBOR 2.41% The following table presents a summary of interest rate swap derivatives designated as cash flow accounting hedges of variable-rate liabilities used in the Company's asset/liability management activities at December 31, 2018. There were no interest rate swap derivatives designated as cash flow accounting hedges at December 31, 2017. December 31, 2018 Weighted Average Remaining Maturity (years) Weighted-Average Rate Cash Flow Hedges Notional Value Fair Value Receive Pay Interest rate swaps $ 110,000 8.1 $ (2,293 ) 3 month LIBOR 2.88% Interest rate swaps 100,000 5.0 (2,065 ) 1 month LIBOR 2.88% These derivative financial instruments were entered into for the purpose of managing the interest rate risk of certain assets and liabilities. The Company pledged $7.0 million and $0.7 million of cash collateral to counterparties as security for its obligations related to these interest rate swap transactions at December 31, 2018 and 2017, respectively. Collateral posted and received is dependent on the market valuation of the underlying hedges. The following table presents the notional amount and fair value of interest rate swaps, IRLCs and forward contracts utilized by the Company at December 31, 2018 and 2017 . December 31, 2018 December 31, 2017 Notional Fair Notional Fair Asset Derivatives Derivatives designated as hedging instruments Interest rate swaps associated with loans $ 91,135 $ 986 $ 17,900 $ 3 Interest rate swaps associated with securities available-for-sale 50,000 593 — — Derivatives not designated as hedging instruments IRLCs 15,136 389 26,394 551 Total contracts $ 156,271 $ 1,968 $ 44,294 $ 554 Liability Derivatives Derivatives designated as hedging instruments Interest rate swaps associated with loans $ 344,791 $ (6,011 ) $ 73,235 $ (266 ) Interest rate swaps associated with securities available-for-sale 38,200 (358 ) 50,000 (8 ) Interest rate swaps associated with liabilities $ 210,000 $ (4,358 ) $ — $ — Derivatives not designated as hedging instruments Forward contracts $ 32,500 $ (360 ) $ 51,124 $ (80 ) Total contracts $ 625,491 $ (11,087 ) $ 174,359 $ (354 ) The fair value of interest rate swaps were estimated using a discounted cash flow method that incorporates current market interest rates as of the balance sheet date. Fair values of IRLCs and forward contracts were estimated using changes in mortgage interest rates from the date the Company entered into the IRLC and the balance sheet date. The following table presents the effects of the Company's cash flow hedge relationships on the consolidated statements of comprehensive income during the twelve months ended December 31, 2018, 2017, and 2016. Amount of Loss Recognized in Other Comprehensive Income in the Twelve Months Ended December 31, 2018 December 31, 2017 December 31, 2016 Interest rate swap agreements $ (4,358 ) $ — $ — The following table summarizes the periodic changes in the fair value of the derivative financial instruments on the consolidated statements of income for the twelve months ended December 31, 2018 , 2017 , and 2016 . Amount of (loss) / gain recognized in the twelve months ended December 31, 2018 December 31, 2017 December 31, 2016 Asset Derivatives Derivatives not designated as hedging instruments IRLCs (162 ) (59 ) 28 Forward contracts (279 ) (519 ) 408 The following table presents the effects of the Company's interest rate swap agreements on the consolidated statements of income during the twelve months ended December 31, 2018, 2017, and 2016. Line item in the consolidated statements of income Twelve Months Ended December 31, 2018 December 31, 2017 December 31, 2016 Interest income Loans $ (100 ) $ — $ — Securities - taxable (153 ) — — Securities - non-taxable 23 — — Total interest income (230 ) — — Interest expense Deposits 151 — — Other borrowed funds 177 — — Total interest expense 328 — — Net interest income $ (558 ) $ — $ — |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity In June 2018, the Company completed an underwritten public offering of 1,730,750 shares of its common stock at a price of $33.25 per share. The Company received net proceeds of approximately $54.3 million after deducting underwriting discounts and commissions and offering expenses. In September 2017, the Company completed an underwritten public offering of 1,895,750 shares of its common stock at a price of $29.00 per share. The Company received net proceeds of approximately $51.6 million after deducting underwriting discounts and commissions and offering expenses. In December 2016, the Company and the Bank entered into an Underwriting Agreement, pursuant to which the Company sold 945,000 shares of common stock at $26.50 per share, resulting in net proceeds to the Company of $23.4 million . In May 2016, the Company and the Bank entered into an Underwriting Agreement, pursuant to which the Company sold an additional 895,955 shares of common stock at $24.00 per share, resulting in net proceeds to the Company of $19.7 million . In May 2016, the Company and the Bank entered into a Sales Agency Agreement to sell shares (the “ATM Shares”) of the Company’s common stock having an aggregate gross sales price of up to $25.0 million , from time to time, through an “at-the-market” equity offering program (the “ATM Program”). The sales, if any, of the ATM Shares, could be made in sales deemed to be “at-the-market offerings” as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made directly on or through The Nasdaq Stock Market, or another market for the Company’s common stock, sales made to or through a market maker other than on an exchange or otherwise, in negotiated transactions at market prices prevailing at the time of sale or at negotiated prices, or as otherwise agreed with the sales agent. Subject to the terms and conditions of the Sales Agency Agreement, upon its acceptance of written instructions from the Company, the sales agent would use its commercially reasonable efforts to sell on the Company’s behalf all of the designated ATM Shares. The Sales Agency Agreement provided for the Company to pay the sales agent a commission of up to 3.0% of the gross sales price per share sold through it as sales agent under the Sales Agency Agreement. The Company could also sell ATM Shares under the Sales Agency Agreement to the sales agent, as principal for its own account, at a price per share agreed upon at the time of sale. Actual sales would depend on a variety of factors to be determined by the Company from time to time. The Company had no obligation to sell any of the ATM Shares under the Sales Agency Agreement, and could at any time suspend solicitation and offers under the Sales Agency Agreement. In addition, the Company agreed to indemnify the sales agent against certain liabilities on customary terms. The Company sold a total of 139,811 ATM Shares through the ATM Program for net proceeds of approximately $3.1 million . As of December 31, 2018, approximately $21.6 million remained available for sale under the ATM Program. The Company terminated the Sales Agency Agreement effective January 3, 2019. |
Condensed Financial Information
Condensed Financial Information (Parent Company Only) | 12 Months Ended |
Dec. 31, 2018 | |
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 on a non-consolidated basis: Condensed Balance Sheets Year Ended December 31, 2018 2017 Assets Cash and cash equivalents $ 45,281 $ 32,810 Investment in common stock of subsidiaries 274,158 223,008 Premises and equipment, net 6,158 6,576 Accrued income and other assets 1,554 3,114 Total assets $ 327,151 $ 265,508 Liabilities and shareholders’ equity Subordinated debt, net of unamortized discounts and debt issuance costs of $1,125 in 2018 and $1,274 in 2017 $ 33,875 $ 36,726 Note payable to the Bank 3,300 3,600 Accrued expenses and other liabilities 1,241 1,055 Total liabilities 38,416 41,381 Shareholders’ equity 288,735 224,127 Total liabilities and shareholders’ equity $ 327,151 $ 265,508 Condensed Statements of Income Year Ended December 31, 2018 2017 2016 Expenses Interest on borrowings $ 2,616 $ 2,724 $ 1,557 Salaries and employee benefits 564 354 344 Consulting and professional fees 958 664 871 Premises and equipment 285 302 291 Other 315 258 235 Total expenses 4,738 4,302 3,298 Loss before income tax and equity in undistributed net income of subsidiaries (4,738 ) (4,302 ) (3,298 ) Income tax benefit (1,172 ) (1,539 ) (1,224 ) Loss before equity in undistributed net income of subsidiaries (3,566 ) (2,763 ) (2,074 ) Equity in undistributed net income of subsidiaries 25,466 17,989 14,148 Net income $ 21,900 $ 15,226 $ 12,074 Condensed Statements of Comprehensive Income Year Ended December 31, 2018 2017 2016 Net income $ 21,900 $ 15,226 $ 12,074 Other comprehensive income Net unrealized holding (losses) gains on securities available-for-sale recorded within other comprehensive income before income tax (10,466 ) 6,280 (12,315 ) Reclassification adjustment for losses (gains) realized — 8 (177 ) Net unrealized holding gains on cash flow hedging derivatives recorded within other comprehensive income before income tax (4,358 ) — — Other comprehensive (loss) income before tax (14,824 ) 6,288 (12,492 ) Income tax (benefit) provision (4,365 ) 2,039 (4,433 ) Other comprehensive (loss) income - net of tax (10,459 ) 4,249 (8,059 ) Comprehensive income $ 11,441 $ 19,475 $ 4,015 Condensed Statements of Cash Flows Year Ended December 31, 2018 2017 2016 Operating activities Net income $ 21,900 $ 15,226 $ 12,074 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of subsidiaries (25,466 ) (17,989 ) (14,148 ) Depreciation and amortization 568 572 461 Share-based compensation expense 243 175 128 Net change in other assets 1,769 (1,453 ) (696 ) Net change in other liabilities 79 (326 ) 870 Net cash used in operating activities (907 ) (3,795 ) (1,311 ) Investing activities Capital contribution to the Bank (35,000 ) (42,000 ) (43,500 ) Purchase of premises and equipment — (148 ) (1,423 ) Net cash used in investing activities (35,000 ) (42,148 ) (44,923 ) Financing activities Cash dividends paid (2,230 ) (1,675 ) (1,199 ) Net proceeds from issuance of subordinated debt — — 23,757 Repayment of subordinated debt (3,000 ) — — Principal payment on loan from the Bank (300 ) (400 ) — Net proceeds from common stock issuance 54,334 51,636 46,223 Repurchase of common stock (216 ) — — Other, net (210 ) (173 ) (42 ) Net cash provided by financing activities 48,378 49,388 68,739 Net increase in cash and cash equivalents 12,471 3,445 22,505 Cash and cash equivalents at beginning of year 32,810 29,365 6,860 Cash and cash equivalents at end of year $ 45,281 $ 32,810 $ 29,365 |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (unaudited) | Quarterly Financial Data (unaudited) Three Months Ended December 31, September 30, June 30, March 31, Income Statement Data: Interest income $ 31,849 $ 30,223 $ 27,416 $ 25,979 Interest expense 16,428 14,253 11,955 10,564 Net interest income 15,421 15,970 15,461 15,415 Provision for loan losses 1,487 888 667 850 Net interest income after provision for loan losses 13,934 15,082 14,794 14,565 Noninterest income 2,047 1,994 2,177 2,542 Noninterest expense 12,739 10,045 10,182 10,217 Income before income taxes 3,242 7,031 6,789 6,890 Income tax provision (334 ) 743 781 862 Net income $ 3,576 $ 6,288 $ 6,008 $ 6,028 Per Share Data: Net income Basic $ 0.35 $ 0.61 $ 0.67 $ 0.71 Diluted $ 0.35 $ 0.61 $ 0.67 $ 0.71 Weighted average common shares outstanding Basic 10,263,086 10,261,967 8,909,913 8,499,196 Diluted 10,275,040 10,273,766 8,919,460 8,542,363 Three Months Ended December 31, September 30, June 30, March 31, Income Statement Data: Interest income $ 24,638 $ 22,694 $ 19,975 $ 17,390 Interest expense 9,278 8,503 7,001 5,933 Net interest income 15,360 14,191 12,974 11,457 Provision for loan losses 1,179 1,336 1,322 1,035 Net interest income after provision for loan losses 14,181 12,855 11,652 10,422 Noninterest income 2,539 3,135 2,736 2,131 Noninterest expense 9,701 9,401 8,923 8,698 Income before income taxes 7,019 6,589 5,465 3,855 Income tax provision 3,521 1,694 1,464 1,023 Net income $ 3,498 $ 4,895 $ 4,001 $ 2,832 Per Share Data: Net income Basic $ 0.41 $ 0.72 $ 0.61 $ 0.43 Diluted $ 0.41 $ 0.71 $ 0.61 $ 0.43 Weighted average common shares outstanding Basic 8,490,951 6,834,011 6,583,515 6,547,807 Diluted 8,527,599 6,854,614 6,597,991 6,602,200 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”) (May 2014) On January 1, 2018, the Company adopted this ASU, as subsequently amended, which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) for the transfer of nonfinancial assets, such as other real estate owned (“OREO”). The majority of the Company's revenues comes from interest income and other sources, including loans, leases, securities, and derivatives that are outside the scope of ASC 606. The Company's services that fall within the scope of ASC 606 are presented within noninterest income and are recognized as revenue as the Company satisfies its obligation to the customer. Our services within the scope of ASC 606 include service charges on deposits, interchange income and the sale of OREO. Our revenue within the scope of ASC 606 is minimal and the adoption of ASC 606 did not have a material impact on the consolidated statements of income. ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities (January 2016) The purpose of this ASU is to improve the recognition and measurement of financial instruments by requiring equity investments to be measured at fair value with changes in fair value recognized in net income; requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured and amortized at cost on the balance sheet; and requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting option for financial instruments. In February 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-03, which includes technical corrections and improvements to clarify the guidance in ASU 2016-01. The Company adopted ASU 2016-01 on January 1, 2018, and it did not have a material impact on fair value disclosures and other disclosure requirements. Leases (Topic 842) (February 2016) In February 2016, the FASB amended its standards with respect to the accounting for leases. This ASU replaces all current GAAP guidance on this topic and requires that an operating lease be recognized by the lessee on the balance sheet as a “right-of-use” asset along with a corresponding liability representing the rent obligation. Key aspects of current lessor accounting remain unchanged from existing guidance. The resulting standard is expected to result in an increase to assets and liabilities recognized and, therefore, increase risk-weighted assets for regulatory capital purposes. The amended standard requires the use of the modified retrospective transition approach for existing leases that have not expired before the date of initial application. Management adopted the guidance on January 1, 2019 and elected certain practical expedients offered by the FASB, including foregoing the restatement of comparative periods upon adoption. The adoption of the guidance did not have a material impact on the consolidated financial statements, and the Company expects to recognize a $2.1 million increase in assets and liabilities on the Company's consolidated balance sheets. ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (June 2016) The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The ASU affects entities holding financial assets that are not accounted for at fair value through net income. The amendments affect loans, debt securities, off-balance-sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU affect an entity to varying degrees depending on the credit quality of the assets held by the entity, their duration, and how the entity applies current GAAP. There is diversity in practice in applying the incurred loss methodology, which means that before transition some entities may be more aligned, under current GAAP than others to the new measure of expected credit losses. The following describes the main provisions of this ASU. • Assets Measured at Amortized Cost: The amendments in this ASU require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. • Available-for-Sale Debt Securities: Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. Available-for-sale accounting recognizes that value may be realized either through collection of contractual cash flows or through sale of the security. Therefore, the amendments limit the amount of the allowance for credit losses to the amount by which fair value is below amortized cost because the classification as available-for-sale is premised on an investment strategy that recognizes that the investment could be sold at fair value, if cash collection would result in the realization of an amount less than fair value. For public business entities that are Securities and Exchange Commission (“SEC”) filers, the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this ASU earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. An entity will apply the amendments in this ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). A prospective transition approach is required for debt securities for which an other-than-temporary impairment has been recognized before the effective date. The effect of a prospective transition approach is to maintain the same amortized cost basis before and after the effective date of this ASU. The Company does not expect to early adopt and is currently evaluating the impact of the ASU on the Company’s consolidated financial statements and cannot determine or reasonably quantify the impact of the adoption of the amendments due to the complexity and extensive changes. The Company intends to develop processes and procedures during the next year to ensure it is fully compliant with the amendments at the adoption date. The Company has formed an implementation committee and has begun evaluating the data needed for implementation as well as considering appropriate methodologies. ASU 2017-12 - Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (August 2017) The new ASU refines and expands hedge accounting for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes, for investors and analysts. The Company expects this ASU will allow it to manage its interest rate risk related to longer term fixed rate assets using strategies that were previously inaccessible under the former accounting guidance. The Company chose to early adopt this pronouncement effective December 31, 2017. This is discussed further in Note 17. ASU 2018-02 - Income Statement - Reporting Comprehensive Income (Topic 820): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (February 2018) The amendments in this ASU allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this ASU also require certain disclosures about stranded tax effects. The Company elected to early adopt this ASU as of January 1, 2018. The adoption of this ASU resulted in a cumulative-effect adjustment that increased retained earnings and increased accumulated other comprehensive loss in the twelve months ended December 31, 2018. ASU 2018-05 - Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (March 2018) The amendments in this ASU provide additional clarification on accounting for the Tax Act's effects. In accordance with Staff Accounting Bulletin 118, entities that elected to record provisional amounts were required to base them on reasonable estimates and could have adjusted those amounts for a period of up to one year after the December 22, 2017 enactment date. Entities also were required to consider the effect of the Tax Act when they estimated their annual effective tax rate in the first quarter of 2018 and projected the deferred tax effects of expected year-end temporary differences. In addition to applying the new corporate tax rate, an entity was required to consider whether it had elected to reflect global intangible low-taxed income as a period cost or as part of deferred taxes. The Company adopted this ASU effective March 31, 2018 and it did not have a material impact on the consolidated financial statements. ASU 2018-07 - Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (June 2018) The amendments in this ASU simplify the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The Company adopted this ASU effective December 31, 2018 and it did not have a material impact on the consolidated financial statements. ASU 2018-13 - Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (August 2018) The amendments in this ASU modify the disclosure requirements on fair value measurements in Topic 820. This ASU eliminates the requirements to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. In addition, this ASU requires entities that calculate net asset value to disclose the timing of liquidation of an investee's assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly. This ASU also added new requirements, which include disclosure of changes in unrealized gains and losses for the period in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this ASU are effective for public companies for fiscal years, and interim fiscal periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of the amendment on the Company's consolidated financial statements. ASU 2018-16 - Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate ( “ SOFR ” ) Overnight Index Swap ( “ OIS ” ) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (October 2018) The amendments in this ASU allow all entities that elect to apply hedge accounting to benchmark interest rate hedges under Accounting Standards Codification 815, Derivatives and Hedging , to use the OIS rate based on SOFR as a benchmark interest rate, in addition to the four eligible benchmark interest rates. The amendments in this ASU are effective for public companies that have adopted ASU 2017-12 in fiscal years beginning after December 15, 2018 and in interim periods within those fiscal years. The Company adopted this ASU effective December 31, 2018 and it did not have a material impact on the consolidated financial statements. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business The Company was incorporated on September 15, 2005 , and consummated a plan of exchange on March 21, 2006, by which the Company became a bank holding company and 100% owner 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 Fishers, Indiana as well as a loan production office in Tempe, Arizona. 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. First Internet Public Finance Corp., a wholly owned subsidiary of the Bank, was incorporated on March 6, 2017 and was established to provide municipal finance lending and leasing products to government entities and to purchase, manage, service, and safekeep municipal securities. SPF15, Inc., a wholly owned subsidiary of the Bank, was incorporated on August 31, 2018 and was formed to acquire and hold real estate. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its direct and indirect subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company’s business activities are currently limited to one reporting unit and reportable segment, which is commercial banking. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP 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 loan losses and income taxes and valuation and impairments of investment securities and goodwill, as well as fair value measurements of derivatives, loans held-for-sale and other real estate owned. 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. • 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, 2018 or 2017 . • 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 using 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 the loan. |
Revenue Recognition | Revenue Recognition The Company recognizes revenues as they are earned based on contractual terms, as transactions occur, or as services are provided and collectability is reasonably assured. The Company's principal source of revenue is interest income from loans and leases and investment securities. 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. The Company also earns noninterest income through a variety of financial and transaction services provided to corporate and consumer clients such as deposit account, debit card and mortgage banking. Revenue is recorded for noninterest income based on the contractual terms for the service or transaction performed. In certain circumstances, noninterest income is reported net of associated expenses. |
Loans Receivable | Loans Loans that management intends to hold until maturity are reported at their outstanding principal balance adjusted for unearned income, charge-offs, the allowance for loan losses (“ALLL”), 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 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 sixteen quarters. 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 considers two weighted average net charge-off trends: 1) the Company’s average loss history over the previous sixteen quarters; and 2) the average loss history over the previous sixteen quarters for a peer group. 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. |
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, in accordance with the impairment accounting guidance 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 delays generally not exceeding 90 days outstanding are not considered impaired. Certain nonaccrual and substantially all delinquent loans more than 90 days past due 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 and nonaccrual loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due. Impaired loans include nonperforming loans but also include loans modified in TDRs 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. 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. |
Troubled Debt Restructurings | Troubled Debt Restructurings 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 The Company’s policy is to charge off a loan at any point in time when it no longer can be considered a bankable asset, meaning collectible within the parameters of policy. A secured loan is generally charged down 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 is charged off no later than when it is 180 days past due as to principal or interest. A home improvement loan generally is charged off no later than when it is 90 days past due as to principal or interest. |
Federal Home Loan Bank (FHLB) of Indianapolis 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. |
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, ten years for land improvements, and 39 years for buildings. |
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 other real estate owned are capitalized, whereas costs relating to holding and maintaining the property are charged to expense as incurred. |
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 interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. Additionally, the Company enters into forward contracts for the future delivery of mortgage loans to third-party investors and enters into interest rate lock commitments ("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. Designating an interest rate swap as an accounting hedge allows the Company to recognize gains and losses, less any ineffectiveness, in the income statement within the same period that the hedged item affects earnings. The Company includes the gain or loss on the hedged items in the same line item as the offsetting loss or gain on the related interest rate swaps. For derivative instruments that are designated and qualify as cash flow hedges, any gains or losses related to changes in fair value are recorded in accumulated other comprehensive loss, net of tax. The fair value of interest rate swaps with a positive fair value are reported in accrued income and other assets in the consolidated balance sheets while interest rate swaps with a negative fair value are reported in accrued expenses and other liabilities in the consolidated balance sheets. The IRLCs and forward contracts 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. |
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 2015. 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 material 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. |
Stock Compensation | Share-based Compensation The Company has a share-based compensation plan using the fair value recognition provisions of ASC Topic 718, Compensation - Stock Compensation . The plan is described more fully in Note 10. |
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 and unrealized gains and losses on cash flow hedges. 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 2017 and 2016 financial statements to conform to the 2018 financial statement presentation. These reclassifications had no effect on net income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”) (May 2014) On January 1, 2018, the Company adopted this ASU, as subsequently amended, which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) for the transfer of nonfinancial assets, such as other real estate owned (“OREO”). The majority of the Company's revenues comes from interest income and other sources, including loans, leases, securities, and derivatives that are outside the scope of ASC 606. The Company's services that fall within the scope of ASC 606 are presented within noninterest income and are recognized as revenue as the Company satisfies its obligation to the customer. Our services within the scope of ASC 606 include service charges on deposits, interchange income and the sale of OREO. Our revenue within the scope of ASC 606 is minimal and the adoption of ASC 606 did not have a material impact on the consolidated statements of income. ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities (January 2016) The purpose of this ASU is to improve the recognition and measurement of financial instruments by requiring equity investments to be measured at fair value with changes in fair value recognized in net income; requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured and amortized at cost on the balance sheet; and requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting option for financial instruments. In February 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-03, which includes technical corrections and improvements to clarify the guidance in ASU 2016-01. The Company adopted ASU 2016-01 on January 1, 2018, and it did not have a material impact on fair value disclosures and other disclosure requirements. Leases (Topic 842) (February 2016) In February 2016, the FASB amended its standards with respect to the accounting for leases. This ASU replaces all current GAAP guidance on this topic and requires that an operating lease be recognized by the lessee on the balance sheet as a “right-of-use” asset along with a corresponding liability representing the rent obligation. Key aspects of current lessor accounting remain unchanged from existing guidance. The resulting standard is expected to result in an increase to assets and liabilities recognized and, therefore, increase risk-weighted assets for regulatory capital purposes. The amended standard requires the use of the modified retrospective transition approach for existing leases that have not expired before the date of initial application. Management adopted the guidance on January 1, 2019 and elected certain practical expedients offered by the FASB, including foregoing the restatement of comparative periods upon adoption. The adoption of the guidance did not have a material impact on the consolidated financial statements, and the Company expects to recognize a $2.1 million increase in assets and liabilities on the Company's consolidated balance sheets. ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (June 2016) The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The ASU affects entities holding financial assets that are not accounted for at fair value through net income. The amendments affect loans, debt securities, off-balance-sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU affect an entity to varying degrees depending on the credit quality of the assets held by the entity, their duration, and how the entity applies current GAAP. There is diversity in practice in applying the incurred loss methodology, which means that before transition some entities may be more aligned, under current GAAP than others to the new measure of expected credit losses. The following describes the main provisions of this ASU. • Assets Measured at Amortized Cost: The amendments in this ASU require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. • Available-for-Sale Debt Securities: Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. Available-for-sale accounting recognizes that value may be realized either through collection of contractual cash flows or through sale of the security. Therefore, the amendments limit the amount of the allowance for credit losses to the amount by which fair value is below amortized cost because the classification as available-for-sale is premised on an investment strategy that recognizes that the investment could be sold at fair value, if cash collection would result in the realization of an amount less than fair value. For public business entities that are Securities and Exchange Commission (“SEC”) filers, the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this ASU earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. An entity will apply the amendments in this ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). A prospective transition approach is required for debt securities for which an other-than-temporary impairment has been recognized before the effective date. The effect of a prospective transition approach is to maintain the same amortized cost basis before and after the effective date of this ASU. The Company does not expect to early adopt and is currently evaluating the impact of the ASU on the Company’s consolidated financial statements and cannot determine or reasonably quantify the impact of the adoption of the amendments due to the complexity and extensive changes. The Company intends to develop processes and procedures during the next year to ensure it is fully compliant with the amendments at the adoption date. The Company has formed an implementation committee and has begun evaluating the data needed for implementation as well as considering appropriate methodologies. ASU 2017-12 - Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (August 2017) The new ASU refines and expands hedge accounting for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes, for investors and analysts. The Company expects this ASU will allow it to manage its interest rate risk related to longer term fixed rate assets using strategies that were previously inaccessible under the former accounting guidance. The Company chose to early adopt this pronouncement effective December 31, 2017. This is discussed further in Note 17. ASU 2018-02 - Income Statement - Reporting Comprehensive Income (Topic 820): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (February 2018) The amendments in this ASU allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this ASU also require certain disclosures about stranded tax effects. The Company elected to early adopt this ASU as of January 1, 2018. The adoption of this ASU resulted in a cumulative-effect adjustment that increased retained earnings and increased accumulated other comprehensive loss in the twelve months ended December 31, 2018. ASU 2018-05 - Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (March 2018) The amendments in this ASU provide additional clarification on accounting for the Tax Act's effects. In accordance with Staff Accounting Bulletin 118, entities that elected to record provisional amounts were required to base them on reasonable estimates and could have adjusted those amounts for a period of up to one year after the December 22, 2017 enactment date. Entities also were required to consider the effect of the Tax Act when they estimated their annual effective tax rate in the first quarter of 2018 and projected the deferred tax effects of expected year-end temporary differences. In addition to applying the new corporate tax rate, an entity was required to consider whether it had elected to reflect global intangible low-taxed income as a period cost or as part of deferred taxes. The Company adopted this ASU effective March 31, 2018 and it did not have a material impact on the consolidated financial statements. ASU 2018-07 - Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (June 2018) The amendments in this ASU simplify the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The Company adopted this ASU effective December 31, 2018 and it did not have a material impact on the consolidated financial statements. ASU 2018-13 - Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (August 2018) The amendments in this ASU modify the disclosure requirements on fair value measurements in Topic 820. This ASU eliminates the requirements to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. In addition, this ASU requires entities that calculate net asset value to disclose the timing of liquidation of an investee's assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly. This ASU also added new requirements, which include disclosure of changes in unrealized gains and losses for the period in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this ASU are effective for public companies for fiscal years, and interim fiscal periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of the amendment on the Company's consolidated financial statements. ASU 2018-16 - Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate ( “ SOFR ” ) Overnight Index Swap ( “ OIS ” ) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (October 2018) The amendments in this ASU allow all entities that elect to apply hedge accounting to benchmark interest rate hedges under Accounting Standards Codification 815, Derivatives and Hedging , to use the OIS rate based on SOFR as a benchmark interest rate, in addition to the four eligible benchmark interest rates. The amendments in this ASU are effective for public companies that have adopted ASU 2017-12 in fiscal years beginning after December 15, 2018 and in interim periods within those fiscal years. The Company adopted this ASU effective December 31, 2018 and it did not have a material impact on the consolidated financial statements. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Basic earnings per share Net income available to common shareholders $ 21,900 $ 15,226 $ 12,074 Weighted-average common shares 9,490,506 7,118,628 5,211,209 Basic earnings per common share $ 2.31 $ 2.14 $ 2.32 Diluted earnings per share Net income available to common shareholders $ 21,900 $ 15,226 $ 12,074 Weighted-average common shares 9,490,506 7,118,628 5,211,209 Dilutive effect of warrants — 6,120 11,026 Dilutive effect of equity compensation 18,147 24,554 16,847 Weighted-average common and incremental shares 9,508,653 7,149,302 5,239,082 Diluted earnings per common share $ 2.30 $ 2.13 $ 2.30 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The following tables summarize securities available-for-sale and securities held-to-maturity as of December 31, 2018 and 2017 . December 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities available-for-sale U.S. Government-sponsored agencies $ 109,631 $ 20 $ (2,066 ) $ 107,585 Municipal securities 97,090 90 (4,674 ) 92,506 Mortgage-backed securities 251,492 162 (8,742 ) 242,912 Asset-backed securities 5,002 — (143 ) 4,859 Corporate securities 36,678 — (3,195 ) 33,483 Total available-for-sale $ 499,893 $ 272 $ (18,820 ) $ 481,345 December 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities available-for-sale U.S. Government-sponsored agencies $ 133,424 $ 531 $ (765 ) $ 133,190 Municipal securities 97,370 366 (1,359 ) 96,377 Mortgage-backed securities 215,452 15 (5,747 ) 209,720 Asset-backed securities 5,000 9 — 5,009 Corporate securities 27,111 103 (1,167 ) 26,047 Other securities 3,000 — (68 ) 2,932 Total available-for-sale $ 481,357 $ 1,024 $ (9,106 ) $ 473,275 |
Schedule Of Held-To-Maturity Securities Reconciliation | December 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities held-to-maturity Municipal securities $ 10,164 $ 40 $ (357 ) $ 9,847 Corporate securities 9,045 191 — 9,236 Total held-to-maturity $ 19,209 $ 231 $ (357 ) $ 19,083 December 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value Securities held-to-maturity Municipal securities $ 10,157 $ — $ (356 ) $ 9,801 Corporate securities 12,593 80 (56 ) 12,617 Total held-to-maturity $ 22,750 $ 80 $ (412 ) $ 22,418 |
Investments Classified by Contractual Maturity Date | The carrying value of securities at December 31, 2018 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 Within one year $ — $ — One to five years 291 273 Five to ten years 62,119 59,805 After ten years 180,989 173,496 243,399 233,574 Mortgage-backed securities 251,492 242,912 Asset-backed securities 5,002 4,859 Total $ 499,893 $ 481,345 Held-to-Maturity Amortized Cost Fair Value Five to ten years $ 16,836 $ 16,698 After ten years 5,914 5,720 Total $ 22,750 $ 22,418 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following tables show the securities portfolio’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, 2018 and 2017 : December 31, 2018 Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Securities available-for-sale U.S. Government-sponsored agencies $ 69,798 $ (893 ) $ 33,511 $ (1,173 ) $ 103,309 $ (2,066 ) Municipal securities 23,747 (710 ) 59,938 (3,964 ) 83,685 (4,674 ) Mortgage-backed securities 56,177 (529 ) 172,442 (8,213 ) 228,619 (8,742 ) Asset-backed securities 4,859 (143 ) — — 4,859 (143 ) Corporate securities 14,092 (586 ) 19,391 (2,609 ) 33,483 (3,195 ) Total $ 168,673 $ (2,861 ) $ 285,282 $ (15,959 ) $ 453,955 $ (18,820 ) December 31, 2018 Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Securities held-to-maturity Municipal securities $ 9,801 $ (356 ) $ — $ — $ 9,801 $ (356 ) Corporate securities 6,037 (56 ) — — 6,037 (56 ) Total $ 15,838 $ (412 ) $ — $ — $ 15,838 $ (412 ) December 31, 2017 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Securities available-for-sale U.S. Government-sponsored agencies $ 30,194 $ (256 ) $ 22,824 $ (509 ) $ 53,018 $ (765 ) Municipals 5,638 (77 ) 57,128 (1,282 ) 62,766 (1,359 ) Mortgage-backed securities 29,542 (251 ) 177,266 (5,496 ) 206,808 (5,747 ) Corporate securities 1,852 (148 ) 18,981 (1,019 ) 20,833 (1,167 ) Other securities — — 2,932 (68 ) 2,932 (68 ) Total $ 67,226 $ (732 ) $ 279,131 $ (8,374 ) $ 346,357 $ (9,106 ) |
Held to Maturity, Continuous Unrealized Loss Position, Fair Value | December 31, 2017 Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Securities held-to-maturity Municipal securities $ 8,255 $ (357 ) $ — $ — $ 8,255 $ (357 ) Total $ 8,255 $ (357 ) $ — $ — $ 8,255 $ (357 ) December 31, 2018 Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Securities held-to-maturity Municipal securities $ 9,801 $ (356 ) $ — $ — $ 9,801 $ (356 ) Corporate securities 6,037 (56 ) — — 6,037 (56 ) Total $ 15,838 $ (412 ) $ — $ — $ 15,838 $ (412 ) |
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, 2018 , 2017 and 2016 were as follows: Details About Accumulated Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss for the Year Ended December 31, Affected Line Item in the Statements of Income 2018 2017 2016 Unrealized gains and losses on securities available-for-sale (Loss) gain realized in earnings $ — $ (8 ) $ 177 Other Total reclassified amount before tax — (8 ) 177 Income before income taxes Tax (benefit) expense — (3 ) 63 Income tax provision Total reclassifications out of accumulated other comprehensive loss $ — $ (5 ) $ 114 Net Income |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Categories of loans include: December 31, 2018 2017 Commercial loans Commercial and industrial $ 114,382 $ 122,940 Owner-occupied commercial real estate 87,962 75,768 Investor commercial real estate 5,391 7,273 Construction 39,916 49,213 Single tenant lease financing 919,440 803,299 Public finance 706,342 438,341 Healthcare finance 117,007 31,573 Total commercial loans 1,990,440 1,528,407 Consumer loans Residential mortgage 399,898 299,935 Home equity 28,735 30,554 Other consumer 279,771 227,533 Total consumer loans 708,404 558,022 Total commercial and consumer loans 2,698,844 2,086,429 Net deferred loan origination costs and premiums and discounts on purchased loans and other (1) 17,384 4,764 Total loans 2,716,228 2,091,193 Allowance for loan losses (17,896 ) (14,970 ) Net loans $ 2,698,332 $ 2,076,223 (1) Includes carrying value adjustments of $5.0 million and $0.3 million as of December 31, 2018 and 2017, respectively, related to interest rate swaps associated with public finance loans. |
Allowance for Credit Losses on Financing Receivables | Twelve Months Ended December 31, 2018 Balance, beginning of period Provision (credit) charged to expense Losses charged off Recoveries Balance, end of period Allowance for loan losses: Commercial and industrial $ 1,738 $ (170 ) $ (92 ) $ 3 $ 1,479 Owner-occupied commercial real estate 803 88 — — 891 Investor commercial real estate 85 (24 ) — — 61 Construction 423 (172 ) — — 251 Single tenant lease financing 7,872 955 — — 8,827 Public finance 959 711 — — 1,670 Healthcare finance 313 951 — — 1,264 Residential mortgage 956 127 (9 ) 5 1,079 Home equity 70 (33 ) — 16 53 Other consumer 1,751 1,459 (1,176 ) 287 2,321 Total $ 14,970 $ 3,892 $ (1,277 ) $ 311 $ 17,896 Twelve Months Ended December 31, 2017 Balance, beginning of period Provision (credit) charged to expense Losses charged off Recoveries Balance, end of period Allowance for loan losses: Commercial and industrial $ 1,352 $ 588 $ (271 ) $ 69 $ 1,738 Owner-occupied commercial real estate 582 221 — — 803 Investor commercial real estate 168 (83 ) — — 85 Construction 544 (121 ) — — 423 Single tenant lease financing 6,248 1,624 — — 7,872 Public finance — 959 — — 959 Healthcare finance — 313 — — 313 Residential mortgage 754 314 (116 ) 4 956 Home equity 102 (55 ) — 23 70 Other consumer 1,231 1,112 (895 ) 303 1,751 Total $ 10,981 $ 4,872 $ (1,282 ) $ 399 $ 14,970 Twelve Months Ended December 31, 2016 Balance, beginning of period Provision (credit) charged to expense Losses charged off Recoveries Balance, end of period Allowance for loan losses: Commercial and industrial $ 1,367 $ 1,380 $ (1,582 ) $ 187 $ 1,352 Owner-occupied commercial real estate 476 106 — — 582 Investor commercial real estate 212 (44 ) — — 168 Construction 500 44 — — 544 Single tenant lease financing 3,931 2,317 — — 6,248 Residential mortgage 896 (38 ) (134 ) 30 754 Home equity 125 (3 ) (33 ) 13 102 Other consumer 844 568 (440 ) 259 1,231 Total $ 8,351 $ 4,330 $ (2,189 ) $ 489 $ 10,981 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, 2018 and 2017 . Loans Allowance for Loan Losses December 31, 2018 Ending Balance: Collectively Evaluated for Impairment Ending Balance: Individually Evaluated for Impairment Ending Balance Ending Balance: Ending Balance: Ending Balance Commercial and industrial $ 108,742 $ 5,640 $ 114,382 $ 1,479 $ — $ 1,479 Owner-occupied commercial real estate 85,653 2,309 87,962 891 — 891 Investor commercial real estate 5,391 — 5,391 61 — 61 Construction 39,916 — 39,916 251 — 251 Single tenant lease financing 919,440 — 919,440 8,827 — 8,827 Public finance 706,342 — 706,342 1,670 — 1,670 Healthcare finance 117,007 — 117,007 1,264 — 1,264 Residential mortgage 399,328 570 399,898 1,079 — 1,079 Home equity 28,680 55 28,735 53 — 53 Other consumer 279,714 57 279,771 2,321 — 2,321 Total $ 2,690,213 $ 8,631 $ 2,698,844 $ 17,896 $ — $ 17,896 Loans Allowance for Loan Losses December 31, 2017 Ending Balance: Collectively Evaluated for Impairment Ending Balance: Individually Evaluated for Impairment Ending Balance Ending Balance: Ending Balance: Ending Balance Commercial and industrial $ 119,054 $ 3,886 $ 122,940 $ 1,738 $ — $ 1,738 Owner-occupied commercial real estate 75,761 7 75,768 803 — 803 Investor commercial real estate 7,273 — 7,273 85 — 85 Construction 49,213 — 49,213 423 — 423 Single tenant lease financing 803,299 — 803,299 7,872 — 7,872 Public finance 438,341 — 438,341 959 — 959 Healthcare finance 31,573 — 31,573 313 — 313 Residential mortgage 298,796 1,139 299,935 956 — 956 Home equity 30,471 83 30,554 70 — 70 Other consumer 227,443 90 227,533 1,751 — 1,751 Total $ 2,081,224 $ 5,205 $ 2,086,429 $ 14,970 $ — $ 14,970 |
Financing Receivable Credit Quality Indicators | The following tables present the credit risk profile of the Company’s commercial and consumer loan portfolios based on rating category and payment activity as of December 31, 2018 and 2017 . December 31, 2018 Pass Special Mention Substandard Total Commercial and industrial $ 107,666 $ 1,076 $ 5,640 $ 114,382 Owner-occupied commercial real estate 81,264 4,389 2,309 87,962 Investor commercial real estate 5,391 — — 5,391 Construction 39,916 — — 39,916 Single tenant lease financing 913,984 5,456 — 919,440 Public finance 706,342 — — 706,342 Healthcare finance 117,007 — — 117,007 Total commercial loans $ 1,971,570 $ 10,921 $ 7,949 $ 1,990,440 December 31, 2018 Performing Nonaccrual Total Residential mortgage $ 399,723 $ 175 $ 399,898 Home equity 28,680 55 28,735 Other consumer 279,729 42 279,771 Total $ 708,132 $ 272 $ 708,404 December 31, 2017 Pass Special Mention Substandard Total Commercial and industrial $ 113,840 $ 5,203 $ 3,897 $ 122,940 Owner-occupied commercial real estate 72,995 2,766 7 75,768 Investor commercial real estate 7,273 — — 7,273 Construction 49,213 — — 49,213 Single tenant lease financing 796,307 6,992 — 803,299 Public finance 438,341 — — 438,341 Healthcare finance 31,573 — — 31,573 Total commercial loans $ 1,509,542 $ 14,961 $ 3,904 $ 1,528,407 December 31, 2017 Performing Nonaccrual Total Residential mortgage $ 299,211 $ 724 $ 299,935 Home equity 30,471 83 30,554 Other consumer 227,501 32 227,533 Total $ 557,183 $ 839 $ 558,022 |
Past Due Financing Receivables | The following tables present the Company’s loan portfolio delinquency analysis as of December 31, 2018 and 2017 . December 31, 2018 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total loans Nonaccrual Loans Total Loans 90 Days or More Past Due and Accruing Commercial and industrial $ 9 $ — $ — $ 9 $ 114,373 $ 114,382 $ 195 $ — Owner-occupied commercial real estate 92 234 — 326 87,636 87,962 325 — Investor commercial real estate — — — — 5,391 5,391 — — Construction — — — — 39,916 39,916 — — Single tenant lease financing — — — — 919,440 919,440 — — Public finance — — — — 706,342 706,342 — — Healthcare finance — — — — 117,007 117,007 — — Residential mortgage — 3,118 98 3,216 396,682 399,898 175 97 Home equity — — 55 55 28,680 28,735 55 — Other consumer 235 170 4 409 279,362 279,771 42 — Total $ 336 $ 3,522 $ 157 $ 4,015 $ 2,694,829 $ 2,698,844 $ 792 $ 97 December 31, 2017 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total loans Nonaccrual Loans Total Loans 90 Days or More Past Due and Accruing Commercial and industrial $ — $ 10 $ — $ 10 $ 122,930 $ 122,940 $ — $ — Owner-occupied commercial real estate — — — — 75,768 75,768 — — Investor commercial real estate — — — — 7,273 7,273 — — Construction — — — — 49,213 49,213 — — Single tenant lease financing — — — — 803,299 803,299 — — Public finance — — — 438,341 438,341 — — Healthcare finance — — — 31,573 31,573 — — Residential mortgage — 23 560 583 299,352 299,935 724 — Home equity — — 83 83 30,471 30,554 83 — Other consumer 299 110 6 415 227,118 227,533 32 — Total $ 299 $ 143 $ 649 $ 1,091 $ 2,085,338 $ 2,086,429 $ 839 $ — |
Impaired Financing Receivables | The following tables present the Company’s impaired loans as of December 31, 2018 and 2017 . There were no impaired loans with a specific valuation allowance as of December 31, 2018 and 2017 . December 31, 2018 December 31, 2017 Recorded Unpaid Specific Recorded Unpaid Specific Loans without a specific valuation allowance Commercial and industrial $ 5,640 $ 5,652 $ — $ 3,886 $ 3,886 $ — Owner-occupied commercial real estate 2,309 2,309 — 7 7 — Residential mortgage 570 570 — 1,139 1,144 — Home equity 55 55 — 83 83 — Other consumer 57 124 — 90 143 — Total impaired loans $ 8,631 $ 8,710 $ — $ 5,205 $ 5,263 $ — The table below presents average balances and interest income recognized for impaired loans during the twelve months ended December 31, 2018 , 2017 , and 2016 . Twelve Months Ended December 31, 2018 December 31, 2017 December 31, 2016 Average Interest Average Interest Average Interest Loans without a specific valuation allowance Commercial and industrial $ 5,961 $ 426 $ 2,942 $ 146 $ — $ — Owner-occupied commercial real estate 893 59 3 — — — Residential mortgage 720 — 1,546 6 1,595 8 Home equity 61 — 5 — — — Other consumer 108 — 105 4 149 5 Total 7,743 485 4,601 156 1,744 13 Loans with a specific valuation allowance Commercial and industrial — — 35 — 1,084 — Total — — 35 — 1,084 — Total impaired loans $ 7,743 $ 485 $ 4,636 $ 156 $ 2,828 $ 13 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | remises and equipment at December 31, 2018 and 2017 . December 31, 2018 2017 Land $ 2,500 $ 2,500 Building and improvements 6,752 6,427 Furniture and equipment 9,076 7,610 Less: accumulated depreciation (7,631 ) (6,479 ) $ 10,697 $ 10,058 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of deposits | The following table presents the composition of the Company’s deposit base as of December 31, 2018 and 2017 . December 31, 2018 2017 Noninterest-bearing demand deposit accounts $ 43,301 $ 44,686 Interest-bearing demand deposit accounts 121,055 94,674 Regular savings accounts 38,489 49,939 Money market accounts 528,533 499,501 Certificates of deposits 1,292,883 1,319,488 Brokered deposits 647,090 76,653 Total deposits $ 2,671,351 $ 2,084,941 Time deposits (in the amount of $250 or more) $ 494,403 $ 453,034 |
Schedule of certificates of deposits scheduled maturities | The following table presents time deposit maturities by year as of December 31, 2018 . 2019 $ 762,263 2020 256,624 2021 316,649 2022 56,399 2023 59,890 Thereafter 502 $ 1,452,327 |
FHLB Advances (Tables)
FHLB Advances (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2019 $ 140,000 2020 — 2021 — 2022 60,000 2023 35,000 Thereafter 290,000 525,000 Net deferred prepayment gain on advance restructure 153 $ 525,153 |
Subordinated Debt Subordinated
Subordinated Debt Subordinated Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Subordinated Borrowing | December 31, 2018 December 31, 2017 Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs 2021 Debenture $ — — 3,000 — 2025 Note 10,000 (162 ) 10,000 (186 ) 2026 Notes 25,000 (963 ) 25,000 (1,088 ) Total $ 35,000 (1,125 ) 38,000 (1,274 ) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Nonvested Restricted Stock Shares Activity | The following table summarizes the status of the 2013 Plan awards as of December 31, 2018 , and activity for the year ended December 31, 2018 : Restricted Stock Units Weighted-Average Grant Date Fair Value Per Share Restricted Stock Awards Weighted-Average Grant Date Fair Value Per Share Deferred Stock Units Weighted-Average Grant Date Fair Value Per Unit Unvested at January 1, 2018 72,765 $ 27.91 3,333 $ 24.44 — $ — Granted 41,507 40.64 11,294 38.75 6 34.00 Vested (34,241 ) 26.06 (12,961 ) 37.39 (6 ) (34.00 ) Forfeited (4,477 ) 34.57 — — — — Unvested at December 31, 2018 75,554 $ 35.34 1,666 $ 24.44 — $ — |
Schedule Of Deferred Stock Option Plan | The following table summarizes the status of deferred stock rights related to the Directors Deferred Stock Plan for the year ended December 31, 2018 . Deferred Rights Outstanding, beginning of year 82,995 Granted 526 Exercised — Outstanding, end of year 83,521 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes consists of the following: December 31, 2018 2017 2016 Current $ 1,074 $ 10,998 $ 2,367 Deferred 978 (5,142 ) 3,544 Net deferred tax asset revaluation — 1,846 — Total $ 2,052 $ 7,702 $ 5,911 |
Schedule of Effective Income Tax Rate Reconciliation | Income tax provision is reconciled to the statutory rate applied to pre-tax income. The statutory rate was 21% , 35% and 34% at December 31, 2018, 2017 and 2016, respectively. December 31, 2018 2017 2016 Statutory rate times pre-tax income $ 5,030 $ 8,025 $ 6,115 (Subtract) add the tax effect of: Income from tax-exempt securities and loans (3,833 ) (2,512 ) (635 ) State income tax, net of federal tax effect 1,164 693 567 Bank-owned life insurance (200 ) (318 ) (159 ) Net deferred tax asset revaluation — 1,846 — Tax credits (180 ) — — Other differences 71 (32 ) 23 Total income taxes $ 2,052 $ 7,702 $ 5,911 |
Schedule of Deferred Tax Assets and Liabilities | The net deferred tax asset at December 31, 2018 and 2017 consists of the following: December 31, 2018 2017 Deferred tax assets (liabilities) Allowance for loan losses $ 4,832 $ 3,873 Unrealized loss on available-for-sale securities 6,137 1,939 Fair value adjustments (5,016 ) (2,213 ) Depreciation (398 ) (263 ) Deferred compensation and accrued payroll 1,043 1,051 Loan origination costs (1,081 ) (783 ) Prepaid assets (406 ) (288 ) Net operating loss 455 — Tax credits 231 — Other 808 69 Total deferred tax assets, net $ 6,605 $ 3,385 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following tables present actual and required capital ratios as of December 31, 2018 and 2017 for the Company and the Bank under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of December 31, 2018 and 2017 based on the phase-in provisions of the Basel III Capital Rules and the minimum required capital levels as of January 1, 2019 when the Basel III Capital Rules were fully phased-in, in each case, including the capital conservation buffer required during such period. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Actual Minimum Capital Required - Basel III Phase-In Schedule Minimum Capital Required - Basel III Fully Phased-In Minimum Required to be Considered Well Capitalized Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio As of December 31, 2018: Common equity tier 1 capital to risk-weighted assets Consolidated $ 300,589 12.39 % $ 154,613 6.38 % $ 169,771 7.00 % N/A N/A Bank 286,012 11.81 % 154,407 6.38 % 169,545 7.00 % 157,435 6.50 % Tier 1 capital to risk-weighted assets Consolidated 300,589 12.39 % 190,992 7.88 % 206,150 8.50 % N/A N/A Bank 286,012 11.81 % 190,738 7.88 % 205,876 8.50 % 193,766 8.00 % Total capital to risk-weighted assets Consolidated 352,360 14.53 % 239,498 9.88 % 254,656 10.50 % N/A N/A Bank 300,908 12.55 % 239,180 9.88 % 254,318 10.50 % 242,207 10.00 % Leverage ratio Consolidated 300,589 9.00 % 133,602 4.00 % 133,602 4.00 % N/A N/A Bank 286,012 8.57 % 133,474 4.00 % 133,474 4.00 % 166,843 5.00 % Actual Minimum Capital Required - Basel III Phase-In Schedule Minimum Capital Required - Basel III Fully Phased-In Minimum Required to be Considered Well Capitalized Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio As of December 31, 2017: Common equity tier 1 capital to risk-weighted assets Consolidated $ 224,407 11.43 % $ 112,866 5.75 % $ 137,402 7.00 % N/A N/A Bank 223,288 11.40 % 112,672 5.75 % 137,166 7.00 % 127,368 6.50 % Tier 1 capital to risk-weighted assets Consolidated 224,407 11.43 % 142,309 7.25 % 166,845 8.50 % N/A N/A Bank 223,288 11.40 % 142,064 7.25 % 166,558 8.50 % 156,761 8.00 % Total capital to risk-weighted assets Consolidated 276,103 14.07 % 181,566 9.25 % 206,102 10.50 % N/A N/A Bank 238,258 12.16 % 181,255 9.25 % 205,748 10.50 % 195,951 10.00 % Leverage ratio Consolidated 224,407 8.45 % 106,196 4.00 % 106,196 4.00 % N/A N/A Bank 223,288 8.42 % 106,059 4.00 % 106,059 4.00 % 132,574 5.00 % |
Commitments and Credit Risk (Ta
Commitments and Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum cash lease payments are as follows: Amount 2019 $ 747 2020 760 2021 315 2022 229 2023 116 Thereafter — Total minimum payments required 1 $ 2,167 1 Minimum payments have not been reduced by minimum sublease rentals of $1.1 million due in the future under noncancelable subleases. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 . December 31, 2018 Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. Government-sponsored agencies $ 107,585 $ — $ 107,585 $ — Municipal securities 92,506 — 92,506 — Mortgage-backed securities 242,912 — 242,912 — Asset-backed securities 4,859 — 4,859 — Corporate securities 33,483 — 33,483 — Total available-for-sale securities $ 481,345 $ — $ 481,345 $ — Interest rate swaps assets 1,579 — 1,579 — Interest rate swaps liabilities (10,727 ) — (10,727 ) — Loans held-for-sale (mandatory pricing agreements) 18,328 — 18,328 — Forward contracts (360 ) (360 ) — — IRLCs 389 — — 389 December 31, 2017 Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. Government-sponsored agencies $ 133,190 $ — $ 133,190 $ — Municipal securities 96,377 — 96,377 — Mortgage-backed securities 209,720 — 209,720 — Asset-backed securities 5,009 — 5,009 — Corporate securities 26,047 26,047 Other securities 2,932 2,932 — — Total available-for-sale securities $ 473,275 $ 2,932 $ 470,343 $ — Interest rate swaps (271 ) — (271 ) — Loans held-for-sale (mandatory pricing agreements) 23,571 — 23,571 — Forward contracts (80 ) (80 ) — — IRLCs 551 — — 551 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table reconciles the beginning and ending balances of recurring fair value measurements recognized in the accompanying consolidated balance sheets using significant unobservable (Level 3) inputs. Interest Rate Balance as of January 1, 2016 $ 582 Total realized gains (losses) Included in net income 28 Balance, December 31, 2016 610 Total realized gains Included in net income (59 ) Balance, December 31, 2017 551 Total realized gains Included in net income (162 ) Balance, December 31, 2018 $ 389 |
Fair Value Measurements, Nonrecurring | 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 nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2018 and 2017 . 2018 Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other real estate owned 2,065 — — 2,065 |
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 IRLCs $ 389 Discounted cash flow Loan closing rates 34% - 100% Other real estate owned $ 2,065 Fair value of collateral Discount to reflect current market conditions 10% Fair Value at Valuation Unobservable Range IRLCs $ 551 Discounted cash flow Loan closing rates 39% - 100% |
Fair Value, by Balance Sheet Grouping | The following tables summarize the carrying value and estimated fair value of all financial assets and liabilities at December 31, 2018 and 2017 : December 31, 2018 Fair Value Measurements Using Carrying Amount Fair Value Quoted Prices In Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 188,712 $ 188,712 $ 188,712 $ — $ — Securities held-to-maturity 22,750 22,418 — 22,418 — Net loans 2,698,332 2,646,060 — — 2,646,060 Accrued interest receivable 16,822 16,822 16,822 — — Federal Home Loan Bank of Indianapolis stock 23,625 23,625 — 23,625 — Deposits 2,671,351 2,687,666 731,378 — 1,956,288 Advances from Federal Home Loan Bank 525,153 520,120 — 520,120 — Subordinated debt 33,875 34,490 24,250 10,240 — Accrued interest payable 1,108 1,108 1,108 — — December 31, 2017 Fair Value Measurements Using Carrying Amount Fair Value Quoted Prices In Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 47,981 $ 47,981 $ 47,981 $ — $ — Securities held-to-maturity 19,209 19,209 — 19,209 — Loans held-for-sale (best efforts pricing agreements) 27,835 27,835 — 27,835 — Net loans 2,076,223 2,051,545 — — 2,051,545 Accrued interest receivable 11,944 11,944 11,944 — — Federal Home Loan Bank of Indianapolis stock 19,575 19,575 — 19,575 — Deposits 2,084,941 2,057,708 688,800 — 1,368,908 Advances from Federal Home Loan Bank 410,176 397,950 — 397,950 — Subordinated debt 36,726 39,972 26,520 13,452 — Accrued interest payable 311 311 311 — — |
Mortgage Banking Activities (Ta
Mortgage Banking Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Mortgage Banking [Abstract] | |
Schedule of Participating Mortgage Loans | The following table provides the components of income from mortgage banking activities for the years ended December 31, 2018 , 2017 , and 2016 . Year Ended December 31, 2018 2017 2016 Gain on loans sold $ 6,102 $ 7,775 $ 12,462 Gain (loss) resulting from the change in fair value of loans held-for-sale 57 638 (500 ) (Loss) gain resulting from the change in fair value of derivatives (441 ) (577 ) 436 Net revenue from mortgage banking activities $ 5,718 $ 7,836 $ 12,398 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Derivative Instruments, Cumulative Basis Adjustments | The following table presents amounts that were recorded on the consolidated balance sheets related to cumulative basis adjustments for interest rate swap derivatives designated as fair value accounting hedges as of December 31, 2018 and 2017. Carrying amount of the hedged assets Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets Line item in the consolidated balance sheet in which the hedged item is included December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Loans $ 474,233 $ 91,653 $ 4,961 $ 263 Securities available-for-sale 1 159,188 92,230 (229 ) 8 1 These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At December 31, 2018 and 2017, the amounts of the designated hedged items were $88.2 million and $50.0 million , respectively. |
Schedule Of Derivative Instruments Of Fixed Rate Receivables | The following table presents a summary of interest rate swap derivatives designated as fair value accounting hedges of fixed-rate receivables used in the Company's asset/liability management activities at December 31, 2018 and December 31, 2017, identified by the underlying interest rate-sensitive instruments. December 31, 2018 Weighted Average Remaining Maturity (years) Weighted-Average Rate Instruments Associated With Notional Value Fair Value Receive Pay Loans $ 435,926 6.5 $ (5,025 ) 3 month LIBOR 2.86% Securities available-for-sale 88,200 5.1 235 3 month LIBOR 2.54% Total swap portfolio at December 31, 2018 $ 524,126 6.3 $ (4,790 ) 3 month LIBOR 2.80% December 31, 2017 Weighted Average Remaining Maturity (years) Weighted-Average Rate Instruments Associated With Notional Value Fair Value Receive Pay Loans $ 91,135 7.9 $ (263 ) 3 month LIBOR 2.44% Securities available-for-sale 50,000 6.8 (8 ) 3 month LIBOR 2.33% Total swap portfolio at December 31, 2017 $ 141,135 7.5 $ (271 ) 3 month LIBOR 2.41% |
Schedule Of Derivative Instruments Of Variable Rate Liabilities | The following table presents a summary of interest rate swap derivatives designated as cash flow accounting hedges of variable-rate liabilities used in the Company's asset/liability management activities at December 31, 2018. There were no interest rate swap derivatives designated as cash flow accounting hedges at December 31, 2017. December 31, 2018 Weighted Average Remaining Maturity (years) Weighted-Average Rate Cash Flow Hedges Notional Value Fair Value Receive Pay Interest rate swaps $ 110,000 8.1 $ (2,293 ) 3 month LIBOR 2.88% Interest rate swaps 100,000 5.0 (2,065 ) 1 month LIBOR 2.88% |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the notional amount and fair value of interest rate swaps, IRLCs and forward contracts utilized by the Company at December 31, 2018 and 2017 . December 31, 2018 December 31, 2017 Notional Fair Notional Fair Asset Derivatives Derivatives designated as hedging instruments Interest rate swaps associated with loans $ 91,135 $ 986 $ 17,900 $ 3 Interest rate swaps associated with securities available-for-sale 50,000 593 — — Derivatives not designated as hedging instruments IRLCs 15,136 389 26,394 551 Total contracts $ 156,271 $ 1,968 $ 44,294 $ 554 Liability Derivatives Derivatives designated as hedging instruments Interest rate swaps associated with loans $ 344,791 $ (6,011 ) $ 73,235 $ (266 ) Interest rate swaps associated with securities available-for-sale 38,200 (358 ) 50,000 (8 ) Interest rate swaps associated with liabilities $ 210,000 $ (4,358 ) $ — $ — Derivatives not designated as hedging instruments Forward contracts $ 32,500 $ (360 ) $ 51,124 $ (80 ) Total contracts $ 625,491 $ (11,087 ) $ 174,359 $ (354 ) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table presents the effects of the Company's cash flow hedge relationships on the consolidated statements of comprehensive income during the twelve months ended December 31, 2018, 2017, and 2016. Amount of Loss Recognized in Other Comprehensive Income in the Twelve Months Ended December 31, 2018 December 31, 2017 December 31, 2016 Interest rate swap agreements $ (4,358 ) $ — $ — |
Schedule Of Derivative Instruments In Statements Of Income Fair Value | Fair values of IRLCs and forward contracts were estimated using changes in mortgage interest rates from the date the Company entered into the IRLC and the balance sheet date. The following table presents the effects of the Company's cash flow hedge relationships on the consolidated statements of comprehensive income during the twelve months ended December 31, 2018, 2017, and 2016. Amount of Loss Recognized in Other Comprehensive Income in the Twelve Months Ended December 31, 2018 December 31, 2017 December 31, 2016 Interest rate swap agreements $ (4,358 ) $ — $ — The following table summarizes the periodic changes in the fair value of the derivative financial instruments on the consolidated statements of income for the twelve months ended December 31, 2018 , 2017 , and 2016 . Amount of (loss) / gain recognized in the twelve months ended December 31, 2018 December 31, 2017 December 31, 2016 Asset Derivatives Derivatives not designated as hedging instruments IRLCs (162 ) (59 ) 28 Forward contracts (279 ) (519 ) 408 |
Derivative Instruments, Gain (Loss) | The following table presents the effects of the Company's interest rate swap agreements on the consolidated statements of income during the twelve months ended December 31, 2018, 2017, and 2016. Line item in the consolidated statements of income Twelve Months Ended December 31, 2018 December 31, 2017 December 31, 2016 Interest income Loans $ (100 ) $ — $ — Securities - taxable (153 ) — — Securities - non-taxable 23 — — Total interest income (230 ) — — Interest expense Deposits 151 — — Other borrowed funds 177 — — Total interest expense 328 — — Net interest income $ (558 ) $ — $ — |
Condensed Financial Informati_2
Condensed Financial Information (Parent Company Only) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule Of Condensed Balance Sheet Of Parent Company Only | Condensed Balance Sheets Year Ended December 31, 2018 2017 Assets Cash and cash equivalents $ 45,281 $ 32,810 Investment in common stock of subsidiaries 274,158 223,008 Premises and equipment, net 6,158 6,576 Accrued income and other assets 1,554 3,114 Total assets $ 327,151 $ 265,508 Liabilities and shareholders’ equity Subordinated debt, net of unamortized discounts and debt issuance costs of $1,125 in 2018 and $1,274 in 2017 $ 33,875 $ 36,726 Note payable to the Bank 3,300 3,600 Accrued expenses and other liabilities 1,241 1,055 Total liabilities 38,416 41,381 Shareholders’ equity 288,735 224,127 Total liabilities and shareholders’ equity $ 327,151 $ 265,508 |
Schedule Of Condensed Income Statement Of Parent Company Only | Year Ended December 31, 2018 2017 Assets Cash and cash equivalents $ 45,281 $ 32,810 Investment in common stock of subsidiaries 274,158 223,008 Premises and equipment, net 6,158 6,576 Accrued income and other assets 1,554 3,114 Total assets $ 327,151 $ 265,508 Liabilities and shareholders’ equity Subordinated debt, net of unamortized discounts and debt issuance costs of $1,125 in 2018 and $1,274 in 2017 $ 33,875 $ 36,726 Note payable to the Bank 3,300 3,600 Accrued expenses and other liabilities 1,241 1,055 Total liabilities 38,416 41,381 Shareholders’ equity 288,735 224,127 Total liabilities and shareholders’ equity $ 327,151 $ 265,508 Condensed Statements of Income |
Comprehensive Income (Loss) | Condensed Statements of Comprehensive Income Year Ended December 31, 2018 2017 2016 Net income $ 21,900 $ 15,226 $ 12,074 Other comprehensive income Net unrealized holding (losses) gains on securities available-for-sale recorded within other comprehensive income before income tax (10,466 ) 6,280 (12,315 ) Reclassification adjustment for losses (gains) realized — 8 (177 ) Net unrealized holding gains on cash flow hedging derivatives recorded within other comprehensive income before income tax (4,358 ) — — Other comprehensive (loss) income before tax (14,824 ) 6,288 (12,492 ) Income tax (benefit) provision (4,365 ) 2,039 (4,433 ) Other comprehensive (loss) income - net of tax (10,459 ) 4,249 (8,059 ) Comprehensive income $ 11,441 $ 19,475 $ 4,015 |
Schedule Of Condensed Cash Flow Statement Of Parent Company Only | Condensed Statements of Cash Flows Year Ended December 31, 2018 2017 2016 Operating activities Net income $ 21,900 $ 15,226 $ 12,074 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of subsidiaries (25,466 ) (17,989 ) (14,148 ) Depreciation and amortization 568 572 461 Share-based compensation expense 243 175 128 Net change in other assets 1,769 (1,453 ) (696 ) Net change in other liabilities 79 (326 ) 870 Net cash used in operating activities (907 ) (3,795 ) (1,311 ) Investing activities Capital contribution to the Bank (35,000 ) (42,000 ) (43,500 ) Purchase of premises and equipment — (148 ) (1,423 ) Net cash used in investing activities (35,000 ) (42,148 ) (44,923 ) Financing activities Cash dividends paid (2,230 ) (1,675 ) (1,199 ) Net proceeds from issuance of subordinated debt — — 23,757 Repayment of subordinated debt (3,000 ) — — Principal payment on loan from the Bank (300 ) (400 ) — Net proceeds from common stock issuance 54,334 51,636 46,223 Repurchase of common stock (216 ) — — Other, net (210 ) (173 ) (42 ) Net cash provided by financing activities 48,378 49,388 68,739 Net increase in cash and cash equivalents 12,471 3,445 22,505 Cash and cash equivalents at beginning of year 32,810 29,365 6,860 Cash and cash equivalents at end of year $ 45,281 $ 32,810 $ 29,365 |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | Three Months Ended December 31, September 30, June 30, March 31, Income Statement Data: Interest income $ 31,849 $ 30,223 $ 27,416 $ 25,979 Interest expense 16,428 14,253 11,955 10,564 Net interest income 15,421 15,970 15,461 15,415 Provision for loan losses 1,487 888 667 850 Net interest income after provision for loan losses 13,934 15,082 14,794 14,565 Noninterest income 2,047 1,994 2,177 2,542 Noninterest expense 12,739 10,045 10,182 10,217 Income before income taxes 3,242 7,031 6,789 6,890 Income tax provision (334 ) 743 781 862 Net income $ 3,576 $ 6,288 $ 6,008 $ 6,028 Per Share Data: Net income Basic $ 0.35 $ 0.61 $ 0.67 $ 0.71 Diluted $ 0.35 $ 0.61 $ 0.67 $ 0.71 Weighted average common shares outstanding Basic 10,263,086 10,261,967 8,909,913 8,499,196 Diluted 10,275,040 10,273,766 8,919,460 8,542,363 Three Months Ended December 31, September 30, June 30, March 31, Income Statement Data: Interest income $ 24,638 $ 22,694 $ 19,975 $ 17,390 Interest expense 9,278 8,503 7,001 5,933 Net interest income 15,360 14,191 12,974 11,457 Provision for loan losses 1,179 1,336 1,322 1,035 Net interest income after provision for loan losses 14,181 12,855 11,652 10,422 Noninterest income 2,539 3,135 2,736 2,131 Noninterest expense 9,701 9,401 8,923 8,698 Income before income taxes 7,019 6,589 5,465 3,855 Income tax provision 3,521 1,694 1,464 1,023 Net income $ 3,498 $ 4,895 $ 4,001 $ 2,832 Per Share Data: Net income Basic $ 0.41 $ 0.72 $ 0.61 $ 0.43 Diluted $ 0.41 $ 0.71 $ 0.61 $ 0.43 Weighted average common shares outstanding Basic 8,490,951 6,834,011 6,583,515 6,547,807 Diluted 8,527,599 6,854,614 6,597,991 6,602,200 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||||||||||
Net income | $ 3,576 | $ 6,288 | $ 6,008 | $ 6,028 | $ 3,498 | $ 4,895 | $ 4,001 | $ 2,832 | $ 21,900 | $ 15,226 | $ 12,074 |
Weighted-average common shares (in shares) | 10,263,086 | 10,261,967 | 8,909,913 | 8,499,196 | 8,490,951 | 6,834,011 | 6,583,515 | 6,547,807 | 9,490,506 | 7,118,628 | 5,211,209 |
Basic earnings per share | |||||||||||
Basic earnings per common share (in dollars per share) | $ 0.35 | $ 0.61 | $ 0.67 | $ 0.71 | $ 0.41 | $ 0.72 | $ 0.61 | $ 0.43 | $ 2.31 | $ 2.14 | $ 2.32 |
Diluted earnings per share | |||||||||||
Dilutive effect of warrants (in shares) | 0 | 6,120 | 11,026 | ||||||||
Dilutive effect of equity compensation (in shares) | 18,147 | 24,554 | 16,847 | ||||||||
Weighted-average common and incremental shares (in shares) | 9,508,653 | 7,149,302 | 5,239,082 | ||||||||
Diluted earnings per common share (in dollars per share) | $ 0.35 | $ 0.61 | $ 0.67 | $ 0.71 | $ 0.41 | $ 0.71 | $ 0.61 | $ 0.43 | $ 2.30 | $ 2.13 | $ 2.30 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2006 | |
Significant Accounting Policies [Line Items] | ||
Date of incorporation | Sep. 15, 2005 | |
Ownership (as a percent) | 100.00% | |
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 | |
Land Improvements | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful lives (in years) | 10 years | |
Buildings | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful lives (in years) | 39 years |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details Textual) $ in Millions | Dec. 31, 2018USD ($) |
Cash and Cash Equivalents [Line Items] | |
Cash in excess of limits of FDIC insurance coverage | $ 32.2 |
Cash on deposit | 1.6 |
Federal Home Loan Bank of Indianapolis | |
Cash and Cash Equivalents [Line Items] | |
Cash held | 5.4 |
Federal Home Loan Bank of Chicago | |
Cash and Cash Equivalents [Line Items] | |
Cash held | $ 144.1 |
Securities (Details)
Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Available-for-sale Securities [Abstract] | ||
Amortized Cost | $ 499,893 | $ 481,357 |
Gross Unrealized Gains | 272 | 1,024 |
Gross Unrealized Losses | (18,820) | (9,106) |
Fair Value | 481,345 | 473,275 |
Held-to-maturity Securities [Abstract] | ||
Amortized Cost | 22,750 | 19,209 |
Gross Unrealized Gains | 80 | 231 |
Gross Unrealized Losses | (412) | (357) |
Fair Value | 22,418 | 19,083 |
U.S. Government-sponsored agencies | ||
Available-for-sale Securities [Abstract] | ||
Amortized Cost | 109,631 | 133,424 |
Gross Unrealized Gains | 20 | 531 |
Gross Unrealized Losses | (2,066) | (765) |
Fair Value | 107,585 | 133,190 |
Municipal securities | ||
Available-for-sale Securities [Abstract] | ||
Amortized Cost | 97,090 | 97,370 |
Gross Unrealized Gains | 90 | 366 |
Gross Unrealized Losses | (4,674) | (1,359) |
Fair Value | 92,506 | 96,377 |
Held-to-maturity Securities [Abstract] | ||
Amortized Cost | 10,157 | 10,164 |
Gross Unrealized Gains | 0 | 40 |
Gross Unrealized Losses | (356) | (357) |
Fair Value | 9,801 | 9,847 |
Mortgage-backed securities | ||
Available-for-sale Securities [Abstract] | ||
Amortized Cost | 251,492 | 215,452 |
Gross Unrealized Gains | 162 | 15 |
Gross Unrealized Losses | (8,742) | (5,747) |
Fair Value | 242,912 | 209,720 |
Asset-backed securities | ||
Available-for-sale Securities [Abstract] | ||
Amortized Cost | 5,002 | 5,000 |
Gross Unrealized Gains | 0 | 9 |
Gross Unrealized Losses | (143) | 0 |
Fair Value | 4,859 | 5,009 |
Corporate securities | ||
Available-for-sale Securities [Abstract] | ||
Amortized Cost | 36,678 | 27,111 |
Gross Unrealized Gains | 0 | 103 |
Gross Unrealized Losses | (3,195) | (1,167) |
Fair Value | 33,483 | 26,047 |
Held-to-maturity Securities [Abstract] | ||
Amortized Cost | 12,593 | 9,045 |
Gross Unrealized Gains | 80 | 191 |
Gross Unrealized Losses | (56) | 0 |
Fair Value | $ 12,617 | 9,236 |
Other securities | ||
Available-for-sale Securities [Abstract] | ||
Amortized Cost | 3,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (68) | |
Fair Value | $ 2,932 |
Securities - Carrying Value of
Securities - Carrying Value of Securities by Contractual Maturity Date (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Amortized Cost | |
Within one year | $ 0 |
One to five years | 291 |
Five to ten years | 62,119 |
Five to ten years | 180,989 |
Amortized Cost | 243,399 |
Totals | 499,893 |
Held-to-maturity Securities, Debt Maturities, Rolling Year Six Through Ten, Amortized Cost | 16,836 |
Held-to-maturity Securities, Debt Maturities, Rolling after Ten Years, Amortized Cost | 5,914 |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis | 22,750 |
Fair Value | |
Within one year | 0 |
One to five years | 273 |
Five to ten years | 59,805 |
After ten years | 173,496 |
Fair Value | 233,574 |
Totals | 481,345 |
Held-to-maturity Securities, Debt Maturities, Rolling Year Six Through Ten, Fair Value | 16,698 |
Held-to-maturity Securities, Debt Maturities, after Ten Years, Fair Value | 5,720 |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Fair Value | 22,418 |
Mortgage-backed securities | |
Amortized Cost | |
Totals | 251,492 |
Fair Value | |
Totals | 242,912 |
Asset-backed securities | |
Amortized Cost | |
Totals | 5,002 |
Fair Value | |
Totals | $ 4,859 |
Securities - Gross Unrealized L
Securities - Gross Unrealized Losses and Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value | ||
Less Than 12 Months | $ 168,673 | $ 67,226 |
12 Months or Longer | 285,282 | 279,131 |
Total | 453,955 | 346,357 |
Held-to-maturity, Less Than 12 Months | 15,838 | 8,255 |
Held-to-maturity, 12 Months or Longer | 0 | 0 |
Held-to-maturity, Total | 15,838 | 8,255 |
Unrealized Losses | ||
Less Than 12 Months | (2,861) | (732) |
12 Months or Longer | (15,959) | (8,374) |
Total | (18,820) | (9,106) |
Held-to-maturity, Less Than 12 Months | (412) | (357) |
Held-to-maturity, 12 Months or Longer | 0 | 0 |
Held-to-maturity, Total | (412) | (357) |
U.S. Government-sponsored agencies | ||
Fair Value | ||
Less Than 12 Months | 69,798 | 30,194 |
12 Months or Longer | 33,511 | 22,824 |
Total | 103,309 | 53,018 |
Unrealized Losses | ||
Less Than 12 Months | (893) | (256) |
12 Months or Longer | (1,173) | (509) |
Total | (2,066) | (765) |
Municipals | ||
Fair Value | ||
Less Than 12 Months | 23,747 | 5,638 |
12 Months or Longer | 59,938 | 57,128 |
Total | 83,685 | 62,766 |
Held-to-maturity, Less Than 12 Months | 9,801 | 8,255 |
Held-to-maturity, 12 Months or Longer | 0 | 0 |
Held-to-maturity, Total | 9,801 | 8,255 |
Unrealized Losses | ||
Less Than 12 Months | (710) | (77) |
12 Months or Longer | (3,964) | (1,282) |
Total | (4,674) | (1,359) |
Held-to-maturity, Less Than 12 Months | (356) | (357) |
Held-to-maturity, 12 Months or Longer | 0 | 0 |
Held-to-maturity, Total | (356) | (357) |
Mortgage-backed securities | ||
Fair Value | ||
Less Than 12 Months | 56,177 | 29,542 |
12 Months or Longer | 172,442 | 177,266 |
Total | 228,619 | 206,808 |
Unrealized Losses | ||
Less Than 12 Months | (529) | (251) |
12 Months or Longer | (8,213) | (5,496) |
Total | (8,742) | (5,747) |
Asset-backed securities | ||
Fair Value | ||
Less Than 12 Months | 4,859 | |
12 Months or Longer | 0 | |
Total | 4,859 | |
Unrealized Losses | ||
Less Than 12 Months | (143) | |
12 Months or Longer | 0 | |
Total | (143) | |
Corporate securities | ||
Fair Value | ||
Less Than 12 Months | 14,092 | 1,852 |
12 Months or Longer | 19,391 | 18,981 |
Total | 33,483 | 20,833 |
Held-to-maturity, Less Than 12 Months | 6,037 | |
Held-to-maturity, 12 Months or Longer | 0 | |
Held-to-maturity, Total | 6,037 | |
Unrealized Losses | ||
Less Than 12 Months | (586) | (148) |
12 Months or Longer | (2,609) | (1,019) |
Total | (3,195) | (1,167) |
Held-to-maturity, Less Than 12 Months | (56) | |
Held-to-maturity, 12 Months or Longer | 0 | |
Held-to-maturity, Total | $ (56) | |
Other securities | ||
Fair Value | ||
Less Than 12 Months | 0 | |
12 Months or Longer | 2,932 | |
Total | 2,932 | |
Unrealized Losses | ||
Less Than 12 Months | 0 | |
12 Months or Longer | (68) | |
Total | $ (68) |
Securities - Amounts Reclassifi
Securities - Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
(Loss) gain realized in earnings | $ 0 | $ (8) | $ 177 |
Total reclassified amount before tax | 0 | (8) | 177 |
Tax (benefit) expense | 0 | (3) | 63 |
Total reclassifications out of accumulated other comprehensive loss | $ 0 | $ (5) | $ 114 |
Securities (Details Textual)
Securities (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Gross gains | $ 0 | $ 0 | $ 0.2 |
Gross losses | 0 | 0 | $ 0 |
Securities pledged as collateral | 445.8 | ||
Total fair value | $ 469.8 | $ 354.6 | |
Percentage of available-for-sale portfolio | 93.00% | 72.00% |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Total loans | $ 2,698,844 | $ 2,086,429 | ||
Net deferred loan origination costs and premiums and discounts on purchased loans and other(1) | 17,384 | 4,764 | ||
Total loans | 2,716,228 | 2,091,193 | ||
Allowance for loan losses | (17,896) | (14,970) | $ (10,981) | $ (8,351) |
Net loans | 2,698,332 | 2,076,223 | ||
Commercial and industrial | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Allowance for loan losses | (1,479) | (1,738) | (1,352) | (1,367) |
Owner-occupied commercial real estate | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Allowance for loan losses | (891) | (803) | (582) | (476) |
Investor commercial real estate | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Allowance for loan losses | (61) | (85) | (168) | (212) |
Construction | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Allowance for loan losses | (251) | (423) | (544) | (500) |
Single tenant lease financing | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Allowance for loan losses | (8,827) | (7,872) | (6,248) | (3,931) |
Public finance | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Allowance for loan losses | (1,670) | (959) | 0 | |
Healthcare finance | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Allowance for loan losses | (1,264) | (313) | 0 | |
Residential mortgage | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Allowance for loan losses | (1,079) | (956) | (754) | (896) |
Home equity | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Allowance for loan losses | (53) | (70) | (102) | (125) |
Other consumer | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Allowance for loan losses | (2,321) | (1,751) | $ (1,231) | $ (844) |
Commercial loans | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Total loans | 1,990,440 | 1,528,407 | ||
Commercial loans | Commercial and industrial | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Total loans | 114,382 | 122,940 | ||
Commercial loans | Owner-occupied commercial real estate | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Total loans | 87,962 | 75,768 | ||
Commercial loans | Investor commercial real estate | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Total loans | 5,391 | 7,273 | ||
Commercial loans | Construction | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Total loans | 39,916 | 49,213 | ||
Commercial loans | Single tenant lease financing | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Total loans | 919,440 | 803,299 | ||
Commercial loans | Public finance | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Total loans | 706,342 | 438,341 | ||
Commercial loans | Healthcare finance | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Total loans | 117,007 | 31,573 | ||
Consumer loans | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Total loans | 708,404 | 558,022 | ||
Consumer loans | Residential mortgage | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Total loans | 399,898 | 299,935 | ||
Consumer loans | Home equity | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Total loans | 28,735 | 30,554 | ||
Consumer loans | Other consumer | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Total loans | 279,771 | 227,533 | ||
Interest rate swaps assets | Commercial loans | Public finance | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Total loans | $ 5,000 | $ 300 |
Loans - Allowance for Loan Los
Loans - Allowance for Loan Losses and the Recorded Investment in Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Balance, beginning of year | |||||
Balance, beginning of year | $ 14,970 | $ 10,981 | $ 8,351 | ||
Provision charged to expense | 3,892 | 4,872 | 4,330 | ||
Losses charged off | (1,277) | (1,282) | (2,189) | ||
Recoveries | 311 | 399 | 489 | ||
Balance, end of year | 17,896 | 14,970 | 10,981 | ||
Loans: | |||||
Ending balance: collectively evaluated for impairment | $ 2,690,213 | $ 2,081,224 | |||
Ending balance: individually evaluated for impairment | 8,631 | 5,205 | |||
Ending balance | 2,698,844 | 2,086,429 | |||
Ending balance: collectively evaluated for impairment | 17,896 | 14,970 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance | 14,970 | 10,981 | 8,351 | 17,896 | 14,970 |
Commercial and industrial | |||||
Balance, beginning of year | |||||
Balance, beginning of year | 1,738 | 1,352 | 1,367 | ||
Provision charged to expense | (170) | 588 | 1,380 | ||
Losses charged off | (92) | (271) | (1,582) | ||
Recoveries | 3 | 69 | 187 | ||
Balance, end of year | 1,479 | 1,738 | 1,352 | ||
Loans: | |||||
Ending balance: collectively evaluated for impairment | 108,742 | 119,054 | |||
Ending balance: individually evaluated for impairment | 5,640 | 3,886 | |||
Ending balance: collectively evaluated for impairment | 1,479 | 1,738 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance | 1,738 | 1,352 | 1,367 | 1,479 | 1,738 |
Owner-occupied commercial real estate | |||||
Balance, beginning of year | |||||
Balance, beginning of year | 803 | 582 | 476 | ||
Provision charged to expense | 88 | 221 | 106 | ||
Losses charged off | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | ||
Balance, end of year | 891 | 803 | 582 | ||
Loans: | |||||
Ending balance: collectively evaluated for impairment | 85,653 | 75,761 | |||
Ending balance: individually evaluated for impairment | 2,309 | 7 | |||
Ending balance: collectively evaluated for impairment | 891 | 803 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance | 803 | 582 | 476 | 891 | 803 |
Investor commercial real estate | |||||
Balance, beginning of year | |||||
Balance, beginning of year | 85 | 168 | 212 | ||
Provision charged to expense | (24) | (83) | (44) | ||
Losses charged off | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | ||
Balance, end of year | 61 | 85 | 168 | ||
Loans: | |||||
Ending balance: collectively evaluated for impairment | 5,391 | 7,273 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 61 | 85 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance | 85 | 168 | 212 | 61 | 85 |
Construction | |||||
Balance, beginning of year | |||||
Balance, beginning of year | 423 | 544 | 500 | ||
Provision charged to expense | (172) | (121) | 44 | ||
Losses charged off | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | ||
Balance, end of year | 251 | 423 | 544 | ||
Loans: | |||||
Ending balance: collectively evaluated for impairment | 39,916 | 49,213 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 251 | 423 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance | 423 | 544 | 500 | 251 | 423 |
Single tenant lease financing | |||||
Balance, beginning of year | |||||
Balance, beginning of year | 7,872 | 6,248 | 3,931 | ||
Provision charged to expense | 955 | 1,624 | 2,317 | ||
Losses charged off | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | ||
Balance, end of year | 8,827 | 7,872 | 6,248 | ||
Loans: | |||||
Ending balance: collectively evaluated for impairment | 919,440 | 803,299 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 8,827 | 7,872 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance | 7,872 | 6,248 | 3,931 | 8,827 | 7,872 |
Public finance | |||||
Balance, beginning of year | |||||
Balance, beginning of year | 959 | 0 | |||
Provision charged to expense | 711 | 959 | |||
Losses charged off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Balance, end of year | 1,670 | 959 | 0 | ||
Loans: | |||||
Ending balance: collectively evaluated for impairment | 706,342 | 438,341 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 1,670 | 959 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance | 959 | 0 | 0 | 1,670 | 959 |
Healthcare finance | |||||
Balance, beginning of year | |||||
Balance, beginning of year | 313 | 0 | |||
Provision charged to expense | 951 | 313 | |||
Losses charged off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Balance, end of year | 1,264 | 313 | 0 | ||
Loans: | |||||
Ending balance: collectively evaluated for impairment | 117,007 | 31,573 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 1,264 | 313 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance | 313 | 0 | 0 | 1,264 | 313 |
Residential mortgage | |||||
Balance, beginning of year | |||||
Balance, beginning of year | 956 | 754 | 896 | ||
Provision charged to expense | 127 | 314 | (38) | ||
Losses charged off | (9) | (116) | (134) | ||
Recoveries | 5 | 4 | 30 | ||
Balance, end of year | 1,079 | 956 | 754 | ||
Loans: | |||||
Ending balance: collectively evaluated for impairment | 399,328 | 298,796 | |||
Ending balance: individually evaluated for impairment | 570 | 1,139 | |||
Ending balance: collectively evaluated for impairment | 1,079 | 956 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance | 956 | 754 | 896 | 1,079 | 956 |
Home equity | |||||
Balance, beginning of year | |||||
Balance, beginning of year | 70 | 102 | 125 | ||
Provision charged to expense | (33) | (55) | (3) | ||
Losses charged off | 0 | 0 | (33) | ||
Recoveries | 16 | 23 | 13 | ||
Balance, end of year | 53 | 70 | 102 | ||
Loans: | |||||
Ending balance: collectively evaluated for impairment | 28,680 | 30,471 | |||
Ending balance: individually evaluated for impairment | 55 | 83 | |||
Ending balance: collectively evaluated for impairment | 53 | 70 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance | 70 | 102 | 125 | 53 | 70 |
Other consumer | |||||
Balance, beginning of year | |||||
Balance, beginning of year | 1,751 | 1,231 | 844 | ||
Provision charged to expense | 1,459 | 1,112 | 568 | ||
Losses charged off | (1,176) | (895) | (440) | ||
Recoveries | 287 | 303 | 259 | ||
Balance, end of year | 2,321 | 1,751 | 1,231 | ||
Loans: | |||||
Ending balance: collectively evaluated for impairment | 279,714 | 227,443 | |||
Ending balance: individually evaluated for impairment | 57 | 90 | |||
Ending balance: collectively evaluated for impairment | 2,321 | 1,751 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance | $ 1,751 | $ 1,231 | $ 844 | 2,321 | 1,751 |
Commercial loans | |||||
Loans: | |||||
Ending balance | 1,990,440 | 1,528,407 | |||
Commercial loans | Commercial and industrial | |||||
Loans: | |||||
Ending balance | 114,382 | 122,940 | |||
Commercial loans | Owner-occupied commercial real estate | |||||
Loans: | |||||
Ending balance | 87,962 | 75,768 | |||
Commercial loans | Investor commercial real estate | |||||
Loans: | |||||
Ending balance | 5,391 | 7,273 | |||
Commercial loans | Construction | |||||
Loans: | |||||
Ending balance | 39,916 | 49,213 | |||
Commercial loans | Single tenant lease financing | |||||
Loans: | |||||
Ending balance | 919,440 | 803,299 | |||
Commercial loans | Public finance | |||||
Loans: | |||||
Ending balance | 706,342 | 438,341 | |||
Commercial loans | Healthcare finance | |||||
Loans: | |||||
Ending balance | 117,007 | 31,573 | |||
Consumer loans | |||||
Loans: | |||||
Ending balance | 708,404 | 558,022 | |||
Consumer loans | Residential mortgage | |||||
Loans: | |||||
Ending balance | 399,898 | 299,935 | |||
Consumer loans | Home equity | |||||
Loans: | |||||
Ending balance | 28,735 | 30,554 | |||
Consumer loans | Other consumer | |||||
Loans: | |||||
Ending balance | $ 279,771 | $ 227,533 |
Loans - Credit Risk Profile (De
Loans - Credit Risk Profile (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 2,698,844 | $ 2,086,429 |
Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 792 | 839 |
Commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,990,440 | 1,528,407 |
Commercial loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,971,570 | 1,509,542 |
Commercial loans | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10,921 | 14,961 |
Commercial loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 7,949 | 3,904 |
Commercial loans | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 114,382 | 122,940 |
Commercial loans | Commercial and industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 107,666 | 113,840 |
Commercial loans | Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,076 | 5,203 |
Commercial loans | Commercial and industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,640 | 3,897 |
Commercial loans | Commercial and industrial | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 195 | 0 |
Commercial loans | Owner-occupied commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 87,962 | 75,768 |
Commercial loans | Owner-occupied commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 81,264 | 72,995 |
Commercial loans | Owner-occupied commercial real estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4,389 | 2,766 |
Commercial loans | Owner-occupied commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,309 | 7 |
Commercial loans | Owner-occupied commercial real estate | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 325 | 0 |
Commercial loans | Investor commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,391 | 7,273 |
Commercial loans | Investor commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,391 | 7,273 |
Commercial loans | Investor commercial real estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial loans | Investor commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial loans | Investor commercial real estate | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial loans | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 39,916 | 49,213 |
Commercial loans | Construction | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 39,916 | 49,213 |
Commercial loans | Construction | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial loans | Construction | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial loans | Construction | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial loans | Single tenant lease financing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 919,440 | 803,299 |
Commercial loans | Single tenant lease financing | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 913,984 | 796,307 |
Commercial loans | Single tenant lease financing | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,456 | 6,992 |
Commercial loans | Single tenant lease financing | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial loans | Single tenant lease financing | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial loans | Public finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 706,342 | 438,341 |
Commercial loans | Public finance | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 706,342 | 438,341 |
Commercial loans | Public finance | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial loans | Public finance | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial loans | Public finance | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial loans | Healthcare finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 117,007 | 31,573 |
Commercial loans | Healthcare finance | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 117,007 | 31,573 |
Commercial loans | Healthcare finance | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial loans | Healthcare finance | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial loans | Healthcare finance | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Consumer loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 708,404 | 558,022 |
Consumer loans | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 708,132 | 557,183 |
Consumer loans | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 272 | 839 |
Consumer loans | Residential mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 399,898 | 299,935 |
Consumer loans | Residential mortgage | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 399,723 | 299,211 |
Consumer loans | Residential mortgage | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 175 | 724 |
Consumer loans | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 28,735 | 30,554 |
Consumer loans | Home equity | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 28,680 | 30,471 |
Consumer loans | Home equity | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 55 | 83 |
Consumer loans | Other consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 279,771 | 227,533 |
Consumer loans | Other consumer | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 279,729 | 227,501 |
Consumer loans | Other consumer | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 42 | $ 32 |
Loans - Loan Portfolio Aging An
Loans - Loan Portfolio Aging Analysis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 4,015 | $ 1,091 |
Current | 2,694,829 | 2,085,338 |
Total loans | 2,698,844 | 2,086,429 |
Total Loans 90 Days or More Past Due and Accruing | 97 | 0 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Owner-occupied commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Investor commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Single tenant lease financing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Public finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Healthcare finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 97 | 0 |
Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 336 | 299 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,522 | 143 |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 157 | 649 |
Nonaccrual | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 792 | 839 |
Commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,990,440 | 1,528,407 |
Commercial loans | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 9 | 10 |
Current | 114,373 | 122,930 |
Total loans | 114,382 | 122,940 |
Commercial loans | Owner-occupied commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 326 | 0 |
Current | 87,636 | 75,768 |
Total loans | 87,962 | 75,768 |
Commercial loans | Investor commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 5,391 | 7,273 |
Total loans | 5,391 | 7,273 |
Commercial loans | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 39,916 | 49,213 |
Total loans | 39,916 | 49,213 |
Commercial loans | Single tenant lease financing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 919,440 | 803,299 |
Total loans | 919,440 | 803,299 |
Commercial loans | Public finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 706,342 | 438,341 |
Total loans | 706,342 | 438,341 |
Commercial loans | Healthcare finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 117,007 | 31,573 |
Total loans | 117,007 | 31,573 |
Commercial loans | 30-59 Days Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 9 | 0 |
Commercial loans | 30-59 Days Past Due | Owner-occupied commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 92 | 0 |
Commercial loans | 30-59 Days Past Due | Investor commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial loans | 30-59 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial loans | 30-59 Days Past Due | Single tenant lease financing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial loans | 30-59 Days Past Due | Public finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial loans | 30-59 Days Past Due | Healthcare finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial loans | 60-89 Days Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 10 |
Commercial loans | 60-89 Days Past Due | Owner-occupied commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 234 | 0 |
Commercial loans | 60-89 Days Past Due | Investor commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial loans | 60-89 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial loans | 60-89 Days Past Due | Single tenant lease financing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial loans | 60-89 Days Past Due | Public finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial loans | 60-89 Days Past Due | Healthcare finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial loans | 90 Days or More Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial loans | 90 Days or More Past Due | Owner-occupied commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial loans | 90 Days or More Past Due | Investor commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial loans | 90 Days or More Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial loans | 90 Days or More Past Due | Single tenant lease financing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial loans | 90 Days or More Past Due | Public finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | |
Commercial loans | 90 Days or More Past Due | Healthcare finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | |
Commercial loans | Nonaccrual | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 195 | 0 |
Commercial loans | Nonaccrual | Owner-occupied commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 325 | 0 |
Commercial loans | Nonaccrual | Investor commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Commercial loans | Nonaccrual | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Commercial loans | Nonaccrual | Single tenant lease financing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Commercial loans | Nonaccrual | Public finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Commercial loans | Nonaccrual | Healthcare finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 708,404 | 558,022 |
Consumer loans | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,216 | 583 |
Current | 396,682 | 299,352 |
Total loans | 399,898 | 299,935 |
Consumer loans | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 55 | 83 |
Current | 28,680 | 30,471 |
Total loans | 28,735 | 30,554 |
Consumer loans | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 409 | 415 |
Current | 279,362 | 227,118 |
Total loans | 279,771 | 227,533 |
Consumer loans | 30-59 Days Past Due | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer loans | 30-59 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer loans | 30-59 Days Past Due | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 235 | 299 |
Consumer loans | 60-89 Days Past Due | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,118 | 23 |
Consumer loans | 60-89 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer loans | 60-89 Days Past Due | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 170 | 110 |
Consumer loans | 90 Days or More Past Due | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 98 | 560 |
Consumer loans | 90 Days or More Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 55 | 83 |
Consumer loans | 90 Days or More Past Due | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4 | 6 |
Consumer loans | Nonaccrual | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 272 | 839 |
Consumer loans | Nonaccrual | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 175 | 724 |
Consumer loans | Nonaccrual | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 55 | 83 |
Consumer loans | Nonaccrual | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 42 | $ 32 |
Loans - Impaired Loans (Details
Loans - Impaired Loans (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017contract | Dec. 31, 2018USD ($)contract | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Loans without a specific valuation allowance | ||||
Average Balance | $ 7,743 | $ 4,601 | $ 1,744 | |
Interest Income | 485 | 156 | 13 | |
Loans with a specific valuation allowance | ||||
Average Balance | 0 | 35 | 1,084 | |
Interest Income | 0 | 0 | 0 | |
Total impaired loans | ||||
Recorded Balance | 8,631 | 5,205 | ||
Unpaid Principal Balance | 8,710 | 5,263 | ||
Specific Allowance | 0 | 0 | ||
Average Balance | 7,743 | 4,636 | 2,828 | |
Interest Income | 485 | 156 | 13 | |
Other real estate owned | 2,619 | 5,041 | ||
Mortgage loans in process of foreclosure, amount | 0 | 200 | ||
Commercial and industrial | ||||
Loans without a specific valuation allowance | ||||
Recorded Balance | 5,640 | 3,886 | ||
Unpaid Principal Balance | 5,652 | 3,886 | ||
Specific Allowance | 0 | 0 | ||
Average Balance | 5,961 | 2,942 | 0 | |
Interest Income | 426 | 146 | 0 | |
Loans with a specific valuation allowance | ||||
Average Balance | 0 | 35 | 1,084 | |
Interest Income | $ 0 | 0 | 0 | |
Total impaired loans | ||||
Modifications, number of contracts | contract | 2 | 0 | ||
Modifications, recorded Investment | $ 1,800 | |||
Owner-occupied commercial real estate | ||||
Loans without a specific valuation allowance | ||||
Recorded Balance | 2,309 | 7 | ||
Unpaid Principal Balance | 2,309 | 7 | ||
Specific Allowance | 0 | 0 | ||
Average Balance | 893 | 3 | 0 | |
Interest Income | 59 | 0 | 0 | |
Residential mortgage | ||||
Loans without a specific valuation allowance | ||||
Recorded Balance | 570 | 1,139 | ||
Unpaid Principal Balance | 570 | 1,144 | ||
Specific Allowance | 0 | 0 | ||
Average Balance | 720 | 1,546 | 1,595 | |
Interest Income | 0 | 6 | 8 | |
Total impaired loans | ||||
Other real estate owned | 600 | 600 | ||
Home equity | ||||
Loans without a specific valuation allowance | ||||
Recorded Balance | 55 | 83 | ||
Unpaid Principal Balance | 55 | 83 | ||
Specific Allowance | 0 | 0 | ||
Average Balance | 61 | 5 | 0 | |
Interest Income | 0 | 0 | 0 | |
Other consumer | ||||
Loans without a specific valuation allowance | ||||
Recorded Balance | 57 | 90 | ||
Unpaid Principal Balance | 124 | 143 | ||
Specific Allowance | 0 | 0 | ||
Average Balance | 108 | 105 | 149 | |
Interest Income | $ 0 | $ 4 | $ 5 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | $ (7,631) | $ (6,479) |
Premises and equipment, Net | 10,697 | 10,058 |
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 | 6,752 | 6,427 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 9,076 | $ 7,610 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 4,687 | $ 4,687 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Noninterest-bearing demand deposit accounts | $ 43,301 | $ 44,686 |
Interest-bearing demand deposit accounts | 121,055 | 94,674 |
Regular savings accounts | 38,489 | 49,939 |
Money market accounts | 528,533 | 499,501 |
Certificates of deposits | 1,292,883 | 1,319,488 |
Brokered deposits | 647,090 | 76,653 |
Total deposits | 2,671,351 | 2,084,941 |
Time deposits (in the amount of $250 or more) | $ 494,403 | $ 453,034 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Banking and Thrift [Abstract] | |
2019 | $ 762,263 |
2020 | 256,624 |
2021 | 316,649 |
2022 | 56,399 |
2023 | 59,890 |
Thereafter | 502 |
Time Deposits, Total | $ 1,452,327 |
Deposits (Details Textual)
Deposits (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Time deposits (in the amount of $250 or more) | $ 494,403 | $ 453,034 |
FHLB Advances (Details)
FHLB Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
2019 | $ 140,000 | |
2020 | 0 | |
2021 | 0 | |
2022 | 60,000 | |
2023 | 35,000 | |
Thereafter | 290,000 | |
Summary total | 525,000 | |
Net deferred prepayment gain on advance restructure | 153 | |
Total | $ 525,153 | $ 410,200 |
FHLB Advances (Details Textual)
FHLB Advances (Details Textual) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
FHLB Advances | $ 525,153,000 | $ 410,200,000 |
Investment securities pledged | 339,100,000 | 362,800,000 |
Maximum borrowing capacity | $ 494,300,000 | |
Minimum | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Interest rate (as a percent) | 1.06% | |
Maximum | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Interest rate (as a percent) | 3.26% | |
Weighted Average | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Interest rate (as a percent) | 2.15% | |
Federal Home Loan Bank, Advances, Putable Option | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Variable rate advances | $ 230,000,000 | |
Residential mortgage | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Loans pledged | 238,600,000 | 226,300,000 |
Commercial and industrial | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Loans pledged | $ 881,700,000 | $ 808,900,000 |
Subordinated Debt (Details Text
Subordinated Debt (Details Textual) - Subordinated Debt - USD ($) | Jun. 28, 2013 | Sep. 30, 2017 | May 04, 2017 | Oct. 20, 2015 |
8% Debenture Due 2021 | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 3,000,000 | |||
Annual rate (as a percent) | 8.00% | |||
Warrants (in shares) | 48,750 | |||
Exercise price (in shares) | $ 19.33 | |||
Common stock, shares issued (in shares) | 15,915 | |||
Number of securities withheld for cashless exercise feature | 32,835 | |||
6.4375% Notes Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 10,000,000 | |||
Annual rate (as a percent) | 6.4375% | |||
6% Notes Due 2021 | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 25,000,000 | |||
Annual rate (as a percent) | 6.00% | |||
LIBOR | 6% Notes Due 2021 | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 485.00% |
Subordinated Debt - Schedule Of
Subordinated Debt - Schedule Of Subordinated Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 525,153 | $ 410,176 |
Unamortized discounts and debt issuance costs | (1,125) | (1,274) |
Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 35,000 | 38,000 |
Unamortized discounts and debt issuance costs | (1,125) | (1,274) |
Subordinated Debt | 8% Debenture Due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 3,000 |
Unamortized discounts and debt issuance costs | 0 | 0 |
Subordinated Debt | 6.4375% Notes Due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 10,000 | 10,000 |
Unamortized discounts and debt issuance costs | (162) | (186) |
Subordinated Debt | 6% Notes Due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 25,000 | 25,000 |
Unamortized discounts and debt issuance costs | $ (963) | $ (1,088) |
Benefit Plans - Restricted Stoc
Benefit Plans - Restricted Stock (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Restricted Stock Units | |
Restricted Stock Awards (in shares) | |
Nonvested at beginning of period | shares | 72,765 |
Granted | shares | 41,507 |
Vested | shares | (34,241) |
Forfeited | shares | (4,477) |
Nonvested at end of period | shares | 75,554 |
Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | |
Weighted-Average Grant Date Fair Value Per Share Nonvested, Beginning Balance (in dollars per share) | $ / shares | $ 27.91 |
Weighted-Average Grant Date Fair Value Per Share Granted (in dollars per share) | $ / shares | 40.64 |
Weighted-Average Grant Date Fair Value Per Share Vested (in dollars per share) | $ / shares | 26.06 |
Weighted-Average Grant Date Fair Value Per Share Forfeited (in dollars per share) | $ / shares | 34.57 |
Weighted-Average Grant Date Fair Value Per Share Nonvested, Ending Balance (in dollars per share) | $ / shares | $ 35.34 |
Restricted Stock Awards | |
Restricted Stock Awards (in shares) | |
Nonvested at beginning of period | shares | 3,333 |
Granted | shares | 11,294 |
Vested | shares | (12,961) |
Forfeited | shares | 0 |
Nonvested at end of period | shares | 1,666 |
Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | |
Weighted-Average Grant Date Fair Value Per Share Nonvested, Beginning Balance (in dollars per share) | $ / shares | $ 24.44 |
Weighted-Average Grant Date Fair Value Per Share Granted (in dollars per share) | $ / shares | 38.75 |
Weighted-Average Grant Date Fair Value Per Share Vested (in dollars per share) | $ / shares | 37.39 |
Weighted-Average Grant Date Fair Value Per Share Forfeited (in dollars per share) | $ / shares | 0 |
Weighted-Average Grant Date Fair Value Per Share Nonvested, Ending Balance (in dollars per share) | $ / shares | $ 24.44 |
Deferred Stock Units | |
Restricted Stock Awards (in shares) | |
Nonvested at beginning of period | shares | 0 |
Granted | shares | 6 |
Vested | shares | (6) |
Forfeited | shares | 0 |
Nonvested at end of period | shares | 0 |
Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | |
Weighted-Average Grant Date Fair Value Per Share Nonvested, Beginning Balance (in dollars per share) | $ / shares | $ 0 |
Weighted-Average Grant Date Fair Value Per Share Granted (in dollars per share) | $ / shares | 34 |
Weighted-Average Grant Date Fair Value Per Share Vested (in dollars per share) | $ / shares | (34) |
Weighted-Average Grant Date Fair Value Per Share Forfeited (in dollars per share) | $ / shares | 0 |
Weighted-Average Grant Date Fair Value Per Share Nonvested, Ending Balance (in dollars per share) | $ / shares | $ 0 |
Benefit Plans - Deferred Stock
Benefit Plans - Deferred Stock Rights (Details) | 12 Months Ended |
Dec. 31, 2018shares | |
Deferred Rights (in shares) | |
Outstanding, beginning of year | 82,995 |
Granted | 526 |
Exercised | 0 |
Outstanding, end of year | 83,521 |
Benefit Plans (Details Textual)
Benefit Plans (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contributions | $ 0.5 | $ 0.5 | $ 0.4 |
Vesting (as a percent) | 50.00% | ||
Unrecognized compensation cost | $ 1.7 | ||
Weighted average expense recognition period (in years) | 1 year 10 months 24 days | ||
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. | ||
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 | ||
Share-based compensation expense | $ 1.6 | $ 1 | $ 0.7 |
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 (Cred
Income Taxes - Provisions (Credit) for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current | $ 1,074 | $ 10,998 | $ 2,367 | ||||||||
Deferred | 978 | (5,142) | 3,544 | ||||||||
Net deferred tax asset revaluation | 0 | 1,846 | 0 | ||||||||
Total | $ (334) | $ 743 | $ 781 | $ 862 | $ 3,521 | $ 1,694 | $ 1,464 | $ 1,023 | $ 2,052 | $ 7,702 | $ 5,911 |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Statutory rate times pre-tax income | $ 5,030 | $ 8,025 | $ 6,115 | ||||||||
(Subtract) add the tax effect of: | |||||||||||
Income from tax-exempt securities and loans | (3,833) | (2,512) | (635) | ||||||||
State income tax, net of federal tax effect | 1,164 | 693 | 567 | ||||||||
Bank-owned life insurance | (200) | (318) | (159) | ||||||||
Net deferred tax asset revaluation | 0 | 1,846 | 0 | ||||||||
Tax credits | (180) | 0 | 0 | ||||||||
Other differences | 71 | (32) | 23 | ||||||||
Total | $ (334) | $ 743 | $ 781 | $ 862 | $ 3,521 | $ 1,694 | $ 1,464 | $ 1,023 | $ 2,052 | $ 7,702 | $ 5,911 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets (liabilities) | ||
Allowance for loan losses | $ 4,832 | $ 3,873 |
Unrealized loss on available-for-sale securities | 6,137 | 1,939 |
Fair value adjustments | (5,016) | (2,213) |
Depreciation | (398) | (263) |
Deferred compensation and accrued payroll | 1,043 | 1,051 |
Loan origination costs | (1,081) | (783) |
Prepaid assets | (406) | (288) |
Net operating loss | 455 | 0 |
Tax credits | 231 | 0 |
Other | 808 | 69 |
Total deferred tax assets, net | $ 6,605 | $ 3,385 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Statutory rate (as a percent) | 21.00% | 35.00% | 34.00% |
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 2.2 | ||
General Business Tax Credit Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | $ 0.2 |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transactions [Abstract] | ||
Deposits | $ 24 | $ 22.8 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements - Required Ratios (Details) | 12 Months Ended | |||
Dec. 31, 2018 | Jan. 01, 2019 | Dec. 31, 2017 | Jan. 01, 2016 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Minimum ratio of Common Equity Tier 1 capital to risk-weighed assets, capital conservation buffer | 0.625% | |||
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 6.38% | 5.75% | ||
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 7.88% | 7.25% | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 9.88% | 9.25% | ||
Tier 1 capital (to average assets), Minimum Capital Requirement, Ratio (as a percent) | 4.00% | 4.00% | ||
Phase-in period | 4 years | |||
Scenario, Forecast | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Minimum ratio of Common Equity Tier 1 capital to risk-weighed assets | 4.50% | |||
Minimum ratio of Common Equity Tier 1 capital to risk-weighed assets, capital conservation buffer | 2.50% | |||
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 7.00% | |||
Minimum ratio of Tier 1 capital to risk-weighted assets | 6.00% | |||
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 8.50% | |||
Minimum ratio of Total capital to risk-weighted assets | 8.00% | |||
Capital Required for Capital Adequacy to Risk Weighted Assets | 10.50% | |||
Tier 1 capital (to average assets), Minimum Capital Requirement, Ratio (as a percent) | 4.00% |
Regulatory Capital Requiremen_4
Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Tier 1 common equity, (to risk-weighted assets), Actual Amount | $ 300,589 | $ 224,407 | |
Tier 1 common equity, (to risk-weighted assets), Actual Ratio (as a percent) | 12.39% | 11.43% | |
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Actual Amount | $ 154,613 | $ 112,866 | |
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 6.38% | 5.75% | |
Capital | $ 352,360 | $ 276,103 | |
Capital to Risk Weighted Assets | 14.53% | 14.07% | |
Capital Required for Capital Adequacy | $ 239,498 | $ 181,566 | |
Capital Required for Capital Adequacy to Risk Weighted Assets | 9.88% | 9.25% | |
Tier 1 capital (to risk-weighted assets), Actual Amount | $ 300,589 | $ 224,407 | |
Tier 1 capital (to risk-weighted assets), Actual Ratio (as a percent) | 12.39% | 11.43% | |
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Amount | $ 190,992 | $ 142,309 | |
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 7.88% | 7.25% | |
Tier 1 capital (to average assets), Actual Amount | $ 300,589 | $ 224,407 | |
Tier 1 capital (to average assets), Actual Ratio (as a percent) | 9.00% | 8.45% | |
Tier 1 capital (to average assets), Minimum Capital Requirement, Amount | $ 133,602 | $ 106,196 | |
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] | |||
Tier 1 common equity, (to risk-weighted assets), Actual Amount | $ 286,012 | $ 223,288 | |
Tier 1 common equity, (to risk-weighted assets), Actual Ratio (as a percent) | 11.81% | 11.40% | |
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Actual Amount | $ 154,407 | $ 112,672 | |
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 6.38% | 5.75% | |
Tier One Common Equity Required to be Well Capitalized | $ 157,435 | $ 127,368 | |
Tier One Common Equity Required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% | |
Capital | $ 300,908 | $ 238,258 | |
Capital to Risk Weighted Assets | 12.55% | 12.16% | |
Capital Required for Capital Adequacy | $ 239,180 | $ 181,255 | |
Capital Required for Capital Adequacy to Risk Weighted Assets | 9.88% | 9.25% | |
Capital Required to be Well Capitalized | $ 242,207 | $ 195,951 | |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% | |
Tier 1 capital (to risk-weighted assets), Actual Amount | $ 286,012 | $ 223,288 | |
Tier 1 capital (to risk-weighted assets), Actual Ratio (as a percent) | 11.81% | 11.40% | |
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Amount | $ 190,738 | $ 142,064 | |
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 7.88% | 7.25% | |
Tier 1 capital (to risk-weighted assets), Minimum to be Wel Capitalized Under Prompt Corrective Actions, Amount | $ 193,766 | $ 156,761 | |
Tier 1 capital (to risk-weighted assets), Minimum to be Wel Capitalized Under Prompt Corrective Actions, Ratio (as a percent) | 8.00% | 8.00% | |
Tier 1 capital (to average assets), Actual Amount | $ 286,012 | $ 223,288 | |
Tier 1 capital (to average assets), Actual Ratio (as a percent) | 8.57% | 8.42% | |
Tier 1 capital (to average assets), Minimum Capital Requirement, Amount | $ 133,474 | $ 106,059 | |
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 | $ 166,843 | $ 132,574 | |
Tier 1 capital (to average assets), Minimum to be Well Capitalized Under Prompt Corrective Actions, Ratio (as a percent) | 5.00% | 5.00% | |
Scenario, Forecast | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 7.00% | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 10.50% | ||
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 8.50% | ||
Tier 1 capital (to average assets), Minimum Capital Requirement, Ratio (as a percent) | 4.00% | ||
2016 Period | Scenario, Forecast | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Actual Amount | $ 169,771 | ||
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 7.00% | ||
Capital Required for Capital Adequacy | $ 254,656 | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 10.50% | ||
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Amount | $ 206,150 | ||
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 8.50% | ||
Tier 1 capital (to average assets), Minimum Capital Requirement, Amount | $ 133,602 | ||
Tier 1 capital (to average assets), Minimum Capital Requirement, Ratio (as a percent) | 4.00% | ||
2016 Period | Scenario, Forecast | Bank | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Actual Amount | $ 169,545 | ||
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 7.00% | ||
Capital Required for Capital Adequacy | $ 254,318 | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 10.50% | ||
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Amount | $ 205,876 | ||
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 8.50% | ||
Tier 1 capital (to average assets), Minimum Capital Requirement, Amount | $ 133,474 | ||
Tier 1 capital (to average assets), Minimum Capital Requirement, Ratio (as a percent) | 4.00% | ||
Two Thousand Fifteen Period | Scenario, Forecast | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Actual Amount | $ 137,402 | ||
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 7.00% | ||
Capital Required for Capital Adequacy | $ 206,102 | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 10.50% | ||
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Amount | $ 166,845 | ||
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 8.50% | ||
Tier 1 capital (to average assets), Minimum Capital Requirement, Amount | $ 106,196 | ||
Tier 1 capital (to average assets), Minimum Capital Requirement, Ratio (as a percent) | 4.00% | ||
Two Thousand Fifteen Period | Scenario, Forecast | Bank | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Actual Amount | $ 137,166 | ||
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 7.00% | ||
Capital Required for Capital Adequacy | $ 205,748 | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 10.50% | ||
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Amount | $ 166,558 | ||
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) | 8.50% | ||
Tier 1 capital (to average assets), Minimum Capital Requirement, Amount | $ 106,059 | ||
Tier 1 capital (to average assets), Minimum Capital Requirement, Ratio (as a percent) | 4.00% |
Commitments and Credit Risk (De
Commitments and Credit Risk (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 747 |
2020 | 760 |
2021 | 315 |
2022 | 229 |
2023 | 116 |
Thereafter | 0 |
Total | $ 2,167 |
Commitments and Credit Risk (_2
Commitments and Credit Risk (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Loan commitments | $ 223.5 | $ 155.4 | |
Operating lease expense | 0.7 | $ 0.7 | $ 0.6 |
Minimum sublease rentals due | 1.1 | ||
Capital committed to Small Business Investment Company fund, not contributed | $ 2.5 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | $ 481,345 | $ 473,275 |
Loans held-for-sale (mandatory pricing agreements) | 18,328 | 23,571 |
Derivative, fair value | (11,087) | (354) |
IRLCs | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivative, fair value | 389 | 551 |
Loans held for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Loans held-for-sale (mandatory pricing agreements) | 18,328 | 23,571 |
Interest rate swaps assets | Interest rate swaps assets | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivative asset, fair value | 1,579 | |
Derivative liability, fair value | (10,727) | (271) |
Forward contracts | Forward contracts | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivative, fair value | (360) | (80) |
U.S. Government-sponsored agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | 107,585 | 133,190 |
Municipals | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | 92,506 | 96,377 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | 242,912 | 209,720 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | 4,859 | 5,009 |
Corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | 33,483 | 26,047 |
Other securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | 2,932 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | 0 | 2,932 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | IRLCs | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivative, fair value | 0 | 0 |
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) | Interest rate swaps assets | Interest rate swaps assets | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivative asset, fair value | 0 | |
Derivative liability, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward contracts | Forward contracts | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivative, fair value | (360) | (80) |
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 | 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 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate 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 | 2,932 | |
Significant Other Observable Inputs (Level 2) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | 481,345 | 470,343 |
Significant Other Observable Inputs (Level 2) | IRLCs | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivative, fair value | 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) | 18,328 | 23,571 |
Significant Other Observable Inputs (Level 2) | Interest rate swaps assets | Interest rate swaps assets | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivative asset, fair value | 1,579 | |
Derivative liability, fair value | (10,727) | (271) |
Significant Other Observable Inputs (Level 2) | Forward contracts | Forward contracts | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivative, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | U.S. Government-sponsored agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | 107,585 | 133,190 |
Significant Other Observable Inputs (Level 2) | Municipals | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | 92,506 | 96,377 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | 242,912 | 209,720 |
Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | 4,859 | 5,009 |
Significant Other Observable Inputs (Level 2) | Corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | 33,483 | 26,047 |
Significant Other Observable Inputs (Level 2) | Other securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | 0 | |
Significant Unobservable Inputs (Level 3) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | IRLCs | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivative, fair value | 389 | 551 |
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) | Interest rate swaps assets | Interest rate swaps assets | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivative asset, fair value | 0 | |
Derivative liability, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Forward contracts | Forward contracts | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Derivative, fair value | 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 | 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 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate 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 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Recurring Fair Value Measurements Reconciliation (Details) - IRLCs - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance | $ 551 | $ 610 | $ 582 |
Total realized gains | |||
Balance | 389 | 551 | 610 |
Included in net income | |||
Total realized gains | |||
Included in net income | $ (162) | $ (59) | $ 28 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Unobservable (Level 3) Inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Other Real Estate | $ 2,619 | $ 5,041 |
Significant Unobservable Inputs (Level 3) | IRLCs | ||
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 | $ 389 | $ 551 |
Significant Unobservable Inputs (Level 3) | Other Real Estate Owned | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Other securities, Valuation Technique | Fair value of collateral | |
Other securities, Unobservable Inputs | Discount to reflect current market conditions | |
Other Real Estate | $ 2,065 | |
Other real estate, interest rate | 10.00% | |
Significant Unobservable Inputs (Level 3) | Minimum | IRLCs | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
IRLC, Range, Loan closing rates (as a percent) | 34.00% | 39.00% |
Significant Unobservable Inputs (Level 3) | Maximum | IRLCs | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
IRLC, Range, Loan closing rates (as a percent) | 100.00% | 100.00% |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Carrying Value | $ 188,712 | $ 47,981 | $ 39,452 | $ 25,152 |
Held-to-maturity Securities | 22,750 | 19,209 | ||
Held-to-maturity securities, fair value | 22,418 | 19,083 | ||
Loans held-for-sale (best efforts pricing agreements), Carrying Amount | 27,835 | |||
Loans held-for-sale (mandatory pricing agreements) | 18,328 | 23,571 | ||
Loans | 2,716,228 | 2,091,193 | ||
Net loans, Carrying Amount | 2,698,332 | 2,076,223 | ||
Accrued interest receivable, Carrying Amount | 16,822 | 11,944 | ||
FHLB stock, Carrying Amount | 23,625 | 19,575 | ||
Deposits, Carrying Amount | 2,671,351 | 2,084,941 | ||
FHLB advances, Carrying Amount | 525,153 | 410,176 | ||
Subordinated Debt, Carrying Value | 33,875 | 36,726 | ||
Accrued interest payable, Carrying Amount | 1,108 | 311 | ||
Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents, Fair Value | 188,712 | 47,981 | ||
Held-to-maturity securities, fair value | 22,418 | 19,209 | ||
Loans held-for-sale (mandatory pricing agreements) | 27,835 | |||
Loans receivable - net, Fair Value | 2,646,060 | 2,051,545 | ||
Accrued interest receivable, Fair Value | 16,822 | 11,944 | ||
FHLB stock, Fair Value | 23,625 | 19,575 | ||
Deposits, Fair Value | 2,687,666 | 2,057,708 | ||
FHLB advances, Fair Value | 520,120 | 397,950 | ||
Subordinated Debt, Fair Value | 34,490 | 39,972 | ||
Accrued interest payable, Fair Value | 1,108 | 311 | ||
Fair Value | 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 | 188,712 | 47,981 | ||
Held-to-maturity securities, fair value | 0 | 0 | ||
Loans held-for-sale (mandatory pricing agreements) | 0 | |||
Loans receivable - net, Fair Value | 0 | 0 | ||
Accrued interest receivable, Fair Value | 16,822 | 11,944 | ||
FHLB stock, Fair Value | 0 | 0 | ||
Deposits, Fair Value | 731,378 | 688,800 | ||
FHLB advances, Fair Value | 0 | 0 | ||
Subordinated Debt, Fair Value | 24,250 | 26,520 | ||
Accrued interest payable, Fair Value | 1,108 | 311 | ||
Fair Value | 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 | ||
Held-to-maturity securities, fair value | 22,418 | |||
Loans held-for-sale (mandatory pricing agreements) | 27,835 | |||
Loans receivable - net, Fair Value | 0 | 0 | ||
Accrued interest receivable, Fair Value | 0 | 0 | ||
FHLB stock, Fair Value | 23,625 | 19,575 | ||
Deposits, Fair Value | 0 | 0 | ||
FHLB advances, Fair Value | 520,120 | 397,950 | ||
Subordinated Debt, Fair Value | 10,240 | 13,452 | ||
Accrued interest payable, Fair Value | 0 | 0 | ||
Fair Value | 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 | ||
Held-to-maturity securities, fair value | 0 | 0 | ||
Loans held-for-sale (mandatory pricing agreements) | 0 | |||
Loans receivable - net, Fair Value | 2,646,060 | 2,051,545 | ||
Accrued interest receivable, Fair Value | 0 | 0 | ||
FHLB stock, Fair Value | 0 | 0 | ||
Deposits, Fair Value | 1,956,288 | 1,368,908 | ||
FHLB advances, Fair Value | 0 | 0 | ||
Subordinated Debt, Fair Value | 0 | 0 | ||
Accrued interest payable, Fair Value | $ 0 | $ 0 |
Mortgage Banking Activities (De
Mortgage Banking Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Mortgage Banking [Abstract] | |||
Loans originated for sale | $ 364,630 | $ 412,925 | $ 598,439 |
Proceeds from sale of loans originated for sale | 376,535 | 425,262 | 619,818 |
Proceeds from sale of loans held-for-investment | 42,300 | ||
Gain on loans sold | 6,102 | 7,775 | 12,462 |
Gain (loss) resulting from the change in fair value of loans held-for-sale | 57 | 638 | (500) |
(Loss) gain resulting from the change in fair value of derivatives | (441) | (577) | 436 |
Mortgage banking activities | $ 5,718 | $ 7,836 | $ 12,398 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Carrying Amount and Adjustment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
AFS, amortized cost basis | $ 499,893 | |
Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
AFS, amortized cost basis | 88,200 | $ 50,000 |
Loans | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying amount of the hedged assets | 474,233 | 91,653 |
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets | 4,961 | 263 |
Securities available-for-sale | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying amount of the hedged assets | 159,188 | 92,230 |
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets | $ (229) | $ 8 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Interest Swap Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Value | $ 625,491 | $ 174,359 |
Derivative, fair value | (11,087) | (354) |
Interest rate swaps assets | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Value | $ 524,126 | $ 141,135 |
Weighted Average Remaining Maturity (years) | 6 years 3 months 18 days | 7 years 6 months |
Fair Value | $ (4,790) | $ (271) |
Weighted-Average Rate | 2.80% | 2.41% |
Cash pledged as collateral | $ 7,000 | $ 700 |
Loans | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | 4,961 | 263 |
Loans | Interest rate swaps assets | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Value | $ 435,926 | $ 91,135 |
Weighted Average Remaining Maturity (years) | 6 years 6 months | 7 years 10 months 24 days |
Fair Value | $ (5,025) | $ (263) |
Weighted-Average Rate | 2.86% | 2.44% |
Securities available-for-sale | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | $ (229) | $ 8 |
Securities available-for-sale | Interest rate swaps assets | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Value | $ 88,200 | $ 50,000 |
Weighted Average Remaining Maturity (years) | 5 years 1 month 6 days | 6 years 9 months 18 days |
Fair Value | $ 235 | $ (8) |
Weighted-Average Rate | 2.54% | 2.33% |
3 Month LIBOR | Interest rate swaps assets | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Value | $ 110,000 | |
Weighted Average Remaining Maturity (years) | 8 years 1 month 6 days | |
Derivative, fair value | $ (2,293) | |
Derivative, variable interest rate | 2.88% | |
1 Month LIBOR | Interest rate swaps assets | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Value | $ 100,000 | |
Weighted Average Remaining Maturity (years) | 5 years | |
Derivative, fair value | $ (2,065) | |
Derivative, variable interest rate | 2.88% |
Derivative Financial Instrume_5
Derivative Financial Instruments - Notional Amounts and Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Asset Derivatives | ||
Notional Amount | $ 156,271 | $ 44,294 |
Fair Value | 1,968 | 554 |
Derivative Liability [Abstract] | ||
Notional Amount | 625,491 | 174,359 |
Fair Value | (11,087) | (354) |
IRLCs | ||
Derivative Liability [Abstract] | ||
Fair Value | 389 | 551 |
Forward contracts | ||
Derivative Liability [Abstract] | ||
Notional Amount | 32,500 | 51,124 |
Fair Value | (360) | (80) |
Derivatives designated as hedging instruments | Interest rate swaps assets | ||
Asset Derivatives | ||
Notional Amount | 91,135 | 17,900 |
Fair Value | 986 | 3 |
Derivative Liability [Abstract] | ||
Notional Amount | 344,791 | 73,235 |
Fair Value | (6,011) | (266) |
Notional Amount | 524,126 | 141,135 |
Derivatives designated as hedging instruments | Interest rate swaps associated with securities available-for-sale | ||
Derivative Liability [Abstract] | ||
Notional Amount | 38,200 | 50,000 |
Fair Value | (358) | (8) |
Derivatives not designated as hedging instruments | IRLCs | ||
Asset Derivatives | ||
Notional Amount | 15,136 | 26,394 |
Fair Value | 389 | 551 |
Securities available-for-sale | Derivatives designated as hedging instruments | Interest rate swaps assets | ||
Asset Derivatives | ||
Notional Amount | 50,000 | 0 |
Fair Value | 593 | 0 |
Derivative Liability [Abstract] | ||
Notional Amount | 88,200 | 50,000 |
Liability | Derivatives designated as hedging instruments | Interest rate swaps assets | ||
Derivative Liability [Abstract] | ||
Notional Amount | 210,000 | 0 |
Fair Value | $ (4,358) | $ 0 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Gain (Loss) Recognized (Details) - Asset Derivatives - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
IRLCs | |||
Asset Derivatives | |||
Derivatives not designated as hedging instruments | $ (162) | $ (59) | $ 28 |
Forward contracts | |||
Asset Derivatives | |||
Derivatives not designated as hedging instruments | $ (279) | $ (519) | $ 408 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Effect of Derivatives on Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Interest income | $ 31,849 | $ 30,223 | $ 27,416 | $ 25,979 | $ 24,638 | $ 22,694 | $ 19,975 | $ 17,390 | $ 115,467 | $ 84,697 | $ 58,899 |
Interest expense | 16,428 | 14,253 | 11,955 | 10,564 | 9,278 | 8,503 | 7,001 | 5,933 | 53,200 | 30,715 | 19,210 |
Net interest income | $ 15,421 | $ 15,970 | $ 15,461 | $ 15,415 | $ 15,360 | $ 14,191 | $ 12,974 | $ 11,457 | 62,267 | 53,982 | 39,689 |
Interest rate swaps assets | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of Loss Recognized in Other Comprehensive Income in the Twelve Months Ended | (4,358) | 0 | 0 | ||||||||
Interest income | (230) | 0 | 0 | ||||||||
Interest expense | 328 | 0 | 0 | ||||||||
Net interest income | (558) | 0 | 0 | ||||||||
Interest rate swaps assets | Loans | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Interest income | (100) | 0 | 0 | ||||||||
Interest rate swaps assets | Securities - taxable | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Interest income | (153) | 0 | 0 | ||||||||
Interest rate swaps assets | Securities - non-taxable | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Interest income | 23 | 0 | 0 | ||||||||
Interest rate swaps assets | Deposits | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Interest expense | 151 | 0 | 0 | ||||||||
Interest rate swaps assets | Other borrowed funds | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Interest expense | $ 177 | $ 0 | $ 0 |
Shareholders' Equity (Details T
Shareholders' Equity (Details Textual) - Common Stock - USD ($) | 1 Months Ended | |||||
Jun. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2016 | May 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Public Offering | ||||||
Shareholders Equity [Line Items] | ||||||
Number of shares issued | 1,730,750 | 1,895,750 | ||||
Proceeds from issuance | $ 54,300,000 | $ 51,600,000 | ||||
Price per share (in dollars per share) | $ 33.25 | $ 29 | ||||
Underwriting Agreement | ||||||
Shareholders Equity [Line Items] | ||||||
Price per share (in dollars per share) | $ 26.50 | |||||
At The Market Offering (ATM Program) | ||||||
Shareholders Equity [Line Items] | ||||||
Remaining authorized available for sale amount | $ 21,600,000 | |||||
The Bank | Underwriting Agreement | ||||||
Shareholders Equity [Line Items] | ||||||
Number of shares issued | 945,000 | 895,955 | ||||
Proceeds from issuance | $ 23,400,000 | $ 19,700,000 | ||||
Price per share (in dollars per share) | $ 24 | |||||
The Bank | At The Market Offering (ATM Program) | ||||||
Shareholders Equity [Line Items] | ||||||
Number of shares issued | 139,811 | |||||
Proceeds from issuance | $ 3,100,000 | |||||
Authorized amount | $ 25,000,000 | |||||
Commissions fee percent | 3.00% |
Condensed Financial Informati_3
Condensed Financial Information (Parent Company Only) - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Cash and cash equivalents | $ 188,712 | $ 47,981 | $ 39,452 | $ 25,152 |
Premises and equipment, net | 10,697 | 10,058 | ||
Accrued income and other assets | 37,716 | 13,182 | ||
Total assets | 3,541,692 | 2,767,687 | ||
Liabilities and shareholders’ equity | ||||
Subordinated debt, net of unamortized discounts and debt issuance costs of $1,125 in 2018 and $1,274 in 2017 | 33,875 | 36,726 | ||
Accrued expenses and other liabilities | 21,470 | 11,406 | ||
Total liabilities | 3,252,957 | 2,543,560 | ||
Total shareholders’ equity | 288,735 | 224,127 | 153,942 | 104,330 |
Total liabilities and shareholders’ equity | 3,541,692 | 2,767,687 | ||
Unamortized discounts and debt issuance costs | 1,125 | 1,274 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 45,281 | 32,810 | $ 29,365 | $ 6,860 |
Investment in common stock of subsidiaries | 274,158 | 223,008 | ||
Premises and equipment, net | 6,158 | 6,576 | ||
Accrued income and other assets | 1,554 | 3,114 | ||
Total assets | 327,151 | 265,508 | ||
Liabilities and shareholders’ equity | ||||
Subordinated debt, net of unamortized discounts and debt issuance costs of $1,125 in 2018 and $1,274 in 2017 | 33,875 | 36,726 | ||
Note payable to the Bank | 3,300 | 3,600 | ||
Accrued expenses and other liabilities | 1,241 | 1,055 | ||
Total liabilities | 38,416 | 41,381 | ||
Total shareholders’ equity | 288,735 | 224,127 | ||
Total liabilities and shareholders’ equity | 327,151 | $ 265,508 | ||
Unamortized discounts and debt issuance costs | $ 1,125 |
Condensed Financial Informati_4
Condensed Financial Information (Parent Company Only) - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Expenses | |||||||||||
Interest on borrowings | $ 10,716 | $ 6,740 | $ 3,357 | ||||||||
Salaries and employee benefits | 23,174 | 21,164 | 17,387 | ||||||||
Consulting and professional fees | 3,055 | 3,091 | 3,143 | ||||||||
Premises and equipment | 4,996 | 4,183 | 3,699 | ||||||||
Income tax benefit | $ (334) | $ 743 | $ 781 | $ 862 | $ 3,521 | $ 1,694 | $ 1,464 | $ 1,023 | 2,052 | 7,702 | 5,911 |
Net income | $ 3,576 | $ 6,288 | $ 6,008 | $ 6,028 | $ 3,498 | $ 4,895 | $ 4,001 | $ 2,832 | 21,900 | 15,226 | 12,074 |
Parent Company | |||||||||||
Expenses | |||||||||||
Interest on borrowings | 2,616 | 2,724 | 1,557 | ||||||||
Salaries and employee benefits | 564 | 354 | 344 | ||||||||
Consulting and professional fees | 958 | 664 | 871 | ||||||||
Premises and equipment | 285 | 302 | 291 | ||||||||
Other | 315 | 258 | 235 | ||||||||
Total expenses | 4,738 | 4,302 | 3,298 | ||||||||
Loss before income tax and equity in undistributed net income of subsidiaries | (4,738) | (4,302) | (3,298) | ||||||||
Income tax benefit | (1,172) | (1,539) | (1,224) | ||||||||
Loss before equity in undistributed net income of subsidiaries | (3,566) | (2,763) | (2,074) | ||||||||
Equity in undistributed net income of subsidiaries | 25,466 | 17,989 | 14,148 | ||||||||
Net income | $ 21,900 | $ 15,226 | $ 12,074 |
Condensed Financial Informati_5
Condensed Financial Information (Parent Company Only) - Condensed Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Condensed Comprehensive Income [Line Items] | |||||||||||
Net income | $ 3,576 | $ 6,288 | $ 6,008 | $ 6,028 | $ 3,498 | $ 4,895 | $ 4,001 | $ 2,832 | $ 21,900 | $ 15,226 | $ 12,074 |
Other comprehensive income | |||||||||||
Net unrealized holding (losses) gains on securities available-for-sale recorded within other comprehensive income before income tax | (10,466) | 6,280 | (12,315) | ||||||||
Reclassification adjustment for losses (gains) realized | 0 | 8 | (177) | ||||||||
Net unrealized holding losses on cash flow hedging derivatives recorded within other comprehensive income before income tax | (4,358) | 0 | 0 | ||||||||
Other comprehensive (loss) income before tax | (14,824) | 6,288 | (12,492) | ||||||||
Income tax provision (benefit) | (4,365) | 2,039 | (4,433) | ||||||||
Other comprehensive (loss) income - net of tax | (10,459) | 4,249 | (8,059) | ||||||||
Comprehensive income | 11,441 | 19,475 | 4,015 | ||||||||
Parent Company | |||||||||||
Schedule Of Condensed Comprehensive Income [Line Items] | |||||||||||
Net income | 21,900 | 15,226 | 12,074 | ||||||||
Other comprehensive income | |||||||||||
Net unrealized holding (losses) gains on securities available-for-sale recorded within other comprehensive income before income tax | (10,466) | 6,280 | (12,315) | ||||||||
Reclassification adjustment for losses (gains) realized | 0 | 8 | (177) | ||||||||
Net unrealized holding losses on cash flow hedging derivatives recorded within other comprehensive income before income tax | (4,358) | 0 | 0 | ||||||||
Other comprehensive (loss) income before tax | (14,824) | 6,288 | (12,492) | ||||||||
Other comprehensive (loss) income - net of tax | (10,459) | 4,249 | (8,059) | ||||||||
Comprehensive income | $ 11,441 | $ 19,475 | $ 4,015 |
Condensed Financial Informati_6
Condensed Financial Information (Parent Company Only) - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities | |||||||||||
Net income | $ 3,576 | $ 6,288 | $ 6,008 | $ 6,028 | $ 3,498 | $ 4,895 | $ 4,001 | $ 2,832 | $ 21,900 | $ 15,226 | $ 12,074 |
Depreciation and amortization | 5,667 | 5,299 | 3,799 | ||||||||
Share-based compensation expense | 1,596 | 1,038 | 736 | ||||||||
Net change in other assets | (11,807) | (2,273) | (7,390) | ||||||||
Net change in other liabilities | (83) | 554 | 1,041 | ||||||||
Investing activities | |||||||||||
Purchase of premises and equipment | (2,219) | (1,517) | (3,173) | ||||||||
Financing activities | |||||||||||
Cash dividends paid | (2,230) | (1,675) | (1,199) | ||||||||
Net proceeds from issuance of subordinated debt | 0 | 0 | 23,757 | ||||||||
Repayment of subordinated debt | (3,000) | 0 | 0 | ||||||||
Net proceeds from common stock issuance | 54,334 | 51,636 | 46,223 | ||||||||
Repurchase of common stock | (216) | 0 | 0 | ||||||||
Other, net | (210) | (173) | (42) | ||||||||
Net increase in cash and cash equivalents | 140,731 | 8,529 | 14,300 | ||||||||
Cash and cash equivalents, beginning of year | 47,981 | 39,452 | 47,981 | 39,452 | 25,152 | ||||||
Cash and cash equivalents, end of year | 188,712 | 47,981 | 188,712 | 47,981 | 39,452 | ||||||
Parent Company | |||||||||||
Operating Activities | |||||||||||
Net income | 21,900 | 15,226 | 12,074 | ||||||||
Equity in undistributed net income of subsidiaries | (25,466) | (17,989) | (14,148) | ||||||||
Depreciation and amortization | 568 | 572 | 461 | ||||||||
Share-based compensation expense | 243 | 175 | 128 | ||||||||
Net change in other assets | 1,769 | (1,453) | (696) | ||||||||
Net change in other liabilities | 79 | (326) | 870 | ||||||||
Net cash used in operating activities | (907) | (3,795) | (1,311) | ||||||||
Investing activities | |||||||||||
Capital contribution to the Bank | (35,000) | (42,000) | (43,500) | ||||||||
Purchase of premises and equipment | 0 | (148) | (1,423) | ||||||||
Net cash used in investing activities | (35,000) | (42,148) | (44,923) | ||||||||
Financing activities | |||||||||||
Cash dividends paid | (2,230) | (1,675) | (1,199) | ||||||||
Net proceeds from issuance of subordinated debt | 0 | 0 | 23,757 | ||||||||
Repayment of subordinated debt | (3,000) | 0 | 0 | ||||||||
Principal payment on loan from the Bank | (300) | (400) | 0 | ||||||||
Net proceeds from common stock issuance | 54,334 | 51,636 | 46,223 | ||||||||
Repurchase of common stock | (216) | 0 | 0 | ||||||||
Other, net | (210) | (173) | (42) | ||||||||
Net cash provided by financing activities | 48,378 | 49,388 | 68,739 | ||||||||
Net increase in cash and cash equivalents | 12,471 | 3,445 | 22,505 | ||||||||
Cash and cash equivalents, beginning of year | $ 32,810 | $ 29,365 | 32,810 | 29,365 | 6,860 | ||||||
Cash and cash equivalents, end of year | $ 45,281 | $ 32,810 | $ 45,281 | $ 32,810 | $ 29,365 |
Quarterly Financial Data (una_3
Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total interest income | $ 31,849 | $ 30,223 | $ 27,416 | $ 25,979 | $ 24,638 | $ 22,694 | $ 19,975 | $ 17,390 | $ 115,467 | $ 84,697 | $ 58,899 |
Total interest expense | 16,428 | 14,253 | 11,955 | 10,564 | 9,278 | 8,503 | 7,001 | 5,933 | 53,200 | 30,715 | 19,210 |
Net interest income | 15,421 | 15,970 | 15,461 | 15,415 | 15,360 | 14,191 | 12,974 | 11,457 | 62,267 | 53,982 | 39,689 |
Provision for loan losses | 1,487 | 888 | 667 | 850 | 1,179 | 1,336 | 1,322 | 1,035 | 3,892 | 4,872 | 4,330 |
Net interest income after provision for loan losses | 13,934 | 15,082 | 14,794 | 14,565 | 14,181 | 12,855 | 11,652 | 10,422 | 58,375 | 49,110 | 35,359 |
Total noninterest income | 2,047 | 1,994 | 2,177 | 2,542 | 2,539 | 3,135 | 2,736 | 2,131 | 8,760 | 10,541 | 14,077 |
Total noninterest expense | 12,739 | 10,045 | 10,182 | 10,217 | 9,701 | 9,401 | 8,923 | 8,698 | 43,183 | 36,723 | 31,451 |
Income before income taxes | 3,242 | 7,031 | 6,789 | 6,890 | 7,019 | 6,589 | 5,465 | 3,855 | 23,952 | 22,928 | 17,985 |
Income tax provision | (334) | 743 | 781 | 862 | 3,521 | 1,694 | 1,464 | 1,023 | 2,052 | 7,702 | 5,911 |
Net income | $ 3,576 | $ 6,288 | $ 6,008 | $ 6,028 | $ 3,498 | $ 4,895 | $ 4,001 | $ 2,832 | $ 21,900 | $ 15,226 | $ 12,074 |
Basic (in dollars per share) | $ 0.35 | $ 0.61 | $ 0.67 | $ 0.71 | $ 0.41 | $ 0.72 | $ 0.61 | $ 0.43 | $ 2.31 | $ 2.14 | $ 2.32 |
Diluted (in dollars per share) | $ 0.35 | $ 0.61 | $ 0.67 | $ 0.71 | $ 0.41 | $ 0.71 | $ 0.61 | $ 0.43 | $ 2.30 | $ 2.13 | $ 2.30 |
Weighted-average common shares (in shares) | 10,263,086 | 10,261,967 | 8,909,913 | 8,499,196 | 8,490,951 | 6,834,011 | 6,583,515 | 6,547,807 | 9,490,506 | 7,118,628 | 5,211,209 |
Diluted (shares) | 10,275,040 | 10,273,766 | 8,919,460 | 8,542,363 | 8,527,599 | 6,854,614 | 6,597,991 | 6,602,200 | 9,508,653 | 7,149,302 | 5,239,082 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - Subsequent Event - Accounting Standards Update 2016-02 $ in Millions | Jan. 01, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease, right-of-use asset | $ 2.1 |
Operating lease, liability | $ 2.1 |
Uncategorized Items - inbk-2018
Label | Element | Value | |
Accounting Standards Update 2016-01 [Member] | |||
Retained Earnings (Accumulated Deficit) | us-gaap_RetainedEarningsAccumulatedDeficit | $ (100,000) | |
Accounting Standards Update 2018-02 [Member] | |||
Retained Earnings (Accumulated Deficit) | us-gaap_RetainedEarningsAccumulatedDeficit | 1,100,000 | |
Accounting Standards Update 2018-02 And 2106-01 [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 | [1] |
Accounting Standards Update 2018-02 And 2106-01 [Member] | AOCI Attributable to Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,063,000) | [1] |
Accounting Standards Update 2018-02 And 2106-01 [Member] | Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,063,000 | [1] |
[1] | Represents the impact of adopting Accounting Standards Update ("ASU") 2018-02 and ASU 2016-01. ASU 2018-02 increased retained earnings and accumulated other comprehensive loss by $1.1 million. ASU 2016-01 decreased retained earnings and accumulated other comprehensive loss by $0.1 million. See Note 21 to the consolidated financial statements for more information. |