Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 10, 2020 | Jun. 28, 2019 | |
Document Information [Abstract] | |||
Entity Registrant Name | Reliant Bancorp, Inc. | ||
Entity Central Index Key | 0001606440 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filing Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 11,717,386 | ||
Entity Public Float | $ 211,513,193 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Small Business | true | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 50,990 | $ 34,807 |
Federal funds sold | 52 | 371 |
Total cash and cash equivalents | 51,042 | 35,178 |
Securities available for sale | 260,293 | 296,323 |
Loans, net | 1,397,374 | 1,220,184 |
Mortgage loans held for sale, net | 37,476 | 15,823 |
Accrued interest receivable | 7,111 | 8,214 |
Premises and equipment, net | 21,376 | 22,033 |
Restricted equity securities, at cost | 11,279 | 11,690 |
Other real estate, net | 750 | 1,000 |
Cash surrender value of life insurance contracts | 46,632 | 45,513 |
Deferred tax assets, net | 3,933 | 7,428 |
Goodwill | 43,642 | 43,642 |
Core deposit intangibles | 7,270 | 8,219 |
Other assets | 10,289 | 9,091 |
TOTAL ASSETS | 1,898,467 | 1,724,338 |
Deposits | ||
Demand | 260,073 | 216,937 |
Interest-bearing demand | 152,718 | 154,218 |
Savings and money market deposit accounts | 408,724 | 401,308 |
Time | 762,274 | 665,440 |
Total deposits | 1,583,789 | 1,437,903 |
Accrued interest payable | 2,022 | 1,063 |
Subordinated debentures | 70,883 | 11,603 |
Federal Home Loan Bank advances | 10,737 | 57,498 |
Dividends payable | 76 | 1,036 |
Other liabilities | 7,207 | 6,821 |
TOTAL LIABILITIES | 1,674,714 | 1,515,924 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued to date | 0 | 0 |
Common stock, $1 par value; 30,000,000 shares authorized; 11,206,254 and 11,530,810 shares issued and outstanding at December 31, 2019 and 2018, respectively | 11,206 | 11,531 |
Additional paid-in capital | 167,006 | 173,238 |
Retained earnings | 40,472 | 27,329 |
Accumulated other comprehensive income (loss) | 5,069 | (3,684) |
TOTAL STOCKHOLDERS’ EQUITY | 223,753 | 208,414 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,898,467 | $ 1,724,338 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 11,206,254 | 11,530,810 |
Common stock, shares outstanding (in shares) | 11,206,254 | 11,530,810 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INTEREST INCOME | |||
Interest and fees on loans | $ 68,421 | $ 58,351 | $ 34,176 |
Interest and fees on loans held for sale | 961 | 1,278 | 868 |
Interest on investment securities, taxable | 2,099 | 1,836 | 691 |
Interest on investment securities, nontaxable | 6,452 | 6,605 | 3,904 |
Federal funds sold and other | 1,252 | 1,155 | 519 |
TOTAL INTEREST INCOME | 79,185 | 69,225 | 40,158 |
Deposits | |||
Demand | 384 | 366 | 173 |
Savings and money market deposit accounts | 4,154 | 2,589 | 748 |
Time | 17,361 | 9,862 | 4,095 |
Federal Home Loan Bank advances and other | 543 | 1,855 | 655 |
Subordinated debentures | 938 | 724 | 0 |
TOTAL INTEREST EXPENSE | 23,380 | 15,396 | 5,671 |
NET INTEREST INCOME | 55,805 | 53,829 | 34,487 |
PROVISION FOR LOAN LOSSES | 1,211 | 1,035 | 1,316 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 54,594 | 52,794 | 33,171 |
NONINTEREST INCOME | |||
Service charges on deposit accounts | 3,746 | 3,419 | 1,251 |
Gains on mortgage loans sold, net | 4,905 | 4,418 | 3,675 |
Gain on securities transactions, net | 1,451 | 43 | 59 |
Gain on sale of other real estate | 166 | 259 | 27 |
Gain (loss) on disposal of premises and equipment | 0 | 13 | (52) |
Earnings on bank owned life insurance contracts | 1,119 | 1,186 | 836 |
Other | 577 | 308 | 214 |
TOTAL NONINTEREST INCOME | 11,964 | 9,646 | 6,010 |
NONINTEREST EXPENSE | |||
Salaries and employee benefits | 30,514 | 27,510 | 18,432 |
Occupancy | 5,423 | 4,949 | 3,353 |
Information technology | 6,213 | 5,333 | 2,715 |
Advertising and public relations | 1,293 | 600 | 264 |
Audit, legal and consulting | 2,302 | 2,976 | 1,508 |
Federal deposit insurance | 605 | 793 | 399 |
Provision for losses on other real estate | 98 | 0 | 0 |
Merger expenses | 1,603 | 2,774 | 1,426 |
Other operating | 5,841 | 5,626 | 2,979 |
TOTAL NONINTEREST EXPENSE | 53,892 | 50,561 | 31,076 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 12,666 | 11,879 | 8,105 |
INCOME TAX EXPENSE | 2,129 | 1,372 | 1,942 |
CONSOLIDATED NET INCOME | 10,537 | 10,507 | 6,163 |
NONCONTROLLING INTEREST IN NET LOSS OF SUBSIDIARY | 5,659 | 3,578 | 1,083 |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 16,196 | $ 14,085 | $ 7,246 |
Basic net income attributable to common shareholders, per share (in dollars per share) | $ 1.44 | $ 1.24 | $ 0.89 |
Diluted net income attributable to common shareholders, per share (in dollars per share) | $ 1.44 | $ 1.23 | $ 0.88 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Consolidated net income | $ 10,537 | $ 10,507 | $ 6,163 |
Other comprehensive income (loss) | |||
Net unrealized gains (losses) on available-for-sale securities, net of tax of $(3,718), $1,513 and $(2,102) for the years ended December 31, 2019, 2018 and 2017, respectively | 10,508 | (4,277) | 3,384 |
Net unrealized losses on interest rate swap derivatives, net of tax of $242 and $301 for the years ended December 31, 2019 and 2018, respectively | (683) | (852) | 0 |
Reclassification adjustment for gains included in net income, net of tax of $379, $11 and $23 for the years ended December 31, 2019, 2018 and 2017, respectively | (1,072) | (32) | (36) |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | 8,753 | (5,161) | 3,348 |
TOTAL COMPREHENSIVE INCOME | $ 19,290 | $ 5,346 | $ 9,511 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized gains (losses) on available-for-sale securities, tax | $ (3,718) | $ 1,513 | $ (2,102) |
Net unrealized losses on interest rate swap derivatives, tax | 242 | 301 | |
Reclassification adjustment for gains included in net income, tax | $ 379 | $ 11 | $ 23 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NONCONTROLLING INTEREST |
BALANCE (in shares) at Dec. 31, 2016 | 7,778,309 | |||||
BALANCE at Dec. 31, 2016 | $ 106,919 | $ 7,778 | $ 89,045 | $ 12,212 | $ (2,116) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation expense | $ 616 | 616 | ||||
Exercise of stock options (in shares) | 72,080 | 72,080 | ||||
Exercise of stock options | $ 823 | $ 72 | 751 | |||
Restricted stock awards (in shares) | 50,050 | |||||
Restricted stock awards | $ 50 | (50) | ||||
Noncontrolling interest contributions | 1,083 | 1,083 | ||||
Cash dividend declared to common shareholders ($0.27, $0.33 and $0.24 per share) | (2,024) | (2,024) | ||||
Net income (loss) | 6,163 | 7,246 | (1,083) | |||
Other comprehensive income (loss) | 3,348 | 3,348 | ||||
Restricted stock forfeiture (in shares) | (3,000) | |||||
Restricted stock forfeiture | $ (3) | 3 | ||||
Common stock net of issuance cost of $1,805 (in shares) | 1,137,000 | |||||
Common stock, net of issuance cost of $1,805 | 23,209 | $ 1,137 | 22,072 | |||
Reclassification of federal income tax rate change | (245) | 245 | ||||
BALANCE (in shares) at Dec. 31, 2017 | 9,034,439 | |||||
BALANCE at Dec. 31, 2017 | 140,137 | $ 9,034 | 112,437 | 17,189 | 1,477 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation expense | $ 923 | 923 | ||||
Exercise of stock options (in shares) | 30,001 | 30,001 | ||||
Exercise of stock options | $ 398 | $ 30 | 368 | |||
Restricted stock awards (in shares) | 51,710 | |||||
Restricted stock awards | $ 52 | (52) | ||||
Noncontrolling interest contributions | 3,578 | 3,578 | ||||
Cash dividend declared to common shareholders ($0.27, $0.33 and $0.24 per share) | (3,945) | (3,945) | ||||
Net income (loss) | 10,507 | 14,085 | (3,578) | |||
Other comprehensive income (loss) | (5,161) | (5,161) | ||||
Restricted stock forfeiture (in shares) | (1,550) | |||||
Restricted stock forfeiture | $ (2) | 2 | ||||
Conversion shares issued to shareholders of Community First, Inc. (in shares) | 2,416,444 | |||||
Conversion shares issued to shareholders of Community First, Inc. | 61,983 | $ 2,417 | 59,566 | |||
Shares acquired from dissenting shareholder (in shares) | (234) | |||||
Shares acquired from dissenting shareholder | $ (6) | (6) | ||||
BALANCE (in shares) at Dec. 31, 2018 | 11,530,810 | 11,530,810 | ||||
BALANCE at Dec. 31, 2018 | $ 208,414 | $ 11,531 | 173,238 | 27,329 | (3,684) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation expense | $ 1,222 | 1,222 | ||||
Exercise of stock options (in shares) | 34,714 | 34,714 | ||||
Exercise of stock options | $ 439 | $ 34 | 405 | |||
Employee Stock Purchase Plan stock issuance (in shares) | 8,512 | |||||
Employee Stock Purchase Plan stock issuance | 161 | $ 9 | 152 | |||
Restricted stock awards (in shares) | 9,500 | |||||
Restricted stock awards | 0 | $ 10 | (10) | |||
Restricted shares withheld for taxes (in shares) | (3,601) | |||||
Restricted shares withheld for taxes | (88) | $ (4) | (84) | |||
Restricted stock and dividend forfeiture (in shares) | (7,750) | |||||
Restricted stock and dividend forfeiture | $ (8) | 8 | ||||
Common stock shares redeemed (in shares) | (365,931) | |||||
Common stock shares redeemed | (8,291) | $ (366) | (7,925) | |||
Noncontrolling interest contributions | 5,659 | 5,659 | ||||
Cash dividend declared to common shareholders ($0.27, $0.33 and $0.24 per share) | (3,053) | (3,053) | ||||
Net income (loss) | 10,537 | 16,196 | (5,659) | |||
Other comprehensive income (loss) | $ 8,753 | 8,753 | ||||
BALANCE (in shares) at Dec. 31, 2019 | 11,206,254 | 11,206,254 | ||||
BALANCE at Dec. 31, 2019 | $ 223,753 | $ 11,206 | $ 167,006 | $ 40,472 | $ 5,069 | $ 0 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock issuance costs | $ 1,805 | ||
RETAINED EARNINGS | |||
Cash dividend declared to common shareholders, per share (in dollars per share) | $ 0.27 | $ 0.33 | $ 0.24 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | |||
Consolidated net income | $ 10,537 | $ 10,507 | $ 6,163 |
Reclassification of federal income tax rate change | 0 | 0 | (245) |
Adjustments to reconcile consolidated net income to net cash provided by (used in) operating activities | |||
Provision for loan losses | 1,211 | 1,035 | 1,316 |
Provision to reflect lower of cost or market value of mortgage loans held for sale | 0 | 0 | (160) |
Deferred income taxes | 398 | 380 | 504 |
(Gain) loss on disposal of premises and equipment | 0 | (13) | 52 |
Depreciation and amortization of premises and equipment | 1,996 | 1,697 | 1,017 |
Net amortization of securities | 3,051 | 3,182 | 2,030 |
Net realized gains on sales of securities | (1,451) | (43) | (59) |
Gains on mortgage loans sold, net | (4,905) | (4,418) | (3,675) |
Stock-based compensation expense | 1,222 | 923 | 616 |
Realization of gain on other real estate | (166) | (259) | (27) |
Provision for losses on other real estate | 98 | 0 | 0 |
Increase in cash surrender value of life insurance contracts | (1,119) | (1,186) | (836) |
Mortgage loans originated for resale | (179,331) | (141,783) | (157,220) |
Proceeds from sale of mortgage loans | 162,583 | 176,610 | 127,564 |
Other amortization (accretion), net | 2,503 | (756) | (377) |
Change in | |||
Accrued interest receivable | 1,103 | (1,305) | (1,958) |
Other assets | (1,198) | (372) | 4,371 |
Accrued interest payable | 959 | 326 | 198 |
Other liabilities | (1,606) | (2,260) | 403 |
TOTAL ADJUSTMENTS | (14,652) | 31,758 | (26,241) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (4,115) | 42,265 | (20,323) |
INVESTING ACTIVITIES | |||
Cash received from merger | 0 | 33,128 | 0 |
Activities in available for sale securities | |||
Purchases | (50,430) | (106,893) | (95,430) |
Sales | 85,895 | 100,737 | 18,688 |
Maturities, prepayments and calls | 12,807 | 12,987 | 6,763 |
Purchases (redemptions) of restricted equity securities | 411 | ||
Purchases (redemptions) of restricted equity securities | (2,190) | (641) | |
Loan originations and payments, net | (180,881) | (145,090) | (105,478) |
Purchase of buildings, leasehold improvements, and equipment | (1,339) | (4,342) | (1,766) |
Proceeds from sale of other real estate | 1,261 | 1,947 | 0 |
Purchase of life insurance contracts | 0 | 0 | (8,000) |
NET CASH USED IN INVESTING ACTIVITIES | (132,276) | (109,716) | (185,864) |
FINANCING ACTIVITIES | |||
Net change in deposits | 145,897 | 121,960 | 119,685 |
Net change in federal funds purchased | 0 | 0 | (3,671) |
Net change in advances from Federal Home Loan Bank | (46,707) | (39,195) | 64,514 |
Issuance of subordinate debentures, net of issuance costs | 59,198 | 0 | 0 |
Issuance of common stock, net | 600 | 398 | 24,032 |
Redemption of common stock | (8,379) | (6) | 0 |
Noncontrolling interest contributions received | 5,659 | 2,255 | 1,245 |
Cash dividends paid on common stock | (4,013) | (3,451) | (3,193) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 152,255 | 81,961 | 202,612 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 15,864 | 14,510 | (3,575) |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 35,178 | 20,668 | 24,243 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 51,042 | 35,178 | 20,668 |
Cash paid during the year for | |||
Interest | 22,421 | 14,638 | 5,473 |
Taxes | 1,303 | 1,400 | 1,750 |
Non-cash investing and financing activities | |||
Unrealized gain (loss) on securities available-for-sale | 13,842 | (6,925) | 5,380 |
Unrealized gain (loss) on derivatives | (1,992) | (690) | 47 |
Change in due to/from noncontrolling interest | 5,659 | 3,578 | 1,083 |
Foreclosures transferred from loans to other real estate | 943 | 1,060 | 0 |
Dividends declared, not paid | $ 76 | $ 1,036 | $ 542 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Reliant Bancorp, Inc. (f/k/a Commerce Union Bancshares, Inc.), is a Tennessee corporation and the holding company for and the sole shareholder of Reliant Bank. Reliant Bancorp is registered as a financial holding company under the Bank Holding Company Act of 1956 as amended ("Bank Holding Company Act"). Reliant Bank is a commercial bank chartered under Tennessee law and a member of the Federal Reserve System (the "Federal Reserve"). Reliant Bank, Reliant Bancorp's wholly-owned subsidiary, provides a full range of traditional banking products and services to corporate and consumer clients throughout Middle Tennessee and the Nashville-Davidson-Murfreesboro-Franklin, TN Metropolitan Statistical Area (the “Nashville MSA”) and Chattanooga, Tennessee. Reliant Bank operates banking centers in Cheatham, Davidson, Hamilton, Hickman, Maury, Montgomery, Robertson, Rutherford, Sumner, and Williamson counties, Tennessee. Additionally, Reliant Bank operates mortgage offices in Brentwood, Hendersonville, and Memphis, Tennessee, as well as two in Little Rock and two in Hot Springs, Arkansas. On January 1, 2020, Tennessee Community Bank Holdings, Inc., a community banking organization headquartered in Ashland City, Tennessee, was merged with and into the Company (See Note 27). Basis of Presentation The accounting and reporting policies of Reliant Bancorp, Inc. conform to US GAAP and to general practices within the banking industry. The following is a brief summary of the significant policies. The consolidated financial statements as of and for the periods presented include the accounts of Reliant Bancorp, the Bank, Community First Trups Holding Company (“TRUPS”), which is wholly owned by Reliant Bancorp, Reliant Investment Holdings, LLC ("Holdings"), which is 100% wholly owned by the Bank, and RMV, of which the Bank controls 51% of the governance rights (Reliant Bancorp, the Bank, Holdings, TRUPS, and RMV are collectively referred to herein as the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. As described in Note 22, Reliant Bancorp and Community First merged effective January 1, 2018. During 2011, the Bank and another entity organized RMV. Under the related operating agreement, the non-controlling member receives 70% of the profits of RMV, and the Bank receives 30% of the profits once the non-controlling member recovers its aggregate losses. The non-controlling member is responsible for 100% of RMV’s net losses. As of December 31, 2019, the cumulative losses to date totaled $13.4 million . RMV will have to generate net income of this amount before the Company will participate in future earnings. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Use of Estimates The preparation of financial statements in conformity with US GAAP, which requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to determination of the allowance for loan losses, the valuation of other real estate, the valuation of debt and equity securities, the valuation of deferred tax assets and fair values of financial instruments. Concentrations At December 31, 2019 and 2018 , the Company had significant credit exposures to borrowers in real estate. If this industry experiences another economic slowdown and, as a result, the borrowers in this industry are unable to meet the obligations of their existing loan agreements, earnings could be negatively impacted. The Company is concentrated in the middle Tennessee regional market and the operating results are impacted by the economic conditions of that area. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, deposits with other financial institutions with maturities less than 90 days, and federal funds sold. Generally, federal funds sold are purchased and sold for one-day periods. Net cash flows are reported for customer loan and deposit transactions, federal funds sold, and short-term Federal Home Loan Bank ("FHLB") borrowings. The Company maintains deposits in excess of the federal insurance amounts with other financial institutions. Management makes deposits only with financial institutions it considers financially sound. Federal funds sold of $52 and $371 at December 31, 2019 and 2018 , respectively, were invested in one financial institution. Such funds were unsecured and matured the next business day. Securities The Company classifies its securities in one of two categories: held to maturity ("HTM") and available for sale ("AFS"). HTM securities are those securities for which the Company has the ability and intent to hold until maturity. Securities are classified as AFS when they might be sold before maturity. The Company had no held to maturity securities at December 31, 2019 and 2018 , or in the three-year period ended December 31, 2019 . Interest income includes purchase premiums and discounts amortized or accreted over the life of the related security as an adjustment to the yield without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method including reclassification from other comprehensive income. When the fair value of a debt security has declined below the amortized cost at the measurement date, if an entity intends to sell a security or is more likely than not to sell the security before the recovery of the security’s cost basis, the entity must recognize the other-than-temporary impairment (“OTTI”) in earnings. For a debt security with a fair value below the amortized cost at the measurement date where it is more likely than not that an entity will not sell the security before the recovery of its cost basis, but an entity does not expect to recover the entire cost basis of the security, the security is classified as OTTI. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The related OTTI loss on the debt security will be recognized in earnings to the extent that the loss is due to the declining credit quality of the issuer, with the remaining impairment loss recognized in accumulated other comprehensive income. In estimating OTTI losses, management considers: the length of time and extent that fair value of the security has been less than the cost of the security, the financial condition and near term prospects of the issuer, cash flow, stress testing analysis on securities, when applicable, and the Company’s ability and intent to hold the security for a period sufficient to allow for any anticipated recovery in fair value. Loans-Held-for-Investment Loans-held-for-investment (LHFS) that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, deferred loan fees, and an allowance for loan losses (ALLL). Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level yield method without anticipating prepayments. This treatment does not materially differ from the level interest yield method. Past due status is determined based on the contractual terms of the note. The accrual of interest is discontinued when a loan becomes 90 days past due according to the contractual terms of the note unless it is well collateralized and in the process of collection, or when management believes, after considering economic and business conditions and collection efforts, that the principal or interest will not be collectible in the normal course of business. When a loan is placed on non-accrual status, previously accrued and uncollected interest is charged against interest income on loans. When full collection of the remaining book balance is uncertain, interest payments received are applied to the principal balance outstanding. In some cases, when the remaining book balance of the loan is deemed fully collectible, payments are treated as interest income on a cash basis. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The restructuring of a loan is considered a “troubled debt restructuring” if the borrower is experiencing financial difficulties and the Company has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. Allowance for Loan Loss The allowance for loan loss ("ALLL") is an estimate of future probable credit losses. Losses on loans-held-for-investment are charged against the ALLL when management believes the remaining balance due has become uncollectible. Subsequent recoveries, if any, are credited to the ALLL. Management estimates a general component to the ALLL based on historical loan loss experience and qualitative factors, which include, 1) the nature and volume of the portfolio, 2) current economic conditions (national and local), 3) changes in interest rates, 4) portfolio concentrations, 5) changes in the experience, ability, and depth of the lending function, and 6) levels of and trends in charged-off loans, recoveries, past-due loans and volume and severity of classified loans. A specific ALLL component is calculated for loans that meet the definition of impairment. A loan is considered impaired when management believes that principal and interest due on that loan will not be collected in accordance with the terms and conditions of the loan agreement. Once a loan is deemed to be impaired, management must calculate the potential loss for the specific loan based on one of three approved methodologies to estimate the expected recovery from secondary payment sources, which is then deducted from the book value of the loan asset to calculate the amount of specific reserve required, 1) fair value of collateral, less expected cost to sell, 2) discounted cash flows of the expected future loan payments, and 3) expected sale proceeds if loan was sold to another lender. Interest payments on impaired loans are typically applied to principal unless the principal amount is deemed fully collectible, in which case interest is recognized on a cash basis. When recognition of interest income on a cash basis is appropriate, the amount of income recognized is limited to what would have been accrued on the remaining principal balance at the contractual rate. Cash payments received over this limit, and not applied to reduce the loans remaining principal balance, are recorded as recoveries of prior charge-offs until these charge-offs have been fully recovered. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A loan is impaired when full payment under the loan terms is not expected. All classified loans and loans on non-accrual status are individually evaluated for impairment. Factors considered in determining if a loan is impaired include the borrower’s ability to repay amounts owed, collateral deficiencies, the risk rating of the loan and economic conditions affecting the borrower’s industry, among other things. Interest payments on impaired loans are typically applied to principal unless the principal amount is deemed fully collectible, in which case interest is recognized on a cash basis. When recognition of interest income on a cash basis is appropriate, the amount of income recognized is limited to what would have been accrued on the remaining principal balance at the contractual rate. Cash payments received over this limit, and not applied to reduce the loans remaining principal balance, are recorded as recoveries of prior charge-offs until these charge-offs have been fully recovered. Mortgage Loans Held for Sale Mortgage loans originated with the intent to sell to third party investors are classified as held for sale (LHFS). Such loans are carried at the lower of aggregate cost or market value, as determined by pricing on an individual loan basis. These loans are typically marketed to potential investors prior to closing the loan with the borrower. Net unrealized losses, if any, are recorded through a valuation allowance and charged to operations. The valuation allowance of $160 existing at January 1, 2017, was removed in the year ended December 31, 2017. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets or the terms of the related lease for leasehold improvements. The range of estimated useful lives for buildings is 30 to 40 years , for leasehold improvements is 3 to 25 years , which correlates with the applicable lease term, and for furniture, fixtures and equipment is 3 to 7 years . Gain or loss on items retired and otherwise disposed of is credited or charged to operations and the cost and related accumulated depreciation are removed from the asset and accumulated depreciation accounts. Expenditures and improvements of premises and equipment are capitalized and those for maintenance and repairs are charged to earnings as incurred. Restricted Equity Securities The Bank is a member of the Federal Home Loan Bank (“FHLB”) system and the Federal Reserve system and is required to hold stock in both entities. These investments are carried at cost, classified as restricted equity securities, and periodically evaluated for impairment based on ultimate recovery of par value. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Other Real Estate Real estate acquired in the settlement of loans is initially recorded at estimated fair value, less estimated cost to sell, if less than the carrying value of the loan when acquired. Based on periodic evaluations by management, the carrying values are reduced by a direct charge to earnings when they exceed net realizable value. Costs relating to the development and improvement of the property are capitalized up to fair value less cost to sell, while holding costs of the property are charged to expense in the period incurred. Cash Surrender Value of Life Insurance Contracts The Company is the owner and beneficiary of various life insurance policies on certain key employees. These policies are recorded at their cash surrender values. Impairment of Long-Term Assets Premises and equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are written down to fair value, with a corresponding charge to earnings. Goodwill Goodwill represents the excess of the purchase price over the fair value of assets and liabilities acquired in two previous business acquisitions and a branch acquisition treated as a business acquisition. Goodwill is evaluated for impairment at least annually and more frequently if events and circumstances indicate that the asset might be impaired. Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Derivatives At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company's intentions and belief as to the likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment ("fair value hedge"), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedge"), or (3) an instrument with no hedging designation ("stand-alone derivative"). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Derivatives, (Continued) The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivate is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. Stock Based Compensation Compensation cost recognized for stock options and restricted stock and unit awards issued to employees is based on the fair value of these awards at the date of grant. A binomial model is utilized to estimate the fair value of stock options. Compensation cost is recognized over the required service period, generally defined as the vesting period. Income Taxes Income tax expense or benefit is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. Although realization is not assured, management believes it is more likely than not that all of the deferred tax assets will be realized. Management performs an evaluation of all income tax positions taken or expected to be taken in the course of preparing the Company’s income tax returns to determine whether the income tax positions meet a “more likely than not” standard of being sustained under examination by the applicable taxing authorities. Management has performed its evaluation of all income tax positions taken on all open income tax returns and has determined that there were no positions taken that do not meet the “more likely than not” standard. Penalties and interest relating to income taxes are recognized in income tax expense. The Company files income tax returns in the U.S. federal jurisdiction and various states. The Company’s federal and states income tax returns for years prior to fiscal year 2017 are no longer open to examination. Earnings Per Share Earnings per share is computed by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding plus shares representing the dilutive effect of stock options, restricted stock awards and units, and employee stock purchase plan shares outstanding. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Retirement Plan The Company has a 401(k) retirement plan covering all employees who elect to participate, subject to certain eligibility requirements. The Plan allows employees to defer up to 100% of their salary, subject to regulatory limitations with the Company matching 100% of the first 6% contributed by the employee. The Company recognizes as expense the amount of matching contributions related to the 401(k) plan. Vesting within the plan is immediate for 100% of deferral and employer contributions. Comprehensive Income Comprehensive income consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on AFS securities and derivatives. These gains and losses are recognized as a separate component of stockholders’ equity. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the consolidated financial statements. Preferred Shares Preferred shares have rights that can be set when issued as determined by the Board of Directors. Dividend Restriction Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Company to shareholders. Advertising Costs Advertising costs are expensed as incurred and totaled $1,293 , $600 and $264 for the years ended December 31, 2019 , 2018 and 2017 , respectively. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Fair Value Measurements Financial accounting standards relating to fair value measurements establish a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2 Inputs to the valuation methodology include: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; • Inputs that are derived principally from or corroborated by the observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 Inputs to the valuation methodology are unobservable and reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. An asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques should maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value on a recurring basis: AFS Securities : The fair values of AFS securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The Company obtains fair value measurements for AFS securities from an independent pricing service. The fair value measurements consider observable data that may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, cash flows and reference data, including market research publications, among other things. Interest rate swaps: The fair values of interest rate swaps are determined based on discounted future cash flows. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Fair Value Measurements (Continued) Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Assets and liabilities measured at fair value on a nonrecurring basis include the following: Impaired loans : The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on the present value of expected payments using the loan’s effective rate as the discount rate or recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. Mortgage loans held for sale: Bid quotes are presently used for the fair value estimate of mortgage loans held for sale, while previously the Company used a model as developed and performed by an independent entity to value such loans. Other real estate owned: The fair value of other real estate owned is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company’s valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 5. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. Reclassifications Certain reclassifications have been made in the 2018 and 2017 consolidated financial statements to conform to the 2019 presentation. These reclassifications had no effect on total assets, total liabilities or the results of operations previously reported. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Recent Authoritative Accounting Guidance The following discusses new authoritative accounting guidance and the related impact on the Company. ASU 2014-09, “ Revenue from Contracts with Customers (Topic 606 )” implements a common revenue standard that clarifies the principles for recognizing revenue. The principle element of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 was originally going to be effective for the Company on January 1, 2018; however, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606 ) – Deferral of the Effective Date" which deferred the effective date of ASU 2014-09 by one year to January 1, 2019. Revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. The Company had no material impact in adopting ASU 2014-09 related to non-interest income (See Note 26). ASU 2016-01, “ Financial Instruments – Overall (Subtopic 825-10 ): Recognition and Measurement of Financial Assets and Financial Liabilities ." ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income |
Securities
Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The amortized cost and fair value of AFS securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) at December 31, 2019 and 2018 were as follows: December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U. S. Treasury and other U. S. government agencies $ 59 $ — $ — $ 59 State and municipal 186,283 10,413 (36 ) 196,660 Corporate bonds 7,880 97 (132 ) 7,845 Mortgage backed securities 38,126 296 (661 ) 37,761 Asset backed securities 18,374 — (406 ) 17,968 Total $ 250,722 $ 10,806 $ (1,235 ) $ 260,293 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U. S. Treasury and other U. S. government agencies $ 568 $ — $ (14 ) $ 554 State and municipal 232,589 879 (4,170 ) 229,298 Corporate bonds 3,130 — (113 ) 3,017 Mortgage backed securities 32,172 34 (248 ) 31,958 Asset backed securities 28,635 — (639 ) 27,996 Time deposits 3,500 — — 3,500 Total $ 300,594 $ 913 $ (5,184 ) $ 296,323 NOTE 2 - SECURITIES (CONTINUED) There were no HTM securities as of December 31, 2019 and 2018 . The amortized cost and estimated fair value of AFS securities at December 31, 2019 are presented below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Amortized Cost Estimated Fair Value Due within one year $ 999 $ 1,000 Due in one to five years 2,414 2,285 Due in five to ten years 10,301 10,834 Due after ten years 180,508 190,445 Mortgage backed securities 38,126 37,761 Asset backed securities 18,374 17,968 Total $ 250,722 $ 260,293 The following table shows available for sale AFS securities with unrealized losses and their estimated fair value aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position as of December 31, 2019 : Less than 12 months 12 months or more Total Estimated Fair Value Unrealized Loss Estimated Fair Value Unrealized Loss Estimated Fair Value Unrealized Loss State and municipal $ 1,960 $ 36 $ — $ — $ 1,960 $ 36 Corporate bonds — — 2,499 132 2,499 132 Mortgage backed securities 16,104 286 9,081 375 25,185 661 Asset backed securities — — 17,682 406 17,682 406 Total temporarily impaired $ 18,064 $ 322 $ 29,262 $ 913 $ 47,326 $ 1,235 NOTE 2 - SECURITIES (CONTINUED) The following table shows available for sale securities with unrealized losses and their estimated fair value aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position as of December 31, 2018 : Less than 12 months 12 months or more Total Estimated Fair Value Unrealized Loss Estimated Fair Value Unrealized Loss Estimated Fair Value Unrealized Loss U. S. Treasury and other U. S. government agencies $ — $ — $ 555 $ 14 $ 555 $ 14 State and municipal 118,580 2,263 47,223 1,907 165,803 4,170 Corporate bonds 2,526 105 492 8 3,018 113 Mortgage backed securities 17,015 99 5,397 149 22,412 248 Asset backed securities 20,351 383 7,255 256 27,606 639 Total temporarily impaired $ 158,472 $ 2,850 60,922 2,334 $ 219,394 $ 5,184 At December 31, 2019 , management had the intent and ability to hold all securities in a loss position for the foreseeable future, and the decline in fair value was largely due to changes in interest rates. The fair value is expected to recover as the securities approach their maturity date and/or market rates decline. There were 47 and 242 securities in an unrealized loss position as of December 31, 2019 and 2018 , respectively. During the years ended December 31, 2019 , 2018 and 2017 , gross realized gains on sales of securities were $1,810 , $82 and $97 , respectively, and gross realized losses were $359 , $39 and $38 , respectively. Securities pledged at December 31, 2019 and 2018 had a market value of $46,918 and $70,097 , respectively, and were pledged to collateralize FHLB advances, Federal Reserve advances and municipal deposits. At December 31, 2019 and 2018 , there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Loss | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Loss | LOANS AND ALLOWANCE FOR LOAN LOSS Loans at December 31, 2019 and 2018 were comprised as follows: December 31, 2019 December 31, 2018 Commercial, Industrial and Agricultural $ 245,515 $ 213,850 Real Estate 1-4 Family Residential 227,529 225,863 1-4 Family HELOC 96,228 88,112 Multi-family and Commercial 536,845 447,840 Construction, Land Development and Farmland 273,872 220,801 Consumer 16,855 20,495 Other 13,180 14,106 Total 1,410,024 1,231,067 Less Deferred loan fees (costs) 72 (9) Allowance for possible loan losses 12,578 10,892 Loans, net $ 1,397,374 $ 1,220,184 At December 31, 2019 and 2018 , loans are recorded net of purchase discounts of $2,909 and $4,525 , respectively. Activity in the ALLL by portfolio segment was as follows for the year ended December 31, 2019 : Commercial Industrial and Agricultural Multi-family and Commercial Construction Land Development and Farmland 1-4 Family Residential Real Estate 1-4 Family HELOC Consumer Other Total Beginning balance at December 31, 2018 $ 1,751 $ 4,429 $ 2,500 $ 1,333 $ 656 $ 184 $ 39 $ 10,892 Charge-offs (396 ) — (60 ) (29 ) — (50 ) (35 ) (570 ) Recoveries 393 65 — 225 12 51 299 1,045 Provision 781 791 209 (249 ) (44 ) (8 ) (269 ) 1,211 Ending balance at December 31, 2019 $ 2,529 $ 5,285 $ 2,649 $ 1,280 $ 624 $ 177 $ 34 $ 12,578 NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSS (CONTINUED) Activity in the ALLL by portfolio segment was as follows for the year ended December 31, 2018 : Commercial Industrial and Agricultural Multi-family and Commercial Construction Land Development and Farmland 1-4 Family Residential Real Estate 1-4 Family HELOC Consumer Other Total Beginning balance at December 31, 2017 $ 2,538 $ 3,166 $ 2,434 $ 773 $ 595 $ 183 $ 42 $ 9,731 Charge-offs (381 ) (76 ) (215 ) (36 ) (6 ) (26 ) (47 ) (787 ) Recoveries 590 221 44 12 10 34 2 913 Provision (996 ) 1,118 237 584 57 (7 ) 42 1,035 Ending balance at December 31, 2018 $ 1,751 $ 4,429 $ 2,500 $ 1,333 $ 656 $ 184 $ 39 $ 10,892 Activity in the ALLL by portfolio segment was as follows for the year ended December 31, 2017 : Commercial Industrial and Agricultural Multi-family and Commercial Construction Land Development and Farmland 1-4 Family Residential Real Estate 1-4 Family HELOC Consumer Other Total Beginning balance at December 31, 2016 $ 2,432 $ 2,737 $ 1,786 $ 1,178 $ 704 $ 208 $ 37 $ 9,082 Charge-offs (976 ) — (45 ) (14 ) — (36 ) — (1,071 ) Recoveries 378 — 5 — 19 2 — 404 Provision 704 429 688 (391 ) (128 ) 9 5 1,316 Ending balance at December 31, 2017 $ 2,538 $ 3,166 $ 2,434 $ 773 $ 595 $ 183 $ 42 $ 9,731 NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSS (CONTINUED) The ALLL and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019 was as follows: Commercial Industrial and Agricultural Multi-family and Commercial Construction Land Development and Farmland 1-4 Family Residential Real Estate 1-4 Family HELOC Consumer Other Total Allowance for loan losses Individually evaluated for impairment $ 755 $ — $ 17 $ — $ — $ — $ — $ 772 Acquired with credit impairment — — — — — — — — Collectively evaluated for impairment 1,774 5,285 2,632 1,280 624 177 34 11,806 Total $ 2,529 $ 5,285 $ 2,649 $ 1,280 $ 624 $ 177 $ 34 $ 12,578 Loans Individually evaluated for impairment $ 1,154 $ 2,396 $ 1,218 $ 1,120 $ 374 $ — $ — $ 6,262 Acquired with credit impairment — 215 813 195 — — — 1,223 Collectively evaluated for impairment 244,361 534,234 271,841 226,214 95,854 16,855 13,180 1,402,539 Total $ 245,515 $ 536,845 $ 273,872 $ 227,529 $ 96,228 $ 16,855 $ 13,180 $ 1,410,024 The ALLL and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2018 was as follows: Commercial Industrial and Agricultural Multi-family and Commercial Construction Land Development and Farmland 1-4 Family Residential Real Estate 1-4 Family HELOC Consumer Other Total Allowance for loan losses Individually evaluated for impairment $ 38 $ — $ 17 $ — $ — $ — $ — $ 55 Acquired with credit impairment — — — — — — — — Collectively evaluated for impairment 1,713 4,429 2,483 1,333 656 184 39 10,837 Total $ 1,751 $ 4,429 $ 2,500 $ 1,333 $ 656 $ 184 $ 39 $ 10,892 Loans Individually evaluated for impairment $ 978 $ 1,160 $ 1,780 $ 1,246 $ — $ 12 $ — $ 5,176 Acquired with credit impairment 40 232 1,751 262 — 11 — 2,296 Collectively evaluated for impairment 212,832 446,448 217,270 224,355 88,112 20,472 14,106 1,223,595 Total $ 213,850 $ 447,840 $ 220,801 $ 225,863 $ 88,112 $ 20,495 $ 14,106 $ 1,231,067 NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSS (CONTINUED) Risk characteristics relevant to each portfolio segment are as follows: Commercial and industrial: The commercial and industrial loan portfolio segment includes commercial and industrial loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases or other expansion projects. Collection risk in this portfolio is driven by the creditworthiness of underlying borrowers, particularly cash flow from customers’ business operations. Commercial and industrial loans are primarily made 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. Most commercial and industrial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Multi-family and commercial real estate: Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type. This diversity helps reduce the Company’s exposure to adverse economic events that affect any single market or industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. The Company also utilizes third-party experts to provide insight and guidance about economic conditions and trends affecting the market areas it serves. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner-occupied loans. Non-owner-occupied commercial real estate loans are loans secured by multifamily and commercial properties where the primary source of repayment is derived from rental income associated with the property (that is, loans for which 50 percent or more of the source of repayment comes from third party, nonaffiliated, rental income) or the proceeds of the sale, refinancing, or permanent financing of the property. These loans are made to finance income-producing properties such as apartment buildings, office and industrial buildings, and retail properties. Owner-occupied commercial real estate loans are loans where the primary source of repayment is the cash flow from the ongoing operations and business activities conducted by the party, or affiliate of the party, who owns the property. At December 31, 2019 , approximately 22% of the outstanding principal balance of the Company’s commercial real estate loan portfolio was secured by owner-occupied properties. Construction and land development: Loans for non-owner-occupied real estate construction or land development are generally repaid through cash flow related to the operation, sale or refinance of the property. The Company also finances construction loans for owner-occupied properties. A portion of the Company’s construction and land portfolio segment is comprised of loans secured by residential product types (residential land and single-family construction). With respect to construction loans to developers and builders that are secured by non-owner-occupied properties that the Company may originate from time to time, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. Construction and land development loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates, market sales activity, and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing. NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSS (CONTINUED) 1 - 4 family residential real estate: Residential real estate loans represent loans to consumers or investors to finance a residence. These loans are typically financed on 15 to 30 year amortization terms, but generally with shorter maturities of 5 to 15 years . Many of these loans are extended to borrowers to finance their primary or secondary residence. Loans to an investor secured by a 1-4 family residence will be repaid from either the rental income from the property or from the sale of the property. This loan segment also includes closed-end home equity loans that are secured by a first or second mortgage on the borrower’s residence. This allows customers to borrow against the equity in their home. Loans in this portfolio segment are underwritten and approved based on a number of credit quality criteria including limits on maximum Loan-to-Value (LTV), minimum credit scores, and maximum debt to income. Real estate market values as of the time the loan is made directly affect the amount of credit extended and, in addition, changes in these residential property values influence the depth of potential losses in this portfolio segment. 1 - 4 family HELOC: This loan segment includes open-end home equity loans that are secured by a first or second mortgage on the borrower’s residence. This allows customers to borrow against the equity in their home utilizing a revolving line of credit. These loans are underwritten and approved based on a number of credit quality criteria including limits on maximum LTV, minimum credit scores, and maximum debt to income. Real estate market values as of the time the loan is made directly affect the amount of credit extended and, in addition, changes in these residential property values influence the depth of potential losses in this portfolio segment. Because of the revolving nature of these loans as well as the fact that many represent second mortgages, this portfolio segment can contain more risk than the amortizing 1-4 family residential real estate loans. Consumer: The consumer loan portfolio segment includes non-real estate secured direct loans to consumers for household, family, and other personal expenditures. Consumer loans may be secured or unsecured and are usually structured with short or medium term maturities. These loans are underwritten and approved based on a number of consumer credit quality criteria including limits on maximum LTV on secured consumer loans, minimum credit scores, and maximum debt to income. Many traditional forms of consumer installment credit have standard monthly payments and fixed repayment schedules of one to five years . These loans are made with either fixed or variable rates that are based on specific indices. Installment loans fill a variety of needs, such as financing the purchase of an automobile, a boat, a recreational vehicle, or other large personal items, or for consolidating debt. These loans may be unsecured or secured by an assignment of title, as in an automobile loan, or by money in a bank account. In addition to consumer installment loans, this portfolio segment also includes secured and unsecured personal lines of credit as well as overdraft protection lines. Loans in this portfolio segment are sensitive to unemployment and other key consumer economic measures. Non-accrual loans by class of loan were as follows: December 31, 2019 December 31, 2018 Commercial, Industrial and Agricultural $ 572 $ 279 Multi-family and Commercial Real Estate 1,276 — Construction, Land Development and Farmland 555 1,294 1-4 Family Residential Real Estate 1,344 2,556 1-4 Family HELOC 296 — Consumer 28 65 Total $ 4,071 $ 4,194 Performing non-accrual loans totaled $1,332 and $2,010 at December 31, 2019 and 2018 , respectively. NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSS (CONTINUED) Individually impaired loans by class of loans were as follows at December 31, 2019 : Unpaid Recorded Investment with no Allowance Recorded Recorded Investment with Allowance Recorded Total Recorded Related Commercial, Industrial and Agricultural $ 1,154 $ — $ 1,154 $ 1,154 $ 755 Multi-family and Commercial Real Estate 2,624 2,611 — 2,611 — Construction, Land Development and Farmland 2,348 1,860 171 2,031 17 1-4 Family Residential Real Estate 1,419 1,315 — 1,315 — 1-4 Family HELOC 376 374 — 374 — Total $ 7,921 $ 6,160 $ 1,325 $ 7,485 $ 772 Individually impaired loans by class of loans were as follows at December 31, 2018 : Unpaid Recorded Investment with no Allowance Recorded Recorded Investment with Allowance Recorded Total Recorded Related Commercial, Industrial and Agricultural $ 1,247 $ 765 $ 253 $ 1,018 $ 38 Multi-family and Commercial Real Estate 1,670 1,392 — 1,392 — Construction, Land Development and Farmland 3,920 3,359 172 3,531 17 1-4 Family Residential Real Estate 2,243 1,508 — 1,508 — Consumer 29 23 — 23 — Total $ 9,109 $ 7,047 $ 425 $ 7,472 $ 55 NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSS (CONTINUED) Individually impaired loans by class of loans were as follows at December 31, 2017 : Unpaid Recorded Investment with no Allowance Recorded Recorded Investment with Allowance Recorded Total Recorded Related Commercial, Industrial and Agricultural $ 4,398 $ 2,959 $ 966 $ 3,925 $ 608 Multi-family and Commercial Real Estate 3,427 3,078 — 3,078 — Construction, Land Development and Farmland 5,317 3,249 1,987 5,236 59 1-4 Family Residential Real Estate 2,857 2,159 — 2,159 — 1-4 Family HELOC 90 90 — 90 — Total $ 16,089 $ 11,535 $ 2,953 $ 14,488 $ 667 Interest income recognized on impaired loans totaled $490 , $583 and $703 for the years ended December 31, 2019 , 2018 and 2017 , respectively. The average recorded investment in impaired loans for the years ended December 31, 2019 , 2018 and 2017 , was as follows: 2019 2018 2017 Commercial, Industrial and Agricultural $ 1,767 $ 2,333 $ 5,225 Multi-family and Commercial Real Estate 2,580 2,366 4,138 Construction, Land Development and Farmland 2,462 4,571 4,502 1-4 Family Residential Real Estate 1,686 2,468 2,212 1-4 Family HELOC 208 72 784 Consumer 2 62 — Total $ 8,705 $ 11,872 $ 16,861 The Company utilizes a risk grading system to monitor the credit quality of the Company’s commercial loan portfolio which consists of commercial and industrial, commercial real estate and construction loans. Loans are graded on a scale of 1 to 9. Grades 1 - 5 are pass credits, grade 6 is special mention, grade 7 is substandard, grade 8 is doubtful and grade 9 is loss. A description of the risk grades are as follows: Grade 1 - Minimal Risk (Pass) This grade includes loans to borrowers with a strong financial position and history of profits and cash flows sufficient to service the debt. These borrowers have well defined sources of primary/secondary repayment, conservatively leveraged balance sheets and the ability to access a wide range of financing alternatives. Collateral securing these loans is negotiable, of sufficient value and in possession of the Company. Risk of loss is unlikely. NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSS (CONTINUED) Grade 2 - High Quality (Pass) This grade includes loans to borrowers with a strong financial condition reflecting dependable net profits and cash flows. The borrower has verifiable liquid net worth providing above average asset protection. An identifiable market exits for the collateral. Risk of loss is unlikely. Grade 3 - Above Average (Pass) This grade includes loans to borrowers with a balance sheet that reflects a comfortable degree of leverage and liquidity. Borrowers are profitable and have a sustained record of servicing debt. An identifiable market exits for the collateral, but liquidation could take up to one year. Risk of loss is unlikely. Grade 4 - Average (Pass) This grade includes loans to borrowers with a financial condition that is satisfactory and comparable to industry standards. The borrower has verifiable net worth, providing over time, average asset protection. Borrower cash flows are sufficient to satisfy debt service requirements. Risk of loss is below average. Grade 5 - Acceptable (Management Attention) (Pass) This grade includes loans to borrowers whose loans are performing, but sources of repayment are not documented by the current credit analysis. There are some declining trends in margins, ratios and/or cash flow. Guarantor(s) have strong net worth(s), but assets may be concentrated in real estate or other illiquid investments. Risk of loss is average. Grade 6 - Special Mention Special mention assets have potential weaknesses that may, if not checked or corrected, weaken the asset or inadequately protect the Company’s position at some future date. These assets pose elevated risk, but their weakness does not yet justify a substandard classification. Borrowers may be experiencing adverse operating trends (declining revenues or margins) or an ill proportioned balance sheet (e.g., increasing inventory without an increase in sales, high leverage, tight liquidity). Adverse economic or market conditions, such as interest rate increases or the entry of a new competitor, may also support a special mention rating. Nonfinancial reasons for rating a credit exposure special mention include management problems, pending litigation, an ineffective loan agreement or other material structural weakness, and any other significant deviation from prudent lending practices. The special mention rating is designed to identify a specific level of risk and concern about asset quality . Although a special mention asset has a higher probability of default than a pass asset, its default is not imminent. Grade 7 - Substandard A ‘‘substandard’’ extension of credit is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Extensions of credit so classified should have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard credits, does not have to exist in individual extensions of credit classified as substandard. Substandard assets have a high probability of payment default, or they have other well-defined weaknesses. They require supervision that is more intensive by Company management. Substandard assets are generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity, or marginal capitalization. Repayment may depend on collateral or other credit risk mitigation. NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSS (CONTINUED) Grade 8 - Doubtful An extension of credit classified ‘‘doubtful’’ has all the weaknesses inherent in one classified substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors that may work to the advantage of and strengthen the credit, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceedings, capital injection, perfecting liens on additional collateral, or refinancing plans. Generally, the doubtful classification should not extend for a long period of time because in most cases the pending factors or events that warranted the doubtful classification should be resolved either positively or negatively in a reasonable period of time. Grade 9 - Loss Extensions of credit classified ‘‘loss’’ are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the credit has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. Amounts classified loss should be promptly charged off. The Company will not attempt long term recoveries while the credit remains on the Company’s books. Losses should be taken in the period in which they surface as uncollectible. With loss assets, the underlying borrowers are often in bankruptcy, have formally suspended debt repayments, or have otherwise ceased normal business operations. Once an asset is classified loss, there is little prospect of collecting either its principal or interest. Consumer purpose loans are initially assigned a default loan grade of 99 (Pass) and are risk graded (Grade 6, 7, or 8) according to delinquency status when applicable. Credit quality indicators by class of loan were as follows at December 31, 2019 : Pass Special Mention Substandard Total Commercial, Industrial and Agricultural $ 241,089 $ 2,382 $ 2,044 $ 245,515 1-4 Family Residential Real Estate 225,809 — 1,720 227,529 1-4 Family HELOC 95,678 — 550 96,228 Multi-family and Commercial Real Estate 531,055 1,519 4,271 536,845 Construction, Land Development and Farmland 272,440 — 1,432 273,872 Consumer 16,634 — 221 16,855 Other 13,180 — — 13,180 Total $ 1,395,885 $ 3,901 $ 10,238 $ 1,410,024 NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSS (CONTINUED) Credit quality indicators by class of loan were as follows at December 31, 2018 : Pass Special Mention Substandard Total Commercial, Industrial and Agricultural $ 212,761 $ — $ 1,089 $ 213,850 1-4 Family Residential Real Estate 221,546 1,125 3,192 225,863 1-4 Family HELOC 88,112 — — 88,112 Multi-family and Commercial Real Estate 442,127 3,135 2,578 447,840 Construction, Land Development and Farmland 218,053 579 2,169 220,801 Consumer 20,236 — 259 20,495 Other 14,106 — — 14,106 Total $ 1,216,941 $ 4,839 $ 9,287 $ 1,231,067 Past due loan balances by class of loan were as follows at December 31, 2019 : 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Loans Commercial, Industrial and Agricultural $ 79 $ 4 $ 572 $ 655 $ 244,860 $ 245,515 1-4 Family Residential Real Estate 501 236 229 966 226,563 227,529 1-4 Family HELOC — — 296 296 95,932 96,228 Multi-family and Commercial Real Estate 485 — 558 1,043 535,802 536,845 Construction, Land Development and Farmland 255 — 339 594 273,278 273,872 Consumer 38 26 64 128 16,727 16,855 Other — — — — 13,180 13,180 Total $ 1,358 $ 266 $ 2,058 $ 3,682 $ 1,406,342 $ 1,410,024 NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSS (CONTINUED) Past due loan balances by class of loan were as follows at December 31, 2018 : 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Loans Commercial, Industrial and Agricultural $ 22 $ 153 $ 279 $ 454 $ 213,396 $ 213,850 1-4 Family Residential Real Estate 1,104 335 1,203 2,642 223,221 225,863 1-4 Family HELOC 50 — — 50 88,062 88,112 Multi-family and Commercial Real Estate — 104 — 104 447,736 447,840 Construction, Land Development and Farmland 214 — 171 385 220,416 220,801 Consumer 11 30 46 87 20,408 20,495 Other — — — — 14,106 14,106 Total $ 1,401 $ 622 $ 1,699 $ 3,722 $ 1,227,345 $ 1,231,067 At December 31, 2019, there were no loans past due 90 days or more and still accruing interest. At December 31, 2018, there were loans of $6 past due 90 days or more and still accruing interest. There were no troubled debt restructurings occurring during the year ended December 31, 2019 . Troubled debt restructurings occurring during the year ended December 31, 2018 by class of loan were as follows: Number of Contracts Pre-Modification Outstanding Recorded Investments Post-Modification Outstanding Recorded Investments 1-4 Family Residential Estate 1 $ 1,254 $ 1,254 Multi-family and Commercial Real Estate 1 $ 661 $ 585 Total 2 $ 1,915 $ 1,839 Troubled debt restructurings occurring during the year ended December 31, 2017 by class of loan were as follows: Number of Contracts Pre-Modification Outstanding Recorded Investments Post-Modification Outstanding Recorded Investments Construction, Land Development and Farmland 2 $ 2,110 $ 1,640 Total 2 $ 2,110 $ 1,640 NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSS (CONTINUED) During the year ended December 21, 2018, one modification occurred that consisted of an interest only monthly payment restructure and had no effect on the allowance for loan losses or interested income. The other modification was a restructure of five loans, including purchased credit impaired loans, in which a charge off occurred of $76 . The 1-4 Family Residential loan with a related balance of $1,254 was paid during 2018. During the year ended December 31, 2017, two loans were modified in a troubled debt restructuring. One modification consisted of a partial charge off totaling $470 , and a payment restructure with the modification having no effect on interest income for the remaining balance of $308 at December 31, 2017. The other modification consisted of a temporary suspension of required monthly payments of a loan with a balance of $108 at December 31, 2017 and had no effect on the allowance for loan losses or interest income. There were no charge offs resulting from the modification during the year ended December 31, 2017 . The modification consisted of changes in the amortization terms of the loans and payment modifications. The modification had no effect on the allowance for loan losses and interest income was not significantly affected. There were no subsequent defaults on loans modified in troubled debt restructurings during the years ended December 31, 2019 , 2018 and 2017 . The Company has acquired loans for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that not all contractually required payments would be collected. The carrying amount of those loans was as follows at December 31, 2019 and 2018 , respectively: 2019 2018 Commercial, Industrial and Agricultural $ — $ 63 Multi-family and Commercial Real Estate 217 233 Construction, Land Development and Farmland 1,021 1,958 1-4 Family Residential Real Estate 231 324 1-4 Family HELOC — — Consumer — 18 Total outstanding balance 1,469 2,596 Less remaining purchase discount 246 300 Allowance for loan losses — — Carrying amount, net of allowance $ 1,223 $ 2,296 During the year ended December 31, 2019, a loan with a non-accretable purchase discount of $25 was collected resulting in the recognition of the discount in interest income. During the year ended December 31, 2018, loans with non-accretable purchase discounts totaling $146 were paid in full resulting in the recognition of the discounts in interest income. During the year ended December 31, 2017, a loan with non-accretable purchase discount totaling $354 was paid in full resulting in the recognition of the discounts in interest income. Activity related to the accretable portion of the purchase discount on loans acquired with deteriorated credit quality is as follows for the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 Balance at January 1, $ 110 $ — $ 87 New loans purchased — 260 — Loan charge offs (12 ) (104 ) — Accretion income — (46 ) (87 ) Balance at December 31, $ 98 $ 110 $ — NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSS (CONTINUED) The Company decreased the allowance for loan losses on purchased credit impaired loans by $4 and $2 , during the years ended December 31, 2018 and 2017 , respectively. In the normal course of business, the Company will enter into various credit arrangements with its executive officers, directors and their affiliates. These arrangements generally take the form of commercial lines of credit, personal lines of credit, mortgage loans, term loans or revolving arrangements secured by personal residences. An analysis of the activity with respect to loans to related parties for the years ended December 31, 2019 , 2018 and 2017 , is as follows: 2019 2018 2017 Balance - January 1, $ 7,394 $ 8,581 $ 11,935 New loans during the year (3,136 ) 919 4,356 Repayments during the year 3,281 (2,106 ) (7,710 ) Balance - December 31, $ 7,539 $ 7,394 $ 8,581 During the three-year period ended December 31, 2019 , none of these loans were restructured or charged off. |
Other Real Estate
Other Real Estate | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
OTHER REAL ESTATE | OTHER REAL ESTATE Other real estate activity for the years ended December 31, 2019 , 2018 and 2017 , was as follows: 2019 2018 2017 Beginning balance $ 1,000 $ — $ — Loans acquired in merger — 1,650 — Loans transferred to other real estate 943 1,060 — Allowance to lower of cost or market (98 ) — — Sales of other real estate (1,095 ) (1,710 ) — End of year $ 750 $ 1,000 $ — Activity in the valuation allowance for the years ended December 31, 2019 , 2018 and 2017 , was as follows: 2019 2018 2017 Beginning balance $ — $ — $ — Provisions/(recoveries) charged/(credited) to expense 98 — — Reductions from sales of other real estate — — — Direct write-downs — — — End of year $ 98 $ — $ — Expenses related to foreclosed assets for the years ended December 31, 2019 , 2018 and 2017 , include: 2019 2018 2017 Net gain on sales $ (166 ) $ (259 ) $ (27 ) Provision for unrealized losses 98 — — Operating expenses, net of rental income 44 50 7 Total $ (24 ) $ (209 ) $ (20 ) In connection with the 2018 merger with Community First, the Company acquired three real estate parcels. The Company valued the properties at their estimated fair values less costs to sale which totaled $1,650 . |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUES OF ASSETS AND LIABILITIES | FAIR VALUES OF ASSETS AND LIABILITIES The following table sets forth the Company’s major categories of assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, as of December 31, 2019 and 2018 : Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2019 Assets U. S. Treasury and other U. S. government agencies $ 59 $ — $ 59 $ — State and municipal 196,660 — 196,660 — Corporate bonds 7,845 — 7,845 — Mortgage backed securities 37,761 — 37,761 — Asset backed securities 17,968 — 17,968 — Interest rate swap 688 — 688 — Liabilities Interest rate swap $ 3,396 $ — $ 3,396 $ — December 31, 2018 Assets U. S. Treasury and other U. S. government agencies $ 554 $ — $ 554 $ — State and municipal 229,298 — 229,298 — Corporate bonds 3,017 — 3,017 — Mortgage backed securities 31,958 — 31,958 — Asset backed securities 27,996 — 27,996 — Time deposits 3,500 3,500 — — Interest rate swap 467 — 467 — Liabilities Interest rate swap $ 1,183 $ — $ 1,183 $ — NOTE 5 - FAIR VALUES OF ASSETS AND LIABILITIES (CONTINUED) The following table sets forth the Company’s major categories of assets and liabilities measured at fair value on a nonrecurring basis, by level within the fair value hierarchy, as of December 31, 2019 and 2018 : Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2019 Assets Impaired loans $ 553 $ — $ — $ 553 Other real estate owned 750 — — 750 December 31, 2018 Assets Impaired loans $ 370 $ — $ — $ 370 The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which we have utilized Level 3 inputs to determine fair value at December 31, 2019 and 2018 : Valuation Techniques (1) Significant Unobservable Inputs Range (Weighted Average) Impaired loans Appraisal Estimated costs to sell 10% Other real estate owned Appraisal Estimated costs to sell 10% (1) The fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent. Estimated cash flows change and appraised values of the assets or collateral underlying the loans will be sensitive to changes. NOTE 5 - FAIR VALUES OF ASSETS AND LIABILITIES (CONTINUED) Carrying amounts and estimated fair values of financial instruments, by level within the fair value hierarchy, at December 31, 2019 were as follows: Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and due from banks $ 50,990 $ 50,990 $ 50,990 $ — $ — Federal funds sold 52 52 — 52 — Loans, net 1,397,374 1,383,719 — — 1,383,719 Mortgage loans held for sale 37,476 38,379 — 38,379 — Accrued interest receivable 7,111 7,111 — 7,111 — Restricted equity securities 11,279 11,279 — 11,279 — Financial liabilities Deposits $ 1,583,789 $ 1,582,117 $ — $ — $ 1,582,117 Accrued interest payable 2,022 2,022 — 2,022 — Subordinate debentures 70,883 71,454 — — 71,454 Federal Home Loan Bank advances 10,737 10,755 — — 10,755 Carrying amounts and estimated fair values of financial instruments, by level within the fair value hierarchy, at December 31, 2018 were as follows: Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and due from banks $ 34,807 $ 34,807 $ 34,807 $ — $ — Federal funds sold 371 371 — 371 — Loans, net 1,220,184 1,206,574 — — 1,206,574 Mortgage loans held for sale 15,823 15,871 — 15,871 — Accrued interest receivable 8,214 8,214 — 8,214 — Restricted equity securities 11,690 11,690 — 11,690 — Financial liabilities Deposits $ 1,437,903 $ 1,434,652 $ — $ — $ 1,434,652 Accrued interest payable 1,063 1,063 — 1,063 — Subordinate debentures 11,603 11,522 — — 11,522 Federal Home Loan Bank advances 57,498 57,434 — — 57,434 NOTE 5 - FAIR VALUES OF ASSETS AND LIABILITIES (CONTINUED) The methods and assumptions used to estimate fair value are described as follows: Carrying amount is the estimated fair value for cash and cash equivalents, accrued interest receivable and payable, restricted equity securities, demand deposits, and variable rate loans or deposits that reprice frequently and fully. For fixed rate loans or deposits and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. Fair value of debt is based on current rates for similar financing. The fair value of off-balance-sheet items is not considered material. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT The detail of premises and equipment at December 31, 2019 and 2018 is as follows: 2019 2018 Land $ 6,058 $ 6,049 Buildings 9,020 8,951 Construction in progress 371 — Leasehold improvements 7,891 7,551 Furniture, fixtures and equipment 10,930 10,311 34,270 32,862 Less: accumulated depreciation and amortization (12,894 ) (10,829 ) $ 21,376 $ 22,033 Depreciation and amortization expense was $1,996 , $1,697 and $1,017 for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Restricted Equity Securities
Restricted Equity Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
RESTRICTED EQUITY SECURITIES | RESTRICTED EQUITY SECURITIES The Company owned the following restricted equity securities as of December 31, 2019 and 2018 : 2019 2018 Federal Reserve Bank $ 5,754 $ 5,735 Federal Home Loan Bank 5,525 5,955 Total $ 11,279 $ 11,690 |
Goodwill and Core Deposit Intan
Goodwill and Core Deposit Intangibles | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND CORE DEPOSIT INTANGIBLES | GOODWILL AND CORE DEPOSIT INTANGIBLES The following presents the balances as of December 31, 2019 , and 2018 , of intangible assets acquired in business acquisitions: 2019 2018 Goodwill $ 43,642 $ 43,642 Amortized intangible assets: Core deposit intangibles $ 10,111 $ 10,111 Less accumulated amortization (2,841 ) (1,892 ) $ 7,270 $ 8,219 Amortization expense was $949 , $949 and $302 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Estimated future amortization expense by year as of December 31, 2019 is as follows: 2020 $ 949 2021 949 2022 949 2023 865 2024 695 Thereafter 2,863 Total $ 7,270 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
DEPOSITS | DEPOSITS Contractual maturities of time deposit accounts for the next five years at December 31, 2019 are as follows: 2020 $ 656,654 2021 69,639 2022 15,213 2023 10,049 2024 10,719 Total $ 762,274 The aggregate amount of overdrafts reclassified to loans receivable was $381 and $415 at December 31, 2019 and 2018 , respectively. At December 31, 2019 and 2018 , time deposits in excess of $250 totaled $238,004 and $330,736 respectively. Deposits from principal officers, directors, and their affiliates at December 31, 2019 and 2018 were $14,600 and $8,376 , respectively. |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
FEDERAL HOME LOAN BANK ADVANCES | FEDERAL HOME LOAN BANK ADVANCES At December 31, advances from the FHLB were as follows: 2019 2018 Maturities January 2020 through March 2024, fixed rates ranging from 1.22% to 2.86% ($7,000 is due in the year ending December 31, 2020) $ 10,737 $ 57,498 Each advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. At December 31, 2019 , there was $3,737 of advances amortizing on a monthly basis. The weighted average rate of the total borrowings at December 31, 2019 and 2018 was 1.76% and 2.42% , respectively. The advances were collateralized by $657,608 and $597,646 of real estate loans at December 31, 2019 and 2018 , respectively. The Company’s additional borrowing capacity was $159,379 and $96,082 at December 31, 2019 and 2018 , respectively. Required future principal payments on FHLB advances are as follows: 2020 $ 7,000 2021 323 2022 557 2023 2,342 2024 515 Total $ 10,737 |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2019 | |
Brokers and Dealers [Abstract] | |
SUBORDINATED DEBENTURES | SUBORDINATED DEBENTURES In 2002, $3,000 of floating rate mandatory redeemable subordinated debentures were issued through a special purpose entity as part of a private offering of trust preferred securities. The securities mature on December 31, 2032; however, the Company can currently repay the securities at any time without penalty, subject to approval from the Federal Reserve Bank ("FRB"). The subordinated debentures bear interest at a floating rate equal to the New York Prime rate plus fifty basis points. The interest rate on the subordinated debentures as of December 31, 2019 was 5.50% . The Company has the right from time to time, without causing an event of default, to defer payments of interest on the debentures for up to twenty consecutive quarterly periods. These debentures are presented in liabilities on the balance sheet but count as Tier 1 capital (with certain limitations applicable) for regulatory capital purposes. In 2005, $5,000 of floating rate mandatory redeemable subordinated debentures were issued through a special purpose entity as part of a pool offering of trust preferred securities. These securities mature on September 15, 2035, however, the Company can currently repay the securities at any time without penalty, subject to approval from the FRB. The subordinated debentures bear interest at a floating rate equal to the three-month London Interbank Offered Rate, ("LIBOR") plus 1.50% . The interest rate on the subordinated debentures as of December 31, 2019 was 3.39% . The Company has the right from time to time, without causing an event of default, to defer payments of interest on the debentures for up to twenty consecutive quarterly periods. These debentures are presented in liabilities on the balance sheet but count as Tier 1 capital for regulatory purposes. NOTE 11 - SUBORDINATED DEBENTURES (CONTINUED) In 2007, $15,000 of redeemable subordinated debentures were issued through a special purpose entity as part of a pooled offering of trust preferred securities. These subordinated debentures mature in 2037; however, the Company can currently repay the securities at any time without penalty, subject to approval from the FRB. The interest rate on the subordinated debentures was 7.96% until December 15, 2012, and thereafter the subordinated debentures bear interest at a floating rate equal to the three-month LIBOR plus 3.0% . At December 31, 2019 , the interest rate was 4.89% . The Company has the right from time to time, without causing an event of default, to defer payments of interest on the junior debentures for up to twenty consecutive quarterly periods. These debentures are presented in liabilities on the balance sheet. On December 20, 2016, TRUPS acquired $10,000 in face amount of trust preferred capital securities issued by Community First Statutory Trust II. These capital securities were purchased from an unaffiliated investor and remain outstanding; however, the securities and the underlying subordinated debentures are eliminated in the Company's consolidated financial statements. In 2019, the Company issued $60,000 of subordinated debentures, which mature in 2029. The Company may, at its option, redeem the subordinated notes (i) in whole or in part, on any interest payment date on or after December 15, 2024 and (ii) in whole but not in part, at any time upon the occurrence of a Tier 2 capital event, tax event or an investment company event. The interest rate on the subordinated debentures is 5.125% until December 15, 2024, and thereafter the subordinated debentures bear interest at a floating rate equal to the three-month SOFR plus 3.765% . See Note 27. The portion of the subordinated debentures qualifying as Tier 1 capital is limited to 25% of total Tier 1 capital. Subordinated debentures in excess of the Tier 1 capital limitation generally qualify as Tier 2 capital. Under the Dodd-Frank Act and the federal regulations issued implementing Basel III, these subordinated debentures will, subject to the limitations described in the preceding sentence, continue to qualify as Tier 1 capital. As of December 31, 2019 , the Company was current in the payment of all interest payments due on its subordinated debentures. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
BENEFIT PLANS | BENEFIT PLANS 401(k) Plan The Company has a 401(k) benefit plan that allows employee contributions up to 100% of their compensation, subject to regulatory limitations. The Company matches 100% of the first 6% contributed by the employee. The Company recognized an expense for the years ended December 31, 2019 , 2018 and 2017 of $1,033 , $805 , and $450 , respectively. Employee Stock Purchase Plan In 2018, the Company adopted an employee stock purchase plan (“ESPP”) under which employees, through payroll deductions, are able to purchase shares of Company common stock. The purchase price is 85% of the lesser of the closing price of the common stock on the first trading date of the relevant offering period or the last trading day of the relevant offering period. The maximum number of shares issuable during any offering period is 200,000 shares and a participant may not purchase more than 2,500 shares during any offering period (and, in any event, no more than $25 worth of common stock in any calendar year). For the year ended December 31, 2019 , 8,512 shares were issued related to the ESPP. In 2018, there were no shares of common stock issued under the ESPP. As of December 31, 2019 , there were 191,488 shares available for issuance under the ESPP. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On December 22, 2017, comprehensive tax reform legislation known as the Tax Cuts and Jobs Act (the “Tax Reform Act”) was signed into law. The Tax Reform Act amends the Internal Revenue Code to reduce U.S. tax rates and modify policies, credits and deductions for individuals and businesses. NOTE 13 - INCOME TAXES (CONTINUED) The Tax Reform Act permanently reduces the U.S. federal corporate income tax rate from 35% to 21% , effective for tax years beginning after 2017. GAAP requires an adjustment to deferred taxes as a result of a change in the corporate tax rate in the period that the change is enacted, with the change recorded to the current year tax provision. Accordingly, the Company has remeasured its deferred tax assets and liabilities at the new tax rate and recorded a one-time noncash tax expense of $620 to deferred income taxes for the year ended December 31, 2017. This expense resulted in the Company’s higher effective tax rate for that year. The income tax expense consists of the following for the years ended December 31: 2019 2018 2017 Income tax expense Current $ 1,731 $ 992 $ 1,438 Deferred 398 380 504 Total provision for income tax expense $ 2,129 $ 1,372 $ 1,942 A reconciliation of the income tax expense for the years ended December 31, 2019 , 2018 and 2017 from the “expected” tax expense computed by applying the statutory federal income tax rate of 21 percent for 2019 and 2018 and 34 percent for 2017 to income before income taxes is as follows: 2019 2018 2017 Computed “expected” tax expense $ 2,660 21 % $ 2,495 21 % $ 2,756 34 % Increase (decrease) in tax expense resulting from: Federal income tax rate change — — % — — % 620 8 % State tax expense, net of federal tax effect 637 5 % 551 5 % 331 4 % Tax exempt interest (1,374 ) (11 )% (1,422 ) (12 )% (1,452 ) (18 )% Disallowed interest expense 1 — % 290 2 % 193 2 % Stock compensation 23 — % 19 — % 33 — % Cash surrender value of life insurance contracts (235 ) (2 )% (249 ) (2 )% (285 ) (4 )% Excess tax benefit from stock compensation (37 ) — % (88 ) (1 )% (184 ) (2 )% Nondeductible merger expenses 155 1 % 47 — % 173 2 % Federal and state tax credits (999 ) (8 )% (1,102 ) (9 )% (667 ) (8 )% Subsidiary disregarded for federal taxes 1,189 9 % 763 6 % 347 4 % Others as a group 109 1 % 68 1 % 77 1 % Total income tax expense $ 2,129 16 % $ 1,372 11 % $ 1,942 23 % The Company files a separate Federal tax return for the operations of the mortgage banking and banking operations. The taxable income or losses of the mortgage banking operations are included in the respective returns of the Company and non-controlling members for Federal purposes. The Company’s income tax filings from the years ending December 31, 2016 to present remain open to examination by tax jurisdictions. NOTE 13 - INCOME TAXES (CONTINUED) Significant components of deferred tax assets as of December 31, 2019 and 2018 are as follows: 2019 2018 Organizational and start-up costs $ 38 $ 68 Core deposit intangible (1,817 ) (2,046 ) Acquisition fair value adjustments 414 817 Allowance for loan losses 2,933 2,577 Loan fees (costs) (19 ) (1 ) Other real estate 26 577 Premises and equipment (627 ) (791 ) Unrealized (gain) loss on available for sale securities (2,501 ) 1,115 Unrealized loss on derivatives 708 187 Non-accrual loans 271 280 Acquired net operating losses 2,711 2,966 Acquired tax credits net of basis adjustments 1,005 1,005 Deferred compensation 310 443 Other 481 231 Total $ 3,933 $ 7,428 State $ (187 ) $ 688 Federal 4,120 6,740 Net deferred tax asset $ 3,933 $ 7,428 In assessing the future realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management determined that as of December 31, 2019 , it was more likely than not that all deferred tax assets would be realized. At December 31, 2018, related to the merger with Community First, Inc., the Company has a federal net operating loss carryforward of $12,911 , which begins expiring in 2031 and the Company is limited to utilizing $1,215 annually. The Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 on December 22, 2017, which provides for a one-year measurement period that allows businesses time to evaluate the financial statement implications of the Tax Reform Act. Companies are required to disclose in financial filings whether their accounting for the income tax effects of the Tax Reform Act is complete, incomplete but reasonably estimated, or incomplete with no estimate provided. The measurement period allows businesses to gather the information necessary to prepare and analyze the income tax accounting effects of the Tax Reform Act on financial statements issued during the measurement period. During the measurement period, an entity may need to reflect adjustments to provisional amounts previously recorded after obtaining, preparing, or analyzing additional information about facts and circumstances that existed as of the enactment date that, if known, would have affected the income tax effects initially reported as provisional amounts. Such adjustments to provisional amounts included in an entity’s financial statements during the measurement period would be included in income from continuing operations as an adjustment to income tax expense or benefit in the reporting period the amounts are determined. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company has two primary stock-based compensation plans as described below. Total compensation cost that has been charged against income for those plans was $1,222 , $923 and $616 for 2019 , 2018 and 2017 , respectively. The excess income tax benefit was $37 , $88 and $184 for 2019 , 2018 and 2017 , respectively. Stock Option Plan In 2006, the Board of Directors and shareholders of the Bank approved the Commerce Union Bank Stock Option Plan (the “Plan”). The Plan provides for the granting of stock options and authorizes the issuance of common stock upon the exercise of such options, for up to 625,000 shares of common stock to employees and organizers of the Company. As part of reorganization, all Commerce Union Bank options were replaced with Commerce Union Bancshares, Inc. options with no change in terms. On March 10, 2015, the shareholders of the Company approved the Commerce Union Bancshares, Inc. Amended and Restated Stock Option Plan that permits the grant of awards of up to 1,250,000 shares of the Company common stock in the form of stock options. As part of the merger with Reliant Bank, all outstanding stock options of Reliant Bank were converted to stock options of Commerce Union Bancshares, Inc. under this plan. Under the Stock Option Plan, stock option awards may be granted in the form of incentive stock options or non-statutory stock options, and are generally exercisable for up to ten years following the date such option awards are granted. Exercise prices of incentive stock options must be equal to or greater than the fair market value of the common stock on the grant date. A summary of the activity in the stock option plan for the periods ended December 31, 2019 , 2018 and 2017 , is as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2017 241,541 $ 12.96 5.41 years $ 2,065 Granted 15,500 23.55 Exercised (72,080 ) 11.42 Forfeited or expired (14,200 ) 14.06 Outstanding at December 31, 2017 170,761 14.48 5.73 years 1,905 Exercisable at December 31, 2017 95,861 13.00 3.75 years 1,212 Vested and anticipated vesting shares as of December 31, 2017 168,514 14.45 5.73 years 1,848 Granted 25,500 28.00 Exercised (30,001 ) 13.27 Forfeited or expired (7,000 ) 18.20 Outstanding at December 31, 2018 159,260 16.72 6.04 years 1,146 Exercisable at December 31, 2018 88,060 13.45 4.32 years 847 Vested and anticipated vesting shares as of December 31, 2018 157,124 16.67 6.01 years 1,002 Granted 27,500 23.28 Exercised (34,714 ) 12.79 Forfeited or expired (2,753 ) 19.35 Outstanding at December 31, 2019 149,293 18.81 6.68 years 700 Exercisable at December 31, 2019 74,693 15.31 5.18 years 553 Vested and anticipated vesting shares as of December 31, 2019 147,055 $ 18.76 6.64 years $ 570 NOTE 14 - STOCK-BASED COMPENSATION (CONTINUED) A summary of changes in the Company's non-vested options for the years ended December 31, 2019 , 2018 and 2017 are as follows: Shares Weighted Average Grant-Date Fair Value Non-vested options at January 1, 2017 96,600 $ 3.36 Granted 15,500 6.66 Vested (23,000 ) 6.95 Forfeited (14,200 ) 3.18 Non-vested options at December 31, 2017 74,900 4.14 Granted 25,500 7.10 Vested (22,200 ) 6.69 Forfeited (7,000 ) 4.77 Non-vested options at December 31, 2018 71,200 5.28 Granted 27,500 6.97 Vested (21,347 ) 5.97 Forfeited (2,753 ) 4.89 Non-vested options at December 31, 2019 74,600 $ 6.08 Information related to the stock option plan during each year follows and assumes a 3% forfeiture rate: 2019 2018 2017 Intrinsic value of options exercised $ 320 $ 344 $ 827 Cash received from option exercises 439 398 823 Tax benefit realized from option exercises 13 88 184 Weighted average fair value of options granted 6.97 7.10 6.66 As of December 31, 2019 , there was $377 of total unrecognized compensation cost related to nonvested stock options granted under the Plan. The cost is expected to be recognized over a weighted-average period of 1.79 years. The fair value of options granted during 2019 and 2018 was determined using the following assumptions as of the grant date, resulting in an estimated fair value per option of $6.97 and $6.89 , respectively. 2019 2018 2017 Risk-free interest rate 2.08% — 2.39% 2.95% 2.30% — 2.45% Expected term (in years) 6.5 years 6.5 years 6.5 years Expected stock price volatility 31.10% — 32.80% 23.50% 24% — 29.90% Dividend yield 1.55% — 1.59% 1.14% 0.98% — 1.02% NOTE 14 - STOCK-BASED COMPENSATION (CONTINUED) Equity Incentive Plan On June 18, 2015, the shareholders of Commerce Union approved the Commerce Union Bancshares, Inc. 2015 Equity Incentive Plan, which provides for the issuance of up to 900,000 shares of common stock in the form of stock options, restricted stock grants or grants for performance-based compensation. The following table shows the activity related to non-vested restricted stock and units for the years ended December 2019 , 2018 and 2017 : Restricted Stock Units Restricted Stock Units Weighted Average Grant-Date Shares Weighted Average Grant-Date Outstanding at January 1, 2017 — $ — 48,465 $ 14.36 Granted — — 50,050 23.65 Vested — — (13,016 ) 14.21 Forfeited — — (3,000 ) 14.18 Outstanding at December 31, 2017 — — 82,499 20.03 Granted — — 51,710 27.55 Vested — — (21,999 ) 15.95 Forfeited — — (1,550 ) 25.17 Outstanding at December 31, 2018 — — 110,660 24.28 Granted 47,750 23.30 9,500 22.01 Vested — — (21,450 ) 19.31 Forfeited — — (7,750 ) 23.25 Outstanding at December 31, 2019 47,750 $ 23.30 90,960 $ 25.31 The shares vest over periods ranging from one month to three years . As of December 31, 2019 , there was $1,756 of unrecognized compensation cost related to non-vested restricted share awards. The cost is expected to be charged over a weighted-average period of 1 year for the restricted stock share awards and 1.3 years for the restricted stock units. In 2019 , 2018 and 2017 , the fair value of share awards vested totaled $605 , $439 and $368 . |
Capital
Capital | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
CAPITAL | CAPITAL The Company and the Bank are subject to regulatory capital requirements administered by the federal and state banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Management believes that as of December 31, 2019 and 2018 the Company and the Bank met all capital adequacy requirements to which they are subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At December 31, 2019 and 2018 , the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the category. Actual and required capital amounts and ratios are presented below as of December 31, 2019 and 2018 . Actual Regulatory Capital Minimal Capital Adequacy Minimum Required Capital Including Capital Conservation Buffer To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Company Tier I leverage $ 176,748 9.74 % N/A — % $ 72,586 4.000 % $ 90,733 5.00 % Common equity Tier 1 165,063 10.55 % N/A — % 109,520 7.000 % 101,698 6.50 % Tier I risk-based capital 176,748 11.30 % N/A — % 132,952 8.500 % 125,131 8.00 % Total risk-based capital 249,751 15.97 % N/A — % 164,207 10.500 % 156,388 10.00 % Bank Tier I leverage $ 186,734 10.30 % N/A — % $ 72,518 4.000 % $ 90,648 5.00 % Common equity Tier 1 186,734 11.95 % N/A — % 109,384 7.000 % 101,571 6.50 % Tier I risk-based capital 186,734 11.95 % N/A — % 132,823 8.500 % 125,010 8.00 % Total risk-based capital 199,737 12.79 % N/A — % 163,975 10.500 % 156,167 10.00 % December 31, 2018 Company Tier I leverage $ 168,876 10.38 % $ 65,077 4.00 % $ 65,077 4.000 % $ 81,347 5.00 % Common equity Tier 1 157,273 11.59 % 61,064 4.50 % 86,507 6.375 % 88,203 6.50 % Tier I risk-based capital 168,876 12.44 % 81,451 6.00 % 106,905 7.875 % 108,602 8.00 % Total risk-based capital 180,193 13.28 % 108,550 8.00 % 133,991 9.875 % 135,688 10.00 % Bank Tier I leverage $ 165,308 10.17 % $ 65,018 4.00 % $ 65,018 4.000 % $ 81,272 5.00 % Common equity Tier 1 165,308 12.19 % 61,024 4.50 % 86,451 6.375 % 88,146 6.50 % Tier I risk-based capital 165,308 12.19 % 81,366 6.00 % 106,792 7.875 % 108,488 8.00 % Total risk-based capital 176,625 13.02 % 108,525 8.00 % 133,961 9.875 % 135,657 10.00 % NOTE 15 - CAPITAL (CONTINUED) In July 2013, the Bank’s regulators adopted revised regulatory capital requirements known as “Basel III”, which became effective January 1, 2015. Required capital ratios applicable to the Bank under these guidelines are presented in the preceding table. The new requirements also established a "capital conservation buffer" of 2.5% that was phased in over four years. If capital levels fall below the minimum requirement, the Bank will be subject to restrictions related dividend payments, share repurchases, and certain employee bonuses. On December 4, 2018, the Company authorized a stock repurchase plan pursuant to which the Company may purchase up to $12 million of shares of the Company’s outstanding common stock, par value $1.00 per share. Stock repurchases under the plan will be made from time to time in the open market or privately negotiated transactions, or otherwise, at the discretion of management of the Company and in accordance with applicable legal requirements. The timing and amount of share repurchases under the plan will depend on a number of factors, including the Company’s stock price performance, ongoing capital planning considerations, general market conditions, and applicable legal requirements. As of December 31, 2019 , the Company has repurchased $8,291 of Company shares. The stock repurchase plan does not obligate the Company to repurchase any dollar amount or number of shares, and the plan may be extended, modified, amended, suspended, or discontinued at any time. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company has federal funds lines at other financial institutions with availability totaling $88,200 at December 31, 2019 , and 2018 . At December 31, 2019 and 2018 , the Company did no t have outstanding balances for these federal funds lines. The Company also has an unsecured line of credit at CDC Deposits Network with availability of $20,000 . The Company did no t have a balance outstanding related to this line at December 31, 2019 or 2018 .The Company also may access borrowings utilizing the Federal Reserve bank discount window of $5,780 and $11,166 at December 31, 2019 and 2018 , respectively. There were no funds advanced from the discount window at December 31, 2019 or 2018 . At December 31, 2019 and 2018 , the Company has $285,654 and $310,454 in standby letters of credit with the Federal Home Loan Bank pledged to secure municipal deposits. At December 31, 2019 , the Company has employment agreements with certain executive officers. Upon the occurrence of an “Event of Termination” as defined by the agreements, the Company has an obligation to pay each of the executive officers as defined in the agreements. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES A summary of the Company’s leased facilities (other than month-to-month agreements) follows: Base Lease Renewal Escalation Property Description (In Tennessee unless noted) Expiration Date Terms Clause 1736 Carothers Parkway, Brentwood February 28, 2025 15 years None 6005 Nolensville Road, Nashville July 31. 2021 — 3% annually 5109 Peter Taylor Park Drive, Brentwood July 31, 2021 — None 101 Creekstone Blvd., Franklin April 1, 2026 10 years None 101 Creekstone Blvd., Franklin January 31, 2022 — None 101 Creekstone Blvd., Franklin April 1, 2026 10 years 1% annually 105 Continental Place, Brentwood December 31, 2020 — 3% annually 633 Chestnut St., Chattanooga October 31, 2023 — 3% annually 633 Chestnut St., Chattanooga October 31, 2028 10 years Clause 6100 Tower Circle, Franklin December 31, 2027 — None 1835 E. Northfield Blvd., Murfreesboro September 30, 2027 5 years 3% annually 1412 Trotwood Ave., Columbia December 31, 2022 — None 4108 Hillsboro Pike, Nashville November 30, 2021 15 years None 711 E. Main Street, Hendersonville September 30, 2022 — None 376 S. Perkins Extended Memphis March 31, 2022 — None 308 Main Street, Crossett, Arkansas October 1, 2022 — None 1398 Desoto Boulevard, Hot Springs Village, Arkansas July 31, 2021 — None 9101 N. Rodney Parham Road, Little Rock, Arkansas February 28, 2021 — None 1401 Malvern Avenue, Hot Springs, Arkansas October 31, 2020 — None 51111111 John F. Kennedy Boulevard, North Little Rock, Arkansas July 31, 2020 — None The Company has classified all leases as operating lease agreements for office space, copiers, and an automobile. Future minimum rental payments required under the terms of the non-cancellable leases are as follows: Year Ending December 31, 2020 $ 2,369 2021 2,474 2022 2,117 2023 1,743 2024 1,692 Thereafter 4,512 Total $ 14,907 Total rent expense under the leases amounted to $2,723 , $2,536 and $2,055 , respectively, during the years ended December 31, 2019 , 2018 and 2017 . |
Financial Instruments with Off-
Financial Instruments with Off-Balance-Sheet Risk | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection lines, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk of credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. The contractual amounts of financial instruments with off-balance-sheet risk at December 31, 2019 and 2018 were as follows: 2019 2018 Unused lines of credit Fixed $ 27,309 $ 44,053 Variable 308,446 209,898 Standby letters of credit 17,132 16,545 Total $ 352,887 $ 270,496 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and other terms of the individual interest rate swap agreements. Interest Rate Swaps Designated as Cash Flow Hedges Interest rate swaps with notional amounts totaling $110,000 and $60,000 as of December 31, 2019 and 2018 , respectively, were designated as cash flow hedges of time deposits, Federal Home Loan Bank borrowings and subordinated debentures which are fully effective. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swaps is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining terms of the swap agreements. NOTE 19 - DERIVATIVES (CONTINUED) Interest Rate Swaps Designated as Cash Flow Hedges, (Continued) Summary information related to the interest rate swaps designated as cash flow hedges for the years ended December 31, 2019 and 2018 is as follows: 2019 2018 Notional amounts $ 110,000 $ 60,000 Weighted average pay rates 2.428 % 3.340 % Weighted average receive rates 2.114 % 2.860 % Weighted average maturity 3.84 years 4.47 years Unrealized losses $ 2,078 $ 1,153 Cash Flow Hedges The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Operations relating to the cash flow derivative instruments for the years ended: Amount of Gain (Loss) Recognized in OCI Amount of Gain (Loss) Reclassified from OCI to Interest Income Amount of Gain (Loss) Recognized in Other Non-Interest Income (Ineffective Portion) December 31, 2017 Interest rate contracts $ — $ — $ — December 31, 2018 Interest rate contracts (1,153 ) — — December 31, 2019 Interest rate contracts $ (2,078 ) $ — $ — The following table reflects the cash flow hedges included in the Consolidated Balance Sheets as of December 31, 2019 and 2018 : 2019 2018 Notional Amount Fair Value Notional Amount Fair Value Included in other assets: Total included in other assets $ — $ — $ — $ — Included in other liabilities: Interest rate swaps related to subordinate debentures $ 10,000 $ 439 $ 10,000 $ 174 Interest rate swaps related to Time Deposits 100,000 1,639 — — Federal Home Loan Bank borrowings — — 50,000 979 Total included in other liabilities $ 110,000 $ 2,078 $ 60,000 $ 1,153 NOTE 19 - DERIVATIVES (CONTINUED) Fair Value Hedges The following table reflects the fair value hedges included in the Consolidated Statements of Operations as of December 31: Interest rate contracts Location 2019 2018 2017 Change in fair value on interest rate swaps hedging investments Interest income $ (1,067 ) $ 462 $ 47 The following table reflects the fair value hedges included in the Consolidated Balance Sheets as of December 31: 2019 2018 Notional Amount Fair Value Notional Amount Fair Value Included in other assets: Interest rate swaps related to investments $ — $ — $ 16,902 $ 467 Total included in other assets $ — $ — $ 16,902 $ 467 Included in other liabilities: Interest rate swaps related to investments $ 19,605 $ 630 $ 4,203 $ 30 Total included in other liabilities $ 19,605 $ 630 $ 4,203 $ 30 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following is a summary of the components comprising basic and diluted earnings per common share of stock (EPS) for the years ended December 31, 2019, 2018 and 2017: Year Ended 2019 2018 2017 Basic EPS Computation Net income attributable to common shareholders $ 16,196 $ 14,085 $ 7,246 Weighted average common shares outstanding 11,212,127 11,389,122 8,151,792 Basic earnings per common share $ 1.44 $ 1.24 $ 0.89 Diluted EPS Computation Net income attributable to common shareholders $ 16,196 $ 14,085 $ 7,246 Weighted average common shares outstanding 11,212,127 11,389,122 8,151,792 Dilutive effect of stock options and restricted shares 69,135 79,667 87,809 Adjusted weighted average common shares outstanding 11,281,262 11,468,789 8,239,601 Diluted earnings per common share $ 1.44 $ 1.23 $ 0.88 Stock options for common stock totaling 60,500 , 62,910 and 10,500 were not considered in computing diluted earnings per common share for 2019, 2018 and 2017, respectively, because they were antidilutive. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company has two reportable business segments: retail banking and residential mortgage banking. Segment information is derived from the internal reporting system utilized by management. Revenues and expenses for segments reflect those, which can be specifically identified and have been assigned based on internally developed allocation methods. Financial results have been presented, to the extent practicable, as if each segment operated on a stand-alone basis. Retail Banking provides deposit and lending services to consumer and business customers within our primary geographic markets. Our customers are serviced through branch locations, ATMs, online banking, and mobile banking. Residential Mortgage Banking originates traditional first lien residential mortgage loans and first lien home equity lines of credit throughout the United States. The traditional first lien residential mortgage loans are typically underwritten to government agency standards and sold to third party secondary market mortgage investors. The home equity lines of credit are typically underwritten to participating banks or other investor group standards. NOTE 21 - SEGMENT REPORTING (CONTINUED) The following tables present summarized results of operations for the Company’s business segments: Year Ended December 31, 2019 Retail Banking Residential Mortgage Banking Elimination Entries Consolidated Net interest income $ 55,252 $ 553 $ — $ 55,805 Provision for loan losses 1,211 — — 1,211 Noninterest income 7,059 5,086 (181 ) 11,964 Noninterest expense 42,382 11,510 — 53,892 Income tax expense (benefit) 2,522 (393 ) — 2,129 Net income (loss) 16,196 (5,478 ) (181 ) 10,537 Noncontrolling interest in net loss of subsidiary — 5,478 181 5,659 Net income attributable to common shareholders $ 16,196 $ — $ — $ 16,196 Year Ended December 31, 2018 Retail Banking Residential Mortgage Banking Elimination Entries Consolidated Net interest income $ 53,008 $ 821 $ — $ 53,829 Provision for loan losses 1,035 — — 1,035 Noninterest income 5,232 4,595 (181 ) 9,646 Noninterest expense 41,512 9,049 — 50,561 Income tax expense (benefit) 1,608 (236 ) — 1,372 Net income 14,085 (3,397 ) (181 ) 10,507 Noncontrolling interest in net income of subsidiary — 3,397 181 3,578 Net income attributable to common shareholders $ 14,085 $ — $ — $ 14,085 Year Ended December 31, 2017 Retail Banking Residential Mortgage Banking Elimination Entries Consolidated Net interest income $ 33,761 $ 726 $ — $ 34,487 Provision for loan losses 1,316 — — 1,316 Noninterest income 2,333 3,805 (128 ) 6,010 Noninterest expense 25,524 5,552 — 31,076 Income tax expense (benefit) 2,008 (66 ) — 1,942 Net income 7,246 (955 ) (128 ) 6,163 Noncontrolling interest in net income of subsidiary — 955 128 1,083 Net income attributable to common shareholders $ 7,246 $ — $ — $ 7,246 |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | BUSINESS COMBINATION On January 1, 2018, pursuant to the Agreement and Plan of Merger, dated August 22, 2017, by and among Reliant Bancorp, Inc., Community First Inc., Pioneer Merger Sub, Inc., and Community First Bank & Trust, Community First, Inc. merged with and into the Reliant Bancorp, Inc. Immediately following the merger, Community First Bank & Trust merged with and into Reliant Bank, with Reliant Bank surviving. Pioneer Merger Sub, Inc. was formed to effect the merger and no longer exists. Pursuant to the merger agreement, each outstanding share of Community First, Inc. common stock (except for excluded shares and dissenting shares) was converted into and cancelled in exchange for the right to receive 0.481 shares of Reliant Bancorp, Inc. common stock, together with cash in lieu of any fractional shares. This business combination results in expanded and more diversified market area for the Company. The following table details the financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed and goodwill recognized: Calculation of Purchase Price Shares of Community First, Inc. common stock outstanding as of January 1, 2018 5,025,884 Exchange ratio for Reliant Bancorp, Inc. common stock 0.481 Share conversion 2,417,450 Reliant Bancorp, Inc. common stock shares issued 2,416,444 Reliant Bancorp, Inc. share price at December 29, 2017 $ 25.64 Value of Reliant Bancorp, Inc. common stock shares issued $ 61,958 Value of fractional shares $ 25 Estimated fair value of Community First, Inc. $ 61,983 NOTE 22 - BUSINESS COMBINATION (CONTINUED) Allocation of Purchase Price Total consideration above $ 61,983 Fair value of assets acquired and liabilities assumed Cash and cash equivalents (33,128 ) Time deposits in other financial institutions (23,309 ) Investment securities available for sale (69,078 ) Loans, net of unearned income (313,040 ) Mortgage loans held for sale, net (910 ) Accrued interest receivable (1,165 ) Premises and equipment (9,585 ) Restricted equity securities (1,726 ) Cash surrender value of life insurance contracts (10,664 ) Other real estate owned (1,650 ) Deferred tax asset, net (4,885 ) Core deposit intangible (7,888 ) Other assets (1,795 ) Deposits—noninterest-bearing 80,395 Deposits—interest-bearing 352,100 Other borrowings 11,522 Payables and other liabilities 5,061 Net liabilities assumed (net assets acquired) (29,745 ) Goodwill $ 32,238 During 2018, as part of the system integration of Community First, Inc., the Company determined minor adjustments were appropriate to reduce other assets by $93 and increase payables and other liabilities by $85 effective as of the acquisition date. Pro forma data for the year ended December 31, 2017 , in the table below presents information as if the merger occurred at the beginning of the year. Net interest income $ 51,031 Net income attributable to common shareholders $ 6,387 Earnings per share - basic $ 0.60 Earnings per share - diluted $ 0.60 Supplemental pro forma earnings in the table above includes, net of tax, $564 in pro forma adjustments for the year ended December 31, 2017. Supplemental pro forma earnings in the above table for the year ended December 31, 2017 includes $5,478 of nonrecurring costs with a related tax benefit of $536 from prior historical results. NOTE 22 - BUSINESS COMBINATION (CONTINUED) Loans acquired in connection with a business combination are recorded at fair value, since any credit deterioration evident in the loans is included in the determination of the acquisition date fair values. No ALLL is recorded for such acquired loans because all loans are recorded at fair value at merger date. Impaired purchased loans are accounted for under ASC 310-30, in which an ALLL subsequent to the date of acquisition is established by re-estimating expected cash flows on these loans, with any decline in expected cash flows due to a credit triggering impairment recorded as purchased credit impairment (PCI). The amount is the excess of the loan’s carrying value over the present value of projected future cash flows, discounted at the current accounting yield of the loan or the fair value of collateral (less estimated costs to sell) for collateral dependent loans. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be susceptible to significant change. While the determination of specific cash flows involves estimates, each estimate is unique to the individual loan, and none is individually significant. For non-purchased credit-impaired loans acquired in a merger and that are accounted for under ASC 310-20, the historical loss estimates are based on the historical losses experienced by Reliant Bank for loans with similar characteristics as those acquired other than purchased credit-impaired loans. We establish an ALLL provision for these loans only when the calculated amount exceeds the remaining credit mark established at acquisition. |
Quarterly Financial Results (Un
Quarterly Financial Results (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL RESULTS (UNAUDITED) | QUARTERLY FINANCIAL RESULTS (UNAUDITED) The following is a summary of consolidated quarterly financial results for the year ended December 31, 2019 : First Second Third Fourth Interest income $ 18,843 $ 19,692 $ 20,211 $ 20,439 Net interest income 13,461 13,813 14,064 14,467 Consolidated net income 2,281 2,684 2,614 2,958 Noncontrolling interest in net loss of subsidiary 1,543 1,555 1,386 1,175 Net income attributable to common shareholders 3,824 4,239 4,000 4,133 Basic earnings per share $ 0.34 $ 0.38 $ 0.36 $ 0.37 Diluted earnings per share $ 0.33 $ 0.38 $ 0.36 $ 0.37 The following is a summary of consolidated quarterly financial results for the year ended December 31, 2018 : First Second Third Fourth Interest income $ 16,362 $ 16,830 $ 17,570 $ 18,463 Net interest income 13,382 13,404 13,466 13,577 Consolidated net income 3,277 1,202 3,240 2,788 Noncontrolling interest in net loss of subsidiary 464 937 842 1,335 Net income attributable to common shareholders 3,741 2,139 4,082 4,123 Basic earnings per share $ 0.33 $ 0.19 $ 0.36 $ 0.36 Diluted earnings per share $ 0.33 $ 0.19 $ 0.36 $ 0.36 The following is a summary of consolidated quarterly financial results for the year ended December 31, 2017 : First Second Third Fourth Interest income $ 8,973 $ 9,704 $ 10,627 $ 10,854 Net interest income 7,971 8,503 9,096 8,917 Consolidated net income 1,559 1,794 1,840 970 Noncontrolling interest in net loss of subsidiary 499 393 6 185 Net income attributable to common shareholders 2,058 2,187 1,846 1,155 Basic earnings per share $ 0.27 $ 0.28 $ 0.23 $ 0.13 Diluted earnings per share $ 0.26 $ 0.28 $ 0.22 $ 0.13 |
Mortgage Operations
Mortgage Operations | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
MORTGAGE OPERATIONS | MORTGAGE OPERATIONS Reliant Mortgage Ventures, LLC ("RMV") was organized on November 15, 2011 as a joint venture between VHC Fund 1, LLC (VHC) and Legacy Reliant Bank to offer mortgage banking services within the Legacy Reliant Bank's market footprint. The Bank controls 51% of RMV's governance rights and 30% of RMV's income rights. VHC Fund 1, LLC was controlled by an immediate family member of a previous member of the Company’s board of directors through March 2019. Under the related operating agreement, the non-controlling member receives 70% of the profits of the Venture, and the Company receives 30% of the profits once the non-controlling member recovers its cumulative losses. The non-controlling member is responsible for 100% of the mortgage venture’s operational and credit losses. The income and loss is included in the consolidated results of operations. The portion of the income and loss attributable to the non-controlling member ( 100% for 2019 , 2018 and 2017 ) are included in non-controlling interest in net loss of subsidiary on the accompanying consolidated statements of operations. At December 31, 2019 and 2018 , the Venture had a payable balance to the Company of $1,484 for each date. Direct costs incurred by the Company attributable to the mortgage operations are allocated to the Venture as well as rent, personnel and core processing. As of December 31, 2019 , the cumulative losses to date of the Venture totaled $13,409 . The Venture will have to generate net income of this amount before the Company will participate in future earnings. During 2019, RMV entered into correspondent lending by purchasing non-qualified mortgage loans from other financial institutions and selling those loans to another, larger financial institution. |
Parent Company Condensed Financ
Parent Company Condensed Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | PARENT COMPANY CONDENSED FINANCIAL INFORMATION The following tables present parent company condensed financial statements for Reliant Bancorp, Inc.: CONDENSED BALANCE SHEET DECEMBER 31, 2019 2018 ASSETS Cash and cash equivalents $ 46,997 $ 1,985 Investment in subsidiaries 255,049 225,446 Other assets 2,851 3,447 Total assets $ 304,897 $ 230,878 LIABILITIES AND SHAREHOLDERS' EQUITY Dividend payable $ 76 $ 1,036 Accrued expenses and other liabilities 735 406 Subordinate debentures 80,333 21,022 Shareholders' equity 223,753 208,414 Total liabilities and shareholders' equity $ 304,897 $ 230,878 NOTE 25 - PARENT COMPANY CONDENSED FINANCIAL INFORMATION (CONTINUED) The following tables present parent company condensed financial statements for Reliant Bancorp, Inc.: CONDENSED STATEMENT OF INCOME YEARS ENDED DECEMBER 31, 2019 2018 2017 Dividends from subsidiaries $ 6,800 $ 7,521 $ 2,141 Interest expense 1,520 1,277 — Other expense 3,619 4,775 2,920 Income before income tax and undistributed income from subsidiaries 1,661 1,469 (779 ) Income tax expense (benefit) (1,123 ) (1,537 ) (922 ) Equity in undistributed income from subsidiaries 13,412 11,079 7,103 Net income attributable to common shareholders $ 16,196 $ 14,085 $ 7,246 CONDENSED STATEMENT OF CASH FLOWS YEARS ENDED DECEMBER 31, 2019 2018 2017 Cash flows from operating activities Net income attributable to common shareholders $ 16,196 $ 14,085 $ 7,246 Reclassification of federal income tax rate change — — (245 ) Adjustments: Equity in undistributed income from subsidiaries (13,412 ) (11,079 ) (7,103 ) Accretion related to subordinated debentures 113 969 — Change in other assets 596 (1,333 ) 790 Change in other liabilities 130 (230 ) 595 Net cash from operating activities 3,623 2,412 1,283 Cash flows from investing activities Investment in subsidiary (6,017 ) — (21,195 ) Net cash used in investing activities (6,017 ) — (21,195 ) Cash flows from financing activities Issuance of subordinated debentures, net of issuance costs 59,198 — — Dividends paid (4,013 ) (3,451 ) (3,193 ) Redemption of common stock (8,379 ) (6 ) — Proceeds from equity issuances, net 600 1,321 24,648 Net cash from (used in) financing activities 47,406 (2,136 ) 21,455 Net change in cash and cash equivalents 45,012 276 1,543 Beginning cash and cash equivalents 1,985 1,709 166 Ending cash and cash equivalents $ 46,997 $ 1,985 $ 1,709 |
Contract Revenue
Contract Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
CONTRACT REVENUE | CONTRACT REVENUE The Company does not consider revenue from its contracts subject to ASC 606 to be significant due to the scope exceptions of the standard. The revenue of the Company from contracts with customers that is within the scope of ASC 606 is presented in non-interest income and includes the following: Credit card interchange fees arise from card holder transactions and are a percentage of each transaction. These fees are earned and recognized concurrently with the transaction processing. During the years ending December 31, 2019 , 2018 and 2017 , the Company recognized credit card interchange fees of $136 , $65 and $9 , respectively. Investment brokerage fees arise from a contract with an independent third-party service provider. The Company receives monthly commissions from the third party service provider based on mutual customer activity. The Company is only in the role of an agent in arranging the relationship between the mutual customer and the third- party service provider. During the years ending December 31, 2019 , 2018 and 2017 , the Company recognized investment brokerage fees of $49 , $99 and $119 , respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Effective January 1, 2020, the Company completed the acquisition of Tennessee Community Bank Holdings, Inc., a Tennessee corporation (“TCB Holdings”), pursuant to the Agreement and Plan of Merger, dated September 16, 2019 (the “TCB Holdings Agreement”), by and among the Company, TCB Holdings, and Community Bank & Trust, a Tennessee-chartered commercial bank and wholly owned subsidiary of TCB Holdings (“CBT”). On the terms and subject to the conditions set forth in the Merger Agreement, TCB Holdings merged with and into the Company (the “TCB Merger”), with the Company as the surviving corporation. Immediately following the TCB Merger, CBT merged with and into Reliant, with Reliant continuing as the surviving banking corporation. Pursuant to the Merger Agreement, at the effective time of the TCB Merger (the “Effective Time”), each outstanding share of TCB Holdings common stock, par value $1.00 per share (other than certain excluded shares), was converted into and canceled in exchange for the right to receive (i) $17.13 in cash, without interest, and (ii) 0.769 shares of the Company’s common stock, par value $1.00 per share (“Company Common Stock”). The Company issued 811,210 shares of Company Common Stock and paid approximately $18,073 in cash, in respect of shares of TCB Holdings common stock as consideration for the TCB Merger. The Company did not issue fractional shares of Company Common Stock in connection with the TCB Merger, but paid cash in lieu of fractional shares based on the volume weighted average closing price per share of the Company Common Stock on The Nasdaq Capital Market for the 10 consecutive trading days ending on and including December 30, 2019 (calculated as $22.36 ). At time of the TCB Merger, each outstanding option to purchase TCB Holdings common stock was canceled in exchange for a cash payment in an amount equal to the product of (i) $34.25 minus the per share exercise price of the option multiplied by (ii) the number of shares of TCB Holdings common stock subject to the option (to the extent not previously exercised). The Company paid an aggregate consideration payable to holders of unexercised options of approximately $430 . All shares of Company’s common stock outstanding prior to the merger were unaffected by the TCB Holdings Transaction. The Company is currently determining the initial accounting for this business combination including completing valuations of loans, premises and equipment, intangible assets, deposits, debt and other liabilities. TCB Holdings is a Tennessee based full-service community bank organization with operations in Ashland City, Kingston Springs, Pegram, Pleasant View, and Springfield, Tennessee. These communities lie on the northwest perimeter of Nashville, Tennessee. At December 31, 2019, TCB Holdings had total assets of approximately $253,000 (unaudited). NOTE 27 - SUBSEQUENT EVENTS (CONTINUED) On October 22, 2019, the Company, PG Merger Sub, Inc., a Tennessee corporation and a wholly owned subsidiary of Reliant (“Merger Sub”), and First Advantage Bancorp, a Tennessee corporation (“FABK”), entered into an Agreement and Plan of Merger (the “FABK Merger Agreement”) that provides for the combination of the Company and FABK. Under the FABK Merger Agreement, Merger Sub will merge with and into FABK (the “FABK Merger”), with FABK to be the surviving corporation and to become a wholly owned subsidiary of Reliant. As soon as reasonably practicable following the FABK merger and as part of a single integrated transaction, FABK will merge with and into Reliant (the “Second Step Merger” and, together with the FABK merger, as the “FABK Mergers”), with Reliant to be the surviving corporation. Immediately following the completion of the Second Step merger, First Advantage Bank, a Tennessee-chartered commercial bank and a wholly owned subsidiary of FABK (“FAB”), will merge with and into Reliant Bank, a Tennessee-chartered commercial bank and a wholly owned subsidiary of Reliant (the “FABK Bank Merger”), with Reliant Bank to be the surviving bank. In connection with the FABK Merger, each outstanding share of common stock of FABK, par value $0.01 per share (“FABK common stock”) (except for specified shares of FABK common stock held by Reliant, Merger Sub, or FABK and any dissenting shares), will be converted into the right to receive (i) 1.17 shares (the “exchange ratio”) of Reliant common stock, par value $1.00 per share (“Reliant common stock”), and (ii) $3.00 in cash, without interest. In lieu of the issuance of any fractional shares of Reliant common stock, Reliant will pay to each shareholder of FABK who would otherwise be entitled to receive such fractional share an amount in cash (rounded to the nearest whole cent) determined by multiplying (i) the volume-weighted average closing price per share of Reliant common stock on The Nasdaq Capital Market (“Nasdaq”) for the 10 consecutive trading days ending on and including the business day immediately preceding the closing date of the transactions contemplated by the FABK merger agreement by (ii) the fraction of a share (rounded to the nearest thousandth when expressed in decimal form) of Reliant common stock to which such holder would otherwise be entitled to receive. Regulatory approval of the transaction was received in January 2020. Shareholder approval occurred on March 3, 2020. Completion of the FABK Merger is subject to the satisfaction of customary closing conditions. The transaction is expected to close in the beginning of the second quarter of 2020. FABK is a Tennessee based full-service community bank organization with operations in Clarksville, Nashville, and Franklin, Tennessee. It also has a loan production office in Knoxville, Tennessee. At December 31, 2019, FABK had total assets of approximately $738,000 (unaudited). FABK may exit from the FABK Mergers if (i) Reliant’s volume-weighted average closing stock price over a 15 consecutive trading day period prior to and ending on the fifth business day before the closing (the “average closing price”) is less than $18.5464 , and (ii) (a) the number obtained by dividing the average closing price by $23.183 is less than (b) the difference between (1) the number obtained by dividing the closing index value for the Nasdaq Bank Index as reported in The Wall Street Journal on the determination date by $3,706.69 , and (2) 0.20 , provided that FABK shall not be entitled to terminate the FABK merger agreement without giving Reliant written notice of the intent to terminate the FABK merger agreement within two business days after the determination date, and provided further, that FABK’s termination right shall be subject to Reliant’s right to increase the FABK merger consideration (either with additional shares of Reliant common stock or, subject to the requirement that the FABK merger remains a “reorganization” for tax purposes, additional cash) such that the aggregate FABK merger consideration equals, at a minimum, an amount equal to the sum of (i) the cash consideration multiplied by the number of shares of FABK common stock then outstanding, plus (ii) the product of (x) the number of shares of FABK common stock outstanding on the determination date, multiplied by (y) the exchange ratio, multiplied by (z) $18.5464 . In February 2020, the Company entered two $25,000 notional amount cash flow hedges. The Company will pay fixed rates of 1.22% with one hedge having a 4 -year maturity and the other having a 5 -year maturity. For both hedges the Company will pay a floating rate. These interest rate swap hedges will be designated to offset risk related to short-term deposits and borrowings. On February 27, 2020, the Company offered to exchange the $60,000 in 5.125% fixed to floating rate subordinated debentures due December 15, 2029 (see Note 11) with “New Notes”. The New Notes will have the same terms but will be registered with the SEC under the Securities Act and will be less restricted on transfer. NOTE 27 - SUBSEQUENT EVENTS (CONTINUED) On March 4, 2020, Nashville and communities lying east of the Company's middle Tennessee market perimeter sustained tornado damage. Presently, the Company is unable to determine the possible impact of the tornado, but any losses would be mitigated by the required insurance coverages for collateral based loans. Effective March 10, 2020, the Company authorized a stock repurchase plan for the Company to reacquire up to $15,000 of the Company's outstanding common stock. The repurchase plan is anticipated to remain effective until December 31, 2020, unless the authorized amount of share repurchase is reached at an earlier date. The Company may extend, modify, amend, suspend, or discontinue the plan at any time. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Reliant Bancorp, Inc. (f/k/a Commerce Union Bancshares, Inc.), is a Tennessee corporation and the holding company for and the sole shareholder of Reliant Bank. Reliant Bancorp is registered as a financial holding company under the Bank Holding Company Act of 1956 as amended ("Bank Holding Company Act"). Reliant Bank is a commercial bank chartered under Tennessee law and a member of the Federal Reserve System (the "Federal Reserve"). Reliant Bank, Reliant Bancorp's wholly-owned subsidiary, provides a full range of traditional banking products and services to corporate and consumer clients throughout Middle Tennessee and the Nashville-Davidson-Murfreesboro-Franklin, TN Metropolitan Statistical Area (the “Nashville MSA”) and Chattanooga, Tennessee. Reliant Bank operates banking centers in Cheatham, Davidson, Hamilton, Hickman, Maury, Montgomery, Robertson, Rutherford, Sumner, and Williamson counties, Tennessee. Additionally, Reliant Bank operates mortgage offices in Brentwood, Hendersonville, and Memphis, Tennessee, as well as two in Little Rock and two in Hot Springs, Arkansas. |
Basis of Presentation | Basis of Presentation The accounting and reporting policies of Reliant Bancorp, Inc. conform to US GAAP and to general practices within the banking industry. The following is a brief summary of the significant policies. The consolidated financial statements as of and for the periods presented include the accounts of Reliant Bancorp, the Bank, Community First Trups Holding Company (“TRUPS”), which is wholly owned by Reliant Bancorp, Reliant Investment Holdings, LLC ("Holdings"), which is 100% wholly owned by the Bank, and RMV, of which the Bank controls 51% of the governance rights (Reliant Bancorp, the Bank, Holdings, TRUPS, and RMV are collectively referred to herein as the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. As described in Note 22, Reliant Bancorp and Community First merged effective January 1, 2018. During 2011, the Bank and another entity organized RMV. Under the related operating agreement, the non-controlling member receives 70% of the profits of RMV, and the Bank receives 30% of the profits once the non-controlling member recovers its aggregate losses. The non-controlling member is responsible for 100% of RMV’s net losses. As of December 31, 2019, the cumulative losses to date totaled $13.4 million . RMV will have to generate net income of this amount before the Company will participate in future earnings. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with US GAAP, which requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to determination of the allowance for loan losses, the valuation of other real estate, the valuation of debt and equity securities, the valuation of deferred tax assets and fair values of financial instruments. |
Concentrations | Concentrations At December 31, 2019 and 2018 , the Company had significant credit exposures to borrowers in real estate. If this industry experiences another economic slowdown and, as a result, the borrowers in this industry are unable to meet the obligations of their existing loan agreements, earnings could be negatively impacted. The Company is concentrated in the middle Tennessee regional market and the operating results are impacted by the economic conditions of that area. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, deposits with other financial institutions with maturities less than 90 days, and federal funds sold. Generally, federal funds sold are purchased and sold for one-day periods. Net cash flows are reported for customer loan and deposit transactions, federal funds sold, and short-term Federal Home Loan Bank ("FHLB") borrowings. The Company maintains deposits in excess of the federal insurance amounts with other financial institutions. Management makes deposits only with financial institutions it considers financially sound. Federal funds sold of $52 and $371 at December 31, 2019 and 2018 , respectively, were invested in one financial institution. |
Securities | Securities The Company classifies its securities in one of two categories: held to maturity ("HTM") and available for sale ("AFS"). HTM securities are those securities for which the Company has the ability and intent to hold until maturity. Securities are classified as AFS when they might be sold before maturity. The Company had no held to maturity securities at December 31, 2019 and 2018 , or in the three-year period ended December 31, 2019 . Interest income includes purchase premiums and discounts amortized or accreted over the life of the related security as an adjustment to the yield without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method including reclassification from other comprehensive income. When the fair value of a debt security has declined below the amortized cost at the measurement date, if an entity intends to sell a security or is more likely than not to sell the security before the recovery of the security’s cost basis, the entity must recognize the other-than-temporary impairment (“OTTI”) in earnings. For a debt security with a fair value below the amortized cost at the measurement date where it is more likely than not that an entity will not sell the security before the recovery of its cost basis, but an entity does not expect to recover the entire cost basis of the security, the security is classified as OTTI. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The related OTTI loss on the debt security will be recognized in earnings to the extent that the loss is due to the declining credit quality of the issuer, with the remaining impairment loss recognized in accumulated other comprehensive income. In estimating OTTI losses, management considers: the length of time and extent that fair value of the security has been less than the cost of the security, the financial condition and near term prospects of the issuer, cash flow, stress testing analysis on securities, when applicable, and the Company’s ability and intent to hold the security for a period sufficient to allow for any anticipated recovery in fair value. |
Loans | Loans-Held-for-Investment Loans-held-for-investment (LHFS) that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, deferred loan fees, and an allowance for loan losses (ALLL). Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level yield method without anticipating prepayments. This treatment does not materially differ from the level interest yield method. Past due status is determined based on the contractual terms of the note. The accrual of interest is discontinued when a loan becomes 90 days past due according to the contractual terms of the note unless it is well collateralized and in the process of collection, or when management believes, after considering economic and business conditions and collection efforts, that the principal or interest will not be collectible in the normal course of business. When a loan is placed on non-accrual status, previously accrued and uncollected interest is charged against interest income on loans. When full collection of the remaining book balance is uncertain, interest payments received are applied to the principal balance outstanding. In some cases, when the remaining book balance of the loan is deemed fully collectible, payments are treated as interest income on a cash basis. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The restructuring of a loan is considered a “troubled debt restructuring” if the borrower is experiencing financial difficulties and the Company has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. |
Allowance for Loan Loss | Allowance for Loan Loss The allowance for loan loss ("ALLL") is an estimate of future probable credit losses. Losses on loans-held-for-investment are charged against the ALLL when management believes the remaining balance due has become uncollectible. Subsequent recoveries, if any, are credited to the ALLL. Management estimates a general component to the ALLL based on historical loan loss experience and qualitative factors, which include, 1) the nature and volume of the portfolio, 2) current economic conditions (national and local), 3) changes in interest rates, 4) portfolio concentrations, 5) changes in the experience, ability, and depth of the lending function, and 6) levels of and trends in charged-off loans, recoveries, past-due loans and volume and severity of classified loans. A specific ALLL component is calculated for loans that meet the definition of impairment. A loan is considered impaired when management believes that principal and interest due on that loan will not be collected in accordance with the terms and conditions of the loan agreement. Once a loan is deemed to be impaired, management must calculate the potential loss for the specific loan based on one of three approved methodologies to estimate the expected recovery from secondary payment sources, which is then deducted from the book value of the loan asset to calculate the amount of specific reserve required, 1) fair value of collateral, less expected cost to sell, 2) discounted cash flows of the expected future loan payments, and 3) expected sale proceeds if loan was sold to another lender. Interest payments on impaired loans are typically applied to principal unless the principal amount is deemed fully collectible, in which case interest is recognized on a cash basis. When recognition of interest income on a cash basis is appropriate, the amount of income recognized is limited to what would have been accrued on the remaining principal balance at the contractual rate. Cash payments received over this limit, and not applied to reduce the loans remaining principal balance, are recorded as recoveries of prior charge-offs until these charge-offs have been fully recovered. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A loan is impaired when full payment under the loan terms is not expected. All classified loans and loans on non-accrual status are individually evaluated for impairment. Factors considered in determining if a loan is impaired include the borrower’s ability to repay amounts owed, collateral deficiencies, the risk rating of the loan and economic conditions affecting the borrower’s industry, among other things. Interest payments on impaired loans are typically applied to principal unless the principal amount is deemed fully collectible, in which case interest is recognized on a cash basis. When recognition of interest income on a cash basis is appropriate, the amount of income recognized is limited to what would have been accrued on the remaining principal balance at the contractual rate. Cash payments received over this limit, and not applied to reduce the loans remaining principal balance, are recorded as recoveries of prior charge-offs until these charge-offs have been fully recovered. |
Mortgage Loans Held for Sale | Mortgage Loans Held for Sale Mortgage loans originated with the intent to sell to third party investors are classified as held for sale (LHFS). Such loans are carried at the lower of aggregate cost or market value, as determined by pricing on an individual loan basis. These loans are typically marketed to potential investors prior to closing the loan with the borrower. Net unrealized losses, if any, are recorded through a valuation allowance and charged to operations. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets or the terms of the related lease for leasehold improvements. The range of estimated useful lives for buildings is 30 to 40 years , for leasehold improvements is 3 to 25 years , which correlates with the applicable lease term, and for furniture, fixtures and equipment is 3 to 7 years . Gain or loss on items retired and otherwise disposed of is credited or charged to operations and the cost and related accumulated depreciation are removed from the asset and accumulated depreciation accounts. Expenditures and improvements of premises and equipment are capitalized and those for maintenance and repairs are charged to earnings as incurred. |
Restricted Equity Securities | Restricted Equity Securities The Bank is a member of the Federal Home Loan Bank (“FHLB”) system and the Federal Reserve system and is required to hold stock in both entities. These investments are carried at cost, classified as restricted equity securities, and periodically evaluated for impairment based on ultimate recovery of par value. |
Other Real Estate | Other Real Estate Real estate acquired in the settlement of loans is initially recorded at estimated fair value, less estimated cost to sell, if less than the carrying value of the loan when acquired. Based on periodic evaluations by management, the carrying values are reduced by a direct charge to earnings when they exceed net realizable value. Costs relating to the development and improvement of the property are capitalized up to fair value less cost to sell, while holding costs of the property are charged to expense in the period incurred. |
Cash Surrender Value of Life Insurance Policy | Cash Surrender Value of Life Insurance Contracts The Company is the owner and beneficiary of various life insurance policies on certain key employees. These policies are recorded at their cash surrender values. |
Impairment of Long-Term Assets | Impairment of Long-Term Assets Premises and equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are written down to fair value, with a corresponding charge to earnings. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of assets and liabilities acquired in two previous business acquisitions and a branch acquisition treated as a business acquisition. Goodwill is evaluated for impairment at least annually and more frequently if events and circumstances indicate that the asset might be impaired. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Derivatives | Derivatives At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company's intentions and belief as to the likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment ("fair value hedge"), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedge"), or (3) an instrument with no hedging designation ("stand-alone derivative"). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Derivatives, (Continued) The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivate is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. |
Stock Based Compensation | Stock Based Compensation Compensation cost recognized for stock options and restricted stock and unit awards issued to employees is based on the fair value of these awards at the date of grant. A binomial model is utilized to estimate the fair value of stock options. Compensation cost is recognized over the required service period, generally defined as the vesting period. |
Income Taxes | Income Taxes Income tax expense or benefit is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. Although realization is not assured, management believes it is more likely than not that all of the deferred tax assets will be realized. Management performs an evaluation of all income tax positions taken or expected to be taken in the course of preparing the Company’s income tax returns to determine whether the income tax positions meet a “more likely than not” standard of being sustained under examination by the applicable taxing authorities. Management has performed its evaluation of all income tax positions taken on all open income tax returns and has determined that there were no positions taken that do not meet the “more likely than not” standard. Penalties and interest relating to income taxes are recognized in income tax expense. The Company files income tax returns in the U.S. federal jurisdiction and various states. The Company’s federal and states income tax returns for years prior to fiscal year 2017 are no longer open to examination. |
Earnings Per Share | Earnings Per Share Earnings per share is computed by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding plus shares representing the dilutive effect of stock options, restricted stock awards and units, and employee stock purchase plan shares outstanding. |
Retirement Plan | Retirement Plan The Company has a 401(k) retirement plan covering all employees who elect to participate, subject to certain eligibility requirements. The Plan allows employees to defer up to 100% of their salary, subject to regulatory limitations with the Company matching 100% of the first 6% contributed by the employee. The Company recognizes as expense the amount of matching contributions related to the 401(k) plan. Vesting within the plan is immediate for 100% of deferral and employer contributions. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on AFS securities and derivatives. These gains and losses are recognized as a separate component of stockholders’ equity. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the consolidated financial statements. |
Preferred Shares | Preferred Shares Preferred shares have rights that can be set when issued as determined by the Board of Directors. |
Dividend Restriction | Dividend Restriction Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Company to shareholders. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred |
Fair Value Measurements | Fair Value Measurements Financial accounting standards relating to fair value measurements establish a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2 Inputs to the valuation methodology include: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; • Inputs that are derived principally from or corroborated by the observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 Inputs to the valuation methodology are unobservable and reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. An asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques should maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value on a recurring basis: AFS Securities : The fair values of AFS securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The Company obtains fair value measurements for AFS securities from an independent pricing service. The fair value measurements consider observable data that may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, cash flows and reference data, including market research publications, among other things. Interest rate swaps: The fair values of interest rate swaps are determined based on discounted future cash flows. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Fair Value Measurements (Continued) Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Assets and liabilities measured at fair value on a nonrecurring basis include the following: Impaired loans : The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on the present value of expected payments using the loan’s effective rate as the discount rate or recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. Mortgage loans held for sale: Bid quotes are presently used for the fair value estimate of mortgage loans held for sale, while previously the Company used a model as developed and performed by an independent entity to value such loans. Other real estate owned: The fair value of other real estate owned is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company’s valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 5. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. |
Reclassifications | Reclassifications Certain reclassifications have been made in the 2018 and 2017 consolidated financial statements to conform to the 2019 presentation. These reclassifications had no effect on total assets, total liabilities or the results of operations previously reported. |
Recent Authoritative Accounting Guidance | Recent Authoritative Accounting Guidance The following discusses new authoritative accounting guidance and the related impact on the Company. ASU 2014-09, “ Revenue from Contracts with Customers (Topic 606 )” implements a common revenue standard that clarifies the principles for recognizing revenue. The principle element of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 was originally going to be effective for the Company on January 1, 2018; however, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606 ) – Deferral of the Effective Date" which deferred the effective date of ASU 2014-09 by one year to January 1, 2019. Revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. The Company had no material impact in adopting ASU 2014-09 related to non-interest income (See Note 26). ASU 2016-01, “ Financial Instruments – Overall (Subtopic 825-10 ): Recognition and Measurement of Financial Assets and Financial Liabilities ." ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires 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 and (viii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. ASU 2016-01 was effective for us on January 1, 2019 and did not have a significant impact on our consolidated financial statements. ASU 2016-02, “ Leases (Topic 842 ) .” ASU 2016-02 requires lessees to recognize a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 will be effective for us on January 1, 2020 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. The effect of implementing this pronouncement resulted in right to use assets of $12,032 and a corresponding lease liability. ASU 2016-05, “ Derivatives and Hedging (Topic 815 ) Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. ” ASU 2016-05 clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under ASC Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 became effective for the us on January 1, 2018 and did not have a significant impact on our consolidated financial statements. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Recent Authoritative Accounting Guidance, (Continued) ASU 2016-13 , “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available for sale debt securities and purchased financial assets with credit deterioration. On November 15, 2019, ASU 2019-10 "Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates" was issued. As a smaller reporting company, ASU 2019-10 delays the effective date of ASU 2016-13 to January 1, 2023. We are currently evaluating the potential impact of ASU 2016-13 on our financial statements. We are currently developing an implementation plan to include assessment of processes, portfolio segmentation, model development, system requirements and the identification of data and resource needs, among other things. We are also in the process of implementing a third-party vendor solution to assist us in the application of the ASU 2016-13. The adoption of the ASU 2016-13 could result in an increase in the allowance for loan losses as a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Furthermore, ASU 2016-13 will necessitate that we establish an allowance for expected credit losses for certain debt securities and other financial assets. While we are currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date. ASU 2017-04, “ Intangibles - Goodwill and Other (Topic 350 ) - Simplifying the Test for Goodwill Impairment. ” ASU 2017-04 eliminates Step 2 from the goodwill impairment test which required entities to compute the implied fair value of goodwill. Under ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 will be effective for the us on January 1, 2023, with earlier adoption permitted and is not currently expected to have a significant impact on our consolidated financial statements. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Recent Authoritative Accounting Guidance, (Continued) ASU 2017-12, “ Derivatives and Hedging (Topic 815 ) - Targeted Improvements to Accounting for Hedging Activities .” ASU 2017-12 amends the hedge accounting recognition and presentation requirements in ASC 815 to improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities to better align the entity’s financial reporting for hedging relationships with those risk management activities and to reduce the complexity of and simplify the application of hedge accounting. ASU 2017-12 will be effective for us on January 1, 2020 and is not expected to have a significant impact on our consolidated financial statements. ASU 2018-02 , “Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” Under ASU 2018-02, entities may elect to reclassify certain income tax effects related to the change in the U.S. statutory federal income tax rate under the Tax Cuts and Jobs Act, which was enacted on December 22, 2017, from accumulated other comprehensive income to retained earnings. ASU 2018-02 also requires certain accounting policy disclosures. We elected to adopt this change in accounting principle in the fourth quarter of 2017, which resulted in a decrease to retained earnings and an increase to accumulated other comprehensive income of $245 in 2017 on the consolidated statement of changes in stockholders’ equity. ASU 2018-13 , “Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, modify/clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. ASU 2018-13 will be effective for us on January 1, 2021, with early adoption permitted, and is not expected to have a significant impact on our 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.” The amendments in this update permit use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the interest rates on direct U.S. Treasury obligations, the LIBOR swap rate, the OIS rate based on the Fed Funds Effective Rate and the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Rate. ASU 2018-16 was effective for us on January 1, 2020 and did not have a significant impact on our consolidated financial statements. ASU 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes.” The guidance issued in this update simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition for deferred tax liabilities for outside basis differences. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 will be effective for us on January 1, 2021, with early adoption permitted, and is not expected to have a significant impact on our consolidated financial statements. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-Sale Securities | The amortized cost and fair value of AFS securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) at December 31, 2019 and 2018 were as follows: December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U. S. Treasury and other U. S. government agencies $ 59 $ — $ — $ 59 State and municipal 186,283 10,413 (36 ) 196,660 Corporate bonds 7,880 97 (132 ) 7,845 Mortgage backed securities 38,126 296 (661 ) 37,761 Asset backed securities 18,374 — (406 ) 17,968 Total $ 250,722 $ 10,806 $ (1,235 ) $ 260,293 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U. S. Treasury and other U. S. government agencies $ 568 $ — $ (14 ) $ 554 State and municipal 232,589 879 (4,170 ) 229,298 Corporate bonds 3,130 — (113 ) 3,017 Mortgage backed securities 32,172 34 (248 ) 31,958 Asset backed securities 28,635 — (639 ) 27,996 Time deposits 3,500 — — 3,500 Total $ 300,594 $ 913 $ (5,184 ) $ 296,323 |
Schedule of Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of AFS securities at December 31, 2019 are presented below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Amortized Cost Estimated Fair Value Due within one year $ 999 $ 1,000 Due in one to five years 2,414 2,285 Due in five to ten years 10,301 10,834 Due after ten years 180,508 190,445 Mortgage backed securities 38,126 37,761 Asset backed securities 18,374 17,968 Total $ 250,722 $ 260,293 |
Schedule of Unrealized Loss on Investments | Less than 12 months 12 months or more Total Estimated Fair Value Unrealized Loss Estimated Fair Value Unrealized Loss Estimated Fair Value Unrealized Loss U. S. Treasury and other U. S. government agencies $ — $ — $ 555 $ 14 $ 555 $ 14 State and municipal 118,580 2,263 47,223 1,907 165,803 4,170 Corporate bonds 2,526 105 492 8 3,018 113 Mortgage backed securities 17,015 99 5,397 149 22,412 248 Asset backed securities 20,351 383 7,255 256 27,606 639 Total temporarily impaired $ 158,472 $ 2,850 60,922 2,334 $ 219,394 $ 5,184 The following table shows available for sale AFS securities with unrealized losses and their estimated fair value aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position as of December 31, 2019 : Less than 12 months 12 months or more Total Estimated Fair Value Unrealized Loss Estimated Fair Value Unrealized Loss Estimated Fair Value Unrealized Loss State and municipal $ 1,960 $ 36 $ — $ — $ 1,960 $ 36 Corporate bonds — — 2,499 132 2,499 132 Mortgage backed securities 16,104 286 9,081 375 25,185 661 Asset backed securities — — 17,682 406 17,682 406 Total temporarily impaired $ 18,064 $ 322 $ 29,262 $ 913 $ 47,326 $ 1,235 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Loans and Allowance for Loan Losses | Loans at December 31, 2019 and 2018 were comprised as follows: December 31, 2019 December 31, 2018 Commercial, Industrial and Agricultural $ 245,515 $ 213,850 Real Estate 1-4 Family Residential 227,529 225,863 1-4 Family HELOC 96,228 88,112 Multi-family and Commercial 536,845 447,840 Construction, Land Development and Farmland 273,872 220,801 Consumer 16,855 20,495 Other 13,180 14,106 Total 1,410,024 1,231,067 Less Deferred loan fees (costs) 72 (9) Allowance for possible loan losses 12,578 10,892 Loans, net $ 1,397,374 $ 1,220,184 |
Schedule of Activity in the Allowance for Loan Losses By Portfolio Segment | Activity in the ALLL by portfolio segment was as follows for the year ended December 31, 2019 : Commercial Industrial and Agricultural Multi-family and Commercial Construction Land Development and Farmland 1-4 Family Residential Real Estate 1-4 Family HELOC Consumer Other Total Beginning balance at December 31, 2018 $ 1,751 $ 4,429 $ 2,500 $ 1,333 $ 656 $ 184 $ 39 $ 10,892 Charge-offs (396 ) — (60 ) (29 ) — (50 ) (35 ) (570 ) Recoveries 393 65 — 225 12 51 299 1,045 Provision 781 791 209 (249 ) (44 ) (8 ) (269 ) 1,211 Ending balance at December 31, 2019 $ 2,529 $ 5,285 $ 2,649 $ 1,280 $ 624 $ 177 $ 34 $ 12,578 NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSS (CONTINUED) Activity in the ALLL by portfolio segment was as follows for the year ended December 31, 2018 : Commercial Industrial and Agricultural Multi-family and Commercial Construction Land Development and Farmland 1-4 Family Residential Real Estate 1-4 Family HELOC Consumer Other Total Beginning balance at December 31, 2017 $ 2,538 $ 3,166 $ 2,434 $ 773 $ 595 $ 183 $ 42 $ 9,731 Charge-offs (381 ) (76 ) (215 ) (36 ) (6 ) (26 ) (47 ) (787 ) Recoveries 590 221 44 12 10 34 2 913 Provision (996 ) 1,118 237 584 57 (7 ) 42 1,035 Ending balance at December 31, 2018 $ 1,751 $ 4,429 $ 2,500 $ 1,333 $ 656 $ 184 $ 39 $ 10,892 Activity in the ALLL by portfolio segment was as follows for the year ended December 31, 2017 : Commercial Industrial and Agricultural Multi-family and Commercial Construction Land Development and Farmland 1-4 Family Residential Real Estate 1-4 Family HELOC Consumer Other Total Beginning balance at December 31, 2016 $ 2,432 $ 2,737 $ 1,786 $ 1,178 $ 704 $ 208 $ 37 $ 9,082 Charge-offs (976 ) — (45 ) (14 ) — (36 ) — (1,071 ) Recoveries 378 — 5 — 19 2 — 404 Provision 704 429 688 (391 ) (128 ) 9 5 1,316 Ending balance at December 31, 2017 $ 2,538 $ 3,166 $ 2,434 $ 773 $ 595 $ 183 $ 42 $ 9,731 |
Schedule of Allowance for Credit Losses and Recorded Investments in Loans By Portfolio and By Impairment Method | The ALLL and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019 was as follows: Commercial Industrial and Agricultural Multi-family and Commercial Construction Land Development and Farmland 1-4 Family Residential Real Estate 1-4 Family HELOC Consumer Other Total Allowance for loan losses Individually evaluated for impairment $ 755 $ — $ 17 $ — $ — $ — $ — $ 772 Acquired with credit impairment — — — — — — — — Collectively evaluated for impairment 1,774 5,285 2,632 1,280 624 177 34 11,806 Total $ 2,529 $ 5,285 $ 2,649 $ 1,280 $ 624 $ 177 $ 34 $ 12,578 Loans Individually evaluated for impairment $ 1,154 $ 2,396 $ 1,218 $ 1,120 $ 374 $ — $ — $ 6,262 Acquired with credit impairment — 215 813 195 — — — 1,223 Collectively evaluated for impairment 244,361 534,234 271,841 226,214 95,854 16,855 13,180 1,402,539 Total $ 245,515 $ 536,845 $ 273,872 $ 227,529 $ 96,228 $ 16,855 $ 13,180 $ 1,410,024 The ALLL and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2018 was as follows: Commercial Industrial and Agricultural Multi-family and Commercial Construction Land Development and Farmland 1-4 Family Residential Real Estate 1-4 Family HELOC Consumer Other Total Allowance for loan losses Individually evaluated for impairment $ 38 $ — $ 17 $ — $ — $ — $ — $ 55 Acquired with credit impairment — — — — — — — — Collectively evaluated for impairment 1,713 4,429 2,483 1,333 656 184 39 10,837 Total $ 1,751 $ 4,429 $ 2,500 $ 1,333 $ 656 $ 184 $ 39 $ 10,892 Loans Individually evaluated for impairment $ 978 $ 1,160 $ 1,780 $ 1,246 $ — $ 12 $ — $ 5,176 Acquired with credit impairment 40 232 1,751 262 — 11 — 2,296 Collectively evaluated for impairment 212,832 446,448 217,270 224,355 88,112 20,472 14,106 1,223,595 Total $ 213,850 $ 447,840 $ 220,801 $ 225,863 $ 88,112 $ 20,495 $ 14,106 $ 1,231,067 |
Schedule of Non-Accrual Loans By Class of Loan | Non-accrual loans by class of loan were as follows: December 31, 2019 December 31, 2018 Commercial, Industrial and Agricultural $ 572 $ 279 Multi-family and Commercial Real Estate 1,276 — Construction, Land Development and Farmland 555 1,294 1-4 Family Residential Real Estate 1,344 2,556 1-4 Family HELOC 296 — Consumer 28 65 Total $ 4,071 $ 4,194 |
Schedule of Individually Impaired Loans by Class of Loans | Individually impaired loans by class of loans were as follows at December 31, 2019 : Unpaid Recorded Investment with no Allowance Recorded Recorded Investment with Allowance Recorded Total Recorded Related Commercial, Industrial and Agricultural $ 1,154 $ — $ 1,154 $ 1,154 $ 755 Multi-family and Commercial Real Estate 2,624 2,611 — 2,611 — Construction, Land Development and Farmland 2,348 1,860 171 2,031 17 1-4 Family Residential Real Estate 1,419 1,315 — 1,315 — 1-4 Family HELOC 376 374 — 374 — Total $ 7,921 $ 6,160 $ 1,325 $ 7,485 $ 772 Individually impaired loans by class of loans were as follows at December 31, 2018 : Unpaid Recorded Investment with no Allowance Recorded Recorded Investment with Allowance Recorded Total Recorded Related Commercial, Industrial and Agricultural $ 1,247 $ 765 $ 253 $ 1,018 $ 38 Multi-family and Commercial Real Estate 1,670 1,392 — 1,392 — Construction, Land Development and Farmland 3,920 3,359 172 3,531 17 1-4 Family Residential Real Estate 2,243 1,508 — 1,508 — Consumer 29 23 — 23 — Total $ 9,109 $ 7,047 $ 425 $ 7,472 $ 55 NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSS (CONTINUED) Individually impaired loans by class of loans were as follows at December 31, 2017 : Unpaid Recorded Investment with no Allowance Recorded Recorded Investment with Allowance Recorded Total Recorded Related Commercial, Industrial and Agricultural $ 4,398 $ 2,959 $ 966 $ 3,925 $ 608 Multi-family and Commercial Real Estate 3,427 3,078 — 3,078 — Construction, Land Development and Farmland 5,317 3,249 1,987 5,236 59 1-4 Family Residential Real Estate 2,857 2,159 — 2,159 — 1-4 Family HELOC 90 90 — 90 — Total $ 16,089 $ 11,535 $ 2,953 $ 14,488 $ 667 |
Schedule of Average Balances of Impaired Loans | The average recorded investment in impaired loans for the years ended December 31, 2019 , 2018 and 2017 , was as follows: 2019 2018 2017 Commercial, Industrial and Agricultural $ 1,767 $ 2,333 $ 5,225 Multi-family and Commercial Real Estate 2,580 2,366 4,138 Construction, Land Development and Farmland 2,462 4,571 4,502 1-4 Family Residential Real Estate 1,686 2,468 2,212 1-4 Family HELOC 208 72 784 Consumer 2 62 — Total $ 8,705 $ 11,872 $ 16,861 |
Schedule of Credit Quality Indicators By Class of Loan | Credit quality indicators by class of loan were as follows at December 31, 2019 : Pass Special Mention Substandard Total Commercial, Industrial and Agricultural $ 241,089 $ 2,382 $ 2,044 $ 245,515 1-4 Family Residential Real Estate 225,809 — 1,720 227,529 1-4 Family HELOC 95,678 — 550 96,228 Multi-family and Commercial Real Estate 531,055 1,519 4,271 536,845 Construction, Land Development and Farmland 272,440 — 1,432 273,872 Consumer 16,634 — 221 16,855 Other 13,180 — — 13,180 Total $ 1,395,885 $ 3,901 $ 10,238 $ 1,410,024 NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSS (CONTINUED) Credit quality indicators by class of loan were as follows at December 31, 2018 : Pass Special Mention Substandard Total Commercial, Industrial and Agricultural $ 212,761 $ — $ 1,089 $ 213,850 1-4 Family Residential Real Estate 221,546 1,125 3,192 225,863 1-4 Family HELOC 88,112 — — 88,112 Multi-family and Commercial Real Estate 442,127 3,135 2,578 447,840 Construction, Land Development and Farmland 218,053 579 2,169 220,801 Consumer 20,236 — 259 20,495 Other 14,106 — — 14,106 Total $ 1,216,941 $ 4,839 $ 9,287 $ 1,231,067 |
Schedule of Past Due Status By Class of Loan | Past due loan balances by class of loan were as follows at December 31, 2019 : 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Loans Commercial, Industrial and Agricultural $ 79 $ 4 $ 572 $ 655 $ 244,860 $ 245,515 1-4 Family Residential Real Estate 501 236 229 966 226,563 227,529 1-4 Family HELOC — — 296 296 95,932 96,228 Multi-family and Commercial Real Estate 485 — 558 1,043 535,802 536,845 Construction, Land Development and Farmland 255 — 339 594 273,278 273,872 Consumer 38 26 64 128 16,727 16,855 Other — — — — 13,180 13,180 Total $ 1,358 $ 266 $ 2,058 $ 3,682 $ 1,406,342 $ 1,410,024 NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSS (CONTINUED) Past due loan balances by class of loan were as follows at December 31, 2018 : 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Loans Commercial, Industrial and Agricultural $ 22 $ 153 $ 279 $ 454 $ 213,396 $ 213,850 1-4 Family Residential Real Estate 1,104 335 1,203 2,642 223,221 225,863 1-4 Family HELOC 50 — — 50 88,062 88,112 Multi-family and Commercial Real Estate — 104 — 104 447,736 447,840 Construction, Land Development and Farmland 214 — 171 385 220,416 220,801 Consumer 11 30 46 87 20,408 20,495 Other — — — — 14,106 14,106 Total $ 1,401 $ 622 $ 1,699 $ 3,722 $ 1,227,345 $ 1,231,067 |
Schedule of Loans By Class Modified as Troubled Debt Restructurings | Troubled debt restructurings occurring during the year ended December 31, 2018 by class of loan were as follows: Number of Contracts Pre-Modification Outstanding Recorded Investments Post-Modification Outstanding Recorded Investments 1-4 Family Residential Estate 1 $ 1,254 $ 1,254 Multi-family and Commercial Real Estate 1 $ 661 $ 585 Total 2 $ 1,915 $ 1,839 Troubled debt restructurings occurring during the year ended December 31, 2017 by class of loan were as follows: Number of Contracts Pre-Modification Outstanding Recorded Investments Post-Modification Outstanding Recorded Investments Construction, Land Development and Farmland 2 $ 2,110 $ 1,640 Total 2 $ 2,110 $ 1,640 |
Schedule of Outstanding Balance And Carrying Amount of the Purchased Credit Impaired Loans | The carrying amount of those loans was as follows at December 31, 2019 and 2018 , respectively: 2019 2018 Commercial, Industrial and Agricultural $ — $ 63 Multi-family and Commercial Real Estate 217 233 Construction, Land Development and Farmland 1,021 1,958 1-4 Family Residential Real Estate 231 324 1-4 Family HELOC — — Consumer — 18 Total outstanding balance 1,469 2,596 Less remaining purchase discount 246 300 Allowance for loan losses — — Carrying amount, net of allowance $ 1,223 $ 2,296 |
Schedule of Activity Related to Accretable Portion | Activity related to the accretable portion of the purchase discount on loans acquired with deteriorated credit quality is as follows for the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 Balance at January 1, $ 110 $ — $ 87 New loans purchased — 260 — Loan charge offs (12 ) (104 ) — Accretion income — (46 ) (87 ) Balance at December 31, $ 98 $ 110 $ — |
Schedule of Activity with Respect to Loans to Related Parties | An analysis of the activity with respect to loans to related parties for the years ended December 31, 2019 , 2018 and 2017 , is as follows: 2019 2018 2017 Balance - January 1, $ 7,394 $ 8,581 $ 11,935 New loans during the year (3,136 ) 919 4,356 Repayments during the year 3,281 (2,106 ) (7,710 ) Balance - December 31, $ 7,539 $ 7,394 $ 8,581 |
Other Real Estate (Tables)
Other Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Other Real Estate | Other real estate activity for the years ended December 31, 2019 , 2018 and 2017 , was as follows: 2019 2018 2017 Beginning balance $ 1,000 $ — $ — Loans acquired in merger — 1,650 — Loans transferred to other real estate 943 1,060 — Allowance to lower of cost or market (98 ) — — Sales of other real estate (1,095 ) (1,710 ) — End of year $ 750 $ 1,000 $ — |
Schedule of Activity in Valuation Allowance | Activity in the valuation allowance for the years ended December 31, 2019 , 2018 and 2017 , was as follows: 2019 2018 2017 Beginning balance $ — $ — $ — Provisions/(recoveries) charged/(credited) to expense 98 — — Reductions from sales of other real estate — — — Direct write-downs — — — End of year $ 98 $ — $ — |
Schedule of Foreclosed Real Estate Expense | Expenses related to foreclosed assets for the years ended December 31, 2019 , 2018 and 2017 , include: 2019 2018 2017 Net gain on sales $ (166 ) $ (259 ) $ (27 ) Provision for unrealized losses 98 — — Operating expenses, net of rental income 44 50 7 Total $ (24 ) $ (209 ) $ (20 ) |
Fair Values of Assets and Lia_2
Fair Values of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | The following table sets forth the Company’s major categories of assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, as of December 31, 2019 and 2018 : Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2019 Assets U. S. Treasury and other U. S. government agencies $ 59 $ — $ 59 $ — State and municipal 196,660 — 196,660 — Corporate bonds 7,845 — 7,845 — Mortgage backed securities 37,761 — 37,761 — Asset backed securities 17,968 — 17,968 — Interest rate swap 688 — 688 — Liabilities Interest rate swap $ 3,396 $ — $ 3,396 $ — December 31, 2018 Assets U. S. Treasury and other U. S. government agencies $ 554 $ — $ 554 $ — State and municipal 229,298 — 229,298 — Corporate bonds 3,017 — 3,017 — Mortgage backed securities 31,958 — 31,958 — Asset backed securities 27,996 — 27,996 — Time deposits 3,500 3,500 — — Interest rate swap 467 — 467 — Liabilities Interest rate swap $ 1,183 $ — $ 1,183 $ — NOTE 5 - FAIR VALUES OF ASSETS AND LIABILITIES (CONTINUED) The following table sets forth the Company’s major categories of assets and liabilities measured at fair value on a nonrecurring basis, by level within the fair value hierarchy, as of December 31, 2019 and 2018 : Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2019 Assets Impaired loans $ 553 $ — $ — $ 553 Other real estate owned 750 — — 750 December 31, 2018 Assets Impaired loans $ 370 $ — $ — $ 370 |
Schedule of Level 3 input information for Assets Measured at Fair Value on a Nonrecurring Basis | The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which we have utilized Level 3 inputs to determine fair value at December 31, 2019 and 2018 : Valuation Techniques (1) Significant Unobservable Inputs Range (Weighted Average) Impaired loans Appraisal Estimated costs to sell 10% Other real estate owned Appraisal Estimated costs to sell 10% (1) The fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent. Estimated cash flows change and appraised values of the assets or collateral underlying the loans will be sensitive to changes. |
Schedule of Carrying Amounts And Estimated Fair Values of Financial instruments Not Reported at Fair Value | Carrying amounts and estimated fair values of financial instruments, by level within the fair value hierarchy, at December 31, 2019 were as follows: Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and due from banks $ 50,990 $ 50,990 $ 50,990 $ — $ — Federal funds sold 52 52 — 52 — Loans, net 1,397,374 1,383,719 — — 1,383,719 Mortgage loans held for sale 37,476 38,379 — 38,379 — Accrued interest receivable 7,111 7,111 — 7,111 — Restricted equity securities 11,279 11,279 — 11,279 — Financial liabilities Deposits $ 1,583,789 $ 1,582,117 $ — $ — $ 1,582,117 Accrued interest payable 2,022 2,022 — 2,022 — Subordinate debentures 70,883 71,454 — — 71,454 Federal Home Loan Bank advances 10,737 10,755 — — 10,755 Carrying amounts and estimated fair values of financial instruments, by level within the fair value hierarchy, at December 31, 2018 were as follows: Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and due from banks $ 34,807 $ 34,807 $ 34,807 $ — $ — Federal funds sold 371 371 — 371 — Loans, net 1,220,184 1,206,574 — — 1,206,574 Mortgage loans held for sale 15,823 15,871 — 15,871 — Accrued interest receivable 8,214 8,214 — 8,214 — Restricted equity securities 11,690 11,690 — 11,690 — Financial liabilities Deposits $ 1,437,903 $ 1,434,652 $ — $ — $ 1,434,652 Accrued interest payable 1,063 1,063 — 1,063 — Subordinate debentures 11,603 11,522 — — 11,522 Federal Home Loan Bank advances 57,498 57,434 — — 57,434 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The detail of premises and equipment at December 31, 2019 and 2018 is as follows: 2019 2018 Land $ 6,058 $ 6,049 Buildings 9,020 8,951 Construction in progress 371 — Leasehold improvements 7,891 7,551 Furniture, fixtures and equipment 10,930 10,311 34,270 32,862 Less: accumulated depreciation and amortization (12,894 ) (10,829 ) $ 21,376 $ 22,033 |
Restricted Equity Securities (T
Restricted Equity Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Restricted Equity Securities | The Company owned the following restricted equity securities as of December 31, 2019 and 2018 : 2019 2018 Federal Reserve Bank $ 5,754 $ 5,735 Federal Home Loan Bank 5,525 5,955 Total $ 11,279 $ 11,690 |
Goodwill and Core Deposit Int_2
Goodwill and Core Deposit Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The following presents the balances as of December 31, 2019 , and 2018 , of intangible assets acquired in business acquisitions: 2019 2018 Goodwill $ 43,642 $ 43,642 Amortized intangible assets: Core deposit intangibles $ 10,111 $ 10,111 Less accumulated amortization (2,841 ) (1,892 ) $ 7,270 $ 8,219 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future amortization expense by year as of December 31, 2019 is as follows: 2020 $ 949 2021 949 2022 949 2023 865 2024 695 Thereafter 2,863 Total $ 7,270 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Contractual Maturities of Time Deposit | Contractual maturities of time deposit accounts for the next five years at December 31, 2019 are as follows: 2020 $ 656,654 2021 69,639 2022 15,213 2023 10,049 2024 10,719 Total $ 762,274 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
Schedule of Federal Home Loan Bank, Advances | At December 31, advances from the FHLB were as follows: 2019 2018 Maturities January 2020 through March 2024, fixed rates ranging from 1.22% to 2.86% ($7,000 is due in the year ending December 31, 2020) $ 10,737 $ 57,498 |
Schedule of Maturities of Long-term Debt | Required future principal payments on FHLB advances are as follows: 2020 $ 7,000 2021 323 2022 557 2023 2,342 2024 515 Total $ 10,737 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The income tax expense consists of the following for the years ended December 31: 2019 2018 2017 Income tax expense Current $ 1,731 $ 992 $ 1,438 Deferred 398 380 504 Total provision for income tax expense $ 2,129 $ 1,372 $ 1,942 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the income tax expense for the years ended December 31, 2019 , 2018 and 2017 from the “expected” tax expense computed by applying the statutory federal income tax rate of 21 percent for 2019 and 2018 and 34 percent for 2017 to income before income taxes is as follows: 2019 2018 2017 Computed “expected” tax expense $ 2,660 21 % $ 2,495 21 % $ 2,756 34 % Increase (decrease) in tax expense resulting from: Federal income tax rate change — — % — — % 620 8 % State tax expense, net of federal tax effect 637 5 % 551 5 % 331 4 % Tax exempt interest (1,374 ) (11 )% (1,422 ) (12 )% (1,452 ) (18 )% Disallowed interest expense 1 — % 290 2 % 193 2 % Stock compensation 23 — % 19 — % 33 — % Cash surrender value of life insurance contracts (235 ) (2 )% (249 ) (2 )% (285 ) (4 )% Excess tax benefit from stock compensation (37 ) — % (88 ) (1 )% (184 ) (2 )% Nondeductible merger expenses 155 1 % 47 — % 173 2 % Federal and state tax credits (999 ) (8 )% (1,102 ) (9 )% (667 ) (8 )% Subsidiary disregarded for federal taxes 1,189 9 % 763 6 % 347 4 % Others as a group 109 1 % 68 1 % 77 1 % Total income tax expense $ 2,129 16 % $ 1,372 11 % $ 1,942 23 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets as of December 31, 2019 and 2018 are as follows: 2019 2018 Organizational and start-up costs $ 38 $ 68 Core deposit intangible (1,817 ) (2,046 ) Acquisition fair value adjustments 414 817 Allowance for loan losses 2,933 2,577 Loan fees (costs) (19 ) (1 ) Other real estate 26 577 Premises and equipment (627 ) (791 ) Unrealized (gain) loss on available for sale securities (2,501 ) 1,115 Unrealized loss on derivatives 708 187 Non-accrual loans 271 280 Acquired net operating losses 2,711 2,966 Acquired tax credits net of basis adjustments 1,005 1,005 Deferred compensation 310 443 Other 481 231 Total $ 3,933 $ 7,428 State $ (187 ) $ 688 Federal 4,120 6,740 Net deferred tax asset $ 3,933 $ 7,428 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Activity in the Stock Option Plan | A summary of the activity in the stock option plan for the periods ended December 31, 2019 , 2018 and 2017 , is as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2017 241,541 $ 12.96 5.41 years $ 2,065 Granted 15,500 23.55 Exercised (72,080 ) 11.42 Forfeited or expired (14,200 ) 14.06 Outstanding at December 31, 2017 170,761 14.48 5.73 years 1,905 Exercisable at December 31, 2017 95,861 13.00 3.75 years 1,212 Vested and anticipated vesting shares as of December 31, 2017 168,514 14.45 5.73 years 1,848 Granted 25,500 28.00 Exercised (30,001 ) 13.27 Forfeited or expired (7,000 ) 18.20 Outstanding at December 31, 2018 159,260 16.72 6.04 years 1,146 Exercisable at December 31, 2018 88,060 13.45 4.32 years 847 Vested and anticipated vesting shares as of December 31, 2018 157,124 16.67 6.01 years 1,002 Granted 27,500 23.28 Exercised (34,714 ) 12.79 Forfeited or expired (2,753 ) 19.35 Outstanding at December 31, 2019 149,293 18.81 6.68 years 700 Exercisable at December 31, 2019 74,693 15.31 5.18 years 553 Vested and anticipated vesting shares as of December 31, 2019 147,055 $ 18.76 6.64 years $ 570 |
Schedule of Nonvested Share Activity | A summary of changes in the Company's non-vested options for the years ended December 31, 2019 , 2018 and 2017 are as follows: Shares Weighted Average Grant-Date Fair Value Non-vested options at January 1, 2017 96,600 $ 3.36 Granted 15,500 6.66 Vested (23,000 ) 6.95 Forfeited (14,200 ) 3.18 Non-vested options at December 31, 2017 74,900 4.14 Granted 25,500 7.10 Vested (22,200 ) 6.69 Forfeited (7,000 ) 4.77 Non-vested options at December 31, 2018 71,200 5.28 Granted 27,500 6.97 Vested (21,347 ) 5.97 Forfeited (2,753 ) 4.89 Non-vested options at December 31, 2019 74,600 $ 6.08 |
Schedule of Information Related to Stock Option Plan | Information related to the stock option plan during each year follows and assumes a 3% forfeiture rate: 2019 2018 2017 Intrinsic value of options exercised $ 320 $ 344 $ 827 Cash received from option exercises 439 398 823 Tax benefit realized from option exercises 13 88 184 Weighted average fair value of options granted 6.97 7.10 6.66 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of options granted during 2019 and 2018 was determined using the following assumptions as of the grant date, resulting in an estimated fair value per option of $6.97 and $6.89 , respectively. 2019 2018 2017 Risk-free interest rate 2.08% — 2.39% 2.95% 2.30% — 2.45% Expected term (in years) 6.5 years 6.5 years 6.5 years Expected stock price volatility 31.10% — 32.80% 23.50% 24% — 29.90% Dividend yield 1.55% — 1.59% 1.14% 0.98% — 1.02% |
Schedule of Nonvested Restricted Stock Shares Activity | The following table shows the activity related to non-vested restricted stock and units for the years ended December 2019 , 2018 and 2017 : Restricted Stock Units Restricted Stock Units Weighted Average Grant-Date Shares Weighted Average Grant-Date Outstanding at January 1, 2017 — $ — 48,465 $ 14.36 Granted — — 50,050 23.65 Vested — — (13,016 ) 14.21 Forfeited — — (3,000 ) 14.18 Outstanding at December 31, 2017 — — 82,499 20.03 Granted — — 51,710 27.55 Vested — — (21,999 ) 15.95 Forfeited — — (1,550 ) 25.17 Outstanding at December 31, 2018 — — 110,660 24.28 Granted 47,750 23.30 9,500 22.01 Vested — — (21,450 ) 19.31 Forfeited — — (7,750 ) 23.25 Outstanding at December 31, 2019 47,750 $ 23.30 90,960 $ 25.31 |
Capital (Tables)
Capital (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Actual and Required Capital Amounts and Ratios | Actual and required capital amounts and ratios are presented below as of December 31, 2019 and 2018 . Actual Regulatory Capital Minimal Capital Adequacy Minimum Required Capital Including Capital Conservation Buffer To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Company Tier I leverage $ 176,748 9.74 % N/A — % $ 72,586 4.000 % $ 90,733 5.00 % Common equity Tier 1 165,063 10.55 % N/A — % 109,520 7.000 % 101,698 6.50 % Tier I risk-based capital 176,748 11.30 % N/A — % 132,952 8.500 % 125,131 8.00 % Total risk-based capital 249,751 15.97 % N/A — % 164,207 10.500 % 156,388 10.00 % Bank Tier I leverage $ 186,734 10.30 % N/A — % $ 72,518 4.000 % $ 90,648 5.00 % Common equity Tier 1 186,734 11.95 % N/A — % 109,384 7.000 % 101,571 6.50 % Tier I risk-based capital 186,734 11.95 % N/A — % 132,823 8.500 % 125,010 8.00 % Total risk-based capital 199,737 12.79 % N/A — % 163,975 10.500 % 156,167 10.00 % December 31, 2018 Company Tier I leverage $ 168,876 10.38 % $ 65,077 4.00 % $ 65,077 4.000 % $ 81,347 5.00 % Common equity Tier 1 157,273 11.59 % 61,064 4.50 % 86,507 6.375 % 88,203 6.50 % Tier I risk-based capital 168,876 12.44 % 81,451 6.00 % 106,905 7.875 % 108,602 8.00 % Total risk-based capital 180,193 13.28 % 108,550 8.00 % 133,991 9.875 % 135,688 10.00 % Bank Tier I leverage $ 165,308 10.17 % $ 65,018 4.00 % $ 65,018 4.000 % $ 81,272 5.00 % Common equity Tier 1 165,308 12.19 % 61,024 4.50 % 86,451 6.375 % 88,146 6.50 % Tier I risk-based capital 165,308 12.19 % 81,366 6.00 % 106,792 7.875 % 108,488 8.00 % Total risk-based capital 176,625 13.02 % 108,525 8.00 % 133,961 9.875 % 135,657 10.00 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Leased Facilities | A summary of the Company’s leased facilities (other than month-to-month agreements) follows: Base Lease Renewal Escalation Property Description (In Tennessee unless noted) Expiration Date Terms Clause 1736 Carothers Parkway, Brentwood February 28, 2025 15 years None 6005 Nolensville Road, Nashville July 31. 2021 — 3% annually 5109 Peter Taylor Park Drive, Brentwood July 31, 2021 — None 101 Creekstone Blvd., Franklin April 1, 2026 10 years None 101 Creekstone Blvd., Franklin January 31, 2022 — None 101 Creekstone Blvd., Franklin April 1, 2026 10 years 1% annually 105 Continental Place, Brentwood December 31, 2020 — 3% annually 633 Chestnut St., Chattanooga October 31, 2023 — 3% annually 633 Chestnut St., Chattanooga October 31, 2028 10 years Clause 6100 Tower Circle, Franklin December 31, 2027 — None 1835 E. Northfield Blvd., Murfreesboro September 30, 2027 5 years 3% annually 1412 Trotwood Ave., Columbia December 31, 2022 — None 4108 Hillsboro Pike, Nashville November 30, 2021 15 years None 711 E. Main Street, Hendersonville September 30, 2022 — None 376 S. Perkins Extended Memphis March 31, 2022 — None 308 Main Street, Crossett, Arkansas October 1, 2022 — None 1398 Desoto Boulevard, Hot Springs Village, Arkansas July 31, 2021 — None 9101 N. Rodney Parham Road, Little Rock, Arkansas February 28, 2021 — None 1401 Malvern Avenue, Hot Springs, Arkansas October 31, 2020 — None 51111111 John F. Kennedy Boulevard, North Little Rock, Arkansas July 31, 2020 — None |
Schedule of Future Minimum Rental Payments for Operating Leases | The Company has classified all leases as operating lease agreements for office space, copiers, and an automobile. Future minimum rental payments required under the terms of the non-cancellable leases are as follows: Year Ending December 31, 2020 $ 2,369 2021 2,474 2022 2,117 2023 1,743 2024 1,692 Thereafter 4,512 Total $ 14,907 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance-Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments with Off-Balance-Sheet Risk | The contractual amounts of financial instruments with off-balance-sheet risk at December 31, 2019 and 2018 were as follows: 2019 2018 Unused lines of credit Fixed $ 27,309 $ 44,053 Variable 308,446 209,898 Standby letters of credit 17,132 16,545 Total $ 352,887 $ 270,496 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | Summary information related to the interest rate swaps designated as cash flow hedges for the years ended December 31, 2019 and 2018 is as follows: 2019 2018 Notional amounts $ 110,000 $ 60,000 Weighted average pay rates 2.428 % 3.340 % Weighted average receive rates 2.114 % 2.860 % Weighted average maturity 3.84 years 4.47 years Unrealized losses $ 2,078 $ 1,153 |
Schedule of Net Gain (Losses) Related to Derivative Instruments | Fair Value Hedges The following table reflects the fair value hedges included in the Consolidated Statements of Operations as of December 31: Interest rate contracts Location 2019 2018 2017 Change in fair value on interest rate swaps hedging investments Interest income $ (1,067 ) $ 462 $ 47 Cash Flow Hedges The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Operations relating to the cash flow derivative instruments for the years ended: Amount of Gain (Loss) Recognized in OCI Amount of Gain (Loss) Reclassified from OCI to Interest Income Amount of Gain (Loss) Recognized in Other Non-Interest Income (Ineffective Portion) December 31, 2017 Interest rate contracts $ — $ — $ — December 31, 2018 Interest rate contracts (1,153 ) — — December 31, 2019 Interest rate contracts $ (2,078 ) $ — $ — |
Schedule of Cash Flow Hedges Included in the Consolidated Balance Sheets | The following table reflects the cash flow hedges included in the Consolidated Balance Sheets as of December 31, 2019 and 2018 : 2019 2018 Notional Amount Fair Value Notional Amount Fair Value Included in other assets: Total included in other assets $ — $ — $ — $ — Included in other liabilities: Interest rate swaps related to subordinate debentures $ 10,000 $ 439 $ 10,000 $ 174 Interest rate swaps related to Time Deposits 100,000 1,639 — — Federal Home Loan Bank borrowings — — 50,000 979 Total included in other liabilities $ 110,000 $ 2,078 $ 60,000 $ 1,153 |
Schedule of Fair Value Hedging Included in the Consolidated Balance Sheets | The following table reflects the fair value hedges included in the Consolidated Balance Sheets as of December 31: 2019 2018 Notional Amount Fair Value Notional Amount Fair Value Included in other assets: Interest rate swaps related to investments $ — $ — $ 16,902 $ 467 Total included in other assets $ — $ — $ 16,902 $ 467 Included in other liabilities: Interest rate swaps related to investments $ 19,605 $ 630 $ 4,203 $ 30 Total included in other liabilities $ 19,605 $ 630 $ 4,203 $ 30 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of the Components Comprising Basic and Diluted Earnings Per Share | The following is a summary of the components comprising basic and diluted earnings per common share of stock (EPS) for the years ended December 31, 2019, 2018 and 2017: Year Ended 2019 2018 2017 Basic EPS Computation Net income attributable to common shareholders $ 16,196 $ 14,085 $ 7,246 Weighted average common shares outstanding 11,212,127 11,389,122 8,151,792 Basic earnings per common share $ 1.44 $ 1.24 $ 0.89 Diluted EPS Computation Net income attributable to common shareholders $ 16,196 $ 14,085 $ 7,246 Weighted average common shares outstanding 11,212,127 11,389,122 8,151,792 Dilutive effect of stock options and restricted shares 69,135 79,667 87,809 Adjusted weighted average common shares outstanding 11,281,262 11,468,789 8,239,601 Diluted earnings per common share $ 1.44 $ 1.23 $ 0.88 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Results of Operations by Business Segment | The following tables present summarized results of operations for the Company’s business segments: Year Ended December 31, 2019 Retail Banking Residential Mortgage Banking Elimination Entries Consolidated Net interest income $ 55,252 $ 553 $ — $ 55,805 Provision for loan losses 1,211 — — 1,211 Noninterest income 7,059 5,086 (181 ) 11,964 Noninterest expense 42,382 11,510 — 53,892 Income tax expense (benefit) 2,522 (393 ) — 2,129 Net income (loss) 16,196 (5,478 ) (181 ) 10,537 Noncontrolling interest in net loss of subsidiary — 5,478 181 5,659 Net income attributable to common shareholders $ 16,196 $ — $ — $ 16,196 Year Ended December 31, 2018 Retail Banking Residential Mortgage Banking Elimination Entries Consolidated Net interest income $ 53,008 $ 821 $ — $ 53,829 Provision for loan losses 1,035 — — 1,035 Noninterest income 5,232 4,595 (181 ) 9,646 Noninterest expense 41,512 9,049 — 50,561 Income tax expense (benefit) 1,608 (236 ) — 1,372 Net income 14,085 (3,397 ) (181 ) 10,507 Noncontrolling interest in net income of subsidiary — 3,397 181 3,578 Net income attributable to common shareholders $ 14,085 $ — $ — $ 14,085 Year Ended December 31, 2017 Retail Banking Residential Mortgage Banking Elimination Entries Consolidated Net interest income $ 33,761 $ 726 $ — $ 34,487 Provision for loan losses 1,316 — — 1,316 Noninterest income 2,333 3,805 (128 ) 6,010 Noninterest expense 25,524 5,552 — 31,076 Income tax expense (benefit) 2,008 (66 ) — 1,942 Net income 7,246 (955 ) (128 ) 6,163 Noncontrolling interest in net income of subsidiary — 955 128 1,083 Net income attributable to common shareholders $ 7,246 $ — $ — $ 7,246 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Calculation and Allocation of Purchase Price | The following table details the financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed and goodwill recognized: Calculation of Purchase Price Shares of Community First, Inc. common stock outstanding as of January 1, 2018 5,025,884 Exchange ratio for Reliant Bancorp, Inc. common stock 0.481 Share conversion 2,417,450 Reliant Bancorp, Inc. common stock shares issued 2,416,444 Reliant Bancorp, Inc. share price at December 29, 2017 $ 25.64 Value of Reliant Bancorp, Inc. common stock shares issued $ 61,958 Value of fractional shares $ 25 Estimated fair value of Community First, Inc. $ 61,983 NOTE 22 - BUSINESS COMBINATION (CONTINUED) Allocation of Purchase Price Total consideration above $ 61,983 Fair value of assets acquired and liabilities assumed Cash and cash equivalents (33,128 ) Time deposits in other financial institutions (23,309 ) Investment securities available for sale (69,078 ) Loans, net of unearned income (313,040 ) Mortgage loans held for sale, net (910 ) Accrued interest receivable (1,165 ) Premises and equipment (9,585 ) Restricted equity securities (1,726 ) Cash surrender value of life insurance contracts (10,664 ) Other real estate owned (1,650 ) Deferred tax asset, net (4,885 ) Core deposit intangible (7,888 ) Other assets (1,795 ) Deposits—noninterest-bearing 80,395 Deposits—interest-bearing 352,100 Other borrowings 11,522 Payables and other liabilities 5,061 Net liabilities assumed (net assets acquired) (29,745 ) Goodwill $ 32,238 |
Schedule of Pro Forma Data | Pro forma data for the year ended December 31, 2017 , in the table below presents information as if the merger occurred at the beginning of the year. Net interest income $ 51,031 Net income attributable to common shareholders $ 6,387 Earnings per share - basic $ 0.60 Earnings per share - diluted $ 0.60 |
Quarterly Financial Results (_2
Quarterly Financial Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Results | The following is a summary of consolidated quarterly financial results for the year ended December 31, 2019 : First Second Third Fourth Interest income $ 18,843 $ 19,692 $ 20,211 $ 20,439 Net interest income 13,461 13,813 14,064 14,467 Consolidated net income 2,281 2,684 2,614 2,958 Noncontrolling interest in net loss of subsidiary 1,543 1,555 1,386 1,175 Net income attributable to common shareholders 3,824 4,239 4,000 4,133 Basic earnings per share $ 0.34 $ 0.38 $ 0.36 $ 0.37 Diluted earnings per share $ 0.33 $ 0.38 $ 0.36 $ 0.37 The following is a summary of consolidated quarterly financial results for the year ended December 31, 2018 : First Second Third Fourth Interest income $ 16,362 $ 16,830 $ 17,570 $ 18,463 Net interest income 13,382 13,404 13,466 13,577 Consolidated net income 3,277 1,202 3,240 2,788 Noncontrolling interest in net loss of subsidiary 464 937 842 1,335 Net income attributable to common shareholders 3,741 2,139 4,082 4,123 Basic earnings per share $ 0.33 $ 0.19 $ 0.36 $ 0.36 Diluted earnings per share $ 0.33 $ 0.19 $ 0.36 $ 0.36 The following is a summary of consolidated quarterly financial results for the year ended December 31, 2017 : First Second Third Fourth Interest income $ 8,973 $ 9,704 $ 10,627 $ 10,854 Net interest income 7,971 8,503 9,096 8,917 Consolidated net income 1,559 1,794 1,840 970 Noncontrolling interest in net loss of subsidiary 499 393 6 185 Net income attributable to common shareholders 2,058 2,187 1,846 1,155 Basic earnings per share $ 0.27 $ 0.28 $ 0.23 $ 0.13 Diluted earnings per share $ 0.26 $ 0.28 $ 0.22 $ 0.13 |
Parent Company Condensed Fina_2
Parent Company Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Balance Sheet | The following tables present parent company condensed financial statements for Reliant Bancorp, Inc.: CONDENSED BALANCE SHEET DECEMBER 31, 2019 2018 ASSETS Cash and cash equivalents $ 46,997 $ 1,985 Investment in subsidiaries 255,049 225,446 Other assets 2,851 3,447 Total assets $ 304,897 $ 230,878 LIABILITIES AND SHAREHOLDERS' EQUITY Dividend payable $ 76 $ 1,036 Accrued expenses and other liabilities 735 406 Subordinate debentures 80,333 21,022 Shareholders' equity 223,753 208,414 Total liabilities and shareholders' equity $ 304,897 $ 230,878 |
Condensed Income Statement | The following tables present parent company condensed financial statements for Reliant Bancorp, Inc.: CONDENSED STATEMENT OF INCOME YEARS ENDED DECEMBER 31, 2019 2018 2017 Dividends from subsidiaries $ 6,800 $ 7,521 $ 2,141 Interest expense 1,520 1,277 — Other expense 3,619 4,775 2,920 Income before income tax and undistributed income from subsidiaries 1,661 1,469 (779 ) Income tax expense (benefit) (1,123 ) (1,537 ) (922 ) Equity in undistributed income from subsidiaries 13,412 11,079 7,103 Net income attributable to common shareholders $ 16,196 $ 14,085 $ 7,246 |
Condensed Cash Flow Statement | CONDENSED STATEMENT OF CASH FLOWS YEARS ENDED DECEMBER 31, 2019 2018 2017 Cash flows from operating activities Net income attributable to common shareholders $ 16,196 $ 14,085 $ 7,246 Reclassification of federal income tax rate change — — (245 ) Adjustments: Equity in undistributed income from subsidiaries (13,412 ) (11,079 ) (7,103 ) Accretion related to subordinated debentures 113 969 — Change in other assets 596 (1,333 ) 790 Change in other liabilities 130 (230 ) 595 Net cash from operating activities 3,623 2,412 1,283 Cash flows from investing activities Investment in subsidiary (6,017 ) — (21,195 ) Net cash used in investing activities (6,017 ) — (21,195 ) Cash flows from financing activities Issuance of subordinated debentures, net of issuance costs 59,198 — — Dividends paid (4,013 ) (3,451 ) (3,193 ) Redemption of common stock (8,379 ) (6 ) — Proceeds from equity issuances, net 600 1,321 24,648 Net cash from (used in) financing activities 47,406 (2,136 ) 21,455 Net change in cash and cash equivalents 45,012 276 1,543 Beginning cash and cash equivalents 1,985 1,709 166 Ending cash and cash equivalents $ 46,997 $ 1,985 $ 1,709 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2020 | Dec. 31, 2011 | Nov. 15, 2011 | |
Noncontrolling Interest [Line Items] | ||||||
Cumulative net loss in joint ventures | $ 13,409 | |||||
Federal funds sold | 52 | $ 371 | ||||
Valuation allowance attributable to mortgage loans held for sale | $ 160 | |||||
Advertising expense | $ 1,293 | $ 600 | 264 | |||
Accounting Standards Update 2016-02 | Subsequent Event | ||||||
Noncontrolling Interest [Line Items] | ||||||
Operating lease, right-of-use asset | $ 12,032 | |||||
Operating lease, liability | $ 12,032 | |||||
Accounting Standards Update 2018-02 | Retained Earnings | ||||||
Noncontrolling Interest [Line Items] | ||||||
Tax cuts and jobs act of 2017, reclassification from AOCI to retained earnings, tax effect | (245) | |||||
Accounting Standards Update 2018-02 | Accumulated Other Comprehensive Income | ||||||
Noncontrolling Interest [Line Items] | ||||||
Tax cuts and jobs act of 2017, reclassification from AOCI to retained earnings, tax effect | $ 245 | |||||
401K Plan | ||||||
Noncontrolling Interest [Line Items] | ||||||
Maximum annual contributions per employee, percent | 100.00% | |||||
Employer matching contribution, percent of match | 100.00% | |||||
Employer matching contribution, percent of employees gross pay | 6.00% | |||||
Employers matching contribution, annual vesting percentage | 100.00% | |||||
Buildings | Minimum | ||||||
Noncontrolling Interest [Line Items] | ||||||
Property, plant and equipment, useful life | 30 years | |||||
Buildings | Maximum | ||||||
Noncontrolling Interest [Line Items] | ||||||
Property, plant and equipment, useful life | 40 years | |||||
Leasehold improvements | Minimum | ||||||
Noncontrolling Interest [Line Items] | ||||||
Property, plant and equipment, useful life | 3 years | |||||
Leasehold improvements | Maximum | ||||||
Noncontrolling Interest [Line Items] | ||||||
Property, plant and equipment, useful life | 25 years | |||||
Furniture, Fixtures and Equipment | Minimum | ||||||
Noncontrolling Interest [Line Items] | ||||||
Property, plant and equipment, useful life | 3 years | |||||
Furniture, Fixtures and Equipment | Maximum | ||||||
Noncontrolling Interest [Line Items] | ||||||
Property, plant and equipment, useful life | 7 years | |||||
Reliant Investment Holdings, LLC | ||||||
Noncontrolling Interest [Line Items] | ||||||
Ownership interest | 100.00% | |||||
Reliant Mortgage Ventures, LLC | ||||||
Noncontrolling Interest [Line Items] | ||||||
Noncontrolling interest, ownership percentage by parent | 51.00% | 51.00% | ||||
Profit share percentage in joint venture | 30.00% | |||||
VHC Fund 1, LLC | Reliant Mortgage Ventures, LLC | ||||||
Noncontrolling Interest [Line Items] | ||||||
Profit share percentage in joint venture | 70.00% | |||||
Operating loss, percentage share in joint venture | 100.00% | 100.00% | 100.00% | 100.00% |
Securities - Available-for-Sale
Securities - Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 250,722 | $ 300,594 |
Gross Unrealized Gains | 10,806 | 913 |
Gross Unrealized Losses | (1,235) | (5,184) |
Estimated Fair Value | 260,293 | 296,323 |
U. S. Treasury and other U. S. government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 59 | 568 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (14) |
Estimated Fair Value | 59 | 554 |
State and municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 186,283 | 232,589 |
Gross Unrealized Gains | 10,413 | 879 |
Gross Unrealized Losses | (36) | (4,170) |
Estimated Fair Value | 196,660 | 229,298 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,880 | 3,130 |
Gross Unrealized Gains | 97 | 0 |
Gross Unrealized Losses | (132) | (113) |
Estimated Fair Value | 7,845 | 3,017 |
Mortgage backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 38,126 | 32,172 |
Gross Unrealized Gains | 296 | 34 |
Gross Unrealized Losses | (661) | (248) |
Estimated Fair Value | 37,761 | 31,958 |
Asset backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 18,374 | 28,635 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (406) | (639) |
Estimated Fair Value | $ 17,968 | 27,996 |
Time deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,500 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | $ 3,500 |
Securities - Narrative (Details
Securities - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Held-to-maturity securities | $ 0 | $ 0 | |
Number of securities in unrealized loss position | security | 47 | 242 | |
Trading securities, realized gain | $ 1,810,000 | $ 82,000 | $ 97,000 |
Trading securities, realized loss | 359,000 | 39,000 | $ 38,000 |
Securities pledged, market value | $ 46,918,000 | $ 70,097,000 | |
Number of securities of single issuer with book value greater than ten percent of stockholders' equity | security | 0 | 0 |
Securities - Available-for-Sa_2
Securities - Available-for-Sale Securities Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due within one year | $ 999 | |
Due in one to five years | 2,414 | |
Due in five to ten years | 10,301 | |
Due after ten years | 180,508 | |
Amortized Cost | 250,722 | $ 300,594 |
Estimated Fair Value | ||
Due within one year | 1,000 | |
Due in one to five years | 2,285 | |
Due in five to ten years | 10,834 | |
Due after ten years | 190,445 | |
Estimated Fair Value | 260,293 | 296,323 |
Mortgage backed securities | ||
Amortized Cost | ||
Securities | 38,126 | |
Amortized Cost | 38,126 | 32,172 |
Estimated Fair Value | ||
Securities | 37,761 | |
Estimated Fair Value | 37,761 | 31,958 |
Asset backed securities | ||
Amortized Cost | ||
Securities | 18,374 | |
Amortized Cost | 18,374 | 28,635 |
Estimated Fair Value | ||
Securities | 17,968 | |
Estimated Fair Value | $ 17,968 | $ 27,996 |
Securities - Schedule of Tempor
Securities - Schedule of Temporary Impairment Losses, Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Estimated Fair Value | ||
Less than 12 months | $ 18,064 | $ 158,472 |
12 months or more | 29,262 | 60,922 |
Total | 47,326 | 219,394 |
Unrealized Loss | ||
Less than 12 months | 322 | 2,850 |
12 months or more | 913 | 2,334 |
Total | 1,235 | 5,184 |
U. S. Treasury and other U. S. government agencies | ||
Estimated Fair Value | ||
Less than 12 months | 0 | |
12 months or more | 555 | |
Total | 555 | |
Unrealized Loss | ||
Less than 12 months | 0 | |
12 months or more | 14 | |
Total | 14 | |
State and municipal | ||
Estimated Fair Value | ||
Less than 12 months | 1,960 | 118,580 |
12 months or more | 0 | 47,223 |
Total | 1,960 | 165,803 |
Unrealized Loss | ||
Less than 12 months | 36 | 2,263 |
12 months or more | 0 | 1,907 |
Total | 36 | 4,170 |
Corporate bonds | ||
Estimated Fair Value | ||
Less than 12 months | 0 | 2,526 |
12 months or more | 2,499 | 492 |
Total | 2,499 | 3,018 |
Unrealized Loss | ||
Less than 12 months | 0 | 105 |
12 months or more | 132 | 8 |
Total | 132 | 113 |
Mortgage backed securities | ||
Estimated Fair Value | ||
Less than 12 months | 16,104 | 17,015 |
12 months or more | 9,081 | 5,397 |
Total | 25,185 | 22,412 |
Unrealized Loss | ||
Less than 12 months | 286 | 99 |
12 months or more | 375 | 149 |
Total | 661 | 248 |
Asset backed securities | ||
Estimated Fair Value | ||
Less than 12 months | 0 | 20,351 |
12 months or more | 17,682 | 7,255 |
Total | 17,682 | 27,606 |
Unrealized Loss | ||
Less than 12 months | 0 | 383 |
12 months or more | 406 | 256 |
Total | $ 406 | $ 639 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Loss - Schedule of Loans and Financial Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 1,410,024 | $ 1,231,067 | ||
Less | ||||
Deferred loan fees (costs) | 72 | (9) | ||
Allowance for possible loan losses | 12,578 | 10,892 | $ 9,731 | $ 9,082 |
Loans, net | 1,397,374 | 1,220,184 | ||
Commercial, Industrial and Agricultural | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 245,515 | 213,850 | ||
Less | ||||
Allowance for possible loan losses | 2,529 | 1,751 | 2,538 | 2,432 |
Real Estate | 1-4 Family Residential | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 227,529 | 225,863 | ||
Less | ||||
Allowance for possible loan losses | 1,280 | 1,333 | 773 | 1,178 |
Real Estate | 1-4 Family HELOC | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 96,228 | 88,112 | ||
Less | ||||
Allowance for possible loan losses | 624 | 656 | 595 | 704 |
Real Estate | Multi-family and Commercial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 536,845 | 447,840 | ||
Less | ||||
Allowance for possible loan losses | 5,285 | 4,429 | 3,166 | 2,737 |
Real Estate | Construction, Land Development and Farmland | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 273,872 | 220,801 | ||
Less | ||||
Allowance for possible loan losses | 2,649 | 2,500 | 2,434 | 1,786 |
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 16,855 | 20,495 | ||
Less | ||||
Allowance for possible loan losses | 177 | 184 | 183 | 208 |
Other | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 13,180 | 14,106 | ||
Less | ||||
Allowance for possible loan losses | $ 34 | $ 39 | $ 42 | $ 37 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Loss - Narrative (Details) | Dec. 21, 2018contract | Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | Dec. 31, 2017USD ($)contract |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Discount on loans purchased | $ 2,909,000 | $ 4,525,000 | ||
Non-accrual loans | 4,071,000 | 4,194,000 | ||
Interest income recognized on impaired loans | $ 490,000 | 583,000 | $ 703,000 | |
Loans past due 90 days or more and still accruing interest | 6,000 | |||
Loan modifications, number of restructured loans | contract | 5 | |||
Impaired loans, troubled debt restructuring, charge off | $ 76,000 | |||
Loan modifications, number of contracts | contract | 2 | 2 | ||
Subsequent defaults on loans modified in troubled debt restructurings | contract | 0 | 0 | 0 | |
Payment of loans with non-accretable purchase discounts | $ 25 | $ 146,000 | $ 354,000 | |
Decrease in allowance for loan losses | 4,000 | 2,000 | ||
Partial charge-off and payment restructure | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Impaired loans, troubled debt restructuring, charge off | 470,000 | |||
Loan modifications, recorded investment | 308,000 | |||
Payment deferral | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loan modifications, recorded investment | $ 108,000 | |||
Performing Financial Instruments | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Non-accrual loans | $ 1,332,000 | 2,010,000 | ||
Real Estate | Multi-family and Commercial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Percentage of loans secured by owner occupied properties | 22.00% | |||
Non-accrual loans | $ 1,276,000 | $ 0 | ||
Loan modifications, number of contracts | contract | 1 | |||
Real Estate | Multi-family and Commercial | Minimum | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Percentage of loans in repayment | 50.00% | |||
Real Estate | 1-4 Family Residential | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Non-accrual loans | $ 1,344,000 | $ 2,556,000 | ||
Loan modifications, number of contracts | contract | 1 | |||
Proceeds from collection of finance receivable | $ 1,254,000 | |||
Real Estate | 1-4 Family Residential | Minimum | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loan facility, amortization period | 15 years | |||
Loans commitment, maturity period | 5 years | |||
Real Estate | 1-4 Family Residential | Maximum | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loan facility, amortization period | 30 years | |||
Loans commitment, maturity period | 15 years | |||
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Non-accrual loans | $ 28,000 | $ 65,000 | ||
Consumer | Minimum | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Repayment period | 1 year | |||
Consumer | Maximum | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Repayment period | 5 years |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Loss - Schedule of Allowances for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 10,892 | $ 9,731 | $ 9,082 |
Charge-offs | (570) | (787) | (1,071) |
Recoveries | 1,045 | 913 | 404 |
Provision | 1,211 | 1,035 | 1,316 |
Ending balance | 12,578 | 10,892 | 9,731 |
Commercial Industrial and Agricultural | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1,751 | 2,538 | 2,432 |
Charge-offs | (396) | (381) | (976) |
Recoveries | 393 | 590 | 378 |
Provision | 781 | (996) | 704 |
Ending balance | 2,529 | 1,751 | 2,538 |
Real Estate | Multi-family and Commercial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 4,429 | 3,166 | 2,737 |
Charge-offs | 0 | (76) | 0 |
Recoveries | 65 | 221 | 0 |
Provision | 791 | 1,118 | 429 |
Ending balance | 5,285 | 4,429 | 3,166 |
Real Estate | Construction, Land Development and Farmland | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 2,500 | 2,434 | 1,786 |
Charge-offs | (60) | (215) | (45) |
Recoveries | 0 | 44 | 5 |
Provision | 209 | 237 | 688 |
Ending balance | 2,649 | 2,500 | 2,434 |
Real Estate | 1-4 Family Residential | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1,333 | 773 | 1,178 |
Charge-offs | (29) | (36) | (14) |
Recoveries | 225 | 12 | 0 |
Provision | (249) | 584 | (391) |
Ending balance | 1,280 | 1,333 | 773 |
Real Estate | 1-4 Family HELOC | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 656 | 595 | 704 |
Charge-offs | 0 | (6) | 0 |
Recoveries | 12 | 10 | 19 |
Provision | (44) | 57 | (128) |
Ending balance | 624 | 656 | 595 |
Consumer | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 184 | 183 | 208 |
Charge-offs | (50) | (26) | (36) |
Recoveries | 51 | 34 | 2 |
Provision | (8) | (7) | 9 |
Ending balance | 177 | 184 | 183 |
Other | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 39 | 42 | 37 |
Charge-offs | (35) | (47) | 0 |
Recoveries | 299 | 2 | 0 |
Provision | (269) | 42 | 5 |
Ending balance | $ 34 | $ 39 | $ 42 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Loss - Allowance for Loan Losses and Recorded Investment by Portfolio Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Allowance for loan losses | ||||
Individually evaluated for impairment | $ 772 | $ 55 | ||
Acquired with credit impairment | 0 | 0 | ||
Collectively evaluated for impairment | 11,806 | 10,837 | ||
Total | 12,578 | 10,892 | $ 9,731 | $ 9,082 |
Loans | ||||
Individually evaluated for impairment | 6,262 | 5,176 | ||
Acquired with credit impairment | 1,223 | 2,296 | ||
Collectively evaluated for impairment | 1,402,539 | 1,223,595 | ||
Total | 1,410,024 | 1,231,067 | ||
Commercial Industrial and Agricultural | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 755 | 38 | ||
Acquired with credit impairment | 0 | 0 | ||
Collectively evaluated for impairment | 1,774 | 1,713 | ||
Total | 2,529 | 1,751 | 2,538 | 2,432 |
Loans | ||||
Individually evaluated for impairment | 1,154 | 978 | ||
Acquired with credit impairment | 0 | 40 | ||
Collectively evaluated for impairment | 244,361 | 212,832 | ||
Total | 245,515 | 213,850 | ||
Real Estate | Multi-family and Commercial | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 0 | 0 | ||
Acquired with credit impairment | 0 | 0 | ||
Collectively evaluated for impairment | 5,285 | 4,429 | ||
Total | 5,285 | 4,429 | 3,166 | 2,737 |
Loans | ||||
Individually evaluated for impairment | 2,396 | 1,160 | ||
Acquired with credit impairment | 215 | 232 | ||
Collectively evaluated for impairment | 534,234 | 446,448 | ||
Total | 536,845 | 447,840 | ||
Real Estate | Construction, Land Development and Farmland | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 17 | 17 | ||
Acquired with credit impairment | 0 | 0 | ||
Collectively evaluated for impairment | 2,632 | 2,483 | ||
Total | 2,649 | 2,500 | 2,434 | 1,786 |
Loans | ||||
Individually evaluated for impairment | 1,218 | 1,780 | ||
Acquired with credit impairment | 813 | 1,751 | ||
Collectively evaluated for impairment | 271,841 | 217,270 | ||
Total | 273,872 | 220,801 | ||
Real Estate | 1-4 Family Residential | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 0 | 0 | ||
Acquired with credit impairment | 0 | 0 | ||
Collectively evaluated for impairment | 1,280 | 1,333 | ||
Total | 1,280 | 1,333 | 773 | 1,178 |
Loans | ||||
Individually evaluated for impairment | 1,120 | 1,246 | ||
Acquired with credit impairment | 195 | 262 | ||
Collectively evaluated for impairment | 226,214 | 224,355 | ||
Total | 227,529 | 225,863 | ||
Real Estate | 1-4 Family HELOC | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 0 | 0 | ||
Acquired with credit impairment | 0 | 0 | ||
Collectively evaluated for impairment | 624 | 656 | ||
Total | 624 | 656 | 595 | 704 |
Loans | ||||
Individually evaluated for impairment | 374 | 0 | ||
Acquired with credit impairment | 0 | 0 | ||
Collectively evaluated for impairment | 95,854 | 88,112 | ||
Total | 96,228 | 88,112 | ||
Consumer | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 0 | 0 | ||
Acquired with credit impairment | 0 | 0 | ||
Collectively evaluated for impairment | 177 | 184 | ||
Total | 177 | 184 | 183 | 208 |
Loans | ||||
Individually evaluated for impairment | 0 | 12 | ||
Acquired with credit impairment | 0 | 11 | ||
Collectively evaluated for impairment | 16,855 | 20,472 | ||
Total | 16,855 | 20,495 | ||
Other | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 0 | 0 | ||
Acquired with credit impairment | 0 | 0 | ||
Collectively evaluated for impairment | 34 | 39 | ||
Total | 34 | 39 | $ 42 | $ 37 |
Loans | ||||
Individually evaluated for impairment | 0 | 0 | ||
Acquired with credit impairment | 0 | 0 | ||
Collectively evaluated for impairment | 13,180 | 14,106 | ||
Total | $ 13,180 | $ 14,106 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Loss - Summary of Non-accrual Loans by Class of Loan (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | $ 4,071 | $ 4,194 |
Commercial Industrial and Agricultural | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | 572 | 279 |
Real Estate | Multi-family and Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | 1,276 | 0 |
Real Estate | Construction, Land Development and Farmland | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | 555 | 1,294 |
Real Estate | 1-4 Family Residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | 1,344 | 2,556 |
Real Estate | 1-4 Family HELOC | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | 296 | 0 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | $ 28 | $ 65 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Loss - Summary of Individually Impaired Loans by Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Unpaid Principal Balance | $ 7,921 | $ 9,109 | $ 16,089 |
Recorded Investment with no Allowance Recorded | 6,160 | 7,047 | 11,535 |
Recorded Investment with Allowance Recorded | 1,325 | 425 | 2,953 |
Total Recorded Investment | 7,485 | 7,472 | 14,488 |
Related Allowance | 772 | 55 | 667 |
Commercial Industrial and Agricultural | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Unpaid Principal Balance | 1,154 | 1,247 | 4,398 |
Recorded Investment with no Allowance Recorded | 0 | 765 | 2,959 |
Recorded Investment with Allowance Recorded | 1,154 | 253 | 966 |
Total Recorded Investment | 1,154 | 1,018 | 3,925 |
Related Allowance | 755 | 38 | 608 |
Real Estate | Multi-family and Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Unpaid Principal Balance | 2,624 | 1,670 | 3,427 |
Recorded Investment with no Allowance Recorded | 2,611 | 1,392 | 3,078 |
Recorded Investment with Allowance Recorded | 0 | 0 | 0 |
Total Recorded Investment | 2,611 | 1,392 | 3,078 |
Related Allowance | 0 | 0 | 0 |
Real Estate | Construction, Land Development and Farmland | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Unpaid Principal Balance | 2,348 | 3,920 | 5,317 |
Recorded Investment with no Allowance Recorded | 1,860 | 3,359 | 3,249 |
Recorded Investment with Allowance Recorded | 171 | 172 | 1,987 |
Total Recorded Investment | 2,031 | 3,531 | 5,236 |
Related Allowance | 17 | 17 | 59 |
Real Estate | 1-4 Family Residential | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Unpaid Principal Balance | 1,419 | 2,243 | 2,857 |
Recorded Investment with no Allowance Recorded | 1,315 | 1,508 | 2,159 |
Recorded Investment with Allowance Recorded | 0 | 0 | 0 |
Total Recorded Investment | 1,315 | 1,508 | 2,159 |
Related Allowance | 0 | 0 | 0 |
Real Estate | 1-4 Family HELOC | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Unpaid Principal Balance | 376 | 90 | |
Recorded Investment with no Allowance Recorded | 374 | 90 | |
Recorded Investment with Allowance Recorded | 0 | 0 | |
Total Recorded Investment | 374 | 90 | |
Related Allowance | $ 0 | $ 0 | |
Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Unpaid Principal Balance | 29 | ||
Recorded Investment with no Allowance Recorded | 23 | ||
Recorded Investment with Allowance Recorded | 0 | ||
Total Recorded Investment | 23 | ||
Related Allowance | $ 0 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Loss - Summary of Average Recorded Investment in Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Average recorded investment in impaired loans | $ 8,705 | $ 11,872 | $ 16,861 |
Commercial Industrial and Agricultural | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Average recorded investment in impaired loans | 1,767 | 2,333 | 5,225 |
Real Estate | Multi-family and Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Average recorded investment in impaired loans | 2,580 | 2,366 | 4,138 |
Real Estate | Construction, Land Development and Farmland | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Average recorded investment in impaired loans | 2,462 | 4,571 | 4,502 |
Real Estate | 1-4 Family Residential | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Average recorded investment in impaired loans | 1,686 | 2,468 | 2,212 |
Real Estate | 1-4 Family HELOC | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Average recorded investment in impaired loans | 208 | 72 | 784 |
Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Average recorded investment in impaired loans | $ 2 | $ 62 | $ 0 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Loss - Summary of Credit Quality Indicators by Class of Loan (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 1,410,024 | $ 1,231,067 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,395,885 | 1,216,941 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,901 | 4,839 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 10,238 | 9,287 |
Commercial Industrial and Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 245,515 | 213,850 |
Commercial Industrial and Agricultural | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 241,089 | 212,761 |
Commercial Industrial and Agricultural | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,382 | 0 |
Commercial Industrial and Agricultural | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,044 | 1,089 |
Real Estate | 1-4 Family Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 227,529 | 225,863 |
Real Estate | 1-4 Family Residential | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 225,809 | 221,546 |
Real Estate | 1-4 Family Residential | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 1,125 |
Real Estate | 1-4 Family Residential | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,720 | 3,192 |
Real Estate | 1-4 Family HELOC | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 96,228 | 88,112 |
Real Estate | 1-4 Family HELOC | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 95,678 | 88,112 |
Real Estate | 1-4 Family HELOC | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Real Estate | 1-4 Family HELOC | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 550 | 0 |
Real Estate | Multi-family and Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 536,845 | 447,840 |
Real Estate | Multi-family and Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 531,055 | 442,127 |
Real Estate | Multi-family and Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,519 | 3,135 |
Real Estate | Multi-family and Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 4,271 | 2,578 |
Real Estate | Construction, Land Development and Farmland | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 273,872 | 220,801 |
Real Estate | Construction, Land Development and Farmland | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 272,440 | 218,053 |
Real Estate | Construction, Land Development and Farmland | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 579 |
Real Estate | Construction, Land Development and Farmland | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,432 | 2,169 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 16,855 | 20,495 |
Consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 16,634 | 20,236 |
Consumer | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Consumer | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 221 | 259 |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 13,180 | 14,106 |
Other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 13,180 | 14,106 |
Other | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 0 | $ 0 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Loss - Summary of Past Due (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Past Due | $ 3,682 | $ 3,722 |
Current | 1,406,342 | 1,227,345 |
Total | 1,410,024 | 1,231,067 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1,358 | 1,401 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 266 | 622 |
90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 2,058 | 1,699 |
Commercial Industrial and Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 655 | 454 |
Current | 244,860 | 213,396 |
Total | 245,515 | 213,850 |
Commercial Industrial and Agricultural | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 79 | 22 |
Commercial Industrial and Agricultural | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 4 | 153 |
Commercial Industrial and Agricultural | 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 572 | 279 |
Real Estate | 1-4 Family Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 966 | 2,642 |
Current | 226,563 | 223,221 |
Total | 227,529 | 225,863 |
Real Estate | 1-4 Family Residential | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 501 | 1,104 |
Real Estate | 1-4 Family Residential | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 236 | 335 |
Real Estate | 1-4 Family Residential | 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 229 | 1,203 |
Real Estate | 1-4 Family HELOC | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 296 | 50 |
Current | 95,932 | 88,062 |
Total | 96,228 | 88,112 |
Real Estate | 1-4 Family HELOC | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 50 |
Real Estate | 1-4 Family HELOC | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Real Estate | 1-4 Family HELOC | 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 296 | 0 |
Real Estate | Multi-family and Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1,043 | 104 |
Current | 535,802 | 447,736 |
Total | 536,845 | 447,840 |
Real Estate | Multi-family and Commercial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 485 | 0 |
Real Estate | Multi-family and Commercial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 104 |
Real Estate | Multi-family and Commercial | 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 558 | 0 |
Real Estate | Construction, Land Development and Farmland | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 594 | 385 |
Current | 273,278 | 220,416 |
Total | 273,872 | 220,801 |
Real Estate | Construction, Land Development and Farmland | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 255 | 214 |
Real Estate | Construction, Land Development and Farmland | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Real Estate | Construction, Land Development and Farmland | 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 339 | 171 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 128 | 87 |
Current | 16,727 | 20,408 |
Total | 16,855 | 20,495 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 38 | 11 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 26 | 30 |
Consumer | 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 64 | 46 |
Other | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Current | 13,180 | 14,106 |
Total | 13,180 | 14,106 |
Other | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Other | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Other | 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | $ 0 | $ 0 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Loss - Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)contract | Dec. 31, 2017USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 2 | 2 |
Pre-Modification Outstanding Recorded Investments | $ 1,915 | $ 2,110 |
Post-Modification Outstanding Recorded Investments | $ 1,839 | $ 1,640 |
Real Estate | 1-4 Family Residential | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 1 | |
Pre-Modification Outstanding Recorded Investments | $ 1,254 | |
Post-Modification Outstanding Recorded Investments | $ 1,254 | |
Real Estate | Multi-family and Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 1 | |
Pre-Modification Outstanding Recorded Investments | $ 661 | |
Post-Modification Outstanding Recorded Investments | $ 585 | |
Real Estate | Construction, Land Development and Farmland | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 2 | |
Pre-Modification Outstanding Recorded Investments | $ 2,110 | |
Post-Modification Outstanding Recorded Investments | $ 1,640 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Loss - Summary of Carrying Amount of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | $ 1,469 | $ 2,596 |
Less remaining purchase discount | 246 | 300 |
Allowance for loan losses | 0 | 0 |
Carrying amount, net of allowance | 1,223 | 2,296 |
Commercial Industrial and Agricultural | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | 0 | 63 |
Real Estate | Multi-family and Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | 217 | 233 |
Real Estate | Construction, Land Development and Farmland | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | 1,021 | 1,958 |
Real Estate | 1-4 Family Residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | 231 | 324 |
Real Estate | 1-4 Family HELOC | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | 0 | 0 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | $ 0 | $ 18 |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Loss - Activity Related to Accretable Portion of Loans Acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Balance | $ 110 | $ 0 | $ 87 |
New loans purchased | 0 | 260 | 0 |
Loan charge offs | (12) | (104) | 0 |
Accretion income | 0 | (46) | (87) |
Balance | $ 98 | $ 110 | $ 0 |
Loans and Allowance for Loan_15
Loans and Allowance for Loan Loss - Loans to Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
Balance | $ 7,394 | $ 8,581 | $ 11,935 |
New loans during the year | (3,136) | 919 | 4,356 |
Repayments during the year | 3,281 | (2,106) | (7,710) |
Balance | $ 7,539 | $ 7,394 | $ 8,581 |
Other Real Estate - Other Real
Other Real Estate - Other Real Estate Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Real Estate [Roll Forward] | |||
Beginning balance | $ 1,000 | $ 0 | $ 0 |
Loans acquired in merger | 0 | 1,650 | 0 |
Loans transferred to other real estate | 943 | 1,060 | 0 |
Allowance to lower of cost or market | (98) | 0 | 0 |
Sales of other real estate | (1,095) | (1,710) | 0 |
End of year | $ 750 | $ 1,000 | $ 0 |
Other Real Estate - Activity in
Other Real Estate - Activity in the Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Real Estate Owned Valuation Allowance [Roll Forward] | |||
Beginning balance | $ 0 | $ 0 | $ 0 |
Provisions/(recoveries) charged/(credited) to expense | 98 | 0 | 0 |
Reductions from sales of other real estate | 0 | 0 | 0 |
Direct write-downs | 0 | 0 | 0 |
End of year | $ 98 | $ 0 | $ 0 |
Other Real Estate - Expenses Re
Other Real Estate - Expenses Related to Foreclosed Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |||
Net gain on sales | $ (166) | $ (259) | $ (27) |
Provision for unrealized losses | 98 | 0 | 0 |
Operating expenses, net of rental income | 44 | 50 | 7 |
Total | $ (24) | $ (209) | $ (20) |
Other Real Estate - Narrative (
Other Real Estate - Narrative (Details) - Community First $ in Thousands | Jan. 01, 2018USD ($)parcel |
Business Acquisition [Line Items] | |
Real estate parcels acquired | parcel | 3 |
Other real estate owned | $ | $ (1,650) |
Fair Values of Assets and Lia_3
Fair Values of Assets and Liabilities - Schedule of Fair Value of Assets and Liabilities Measured on Recurring and Non-recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 260,293 | $ 296,323 |
U. S. Treasury and other U. S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 59 | 554 |
State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 196,660 | 229,298 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 7,845 | 3,017 |
Mortgage backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 37,761 | 31,958 |
Asset backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 17,968 | 27,996 |
Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 3,500 | |
Recurring | U. S. Treasury and other U. S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 59 | 554 |
Recurring | State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 196,660 | 229,298 |
Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 7,845 | 3,017 |
Recurring | Mortgage backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 37,761 | 31,958 |
Recurring | Asset backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 17,968 | 27,996 |
Recurring | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 3,500 | |
Recurring | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | 688 | 467 |
Recurring | Derivative asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 3,396 | 1,183 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U. S. Treasury and other U. S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 3,500 | |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | U. S. Treasury and other U. S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 59 | 554 |
Recurring | Significant Other Observable Inputs (Level 2) | State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 196,660 | 229,298 |
Recurring | Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 7,845 | 3,017 |
Recurring | Significant Other Observable Inputs (Level 2) | Mortgage backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 37,761 | 31,958 |
Recurring | Significant Other Observable Inputs (Level 2) | Asset backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 17,968 | 27,996 |
Recurring | Significant Other Observable Inputs (Level 2) | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | 688 | 467 |
Recurring | Significant Other Observable Inputs (Level 2) | Derivative asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 3,396 | 1,183 |
Recurring | Significant Unobservable Inputs (Level 3) | U. S. Treasury and other U. S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Asset backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Derivative asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 553 | 370 |
Other real estate owned | 750 | |
Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | |
Nonrecurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | |
Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 553 | $ 370 |
Other real estate owned | $ 750 |
Fair Values of Assets and Lia_4
Fair Values of Assets and Liabilities - Summary of Quantitative Information of Assets Measured at Fair Value on Nonrecurring Basis by Utilized Level 3 Inputs (Details) - Estimated costs to sell - Nonrecurring - Significant Unobservable Inputs (Level 3) - Range (Weighted Average) - Appraisal | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired loans | 0.10 |
Other real estate owned | 0.10 |
Fair Values of Assets and Lia_5
Fair Values of Assets and Liabilities - Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Amount | ||
Financial assets | ||
Cash and due from banks | $ 50,990 | $ 34,807 |
Federal funds sold | 52 | 371 |
Loans, net | 1,397,374 | 1,220,184 |
Mortgage loans held for sale | 37,476 | 15,823 |
Accrued interest receivable | 7,111 | 8,214 |
Restricted equity securities | 11,279 | 11,690 |
Financial liabilities | ||
Deposits | 1,583,789 | 1,437,903 |
Accrued interest payable | 2,022 | 1,063 |
Subordinate debentures | 70,883 | 11,603 |
Federal Home Loan Bank advances | 10,737 | 57,498 |
Estimated Fair Value | ||
Financial assets | ||
Cash and due from banks | 50,990 | 34,807 |
Federal funds sold | 52 | 371 |
Loans, net | 1,383,719 | 1,206,574 |
Mortgage loans held for sale | 38,379 | 15,871 |
Accrued interest receivable | 7,111 | 8,214 |
Restricted equity securities | 11,279 | 11,690 |
Financial liabilities | ||
Deposits | 1,582,117 | 1,434,652 |
Accrued interest payable | 2,022 | 1,063 |
Subordinate debentures | 71,454 | 11,522 |
Federal Home Loan Bank advances | 10,755 | 57,434 |
Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets | ||
Cash and due from banks | 50,990 | 34,807 |
Federal funds sold | 0 | 0 |
Loans, net | 0 | 0 |
Mortgage loans held for sale | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Restricted equity securities | 0 | 0 |
Financial liabilities | ||
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Subordinate debentures | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Estimated Fair Value | Significant Other Observable Inputs (Level 2) | ||
Financial assets | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 52 | 371 |
Loans, net | 0 | 0 |
Mortgage loans held for sale | 38,379 | 15,871 |
Accrued interest receivable | 7,111 | 8,214 |
Restricted equity securities | 11,279 | 11,690 |
Financial liabilities | ||
Deposits | 0 | 0 |
Accrued interest payable | 2,022 | 1,063 |
Subordinate debentures | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Estimated Fair Value | Significant Unobservable Inputs (Level 3) | ||
Financial assets | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Loans, net | 1,383,719 | 1,206,574 |
Mortgage loans held for sale | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Restricted equity securities | 0 | 0 |
Financial liabilities | ||
Deposits | 1,582,117 | 1,434,652 |
Accrued interest payable | 0 | 0 |
Subordinate debentures | 71,454 | 11,522 |
Federal Home Loan Bank advances | $ 10,755 | $ 57,434 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 34,270 | $ 32,862 |
Less: accumulated depreciation and amortization | (12,894) | (10,829) |
Premises and equipment, net | 21,376 | 22,033 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 6,058 | 6,049 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 9,020 | 8,951 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 371 | 0 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 7,891 | 7,551 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 10,930 | $ 10,311 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 1,996 | $ 1,697 | $ 1,017 |
Restricted Equity Securities (D
Restricted Equity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Federal Reserve Bank | $ 5,754 | $ 5,735 |
Federal Home Loan Bank | 5,525 | 5,955 |
Total | $ 11,279 | $ 11,690 |
Goodwill and Core Deposit Int_3
Goodwill and Core Deposit Intangibles - Intangible Assets Acquired in Business Acquisitions (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 43,642 | $ 43,642 |
Amortized intangible assets: | ||
Core deposit intangibles | 10,111 | 10,111 |
Less accumulated amortization | (2,841) | (1,892) |
Total | $ 7,270 | $ 8,219 |
Goodwill and Core Deposit Int_4
Goodwill and Core Deposit Intangibles - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 949 | $ 949 | $ 302 |
Goodwill and Core Deposit Int_5
Goodwill and Core Deposit Intangibles - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 949 | |
2021 | 949 | |
2022 | 949 | |
2023 | 865 | |
2024 | 695 | |
Thereafter | 2,863 | |
Total | $ 7,270 | $ 8,219 |
Deposits - Contractual Maturiti
Deposits - Contractual Maturities of Time Deposit Accounts (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
2020 | $ 656,654 | |
2021 | 69,639 | |
2022 | 15,213 | |
2023 | 10,049 | |
2024 | 10,719 | |
Total | $ 762,274 | $ 665,440 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Aggregate amount of overdrafts reclassified as receivable | $ 381 | $ 415 |
Time deposits above FDIC Insurance limit | 238,004 | 330,736 |
Deposits from related parties | $ 14,600 | $ 8,376 |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances - Summary of Advances from FHLB (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances [Line Items] | ||
Maturities January 2020 through March 2024, fixed rates ranging from 1.22% to 2.86% ($7,000 is due in the year ending December 31, 2020) | $ 10,737 | $ 57,498 |
FHLB advances due in 2019 | $ 7,000 | |
Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal home loan bank, advances, interest rate | 1.22% | |
Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal home loan bank, advances, interest rate | 2.86% |
Federal Home Loan Bank Advanc_4
Federal Home Loan Bank Advances - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal home loan bank, advances, amortized on a monthly basis | $ 3,737 | |
Federal home loan bank, advances, collateral pledged | 657,608 | $ 597,646 |
Federal home loan bank, advances, additional borrowing capacity | $ 159,379 | $ 96,082 |
Weighted Average | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal home loan bank, advances, interest rate | 1.76% | 2.42% |
Federal Home Loan Bank Advanc_5
Federal Home Loan Bank Advances - Future Principle Payments on Federal Home Loan Bank Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Banks [Abstract] | ||
2020 | $ 7,000 | |
2021 | 323 | |
2022 | 557 | |
2023 | 2,342 | |
2024 | 515 | |
Total | $ 10,737 | $ 57,498 |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - Community First, Inc | 12 Months Ended | 71 Months Ended | 85 Months Ended | ||||
Dec. 31, 2005USD ($)quarterly_periods | Dec. 31, 2002USD ($)quarterly_periods | Dec. 15, 2024 | Dec. 15, 2012 | Dec. 31, 2019USD ($) | Dec. 20, 2016USD ($) | Dec. 31, 2007USD ($)quarterly_periods | |
Subordinated Debentures Subject to Mandatory Redemption | |||||||
Subordinated Borrowing [Line Items] | |||||||
Debt instrument, face amount | $ 5,000,000 | $ 3,000,000 | $ 60,000 | ||||
Subordinated borrowing, interest rate | 3.39% | 5.50% | 7.96% | 4.89% | |||
Subordinated Debentures Subject to Mandatory Redemption | Forecast | |||||||
Subordinated Borrowing [Line Items] | |||||||
Subordinated borrowing, interest rate | 5.125% | ||||||
Redeemable Subordinated Debentures | |||||||
Subordinated Borrowing [Line Items] | |||||||
Debt instrument, face amount | $ 15,000,000 | ||||||
Trust Preferred Capital Securities | |||||||
Subordinated Borrowing [Line Items] | |||||||
Debt instrument, repurchased face amount | $ 10,000,000 | ||||||
Prime Rate | Subordinated Debentures Subject to Mandatory Redemption | |||||||
Subordinated Borrowing [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.50% | ||||||
LIBOR | Subordinated Debentures Subject to Mandatory Redemption | |||||||
Subordinated Borrowing [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.50% | ||||||
Deferral of interest payments, number of quarterly periods | quarterly_periods | 20 | 20 | 20 | ||||
LIBOR | Redeemable Subordinated Debentures | |||||||
Subordinated Borrowing [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 3.00% | ||||||
SOFR | Subordinated Debentures Subject to Mandatory Redemption | Forecast | |||||||
Subordinated Borrowing [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 3.765% |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Stock Purchase Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Purchase price of common stock, percent | 85.00% | ||
Number of shares authorized (in shares) | 200,000 | ||
Maximum number of shares per employee (in shares) | 2,500 | ||
Maximum employee subscription amount | $ 25,000 | ||
Common stock issued under the ESPP (in shares) | 8,512 | 0 | |
Number of shares available for issuance under the ESPP (in shares) | 191,488 | ||
401K Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum annual contributions per employee, percent | 100.00% | ||
Employer matching contribution, percent of match | 100.00% | ||
Employer matching contribution, percent of employees gross pay | 6.00% | ||
Defined contribution plan, cost | $ 1,033,000 | $ 805,000 | $ 450,000 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Tax reform act, income tax expense | $ 620 | |
Federal | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Operating loss carryforwards | $ 12,911 | |
Operating loss carryforwards, limitations on use, annual amount | $ 1,215 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax expense | |||
Current | $ 1,731 | $ 992 | $ 1,438 |
Deferred | 398 | 380 | 504 |
Total provision for income tax expense | $ 2,129 | $ 1,372 | $ 1,942 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Computed “expected” tax expense | $ 2,660 | $ 2,495 | $ 2,756 |
Increase (decrease) in tax expense resulting from: | |||
Federal income tax rate change | 0 | 0 | 620 |
State tax expense, net of federal tax effect | 637 | 551 | 331 |
Tax exempt interest | (1,374) | (1,422) | (1,452) |
Disallowed interest expense | 1 | 290 | 193 |
Stock compensation | 23 | 19 | 33 |
Cash surrender value of life insurance contracts | (235) | (249) | (285) |
Excess tax benefit from stock compensation | (37) | (88) | (184) |
Nondeductible merger expenses | 155 | 47 | 173 |
Federal and state tax credits | (999) | (1,102) | (667) |
Subsidiary disregarded for federal taxes | 1,189 | 763 | 347 |
Others as a group | 109 | 68 | 77 |
Total provision for income tax expense | $ 2,129 | $ 1,372 | $ 1,942 |
Computed “expected” tax expense | 21.00% | 21.00% | 34.00% |
Increase (decrease) in tax expense resulting from: | |||
Federal income tax rate change | 0.00% | 0.00% | 8.00% |
State tax expense, net of federal tax effect | 5.00% | 5.00% | 4.00% |
Tax exempt interest | (11.00%) | (12.00%) | (18.00%) |
Disallowed interest expense | 0.00% | 2.00% | 2.00% |
Stock compensation | 0.00% | 0.00% | 0.00% |
Cash surrender value of life insurance contracts | (2.00%) | (2.00%) | (4.00%) |
Excess tax benefit from stock compensation | 0.00% | (1.00%) | (2.00%) |
Nondeductible merger expenses | 1.00% | 0.00% | 2.00% |
Federal and state tax credits | (8.00%) | (9.00%) | (8.00%) |
Subsidiary disregarded for federal taxes | 9.00% | 6.00% | 4.00% |
Others as a group | 1.00% | 1.00% | 1.00% |
Total income tax expense | 16.00% | 11.00% | 23.00% |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Organizational and start-up costs | $ 38 | $ 68 |
Core deposit intangible | (1,817) | (2,046) |
Acquisition fair value adjustments | 414 | 817 |
Allowance for loan losses | 2,933 | 2,577 |
Loan fees (costs) | (19) | (1) |
Other real estate | 26 | 577 |
Premises and equipment | (627) | (791) |
Unrealized (gain) on available for sale securities | (2,501) | |
Unrealized loss on available for sale securities | 1,115 | |
Unrealized loss on derivatives | 708 | 187 |
Non-accrual loans | 271 | 280 |
Acquired net operating losses | 2,711 | 2,966 |
Acquired tax credits net of basis adjustments | 1,005 | 1,005 |
Deferred compensation | 310 | 443 |
Other | 481 | 231 |
Total | 3,933 | 7,428 |
State | (187) | 688 |
Federal | $ 4,120 | $ 6,740 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 10, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 18, 2015 | Dec. 31, 2006 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation cost | $ 1,222 | $ 923 | $ 616 | |||
Excess income tax benefit | $ 37 | $ 88 | 184 | |||
Forfeiture rate | 3.00% | |||||
Unrecognized compensation cost, weighted-average period for recognition | 1 year 9 months 15 days | |||||
Estimated fair value per option (in dollars per share) | $ 6.97 | $ 6.89 | ||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost, weighted-average period for recognition | 1 year | |||||
Unrecognized compensation cost, restricted stock | $ 1,756 | |||||
Fair value of share awards vested | $ 605 | $ 439 | $ 368 | |||
Restricted Stock | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 1 year | |||||
Restricted Stock | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost, weighted-average period for recognition | 1 year 3 months 18 days | |||||
The Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost | $ 377 | |||||
The Plan | Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | 1,250,000 | 625,000 | ||||
Expiration period | 10 years | |||||
Equity Incentive Plan 2015 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | 900,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares | ||||
Outstanding (in shares) | 159,260 | 170,761 | 241,541 | |
Granted (in shares) | 27,500 | 25,500 | 15,500 | |
Exercised (in shares) | (34,714) | (30,001) | (72,080) | |
Forfeited or expired (in shares) | (2,753) | (7,000) | (14,200) | |
Outstanding (in shares) | 149,293 | 159,260 | 170,761 | 241,541 |
Exercisable (in shares) | 74,693 | 88,060 | 95,861 | |
Vested and anticipated vesting shares (in shares) | 147,055 | 157,124 | 168,514 | |
Weighted Average Exercise Price | ||||
Outstanding (in dollars per share) | $ 16.72 | $ 14.48 | $ 12.96 | |
Granted (in dollars per share) | 23.28 | 28 | 23.55 | |
Exercised (in dollars per share) | 12.79 | 13.27 | 11.42 | |
Forfeited or expired (in dollars per share) | 19.35 | 18.20 | 14.06 | |
Outstanding (in dollars per share) | 18.81 | 16.72 | 14.48 | $ 12.96 |
Exercisable (in dollars per share) | 15.31 | 13.45 | 13 | |
Vested and anticipated vesting shares (in dollars per share) | $ 18.76 | $ 16.67 | $ 14.45 | |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | ||||
Outstanding, Weighted Average Remaining Contractual Term | 6 years 8 months 5 days | 6 years 15 days | 5 years 8 months 23 days | 5 years 4 months 28 days |
Exercisable, Weighted Average Remaining Contractual Term | 5 years 2 months 5 days | 4 years 3 months 26 days | 3 years 9 months | |
Vested and anticipated vesting shares, Weighted Average Remaining Contractual Term | 6 years 7 months 21 days | 6 years 4 days | 5 years 8 months 23 days | |
Outstanding, Aggregate Intrinsic Value | $ 700 | $ 1,146 | $ 1,905 | $ 2,065 |
Exercisable, Aggregate Intrinsic Value | 553 | 847 | 1,212 | |
Vested and anticipated vesting shares, Aggregate Intrinsic Value | $ 570 | $ 1,002 | $ 1,848 |
Stock-Based Compensation - Nonv
Stock-Based Compensation - Nonvested Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Non-vested options (in shares) | 71,200 | 74,900 | 96,600 |
Granted (in shares) | 27,500 | 25,500 | 15,500 |
Vested (in shares) | (21,347) | (22,200) | (23,000) |
Forfeited (in shares) | (2,753) | (7,000) | (14,200) |
Non-vested options (in shares) | 74,600 | 71,200 | 74,900 |
Weighted Average Grant-Date Fair Value | |||
Non-vested options (in dollars per share) | $ 5.28 | $ 4.14 | $ 3.36 |
Granted (in dollars per share) | 6.97 | 7.10 | 6.66 |
Vested (in dollars per share) | 5.97 | 6.69 | 6.95 |
Forfeited (in dollars per share) | 4.89 | 4.77 | 3.18 |
Non-vested options (in dollars per share) | $ 6.08 | $ 5.28 | $ 4.14 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Intrinsic value of options exercised | $ 320 | $ 344 | $ 827 |
Cash received from option exercises | 439 | 398 | 823 |
Tax benefit realized from option exercises | $ 13 | $ 88 | $ 184 |
Weighted average fair value of options granted (in dollars per share) | $ 6.97 | $ 7.10 | $ 6.66 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Fair Value Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 2.08% | 2.30% | |
Risk-free interest rate, maximum | 2.39% | 2.45% | |
Risk-free interest rate | 2.95% | ||
Expected term (in years) | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Expected stock price volatility, minimum | 31.10% | 24.00% | |
Expected stock price volatility, maximum | 32.80% | 29.90% | |
Expected stock price volatility | 23.50% | ||
Dividend yield | 1.14% | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 1.55% | 0.98% | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 1.59% | 1.02% |
Stock-Based Compensation - Acti
Stock-Based Compensation - Activity Related to Restricted Stock (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock Units | |||
Units/Shares | |||
Outstanding (in shares) | 0 | 0 | 0 |
Granted (in shares) | 47,750 | 0 | 0 |
Vested (in shares) | 0 | 0 | 0 |
Forfeited (in shares) | 0 | 0 | 0 |
Outstanding (in shares) | 47,750 | 0 | 0 |
Weighted Average Grant-Date Fair Value | |||
Outstanding (in dollars per share) | $ 0 | $ 0 | $ 0 |
Granted (in dollars per share) | 23.30 | 0 | 0 |
Vested (in dollars per share) | 0 | 0 | 0 |
Forfeited (in dollars per share) | 0 | 0 | 0 |
Outstanding (in dollars per share) | $ 23.30 | $ 0 | $ 0 |
Restricted Stock | |||
Units/Shares | |||
Outstanding (in shares) | 110,660 | 82,499 | 48,465 |
Granted (in shares) | 9,500 | 51,710 | 50,050 |
Vested (in shares) | (21,450) | (21,999) | (13,016) |
Forfeited (in shares) | (7,750) | (1,550) | (3,000) |
Outstanding (in shares) | 90,960 | 110,660 | 82,499 |
Weighted Average Grant-Date Fair Value | |||
Outstanding (in dollars per share) | $ 24.28 | $ 20.03 | $ 14.36 |
Granted (in dollars per share) | 22.01 | 27.55 | 23.65 |
Vested (in dollars per share) | 19.31 | 15.95 | 14.21 |
Forfeited (in dollars per share) | 23.25 | 25.17 | 14.18 |
Outstanding (in dollars per share) | $ 25.31 | $ 24.28 | $ 20.03 |
Capital - Actual and Required C
Capital - Actual and Required Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier I leverage | $ 176,748 | $ 168,876 |
Tier I leverage, ratio | 9.74% | 10.38% |
Tier I leverage, minimal capital adequacy | $ 65,077 | |
Tier I leverage, minimal capital adequacy, ratio | 0.00% | 4.00% |
Tier I leverage, minimum required capital including capital conservation buffer | $ 72,586 | $ 65,077 |
Tier I leverage, minimum required capital including capital conservation buffer, ratio | 4.00% | 4.00% |
Tier I leverage, to be well capitalized under prompt corrective action provisions | $ 90,733 | $ 81,347 |
Tier I leverage, to be well capitalized under prompt corrective action provisions, ratio | 5.00% | 5.00% |
Common equity tier 1 | $ 165,063 | $ 157,273 |
Common equity tier 1, ratio | 10.55% | 11.59% |
Common equity tier 1, minimal capital adequacy | $ 61,064 | |
Common equity tier 1, minimal capital adequacy, ratio | 0.00% | 4.50% |
Common equity tier 1, minimum required capital including capital conservation buffer | $ 109,520 | $ 86,507 |
Common equity tier 1, minimum required capital including capital conservation buffer, ratio | 7.00% | 6.375% |
Common equity tier 1, to be well capitalized under prompt corrective action provisions | $ 101,698 | $ 88,203 |
Common equity tier 1, to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
Tier I risk-based capital | $ 176,748 | $ 168,876 |
Tier I risk-based capital, ratio | 11.30% | 12.44% |
Tier I risk-based capital, minimal capital adequacy | $ 81,451 | |
Tier I risk-based capital, minimal capital adequacy, ratio | 0.00% | 6.00% |
Tier I risk-based capital, minimum required capital including capital conservation buffer | $ 132,952 | $ 106,905 |
Tier I risk-based capital, minimum required capital including capital conservation buffer, ratio | 8.50% | 7.875% |
Tier I risk-based capital, to be well capitalized under prompt corrective action provisions | $ 125,131 | $ 108,602 |
Tier I risk-based capital, to be well capitalized under prompt corrective action provisions, ratio | 8.00% | 8.00% |
Total risk-based capital | $ 249,751 | $ 180,193 |
Total risk-based capital, ratio | 15.97% | 13.28% |
Total risk-based capital, minimal capital adequacy | $ 108,550 | |
Total risk-based capital, minimal capital adequacy, ratio | 0.00% | 8.00% |
Total risk-based capital, minimum required capital including capital conservation buffer | $ 164,207 | $ 133,991 |
Total risk-based capital, minimum required capital including capital conservation buffer, ratio | 10.50% | 9.875% |
Total risk-based capital, to be well capitalized under prompt corrective action provisions | $ 156,388 | $ 135,688 |
Total risk-based capital, to be well capitalized under prompt corrective action provisions, ratio | 10.00% | 10.00% |
Reliant Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier I leverage | $ 186,734 | $ 165,308 |
Tier I leverage, ratio | 10.30% | 10.17% |
Tier I leverage, minimal capital adequacy | $ 65,018 | |
Tier I leverage, minimal capital adequacy, ratio | 0.00% | 4.00% |
Tier I leverage, minimum required capital including capital conservation buffer | $ 72,518 | $ 65,018 |
Tier I leverage, minimum required capital including capital conservation buffer, ratio | 4.00% | 4.00% |
Tier I leverage, to be well capitalized under prompt corrective action provisions | $ 90,648 | $ 81,272 |
Tier I leverage, to be well capitalized under prompt corrective action provisions, ratio | 5.00% | 5.00% |
Common equity tier 1 | $ 186,734 | $ 165,308 |
Common equity tier 1, ratio | 11.95% | 12.19% |
Common equity tier 1, minimal capital adequacy | $ 61,024 | |
Common equity tier 1, minimal capital adequacy, ratio | 0.00% | 4.50% |
Common equity tier 1, minimum required capital including capital conservation buffer | $ 109,384 | $ 86,451 |
Common equity tier 1, minimum required capital including capital conservation buffer, ratio | 7.00% | 6.375% |
Common equity tier 1, to be well capitalized under prompt corrective action provisions | $ 101,571 | $ 88,146 |
Common equity tier 1, to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
Tier I risk-based capital | $ 186,734 | $ 165,308 |
Tier I risk-based capital, ratio | 11.95% | 12.19% |
Tier I risk-based capital, minimal capital adequacy | $ 81,366 | |
Tier I risk-based capital, minimal capital adequacy, ratio | 0.00% | 6.00% |
Tier I risk-based capital, minimum required capital including capital conservation buffer | $ 132,823 | $ 106,792 |
Tier I risk-based capital, minimum required capital including capital conservation buffer, ratio | 8.50% | 7.875% |
Tier I risk-based capital, to be well capitalized under prompt corrective action provisions | $ 125,010 | $ 108,488 |
Tier I risk-based capital, to be well capitalized under prompt corrective action provisions, ratio | 8.00% | 8.00% |
Total risk-based capital | $ 199,737 | $ 176,625 |
Total risk-based capital, ratio | 12.79% | 13.02% |
Total risk-based capital, minimal capital adequacy | $ 108,525 | |
Total risk-based capital, minimal capital adequacy, ratio | 0.00% | 8.00% |
Total risk-based capital, minimum required capital including capital conservation buffer | $ 163,975 | $ 133,961 |
Total risk-based capital, minimum required capital including capital conservation buffer, ratio | 10.50% | 9.875% |
Total risk-based capital, to be well capitalized under prompt corrective action provisions | $ 156,167 | $ 135,657 |
Total risk-based capital, to be well capitalized under prompt corrective action provisions, ratio | 10.00% | 10.00% |
Capital - Narrative (Details)
Capital - Narrative (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 04, 2018 |
Banking and Thrift [Abstract] | |||
Stock repurchase program, authorized amount | $ 8,291 | $ 12,000,000 | |
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||
Federal reserve bank discount window borrowings | $ 5,780,000 | $ 11,166,000 |
Federal reserve bank advances | 0 | 0 |
Standby letters of credit | Federal Home Loan Bank Borrowings | ||
Loss Contingencies [Line Items] | ||
Long-term line of credit | 285,654,000 | 310,454,000 |
Federal Fund Lines of Credit | ||
Loss Contingencies [Line Items] | ||
Line of credit facility, remaining borrowing capacity | 88,200,000 | 88,200,000 |
Long-term line of credit | 0 | 0 |
Unsecured Line of Credit | ||
Loss Contingencies [Line Items] | ||
Line of credit facility, remaining borrowing capacity | 20,000,000 | |
Long-term line of credit | $ 0 | $ 0 |
Leases - Summary of Company's L
Leases - Summary of Company's Leased Facilities (Details) | 12 Months Ended |
Dec. 31, 2019 | |
1736 Carothers Parkway, Brentwood | |
Property Subject to or Available for Operating Lease [Line Items] | |
Base Lease Term With Renewal Periods (Year) | 15 years |
6005 Nolensville Road, Nashville | |
Property Subject to or Available for Operating Lease [Line Items] | |
Base Lease Term With Renewal Periods (Year) | 0 years |
Escalation Clause | 3.00% |
5109 Peter Taylor Park Drive, Brentwood | |
Property Subject to or Available for Operating Lease [Line Items] | |
Base Lease Term With Renewal Periods (Year) | 0 years |
101 Creekstone Blvd., Franklin | |
Property Subject to or Available for Operating Lease [Line Items] | |
Base Lease Term With Renewal Periods (Year) | 10 years |
101 Creekstone Blvd., Franklin | |
Property Subject to or Available for Operating Lease [Line Items] | |
Base Lease Term With Renewal Periods (Year) | 0 years |
101 Creekstone Blvd., Franklin | |
Property Subject to or Available for Operating Lease [Line Items] | |
Base Lease Term With Renewal Periods (Year) | 10 years |
Escalation Clause | 1.00% |
105 Continental Place, Brentwood | |
Property Subject to or Available for Operating Lease [Line Items] | |
Base Lease Term With Renewal Periods (Year) | 0 years |
Escalation Clause | 3.00% |
633 Chestnut St., Chattanooga | |
Property Subject to or Available for Operating Lease [Line Items] | |
Escalation Clause | 3.00% |
633 Chestnut St., Chattanooga | |
Property Subject to or Available for Operating Lease [Line Items] | |
Base Lease Term With Renewal Periods (Year) | 10 years |
6100 Tower Circle, Franklin | |
Property Subject to or Available for Operating Lease [Line Items] | |
Base Lease Term With Renewal Periods (Year) | 0 years |
1835 E. Northfield Blvd., Murfreesboro | |
Property Subject to or Available for Operating Lease [Line Items] | |
Base Lease Term With Renewal Periods (Year) | 5 years |
Escalation Clause | 3.00% |
1412 Trotwood Ave., Columbia | |
Property Subject to or Available for Operating Lease [Line Items] | |
Base Lease Term With Renewal Periods (Year) | 0 years |
4108 Hillsboro Pike, Nashville | |
Property Subject to or Available for Operating Lease [Line Items] | |
Base Lease Term With Renewal Periods (Year) | 15 years |
711 E. Main Street, Hendersonville | |
Property Subject to or Available for Operating Lease [Line Items] | |
Base Lease Term With Renewal Periods (Year) | 0 years |
376 S. Perkins Extended Memphis | |
Property Subject to or Available for Operating Lease [Line Items] | |
Base Lease Term With Renewal Periods (Year) | 0 years |
308 Main Street, Crossett, Arkansas | |
Property Subject to or Available for Operating Lease [Line Items] | |
Base Lease Term With Renewal Periods (Year) | 0 years |
1398 Desoto Boulevard, Hot Springs Village, Arkansas | |
Property Subject to or Available for Operating Lease [Line Items] | |
Base Lease Term With Renewal Periods (Year) | 0 years |
9101 N. Rodney Parham Road, Little Rock, Arkansas | |
Property Subject to or Available for Operating Lease [Line Items] | |
Base Lease Term With Renewal Periods (Year) | 0 years |
1401 Malvern Avenue, Hot Springs, Arkansas | |
Property Subject to or Available for Operating Lease [Line Items] | |
Base Lease Term With Renewal Periods (Year) | 0 years |
51111111 John F. Kennedy Boulevard, North Little Rock, Arkansas | |
Property Subject to or Available for Operating Lease [Line Items] | |
Base Lease Term With Renewal Periods (Year) | 0 years |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 2,369 |
2021 | 2,474 |
2022 | 2,117 |
2023 | 1,743 |
2024 | 1,692 |
Thereafter | 4,512 |
Total | $ 14,907 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Operating leases, rent expense | $ 2,723 | $ 2,536 | $ 2,055 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance-Sheet Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk | $ 352,887 | $ 270,496 |
Fixed | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk | 27,309 | 44,053 |
Variable | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk | 308,446 | 209,898 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk | $ 17,132 | $ 16,545 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Cash Flow Hedging | Interest rate swap | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 110,000,000 | $ 60,000,000 |
Derivatives - Interest Rate Swa
Derivatives - Interest Rate Swaps Designated as Cash Flow Hedges (Details) - Cash Flow Hedging - Interest rate swap - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Notional amounts | $ 110,000,000 | $ 60,000,000 | |
Weighted average pay rates | 2.428% | 3.34% | |
Weighted average receive rates | 2.114% | 2.86% | |
Weighted average maturity | 3 years 10 months 2 days | 4 years 5 months 19 days | |
Unrealized losses | $ 2,078,000 | $ 1,153,000 | $ 0 |
Derivatives - Net Gains (Losses
Derivatives - Net Gains (Losses) Relating to Cash Flow Derivative Instruments (Details) - Interest Rate Swap - Cash Flow Hedging - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | $ (2,078) | $ (1,153) | $ 0 |
Amount of Gain (Loss) Reclassified from OCI to Interest Income | 0 | 0 | 0 |
Amount of Gain (Loss) Recognized in Other Non-Interest Income (Ineffective Portion) | $ 0 | $ 0 | $ 0 |
Derivatives - Cash Flow Hedges
Derivatives - Cash Flow Hedges and Fair Value Hedges Included in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash Flow Hedging | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Notional Amount | $ 0 | $ 0 |
Derivative Asset, Fair Value | 0 | 0 |
Cash Flow Hedging | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Notional Amount | 110,000 | 60,000 |
Derivative Liability, Fair Value | 2,078 | 1,153 |
Cash Flow Hedging | Interest rate swap | subordinate debentures | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Notional Amount | 10,000 | 10,000 |
Derivative Liability, Fair Value | 439 | 174 |
Cash Flow Hedging | Interest rate swap | Time Deposits | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Notional Amount | 100,000 | 0 |
Derivative Liability, Fair Value | 1,639 | 0 |
Cash Flow Hedging | Interest rate swap | Federal Home Loan Bank borrowings | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Notional Amount | 0 | 50,000 |
Derivative Liability, Fair Value | 0 | 979 |
Fair Value Hedging | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Notional Amount | 0 | 16,902 |
Derivative Asset, Fair Value | 0 | 467 |
Fair Value Hedging | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Notional Amount | 19,605 | 4,203 |
Derivative Liability, Fair Value | 630 | 30 |
Fair Value Hedging | Interest rate swap | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Notional Amount | 0 | 16,902 |
Derivative Asset, Fair Value | 0 | 467 |
Fair Value Hedging | Interest rate swap | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Notional Amount | 19,605 | 4,203 |
Derivative Liability, Fair Value | $ 630 | $ 30 |
Derivatives - Fair Value Hedges
Derivatives - Fair Value Hedges Included in the Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest rate swap | Interest income | Fair Value Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value on interest rate swaps hedging investments | $ (1,067) | $ 462 | $ 47 |
Earnings Per Share - Components
Earnings Per Share - Components of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic EPS Computation | |||||||||||||||
Net income attributable to common shareholders | $ 16,196 | $ 14,085 | $ 7,246 | ||||||||||||
Weighted average common shares outstanding (in shares) | 11,212,127 | 11,389,122 | 8,151,792 | ||||||||||||
Basic earnings per common share (in dollars per share) | $ 0.37 | $ 0.36 | $ 0.38 | $ 0.34 | $ 0.36 | $ 0.36 | $ 0.19 | $ 0.33 | $ 0.13 | $ 0.23 | $ 0.28 | $ 0.27 | $ 1.44 | $ 1.24 | $ 0.89 |
Diluted EPS Computation | |||||||||||||||
Net income attributable to common shareholders | $ 16,196 | $ 14,085 | $ 7,246 | ||||||||||||
Weighted average common shares outstanding (in shares) | 11,212,127 | 11,389,122 | 8,151,792 | ||||||||||||
Dilutive effect of stock options and restricted shares (in shares) | 69,135 | 79,667 | 87,809 | ||||||||||||
Adjusted weighted average common shares outstanding (in shares) | 11,281,262 | 11,468,789 | 8,239,601 | ||||||||||||
Diluted earnings per common share (in dollars per share) | $ 0.37 | $ 0.36 | $ 0.38 | $ 0.33 | $ 0.36 | $ 0.36 | $ 0.19 | $ 0.33 | $ 0.13 | $ 0.22 | $ 0.28 | $ 0.26 | $ 1.44 | $ 1.23 | $ 0.88 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Stock options for common stock (in shares) | 60,500 | 62,910 | 10,500 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting - Summary of
Segment Reporting - Summary of Results of Operations for Company's Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||||||
Net interest income | $ 14,467 | $ 14,064 | $ 13,813 | $ 13,461 | $ 13,577 | $ 13,466 | $ 13,404 | $ 13,382 | $ 8,917 | $ 9,096 | $ 8,503 | $ 7,971 | $ 55,805 | $ 53,829 | $ 34,487 |
Provision for loan losses | 1,211 | 1,035 | 1,316 | ||||||||||||
Noninterest income | 11,964 | 9,646 | 6,010 | ||||||||||||
Noninterest expense | 53,892 | 50,561 | 31,076 | ||||||||||||
Income tax expense (benefit) | 2,129 | 1,372 | 1,942 | ||||||||||||
CONSOLIDATED NET INCOME | 2,958 | 2,614 | 2,684 | 2,281 | 2,788 | 3,240 | 1,202 | 3,277 | 970 | 1,840 | 1,794 | 1,559 | 10,537 | 10,507 | 6,163 |
Noncontrolling interest in net loss of subsidiary | 1,175 | 1,386 | 1,555 | 1,543 | 1,335 | 842 | 937 | 464 | 185 | 6 | 393 | 499 | 5,659 | 3,578 | 1,083 |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 4,133 | $ 4,000 | $ 4,239 | $ 3,824 | $ 4,123 | $ 4,082 | $ 2,139 | $ 3,741 | $ 1,155 | $ 1,846 | $ 2,187 | $ 2,058 | 16,196 | 14,085 | 7,246 |
Operating Segments | Retail Banking | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net interest income | 55,252 | 53,008 | 33,761 | ||||||||||||
Provision for loan losses | 1,211 | 1,035 | 1,316 | ||||||||||||
Noninterest income | 7,059 | 5,232 | 2,333 | ||||||||||||
Noninterest expense | 42,382 | 41,512 | 25,524 | ||||||||||||
Income tax expense (benefit) | 2,522 | 1,608 | 2,008 | ||||||||||||
CONSOLIDATED NET INCOME | 16,196 | 14,085 | 7,246 | ||||||||||||
Noncontrolling interest in net loss of subsidiary | 0 | 0 | 0 | ||||||||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 16,196 | 14,085 | 7,246 | ||||||||||||
Operating Segments | Residential Mortgage Banking | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net interest income | 553 | 821 | 726 | ||||||||||||
Provision for loan losses | 0 | 0 | 0 | ||||||||||||
Noninterest income | 5,086 | 4,595 | 3,805 | ||||||||||||
Noninterest expense | 11,510 | 9,049 | 5,552 | ||||||||||||
Income tax expense (benefit) | (393) | (236) | (66) | ||||||||||||
CONSOLIDATED NET INCOME | (5,478) | (3,397) | (955) | ||||||||||||
Noncontrolling interest in net loss of subsidiary | 5,478 | 3,397 | 955 | ||||||||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 0 | 0 | 0 | ||||||||||||
Elimination Entries | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net interest income | 0 | 0 | 0 | ||||||||||||
Provision for loan losses | 0 | 0 | 0 | ||||||||||||
Noninterest income | (181) | (181) | (128) | ||||||||||||
Noninterest expense | 0 | 0 | 0 | ||||||||||||
Income tax expense (benefit) | 0 | 0 | 0 | ||||||||||||
CONSOLIDATED NET INCOME | (181) | (181) | (128) | ||||||||||||
Noncontrolling interest in net loss of subsidiary | 181 | 181 | 128 | ||||||||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 0 | $ 0 | $ 0 |
Business Combination - Narrativ
Business Combination - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2018 | |
Business Acquisition [Line Items] | ||||||||||||||||
Net income (loss) | $ 4,133 | $ 4,000 | $ 4,239 | $ 3,824 | $ 4,123 | $ 4,082 | $ 2,139 | $ 3,741 | $ 1,155 | $ 1,846 | $ 2,187 | $ 2,058 | $ 16,196 | $ 14,085 | $ 7,246 | |
Community First | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Exchange ratio for Reliant Bancorp, Inc. common stock | 0.481 | |||||||||||||||
Other assets adjustment | (93) | |||||||||||||||
Payables and other liabilities adjustment | $ 85 | |||||||||||||||
Pro forma net interest income, adjustment | 564 | |||||||||||||||
Community First | Acquisition-related Costs | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Net income (loss) | (5,478) | |||||||||||||||
Community First | Acquisition-related Costs, Tax Benefit | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Net income (loss) | $ 536 |
Business Combination - Financia
Business Combination - Financial Impact of Merger (Details) $ / shares in Units, $ in Thousands | Jan. 01, 2018USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017shares | Dec. 29, 2017$ / shares |
Fair value of assets acquired and liabilities assumed | |||||
Goodwill | $ 43,642 | $ 43,642 | |||
Community First | |||||
Calculation of Purchase Price | |||||
Shares of Community First, Inc. common stock outstanding (in shares) | shares | 5,025,884 | ||||
Exchange ratio for Reliant Bancorp, Inc. common stock | 0.481 | ||||
Share conversion (in shares) | shares | 2,417,450 | ||||
Reliant Bancorp, Inc. common stock shares issued (in shares) | shares | 2,416,444 | ||||
Reliant Bancorp, Inc. share price at December 29, 2017 (in dollars per share) | $ / shares | $ 25.64 | ||||
Value of Reliant Bancorp, Inc. common stock shares issued | $ 61,958 | ||||
Value of fractional shares | 25 | ||||
Estimated fair value of Community First, Inc. | 61,983 | ||||
Fair value of assets acquired and liabilities assumed | |||||
Total consideration above | 61,983 | ||||
Cash and cash equivalents | (33,128) | ||||
Time deposits in other financial institutions | (23,309) | ||||
Investment securities available for sale | (69,078) | ||||
Loans, net of unearned income | (313,040) | ||||
Mortgage loans held for sale, net | (910) | ||||
Accrued interest receivable | (1,165) | ||||
Premises and equipment | (9,585) | ||||
Restricted equity securities | (1,726) | ||||
Cash surrender value of life insurance contracts | (10,664) | ||||
Other real estate owned | (1,650) | ||||
Deferred tax asset, net | (4,885) | ||||
Core deposit intangible | (7,888) | ||||
Other assets | (1,795) | ||||
Deposits—noninterest-bearing | 80,395 | ||||
Deposits—interest-bearing | 352,100 | ||||
Other borrowings | 11,522 | ||||
Payables and other liabilities | 5,061 | ||||
Net liabilities assumed (net assets acquired) | (29,745) | ||||
Goodwill | $ 32,238 |
Business Combination - Pro Form
Business Combination - Pro Forma Data (Details) - Community First $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Net interest income | $ | $ 51,031 |
Net income attributable to common shareholders | $ | $ 6,387 |
Earnings per share - basic (in dollars per share) | $ / shares | $ 0.60 |
Earnings per share - diluted (in dollars per share) | $ / shares | $ 0.60 |
Quarterly Financial Results (_3
Quarterly Financial Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Interest income | $ 20,439 | $ 20,211 | $ 19,692 | $ 18,843 | $ 18,463 | $ 17,570 | $ 16,830 | $ 16,362 | $ 10,854 | $ 10,627 | $ 9,704 | $ 8,973 | $ 79,185 | $ 69,225 | $ 40,158 |
Net interest income | 14,467 | 14,064 | 13,813 | 13,461 | 13,577 | 13,466 | 13,404 | 13,382 | 8,917 | 9,096 | 8,503 | 7,971 | 55,805 | 53,829 | 34,487 |
Net income (loss) | 2,958 | 2,614 | 2,684 | 2,281 | 2,788 | 3,240 | 1,202 | 3,277 | 970 | 1,840 | 1,794 | 1,559 | 10,537 | 10,507 | 6,163 |
Noncontrolling interest in net loss of subsidiary | 1,175 | 1,386 | 1,555 | 1,543 | 1,335 | 842 | 937 | 464 | 185 | 6 | 393 | 499 | 5,659 | 3,578 | 1,083 |
Net income attributable to common shareholders | $ 4,133 | $ 4,000 | $ 4,239 | $ 3,824 | $ 4,123 | $ 4,082 | $ 2,139 | $ 3,741 | $ 1,155 | $ 1,846 | $ 2,187 | $ 2,058 | $ 16,196 | $ 14,085 | $ 7,246 |
Basic earnings per share (in dollars per share) | $ 0.37 | $ 0.36 | $ 0.38 | $ 0.34 | $ 0.36 | $ 0.36 | $ 0.19 | $ 0.33 | $ 0.13 | $ 0.23 | $ 0.28 | $ 0.27 | $ 1.44 | $ 1.24 | $ 0.89 |
Diluted earnings per share (in dollars per share) | $ 0.37 | $ 0.36 | $ 0.38 | $ 0.33 | $ 0.36 | $ 0.36 | $ 0.19 | $ 0.33 | $ 0.13 | $ 0.22 | $ 0.28 | $ 0.26 | $ 1.44 | $ 1.23 | $ 0.88 |
Mortgage Operations (Details)
Mortgage Operations (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2011 | Nov. 15, 2011 |
Noncontrolling Interest [Line Items] | |||||
Cumulative losses, payable balance | $ 1,484 | $ 1,484 | |||
Cumulative net loss in joint ventures | $ 13,409 | ||||
Reliant Mortgage Ventures, LLC | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest, ownership percentage by parent | 51.00% | 51.00% | |||
Financial rights, ownership percentage in joint venture | 30.00% | ||||
Profit share percentage in joint venture | 30.00% | ||||
Reliant Mortgage Ventures, LLC | VHC Fund 1, LLC | |||||
Noncontrolling Interest [Line Items] | |||||
Profit share percentage in joint venture | 70.00% | ||||
Operating loss, percentage share in joint venture | 100.00% | 100.00% | 100.00% | 100.00% |
Parent Company Condensed Fina_3
Parent Company Condensed Financial Information - Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 51,042 | $ 35,178 |
Other assets | 10,289 | 9,091 |
TOTAL ASSETS | 1,898,467 | 1,724,338 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Dividends payable | 76 | 1,036 |
Subordinated debentures | 70,883 | 11,603 |
Shareholders' equity | 223,753 | 208,414 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 1,898,467 | 1,724,338 |
Parent Company | ||
ASSETS | ||
Cash and cash equivalents | 46,997 | 1,985 |
Investment in subsidiaries | 255,049 | 225,446 |
Other assets | 2,851 | 3,447 |
TOTAL ASSETS | 304,897 | 230,878 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Dividends payable | 76 | 1,036 |
Accrued expenses and other liabilities | 735 | 406 |
Subordinated debentures | 80,333 | 21,022 |
Shareholders' equity | 223,753 | 208,414 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 304,897 | $ 230,878 |
Parent Company Condensed Fina_4
Parent Company Condensed Financial Information - Condensed Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||||||
Interest expense | $ 23,380 | $ 15,396 | $ 5,671 | ||||||||||||
Income tax expense (benefit) | 2,129 | 1,372 | 1,942 | ||||||||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 4,133 | $ 4,000 | $ 4,239 | $ 3,824 | $ 4,123 | $ 4,082 | $ 2,139 | $ 3,741 | $ 1,155 | $ 1,846 | $ 2,187 | $ 2,058 | 16,196 | 14,085 | 7,246 |
Parent Company | |||||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||||
Dividends from subsidiaries | 6,800 | 7,521 | 2,141 | ||||||||||||
Interest expense | 1,520 | 1,277 | 0 | ||||||||||||
Other expense | 3,619 | 4,775 | 2,920 | ||||||||||||
Income before income tax and undistributed income from subsidiaries | 1,661 | 1,469 | (779) | ||||||||||||
Income tax expense (benefit) | (1,123) | (1,537) | (922) | ||||||||||||
Equity in undistributed income from subsidiaries | 13,412 | 11,079 | 7,103 | ||||||||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 16,196 | $ 14,085 | $ 7,246 |
Parent Company Condensed Fina_5
Parent Company Condensed Financial Information - Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||||||||||||||
Net income attributable to common shareholders | $ 4,133 | $ 4,000 | $ 4,239 | $ 3,824 | $ 4,123 | $ 4,082 | $ 2,139 | $ 3,741 | $ 1,155 | $ 1,846 | $ 2,187 | $ 2,058 | $ 16,196 | $ 14,085 | $ 7,246 |
Reclassification of federal income tax rate change | 0 | 0 | (245) | ||||||||||||
Adjustments: | |||||||||||||||
Change in other assets | (1,198) | (372) | 4,371 | ||||||||||||
Change in other liabilities | (1,606) | (2,260) | 403 | ||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (4,115) | 42,265 | (20,323) | ||||||||||||
Cash flows from investing activities | |||||||||||||||
NET CASH USED IN INVESTING ACTIVITIES | (132,276) | (109,716) | (185,864) | ||||||||||||
Cash flows from financing activities | |||||||||||||||
Issuance of subordinated debentures, net of issuance costs | 59,198 | 0 | 0 | ||||||||||||
Redemption of common stock | (8,379) | (6) | 0 | ||||||||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 152,255 | 81,961 | 202,612 | ||||||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 15,864 | 14,510 | (3,575) | ||||||||||||
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 35,178 | 20,668 | 24,243 | 35,178 | 20,668 | 24,243 | |||||||||
CASH AND CASH EQUIVALENTS - END OF PERIOD | 51,042 | 35,178 | 20,668 | 51,042 | 35,178 | 20,668 | |||||||||
Parent Company | |||||||||||||||
Cash flows from operating activities | |||||||||||||||
Net income attributable to common shareholders | 16,196 | 14,085 | 7,246 | ||||||||||||
Reclassification of federal income tax rate change | 0 | 0 | (245) | ||||||||||||
Adjustments: | |||||||||||||||
Equity in undistributed income from subsidiaries | (13,412) | (11,079) | (7,103) | ||||||||||||
Accretion related to subordinated debentures | 113 | 969 | 0 | ||||||||||||
Change in other assets | 596 | (1,333) | 790 | ||||||||||||
Change in other liabilities | 130 | (230) | 595 | ||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 3,623 | 2,412 | 1,283 | ||||||||||||
Cash flows from investing activities | |||||||||||||||
Investment in subsidiary | (6,017) | 0 | (21,195) | ||||||||||||
NET CASH USED IN INVESTING ACTIVITIES | (6,017) | 0 | (21,195) | ||||||||||||
Cash flows from financing activities | |||||||||||||||
Issuance of subordinated debentures, net of issuance costs | 59,198 | 0 | 0 | ||||||||||||
Dividends paid | (4,013) | (3,451) | (3,193) | ||||||||||||
Redemption of common stock | (8,379) | (6) | 0 | ||||||||||||
Proceeds from equity issuances, net | 600 | 1,321 | 24,648 | ||||||||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 47,406 | (2,136) | 21,455 | ||||||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 45,012 | 276 | 1,543 | ||||||||||||
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | $ 1,985 | $ 1,709 | $ 166 | 1,985 | 1,709 | 166 | |||||||||
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ 46,997 | $ 1,985 | $ 1,709 | $ 46,997 | $ 1,985 | $ 1,709 |
Contract Revenue (Details)
Contract Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | |||
Service charges on deposit accounts | $ 3,746 | $ 3,419 | $ 1,251 |
Credit card interchange fees | |||
Revenue from External Customer [Line Items] | |||
Service charges on deposit accounts | 136 | 65 | 9 |
Investment brokerage fees | |||
Revenue from External Customer [Line Items] | |||
Service charges on deposit accounts | $ 49 | $ 99 | $ 119 |
Subsequent Events (Details)
Subsequent Events (Details) | Feb. 29, 2020USD ($)instrument | Feb. 27, 2020USD ($) | Jan. 01, 2020USD ($)$ / sharesshares | Oct. 22, 2019USD ($)$ / shares | Jun. 30, 2020$ / sharesshares | Dec. 31, 2019USD ($)$ / shares | Mar. 10, 2020USD ($) | Dec. 31, 2018USD ($)$ / shares | Dec. 04, 2018USD ($)$ / shares |
Subsequent Event [Line Items] | |||||||||
Aggregate consideration payable to holders | $ 430 | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | $ 1 | $ 1 | ||||||
Stock repurchase program, authorized amount | $ 8,291 | $ 12,000,000 | |||||||
FABK | Forecast | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||||
TCB Holdings | |||||||||
Subsequent Event [Line Items] | |||||||||
Total assets | 253,000,000 | ||||||||
FABK | |||||||||
Subsequent Event [Line Items] | |||||||||
Total assets | 738,000,000 | ||||||||
Business combination, average closing price | $ / shares | $ 18.5464 | ||||||||
Dividing average closing price | $ / shares | $ 23.183 | ||||||||
Journal on determination amount | $ 3,706.69 | ||||||||
Terminate FABK merger agreement without giving Reliant written notice | 0.20 | ||||||||
FABK | Forecast | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, par value (in dollars per share) | $ / shares | 1 | ||||||||
Share price (in dollars per share) | $ / shares | $ 3 | ||||||||
Reliant Bancorp, Inc. shares issued per share | shares | 1.17 | ||||||||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt instrument, face amount | $ 60,000,000 | ||||||||
Subordinated borrowing, interest rate | 5.125% | ||||||||
Stock repurchase program, authorized amount | $ 15,000 | ||||||||
Subsequent Event | Common Stock | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | ||||||||
Share price (in dollars per share) | $ / shares | $ 17.13 | ||||||||
Reliant Bancorp, Inc. shares issued per share | shares | 0.769 | ||||||||
Subsequent Event | TCB Holdings | |||||||||
Subsequent Event [Line Items] | |||||||||
Cash paid | $ 18,073,000 | ||||||||
Cash in lieu of fractional shares based on volume weighted average | 22.36 | ||||||||
Cash payment in an amount equal to product | $ 34.25 | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | ||||||||
Reliant Bancorp, Inc. common stock shares issued (in shares) | shares | 811,210 | ||||||||
Interest rate swap | Cash Flow Hedging | |||||||||
Subsequent Event [Line Items] | |||||||||
Notional amount | $ 110,000,000 | $ 60,000,000 | |||||||
Interest rate swap | Subsequent Event | Cash Flow Hedging | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of derivative instruments | instrument | 2 | ||||||||
Notional amount | $ 25,000,000 | ||||||||
Weighted average pay rates | 1.22% | ||||||||
Interest rate swap, 4 year maturity | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Derivative hedges maturities term | 4 years | ||||||||
Interest rate swap, five year maturity | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Derivative hedges maturities term | 5 years |