Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 07, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-37391 | |
Entity Registrant Name | Reliant Bancorp, Inc. | |
Entity Incorporation, State or Country Code | TN | |
Entity Tax Identification Number | 37-1641316 | |
Entity Address, Address Line One | 1736 Carothers Parkway, | |
Entity Address, Address Line Two | Suite 100, | |
Entity Address, City or Town | Brentwood, | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37027 | |
City Area Code | 615 | |
Local Phone Number | 221-2020 | |
Title of 12(b) Security | Common Stock, $1.00 par value per share | |
Trading Symbol | RBNC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 16,618,298 | |
Entity Central Index Key | 0001606440 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 46,318 | $ 50,990 |
Federal funds sold | 1,714 | 52 |
Total cash and cash equivalents | 48,032 | 51,042 |
Securities available for sale | 256,928 | 260,293 |
Loans, net | 1,604,582 | 1,397,374 |
Mortgage loans held for sale, net | 70,352 | 37,476 |
Accrued interest receivable | 7,289 | 7,111 |
Premises and equipment, net | 27,609 | 21,376 |
Operating leases right of use assets | 11,473 | |
Restricted equity securities, at cost | 14,405 | 11,279 |
Other real estate, net | 0 | 750 |
Cash surrender value of life insurance contracts | 52,556 | 46,632 |
Deferred tax assets, net | 5,426 | 3,933 |
Goodwill | 50,723 | 43,642 |
Core deposit intangibles | 10,486 | 7,270 |
Other assets | 17,927 | 10,289 |
TOTAL ASSETS | 2,177,788 | 1,898,467 |
Deposits | ||
Noninterest-bearing demand | 320,553 | 260,073 |
Interest-bearing demand | 170,304 | 152,718 |
Savings and money market deposit accounts | 494,750 | 408,724 |
Time | 736,841 | 762,274 |
Total deposits | 1,722,448 | 1,583,789 |
Accrued interest payable | 3,995 | 2,022 |
Subordinated debentures | 70,391 | 70,883 |
Federal Home Loan Bank advances | 127,628 | 10,737 |
Dividends payable | 9 | 76 |
Operating lease liabilities | 11,761 | |
Other liabilities | 6,884 | 7,207 |
TOTAL LIABILITIES | 1,943,116 | 1,674,714 |
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; 12,014,495 and 11,206,254 shares issued and outstanding at March 31, 2020, and December 31, 2019, respectively | 12,014 | 11,206 |
Additional paid-in capital | 184,523 | 167,006 |
Retained earnings | 39,150 | 40,472 |
Accumulated other comprehensive income (loss) | (1,015) | 5,069 |
TOTAL STOCKHOLDERS’ EQUITY | 234,672 | 223,753 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 2,177,788 | $ 1,898,467 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
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) | 12,014,495 | 11,206,254 |
Common stock, shares outstanding (in shares) | 12,014,495 | 11,206,254 |
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 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - Unaudited - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
INTEREST INCOME | ||
Interest and fees on loans | $ 20,645 | $ 16,169 |
Interest and fees on loans held for sale | 560 | 153 |
Interest on investment securities, taxable | 451 | 503 |
Interest on investment securities, nontaxable | 1,371 | 1,718 |
Federal funds sold and other | 279 | 300 |
TOTAL INTEREST INCOME | 23,306 | 18,843 |
Deposits | ||
Demand | 100 | 111 |
Savings and money market deposit accounts | 975 | 1,130 |
Time | 3,762 | 3,571 |
Federal Home Loan Bank advances and other | 361 | 377 |
Subordinated debentures | 993 | 193 |
TOTAL INTEREST EXPENSE | 6,191 | 5,382 |
NET INTEREST INCOME | 17,115 | 13,461 |
PROVISION FOR LOAN LOSSES | 2,900 | 0 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 14,215 | 13,461 |
NONINTEREST INCOME | ||
Service charges on deposit accounts | 1,208 | 884 |
Gains on mortgage loans sold, net | 1,573 | 560 |
Gain on securities transactions, net | 0 | 131 |
Gain on sale of other real estate | 14 | 0 |
Gain on disposal of premises and equipment | 9 | 0 |
Other | 478 | 363 |
TOTAL NONINTEREST INCOME | 3,282 | 1,938 |
NONINTEREST EXPENSE | ||
Salaries and employee benefits | 9,237 | 7,265 |
Occupancy | 1,486 | 1,352 |
Information technology | 1,819 | 1,410 |
Advertising and public relations | 353 | 254 |
Audit, legal and consulting | 478 | 796 |
Federal deposit insurance | 336 | 195 |
Merger expenses | 4,186 | 2 |
Other operating | 1,703 | 1,472 |
TOTAL NONINTEREST EXPENSE | 19,598 | 12,746 |
INCOME BEFORE PROVISION FOR INCOME TAXES | (2,101) | 2,653 |
INCOME TAX EXPENSE (BENEFIT) | (910) | 372 |
CONSOLIDATED NET INCOME (LOSS) | (1,191) | 2,281 |
NONCONTROLLING INTEREST IN NET LOSS OF SUBSIDIARY | 976 | 1,543 |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ (215) | $ 3,824 |
Basic net income (loss) attributable to common shareholders, per share (in dollars per share) | $ (0.02) | $ 0.34 |
Diluted net income (loss) attributable to common shareholders, per share (in dollars per share) | $ (0.02) | $ 0.33 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - Unaudited - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Consolidated net income (loss) | $ (1,191) | $ 2,281 |
Other comprehensive income (loss) | ||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | (1,749) | 4,863 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (4,335) | (470) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | (97) |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | (6,084) | 4,296 |
TOTAL COMPREHENSIVE INCOME (LOSS) | (7,275) | 6,577 |
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, Tax | 619 | (1,721) |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | $ 1,535 | 167 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | $ 34 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) - Unaudited (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, Tax | $ (619) | $ 1,721 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | $ (1,535) | (167) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | $ 34 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - Unaudited - 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, 2018 | 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 | 250 | 250 | ||||
Exercise of stock options (in shares) | 2,183 | |||||
Exercise of stock options | 28 | $ 2 | 26 | |||
Restricted stock awards (in shares) | 3,000 | |||||
Restricted stock awards | 0 | $ 3 | (3) | |||
Restricted stock forfeiture (in shares) | (3,750) | |||||
Restricted stock forfeiture | 1 | $ (4) | 4 | 1 | ||
Common stock shares redeemed (in shares) | (29,958) | |||||
Common stock shares redeemed | (659) | $ (30) | (629) | |||
Noncontrolling interest contributions | 1,543 | 1,543 | ||||
Cash dividend declared to common shareholders | (1,035) | (1,035) | ||||
Net income (loss) | 2,281 | 3,824 | (1,543) | |||
Other comprehensive income (loss) | 4,296 | 4,296 | ||||
BALANCE (in shares) at Mar. 31, 2019 | 11,502,285 | |||||
BALANCE at Mar. 31, 2019 | $ 215,119 | $ 11,502 | 172,886 | 30,119 | 612 | 0 |
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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation expense | $ 349 | 349 | ||||
Exercise of stock options (in shares) | 868 | 868 | ||||
Exercise of stock options | $ 8 | $ 1 | 7 | |||
Restricted stock awards (in shares) | 0 | |||||
Restricted stock awards | 0 | $ 0 | 0 | |||
Restricted stock and dividend forfeiture (in shares) | (3,837) | |||||
Restricted stock and dividend forfeiture | (73) | $ (4) | (69) | 0 | ||
Conversion shares issued to shareholders of Tennessee Community Bancorp, Inc. (in shares) | 811,210 | |||||
Conversion shares issued to shareholders of Tennessee Community Bancorp, Inc. | 18,041 | $ 811 | 17,230 | |||
Noncontrolling interest contributions | 976 | 976 | ||||
Cash dividend declared to common shareholders | (1,207) | (1,207) | ||||
Net income (loss) | (1,191) | (215) | (976) | |||
Other comprehensive income (loss) | $ (6,084) | (6,084) | ||||
BALANCE (in shares) at Mar. 31, 2020 | 12,014,495 | 12,014,495 | ||||
BALANCE at Mar. 31, 2020 | $ 234,672 | $ 12,014 | $ 184,523 | $ 39,150 | $ (1,015) | $ 0 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - Parenthetical - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared to common shareholders (in dollars per share) | $ 0.10 | $ 0.09 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
OPERATING ACTIVITIES | ||
Consolidated net income (loss) | $ (1,191) | $ 2,281 |
Adjustments to reconcile consolidated net income (loss) to net cash provided (used) by operating activities | ||
Provision for loan losses | 2,900 | 0 |
Deferred income taxes | (295) | 1,179 |
Gain on disposal of premises and equipment | (9) | 0 |
Depreciation and amortization of premises and equipment | 598 | 497 |
Net amortization of securities | 202 | 825 |
Net realized gains on sales of securities | 0 | (131) |
Gains on mortgage loans sold, net | (1,573) | (560) |
Stock-based compensation expense | 349 | 250 |
Gain on other real estate | (14) | 0 |
Increase in cash surrender value of life insurance contracts | (295) | (278) |
Mortgage loans originated for resale | (89,076) | (18,422) |
Proceeds from sale of mortgage loans | 57,773 | 24,815 |
Other amortization (accretion) | (1) | (134) |
Accrued interest receivable | 770 | (175) |
Other assets | (13,715) | (1,433) |
Accrued interest payable | 455 | (73) |
Other liabilities | (2,487) | (1,432) |
TOTAL ADJUSTMENTS | (44,418) | 4,928 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (45,609) | 7,209 |
INVESTING ACTIVITIES | ||
Cash used to convert shares, and redeem stock options and fractional shares, net of cash received | 7,480 | 0 |
Activities in available for sale securities | ||
Purchases | 0 | (20,571) |
Sales | 56,336 | 10,558 |
Maturities, prepayments and calls | 1,836 | 2,291 |
Purchases of restricted equity securities | (2,217) | (9) |
Redemption of restricted equity securities | 0 | 200 |
Net increase in loans | (38,508) | (30,253) |
Purchase of buildings, leasehold improvements, and equipment | (457) | (434) |
Proceeds from sale of premises and equipment | 75 | 0 |
Proceeds from sale of other real estate | 764 | 0 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 10,349 | (38,218) |
FINANCING ACTIVITIES | ||
Net change in deposits | (71,768) | 73,427 |
Net change in other borrowings acquired from merger | (58) | 0 |
Net change in advances from Federal Home Loan Bank | 103,821 | (42,175) |
Issuance of common stock, net of repurchase of restricted shares | 0 | 28 |
Issuance of common stock related to exercise of stock options | 8 | 0 |
Redemption of common stock to settle tax liability on restricted stock | (73) | (659) |
Noncontrolling interest contributions received | 976 | 1,450 |
Cash dividends paid on common stock | (1,274) | (1,035) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 31,632 | 31,036 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (3,628) | 27 |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 51,042 | 35,178 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 47,414 | 35,205 |
Cash paid during the period for | ||
Interest | 4,218 | 5,455 |
Taxes | 0 | 4 |
Non-cash investing and financing activities | ||
Unrealized gain (loss) on securities available-for-sale | (1,327) | 6,954 |
Unrealized loss on derivatives | (6,910) | (1,139) |
Change in due to/from noncontrolling interest | $ 976 | $ 1,543 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of Reliant Bancorp, Inc. conform to accounting principles generally accepted in the United States of America ("U.S. GAAP") and to general practices within the banking industry. The following is a brief summary of the significant policies. Nature of Operations Reliant Bancorp, 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, Chattanooga, Hendersonville, and Memphis, Tennessee, as well as two in Little Rock and one in Crossett, Arkansas. On April 1, 2020, FABK, a community banking organization headquartered in Clarksville, Tennessee, was merged with and into the Company (See Note 15). Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with instructions to Quarterly Report on Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, and cash flows in conformity with U.S. GAAP. All adjustments consisting of normally recurring accruals that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods covered by the report have been included. The accompanying unaudited consolidated financial statements should be read in conjunction with Reliant Bancorp, Inc.’s consolidated financial statements and related notes appearing in Reliant Bancorp, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2019. The consolidated financial statements as of and for the periods presented include the accounts of Reliant Bancorp Inc., Reliant Bank (the "Bank"), Community First Trups Holding Company ("TRUPS"), which is wholly owned by Reliant Bancorp Inc., Reliant Investment Holdings, LLC ("Holdings"), which is wholly owned by the Bank, and Reliant Mortgage Ventures, LLC ("RMV"), of which the Bank controls 51% of the governance rights. Reliant Bancorp Inc., the Bank, TRUPS, Holdings and RMV, are, collectively, referred to herein as the “Company”. All significant inter-company balances and transactions have been eliminated in consolidation. As described in Note 12 to these unaudited consolidated financial statements, Reliant Bancorp, Inc. and TCB merged effective on January 1, 2020. The accounting and reporting policies of the Company conform to U.S. GAAP and general practices in the banking industry. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP 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. The consolidated financial statements as of March 31, 2020, and for the three months ended March 31, 2020 and 2019, included herein have not been audited. The accounting and reporting policies of the Company conform to U.S. GAAP and Article 8 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although the Company believes that the disclosures made are adequate to make the information not misleading. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The accompanying consolidated financial statements reflect all adjustments, which are, in the opinion of management, necessary to present a fair statement of the results for the interim periods presented. Such adjustments are of a normal recurring nature. The Company evaluates subsequent events through the date of filing. Certain prior period amounts have been reclassified to conform to the current period presentation. The results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The amortized cost and fair value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income at March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 Amortized Gross Gross Estimated U. S. Treasury and other U. S. government agencies $ 56 $ 1 $ — $ 57 State and municipal 185,811 11,079 (436) 196,454 Corporate bonds 7,880 17 (62) 7,835 Mortgage backed securities 37,907 211 (2,217) 35,901 Asset backed securities 17,030 — (349) 16,681 Total $ 248,684 $ 11,308 $ (3,064) $ 256,928 December 31, 2019 Amortized Gross Gross Estimated 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 Securities pledged at March 31, 2020 and December 31, 2019 had a carrying amount of $45,380 and $46,918, respectively, and were pledged to collateralize Federal Home Loan Bank ("FHLB") advances, Federal Reserve Bank ("FRB") advances and municipal deposits. NOTE 2 - SECURITIES (CONTINUED) The fair values of available for sale debt securities at March 31, 2020 by contractual maturity are provided below. Actual maturities may differ from contractual maturities for mortgage and asset backed securities since the underlying asset may be called or prepaid with or without penalty. Securities not due at a single maturity date are shown separately. Amortized Estimated Due within one year $ 1,000 $ 998 Due in one to five years 2,311 2,312 Due in five to ten years 10,330 10,725 Due after ten years 180,106 190,311 Mortgage backed securities 37,907 35,901 Asset backed securities 17,030 16,681 Total $ 248,684 $ 256,928 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 have been in a continuous unrealized loss position as of March 31, 2020 and December 31, 2019, respectively: Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized March 31, 2020 State and municipal $ 3,748 $ 436 $ — $ — $ 3,748 $ 436 Corporate bonds 4,439 61 499 1 4,938 62 Mortgage backed securities 16,162 1,059 11,831 1,158 27,993 2,217 Asset backed securities — — 16,124 349 16,124 349 Total temporarily impaired $ 24,349 $ 1,556 $ 28,454 $ 1,508 $ 52,803 $ 3,064 December 31, 2019 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 Management has the intent and ability to hold all securities in an unrealized loss position for the foreseeable future, and the decline in fair value is 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 41 and 47 securities in an unrealized loss position as of March 31, 2020 and December 31, 2019, respectively. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES Loans at March 31, 2020 and December 31, 2019 were comprised as follows: March 31, 2020 December 31, 2019 Commercial, Industrial and Agricultural $ 283,035 $ 245,515 Real Estate 1-4 Family Residential 261,718 227,529 1-4 Family HELOC 99,296 96,228 Multi-family and Commercial 635,650 536,845 Construction, Land Development and Farmland 308,598 273,872 Consumer 24,141 16,855 Other 7,456 13,180 Total 1,619,894 1,410,024 Less Deferred loan fees 191 72 Allowance for loan losses 15,121 12,578 Loans, net $ 1,604,582 $ 1,397,374 Activity in the allowance for loan losses by portfolio segment was as follows for the three months ended March 31, 2020 and March 31, 2019, respectively: Commercial Industrial and Agricultural Multi-family Construction 1-4 Family 1-4 Family HELOC Consumer Other Total Beginning balance at December 31, 2019 $ 2,529 $ 5,285 $ 2,649 $ 1,280 $ 624 $ 177 $ 34 $ 12,578 Charge-offs (294) — (114) — — (31) — (439) Recoveries 61 3 — 11 1 6 — 82 Provision 1,555 1,472 (699) 197 248 146 (19) 2,900 Ending balance at $ 3,851 $ 6,760 $ 1,836 $ 1,488 $ 873 $ 298 $ 15 $ 15,121 Beginning balance at December 31, 2018 $ 1,751 $ 4,429 $ 2,500 $ 1,333 $ 656 $ 184 $ 39 $ 10,892 Charge-offs (6) — — (17) — (11) — (34) Recoveries 240 34 — 212 — 10 — 496 Provision (111) 130 150 (169) 14 (12) (2) — Ending balance at $ 1,874 $ 4,593 $ 2,650 $ 1,359 $ 670 $ 171 $ 37 $ 11,354 NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES (CONTINUED) The allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2020 were as follows: Commercial Industrial and Agricultural Multi-family Construction 1-4 Family 1-4 Family HELOC Consumer Other Total Allowance for loan losses Individually evaluated for impairment $ 679 $ — $ — $ — $ — $ 4 $ — $ 683 Acquired with credit impairment — — — — — — — — Collectively evaluated for impairment 3,172 6,760 1,836 1,488 873 294 15 14,438 Total $ 3,851 $ 6,760 $ 1,836 $ 1,488 $ 873 $ 298 $ 15 $ 15,121 Loans Individually evaluated for impairment $ 936 $ 2,375 $ 1,095 $ 1,206 $ 418 $ 4 $ — $ 6,034 Acquired with credit impairment — 233 1,032 1,141 14 15 — 2,435 Collectively evaluated for impairment 282,099 633,042 306,471 259,371 98,864 24,122 7,456 1,611,425 Total $ 283,035 $ 635,650 $ 308,598 $ 261,718 $ 99,296 $ 24,141 $ 7,456 $ 1,619,894 The allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019 were as follows: Commercial Industrial and Agricultural Multi-family Construction 1-4 Family 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 NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES (CONTINUED) Risk characteristics relevant to each portfolio segment are as follows: Commercial, industrial and agricultural: The commercial, industrial and agricultural loan portfolio segment includes 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, industrial and agricultural 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. Multi-family and commercial real estate: Multi-family and commercial real estate loans are subject to underwriting standards and processes similar to commercial, industrial and agricultural 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 comprising 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 an affiliate of the party, who owns the property. 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 development 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 substantial 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 LOSSES (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 impact 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 impact 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 Non-accrual loans by class of loan were as follows at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Commercial, Industrial and Agricultural $ 355 $ 572 Multi-family and Commercial Real Estate 1,276 1,276 Construction, Land Development and Farmland 412 555 1-4 Family Residential Real Estate 1,535 1,344 1-4 Family HELOC 341 296 Consumer 30 28 Total $ 3,949 $ 4,071 Performing non-accrual loans totaled $931 and $1,332 at March 31, 2020 and December 31, 2019, respectively. NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES (CONTINUED) Individually impaired loans by class of loans were as follows at March 31, 2020: Unpaid Recorded Recorded Total Related Commercial, Industrial and Agricultural $ 1,707 $ 79 $ 857 $ 936 $ 679 Multi-family and Commercial Real Estate 4,216 2,608 — 2,608 — Construction, Land Development and Farmland 3,780 2,127 — 2,127 — 1-4 Family Residential Real Estate 3,922 2,347 — 2,347 — 1-4 Family HELOC 512 433 — 433 — Consumer 110 14 4 18 4 Total $ 14,247 $ 7,608 $ 861 $ 8,469 $ 683 Individually impaired loans by class of loans were as follows at December 31, 2019: Unpaid Recorded Recorded Total 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 The average balances of impaired loans for the three months ended March 31, 2020 and 2019 were as follows: 2020 2019 Commercial, Industrial and Agricultural $ 1,045 $ 736 Multi-family and Commercial Real Estate 2,610 2,202 Construction, Land Development and Farmland 2,079 3,173 1-4 Family Residential Real Estate 1,831 1,724 1-4 Family HELOC 404 — Consumer 9 17 Total $ 7,978 $ 7,852 NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES (CONTINUED) The Company utilizes a risk grading system to monitor the credit quality of the Company’s commercial loan portfolio which consists of commercial, industrial and agricultural, commercial real estate and construction loans. Loans are graded on a scale of 1 to 9. Grades 1 to 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. 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 exists 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 exists 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. The borrower's 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 substandard. Substandard assets have a high probability of payment default, or they have other well-defined weaknesses. They require more intensive supervision 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 LOSSES (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. Non-commercial 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 March 31, 2020: Pass Special Substandard Total Commercial, Industrial and Agricultural $ 280,963 $ 456 $ 1,616 $ 283,035 1-4 Family Residential Real Estate 258,828 277 2,613 261,718 1-4 Family HELOC 98,863 — 433 99,296 Multi-family and Commercial Real Estate 629,381 1,992 4,277 635,650 Construction, Land Development and Farmland 307,459 — 1,139 308,598 Consumer 23,885 24 232 24,141 Other 7,456 — — 7,456 Total $ 1,606,835 $ 2,749 $ 10,310 $ 1,619,894 Credit quality indicators by class of loan were as follows at December 31, 2019: Pass Special 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 LOSSES (CONTINUED) Past due status by class of loan was as follows at March 31, 2020: 30-59 Days 60-89 Days 90+ Days Total Current Total Loans Commercial, Industrial and Agricultural $ 603 $ 25 $ 432 $ 1,060 $ 281,975 $ 283,035 1-4 Family Residential Real Estate 424 413 469 1,306 260,412 261,718 1-4 Family HELOC 187 — 296 483 98,813 99,296 Multi-family and Commercial Real Estate 220 — 1,049 1,269 634,381 635,650 Construction, Land Development and Farmland 342 — 225 567 308,031 308,598 Consumer 23 11 16 50 24,091 24,141 Other — — — — 7,456 7,456 Total $ 1,799 $ 449 $ 2,487 $ 4,735 $ 1,615,159 $ 1,619,894 Past due status by class of loan was as follows at December 31, 2019: 30-59 Days 60-89 Days 90+ Days Total 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 There was one loan totaling $78 past due 90 days or more and still accruing interest at March 31, 2020. Additionally, credit card balances totaling $16 were past due 90 days or more and still accruing interest. At December 31, 2019, there was one loan totaling $64 past due 90 days or more and still accruing interest. During the three months ended March 31, 2020 and March 31, 2019, there were no loans that were modified as troubled debt restructurings("TDRs"). T he Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law on March 27, 2020. Section 4013 of the CARES Act provides that financial institutions may elect to account for loan modifications occurring between March 1, 2020, and the earlier of December 31, 2020 and the 60th day after the end of the COVID-19 national emergency declared by President Trump, which are due to COVID-19 and where the borrower was current on contractual payments as of December 31, 2019, as not TDRs. Additionally, on April 7, 2020, federal banking regulators issued an Interagency Statement on Loan Modifications by Financial Institutions Working with Customers Affected by the Coronavirus (Revised), which replaced a prior interagency statement predating the CARES Act. The revised interagency statement encourages financial institutions to work prudently with borrowers that may be unable to meet their contractual payment obligations because of the effects of COVID-19. It also addresses loan modifications not meeting the criteria set forth in Section 4013 of the CARES Act or for which financial institutions elect not to apply Section 4013. With respect to these loan modifications, the revised interagency statement provides that short-term (e.g. six month) modifications made on a good faith basis in response to COVID-19 to borrowers who were current on their contractual payments at the time of implementation of a modification program are not TDRs . NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES (CONTINUED) Through March 31, 2020, the Company had applied this guidance and modified loans with aggregate principal balances totaling $319.0 million. More of these types of modifications are likely to be executed in the second quarter of 2020. The majority of these modifications involved three-month extensions of either interest-only periods or full payment deferrals. Of these modified loans the primary categories were $153.9 million commercial real estate loans, $80.2 million of hospitality-based loans, $39.2 million of restaurant-related loans, $16.1 million of commercial and industrial loans, $14.8 million of multifamily loans, and the remainder being church, medical and consumer loans. The CARES Act was signed into law on March 27, 2020, and provides over $2.0 trillion in emergency economic relief to individuals and businesses impacted by the COVID-19 pandemic. T he CARES Act authorized the Small Business Administration (“SBA”) to administer new loan programs that included, but were not limited to, the guarantee of loans under a new 7(a) loan program called the Paycheck Protection Program (“PPP”). Upon completion of the FABK Transaction as disclosed in Note 15, we assumed their qualified SBA lender status. An eligible business can apply for a PPP loan up to the lesser of: (1) 2.5 times its average monthly “payroll costs;” or (2) $10.0 million. PPP loans will have: (a) an interest rate of 1.0%, (b) a two-year loan term to maturity; and (c) principal and interest payments deferred for six months from the date of disbursement. The SBA will guarantee 100% of the PPP loans made to eligible borrowers. The entire principal amount of the borrower’s PPP loan, including any accrued interest, is eligible to be reduced by the loan forgiveness amount under the PPP so long as employee and compensation levels of the business are maintained and 75% of the loan proceeds are used for payroll expenses, with the remaining 25% of the loan proceeds used for other qualifying expenses. 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 all contractually required payments would not be collected. The outstanding balance and carrying amount of the purchased credit impaired loans were as follows at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Commercial, Industrial and Agricultural $ 232 $ — Multi-family and Commercial Real Estate 242 217 Construction, Land Development and Farmland 1,283 1,021 1-4 Family Residential Real Estate 1,453 231 1-4 Family HELOC 19 — Consumer 21 — Total outstanding balance 3,250 1,469 Less remaining purchase discount 815 246 Allowance for loan losses — — Carrying amount, net of allowance for loan losses $ 2,435 $ 1,223 Activity related to the accretable portion of the purchase discount on loans acquired with deteriorated credit quality is as follows for the three months ended March 31, 2020 and 2019: 2020 2019 Balance at January 1, $ 98 $ 110 New loans purchased 131 — Year-to-date settlements (20) — Balance at March 31, 209 110 |
Other Real Estate
Other Real Estate | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
OTHER REAL ESTATE | OTHER REAL ESTATEAt March 31, 2020, the Company did not have any other real estate. During the three months ended March 31, 2020, the one parcel of property held at December 31, 2019 with a value of $750 was sold for $764. Additionally, at March 31, 2020, there were three real estate loans to two borrowers with related balances totaling $906 in the process of foreclosure. At December 31, 2019, the balance of other real estate was $750 of one parcel of other real estate. During the three months ended March 31, 2019, $943 was added to other real estate. Expenses related to other real estate totaled $6 for the three months ended March 31, 2019. |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUES OF ASSETS AND LIABILITIES | FAIR VALUES OF ASSETS AND LIABILITIES 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; and • 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. NOTE 5 - FAIR VALUES OF ASSETS AND LIABILITIES (CONTINUED) Following is a description of the valuation methodologies used for assets and liabilities measured at fair value on a recurring basis: Securities available for sale: The fair values of securities available for sale 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 securities available for sale 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. 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. Other Real Estate : The fair value of other real estate is generally based on recent real estate appraisals less estimated disposition cost. These appraisals may use 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 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 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. 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 recurring basis, by level within the fair value hierarchy, as of March 31, 2020 and December 31, 2019: Fair Value Quoted Significant Significant March 31, 2020 Assets U. S. Treasury and other U. S. government agencies $ 57 $ — $ 57 $ — State and municipal 196,454 — 196,454 — Corporate bonds 7,835 — 7,835 — Mortgage backed securities 35,901 — 35,901 — Asset backed securities 16,681 — 16,681 — Liabilities Interest rate swaps $ 9,618 $ — $ 9,618 $ — 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 swaps 688 — 688 — Liabilities Interest rate swaps $ 3,396 $ — $ 3,396 $ — 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 March 31, 2020 and December 31, 2019: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs March 31, 2020 Assets Impaired loans $ 178 $ — $ — $ 178 Other real estate owned — — — — December 31, 2019 Assets Impaired loans $ 553 $ — $ — $ 553 Other real estate owned 750 — — 750 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 March 31, 2020 and December 31, 2019: Valuation Significant Range 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 not reported at fair value at March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 Carrying Estimated Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Financial assets Cash and due from banks $ 46,318 $ 46,318 $ 46,318 $ — $ — Federal funds sold 1,714 1,714 — 1,714 — Loans, net 1,604,582 1,594,903 — — 1,594,903 Mortgage loans held for sale 70,352 70,352 — — 70,352 Accrued interest receivable 7,289 7,289 — 7,289 — Restricted equity securities 14,405 14,405 — 14,405 — Financial liabilities Deposits $ 1,722,448 $ 1,728,071 $ — $ — $ 1,728,071 Accrued interest payable 3,995 3,995 — 3,995 — Subordinate debentures 70,391 68,645 — — 68,645 Federal Home Loan Bank advances 127,628 127,965 — — 127,965 December 31, 2019 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 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, federal funds sold or purchased, demand deposits, and variable rate loans or deposits that re-price frequently and fully. For fixed rate loans or deposits and for variable rate loans or deposits with infrequent re-pricing or re-pricing 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 discounted cash flows using current rates for similar financing. Due to COVID- 19 disruption of the market for sales of mortgage loans at March 31, 2020, the Company migrated the fair value for mortgage loans held for sale from Level 2 to Level 3. It is management's estimate that as of that date the fair value of those loans approximated the carrying value. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION In 2006, the Board of Directors and shareholders of the Bank (then known as "Commerce Union Bank") approved the Commerce Union Bank Stock Option Plan (the “Plan”). The Plan provided for the granting of stock options, for up to 625,000 shares of common stock to employees and organizers, and authorized the issuance of common stock upon the exercise of such options. As part of the Bank's reorganization into a holding company corporate structure in 2012, all Bank options were replaced with Commerce Union Bancshares, Inc. (now known as "Reliant Bancorp, 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 (the “A&R Plan”), which permits the grant of awards with respect to up to 1,250,000 shares of Company common stock in the form of stock options. As part of the merger of Commerce Union Bank and Reliant Bank, all outstanding stock options of Reliant Bank were converted to stock options of Commerce Union Bancshares, Inc. (now known as "Reliant Bancorp, Inc.") under the A&R Plan. Under the A&R 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 10 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. On June 18, 2015, the shareholders of Commerce Union Bancshares, Inc. (now known as "Reliant Bancorp, Inc.") approved the Commerce Union Bancshares, Inc. 2015 Equity Incentive Plan, which reserves up to 900,000 shares of common stock to be subject to awards under the plan, including awards in the form of stock options, restricted stock grants, performance-based awards, and other awards denominated or payable by reference to or based on or related to common stock. Common Stock Options A summary of stock option activity for the three months ended March 31, 2020 is as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2020 149,293 $ 18.81 6.68 years $ 553 Granted — $ — Exercised (868) $ 8.49 1.73 years 11 Forfeited or expired — $ — Outstanding at March 31, 2020 148,425 $ 18.87 6.62 years $ 22 Exercisable at March 31, 2020 73,825 $ 15.39 5.22 years $ 22 Shares Weighted Average Non-vested options at January 1, 2020 74,600 $6.08 Granted — $— Vested — $— Forfeited — $— Non-vested options at March 31, 2020 74,600 $6.08 As of March 31, 2020, there was $346 of unrecognized future compensation expense to be recognized related to stock options. NOTE 6 - STOCK-BASED COMPENSATION (CONTINUED) Restricted Stock and Restricted Stock Unit Awards The following table shows the activity related to non-vested restricted stock and restricted stock unit awards for the three months ended March 31, 2020: Restricted Stock Units Restricted Stock Shares Weighted Average Grant-Date Shares Weighted Average Grant-Date Non-vested shares at January 1, 2020 47,750 $ 23.30 90,960 $ 25.31 Granted — — — — Vested — — (11,163) 21.89 Forfeited — — (3,837) 21.89 Non-vested shares at March 31, 2020 47,750 $ 23.30 75,960 $ 25.99 As of March 31, 2020, there was $2,323 of unrecognized compensation cost related to non-vested restricted stock and restricted stock unit awards. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
REGULATORY CAPITAL REQUIREMENTS | REGULATORY CAPITAL REQUIREMENTS The Bank is subject to regulatory capital requirements administered by the federal and state banking agencies. The Company falls under the Small Bank Holding Company and Savings and Loan Holding Company Policy Statement (the “Small Bank Holding Company Policy Statement”), which is generally applicable to bank holding companies with consolidated assets of less than $3 billion, and is, therefore, not subject to consolidated capital requirements. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Management believes as of March 31, 2020, the Bank meets all capital adequacy requirements to which it is subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If only adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At March 31, 2020 and December 31, 2019, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. In July 2013, the Federal Deposit Insurance Corporation (FDIC) approved final rules that substantially amended the regulatory risk-based capital rules applicable to the Company and the Bank. The final rules implement the regulatory capital reforms of the Basel Committee on Banking Supervision reflected in “Basel III: A Global Framework for More Resilient Banks and Banking Systems” ("Basel III") and changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. NOTE 7 - REGULATORY CAPITAL REQUIREMENTS (CONTINUED) Under these rules, the leverage and risk-based capital ratios of bank holding companies (other than bank holding companies that fall under the Small Bank Holding Company Policy Statement and are not subject to consolidated capital requirements) may not be lower than the leverage and risk-based capital ratios for insured depository institutions. The final rules implementing Basel III became effective on January 1, 2015, and include new minimum risk-based capital and leverage ratios and a new common equity tier 1 ratio. In addition, these rules refine the definition of what constitutes capital for purposes of calculating those ratios, including the definitions of Tier 1 capital and Tier 2 capital. Basel III establishes a “capital conservation buffer” of 2.5% which began phasing in on January 1, 2016, at a rate of 0.625% per year. The buffer became fully phased in on January 1, 2019. An institution is subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if capital levels fall below minimum levels plus the buffer. Capital amounts and ratios for the Company and the Bank (required) are presented below as of March 31, 2020 and December 31, 2019. Actual Minimum Required To Be Well Amount Ratio Amount Ratio Amount Ratio March 31, 2020 Company Tier I leverage $ 183,873 8.91 % $ 82,547 4.00 % $ 103,184 5.00 % Common equity tier 1 172,103 9.54 % 126,281 7.00 % 117,261 6.50 % Tier I risk-based capital 183,873 10.19 % 153,378 8.50 % 144,356 8.00 % Total risk-based capital 258,040 14.30 % 189,452 10.50 % 180,430 10.00 % Bank Tier I leverage $ 217,399 10.58 % $ 82,192 4.00 % $ 102,741 5.00 % Common equity tier 1 217,399 12.13 % 125,457 7.00 % 116,496 6.50 % Tier I risk-based capital 217,399 12.13 % 152,341 8.50 % 143,379 8.00 % Total risk-based capital 232,945 13.00 % 188,148 10.50 % 179,188 10.00 % December 31, 2019 Company Tier I leverage $ 176,748 9.74 % $ 72,586 4.00 % $ 90,733 5.00 % Common equity tier 1 165,063 10.55 % 109,520 7.00 % 101,698 6.50 % Tier I risk-based capital 176,748 11.30 % 132,952 8.50 % 125,131 8.00 % Total risk-based capital 249,751 15.97 % 164,207 10.50 % 156,388 10.00 % Bank Tier I leverage $ 186,734 10.30 % $ 72,518 4.00 % $ 90,648 5.00 % Common equity tier 1 186,734 11.95 % 109,384 7.00 % 101,571 6.50 % Tier I risk-based capital 186,734 11.95 % 132,823 8.50 % 125,010 8.00 % Total risk-based capital 199,737 12.79 % 163,975 10.50 % 156,167 10.00 % |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
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"): Three Months Ended March 31, 2020 2019 Basic EPS Computation Net income attributable to common shareholders $ (215) $ 3,824 Weighted average common shares outstanding 11,892,723 11,405,438 Basic earnings per common share $ (0.02) $ 0.34 Diluted EPS Computation Net income attributable to common shareholders $ (215) $ 3,824 Weighted average common shares outstanding 11,892,723 11,405,438 Dilutive effect of stock options, restricted stock shares and units, and employee stock purchase plan 2,297 81,707 Adjusted weighted average common shares outstanding 11,895,020 11,487,145 Diluted earnings per common share $ (0.02) $ 0.33 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2020 | |
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 sold to participating banks or other investor groups and are underwritten to their standards. During the second quarter of 2019, RMV began acquiring loans from approved correspondent lenders and reselling them in the secondary market. These loans are not FNMA or FHLMC qualified loans, and are of higher risk, such as, jumbo loans or senior position home equity lines of credit. NOTE 9 - SEGMENT REPORTING (CONTINUED) The following presents summarized results of operations for the Company’s business segments for the periods indicated: Three Months Ended Retail Banking Residential Elimination Consolidated Net interest income $ 16,782 $ 333 $ — $ 17,115 Provision for loan losses 2,900 — — 2,900 Noninterest income 1,709 1,565 8 3,282 Noninterest expense (excluding merger expense) 12,461 2,951 — 15,412 Merger expense 4,186 — — 4,186 Income tax expense (benefit) (841) (69) — (910) Net income (loss) (215) (984) 8 (1,191) Noncontrolling interest in net loss of subsidiary — 984 (8) 976 Net income attributable to common shareholders $ (215) $ — $ — $ (215) Three Months Ended Retail Banking Residential Mortgage Banking Elimination Entries Consolidated Net interest income $ 13,373 $ 88 $ — $ 13,461 Provision for loan losses — — — — Noninterest income 1,378 575 (15) 1,938 Noninterest expense (excluding merger expense) 10,445 2,299 — 12,744 Merger expense 2 — — 2 Income tax expense (benefit) 480 (108) — 372 Net income (loss) 3,824 (1,528) (15) 2,281 Noncontrolling interest in net loss of subsidiary — 1,528 15 1,543 Net income attributable to common shareholders $ 3,824 $ — $ — $ 3,824 |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2020 | |
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 $160,000 as of March 31, 2020 were designated as cash flow hedges of certain short-term interest-bearing liabilities 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 10 - DERIVATIVES (CONTINUED) Summary information related to the interest rate swaps designated as cash flow hedges as of March 31, 2020, is as follows: Notional amounts $ 160,000 Weighted average pay rates 2.050 % Weighted average receive rates 1.679 % Weighted average maturity 3.81 years Unrealized losses $ 7,947 Cash Flow Hedges The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the three months ended March 31, 2020: Amount of Gain (Loss) Recognized in OCI Amount of Gain (Loss) Reclassified from OCI to Interest Income Amount of Gain (Loss) Recognized in Other Noninterest Income (Ineffective Portion) March 31, 2020 Interest rate contracts $ (4,335,000) $ — $ — The following table reflects the cash flow hedges included in the Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019, respectively: March 31, 2020 December 31, 2019 Notional Amount Fair Value Notional Amount Fair Value Included in other liabilities: Interest rate swaps related to: Subordinate debentures $ 10,000 $ 830 $ 10,000 $ 439 Short-term interest bearing liabilities 150,000 7,117 100,000 1,639 Total included in other liabilities $ 160,000 $ 7,947 $ 110,000 $ 2,078 NOTE 10 - DERIVATIVES (CONTINUED) Fair Value Hedges The following table reflects the fair value hedges included in the Consolidated Statements of Income for the three months ended March 31, 2020 and 2019, respectively: Interest rate contracts Location March 31, 2020 March 31, 2019 Change in fair value on interest rate swaps hedging investments Interest income $ (1,041) $ (501) The following table reflects the fair value hedges included in the Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019, respectively: March 31, 2020 December 31, 2019 Notional Amount Fair Value Notional Amount Fair Value Included in other assets: Interest rate swaps related to investments $ — $ — $ — $ — Total included in other assets $ — $ — $ — $ — Included in other liabilities: Interest rate swaps related to investments 19,605 1,671 19,605 630 Total included in other liabilities $ 19,605 $ 1,671 $ 19,605 $ 630 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESIncome tax expense (benefit) for the three months ended March 31, 2020 totaled $(910) compared to $372 for the three months ended March 31, 2019. The effective tax rate for the three months ended March 31, 2020 was 43.3% compared to 14.0% for the three months ended March 31, 2019. During the quarter ended March 31, 2020, merger expenses and the provision expense had the impact of reducing taxable income and increasing the proportion of tax-exempt income to total income. |
Business Combination
Business Combination | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | BUSINESS COMBINATION Effective January 1, 2020, the Company completed the acquisition of 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 Holdings Transaction”), with the Company as the surviving corporation. Immediately following the TCB Holdings Transaction, CBT merged with and into Reliant, with Reliant continuing as the surviving banking corporation. Pursuant to the TCB Holdings Agreement, at the effective time of the TCB Holdings Transaction (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 Holdings Transaction. The Company did not issue fractional shares of Company Common Stock in connection with the TCB Holdings Transaction, 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 the effective time of the TCB Holdings Transaction, 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 aggregate consideration to holders of unexercised options of approximately $430. All shares of Company’s common stock outstanding prior to the TCB Merger were unaffected by the TCB Merger. The following table details the financial impact of the business combination, 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 Tennessee Community Bank Holdings, Inc. common stock outstanding as of January 1, 2020 1,055,041 Exchange ratio for Reliant Bancorp, Inc. common stock 0.769 Reliant Bancorp, Inc. common stock shares issued 811,210 Reliant Bancorp, Inc. share price at January 1, 2020 $ 22.24 Estimated value of Reliant Bancorp, Inc. shares issued 18,041 Cash settlement for Tennessee Community Bank Holdings, Inc. common stock ($17.13 per share) 18,073 Cash settlement for Tennessee Community Bank Holdings, Inc.'s 26,450 outstanding stock options ($34.25 settlement price less weighted average exercise price of $18.00) 430 Cash settlement for Reliant Bancorp, Inc. fractional shares ($22.36 per pro rata fractional share) 3 Estimated fair value of Tennessee Community Bank Holdings, Inc. $ 36,547 Allocation of Purchase Price Total consideration above $ 36,547 Fair value of assets acquired and liabilities assumed Cash and cash equivalents 11,026 Investment securities available for sale 56,336 Loans, net of unearned income 171,445 Accrued interest receivable 948 Premises and equipment 6,440 Cash surrender value of life insurance contracts 5,629 Restricted equity securities 909 Core deposit intangible 3,617 Other assets 833 Deposits (210,538) Deferred tax liability (337) Borrowings (58) FHLB advances (13,102) Other liabilities (3,682) Total fair value of net assets acquired 29,466 Goodwill $ 7,081 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | LEASES On January 1, 2020, the Company adopted ASU No. 2016-02 “ Leases (Topic 842 )” and all subsequent ASUs that modified Topic 842. The Company elected the prospective application approach provided by ASU 2018-11 and did not adjust prior periods for ASC 842. The Company also elected certain practical expedients within the standard and consistent with such elections did not reassess whether any expired or existing contracts are or contain leases, did not reassess the lease classification for any expired or existing leases, and did not reassess any initial direct costs for existing leases. The implementation of the new standard resulted in recognition of a right-of-use asset of $12.0 million and a lease liability of $11.9 million at the date of adoption, which is related to the Company’s lease of premises used in operations. The Company used a discount rate of 4.5% in determining the right-of-use asset and lease liability. The Company elected not to restate comparative periods prior to adoption. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. The Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. During the three months ended March 31, 2020 and 2019, the Company recognized $707 and $687 of lease expense, respectively. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Information about certain issued accounting standards updates is presented below. Also refer to Note 1 - Summary of Significant Accounting Policies “Recent Authoritative Accounting Guidance” in our Annual Report on Form 10-K for the year ended December 31, 2019 for additional information related to previously issued accounting standards updates. 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 recently 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 noninterest income. The adoption of this standard did not have a significant impact on the Company. 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 became effective for us on January 1, 2019 and did not have a significant impact on our financial statements. ASU 2016-02, “ Leases (Topic 842 ) .” ASU 2016-02 will require 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. We estimate that the effect of implementing this pronouncement will result in right to use assets of $11,973 and a similar corresponding liability, using the remaining contractual lease periods. NOTE 14 - RECENT ACCOUNTING PRONOUNCEMENTS (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. ASU 2016-13 is expected to be effective on 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. 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. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Financial Instruments - Credit Losses (ASC 326), Derivatives and Hedging (ASC 815), and Financial Instruments (ASC 825) . The amendments in the ASU improve the Codification by eliminating inconsistencies and providing clarifications. The amended guidance in this ASU related to the credit losses will be effective for the Company for fiscal years and interim periods beginning after December 15, 2022. The Company is currently evaluating the impact of these ASUs on the Company’s consolidated financial statements. While we are currently unable to reasonably estimate the impact of adopting these ASUs, 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 Company on January 1, 2021, with earlier adoption permitted and is not currently expected to have a significant impact on our consolidated financial statements as it simplifies the test of impairment of goodwill. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) - " Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of the reference rate reform on the Company’s consolidated financial statements. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS ASC 855, Subsequent Events, establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. Reliant Bancorp, Inc. evaluated all events or transactions that occurred after March 31, 2020 through the date of the issued financial statements. On October 22, 2019, the Company, PG Merger Sub, Inc. ("Merger sub'), a Tennessee corporation and a wholly-owned subsidiary of the Company, and FABK, a Tennessee corporation and the parent company of FAB. a Tennessee-chartered commercial bank, entered into an Agreement and Plan of Merger (the “FABK Agreement”) providing for Reliant Bancorp to acquire FABK and FAB. Reliant Bancorp completed its acquisition of FABK and FAB effective April 1, 2020. In accordance with the terms of the FABK Agreement, on April 1, 2020, (i) Merger Sub merged with and into FABK (the “FABK Merger”), with FABK being the surviving corporation and becoming a wholly-owned subsidiary of Reliant Bancorp, and (ii) immediately following the FABK Merger, FABK merged with and into Reliant Bancorp (the “Second Step Merger”), with Reliant Bancorp being the surviving corporation. Additionally, immediately following the Second Step Merger, FAB merged with and into Reliant Bank, with Reliant Bank being the surviving bank. As consideration for the FABK Merger, each outstanding share of FABK common stock, par value $0.01 per share (the “FABK Common Stock”), other than certain excluded shares, was at the effective time of the FABK Merger converted into the right to receive (i) 1.17 shares of Company Common Stock and (ii) $3.00 in cash, without interest. In lieu of the issuance of fractional shares of Company Common Stock, Reliant Bancorp agreed to pay cash in lieu of fractional shares based on the volume-weighted average closing price per share of Company Common Stock on The Nasdaq Capital Market for the 10 consecutive trading days ending on and including March 30, 2020 (calculated as $11.74). Based on the March 31, 2020 closing price for Company Common Stock of $11.27 per share and 4,012,365 shares of FABK Common Stock outstanding on March 31, 2020, the consideration for the FABK Merger was approximately $65,314, in the aggregate, or $16.28 per share of FABK Common Stock. FABK is a Tennessee-based full-service community banking organization headquartered in Clarksville, Tennessee. FAB operated branch offices in Montgomery, Davidson and Williamson Tennessee and operated a loan production office in Knoxville, Tennessee primarily originating manufactured housing loans. Former FABK board members William Lawson Mabry and Michael E. Wallace joined Reliant Bancorp, Inc.'s and Reliant Bank's boards of directors upon completion of the 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. In December 2019, news began to surface regarding a pandemic in China, known as the novel coronavirus, or COVID-19. In January 2020, the United States restricted entry to anyone traveling from China. In February 2020, the pandemic spread broadly and swiftly throughout Europe and the Middle East, particularly in Italy and Iran. Cases began to surface in the United States in February 2020 and accelerated in early March 2020. The Federal Reserve reduced the overnight federal funds rate by 50 basis points on March 3, 2020 and by another 100 basis points on March 15, 2020 and announced the resumption of quantitative easing. During the week of March 9, 2020, individual states began implementing restrictions and promoting “social distancing”. These restrictions included closure of schools, restrictions on the number of public gatherings, encouragement of work at home arrangements and other courses of action. Congress began passing a number of measures in late March 2020 and are continuing to approve similar legislation, designed to infuse cash into the economy to offset the negative impacts of business closings and restrictions. The COVID-19 pandemic is a highly unusual, unprecedented and evolving public health and economic crisis and may have a negative material impact on the Company’s financial condition and results of operations. Additionally, the negative consequences of the unprecedented economic shutdown nationally and in Tennessee and bordering states is likely to result in a higher level of delinquencies and loan losses and require additional provisions for loan losses, which will have a negative impact on our results of operations. NOTE 15 - SUBSEQUENT EVENTS (CONTINUED) The CARES Act included an allocation of $349 billion for loans to be issued by financial institutions through the SBA. This program is known as the PPP. Loans issued under the PPP program are forgivable, in whole or in part, if the proceeds are used for payroll and other permitted purposes in accordance with the requirements of the PPP. These loans carry a fixed rate of 1.00% and a term of two years, if not forgiven, in whole or in part. Payments are deferred for the first six months of the loan. The loans are 100% guaranteed by the SBA. The SBA pays the originating bank a processing fee ranging from 1% to 5%, based on the size of the loan. The SBA began accepting submissions for these PPP loans on Friday, April 3, 2020. Through April 16, 2020, the date the SBA reached the limit of funds available to disburse under this program, we had received SBA authorizations for PPP loans totaling $35,600 and related fees of $1,200. Participation in the PPP will likely have an impact on our asset mix and net interest margin for the remainder of 2020. Subsequent to March 31, 2020 and in connection with the second tranche of PPP funds, the Company has approvals for $53,704 in such loans and related fees of $2,202. At March 31, 2020, we had $181,300 in federal funds lines available and $359,400 of available borrowing capacity from our correspondent banks. In addition, the Federal Reserve has implemented a liquidity facility available to financial institutions participating in the PPP. As such, the Company believes it has sufficient liquidity sources to fund all pending PPP loans and to continue to provide this important service to local businesses as additional funds are appropriated for the PPP. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Reliant Bancorp, 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, Chattanooga, Hendersonville, and Memphis, Tennessee, as well as two in Little Rock and one in Crossett, Arkansas. On April 1, 2020, FABK, a community banking organization headquartered in Clarksville, Tennessee, was merged with and into the Company (See Note 15). |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with instructions to Quarterly Report on Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, and cash flows in conformity with U.S. GAAP. All adjustments consisting of normally recurring accruals that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods covered by the report have been included. The accompanying unaudited consolidated financial statements should be read in conjunction with Reliant Bancorp, Inc.’s consolidated financial statements and related notes appearing in Reliant Bancorp, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2019. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP 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. The consolidated financial statements as of March 31, 2020, and for the three months ended March 31, 2020 and 2019, included herein have not been audited. The accounting and reporting policies of the Company conform to U.S. GAAP and Article 8 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although the Company believes that the disclosures made are adequate to make the information not misleading. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The accompanying consolidated financial statements reflect all adjustments, which are, in the opinion of management, necessary to present a fair statement of the results for the interim periods presented. Such adjustments are of a normal recurring nature. The Company evaluates subsequent events through the date of filing. Certain prior period amounts have been reclassified to conform to the current period presentation. The results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | The amortized cost and fair value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income at March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 Amortized Gross Gross Estimated U. S. Treasury and other U. S. government agencies $ 56 $ 1 $ — $ 57 State and municipal 185,811 11,079 (436) 196,454 Corporate bonds 7,880 17 (62) 7,835 Mortgage backed securities 37,907 211 (2,217) 35,901 Asset backed securities 17,030 — (349) 16,681 Total $ 248,684 $ 11,308 $ (3,064) $ 256,928 December 31, 2019 Amortized Gross Gross Estimated 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 |
Fair Value of Available for Sale Maturities by Contractual Maturity | The fair values of available for sale debt securities at March 31, 2020 by contractual maturity are provided below. Actual maturities may differ from contractual maturities for mortgage and asset backed securities since the underlying asset may be called or prepaid with or without penalty. Securities not due at a single maturity date are shown separately. Amortized Estimated Due within one year $ 1,000 $ 998 Due in one to five years 2,311 2,312 Due in five to ten years 10,330 10,725 Due after ten years 180,106 190,311 Mortgage backed securities 37,907 35,901 Asset backed securities 17,030 16,681 Total $ 248,684 $ 256,928 |
Securities in Unrealized Loss Position | 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 have been in a continuous unrealized loss position as of March 31, 2020 and December 31, 2019, respectively: Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized March 31, 2020 State and municipal $ 3,748 $ 436 $ — $ — $ 3,748 $ 436 Corporate bonds 4,439 61 499 1 4,938 62 Mortgage backed securities 16,162 1,059 11,831 1,158 27,993 2,217 Asset backed securities — — 16,124 349 16,124 349 Total temporarily impaired $ 24,349 $ 1,556 $ 28,454 $ 1,508 $ 52,803 $ 3,064 December 31, 2019 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 Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Summary of Loans and Allowance for Loan Losses | Loans at March 31, 2020 and December 31, 2019 were comprised as follows: March 31, 2020 December 31, 2019 Commercial, Industrial and Agricultural $ 283,035 $ 245,515 Real Estate 1-4 Family Residential 261,718 227,529 1-4 Family HELOC 99,296 96,228 Multi-family and Commercial 635,650 536,845 Construction, Land Development and Farmland 308,598 273,872 Consumer 24,141 16,855 Other 7,456 13,180 Total 1,619,894 1,410,024 Less Deferred loan fees 191 72 Allowance for loan losses 15,121 12,578 Loans, net $ 1,604,582 $ 1,397,374 |
Activity in the Allowance for Loan Losses By Portfolio Segment | Activity in the allowance for loan losses by portfolio segment was as follows for the three months ended March 31, 2020 and March 31, 2019, respectively: Commercial Industrial and Agricultural Multi-family Construction 1-4 Family 1-4 Family HELOC Consumer Other Total Beginning balance at December 31, 2019 $ 2,529 $ 5,285 $ 2,649 $ 1,280 $ 624 $ 177 $ 34 $ 12,578 Charge-offs (294) — (114) — — (31) — (439) Recoveries 61 3 — 11 1 6 — 82 Provision 1,555 1,472 (699) 197 248 146 (19) 2,900 Ending balance at $ 3,851 $ 6,760 $ 1,836 $ 1,488 $ 873 $ 298 $ 15 $ 15,121 Beginning balance at December 31, 2018 $ 1,751 $ 4,429 $ 2,500 $ 1,333 $ 656 $ 184 $ 39 $ 10,892 Charge-offs (6) — — (17) — (11) — (34) Recoveries 240 34 — 212 — 10 — 496 Provision (111) 130 150 (169) 14 (12) (2) — Ending balance at $ 1,874 $ 4,593 $ 2,650 $ 1,359 $ 670 $ 171 $ 37 $ 11,354 |
Schedule of Allowance for Credit Losses and Recorded Investments in Loans By Portfolio and By Impairment Method | The allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2020 were as follows: Commercial Industrial and Agricultural Multi-family Construction 1-4 Family 1-4 Family HELOC Consumer Other Total Allowance for loan losses Individually evaluated for impairment $ 679 $ — $ — $ — $ — $ 4 $ — $ 683 Acquired with credit impairment — — — — — — — — Collectively evaluated for impairment 3,172 6,760 1,836 1,488 873 294 15 14,438 Total $ 3,851 $ 6,760 $ 1,836 $ 1,488 $ 873 $ 298 $ 15 $ 15,121 Loans Individually evaluated for impairment $ 936 $ 2,375 $ 1,095 $ 1,206 $ 418 $ 4 $ — $ 6,034 Acquired with credit impairment — 233 1,032 1,141 14 15 — 2,435 Collectively evaluated for impairment 282,099 633,042 306,471 259,371 98,864 24,122 7,456 1,611,425 Total $ 283,035 $ 635,650 $ 308,598 $ 261,718 $ 99,296 $ 24,141 $ 7,456 $ 1,619,894 The allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019 were as follows: Commercial Industrial and Agricultural Multi-family Construction 1-4 Family 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 |
Non-Accrual Loans By Class of Loan | Non-accrual loans by class of loan were as follows at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Commercial, Industrial and Agricultural $ 355 $ 572 Multi-family and Commercial Real Estate 1,276 1,276 Construction, Land Development and Farmland 412 555 1-4 Family Residential Real Estate 1,535 1,344 1-4 Family HELOC 341 296 Consumer 30 28 Total $ 3,949 $ 4,071 |
Individually Impaired Loans by Class of Loans | Individually impaired loans by class of loans were as follows at March 31, 2020: Unpaid Recorded Recorded Total Related Commercial, Industrial and Agricultural $ 1,707 $ 79 $ 857 $ 936 $ 679 Multi-family and Commercial Real Estate 4,216 2,608 — 2,608 — Construction, Land Development and Farmland 3,780 2,127 — 2,127 — 1-4 Family Residential Real Estate 3,922 2,347 — 2,347 — 1-4 Family HELOC 512 433 — 433 — Consumer 110 14 4 18 4 Total $ 14,247 $ 7,608 $ 861 $ 8,469 $ 683 Individually impaired loans by class of loans were as follows at December 31, 2019: Unpaid Recorded Recorded Total 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 |
Average Balances of Impaired Loans | The average balances of impaired loans for the three months ended March 31, 2020 and 2019 were as follows: 2020 2019 Commercial, Industrial and Agricultural $ 1,045 $ 736 Multi-family and Commercial Real Estate 2,610 2,202 Construction, Land Development and Farmland 2,079 3,173 1-4 Family Residential Real Estate 1,831 1,724 1-4 Family HELOC 404 — Consumer 9 17 Total $ 7,978 $ 7,852 |
Credit Quality Indicators By Class of Loan | Credit quality indicators by class of loan were as follows at March 31, 2020: Pass Special Substandard Total Commercial, Industrial and Agricultural $ 280,963 $ 456 $ 1,616 $ 283,035 1-4 Family Residential Real Estate 258,828 277 2,613 261,718 1-4 Family HELOC 98,863 — 433 99,296 Multi-family and Commercial Real Estate 629,381 1,992 4,277 635,650 Construction, Land Development and Farmland 307,459 — 1,139 308,598 Consumer 23,885 24 232 24,141 Other 7,456 — — 7,456 Total $ 1,606,835 $ 2,749 $ 10,310 $ 1,619,894 Credit quality indicators by class of loan were as follows at December 31, 2019: Pass Special 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 |
Past Due Status By Class of Loan | Past due status by class of loan was as follows at March 31, 2020: 30-59 Days 60-89 Days 90+ Days Total Current Total Loans Commercial, Industrial and Agricultural $ 603 $ 25 $ 432 $ 1,060 $ 281,975 $ 283,035 1-4 Family Residential Real Estate 424 413 469 1,306 260,412 261,718 1-4 Family HELOC 187 — 296 483 98,813 99,296 Multi-family and Commercial Real Estate 220 — 1,049 1,269 634,381 635,650 Construction, Land Development and Farmland 342 — 225 567 308,031 308,598 Consumer 23 11 16 50 24,091 24,141 Other — — — — 7,456 7,456 Total $ 1,799 $ 449 $ 2,487 $ 4,735 $ 1,615,159 $ 1,619,894 Past due status by class of loan was as follows at December 31, 2019: 30-59 Days 60-89 Days 90+ Days Total 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 |
Outstanding Balance And Carrying Amount of the Purchased Credit Impaired Loans | The outstanding balance and carrying amount of the purchased credit impaired loans were as follows at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Commercial, Industrial and Agricultural $ 232 $ — Multi-family and Commercial Real Estate 242 217 Construction, Land Development and Farmland 1,283 1,021 1-4 Family Residential Real Estate 1,453 231 1-4 Family HELOC 19 — Consumer 21 — Total outstanding balance 3,250 1,469 Less remaining purchase discount 815 246 Allowance for loan losses — — Carrying amount, net of allowance for loan losses $ 2,435 $ 1,223 |
Activity Related to Accretable Portion of the Purchase Discount on Loans Acquired With Deteriorated Credit Quality | Activity related to the accretable portion of the purchase discount on loans acquired with deteriorated credit quality is as follows for the three months ended March 31, 2020 and 2019: 2020 2019 Balance at January 1, $ 98 $ 110 New loans purchased 131 — Year-to-date settlements (20) — Balance at March 31, 209 110 |
Fair Values of Assets and Lia_2
Fair Values of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
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 March 31, 2020 and December 31, 2019: Fair Value Quoted Significant Significant March 31, 2020 Assets U. S. Treasury and other U. S. government agencies $ 57 $ — $ 57 $ — State and municipal 196,454 — 196,454 — Corporate bonds 7,835 — 7,835 — Mortgage backed securities 35,901 — 35,901 — Asset backed securities 16,681 — 16,681 — Liabilities Interest rate swaps $ 9,618 $ — $ 9,618 $ — 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 swaps 688 — 688 — Liabilities Interest rate swaps $ 3,396 $ — $ 3,396 $ — 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 March 31, 2020 and December 31, 2019: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs March 31, 2020 Assets Impaired loans $ 178 $ — $ — $ 178 Other real estate owned — — — — December 31, 2019 Assets Impaired loans $ 553 $ — $ — $ 553 Other real estate owned 750 — — 750 |
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 March 31, 2020 and December 31, 2019: Valuation Significant Range 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. |
Carrying Amounts And Estimated Fair Values of Financial instruments Not Reported at Fair Value | Carrying amounts and estimated fair values of financial instruments not reported at fair value at March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 Carrying Estimated Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Financial assets Cash and due from banks $ 46,318 $ 46,318 $ 46,318 $ — $ — Federal funds sold 1,714 1,714 — 1,714 — Loans, net 1,604,582 1,594,903 — — 1,594,903 Mortgage loans held for sale 70,352 70,352 — — 70,352 Accrued interest receivable 7,289 7,289 — 7,289 — Restricted equity securities 14,405 14,405 — 14,405 — Financial liabilities Deposits $ 1,722,448 $ 1,728,071 $ — $ — $ 1,728,071 Accrued interest payable 3,995 3,995 — 3,995 — Subordinate debentures 70,391 68,645 — — 68,645 Federal Home Loan Bank advances 127,628 127,965 — — 127,965 December 31, 2019 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 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation, Stock Options, Activity | A summary of stock option activity for the three months ended March 31, 2020 is as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2020 149,293 $ 18.81 6.68 years $ 553 Granted — $ — Exercised (868) $ 8.49 1.73 years 11 Forfeited or expired — $ — Outstanding at March 31, 2020 148,425 $ 18.87 6.62 years $ 22 Exercisable at March 31, 2020 73,825 $ 15.39 5.22 years $ 22 |
Schedule of Nonvested Share Activity | Shares Weighted Average Non-vested options at January 1, 2020 74,600 $6.08 Granted — $— Vested — $— Forfeited — $— Non-vested options at March 31, 2020 74,600 $6.08 |
Activity Related to Non-Vested Restricted Stock | The following table shows the activity related to non-vested restricted stock and restricted stock unit awards for the three months ended March 31, 2020: Restricted Stock Units Restricted Stock Shares Weighted Average Grant-Date Shares Weighted Average Grant-Date Non-vested shares at January 1, 2020 47,750 $ 23.30 90,960 $ 25.31 Granted — — — — Vested — — (11,163) 21.89 Forfeited — — (3,837) 21.89 Non-vested shares at March 31, 2020 47,750 $ 23.30 75,960 $ 25.99 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
Actual and Required Capital Amounts and Ratios | Capital amounts and ratios for the Company and the Bank (required) are presented below as of March 31, 2020 and December 31, 2019. Actual Minimum Required To Be Well Amount Ratio Amount Ratio Amount Ratio March 31, 2020 Company Tier I leverage $ 183,873 8.91 % $ 82,547 4.00 % $ 103,184 5.00 % Common equity tier 1 172,103 9.54 % 126,281 7.00 % 117,261 6.50 % Tier I risk-based capital 183,873 10.19 % 153,378 8.50 % 144,356 8.00 % Total risk-based capital 258,040 14.30 % 189,452 10.50 % 180,430 10.00 % Bank Tier I leverage $ 217,399 10.58 % $ 82,192 4.00 % $ 102,741 5.00 % Common equity tier 1 217,399 12.13 % 125,457 7.00 % 116,496 6.50 % Tier I risk-based capital 217,399 12.13 % 152,341 8.50 % 143,379 8.00 % Total risk-based capital 232,945 13.00 % 188,148 10.50 % 179,188 10.00 % December 31, 2019 Company Tier I leverage $ 176,748 9.74 % $ 72,586 4.00 % $ 90,733 5.00 % Common equity tier 1 165,063 10.55 % 109,520 7.00 % 101,698 6.50 % Tier I risk-based capital 176,748 11.30 % 132,952 8.50 % 125,131 8.00 % Total risk-based capital 249,751 15.97 % 164,207 10.50 % 156,388 10.00 % Bank Tier I leverage $ 186,734 10.30 % $ 72,518 4.00 % $ 90,648 5.00 % Common equity tier 1 186,734 11.95 % 109,384 7.00 % 101,571 6.50 % Tier I risk-based capital 186,734 11.95 % 132,823 8.50 % 125,010 8.00 % Total risk-based capital 199,737 12.79 % 163,975 10.50 % 156,167 10.00 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary 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"): Three Months Ended March 31, 2020 2019 Basic EPS Computation Net income attributable to common shareholders $ (215) $ 3,824 Weighted average common shares outstanding 11,892,723 11,405,438 Basic earnings per common share $ (0.02) $ 0.34 Diluted EPS Computation Net income attributable to common shareholders $ (215) $ 3,824 Weighted average common shares outstanding 11,892,723 11,405,438 Dilutive effect of stock options, restricted stock shares and units, and employee stock purchase plan 2,297 81,707 Adjusted weighted average common shares outstanding 11,895,020 11,487,145 Diluted earnings per common share $ (0.02) $ 0.33 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Summarized Results of Operations by Business Segment | The following presents summarized results of operations for the Company’s business segments for the periods indicated: Three Months Ended Retail Banking Residential Elimination Consolidated Net interest income $ 16,782 $ 333 $ — $ 17,115 Provision for loan losses 2,900 — — 2,900 Noninterest income 1,709 1,565 8 3,282 Noninterest expense (excluding merger expense) 12,461 2,951 — 15,412 Merger expense 4,186 — — 4,186 Income tax expense (benefit) (841) (69) — (910) Net income (loss) (215) (984) 8 (1,191) Noncontrolling interest in net loss of subsidiary — 984 (8) 976 Net income attributable to common shareholders $ (215) $ — $ — $ (215) Three Months Ended Retail Banking Residential Mortgage Banking Elimination Entries Consolidated Net interest income $ 13,373 $ 88 $ — $ 13,461 Provision for loan losses — — — — Noninterest income 1,378 575 (15) 1,938 Noninterest expense (excluding merger expense) 10,445 2,299 — 12,744 Merger expense 2 — — 2 Income tax expense (benefit) 480 (108) — 372 Net income (loss) 3,824 (1,528) (15) 2,281 Noncontrolling interest in net loss of subsidiary — 1,528 15 1,543 Net income attributable to common shareholders $ 3,824 $ — $ — $ 3,824 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest Rate Swaps Designated as Cash Flow Hedges | Summary information related to the interest rate swaps designated as cash flow hedges as of March 31, 2020, is as follows: Notional amounts $ 160,000 Weighted average pay rates 2.050 % Weighted average receive rates 1.679 % Weighted average maturity 3.81 years Unrealized losses $ 7,947 |
Net Gain (Losses) Related to Derivative Instruments | Cash Flow Hedges The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the three months ended March 31, 2020: Amount of Gain (Loss) Recognized in OCI Amount of Gain (Loss) Reclassified from OCI to Interest Income Amount of Gain (Loss) Recognized in Other Noninterest Income (Ineffective Portion) March 31, 2020 Interest rate contracts $ (4,335,000) $ — $ — Fair Value Hedges The following table reflects the fair value hedges included in the Consolidated Statements of Income for the three months ended March 31, 2020 and 2019, respectively: Interest rate contracts Location March 31, 2020 March 31, 2019 Change in fair value on interest rate swaps hedging investments Interest income $ (1,041) $ (501) |
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 March 31, 2020 and December 31, 2019, respectively: March 31, 2020 December 31, 2019 Notional Amount Fair Value Notional Amount Fair Value Included in other liabilities: Interest rate swaps related to: Subordinate debentures $ 10,000 $ 830 $ 10,000 $ 439 Short-term interest bearing liabilities 150,000 7,117 100,000 1,639 Total included in other liabilities $ 160,000 $ 7,947 $ 110,000 $ 2,078 |
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 March 31, 2020 and December 31, 2019, respectively: March 31, 2020 December 31, 2019 Notional Amount Fair Value Notional Amount Fair Value Included in other assets: Interest rate swaps related to investments $ — $ — $ — $ — Total included in other assets $ — $ — $ — $ — Included in other liabilities: Interest rate swaps related to investments 19,605 1,671 19,605 630 Total included in other liabilities $ 19,605 $ 1,671 $ 19,605 $ 630 |
Business Combination (Tables)
Business Combination (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Calculation and Allocation of Purchase Price | The following table details the financial impact of the business combination, 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 Tennessee Community Bank Holdings, Inc. common stock outstanding as of January 1, 2020 1,055,041 Exchange ratio for Reliant Bancorp, Inc. common stock 0.769 Reliant Bancorp, Inc. common stock shares issued 811,210 Reliant Bancorp, Inc. share price at January 1, 2020 $ 22.24 Estimated value of Reliant Bancorp, Inc. shares issued 18,041 Cash settlement for Tennessee Community Bank Holdings, Inc. common stock ($17.13 per share) 18,073 Cash settlement for Tennessee Community Bank Holdings, Inc.'s 26,450 outstanding stock options ($34.25 settlement price less weighted average exercise price of $18.00) 430 Cash settlement for Reliant Bancorp, Inc. fractional shares ($22.36 per pro rata fractional share) 3 Estimated fair value of Tennessee Community Bank Holdings, Inc. $ 36,547 Allocation of Purchase Price Total consideration above $ 36,547 Fair value of assets acquired and liabilities assumed Cash and cash equivalents 11,026 Investment securities available for sale 56,336 Loans, net of unearned income 171,445 Accrued interest receivable 948 Premises and equipment 6,440 Cash surrender value of life insurance contracts 5,629 Restricted equity securities 909 Core deposit intangible 3,617 Other assets 833 Deposits (210,538) Deferred tax liability (337) Borrowings (58) FHLB advances (13,102) Other liabilities (3,682) Total fair value of net assets acquired 29,466 Goodwill $ 7,081 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | Mar. 31, 2020 |
Reliant Mortgage Ventures, LLC | |
Noncontrolling Interest [Line Items] | |
Governance rights control by the Bank (in percent) | 51.00% |
Securities - Available-for-sale
Securities - Available-for-sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 248,684 | $ 250,722 |
Gross Unrealized Gains | 11,308 | 10,806 |
Gross Unrealized Losses | (3,064) | (1,235) |
Estimated Fair Value | 256,928 | 260,293 |
U. S. Treasury and other U. S. government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 56 | 59 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 57 | 59 |
State and municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 185,811 | 186,283 |
Gross Unrealized Gains | 11,079 | 10,413 |
Gross Unrealized Losses | (436) | (36) |
Estimated Fair Value | 196,454 | 196,660 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,880 | 7,880 |
Gross Unrealized Gains | 17 | 97 |
Gross Unrealized Losses | (62) | (132) |
Estimated Fair Value | 7,835 | 7,845 |
Mortgage backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 37,907 | 38,126 |
Gross Unrealized Gains | 211 | 296 |
Gross Unrealized Losses | (2,217) | (661) |
Estimated Fair Value | 35,901 | 37,761 |
Asset backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 17,030 | 18,374 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (349) | (406) |
Estimated Fair Value | $ 16,681 | $ 17,968 |
Securities - Narrative (Details
Securities - Narrative (Details) $ in Thousands | Mar. 31, 2020USD ($)numberOfSecurities | Dec. 31, 2019USD ($)numberOfSecurities |
Investments, Debt and Equity Securities [Abstract] | ||
Securities pledged, carrying amount | $ | $ 45,380 | $ 46,918 |
Number of securities in unrealized loss position | numberOfSecurities | 41 | 47 |
Securities - Available-for-sa_2
Securities - Available-for-sale Securities Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Due within one year | $ 1,000 | |
Due in one to five years | 2,311 | |
Due in five to ten years | 10,330 | |
Due after ten years | 180,106 | |
Amortized Cost | 248,684 | $ 250,722 |
Estimated Fair Value | ||
Due within one year | 998 | |
Due in one to five years | 2,312 | |
Due in five to ten years | 10,725 | |
Due after ten years | 190,311 | |
Estimated Fair Value | 256,928 | 260,293 |
Mortgage backed securities | ||
Amortized Cost | ||
Securities | 37,907 | |
Amortized Cost | 37,907 | 38,126 |
Estimated Fair Value | ||
Securities | 35,901 | |
Estimated Fair Value | 35,901 | 37,761 |
Asset backed securities | ||
Amortized Cost | ||
Securities | 17,030 | |
Amortized Cost | 17,030 | 18,374 |
Estimated Fair Value | ||
Securities | 16,681 | |
Estimated Fair Value | $ 16,681 | $ 17,968 |
Securities - Schedule of Tempor
Securities - Schedule of Temporary Impairment Losses, Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Estimated Fair Value | ||
Less than 12 months | $ 24,349 | $ 18,064 |
12 months or more | 28,454 | 29,262 |
Total | 52,803 | 47,326 |
Unrealized Loss | ||
Less than 12 months | 1,556 | 322 |
12 months or more | 1,508 | 913 |
Total | 3,064 | 1,235 |
State and municipal | ||
Estimated Fair Value | ||
Less than 12 months | 3,748 | 1,960 |
12 months or more | 0 | 0 |
Total | 3,748 | 1,960 |
Unrealized Loss | ||
Less than 12 months | 436 | 36 |
12 months or more | 0 | 0 |
Total | 436 | 36 |
Corporate bonds | ||
Estimated Fair Value | ||
Less than 12 months | 4,439 | 0 |
12 months or more | 499 | 2,499 |
Total | 4,938 | 2,499 |
Unrealized Loss | ||
Less than 12 months | 61 | 0 |
12 months or more | 1 | 132 |
Total | 62 | 132 |
Mortgage backed securities | ||
Estimated Fair Value | ||
Less than 12 months | 16,162 | 16,104 |
12 months or more | 11,831 | 9,081 |
Total | 27,993 | 25,185 |
Unrealized Loss | ||
Less than 12 months | 1,059 | 286 |
12 months or more | 1,158 | 375 |
Total | 2,217 | 661 |
Asset backed securities | ||
Estimated Fair Value | ||
Less than 12 months | 0 | 0 |
12 months or more | 16,124 | 17,682 |
Total | 16,124 | 17,682 |
Unrealized Loss | ||
Less than 12 months | 0 | 0 |
12 months or more | 349 | 406 |
Total | $ 349 | $ 406 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Schedule of Loans and Financial Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 1,619,894 | $ 1,410,024 | ||
Less | ||||
Deferred loan fees | 191 | 72 | ||
Allowance for loan losses | 15,121 | 12,578 | $ 11,354 | $ 10,892 |
Loans, net | 1,604,582 | 1,397,374 | ||
Commercial, Industrial and Agricultural | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 283,035 | 245,515 | ||
Less | ||||
Allowance for loan losses | 3,851 | 2,529 | 1,874 | 1,751 |
Real Estate | 1-4 Family Residential | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 261,718 | 227,529 | ||
Less | ||||
Allowance for loan losses | 1,488 | 1,280 | 1,359 | 1,333 |
Real Estate | 1-4 Family HELOC | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 99,296 | 96,228 | ||
Less | ||||
Allowance for loan losses | 873 | 624 | 670 | 656 |
Real Estate | Multi-family and Commercial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 635,650 | 536,845 | ||
Less | ||||
Allowance for loan losses | 6,760 | 5,285 | 4,593 | 4,429 |
Real Estate | Construction, Land Development and Farmland | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 308,598 | 273,872 | ||
Less | ||||
Allowance for loan losses | 1,836 | 2,649 | 2,650 | 2,500 |
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 24,141 | 16,855 | ||
Less | ||||
Allowance for loan losses | 298 | 177 | 171 | 184 |
Other | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | 7,456 | 13,180 | ||
Less | ||||
Allowance for loan losses | $ 15 | $ 34 | $ 37 | $ 39 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Schedule of Allowances for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 12,578 | $ 10,892 |
Charge-offs | (439) | (34) |
Recoveries | 82 | 496 |
Provision | 2,900 | 0 |
Ending balance | 15,121 | 11,354 |
Commercial, Industrial and Agricultural | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 2,529 | 1,751 |
Charge-offs | (294) | (6) |
Recoveries | 61 | 240 |
Provision | 1,555 | (111) |
Ending balance | 3,851 | 1,874 |
Real Estate | Multi-family and Commercial | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 5,285 | 4,429 |
Charge-offs | 0 | 0 |
Recoveries | 3 | 34 |
Provision | 1,472 | 130 |
Ending balance | 6,760 | 4,593 |
Real Estate | Construction, Land Development and Farmland | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 2,649 | 2,500 |
Charge-offs | (114) | 0 |
Recoveries | 0 | 0 |
Provision | (699) | 150 |
Ending balance | 1,836 | 2,650 |
Real Estate | 1-4 Family Residential | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 1,280 | 1,333 |
Charge-offs | 0 | (17) |
Recoveries | 11 | 212 |
Provision | 197 | (169) |
Ending balance | 1,488 | 1,359 |
Real Estate | 1-4 Family HELOC | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 624 | 656 |
Charge-offs | 0 | 0 |
Recoveries | 1 | 0 |
Provision | 248 | 14 |
Ending balance | 873 | 670 |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 177 | 184 |
Charge-offs | (31) | (11) |
Recoveries | 6 | 10 |
Provision | 146 | (12) |
Ending balance | 298 | 171 |
Other | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 34 | 39 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | (19) | (2) |
Ending balance | $ 15 | $ 37 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Allowance for Loan Losses and Recorded Investment by Portfolio Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for loan losses | ||||
Individually evaluated for impairment | $ 683 | $ 772 | ||
Acquired with credit impairment | 0 | 0 | ||
Collectively evaluated for impairment | 14,438 | 11,806 | ||
Total | 15,121 | 12,578 | $ 11,354 | $ 10,892 |
Loans | ||||
Individually evaluated for impairment | 6,034 | 6,262 | ||
Acquired with credit impairment | 2,435 | 1,223 | ||
Collectively evaluated for impairment | 1,611,425 | 1,402,539 | ||
Total | 1,619,894 | 1,410,024 | ||
Commercial, Industrial and Agricultural | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 679 | 755 | ||
Acquired with credit impairment | 0 | 0 | ||
Collectively evaluated for impairment | 3,172 | 1,774 | ||
Total | 3,851 | 2,529 | 1,874 | 1,751 |
Loans | ||||
Individually evaluated for impairment | 936 | 1,154 | ||
Acquired with credit impairment | 0 | 0 | ||
Collectively evaluated for impairment | 282,099 | 244,361 | ||
Total | 283,035 | 245,515 | ||
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 | 6,760 | 5,285 | ||
Total | 6,760 | 5,285 | 4,593 | 4,429 |
Loans | ||||
Individually evaluated for impairment | 2,375 | 2,396 | ||
Acquired with credit impairment | 233 | 215 | ||
Collectively evaluated for impairment | 633,042 | 534,234 | ||
Total | 635,650 | 536,845 | ||
Real Estate | Construction, Land Development and Farmland | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 0 | 17 | ||
Acquired with credit impairment | 0 | 0 | ||
Collectively evaluated for impairment | 1,836 | 2,632 | ||
Total | 1,836 | 2,649 | 2,650 | 2,500 |
Loans | ||||
Individually evaluated for impairment | 1,095 | 1,218 | ||
Acquired with credit impairment | 1,032 | 813 | ||
Collectively evaluated for impairment | 306,471 | 271,841 | ||
Total | 308,598 | 273,872 | ||
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 | 1,488 | 1,280 | ||
Total | 1,488 | 1,280 | 1,359 | 1,333 |
Loans | ||||
Individually evaluated for impairment | 1,206 | 1,120 | ||
Acquired with credit impairment | 1,141 | 195 | ||
Collectively evaluated for impairment | 259,371 | 226,214 | ||
Total | 261,718 | 227,529 | ||
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 | 873 | 624 | ||
Total | 873 | 624 | 670 | 656 |
Loans | ||||
Individually evaluated for impairment | 418 | 374 | ||
Acquired with credit impairment | 14 | 0 | ||
Collectively evaluated for impairment | 98,864 | 95,854 | ||
Total | 99,296 | 96,228 | ||
Consumer | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 4 | 0 | ||
Acquired with credit impairment | 0 | 0 | ||
Collectively evaluated for impairment | 294 | 177 | ||
Total | 298 | 177 | 171 | 184 |
Loans | ||||
Individually evaluated for impairment | 4 | 0 | ||
Acquired with credit impairment | 15 | 0 | ||
Collectively evaluated for impairment | 24,122 | 16,855 | ||
Total | 24,141 | 16,855 | ||
Other | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 0 | 0 | ||
Acquired with credit impairment | 0 | 0 | ||
Collectively evaluated for impairment | 15 | 34 | ||
Total | 15 | 34 | $ 37 | $ 39 |
Loans | ||||
Individually evaluated for impairment | 0 | 0 | ||
Acquired with credit impairment | 0 | 0 | ||
Collectively evaluated for impairment | 7,456 | 13,180 | ||
Total | $ 7,456 | $ 13,180 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Recorded investment, 90 days past due and still accruing | $ 78 | |
Non-accrual loans | 3,949 | $ 4,071 |
Performing Financial Instruments | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | 931 | 1,332 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | 30 | 28 |
Multi-family and Commercial | Real Estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | 1,276 | 1,276 |
1-4 Family Residential | Real Estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | 1,535 | $ 1,344 |
Credit Card Balances | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Recorded investment, 90 days past due and still accruing | $ 16 | |
Minimum | Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and leases receivable repayment period | 1 year | |
Minimum | Multi-family and Commercial | Real Estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of loans in repayment | 50.00% | |
Minimum | 1-4 Family Residential | Real Estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loan facility, amortization period | 15 years | |
Loans commitment, maturity period | 5 years | |
Maximum | Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans and leases receivable repayment period | 5 years | |
Maximum | 1-4 Family Residential | Real Estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loan facility, amortization period | 30 years | |
Loans commitment, maturity period | 15 years |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Summary of Non-accrual Loans by Class of Loan (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | $ 3,949 | $ 4,071 |
Commercial, Industrial and Agricultural | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | 355 | 572 |
Real Estate | Multi-family and Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | 1,276 | 1,276 |
Real Estate | Construction, Land Development and Farmland | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | 412 | 555 |
Real Estate | 1-4 Family Residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | 1,535 | 1,344 |
Real Estate | 1-4 Family HELOC | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | 341 | 296 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | $ 30 | $ 28 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Summary of Individually Impaired Loans by Class of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid Principal Balance | $ 14,247 | $ 7,921 |
Recorded Investment with no Allowance for Loan Losses Recorded | 7,608 | 6,160 |
Recorded Investment with Allowance for Loan Losses Recorded | 861 | 1,325 |
Total Recorded Investment | 8,469 | 7,485 |
Related Allowance for Loan Losses | 683 | 772 |
Commercial, Industrial and Agricultural | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid Principal Balance | 1,707 | 1,154 |
Recorded Investment with no Allowance for Loan Losses Recorded | 79 | 0 |
Recorded Investment with Allowance for Loan Losses Recorded | 857 | 1,154 |
Total Recorded Investment | 936 | 1,154 |
Related Allowance for Loan Losses | 679 | 755 |
Real Estate | Multi-family and Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid Principal Balance | 4,216 | 2,624 |
Recorded Investment with no Allowance for Loan Losses Recorded | 2,608 | 2,611 |
Recorded Investment with Allowance for Loan Losses Recorded | 0 | 0 |
Total Recorded Investment | 2,608 | 2,611 |
Related Allowance for Loan Losses | 0 | 0 |
Real Estate | Construction, Land Development and Farmland | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid Principal Balance | 3,780 | 2,348 |
Recorded Investment with no Allowance for Loan Losses Recorded | 2,127 | 1,860 |
Recorded Investment with Allowance for Loan Losses Recorded | 0 | 171 |
Total Recorded Investment | 2,127 | 2,031 |
Related Allowance for Loan Losses | 0 | 17 |
Real Estate | 1-4 Family Residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid Principal Balance | 3,922 | 1,419 |
Recorded Investment with no Allowance for Loan Losses Recorded | 2,347 | 1,315 |
Recorded Investment with Allowance for Loan Losses Recorded | 0 | 0 |
Total Recorded Investment | 2,347 | 1,315 |
Related Allowance for Loan Losses | 0 | 0 |
Real Estate | 1-4 Family HELOC | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid Principal Balance | 512 | 376 |
Recorded Investment with no Allowance for Loan Losses Recorded | 433 | 374 |
Recorded Investment with Allowance for Loan Losses Recorded | 0 | 0 |
Total Recorded Investment | 433 | 374 |
Related Allowance for Loan Losses | 0 | $ 0 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid Principal Balance | 110 | |
Recorded Investment with no Allowance for Loan Losses Recorded | 14 | |
Recorded Investment with Allowance for Loan Losses Recorded | 4 | |
Total Recorded Investment | 18 | |
Related Allowance for Loan Losses | $ 4 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of Average Recorded Investment in Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Average balance of impaired loans | $ 7,978 | $ 7,852 |
Commercial, Industrial and Agricultural | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Average balance of impaired loans | 1,045 | 736 |
Real Estate | Multi-family and Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Average balance of impaired loans | 2,610 | 2,202 |
Real Estate | Construction, Land Development and Farmland | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Average balance of impaired loans | 2,079 | 3,173 |
Real Estate | 1-4 Family Residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Average balance of impaired loans | 1,831 | 1,724 |
Real Estate | 1-4 Family HELOC | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Average balance of impaired loans | 404 | 0 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Average balance of impaired loans | $ 9 | $ 17 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Summary of Credit Quality Indicators by Class of Loan (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | $ 1,619,894 | $ 1,410,024 |
Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 1,606,835 | 1,395,885 |
Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 2,749 | 3,901 |
Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 10,310 | 10,238 |
Commercial, Industrial and Agricultural | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 283,035 | 245,515 |
Commercial, Industrial and Agricultural | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 280,963 | 241,089 |
Commercial, Industrial and Agricultural | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 456 | 2,382 |
Commercial, Industrial and Agricultural | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 1,616 | 2,044 |
Real Estate | 1-4 Family Residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 261,718 | 227,529 |
Real Estate | 1-4 Family Residential | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 258,828 | 225,809 |
Real Estate | 1-4 Family Residential | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 277 | 0 |
Real Estate | 1-4 Family Residential | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 2,613 | 1,720 |
Real Estate | 1-4 Family HELOC | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 99,296 | 96,228 |
Real Estate | 1-4 Family HELOC | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 98,863 | 95,678 |
Real Estate | 1-4 Family HELOC | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 0 | 0 |
Real Estate | 1-4 Family HELOC | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 433 | 550 |
Real Estate | Multi-family and Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 635,650 | 536,845 |
Real Estate | Multi-family and Commercial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 629,381 | 531,055 |
Real Estate | Multi-family and Commercial | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 1,992 | 1,519 |
Real Estate | Multi-family and Commercial | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 4,277 | 4,271 |
Real Estate | Construction, Land Development and Farmland | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 308,598 | 273,872 |
Real Estate | Construction, Land Development and Farmland | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 307,459 | 272,440 |
Real Estate | Construction, Land Development and Farmland | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 0 | 0 |
Real Estate | Construction, Land Development and Farmland | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 1,139 | 1,432 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 24,141 | 16,855 |
Consumer | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 23,885 | 16,634 |
Consumer | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 24 | 0 |
Consumer | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 232 | 221 |
Other | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 7,456 | 13,180 |
Other | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 7,456 | 13,180 |
Other | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 0 | 0 |
Other | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | $ 0 | $ 0 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Summary of Past Due (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | $ 4,735 | $ 3,682 |
Current | 1,615,159 | 1,406,342 |
Total | 1,619,894 | 1,410,024 |
30-59 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 1,799 | 1,358 |
60-89 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 449 | 266 |
Greater Than 90 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 2,487 | 2,058 |
Commercial, Industrial and Agricultural | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 1,060 | 655 |
Current | 281,975 | 244,860 |
Total | 283,035 | 245,515 |
Commercial, Industrial and Agricultural | 30-59 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 603 | 79 |
Commercial, Industrial and Agricultural | 60-89 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 25 | 4 |
Commercial, Industrial and Agricultural | Greater Than 90 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 432 | 572 |
Real Estate | 1-4 Family Residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 1,306 | 966 |
Current | 260,412 | 226,563 |
Total | 261,718 | 227,529 |
Real Estate | 1-4 Family Residential | 30-59 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 424 | 501 |
Real Estate | 1-4 Family Residential | 60-89 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 413 | 236 |
Real Estate | 1-4 Family Residential | Greater Than 90 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 469 | 229 |
Real Estate | 1-4 Family HELOC | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 483 | 296 |
Current | 98,813 | 95,932 |
Total | 99,296 | 96,228 |
Real Estate | 1-4 Family HELOC | 30-59 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 187 | 0 |
Real Estate | 1-4 Family HELOC | 60-89 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 0 | 0 |
Real Estate | 1-4 Family HELOC | Greater Than 90 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 296 | 296 |
Real Estate | Multi-family and Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 1,269 | 1,043 |
Current | 634,381 | 535,802 |
Total | 635,650 | 536,845 |
Real Estate | Multi-family and Commercial | 30-59 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 220 | 485 |
Real Estate | Multi-family and Commercial | 60-89 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 0 | 0 |
Real Estate | Multi-family and Commercial | Greater Than 90 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 1,049 | 558 |
Real Estate | Construction, Land Development and Farmland | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 567 | 594 |
Current | 308,031 | 273,278 |
Total | 308,598 | 273,872 |
Real Estate | Construction, Land Development and Farmland | 30-59 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 342 | 255 |
Real Estate | Construction, Land Development and Farmland | 60-89 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 0 | 0 |
Real Estate | Construction, Land Development and Farmland | Greater Than 90 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 225 | 339 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 50 | 128 |
Current | 24,091 | 16,727 |
Total | 24,141 | 16,855 |
Consumer | 30-59 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 23 | 38 |
Consumer | 60-89 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 11 | 26 |
Consumer | Greater Than 90 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 16 | 64 |
Other | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 0 | 0 |
Current | 7,456 | 13,180 |
Total | 7,456 | 13,180 |
Other | 30-59 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 0 | 0 |
Other | 60-89 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | 0 | 0 |
Other | Greater Than 90 Days Past Due | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due | $ 0 | $ 0 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Summary of Carrying Amount of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | $ 3,250 | $ 1,469 |
Less remaining purchase discount | 815 | 246 |
Allowance for loan losses | 0 | 0 |
Carrying amount, net of allowance for loan losses | 2,435 | 1,223 |
Commercial, Industrial and Agricultural | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | 232 | 0 |
Real Estate | Multi-family and Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | 242 | 217 |
Real Estate | Construction, Land Development and Farmland | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | 1,283 | 1,021 |
Real Estate | 1-4 Family Residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | 1,453 | 231 |
Real Estate | 1-4 Family HELOC | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | 19 | 0 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | $ 21 | $ 0 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Activity Related to Accretable Portion of Loans Acquired (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance | $ 98 | $ 110 |
New loans purchased | 131 | 0 |
Year-to-date settlements | (20) | 0 |
Balance | $ 209 | $ 110 |
Other Real Estate (Details)
Other Real Estate (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |||
Other real estate, net | $ 0 | $ 750 | |
Proceeds from sale of other real estate | 764 | $ 0 | |
Other real estate, additions | 943 | ||
Mortgage loans in process of foreclosure, amount | $ 906 | ||
Expenses related to other real estate | $ 6 |
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 | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 256,928 | $ 260,293 |
Other real estate owned | 0 | 750 |
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 | 57 | 59 |
State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 196,454 | 196,660 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 7,835 | 7,845 |
Mortgage backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 35,901 | 37,761 |
Asset backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 16,681 | 17,968 |
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 | 57 | 59 |
Recurring | State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 196,454 | 196,660 |
Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 7,835 | 7,845 |
Recurring | Mortgage backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 35,901 | 37,761 |
Recurring | Asset backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 16,681 | 17,968 |
Recurring | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 688 | |
Liabilities | 9,618 | 3,396 |
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) | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | |
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 | 57 | 59 |
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 | 196,454 | 196,660 |
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 | 7,835 | 7,845 |
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 | 35,901 | 37,761 |
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 | 16,681 | 17,968 |
Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 688 | |
Liabilities | 9,618 | 3,396 |
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) | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | |
Liabilities | 0 | 0 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 178 | 553 |
Other real estate owned | 0 | 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 | 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 | 0 |
Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 178 | 553 |
Other real estate owned | $ 0 | $ 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 - Appraisal - Range (Weighted Average) - Significant Unobservable Inputs (Level 3) - Nonrecurring | Mar. 31, 2020 |
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 | Mar. 31, 2020 | Dec. 31, 2019 |
Carrying Amount | ||
Financial assets | ||
Cash and due from banks | $ 46,318 | $ 50,990 |
Federal funds sold | 1,714 | 52 |
Loans, net | 1,604,582 | 1,397,374 |
Mortgage loans held for sale | 70,352 | 37,476 |
Accrued interest receivable | 7,289 | 7,111 |
Restricted equity securities | 14,405 | 11,279 |
Financial liabilities | ||
Deposits | 1,722,448 | 1,583,789 |
Accrued interest payable | 3,995 | 2,022 |
Subordinate debentures | 70,391 | 70,883 |
Federal Home Loan Bank advances | 127,628 | 10,737 |
Estimated Fair Value | ||
Financial assets | ||
Cash and due from banks | 46,318 | 50,990 |
Federal funds sold | 1,714 | 52 |
Loans, net | 1,594,903 | 1,383,719 |
Mortgage loans held for sale | 70,352 | 38,379 |
Accrued interest receivable | 7,289 | 7,111 |
Restricted equity securities | 14,405 | 11,279 |
Financial liabilities | ||
Deposits | 1,728,071 | 1,582,117 |
Accrued interest payable | 3,995 | 2,022 |
Subordinate debentures | 68,645 | 71,454 |
Federal Home Loan Bank advances | 127,965 | 10,755 |
Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets | ||
Cash and due from banks | 46,318 | 50,990 |
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 | 1,714 | 52 |
Loans, net | 0 | 0 |
Mortgage loans held for sale | 0 | 38,379 |
Accrued interest receivable | 7,289 | 7,111 |
Restricted equity securities | 14,405 | 11,279 |
Financial liabilities | ||
Deposits | 0 | 0 |
Accrued interest payable | 3,995 | 2,022 |
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 | 1,594,903 | 1,383,719 |
Mortgage loans held for sale | 70,352 | 0 |
Accrued interest receivable | 0 | 0 |
Restricted equity securities | 0 | 0 |
Financial liabilities | ||
Deposits | 1,728,071 | 1,582,117 |
Accrued interest payable | 0 | 0 |
Subordinate debentures | 68,645 | 71,454 |
Federal Home Loan Bank advances | $ 127,965 | $ 10,755 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - USD ($) $ in Thousands | Mar. 10, 2015 | Mar. 31, 2020 | Jun. 18, 2015 | Dec. 31, 2006 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized future compensation expense related to stock options | $ 346 | |||
Equity Incentive Plan 2015 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 900,000 | |||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise period for stock option awards | 10 years | |||
Employee Stock Option | Commerce Union Bank Stock Option Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 625,000 | |||
Employee Stock Option | Commerce Union Bancshares, Inc. Amended and Restated Stock Option Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 1,250,000 | |||
Restricted Stock and Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost related to non-vested restricted share awards | $ 2,323 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Shares | ||
Outstanding, beginning (in shares) | 149,293 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (868) | |
Forfeited or expired (in shares) | 0 | |
Outstanding, ending (in shares) | 148,425 | 149,293 |
Exercisable (in shares) | 73,825 | |
Weighted Average Exercise Price | ||
Outstanding, beginning (in dollars per share) | $ 18.81 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 8.49 | |
Forfeited or expired (in dollars per share) | 0 | |
Outstanding, ending (in dollars per share) | 18.87 | $ 18.81 |
Exercisable (in dollars per share) | $ 15.39 | |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | ||
Outstanding, Weighted Average Remaining Contractual Term | 6 years 7 months 13 days | 6 years 8 months 4 days |
Exercised, Weighted Average Remaining Contractual Term | 1 year 8 months 23 days | |
Exercisable, Weighted Average Remaining Contractual Term | 5 years 2 months 19 days | |
Outstanding, Aggregate Intrinsic Value | $ 22 | $ 553 |
Exercised, Aggregate Intrinsic Value | 11 | |
Exercisable, Aggregate Intrinsic Value | $ 22 |
Stock-based Compensation - Nonv
Stock-based Compensation - Nonvested Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Shares | |
Non-vested options, beginning (in shares) | shares | 74,600 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Non-vested options, ending (in shares) | shares | 74,600 |
Weighted Average Grant-Date Fair Value | |
Non-vested options, beginning (in dollars per share) | $ / shares | $ 6.08 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Non-vested options, ending (in dollars per share) | $ / shares | $ 6.08 |
Stock-based Compensation - No_2
Stock-based Compensation - Nonvested Restricted Stock Activity (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Restricted Stock Units | |
Shares | |
Non-vested shares, Beginning (in shares) | shares | 47,750 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Non-vested shares, Ending (in shares) | shares | 47,750 |
Weighted Average Grant-Date Fair Value | |
Non-vested shares, Beginning (in dollars per share) | $ / shares | $ 23.30 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Non-vested shares, Ending (in dollars per share) | $ / shares | $ 23.30 |
Restricted Stock | |
Shares | |
Non-vested shares, Beginning (in shares) | shares | 90,960 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (11,163) |
Forfeited (in shares) | shares | (3,837) |
Non-vested shares, Ending (in shares) | shares | 75,960 |
Weighted Average Grant-Date Fair Value | |
Non-vested shares, Beginning (in dollars per share) | $ / shares | $ 25.31 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 21.89 |
Forfeited (in dollars per share) | $ / shares | 21.89 |
Non-vested shares, Ending (in dollars per share) | $ / shares | $ 25.99 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier I leverage | $ 183,873 | $ 176,748 |
Tier I leverage, ratio | 8.91% | 9.74% |
Tier I leverage, minimum required capital including capital conservation buffer | $ 82,547 | $ 72,586 |
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 | $ 103,184 | $ 90,733 |
Tier I leverage, to be well capitalized under prompt corrective action provisions, ratio | 5.00% | 5.00% |
Common equity tier 1 | $ 172,103 | $ 165,063 |
Common equity tier 1, ratio | 9.54% | 10.55% |
Common equity tier 1, minimum required capital including capital conservation buffer | $ 126,281 | $ 109,520 |
Common equity tier 1, minimum required capital including capital conservation buffer, ratio | 7.00% | 7.00% |
Common equity tier 1, to be well capitalized under prompt corrective action provisions | $ 117,261 | $ 101,698 |
Common equity tier 1, to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
Tier I risk-based capital | $ 183,873 | $ 176,748 |
Tier I risk-based capital, ratio | 10.19% | 11.30% |
Tier I risk-based capital, minimum required capital including capital conservation buffer | $ 153,378 | $ 132,952 |
Tier I risk-based capital, minimum required capital including capital conservation buffer, ratio | 8.50% | 8.50% |
Tier I risk-based capital, to be well capitalized under prompt corrective action provisions | $ 144,356 | $ 125,131 |
Tier I risk-based capital, to be well capitalized under prompt corrective action provisions, ratio | 8.00% | 8.00% |
Total risk-based capital | $ 258,040 | $ 249,751 |
Total risk-based capital, ratio | 14.30% | 15.97% |
Total risk-based capital, minimum required capital including capital conservation buffer | $ 189,452 | $ 164,207 |
Total risk-based capital, minimum required capital including capital conservation buffer, ratio | 10.50% | 10.50% |
Total risk-based capital, to be well capitalized under prompt corrective action provisions | $ 180,430 | $ 156,388 |
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 | $ 217,399 | $ 186,734 |
Tier I leverage, ratio | 10.58% | 10.30% |
Tier I leverage, minimum required capital including capital conservation buffer | $ 82,192 | $ 72,518 |
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 | $ 102,741 | $ 90,648 |
Tier I leverage, to be well capitalized under prompt corrective action provisions, ratio | 5.00% | 5.00% |
Common equity tier 1 | $ 217,399 | $ 186,734 |
Common equity tier 1, ratio | 12.13% | 11.95% |
Common equity tier 1, minimum required capital including capital conservation buffer | $ 125,457 | $ 109,384 |
Common equity tier 1, minimum required capital including capital conservation buffer, ratio | 7.00% | 7.00% |
Common equity tier 1, to be well capitalized under prompt corrective action provisions | $ 116,496 | $ 101,571 |
Common equity tier 1, to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
Tier I risk-based capital | $ 217,399 | $ 186,734 |
Tier I risk-based capital, ratio | 12.13% | 11.95% |
Tier I risk-based capital, minimum required capital including capital conservation buffer | $ 152,341 | $ 132,823 |
Tier I risk-based capital, minimum required capital including capital conservation buffer, ratio | 8.50% | 8.50% |
Tier I risk-based capital, to be well capitalized under prompt corrective action provisions | $ 143,379 | $ 125,010 |
Tier I risk-based capital, to be well capitalized under prompt corrective action provisions, ratio | 8.00% | 8.00% |
Total risk-based capital | $ 232,945 | $ 199,737 |
Total risk-based capital, ratio | 13.00% | 12.79% |
Total risk-based capital, minimum required capital including capital conservation buffer | $ 188,148 | $ 163,975 |
Total risk-based capital, minimum required capital including capital conservation buffer, ratio | 10.50% | 10.50% |
Total risk-based capital, to be well capitalized under prompt corrective action provisions | $ 179,188 | $ 156,167 |
Total risk-based capital, to be well capitalized under prompt corrective action provisions, ratio | 10.00% | 10.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic EPS Computation | ||
Net income attributable to common shareholders | $ (215) | $ 3,824 |
Weighted average common shares outstanding (in shares) | 11,892,723 | 11,405,438 |
Basic earnings per common share (in dollars per share) | $ (0.02) | $ 0.34 |
Diluted EPS Computation | ||
Net income attributable to common shareholders | $ (215) | $ 3,824 |
Dilutive effect of stock options, restricted shares and employee stock purchase plan (in shares) | 2,297 | 81,707 |
Adjusted weighted average common shares outstanding (in shares) | 11,895,020 | 11,487,145 |
Diluted earnings per common share (in dollars per share) | $ (0.02) | $ 0.33 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 3 Months Ended |
Mar. 31, 2020segment | |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Net interest income | $ 17,115 | $ 13,461 |
Provision for loan losses | 2,900 | 0 |
Noninterest income | 3,282 | 1,938 |
Noninterest expense (excluding merger expense) | 15,412 | 12,744 |
Merger expenses | 4,186 | 2 |
Income tax expense (benefit) | (910) | 372 |
CONSOLIDATED NET INCOME (LOSS) | (1,191) | 2,281 |
Noncontrolling interest in net loss of subsidiary | 976 | 1,543 |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | (215) | 3,824 |
Operating Segments | Retail Banking | ||
Segment Reporting Information [Line Items] | ||
Net interest income | 16,782 | 13,373 |
Provision for loan losses | 2,900 | 0 |
Noninterest income | 1,709 | 1,378 |
Noninterest expense (excluding merger expense) | 12,461 | 10,445 |
Merger expenses | 4,186 | 2 |
Income tax expense (benefit) | (841) | 480 |
CONSOLIDATED NET INCOME (LOSS) | (215) | 3,824 |
Noncontrolling interest in net loss of subsidiary | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | (215) | 3,824 |
Operating Segments | Residential Mortgage Banking | ||
Segment Reporting Information [Line Items] | ||
Net interest income | 333 | 88 |
Provision for loan losses | 0 | 0 |
Noninterest income | 1,565 | 575 |
Noninterest expense (excluding merger expense) | 2,951 | 2,299 |
Merger expenses | 0 | 0 |
Income tax expense (benefit) | (69) | (108) |
CONSOLIDATED NET INCOME (LOSS) | (984) | (1,528) |
Noncontrolling interest in net loss of subsidiary | 984 | 1,528 |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | 0 | 0 |
Elimination Entries | ||
Segment Reporting Information [Line Items] | ||
Net interest income | 0 | 0 |
Provision for loan losses | 0 | 0 |
Noninterest income | 8 | (15) |
Noninterest expense (excluding merger expense) | 0 | 0 |
Merger expenses | 0 | 0 |
Income tax expense (benefit) | 0 | 0 |
CONSOLIDATED NET INCOME (LOSS) | 8 | (15) |
Noncontrolling interest in net loss of subsidiary | (8) | 15 |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 0 | $ 0 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) | Mar. 31, 2020USD ($) |
Cash Flow Hedging | Interest rate swaps | |
Derivative [Line Items] | |
Notional amounts | $ 160,000,000 |
Derivatives - Interest Rate Swa
Derivatives - Interest Rate Swaps Designated as Cash Flow Hedges (Details) - Cash Flow Hedging - Interest rate swaps | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Derivative [Line Items] | |
Notional amounts | $ 160,000,000 |
Weighted average pay rates | 2.05% |
Weighted average receive rates | 1.679% |
Weighted average maturity | 3 years 9 months 21 days |
Unrealized losses | $ 7,947,000 |
Derivatives - Net Gains (Losses
Derivatives - Net Gains (Losses) Relating to Cash Flow Derivative Instruments (Details) - Cash Flow Hedging - Interest rate swaps $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Derivative [Line Items] | |
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | $ (4,335,000) |
Amount of Gain (Loss) Reclassified from OCI to Interest Income | 0 |
Amount of Gain (Loss) Recognized in Other Noninterest Income (Ineffective Portion) | $ 0 |
Derivatives - Cash Flow Hedges
Derivatives - Cash Flow Hedges and Fair Value Hedges Included in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Cash Flow Hedging | Other Liabilities | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | $ 160,000 | $ 110,000 |
Derivative Liability, Fair Value | 7,947 | 2,078 |
Cash Flow Hedging | Subordinate debentures | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | 10,000 | 10,000 |
Derivative Liability, Fair Value | 830 | 439 |
Cash Flow Hedging | Federal Home Loan Bank borrowings | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | 150,000 | 100,000 |
Derivative Liability, Fair Value | 7,117 | 1,639 |
Fair Value Hedging | Other Assets | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | 0 | 0 |
Derivative Asset, Fair Value | 0 | 0 |
Fair Value Hedging | Other Assets | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | 0 | 0 |
Derivative Asset, Fair Value | 0 | 0 |
Fair Value Hedging | Other Liabilities | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | 19,605 | 19,605 |
Derivative Liability, Fair Value | 1,671 | 630 |
Fair Value Hedging | Other Liabilities | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | 19,605 | 19,605 |
Derivative Liability, Fair Value | $ 1,671 | $ 630 |
Derivatives - Fair Value Hedges
Derivatives - Fair Value Hedges Included in the Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value Hedging | Interest income | Interest rate swaps | ||
Derivative [Line Items] | ||
Change in fair value on interest rate swaps hedging investments | $ (1,041) | $ (501) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ (910) | $ 372 |
Effective income tax rate | 43.30% | 14.00% |
Business Combination - Narrativ
Business Combination - Narrative (Details) | Jan. 01, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / shares | Mar. 31, 2020$ / shares |
Business Acquisition [Line Items] | |||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | |
COMMON STOCK | |||
Business Acquisition [Line Items] | |||
Common stock, par value (in dollars per share) | $ 1 | ||
Business acquisition, share price (in dollars per share) | $ 17.13 | ||
Business combination, shares issued per acquiree share | shares | 0.769 | ||
Tennessee Community Bank Holdings | |||
Business Acquisition [Line Items] | |||
Exchange ratio for Reliant Bancorp, Inc. common stock | 0.769 | ||
Common stock, par value (in dollars per share) | $ 1 | ||
Reliant Bancorp, Inc. common stock shares issued (in shares) | shares | 811,210 | ||
Cash in lieu of fractional shares based on volume weighted average closing consecutive | $ | $ 22.36 | ||
Common Stock Canceled In Exchange For Cash Payment In Amount Equal To Product | $ | 34.25 | ||
Cash settlement for Tennessee Community Bank Holdings, Inc.'s 26,450 outstanding stock options ($34.25 settlement price less weighted average exercise price of $18.00) | $ | $ 430,000 | $ 430,000 |
Business Combination - Financia
Business Combination - Financial Impact of Merger (Details) | Jan. 01, 2020USD ($)$ / sharesshares | Mar. 31, 2020USD ($)$ / shares | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) |
Calculation of Purchase Price | ||||
Reliant Bancorp, Inc. share price at January 1, 2020 (in dollars per share) | $ / shares | $ 11.27 | |||
Cash settlement for Tennessee Community Bank Holdings, Inc. common stock ($17.13 per share) | $ 7,480,000 | $ 0 | ||
Allocation of Purchase Price | ||||
Goodwill | 50,723,000 | $ 43,642,000 | ||
Tennessee Community Bank Holdings | ||||
Calculation of Purchase Price | ||||
Shares of Tennessee Community Bank Holdings, Inc. common stock outstanding as of January 1, 2020 (in shares) | shares | 1,055,041 | |||
Exchange ratio for Reliant Bancorp, Inc. common stock | 0.769 | |||
Reliant Bancorp, Inc. common stock shares issued (in shares) | shares | 811,210 | |||
Reliant Bancorp, Inc. share price at January 1, 2020 (in dollars per share) | $ / shares | $ 22.24 | |||
Estimated value of Reliant Bancorp, Inc. shares issued | $ 18,041,000 | |||
Cash settlement for Tennessee Community Bank Holdings, Inc. common stock ($17.13 per share) | $ 18,073,000 | |||
Cash settlement for Tennessee Community Bank Holdings, Inc.'s 26,450 outstanding stock options ($34.25 settlement price less weighted average exercise price of $18.00) | 430,000 | $ 430,000 | ||
Cash settlement for Reliant Bancorp, Inc. fractional shares ($22.36 per pro rata fractional share) | 3,000 | |||
Total consideration above | $ 36,547,000 | |||
Number of stock options settled (in shares) | shares | 26,450 | |||
Stock options settlement price (in dollars per share) | $ / shares | $ 34.25 | |||
Stock options weighted average exercise price (in dollars per share) | $ / shares | $ 18 | |||
Cash in lieu of fractional shares based on volume weighted average closing consecutive | $ 22.36 | |||
Allocation of Purchase Price | ||||
Total consideration above | 36,547,000 | |||
Cash and cash equivalents | 11,026,000 | |||
Investment securities available for sale | 56,336,000 | |||
Loans, net of unearned income | 171,445,000 | |||
Accrued interest receivable | 948,000 | |||
Premises and equipment | 6,440,000 | |||
Cash surrender value of life insurance contracts | 5,629,000 | |||
Restricted equity securities | 909,000 | |||
Core deposit intangible | 3,617,000 | |||
Other assets | 833,000 | |||
Deposits | (210,538,000) | |||
Deferred tax liability | (337,000) | |||
Borrowings | (58,000) | |||
FHLB advances | (13,102,000) | |||
Other liabilities | (3,682,000) | |||
Total fair value of net assets acquired | 29,466,000 | |||
Goodwill | $ 7,081,000 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | |
Leases [Abstract] | |||
Operating leases right of use assets | $ 11,473 | $ 12,000 | |
Operating lease liabilities | $ 11,761 | $ 11,900 | |
Discount rate | 4.50% | ||
Lease expense | $ 707 | $ 687 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating leases right of use assets | $ 11,473 | $ 12,000 |
Operating lease liabilities | $ 11,761 | 11,900 |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating leases right of use assets | 11,973 | |
Operating lease liabilities | $ 11,973 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 16, 2020 | Apr. 16, 2020 | Apr. 01, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | |||
Share price (in dollars per share) | $ 11.27 | ||||
Common stock, shares outstanding (in shares) | 12,014,495 | 11,206,254 | |||
Federal funds lines available | $ 181,300 | ||||
Borrowing capacity from correspondent banks | $ 359,400 | ||||
FABK | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares outstanding (in shares) | 4,012,365 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
SBA authorizations for PPP loans, amount | $ 35,600 | $ 53,704 | |||
SBA authorizations for PPP loans, related fees | $ 1,200 | $ 2,202 | |||
Subsequent Event | FABK | |||||
Subsequent Event [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Subsequent Event | FABK | |||||
Subsequent Event [Line Items] | |||||
Business combination, shares issued per acquiree share | 1.17 | ||||
Business acquisition, share price (in dollars per share) | $ 3 | ||||
Business combination, cash paid in lieu of fractional shares (in dollars per share) | $ 11.74 | ||||
Total consideration above | $ 65,314 | ||||
Consideration transferred as price per share (in dollars per share) | $ 16.28 |
Uncategorized Items - rbnc-2020
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 100,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 100,000 |