Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 07, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | AVNU | |
Entity Registrant Name | AVENUE FINANCIAL HOLDINGS, INC. | |
Entity Central Index Key | 1,616,297 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 10,278,340 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 18,360,874 | $ 17,765,493 |
Interest-bearing time deposits in banks | 215,203 | 210,754 |
Securities available-for-sale, at fair value | 213,095,723 | 220,461,939 |
Securities held-to-maturity (fair value of $3,869,505 and $2,837,721 as of June 30, 2015 and December 31, 2014, respectively) | 3,802,440 | 2,716,908 |
Mortgage loans held-for-sale | 26,363,485 | 27,237,457 |
Loans, net of deferred fees | 773,441,243 | 693,907,951 |
Less allowance for loan losses | (9,311,870) | (8,517,744) |
Net loans | 764,129,373 | 685,390,207 |
Accrued interest receivable | 2,627,076 | 2,389,997 |
Federal Home Loan Bank stock, at cost | 3,320,400 | 2,924,400 |
Premises and equipment, net | 3,098,276 | 3,280,186 |
Other real estate owned | 2,708,961 | 3,375,811 |
Deferred tax assets | 8,614,624 | 7,377,355 |
Cash surrender value of company owned life insurance | 25,362,673 | 20,035,752 |
Goodwill | 2,966,063 | 2,966,063 |
Other assets | 1,312,753 | 2,234,676 |
Total assets | 1,075,977,924 | 998,366,998 |
Deposits: | ||
Noninterest-bearing demand deposits | 208,415,520 | 170,647,052 |
Interest-bearing demand deposits | 61,924,397 | 55,652,417 |
Savings and money market accounts | 412,171,638 | 415,779,182 |
Time | 168,979,034 | 161,092,912 |
Total deposits | 851,490,589 | 803,171,563 |
Accrued interest payable | 514,855 | 169,913 |
Federal funds purchased | 460,000 | 4,485,093 |
Federal Home Loan Bank advances | 105,300,000 | 70,300,000 |
Subordinated debt | 19,595,584 | 19,577,295 |
Other liabilities | 8,926,068 | 9,047,027 |
Total liabilities | 986,287,096 | 906,750,891 |
Stockholders’ equity: | ||
Common Stock, no par value. Authorized 100,000,000 shares: issued and outstanding 10,256,340 and 8,636,682 shares at June 30, 2015 and December 31, 2014, respectively | 89,935,473 | 75,407,157 |
Additional paid-in-capital | 1,623,211 | 1,325,445 |
Accumulated profit (deficit) | 1,428,859 | (1,581,649) |
Accumulated other comprehensive loss | (3,296,715) | (2,484,846) |
Total stockholders’ equity | 89,690,828 | 91,616,107 |
Total liabilities and stockholders’ equity | $ 1,075,977,924 | 998,366,998 |
Series C Senior Noncumulative Perpetual Preferred Stock | ||
Stockholders’ equity: | ||
Preferred Stock, no par value; 10,000,000 shares authorized, Series C, senior noncumulative perpetual preferred stock; 0 and 18,950 issued and outstanding at June 30, 2015 and December 31, 2014, respectively | $ 18,950,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) (unaudited) - USD ($) None in scaling factor is -9223372036854775296 | Jun. 30, 2015 | Dec. 31, 2014 |
Held-to-maturity securities, fair value | $ 3,869,505 | $ 2,837,721 |
Common stock, no par value | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 10,256,340 | 8,636,682 |
Common stock, shares outstanding | 10,256,340 | 8,636,682 |
Series C Senior Noncumulative Perpetual Preferred Stock | ||
Preferred stock, no par value | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 18,950 |
Preferred stock, shares outstanding | 0 | 18,950 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest and dividend income: | ||||
Loans, including fees | $ 8,210,260 | $ 7,075,747 | $ 15,878,921 | $ 13,500,016 |
Taxable securities | 913,092 | 940,299 | 1,832,260 | 2,017,781 |
Tax-exempt securities | 229,094 | 193,425 | 445,209 | 481,814 |
Federal Funds sold and other | 30,755 | 27,352 | 60,887 | 57,772 |
Total interest and dividend income | 9,383,201 | 8,236,823 | 18,217,277 | 16,057,383 |
Interest expense: | ||||
Deposits | 773,193 | 786,811 | 1,534,579 | 1,542,751 |
Other borrowings | 523,177 | 165,040 | 1,030,877 | 353,165 |
Total interest expense | 1,296,370 | 951,851 | 2,565,456 | 1,895,916 |
Net interest income | 8,086,831 | 7,284,972 | 15,651,821 | 14,161,467 |
Provision for loan losses | 855,095 | 548,598 | 1,008,632 | 1,408,940 |
Net interest income after provision for loan losses | 7,231,736 | 6,736,374 | 14,643,189 | 12,752,527 |
Noninterest income: | ||||
Customer service fees | 743,385 | 593,863 | 1,413,915 | 1,209,710 |
Mortgage banking income from sales, net of commissions | 417,131 | 201,808 | 622,398 | 239,353 |
Increase in cash surrender value of life insurance | 183,513 | 121,556 | 326,920 | 241,298 |
Net gain on sales of bulk mortgage loans | 315,815 | 552,289 | ||
Net gain (loss) on sale of available-for-sale securities | 215,201 | (2,138) | 215,201 | 11,917 |
Total noninterest income | 1,875,045 | 915,089 | 3,130,723 | 1,702,278 |
Noninterest expenses: | ||||
Salaries and employee benefits | 4,001,069 | 3,361,230 | 7,915,086 | 6,855,989 |
Equipment and occupancy | 813,892 | 864,912 | 1,653,705 | 1,755,760 |
Data processing | 376,232 | 355,955 | 804,715 | 682,615 |
Advertising, promotion, and public relations | 197,473 | 147,941 | 380,883 | 296,085 |
Legal and accounting | 407,494 | 218,589 | 683,282 | 405,088 |
FDIC insurance and other regulatory assessments | 225,665 | 184,457 | 418,122 | 363,782 |
Other real estate (income) expense | 22,514 | 2,930 | (17,676) | 16,088 |
Other expenses | 779,222 | 726,398 | 1,459,285 | 1,331,764 |
Total noninterest expenses | 6,823,561 | 5,862,412 | 13,297,402 | 11,707,171 |
Income before taxes | 2,283,220 | 1,789,051 | 4,476,510 | 2,747,634 |
Income tax expense | 697,892 | 555,000 | 1,433,892 | 842,575 |
Net income | 1,585,328 | 1,234,051 | 3,042,618 | 1,905,059 |
Preferred stock dividends | (47,375) | (32,110) | (94,750) | |
Net income available to common stockholders | $ 1,585,328 | $ 1,186,676 | $ 3,010,508 | $ 1,810,309 |
Per share information: | ||||
Basic net income per common share available to common stockholders | $ 0.16 | $ 0.14 | $ 0.31 | $ 0.21 |
Diluted net income per common share available to common stockholders | $ 0.16 | $ 0.14 | $ 0.31 | $ 0.21 |
Weighted average common shares outstanding: | ||||
Basic | 10,064,840 | 8,487,516 | 9,694,135 | 8,484,016 |
Diluted | 10,161,167 | 8,487,516 | 9,794,661 | 8,484,016 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 1,585,328 | $ 1,234,051 | $ 3,042,618 | $ 1,905,059 |
Other comprehensive income (loss), after tax: | ||||
Change in net gains (losses) on securities available-for-sale, net of tax effect of $970,495 and $(779,782) for the three months ended June 30, 2015 and 2014, respectively; and $246,898 and $(1,616,272) for the six months ended June 30, 2015 and 2014, respectively | (2,016,703) | 1,481,053 | (378,191) | 3,096,154 |
Change in cash flow hedge, net of tax effect of $(116,025) and $33,961 for the three months ended June 30, 2015 and 2014, respectively and $434,740 and $33,961 for the six months ended June 30, 2015 and 2014, respectively | 186,992 | (54,733) | (323,712) | (54,733) |
Termination of cash flow hedge, net of tax effect of $150,633 for the three and six months ended June 30, 2015 | (242,767) | (242,767) | ||
Net gains (loss) on sale of investment securities reclassified out of other comprehensive income, net of tax effect of $(82,400) and $819 for the three months ended June 30, 2015 and 2014, respectively; and $(82,400) and $(4,563) for the six months ended June 30, 2015 and 2014, respectively | 132,801 | (1,319) | 132,801 | 7,354 |
Total other comprehensive income (loss), after tax | (1,939,677) | 1,425,001 | (811,869) | 3,048,775 |
Comprehensive income (loss) | $ (354,349) | $ 2,659,052 | $ 2,230,749 | $ 4,953,834 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Change in net gains (losses) on securities available-for-sale, tax effect | $ 970,495 | $ (779,782) | $ 246,898 | $ (1,616,272) |
Change in cash flow hedge, tax effect | (116,025) | 33,961 | 434,740 | 33,961 |
Termination of cash flow hedge, tax effect | 150,633 | 150,633 | ||
Net gains (loss) on sale of investment securities reclassified out of other comprehensive income, tax effect | $ (82,400) | $ 819 | $ (82,400) | $ (4,563) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Changes In Stockholders' Equity (unaudited) - USD ($) | Total | Preferred Stock | Common Stock | Additional paid-in-capital | Accumulated profit (deficit) | Accumulated other comprehensive income (loss) |
Balances at Dec. 31, 2013 | $ 82,417,668 | $ 18,950,000 | $ 75,407,157 | $ 783,499 | $ (7,004,696) | $ (5,718,292) |
Balances (Shares) at Dec. 31, 2013 | 18,950 | 8,567,912 | ||||
Stock based compensation expense | 345,129 | 345,129 | ||||
Preferred stock dividends | (94,750) | (94,750) | ||||
Issuance of restricted shares, net of forfeitures (Shares) | 56,989 | |||||
Restricted shares withheld for taxes | (45,165) | (45,165) | ||||
Restricted shares withheld for taxes (Shares) | (5,313) | |||||
Net income | 1,905,059 | 1,905,059 | ||||
Other comprehensive income | 3,048,775 | 3,048,775 | ||||
Balances at Jun. 30, 2014 | 87,576,716 | $ 18,950,000 | $ 75,407,157 | 1,083,463 | (5,194,387) | (2,669,517) |
Balances (Shares) at Jun. 30, 2014 | 18,950 | 8,619,588 | ||||
Balances at Dec. 31, 2014 | 91,616,107 | $ 18,950,000 | $ 75,407,157 | 1,325,445 | (1,581,649) | (2,484,846) |
Balances (Shares) at Dec. 31, 2014 | 18,950 | 8,636,682 | ||||
Stock based compensation expense | 335,304 | 335,304 | ||||
Preferred stock dividends | (32,110) | (32,110) | ||||
Issuance of common stock | 14,528,316 | $ 14,528,316 | ||||
Issuance of common stock (Shares) | 1,543,655 | |||||
Redemption of preferred stock | (18,950,000) | $ (18,950,000) | ||||
Redemption of preferred stock (Shares) | (18,950) | |||||
Issuance of restricted shares, net of forfeitures (Shares) | 79,853 | |||||
Restricted shares withheld for taxes | (37,538) | (37,538) | ||||
Restricted shares withheld for taxes (Shares) | (3,850) | |||||
Net income | 3,042,618 | 3,042,618 | ||||
Other comprehensive income | (811,869) | (811,869) | ||||
Balances at Jun. 30, 2015 | $ 89,690,828 | $ 89,935,473 | $ 1,623,211 | $ 1,428,859 | $ (3,296,715) | |
Balances (Shares) at Jun. 30, 2015 | 10,256,340 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities: | ||
Net income | $ 3,042,618 | $ 1,905,059 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 1,008,632 | 1,408,940 |
Net amortization of securities | 457,194 | 458,423 |
Amortization of deferred loan fees and cost | 52,849 | 47,857 |
Stock-based compensation expense | 335,304 | 345,129 |
Supplemental executive retirement plan expense | 155,500 | 71,280 |
Deferred tax benefit | (638,880) | (181,396) |
Increase in cash surrender value of life insurance contracts | (326,920) | (241,298) |
Depreciation and amortization of premises and equipment | 485,058 | 594,978 |
Gain on sale of available-for-sale securities | (215,201) | (11,917) |
Gain on mortgage loans sold, net | (1,174,687) | (239,353) |
Mortgage loans held-for-sale: | ||
Loans originated | (90,298,125) | (28,134,199) |
Loans sold | 78,651,440 | 25,902,791 |
(Increase) decrease in accrued interest receivable | (237,079) | 91,910 |
Decrease in other assets | 1,607,062 | 1,557,936 |
Increase in accrued interest payable | 344,942 | 11,745 |
(Decrease) increase in other liabilities | (1,889,325) | 297,880 |
Net cash provided by operating activities | (8,639,618) | 3,885,765 |
Investing activities: | ||
Net change in interest-bearing time deposits in banks | (4,449) | 1,984,000 |
Activity in available-for-sale securities: | ||
Sales | 32,189,238 | 40,606,153 |
Maturities, prepayments and calls | 19,425,749 | 13,645,948 |
Purchases | (44,283,073) | (9,621,812) |
Activity in held-to-maturity securities: | ||
Maturities, prepayments and calls | 1,513 | |
Purchases | (1,092,128) | |
Purchases of Federal Home Loan Bank Stock | (396,000) | (250,300) |
Additions to premises and equipment, net of effects from disposals | (303,148) | (124,488) |
Purchases of company owned life insurance | (5,000,001) | |
Proceeds from sale of mortgage loans initially held-for-investment | 13,695,344 | |
Increase in loans, net of collections | (79,800,647) | (104,440,751) |
Net cash used in investing activities | (65,567,602) | (58,201,250) |
Financing activities: | ||
Net increase in deposits | 48,319,026 | 78,923,293 |
Net change in federal funds purchased | (4,025,093) | (15,280,142) |
Proceeds from Federal Home Loan Bank advances | 180,300,000 | 125,750,000 |
Payments on Federal Home Loan Bank advances | (145,300,000) | (129,500,000) |
Issuance (forfeitures) of common stock | 14,490,778 | (45,165) |
Redemption of preferred stock | (18,950,000) | |
Preferred stock dividends | (32,110) | (94,750) |
Net cash provided by financing activities | 74,802,601 | 59,753,236 |
Net increase in cash and cash equivalents | 595,381 | 5,437,751 |
Cash and cash equivalents, beginning of period | 17,765,493 | 12,417,198 |
Cash and cash equivalents, end of period | $ 18,360,874 | $ 17,854,949 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies (a) Accounting Policies The accounting principles followed and the methods of applying those principles conform with accounting principles generally accepted in the United States of America and to general practices in the banking industry. The significant accounting policies applicable to Avenue Financial Holdings, Inc. (the Corporation) and its wholly owned subsidiary, Avenue Bank (the Bank) (collectively, the Company) are summarized as follows. (b) Nature of Operations The Company provides a variety of financial services to individuals and middle market businesses through its offices in middle Tennessee. Its primary deposit products are checking, savings, money market and term certificate accounts and its primary lending products are residential real estate, commercial and industrial, commercial real estate, construction and consumer loans. (c) Basis of Presentation The consolidated financial statements include the accounts of the Corporation and the Bank. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of only normal recurring accruals) necessary for fair representation have been included. The results of operations and other data for the three and six months ended June 30, 2015, are not necessarily indicative of results that may be expected for the entire fiscal year ending December 31, 2015. The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles. Accordingly, the accompanying unaudited consolidated financial statements should be read in conjunction with the Corporation’s consolidated financial statements and related notes appearing in the 2014 Annual Report previously filed on Form 10-K. The consolidated balance sheet of the Company as of December 31, 2014 has been derived from the audited consolidated balance sheet of the Company as of that date. (d) Use of Estimates In preparing consolidated financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and 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 the determination of the allowance for loan losses and the valuation of deferred tax assets, other real estate owned, and investment securities including other-than-temporary impairment. All interest accrued but not collected for loans that are placed on non-accrual or charged off is reversed against interest income. The payments received on these loans are applied to the principal balance until the loan qualifies for return to accrual status. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current with on time payments for six consecutive months and future payments are reasonably assured. (e) Recent Accounting Pronouncements In April 2015, the FASB issued Accounting Standards Update (ASU) 2015-03, Simplifying the Presentation of Debt Issuance Costs, (f) Income Per Common Share Basic net income per common share available to common stockholders is computed by dividing net income available to common stockholders by the weighted average common shares outstanding for the period. Diluted net income per common share available to common stockholders excludes any common stock options or restricted share awards agreements whose exercise would be antidilutive. Typically the difference between basic and diluted weighted average shares outstanding is attributable to common stock options and restricted share awards. For the three and six months ended June 30, 2014, approximately 286,000, respectively of antidilutive stock options were excluded from the diluted earnings per common share calculation under the treasury stock method as the strike price for an option was above the fair market value of a common share. There were no antidilutive stock options at for the three and six months ended June 30, 2015. The following is a summary of the basic and diluted earnings per common share calculation for each of the three and six months ended June 30, 2015 and 2014: At or for the Three Months Ended At or for the Six Months Ended June 30, June 30, 2015 2014 2015 2014 Basic earnings per share calculation: Numerator - Net income available to common stockholders $ 1,585,328 1,186,676 3,010,508 1,810,309 Denominator – Weighted average common shares outstanding 10,064,840 8,487,516 9,694,135 8,484,016 Basic net income per common share available to common stockholders $ 0.16 0.14 0.31 0.21 Diluted earnings per share calculation: Numerator - Net income available to common stockholders 1,585,328 1,186,676 3,010,508 1,810,309 Denominator – Average common shares outstanding 10,064,840 8,487,516 9,694,135 8,484,016 Average diluted common shares outstanding 96,327 - 100,526 - Weighted average common shares outstanding 10,161,167 8,487,516 9,794,661 8,484,016 Diluted net income per common share available to common stockholders $ 0.16 0.14 0.31 0.21 ( g ) Cash Flow Information Supplemental cash flow information addressing certain cash and noncash transactions for each of the six months ended June 30, 2015 and 2014 was as follows: Six Months Ended June 30, 2015 2014 Supplemental cash flow information: Cash paid for interest $ 2,220,514 1,884,171 Cash paid for income taxes 1,450,000 500,000 Trade date securities payable 929,000 - ( h ) Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Securities | (2) Securities The amortized cost and fair value of securities available-for-sale and held-to-maturity at June 30, 2015 and December 31, 2014 are summarized as follows: June 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In Thousands) Securities available-for-sale: U.S. government agency securities $ 46,315 25 724 45,616 State and municipal securities 44,909 495 279 45,125 Corporate notes 8,718 23 45 8,696 Mortgage-backed securities 114,944 466 1,751 113,659 $ 214,886 1,009 2,799 213,096 Securities held-to-maturity: State and municipal securities $ 2,712 85 - 2,797 Mortgage-backed securities 1,090 - 18 1,072 $ 3,802 85 18 3,869 December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In Thousands) Securities available-for-sale: U.S. government agency securities $ 14,492 5 240 14,257 State and municipal securities 38,688 646 90 39,244 Corporate notes 8,817 17 36 8,798 Mortgage-backed securities 159,530 799 2,166 158,163 $ 221,527 1,467 2,532 220,462 Securities held-to-maturity: State and municipal securities $ 2,717 121 - 2,838 $ 2,717 121 - 2,838 Gross realized gains and (losses) were approximately $266,000 and $(51,000) from security sales of $32.2 million during the six months ended June 30, 2015. Gross realized gains and (losses) were $530,000 and $(518,000) from security sales of $40.6 million for the six months ended June 30, 2014. Realized gains and losses from securities sales are recognized in the consolidated statements of income upon disposition of the securities using the specific identification method on a trade date basis. Expected maturities of mortgage backed securities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, these securities are not included in the maturity categories in the following maturity summary. The amortized cost and estimated fair value of securities at June 30, 2015, by contractual maturity, are shown below: Available-for-sale Held-to-maturity Amortized Cost Fair Value Amortized Cost Fair Value (In Thousands) Due in one year or less $ 4,890 4,909 - - Due in one year to five years 31,865 31,892 - - Due in five years to ten years 38,715 38,689 1,507 1,549 Due after ten years 24,472 23,947 1,205 1,248 Mortgage-backed securities 114,944 113,659 1,090 1,072 $ 214,886 213,096 3,802 3,869 Securities with an amortized cost of $26.8 million and $24.0 million and fair value of $26.6 million and $24.1 million at June 30, 2015 and December 31, 2014, respectively, were pledged to secure deposits, borrowings and for other purposes as required or permitted by law. Security fair values are established by an independent pricing service as of the approximate dates indicated. The difference between book value and fair value reflects current interest rates and represents the potential gain (loss) had the portfolio been liquidated on those dates. At June 30, 2015 and December 31, 2014, the Bank did not hold investment securities of any single issuer, other than obligations of U.S. government agencies, whose aggregate book value exceeded 10% of stockholders’ equity. Securities available-for-sale and held-for-maturity with unrealized losses as of June 30, 2015 and December 31, 2014, and the length of time they have been in continuous loss positions were as follows: Investments with an Unrealized Loss of less than 12 months Investments with an Unrealized Loss 12 months or longer Total Investments with an Unrealized Loss Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses (In Thousands) As of June 30, 2015 U.S. government agencies $ 35,081 (623 ) 4,899 (101 ) 39,980 (724 ) State and municipal securities 14,141 (212 ) 1,939 (67 ) 16,080 (279 ) Corporate notes 4,478 (45 ) - - 4,478 (45 ) Mortgage-backed securities 31,436 (330 ) 59,532 (1,439 ) 90,968 (1,769 ) Total temporarily impaired $ 85,136 (1,210 ) 66,370 (1,607 ) 151,506 (2,817 ) As of December 31, 2014 U.S. government agencies $ 2,494 (5 ) 10,759 (235 ) 13,253 (240 ) State and municipal securities 4,369 (19 ) 2,963 (71 ) 7,332 (90 ) Corporate notes 2,222 (4 ) 4,553 (32 ) 6,775 (36 ) Mortgage-backed securities 4,891 (21 ) 93,517 (2,145 ) 98,408 (2,166 ) Total temporarily impaired $ 13,976 (49 ) 111,792 (2,483 ) 125,768 (2,532 ) As noted in the table above, at June 30, 2015, the Bank had unrealized losses of $2.8 million on $151.5 million of available-for-sale and held-to-maturity securities. The Bank does not consider these securities to be other-than-temporarily impaired. Unrealized losses on securities issued by states and political subdivisions in the U.S., U.S. government agency securities, and mortgage backed securities have not been recognized into income because the securities are backed by the U.S. government, its agencies, or political subdivisions for municipal bonds and management has the intent and ability to hold these securities until maturity. For corporate bonds with unrealized losses, the Bank currently does not intend to sell these securities and it is more likely than not that the Bank will have the intent and ability to hold these securities to recovery of their amortized cost. The decline in value of these securities is primarily attributable to interest rates and not credit losses. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2015 | |
Loans And Leases Receivable Disclosure [Abstract] | |
Loans And Allowance for Loan Losses | (3) Loans and Allowance for Loan Losses The Bank has six loan segments for financial reporting purposes, residential real estate, commercial and industrial, commercial real estate, construction and land development, consumer, and other. The Bank classifies its loan portfolio based on the underlying collateral utilized to secure each loan. These classifications are consistent with those utilized in the Quarterly Report of Condition and Income, filed by the Bank with the Federal Deposit Insurance Corporation (FDIC). · Residential real estate loans are classified into two categories based on the underlying collateral securing the loans. They consist of mortgage loans secured by 1-4 family residential properties including home equity lines of credit and multi-family properties secured primarily by apartment buildings. · Commercial and industrial loans include loans to business enterprises issued for commercial, industrial and/or other professional purposes. · Commercial real estate mortgage loans are categorized as such based on investor exposures where repayment is largely dependent upon the operation, refinance, or sale of the underlying real estate. Commercial real estate mortgage loans also include owner occupied commercial real estate which shares a similar risk profile to our commercial and industrial loan products. · Construction and land development loans include loans where the repayment is dependent on the successful operation of the related real estate project. Construction and land development loans include 1-4 family construction projects and commercial construction endeavors such as warehouses, apartments, office and retail space and land acquisition and development. Construction loans can include interest reserve to carry the project through to completion. At June 30, 2015, $446,000 was included in the loan balance for interest reserves. · Consumer loans include all loans issued to individuals not included in the residential real estate mortgage classification. Examples of consumer loans are automobile loans and personal lines of credit. · Other loans include all loans not included in the consumer classification, such as unsecured loans to religious organizations. The following table summarizes the balance of loans outstanding by segment and class as of June 30, 2015 and December 31, 2014: June 30, 2015 December 31, 2014 (In Thousands) Residential real estate: Mortgage $ 120,208 110,929 Multi-family 10,399 11,310 Commercial and industrial 272,783 235,911 Commercial real estate 284,653 271,001 Construction and land development 78,473 58,843 Consumer 7,052 5,915 Other 802 875 Total loans 774,370 694,784 Net deferred loan origination costs and fees (929 ) (876 ) Less allowance for loan losses (9,312 ) (8,518 ) Net loans $ 764,129 685,390 (a) Asset Quality Commercial loans are assigned risk ratings by the lender that are subject to validation by a third party loan reviewer or the Bank’s internal credit committee. Risk ratings are categorized as pass, special mention, substandard, impaired. As of June 30, 2015, approximately 72% of the loan portfolio was classified as a commercial loan type and was specifically assigned a pass risk rating. Pass rated loans include all loans other than those included in special mention, substandard and impaired, which are defined as follows: · Special mention loans have potential weaknesses that deserve close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Bank’s credit position at some future date. · Substandard loans are inadequately protected by the current worth and paying capacity of the borrower or the collateral pledged, if any. Assets so classified must have a well defined weakness or weaknesses that jeopardize collection of the debt. Substandard loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. These loans may be considered impaired, if in management’s judgment, the loan is either collateral dependent or the credit is weakened by the borrower’s financial condition. · Impaired loans have the traits of substandard loans; however, repayment of principal and interest is uncertain. The weaknesses of these loans make it more probable than not that repayment of principal and interest will not occur per contractual obligation. The following tables present the loan balances by segment as well as risk rating category as of June 30, 2015 and December 31, 2014: Performing Loans Pass Special Mention Substandard Total Performing Total Impaired Loans (1) Total Loans (In Thousands) June 30, 2015 Residential real estate: Mortgage $ 119,669 - 221 119,890 318 120,208 Multi-family 10,399 - - 10,399 - 10,399 Commercial and industrial 272,145 - 207 272,352 431 272,783 Commercial real estate 281,330 - 3,323 284,653 - 284,653 Construction and land development 77,801 - - 77,801 672 78,473 Consumer 7,025 - - 7,025 27 7,052 Other 802 - - 802 - 802 $ 769,171 - 3,751 772,922 1,448 774,370 Performing Loans Pass Special Mention Substandard Total Performing Total Impaired Loans (1) Total Loans (In Thousands) December 31, 2014 Residential real estate: Mortgage $ 108,325 - - 108,325 2,604 110,929 Multi-family 11,310 - - 11,310 - 11,310 Commercial and industrial 235,208 - 214 235,422 489 235,911 Commercial real estate 267,567 - 3,434 271,001 - 271,001 Construction and land development 58,158 - - 58,158 685 58,843 Consumer 5,886 - - 5,886 29 5,915 Other 875 - - 875 - 875 $ 687,329 - 3,648 690,977 3,807 694,784 (1) (2) (b) Impaired Loans As of June 30, 2015 and December 31, 2014, all loans classified as non-accrual were considered to be impaired. In addition, certain substandard loans were determined to be impaired due to management’s knowledge of certain facts surrounding the credit. The principal balance of these impaired loans amounted to $1.4 million as of June 30, 2015 and $3.8 million as of December 31, 2014, respectively. The average balance of these loans for the quarter ended June 30, 2015 was $1.5 million as compared with $3.9 million for the year ended December 31, 2014. At the date that impaired loans were placed on non-accrual status, the Bank reversed all previously accrued interest income against the current year earnings. The payments received on these loans are applied to the principal balance until the loan qualifies for return to accrual status. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current with on time payments for six consecutive months and future payments are reasonably assured. Additional information on the Bank’s impaired loans that were evaluated for specific loss allowance as of June 30, 2015 and December 31, 2014 including the recorded investment on the balance sheet and the unpaid principal balance is shown below: Six Months Ended At June 30, 2015 June 30, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) (In Thousands) Impaired loans with no recorded allowance: Residential real estate: Mortgage $ 318 333 - 321 - Commercial and industrial 131 250 - 190 - Construction and land development 444 444 - 464 9 Total 893 1,027 - 975 9 Impaired loans with a recorded allowance: Residential real estate: Mortgage - - - - - Commercial and industrial 300 300 300 300 - Construction and land development 228 228 12 232 5 Consumer 27 27 27 29 - Total 555 555 339 561 5 Total impaired loans $ 1,448 1,582 339 1,536 14 For the year ended At December 31, 2014 December 31, 2014 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) (In Thousands) Impaired loans with no recorded allowance: Commercial and industrial $ 172 292 - 235 - Total 172 292 - 235 - Impaired loans with a recorded allowance: Residential real estate: Mortgage 2,604 2,619 130 2,629 100 Commercial and industrial 317 320 292 320 - Construction and land development 685 685 79 713 29 Consumer 29 29 29 30 - Total 3,635 3,653 530 3,692 129 Total impaired loans $ 3,807 3,945 530 3,927 129 (1) (c) Non-accrual and Past Due Loans A loan is considered past due when payment is 30 days or more late based on the contractual terms of the loan. As shown in the table below, the Bank had $0 and $8,000 of loans past due 30 days or more that were not on non-accrual status as of June 30, 2015 and December 31, 2014, respectively. The tables below present past due balances at June 30, 2015 and December 31, 2014 and by loan segment allocated between performing and impaired status: 30-89 days past due and performing 90 days or more past due and performing Total past due and performing Current and performing Impaired (1) Total Loans (In Thousands) June 30, 2015 Residential real estate: Mortgage $ - - - 119,890 318 120,208 Multi-family - - - 10,399 - 10,399 Commercial and industrial - - - 272,352 431 272,783 Commercial real estate - - - 284,653 - 284,653 Construction and land development - - - 77,801 672 78,473 Consumer - - - 7,025 27 7,052 Other - - - 802 - 802 $ - - - 772,922 1,448 774,370 30-89 days past due and performing 90 days or more past due and performing Total past due and performing Current and performing Impaired (2) Total Loans (In Thousands) December 31, 2014 Residential real estate: Mortgage $ - - - 108,325 2,604 110,929 Multi-family - - - 11,310 - 11,310 Commercial and industrial - - - 235,422 489 235,911 Commercial real estate - - - 271,001 - 271,001 Construction and land development - - - 58,158 685 58,843 Consumer 8 - 8 5,878 29 5,915 Other - - - 875 - 875 $ 8 - 8 690,969 3,807 694,784 (1) (2) At June 30, 2015 and December 31, 2014, all loans classified as non-accrual were deemed to be impaired. The principal balance of these non-accrual loans amounted to $776,000 and $695,000 at June 30, 2015 and December 31, 2014, respectively. At the date such loans were placed on non-accrual status, the Bank reversed all previously accrued interest income against current year earnings. Had these non-accruing loans been on accruing status, interest income would have been higher by $2,000 and $72,000 for the periods ended June 30, 2015 and December 31, 2014, respectively. (d) Troubled Debt Restructure (TDR) The Bank attempts to work with borrowers when possible to extend or modify terms to better align with their current ability to repay. These extensions and modifications are made in accordance with internal policies, which conform to regulatory guidance. Each modification is unique to the borrower and is evaluated separately, and as such, qualification criteria and payments terms consider the borrower’s current and prospective ability to comply with the modified terms of the loan. A modification is classified as a TDR if the borrower is experiencing financial difficulty and it is determined that the Bank has granted a concession to the borrower that would have otherwise not been granted and is not available to other borrowers. The Bank may determine that a borrower is experiencing financial difficulty if the borrower is currently in default on any of its debt, or if it is probable that a borrower may default in the foreseeable future without a modification. Examples of concessions that would qualify as a TDR include: 1) a reduction in interest rates, 2) extension of the maturity date at a rate lower than current market rate for a new loan with similar risk, 3) principal forgiveness, 4) reduction of accrued interest or 5) a period of interest only payments. When evaluating if it is in the Bank’s interest to restructure troubled debt, management may consider whether the borrower has provided additional collateral or guarantors and whether such additions adequately compensate the Bank for the restructured terms. The determination of whether a restructuring of a loan meets the criteria for classification as a TDR is subjective in nature and management judgment is required in the evaluation process. As of June 30, 2015 and June 30, 2014 there were $444,000 and $2.9 million, respectively, of TDRs that were performing. As of June 30, 2015, one mortgage loan was classified as a TDR. As of June 30, 2014 the TDRs were categorized as one mortgage loan and one construction and land development loan. A TDR is considered an impaired loans pursuant to U.S. GAAP. No loans were restructured or modified due to declining credit quality during the six months ended June 30, 2015. Of the $2.9 million in loans reported as TDRs as of December 31, 2014, $2.4 million was paid off during the period ended June 30, 2015. No TDRs were foreclosed upon during the period ended June 30, 2015. As of June 30, 2015 and June 30, 2014, there were no commitments to lend additional funds to debtors owing receivables whose terms have been modified in a TDR. (e) Allowance for Loan Losses The adequacy of the allowance for loan losses is assessed by management at the end of each calendar quarter. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. There were no changes to the allowance for loan losses methodology during the six months ended June 30, 2015. Key components of the estimation process are as follows: (1) loans determined by management to be impaired are evaluated individually and specific allowances are determined based on the difference between the outstanding loan amount and the net realizable value of the present value of expected future cash flows or the collateral less estimated cost to sell (if collateral dependent); (2) loans not meeting the definition of impairment are segmented based on similar collateral types and evaluated on a pool basis; (3) loss rates for the segments are calculated based on historical gross charge offs (or minimum loss rates if no historical gross charge offs) over the lookback period determined to be most appropriate by management and, multiplied by the loss emergence period (LEP). The LEP is the period between when initial deterioration in the borrower’s financial capacity to the time of charge-off. The historical loss factors are then adjusted by management to reflect the current outlook for each of the following qualitative factors: · Changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments. · Changes in the experience, ability, and depth of lending management and other relevant staff. · Changes in the nature and volume of the portfolio and in the terms of loans. · Changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans. · The existence and effect of any concentrations of credit, and changes in the level of such concentrations. · Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses. The following table presents the balance in the recorded investment in loans by loan segment based on impairment method: Real Estate Mortgage Real Estate Multi-family Commercial and Industrial Commercial Real Estate Construction and Land Development Consumer Other Total Loans (In Thousands) June 30, 2015 Loans $ 120,208 10,399 272,783 284,653 78,473 7,052 802 774,370 Loans individually evaluated for impairment 318 - 431 - 672 27 - 1,448 Loans collectively evaluated for impairment 119,890 10,399 272,352 284,653 77,801 7,025 802 772,922 Loans acquired with deteriorated credit quality - - - - - - - - December 31, 2014 Loans $ 110,929 11,310 235,911 271,001 58,843 5,915 875 694,784 Loans individually evaluated for impairment 2,604 - 489 - 685 29 - 3,807 Loans collectively evaluated for impairment 108,325 11,310 235,422 271,001 58,158 5,886 875 690,977 Loans acquired with deteriorated credit quality - - - - - - - - Consumer loans are charged off no later than when the loan becomes 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on non-accrual or charged off at an earlier date if collection of principal or interest is considered doubtful. The following table provides a roll forward of the allowance for loan losses from December 31, 2013 to June 30, 2014 and December 31, 2014 to June 30, 2015 by loan segment: Residential Real-Estate Commercial and Industrial Commercial Real Estate Construction and Land Development Consumer Other Total (In Thousands) Balances, December 31, 2013 $ 1,368 1,995 2,754 997 61 29 7,204 Charged-off loans - - - - - - - Recovery of previously charged-off loans - - 1 11 - - 12 Provision for loan losses 373 546 490 (4 ) 33 (29 ) 1,409 Balances, June 30, 2014 $ 1,741 2,541 3,245 1,004 94 - 8,625 Balances, December 31, 2014 $ 1,244 2,402 3,131 1,675 62 4 8,518 Charged-off loans (6 ) (293 ) - - (8 ) - (307 ) Recovery of previously charged-off loans - 16 - 76 - - 92 Provision for loan losses 18 536 136 308 9 2 1,009 Balances, June 30, 2015 $ 1,256 2,661 3,267 2,059 63 6 9,312 Balances, June 30, 2015 Allowance for loans individually evaluated for impairment $ - 300 - 12 27 - 339 Allowance for loans collectively evaluated for impairment $ 1,256 2,361 3,267 2,047 36 6 8,973 Balances, December 31, 2014 Allowance for loans individually evaluated for impairment $ 130 292 - 79 29 - 530 Allowance for loans collectively evaluated for impairment $ 1,114 2,110 3,131 1,596 33 4 7,988 The following table shows the allowance allocation by loan classification for accruing and impaired loans at June 30, 2015 and December 31, 2014: Accruing Loans Impaired Loans Total Allowance for Loan Losses June 30, December 31, June 30, December 31, June 30, December 31, 2015 2014 2015 2014 2015 2014 (In Thousands) Residential real estate $ 1,256 1,114 - 130 1,256 1,244 Commercial and industrial 2,361 2,110 300 292 2,661 2,402 Commercial real estate 3,267 3,131 - - 3,267 3,131 Construction and land development 2,047 1,596 12 79 2,059 1,675 Consumer 36 33 27 29 63 62 Other 6 4 - - 6 4 $ 8,973 7,988 339 530 9,312 8,518 (f) Residential Lending At June 30, 2015, the Bank had approximately $26.4 million of mortgage loans held-for-sale compared with approximately $27.2 million at December 31, 2014. Loans held-for-sale are carried at the lower of cost or market and consist of two distinct groups, secondary market and portfolio mortgage loans held-for-sale. Secondary market loans are typically sold at or before loan closing to an investor on a loan-by-loan basis and generally settle within two weeks of loan closing. At June 30, 2015 and December 31, 2014 the Bank had $4.5 million and $4.7 million, respectively of secondary market loans. Portfolio mortgage loans held-for-sale are maintained on the Bank’s core loan accounting system and sold in pools or individually within 180 days of being classified as held-for-sale. All loan sales executed by the Bank include the transfer of servicing rights to the investor. The Bank had $21.9 million and $22.6 million of portfolio mortgage loans held-for-sale as of June 30, 2015 and December 31, 2014, respectively. In the first six months of 2015 the Bank sold $26.2 million of portfolio loans held-for-sale for a gain of $552,000. The secondary market mortgage sales are typically on a best efforts basis to investors that follow conventional government sponsored entities and the Department of Housing and Urban Development (HUD) guidelines. Generally, the investor has delegated underwriting authority to the Bank. Credit risk is generally transferred to the investors upon sale, however, the investors may have recourse rights for up to six months after the loan sale during which the Bank would be obligated to repurchase the loan if the borrower defaults during the recourse period. Also, the purchase agreements require the Bank to make certain representations and warranties regarding the existence and sufficiency of file documentation and the absence of fraud by borrowers or other third parties such as appraisers in connection with obtaining the loan. If it is determined that the loans sold were in breach of these representations or warranties, the Bank is obligated to either repurchase the loan for the unpaid principal balance and related investor fees or make the investor whole for the economic benefits of the loan. Based on information currently available, management believes that it does not have a material exposure to losses that may arise relating to borrower defaults or the representations and warranties that it has made in connection with its mortgage loan sales. At June 30, 2015, the Bank has $120.2 million of home equity and consumer mortgage loans which are secured by first or second liens on residential properties. Foreclosure activity in this portfolio has been minimal. Any foreclosures on these loans are handled by designated Bank personnel and external legal counsel, as appropriate, following established policies regarding legal and regulatory requirements. The Bank has not imposed any freezes on foreclosures. Based on information currently available, management believes that it does not have material exposure to faulty foreclosure practices. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | (4) Derivatives Financial derivatives are reported at fair value in other assets or other liabilities. The accounting for changes in fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. The Bank has entered into interest rate swaps to facilitate customer transactions and meet their financing needs. Upon entering into these instruments, the Bank also entered into offsetting positions in order to minimize risk. These swaps qualify as derivatives, but are not designated as hedging instruments. Interest rate swap contracts involve counterparties and their ability to meet contractual terms. When the fair value of a derivative instrument contract is positive, this generally indicates that the counterparty or customer owes the Bank, and results in credit risk. When the fair value of a derivative instrument contract is negative, the Bank owes the customer or counterparty and has no credit risk. A summary of interest rate swaps to facilitate customer transactions as of June 30, 2015 and December 31, 2014 is included in the following table: Notional Amount Estimated assets fair value Estimated liability fair value (In Thousands) Interest rate swap agreements: Pay fixed / Receive variable swaps – June 30, 2015 $ 18,674 132 132 Pay fixed / Receive variable swaps – December 31, 2014 12,699 573 573 As part of its activities to manage interest rate risk, the Bank entered into three delayed interest rate swap agreements in 2014 to manage exposure to future interest rate risk through modification of the Bank’s net interest sensitivity to levels deemed to be appropriate. In 2015 the Bank entered into one interest rate swap agreement designated as a cash flow hedge intended to protect against the variability of cash flows on selected LIBOR based loans. The interest rate swap hedges the interest rate risk, wherein the Bank receives a fixed rate of interest from a counterparty and pays a variable rate, based on one month LIBOR. The interest rate swap agreements were entered into to convert a portion of its forecasted variable-rate debt to a fixed rate, which is a cash flow hedge of a forecasted transaction. In 2015, the Bank terminated one of the derivative instruments with a notional value of $10.0 million for a loss of $393,000 that is carried in Accumulated Other Comprehensive Loss and will be recognized on the Consolidated Statements of Income over the original terms of the contract commencing in November 2015 and concluding May 2021. The terms of the individual contracts within the existing relationship at June 30, 2015 and December 31, 2014 is as follows: June 30, 2015 December 31, 2014 Forecasted Notional Amount Receive Rate Pay Rate Term Liabilities Unrealized Loss in Accumulated Other Comprehensive Loss Liabilities Unrealized Loss in Accumulated Other Comprehensive Loss (Dollars in Thousands) Interest Rate Swap $ - 1 month LIBOR plus 35 basis points 2.99 % Nov. 2015 - May 2021 $ - - 297 183 Interest Rate Swap 10,000 1 month LIBOR plus 35 basis points 2.98 May 2016 - May 2021 275 170 196 121 Interest Rate Swap 10,000 1 month LIBOR plus 35 basis points 3.03 March 2017 - May 2021 156 96 118 73 Interest Rate Swap 25,000 2.09% 1.50 April 2015 - April 2022 704 434 - - $ 45,000 $ 1,135 700 611 377 The cash flow hedges were determined to be fully effective during the period presented. And therefore, no amount of ineffectiveness has been included in net income. The aggregate fair value of the interest rate swap is recorded in other liabilities with changes in fair value recorded in accumulated other comprehensive (loss) income, net of tax. If a hedge was deemed to be ineffective, the amount included in accumulated other comprehensive (loss) income would be reclassified into a line item within the statement of income that impacts operating results. The hedge would no longer be considered effective if a portion of the hedge becomes ineffective, the item hedged is no longer in existence or the Bank discontinues hedge accounting. Related to the terminated hedge approximately $29,000 will be reclassified from accumulated other comprehensive (loss) income in the next twelve months. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | (5 ) Fair Value of Financial Instruments FASB ASC 820, Fair Value Measurements and Disclosures ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of the observable inputs that may be used to measure fair value. 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. The three levels of the fair value hierarchy are described below: · Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. · Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices of identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. · Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect management’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Unobservable inputs can be sensitive to changes that would cause a higher or lower fair value measurement. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities carried at fair value effective June 30, 2015 and December 31, 2014. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Financial assets and financial liabilities measured at fair value on a recurring basis include the following: (a) Securities Available-for-Sale Where quoted prices are available for identical securities in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models that use observable inputs, market spreads, and cash flows or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. In certain cases where there is limited activity or less transparency around inputs to the valuation and more complex pricing models are used, securities are classified within Level 3 of the valuation hierarchy. (b) Derivatives The carrying amount of interest rate swap agreements is based on pricing models that utilize observable market inputs. The Bank reflects these assets within Level 2 of the valuation hierarchy. For purposes of potential valuation adjustments to its derivative positions, the Bank evaluates the credit risk of its counterparties. Accordingly, the Bank has considered factors such as the likelihood of default by its counterparties, its net exposures, and remaining contractual life, among other things, in determining if any fair value adjustments related to credit risk are required. Counterparty exposure is evaluated by netting positions that are subject to master netting arrangements, as well as considering the amount of collateral securing the position. The Company reviews its counterparty exposure on a regular basis, and, when necessary, appropriate business actions are taken to adjust the exposure. The Bank also utilizes this approach to estimate its own credit risk on derivative liability positions. To date, the Bank has not realized any significant losses due to a counterparty’s inability to pay any net uncollateralized position. The change in value of derivative assets and derivative liabilities attributable to credit risk was not significant during the reported periods. The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Total Carrying Value in the Consolidated Balance Sheet Quoted Market Prices in an Active Market (Level 1) Models with Significant Observable Market Parameters (Level 2) Models with Significant Unobservable Market Parameters (Level 3) (In Thousands) June 30, 2015 Investment securities (AFS) U.S. government agencies $ 45,616 - 45,616 - State and municipal securities 45,125 - 45,125 - Corporate notes 8,696 - 8,696 - Mortgage-backed securities 113,659 - 113,659 - Total investment securities available-for-sale 213,096 - 213,096 - Derivative assets 132 - 132 - Total assets at fair value $ 213,228 - 213,228 - Derivative liabilities $ 1,268 - 1,268 - Total liabilities at fair value $ 1,268 - 1,268 - Total Carrying Value in the Consolidated Balance Sheet Quoted Market Prices in an Active Market (Level 1) Models with Significant Observable Market Parameters (Level 2) Models with Significant Unobservable Market Parameters (Level 3) (In Thousands) December 31, 2014 Investment securities (AFS) U.S. government agencies $ 14,257 - 14,257 - State and municipal securities 39,244 - 39,244 - Corporate notes 8,798 - 8,798 - Mortgage-backed securities 158,163 - 158,163 - Total investment securities available-for-sale 220,462 - 220,462 - Derivative assets 573 - 573 - Total assets at fair value $ 221,035 - 221,035 - Derivative liabilities $ 1,184 - 1,184 - Total liabilities at fair value $ 1,184 - 1,184 - The Company did not have any financial instruments classified within Level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis at June 30, 2015 and December 31, 2014 Certain financial assets and financial 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). Financial assets and liabilities measured at fair value on a nonrecurring basis include the following: (a) Impaired Loans Certain impaired loans are reported at the fair value and is measured based on the value of the underlying collateral securing the loans and is determined using several methods. The fair value of real estate is generally determined based on appraisals by qualified licensed independent appraisers less estimated selling costs. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and/or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions. As of June 30, 2015 and December 31, 2014, impaired loans with a carrying value of $1.4 million and $3.8 million, were reduced by specific valuation allowance allocations totaling $339,000 and $530,000 to a net reported fair value of $1.1 million and $3.3 million, respectively, based on collateral valuations utilizing Level 3 valuation inputs. (b) Other Real Estate Owned (OREO) Other real estate is measured and reported on the value of the collateral securing the real estate and is determined based on appraisals by qualified licensed independent appraisers less estimated selling costs. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. The Company monitors the valuation technique utilized by various pricing agencies, in the case of the investment securities to ascertain when transfers between levels have been affected. The nature of the remaining assets and liabilities is such that transfers in and out of any level are expected to be rare. For the period ended June 30, 2015, there were no transfers between levels. FASB ASC 820 requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are measured and reported at fair value on a recurring basis or nonrecurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or nonrecurring basis are discussed above. The methodologies for other financial assets and financial liabilities are discussed below: (a) Cash and due from banks, federal funds sold, and interest-bearing time deposits in banks The carrying amounts of cash, due from banks, interest-bearing time deposits in banks and federal funds sold approximate their fair values due to their short-term nature and liquidity. (b) Securities held-to-maturity Fair values for securities held-to-maturity are based on quoted market prices. If quoted market prices are not available, then fair values are estimated by using pricing models that use observable inputs, market spreads, and cash flows or quoted prices of securities with similar characteristics. (c) Loans, net The carrying values, reduced by estimated inherent credit losses, of variable rate loans and other loans with short-term characteristics are considered fair values. For fixed rate loans, the fair values are calculated by discounting scheduled future cash flows using current interest rates offered on loans with similar terms adjusted to reflect the estimated credit losses inherent in the portfolio. This method of estimating fair value does not incorporate the exit price/market participant concept of fair value prescribed by ASC 820-10 and generally produces a higher value than an exit approach/market participant approach. Fair values for impaired loans are estimated using discounted cash flow models or based on the fair value of the underlying collateral. (d) Mortgage loans held-for-sale The inputs for valuation of these assets are based on the anticipated sales prices of these loans as the loans are usually sold within a few weeks to four months of their origination. (e) Deposits, Federal funds purchased, Federal Home Loan Bank of Cincinnati advances and subordinated debt The fair values disclosed for demand deposits (e.g. interest and non-interest checking, savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e. their carrying amount). The carrying value of variable rate Federal Home Loan Bank of Cincinnati (FHLB) advances and Federal funds purchased approximate their fair values based on their short-term nature. The fair value of certificates of deposit, fixed rate advances from the FHLB and fixed rate subordinated debt are based on the discounted value of contractual cash flows, calculated using the discounted rate that equaled the interest rates offered at the valuation date for deposits of similar remaining maturities. (f) Off-balance sheet instruments The fair values of off-balance sheet financial instruments are based on fees charged to enter into similar agreements. However, commitments to extend credits do not represent a significant value to the Company until such commitments are funded. The estimated fair values of financial instruments at June 30, 2015 and December 31, 2014 were as follows: Carrying Amount Estimated Fair Value Quoted Market Prices in an Active Market (Level 1) Models with Significant Observable Market Parameters (Level 2) Models with Significant Unobservable Market Parameters (Level 3) (In Thousands) June 30, 2015 Financial assets: Cash and due from banks $ 18,361 18,361 18,361 - - Interest-bearing time deposits in banks 215 215 215 - - Securities held-to-maturity 3,802 3,869 - 3,869 - Mortgage loans held-for-sale 26,363 26,582 - 26,582 - Loans, net 764,129 768,204 - - 768,204 Financial liabilities: Deposits 851,491 780,125 - - 780,125 Federal home loan bank advances 105,300 105,453 - - 105,453 Federal funds purchased 460 460 - 460 - Subordinated debt 19,596 19,596 - - 19,596 Off-balance sheet instruments: Commitments to extend credit 213,706 - - - - Standby letters of credit 10,898 58 - - 58 Carrying Amount Estimated Fair Value Quoted Market Prices in an Active Market (Level 1) Models with Significant Observable Market Parameters (Level 2) Models with Significant Unobservable Market Parameters (Level 3) (In Thousands) December 31, 2014 Financial assets: Cash and due from banks $ 17,765 17,765 17,765 - - Interest-bearing time deposits in banks 211 211 211 - - Securities held-to-maturity 2,717 2,838 - 2,838 - Mortgage loans held-for-sale 27,237 27,463 - 27,463 - Loans, net 685,390 690,380 - - 690,380 Financial liabilities: Deposits 803,172 746,602 - - 746,602 Federal home loan bank advances 70,300 70,396 - - 70,396 Federal funds purchased 4,485 4,485 - 4,485 - Subordinated debt 19,577 19,577 - - 19,577 Off-balance sheet instruments: Commitments to extend credit 179,478 - - - - Standby letters of credit 10,074 98 - - 98 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | (6 ) Commitments and Contingent Liabilities The Bank is a party to credit related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheet. The Bank’s exposure to credit loss is represented by the contractual amount of these commitments. The Bank follows the same credit policies in making commitments as it does for on balance sheet instruments. The following financial instruments were outstanding whose contract amounts represent credit risk: June 30, December 31, 2015 2014 (In Thousands) Commitments to extend credit and unfunded commitments $ 213,706 179,478 Standby letters of credit 10,898 10,074 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Bank, is based on management’s credit evaluation of the customer. Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit are uncollateralized and usually do not contain a specified maturity date and ultimately may not be drawn upon to the total extent to which the Bank is committed. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. All letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank had $58,000 and $98,000 in off-balance sheet reserves included in other liabilities on the Consolidated Balance Sheet as of June 30, 2015 and December 31, 2014, respectively. From time to time, we are a party to various legal proceedings incident to our business. As of June 30, 2015 there are no material pending legal proceedings to which we or any of our subsidiaries is a party or of which any of our or our subsidiaries’ properties are subject. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | ( 7 ) Income Taxes The Corporation and the Bank file consolidated U.S. Federal and State of Tennessee income tax returns. Each entity provides for income taxes based on its contribution to income or loss of the consolidated group. ASC 740, Accounting for Income Taxes The Company’s effective tax rate for the three and six months ended June 30, 2015 was 31% and 32%, respectively compared with 31% for the three and six months ended June 30, 2014. The effective tax rate differs from the statutory Federal rate of 34% and Tennessee excise rate of 6.5% primarily due to investments in qualified municipal securities; company owned life insurance and certain non-deductible expenses. The year-over-year increase in the June 30, 2015 effective tax rate is due primarily to net operating loss carryforward for federal income tax purposes being fully utilized in 2014. |
Minimum Regulatory Capital Requ
Minimum Regulatory Capital Requirements | 6 Months Ended |
Jun. 30, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Minimum Regulatory Capital Requirements | (8 ) Minimum Regulatory Capital Requirements The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative criteria by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined in the regulations) to risk weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined). In July 2013, the Federal Reserve Board and the FDIC approved final rules that substantially amend the regulatory risk-based capital rules applicable to the Bank and the Company. The final rules implement the regulatory capital reforms of the Basel Committee on Banking Supervision reflected in "Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems" (Basel III) and changes required by the Dodd-Frank Act. Under these rules which became effective on January 1, 2015, the leverage and risk-based capital ratios of bank holding companies may not be lower than the leverage and risk-based capital ratios for insured depository institutions. The final rules also include new minimum risk-based capital and leverage ratios. Moreover, 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. The rules also establish a "capital conservation buffer" of 2.5% (to be phased in over three years) above the new regulatory minimum risk-based capital ratios, and result in the following minimum ratios once the capital conservation buffer is fully phased in: (i) a common equity Tier 1 risk-based capital ratio of 7.0%, (ii) a Tier 1 risk-based capital ratio of 8.5%, and (iii) a total risk-based capital ratio of 10.5%. The capital conservation buffer requirement is to be phased in beginning in January 2016 at 0.625% of risk-weighted assets and will increase each year until fully implemented in January 2019. An institution will be subject to limitations on paying dividends, engaging in share repurchases and paying discretionary bonuses if capital levels fall below minimum levels plus the buffer amounts. These limitations establish a maximum percentage of eligible retained income that could be utilized for such actions. As of June 30, 2015, management believes the Company and the Bank met all capital adequacy requirements to which they are subject. To be categorized as well capitalized, an institution must maintain minimum total risk based, Tier 1 risk based and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Company and the Bank’s category. Avenue Financial Holdings, Inc.’s and Avenue Bank’s actual capital amounts and ratios as of June 30, 2015 and December 31, 2014 are presented in the table. Actual Minimum Capital Requirement Minimum To Be Well-Capitalized Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) At June 30, 2015: Total capital to risk weighted assets Avenue Bank $ 118,887 13.03 % $ 72,987 8.0 % $ 91,234 10.0 % Avenue Financial 119,392 13.06 73,135 8.0 91,419 10.0 Tier 1 capital to risk weighted assets Avenue Bank 109,517 12.00 36,494 4.0 54,740 6.0 Avenue Financial 90,022 8.85 36,567 4.0 54,851 6.0 Tier 1 capital to average assets (*) Avenue Bank 109,517 10.41 42,095 4.0 52,619 5.0 Avenue Financial 90,022 8.55 42,110 4.0 N/A 5.0 At December 31, 2014: Total capital to risk weighted assets Avenue Bank $ 98,118 11.80 % $ 66,503 8.0 % $ 83,129 10.0 % Avenue Financial 118,118 14.00 67,505 8.0 84,381 10.0 Tier 1 capital to risk weighted assets Avenue Bank 89,600 10.78 33,252 4.0 49,877 6.0 Avenue Financial 89,600 10.62 33,752 4.0 50,628 6.0 Tier 1 capital to average assets (*) Avenue Bank 89,600 9.21 38,916 4.0 48,645 5.0 Avenue Financial 89,600 9.21 38,916 4.0 N/A 5.0 (*) Average assets for the above calculations were based on the most recent quarter. |
Capital Stock
Capital Stock | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Capital Stock | ( 9 ) Capital Stock The Corporation’s charter authorizes 10,000,000 shares of preferred stock, no par value. Shares of the preferred stock may be issued from time to time in one or more series, each such series to be so designated as to distinguish the shares from the shares of all other series and classes. The Board of Directors has the authority to divide any or all classes of preferred stock into series and to fix and determine the relative rights and preferences of the shares of any series so established. In October 2008, the Emergency Economic Stabilization Act of 2008 was enacted and the U.S. Department of the Treasury (Treasury) announced the Troubled Asset Relief Program Capital Purchase Program (CPP). On February 27, 2009, the Corporation entered into a Letter of Agreement with Treasury pursuant to which, among other things, the Corporation sold to Treasury for an aggregate purchase price of $7.4 million, 7,400 shares of Series A Preferred Stock and a warrant to purchase up to 370 shares of Series B Preferred Stock. The warrant was exercised by Treasury concurrent with the Series A Preferred Stock purchase. On September 15, 2011, the Corporation redeemed all preferred shares the Corporation originally issued to Treasury under the CPP. The Corporation paid Treasury approximately $7.8 million, which included accrued dividends. Concurrently, the Corporation entered into a Securities Purchase Agreement with Treasury, pursuant to which the Corporation issued 18,950 shares of Senior Non Cumulative Perpetual Preferred Stock, Series C (Preferred Stock), having a liquidation amount per share of $1,000, for a total purchase price of $18,950,000. The Corporation contributed $18.14 million of the purchase price to its wholly owned subsidiary, the Bank. On March 2, 2015, the Corporation redeemed all 18,950 outstanding shares of the Preferred Stock at a redemption price of $1,000 per share, plus any unpaid and accrued dividends. Dividends . The Corporation has not paid any cash dividends on our common stock since inception; however, our growth plans may provide the opportunity for us to consider a dividend program at some point in the future. Pursuant to Tennessee banking law, the Bank may not, without the prior consent of the Tennessee Department of Financial Institutions, pay any dividends to the Corporation in a calendar year in excess of the total of the Company’s net profits for that year plus the retained profits for the preceding two years. Our future dividend policy will depend on earnings, capital position, financial condition and other factors, including new regulatory capital requirements, as they become known to us. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | (10) Other Comprehensive Income (Loss) Significant amounts reclassified out of other comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014 are as follows: Amounts Reclassified From Three Months Ended Six Months Ended Accumulated Other Comprehensive Affected Line Items in the June 30, June 30, Income (Loss) Consolidated Statements of Income 2015 2014 2015 2014 (In Thousands) Gains (loss) realized on sale of investment securities Net gain (loss) on sale of available-for-sale securities $ 215 (2 ) 215 12 Tax effect Income tax expense (benefit) (82 ) 1 (82 ) (5 ) Total reclassifications out of accumulated other comprehensive income (loss) $ 133 (1 ) 133 7 The activity in accumulated other comprehensive income (loss) for the six months ended at June 30, 2015 and 2014 is as follows 2015 2014 Unrealized Gains (Losses) on Securities Available-for-Sale Unrealized Gains (Losses) on Cash Flow Hedges Total Unrealized Gains (Losses) on Securities Available-for-Sale Unrealized Gains (Losses) on Cash Flow Hedges Total (In Thousands) Beginning Balance, December 31, $ (2,108 ) (377 ) (2,485 ) (5,719 ) - (5,719 ) Other comprehensive income (loss) before reclassifications (379 ) (566 ) (945 ) 3,097 (55 ) 3,042 Amounts reclassified from accumulated other comprehensive income 133 - 133 7 - 7 Period Change (246 ) (566 ) (812 ) 3,104 (55 ) 3,049 Ending Balance, June 30, $ (2,354 ) (943 ) (3,297 ) (2,615 ) (55 ) (2,670 ) |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Accounting Policies | (a) Accounting Policies The accounting principles followed and the methods of applying those principles conform with accounting principles generally accepted in the United States of America and to general practices in the banking industry. The significant accounting policies applicable to Avenue Financial Holdings, Inc. (the Corporation) and its wholly owned subsidiary, Avenue Bank (the Bank) (collectively, the Company) are summarized as follows. |
Nature of Operations | (b) Nature of Operations The Company provides a variety of financial services to individuals and middle market businesses through its offices in middle Tennessee. Its primary deposit products are checking, savings, money market and term certificate accounts and its primary lending products are residential real estate, commercial and industrial, commercial real estate, construction and consumer loans. |
Basis of Presentation | (c) Basis of Presentation The consolidated financial statements include the accounts of the Corporation and the Bank. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of only normal recurring accruals) necessary for fair representation have been included. The results of operations and other data for the three and six months ended June 30, 2015, are not necessarily indicative of results that may be expected for the entire fiscal year ending December 31, 2015. The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles. Accordingly, the accompanying unaudited consolidated financial statements should be read in conjunction with the Corporation’s consolidated financial statements and related notes appearing in the 2014 Annual Report previously filed on Form 10-K. The consolidated balance sheet of the Company as of December 31, 2014 has been derived from the audited consolidated balance sheet of the Company as of that date. |
Use of Estimates | (d) Use of Estimates In preparing consolidated financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and 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 the determination of the allowance for loan losses and the valuation of deferred tax assets, other real estate owned, and investment securities including other-than-temporary impairment. All interest accrued but not collected for loans that are placed on non-accrual or charged off is reversed against interest income. The payments received on these loans are applied to the principal balance until the loan qualifies for return to accrual status. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current with on time payments for six consecutive months and future payments are reasonably assured. |
Recent Accounting Pronouncements | (e) Recent Accounting Pronouncements In April 2015, the FASB issued Accounting Standards Update (ASU) 2015-03, Simplifying the Presentation of Debt Issuance Costs, |
Income Per Common Share | (f) Income Per Common Share Basic net income per common share available to common stockholders is computed by dividing net income available to common stockholders by the weighted average common shares outstanding for the period. Diluted net income per common share available to common stockholders excludes any common stock options or restricted share awards agreements whose exercise would be antidilutive. Typically the difference between basic and diluted weighted average shares outstanding is attributable to common stock options and restricted share awards. For the three and six months ended June 30, 2014, approximately 286,000, respectively of antidilutive stock options were excluded from the diluted earnings per common share calculation under the treasury stock method as the strike price for an option was above the fair market value of a common share. There were no antidilutive stock options at for the three and six months ended June 30, 2015. The following is a summary of the basic and diluted earnings per common share calculation for each of the three and six months ended June 30, 2015 and 2014: At or for the Three Months Ended At or for the Six Months Ended June 30, June 30, 2015 2014 2015 2014 Basic earnings per share calculation: Numerator - Net income available to common stockholders $ 1,585,328 1,186,676 3,010,508 1,810,309 Denominator – Weighted average common shares outstanding 10,064,840 8,487,516 9,694,135 8,484,016 Basic net income per common share available to common stockholders $ 0.16 0.14 0.31 0.21 Diluted earnings per share calculation: Numerator - Net income available to common stockholders 1,585,328 1,186,676 3,010,508 1,810,309 Denominator – Average common shares outstanding 10,064,840 8,487,516 9,694,135 8,484,016 Average diluted common shares outstanding 96,327 - 100,526 - Weighted average common shares outstanding 10,161,167 8,487,516 9,794,661 8,484,016 Diluted net income per common share available to common stockholders $ 0.16 0.14 0.31 0.21 |
Cash Flow Information | ( g ) Cash Flow Information Supplemental cash flow information addressing certain cash and noncash transactions for each of the six months ended June 30, 2015 and 2014 was as follows: Six Months Ended June 30, 2015 2014 Supplemental cash flow information: Cash paid for interest $ 2,220,514 1,884,171 Cash paid for income taxes 1,450,000 500,000 Trade date securities payable 929,000 - |
Reclassifications | ( h ) Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Basic and Diluted Earnings Per Common Share | The following is a summary of the basic and diluted earnings per common share calculation for each of the three and six months ended June 30, 2015 and 2014: At or for the Three Months Ended At or for the Six Months Ended June 30, June 30, 2015 2014 2015 2014 Basic earnings per share calculation: Numerator - Net income available to common stockholders $ 1,585,328 1,186,676 3,010,508 1,810,309 Denominator – Weighted average common shares outstanding 10,064,840 8,487,516 9,694,135 8,484,016 Basic net income per common share available to common stockholders $ 0.16 0.14 0.31 0.21 Diluted earnings per share calculation: Numerator - Net income available to common stockholders 1,585,328 1,186,676 3,010,508 1,810,309 Denominator – Average common shares outstanding 10,064,840 8,487,516 9,694,135 8,484,016 Average diluted common shares outstanding 96,327 - 100,526 - Weighted average common shares outstanding 10,161,167 8,487,516 9,794,661 8,484,016 Diluted net income per common share available to common stockholders $ 0.16 0.14 0.31 0.21 |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information addressing certain cash and noncash transactions for each of the six months ended June 30, 2015 and 2014 was as follows: Six Months Ended June 30, 2015 2014 Supplemental cash flow information: Cash paid for interest $ 2,220,514 1,884,171 Cash paid for income taxes 1,450,000 500,000 Trade date securities payable 929,000 - |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Value of Securities Available-for-Sale and Held-to-Maturity | The amortized cost and fair value of securities available-for-sale and held-to-maturity at June 30, 2015 and December 31, 2014 are summarized as follows: June 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In Thousands) Securities available-for-sale: U.S. government agency securities $ 46,315 25 724 45,616 State and municipal securities 44,909 495 279 45,125 Corporate notes 8,718 23 45 8,696 Mortgage-backed securities 114,944 466 1,751 113,659 $ 214,886 1,009 2,799 213,096 Securities held-to-maturity: State and municipal securities $ 2,712 85 - 2,797 Mortgage-backed securities 1,090 - 18 1,072 $ 3,802 85 18 3,869 December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In Thousands) Securities available-for-sale: U.S. government agency securities $ 14,492 5 240 14,257 State and municipal securities 38,688 646 90 39,244 Corporate notes 8,817 17 36 8,798 Mortgage-backed securities 159,530 799 2,166 158,163 $ 221,527 1,467 2,532 220,462 Securities held-to-maturity: State and municipal securities $ 2,717 121 - 2,838 $ 2,717 121 - 2,838 |
Schedule of Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity | The amortized cost and estimated fair value of securities at June 30, 2015, by contractual maturity, are shown below: Available-for-sale Held-to-maturity Amortized Cost Fair Value Amortized Cost Fair Value (In Thousands) Due in one year or less $ 4,890 4,909 - - Due in one year to five years 31,865 31,892 - - Due in five years to ten years 38,715 38,689 1,507 1,549 Due after ten years 24,472 23,947 1,205 1,248 Mortgage-backed securities 114,944 113,659 1,090 1,072 $ 214,886 213,096 3,802 3,869 |
Schedule of Unrealized Losses of Securities Available-for-Sale and Held-to-Maturity | Securities available-for-sale and held-for-maturity with unrealized losses as of June 30, 2015 and December 31, 2014, and the length of time they have been in continuous loss positions were as follows: Investments with an Unrealized Loss of less than 12 months Investments with an Unrealized Loss 12 months or longer Total Investments with an Unrealized Loss Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses (In Thousands) As of June 30, 2015 U.S. government agencies $ 35,081 (623 ) 4,899 (101 ) 39,980 (724 ) State and municipal securities 14,141 (212 ) 1,939 (67 ) 16,080 (279 ) Corporate notes 4,478 (45 ) - - 4,478 (45 ) Mortgage-backed securities 31,436 (330 ) 59,532 (1,439 ) 90,968 (1,769 ) Total temporarily impaired $ 85,136 (1,210 ) 66,370 (1,607 ) 151,506 (2,817 ) As of December 31, 2014 U.S. government agencies $ 2,494 (5 ) 10,759 (235 ) 13,253 (240 ) State and municipal securities 4,369 (19 ) 2,963 (71 ) 7,332 (90 ) Corporate notes 2,222 (4 ) 4,553 (32 ) 6,775 (36 ) Mortgage-backed securities 4,891 (21 ) 93,517 (2,145 ) 98,408 (2,166 ) Total temporarily impaired $ 13,976 (49 ) 111,792 (2,483 ) 125,768 (2,532 ) |
Loans and Allowance for Loan 22
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Loans And Leases Receivable Disclosure [Abstract] | |
Summary of Loans Outstanding by Segment and Class | The following table summarizes the balance of loans outstanding by segment and class as of June 30, 2015 and December 31, 2014: June 30, 2015 December 31, 2014 (In Thousands) Residential real estate: Mortgage $ 120,208 110,929 Multi-family 10,399 11,310 Commercial and industrial 272,783 235,911 Commercial real estate 284,653 271,001 Construction and land development 78,473 58,843 Consumer 7,052 5,915 Other 802 875 Total loans 774,370 694,784 Net deferred loan origination costs and fees (929 ) (876 ) Less allowance for loan losses (9,312 ) (8,518 ) Net loans $ 764,129 685,390 |
Summary of Loan Balances by Segment as well as Risk Rating Category | The following tables present the loan balances by segment as well as risk rating category as of June 30, 2015 and December 31, 2014: Performing Loans Pass Special Mention Substandard Total Performing Total Impaired Loans (1) Total Loans (In Thousands) June 30, 2015 Residential real estate: Mortgage $ 119,669 - 221 119,890 318 120,208 Multi-family 10,399 - - 10,399 - 10,399 Commercial and industrial 272,145 - 207 272,352 431 272,783 Commercial real estate 281,330 - 3,323 284,653 - 284,653 Construction and land development 77,801 - - 77,801 672 78,473 Consumer 7,025 - - 7,025 27 7,052 Other 802 - - 802 - 802 $ 769,171 - 3,751 772,922 1,448 774,370 Performing Loans Pass Special Mention Substandard Total Performing Total Impaired Loans (1) Total Loans (In Thousands) December 31, 2014 Residential real estate: Mortgage $ 108,325 - - 108,325 2,604 110,929 Multi-family 11,310 - - 11,310 - 11,310 Commercial and industrial 235,208 - 214 235,422 489 235,911 Commercial real estate 267,567 - 3,434 271,001 - 271,001 Construction and land development 58,158 - - 58,158 685 58,843 Consumer 5,886 - - 5,886 29 5,915 Other 875 - - 875 - 875 $ 687,329 - 3,648 690,977 3,807 694,784 (1) (2) |
Summary of Recorded Investment on the Balance Sheet and the Unpaid Principal Balance | Additional information on the Bank’s impaired loans that were evaluated for specific loss allowance as of June 30, 2015 and December 31, 2014 including the recorded investment on the balance sheet and the unpaid principal balance is shown below: Six Months Ended At June 30, 2015 June 30, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) (In Thousands) Impaired loans with no recorded allowance: Residential real estate: Mortgage $ 318 333 - 321 - Commercial and industrial 131 250 - 190 - Construction and land development 444 444 - 464 9 Total 893 1,027 - 975 9 Impaired loans with a recorded allowance: Residential real estate: Mortgage - - - - - Commercial and industrial 300 300 300 300 - Construction and land development 228 228 12 232 5 Consumer 27 27 27 29 - Total 555 555 339 561 5 Total impaired loans $ 1,448 1,582 339 1,536 14 For the year ended At December 31, 2014 December 31, 2014 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) (In Thousands) Impaired loans with no recorded allowance: Commercial and industrial $ 172 292 - 235 - Total 172 292 - 235 - Impaired loans with a recorded allowance: Residential real estate: Mortgage 2,604 2,619 130 2,629 100 Commercial and industrial 317 320 292 320 - Construction and land development 685 685 79 713 29 Consumer 29 29 29 30 - Total 3,635 3,653 530 3,692 129 Total impaired loans $ 3,807 3,945 530 3,927 129 (1) |
Summary of Loan Segment Allocated Between Performing and Impaired Status | The tables below present past due balances at June 30, 2015 and December 31, 2014 and by loan segment allocated between performing and impaired status: 30-89 days past due and performing 90 days or more past due and performing Total past due and performing Current and performing Impaired (1) Total Loans (In Thousands) June 30, 2015 Residential real estate: Mortgage $ - - - 119,890 318 120,208 Multi-family - - - 10,399 - 10,399 Commercial and industrial - - - 272,352 431 272,783 Commercial real estate - - - 284,653 - 284,653 Construction and land development - - - 77,801 672 78,473 Consumer - - - 7,025 27 7,052 Other - - - 802 - 802 $ - - - 772,922 1,448 774,370 30-89 days past due and performing 90 days or more past due and performing Total past due and performing Current and performing Impaired (2) Total Loans (In Thousands) December 31, 2014 Residential real estate: Mortgage $ - - - 108,325 2,604 110,929 Multi-family - - - 11,310 - 11,310 Commercial and industrial - - - 235,422 489 235,911 Commercial real estate - - - 271,001 - 271,001 Construction and land development - - - 58,158 685 58,843 Consumer 8 - 8 5,878 29 5,915 Other - - - 875 - 875 $ 8 - 8 690,969 3,807 694,784 (1) (2) |
Summary of Recorded Investment Loan Segment Based on Impaired Method | The following table presents the balance in the recorded investment in loans by loan segment based on impairment method: Real Estate Mortgage Real Estate Multi-family Commercial and Industrial Commercial Real Estate Construction and Land Development Consumer Other Total Loans (In Thousands) June 30, 2015 Loans $ 120,208 10,399 272,783 284,653 78,473 7,052 802 774,370 Loans individually evaluated for impairment 318 - 431 - 672 27 - 1,448 Loans collectively evaluated for impairment 119,890 10,399 272,352 284,653 77,801 7,025 802 772,922 Loans acquired with deteriorated credit quality - - - - - - - - December 31, 2014 Loans $ 110,929 11,310 235,911 271,001 58,843 5,915 875 694,784 Loans individually evaluated for impairment 2,604 - 489 - 685 29 - 3,807 Loans collectively evaluated for impairment 108,325 11,310 235,422 271,001 58,158 5,886 875 690,977 Loans acquired with deteriorated credit quality - - - - - - - - |
Summary of Roll Forward of Allowance for Loan Losses | Consumer loans are charged off no later than when the loan becomes 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on non-accrual or charged off at an earlier date if collection of principal or interest is considered doubtful. The following table provides a roll forward of the allowance for loan losses from December 31, 2013 to June 30, 2014 and December 31, 2014 to June 30, 2015 by loan segment: Residential Real-Estate Commercial and Industrial Commercial Real Estate Construction and Land Development Consumer Other Total (In Thousands) Balances, December 31, 2013 $ 1,368 1,995 2,754 997 61 29 7,204 Charged-off loans - - - - - - - Recovery of previously charged-off loans - - 1 11 - - 12 Provision for loan losses 373 546 490 (4 ) 33 (29 ) 1,409 Balances, June 30, 2014 $ 1,741 2,541 3,245 1,004 94 - 8,625 Balances, December 31, 2014 $ 1,244 2,402 3,131 1,675 62 4 8,518 Charged-off loans (6 ) (293 ) - - (8 ) - (307 ) Recovery of previously charged-off loans - 16 - 76 - - 92 Provision for loan losses 18 536 136 308 9 2 1,009 Balances, June 30, 2015 $ 1,256 2,661 3,267 2,059 63 6 9,312 Balances, June 30, 2015 Allowance for loans individually evaluated for impairment $ - 300 - 12 27 - 339 Allowance for loans collectively evaluated for impairment $ 1,256 2,361 3,267 2,047 36 6 8,973 Balances, December 31, 2014 Allowance for loans individually evaluated for impairment $ 130 292 - 79 29 - 530 Allowance for loans collectively evaluated for impairment $ 1,114 2,110 3,131 1,596 33 4 7,988 |
Summary of Allowance Allocation by Loan Classification for Accruing and Impaired | The following table shows the allowance allocation by loan classification for accruing and impaired loans at June 30, 2015 and December 31, 2014: Accruing Loans Impaired Loans Total Allowance for Loan Losses June 30, December 31, June 30, December 31, June 30, December 31, 2015 2014 2015 2014 2015 2014 (In Thousands) Residential real estate $ 1,256 1,114 - 130 1,256 1,244 Commercial and industrial 2,361 2,110 300 292 2,661 2,402 Commercial real estate 3,267 3,131 - - 3,267 3,131 Construction and land development 2,047 1,596 12 79 2,059 1,675 Consumer 36 33 27 29 63 62 Other 6 4 - - 6 4 $ 8,973 7,988 339 530 9,312 8,518 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Interest Rate Swaps to Facilitate Customer Transactions | A summary of interest rate swaps to facilitate customer transactions as of June 30, 2015 and December 31, 2014 is included in the following table: Notional Amount Estimated assets fair value Estimated liability fair value (In Thousands) Interest rate swap agreements: Pay fixed / Receive variable swaps – June 30, 2015 $ 18,674 132 132 Pay fixed / Receive variable swaps – December 31, 2014 12,699 573 573 |
Schedule of Individual Contracts Within the Existing Relationship | The terms of the individual contracts within the existing relationship at June 30, 2015 and December 31, 2014 is as follows: June 30, 2015 December 31, 2014 Forecasted Notional Amount Receive Rate Pay Rate Term Liabilities Unrealized Loss in Accumulated Other Comprehensive Loss Liabilities Unrealized Loss in Accumulated Other Comprehensive Loss (Dollars in Thousands) Interest Rate Swap $ - 1 month LIBOR plus 35 basis points 2.99 % Nov. 2015 - May 2021 $ - - 297 183 Interest Rate Swap 10,000 1 month LIBOR plus 35 basis points 2.98 May 2016 - May 2021 275 170 196 121 Interest Rate Swap 10,000 1 month LIBOR plus 35 basis points 3.03 March 2017 - May 2021 156 96 118 73 Interest Rate Swap 25,000 2.09% 1.50 April 2015 - April 2022 704 434 - - $ 45,000 $ 1,135 700 611 377 |
Fair Value of Financial Instr24
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Total Carrying Value in the Consolidated Balance Sheet Quoted Market Prices in an Active Market (Level 1) Models with Significant Observable Market Parameters (Level 2) Models with Significant Unobservable Market Parameters (Level 3) (In Thousands) June 30, 2015 Investment securities (AFS) U.S. government agencies $ 45,616 - 45,616 - State and municipal securities 45,125 - 45,125 - Corporate notes 8,696 - 8,696 - Mortgage-backed securities 113,659 - 113,659 - Total investment securities available-for-sale 213,096 - 213,096 - Derivative assets 132 - 132 - Total assets at fair value $ 213,228 - 213,228 - Derivative liabilities $ 1,268 - 1,268 - Total liabilities at fair value $ 1,268 - 1,268 - Total Carrying Value in the Consolidated Balance Sheet Quoted Market Prices in an Active Market (Level 1) Models with Significant Observable Market Parameters (Level 2) Models with Significant Unobservable Market Parameters (Level 3) (In Thousands) December 31, 2014 Investment securities (AFS) U.S. government agencies $ 14,257 - 14,257 - State and municipal securities 39,244 - 39,244 - Corporate notes 8,798 - 8,798 - Mortgage-backed securities 158,163 - 158,163 - Total investment securities available-for-sale 220,462 - 220,462 - Derivative assets 573 - 573 - Total assets at fair value $ 221,035 - 221,035 - Derivative liabilities $ 1,184 - 1,184 - Total liabilities at fair value $ 1,184 - 1,184 - |
Summary of Estimated Fair Values of Financial Instruments | The estimated fair values of financial instruments at June 30, 2015 and December 31, 2014 were as follows: Carrying Amount Estimated Fair Value Quoted Market Prices in an Active Market (Level 1) Models with Significant Observable Market Parameters (Level 2) Models with Significant Unobservable Market Parameters (Level 3) (In Thousands) June 30, 2015 Financial assets: Cash and due from banks $ 18,361 18,361 18,361 - - Interest-bearing time deposits in banks 215 215 215 - - Securities held-to-maturity 3,802 3,869 - 3,869 - Mortgage loans held-for-sale 26,363 26,582 - 26,582 - Loans, net 764,129 768,204 - - 768,204 Financial liabilities: Deposits 851,491 780,125 - - 780,125 Federal home loan bank advances 105,300 105,453 - - 105,453 Federal funds purchased 460 460 - 460 - Subordinated debt 19,596 19,596 - - 19,596 Off-balance sheet instruments: Commitments to extend credit 213,706 - - - - Standby letters of credit 10,898 58 - - 58 Carrying Amount Estimated Fair Value Quoted Market Prices in an Active Market (Level 1) Models with Significant Observable Market Parameters (Level 2) Models with Significant Unobservable Market Parameters (Level 3) (In Thousands) December 31, 2014 Financial assets: Cash and due from banks $ 17,765 17,765 17,765 - - Interest-bearing time deposits in banks 211 211 211 - - Securities held-to-maturity 2,717 2,838 - 2,838 - Mortgage loans held-for-sale 27,237 27,463 - 27,463 - Loans, net 685,390 690,380 - - 690,380 Financial liabilities: Deposits 803,172 746,602 - - 746,602 Federal home loan bank advances 70,300 70,396 - - 70,396 Federal funds purchased 4,485 4,485 - 4,485 - Subordinated debt 19,577 19,577 - - 19,577 Off-balance sheet instruments: Commitments to extend credit 179,478 - - - - Standby letters of credit 10,074 98 - - 98 |
Commitments and Contingent Li25
Commitments and Contingent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments Outstanding Contract Credit Risk | The following financial instruments were outstanding whose contract amounts represent credit risk: June 30, December 31, 2015 2014 (In Thousands) Commitments to extend credit and unfunded commitments $ 213,706 179,478 Standby letters of credit 10,898 10,074 |
Minimum Regulatory Capital Re26
Minimum Regulatory Capital Requirements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Actual Capital Amounts and Ratios | Avenue Financial Holdings, Inc.’s and Avenue Bank’s actual capital amounts and ratios as of June 30, 2015 and December 31, 2014 are presented in the table. Actual Minimum Capital Requirement Minimum To Be Well-Capitalized Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) At June 30, 2015: Total capital to risk weighted assets Avenue Bank $ 118,887 13.03 % $ 72,987 8.0 % $ 91,234 10.0 % Avenue Financial 119,392 13.06 73,135 8.0 91,419 10.0 Tier 1 capital to risk weighted assets Avenue Bank 109,517 12.00 36,494 4.0 54,740 6.0 Avenue Financial 90,022 8.85 36,567 4.0 54,851 6.0 Tier 1 capital to average assets (*) Avenue Bank 109,517 10.41 42,095 4.0 52,619 5.0 Avenue Financial 90,022 8.55 42,110 4.0 N/A 5.0 At December 31, 2014: Total capital to risk weighted assets Avenue Bank $ 98,118 11.80 % $ 66,503 8.0 % $ 83,129 10.0 % Avenue Financial 118,118 14.00 67,505 8.0 84,381 10.0 Tier 1 capital to risk weighted assets Avenue Bank 89,600 10.78 33,252 4.0 49,877 6.0 Avenue Financial 89,600 10.62 33,752 4.0 50,628 6.0 Tier 1 capital to average assets (*) Avenue Bank 89,600 9.21 38,916 4.0 48,645 5.0 Avenue Financial 89,600 9.21 38,916 4.0 N/A 5.0 (*) Average assets for the above calculations were based on the most recent quarter. |
Other Comprehensive Income (L27
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Schedule of Amounts Reclassified Out of Other Comprehensive Income (Loss) | Significant amounts reclassified out of other comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014 are as follows: Amounts Reclassified From Three Months Ended Six Months Ended Accumulated Other Comprehensive Affected Line Items in the June 30, June 30, Income (Loss) Consolidated Statements of Income 2015 2014 2015 2014 (In Thousands) Gains (loss) realized on sale of investment securities Net gain (loss) on sale of available-for-sale securities $ 215 (2 ) 215 12 Tax effect Income tax expense (benefit) (82 ) 1 (82 ) (5 ) Total reclassifications out of accumulated other comprehensive income (loss) $ 133 (1 ) 133 7 |
Schedule of Activity in Accumulated Other Comprehensive Income (Loss) | The activity in accumulated other comprehensive income (loss) for the six months ended at June 30, 2015 and 2014 is as follows 2015 2014 Unrealized Gains (Losses) on Securities Available-for-Sale Unrealized Gains (Losses) on Cash Flow Hedges Total Unrealized Gains (Losses) on Securities Available-for-Sale Unrealized Gains (Losses) on Cash Flow Hedges Total (In Thousands) Beginning Balance, December 31, $ (2,108 ) (377 ) (2,485 ) (5,719 ) - (5,719 ) Other comprehensive income (loss) before reclassifications (379 ) (566 ) (945 ) 3,097 (55 ) 3,042 Amounts reclassified from accumulated other comprehensive income 133 - 133 7 - 7 Period Change (246 ) (566 ) (812 ) 3,104 (55 ) 3,049 Ending Balance, June 30, $ (2,354 ) (943 ) (3,297 ) (2,615 ) (55 ) (2,670 ) |
Summary of Significant Accoun28
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accounting Policies [Abstract] | ||||
Debt issuance cost | $ 404,000 | |||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 286,000 | 0 | 286,000 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies - Summary of Basic and Diluted Earnings Per Common Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Basic earnings per share calculation: | ||||
Numerator - Net income available to common stockholders | $ 1,585,328 | $ 1,186,676 | $ 3,010,508 | $ 1,810,309 |
Denominator – Weighted average common shares outstanding | 10,064,840 | 8,487,516 | 9,694,135 | 8,484,016 |
Basic net income per common share available to common stockholders | $ 0.16 | $ 0.14 | $ 0.31 | $ 0.21 |
Diluted earnings per share calculation: | ||||
Numerator - Net income available to common stockholders | $ 1,585,328 | $ 1,186,676 | $ 3,010,508 | $ 1,810,309 |
Denominator – Weighted average common shares outstanding | 10,064,840 | 8,487,516 | 9,694,135 | 8,484,016 |
Average diluted common shares outstanding | 96,327 | 100,526 | ||
Weighted average common shares outstanding | 10,161,167 | 8,487,516 | 9,794,661 | 8,484,016 |
Diluted net income per common share available to common stockholders | $ 0.16 | $ 0.14 | $ 0.31 | $ 0.21 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Schedule of Supplemental Cash Flow Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Supplemental cash flow information: | ||
Cash paid for interest | $ 2,220,514 | $ 1,884,171 |
Cash paid for income taxes | 1,450,000 | $ 500,000 |
Trade date securities payable | $ 929,000 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Fair Value of Securities Available-for-Sale and Held-to-Maturity (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Securities available-for-sale: | ||
Available for Sale, Amortized Cost | $ 214,886,000 | $ 221,527,000 |
Available for Sale, Gross Unrealized Gains | 1,009,000 | 1,467,000 |
Available for Sale Gross Unrealized Losses | 2,799,000 | 2,532,000 |
Securities available-for-sale, at fair value | 213,095,723 | 220,461,939 |
Securities held-to-maturity: | ||
Held to Maturity, Amortized Cost | 3,802,000 | 2,717,000 |
Held to Maturity, Gross Unrealized Gains | 85,000 | 121,000 |
Held to Maturity, Gross Unrealized Losses | 18,000 | |
Held-to-maturity securities, fair value | 3,869,505 | 2,837,721 |
U.S. Government Agencies Securities | ||
Securities available-for-sale: | ||
Available for Sale, Amortized Cost | 46,315,000 | 14,492,000 |
Available for Sale, Gross Unrealized Gains | 25,000 | 5,000 |
Available for Sale Gross Unrealized Losses | 724,000 | 240,000 |
Securities available-for-sale, at fair value | 45,616,000 | 14,257,000 |
State and Municipal Securities | ||
Securities available-for-sale: | ||
Available for Sale, Amortized Cost | 44,909,000 | 38,688,000 |
Available for Sale, Gross Unrealized Gains | 495,000 | 646,000 |
Available for Sale Gross Unrealized Losses | 279,000 | 90,000 |
Securities available-for-sale, at fair value | 45,125,000 | 39,244,000 |
Securities held-to-maturity: | ||
Held to Maturity, Amortized Cost | 2,712,000 | 2,717,000 |
Held to Maturity, Gross Unrealized Gains | 85,000 | 121,000 |
Held-to-maturity securities, fair value | 2,797,000 | 2,838,000 |
Corporate Notes | ||
Securities available-for-sale: | ||
Available for Sale, Amortized Cost | 8,718,000 | 8,817,000 |
Available for Sale, Gross Unrealized Gains | 23,000 | 17,000 |
Available for Sale Gross Unrealized Losses | 45,000 | 36,000 |
Securities available-for-sale, at fair value | 8,696,000 | 8,798,000 |
Mortgage-Backed Securities | ||
Securities available-for-sale: | ||
Available for Sale, Amortized Cost | 114,944,000 | 159,530,000 |
Available for Sale, Gross Unrealized Gains | 466,000 | 799,000 |
Available for Sale Gross Unrealized Losses | 1,751,000 | 2,166,000 |
Securities available-for-sale, at fair value | 113,659,000 | $ 158,163,000 |
Securities held-to-maturity: | ||
Held to Maturity, Amortized Cost | 1,090,000 | |
Held to Maturity, Gross Unrealized Losses | 18,000 | |
Held-to-maturity securities, fair value | $ 1,072,000 |
Securities - Additional Informa
Securities - Additional Information (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Gross realized gains | $ 266,000 | $ 530,000 | |
Gross realized losses | (51,000) | (518,000) | |
Security sales | 32,200,000 | $ 40,600,000 | |
Amortized cost | 214,886,000 | $ 221,527,000 | |
Securities pledged as collateral, fair value | $ 26,600,000 | $ 24,100,000 | |
Aggregate book value exceeded stockholders' equity | 10.00% | 10.00% | |
Unrealized losses on available-for-sale and held-to-maturity securities | $ (2,817,000) | ||
Available-for-sale and held-to-maturity securities fair value | 151,506,000 | $ 125,768,000 | |
Available For Sale Securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 26,800,000 | $ 24,000,000 |
Securities - Schedule of Amor33
Securities - Schedule of Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Available-for-sale | ||
Due in one year or less, Amortized Cost | $ 4,890,000 | |
Due in one year to five years, Amortized Cost | 31,865,000 | |
Due in five years to ten years, Amortized Cost | 38,715,000 | |
Due after ten years, Amortized Cost | 24,472,000 | |
Mortgage-backed securities, Amortized Cost | 114,944,000 | |
Available-for-sale, Amortized Cost | 214,886,000 | |
Available-for-sale | ||
Due in one year or less, Fair Value | 4,909,000 | |
Due in one year to five years, Fair Value | 31,892,000 | |
Due in five years to ten years, Fair Value | 38,689,000 | |
Due after ten years, Fair Value | 23,947,000 | |
Mortgage-backed securities, Fair Value | 113,659,000 | |
Available-for-sale, Fair Value | 213,095,723 | $ 220,461,939 |
Held-to-maturity | ||
Due in five years to ten years, Amortized Cost | 1,507,000 | |
Due after ten years, Amortized Cost | 1,205,000 | |
Mortgage-backed securities, Amortized Cost | 1,090,000 | |
Held-to-maturity, Amortized Cost | 3,802,440 | 2,716,908 |
Held-to-maturity | ||
Due in five years to ten years, Fair Value | 1,549,000 | |
Due after ten years, Fair Value | 1,248,000 | |
Mortgage-backed securities, Fair Value | 1,072,000 | |
Held-to-maturity, Fair Value | $ 3,869,505 | $ 2,837,721 |
Securities - Schedule of Unreal
Securities - Schedule of Unrealized Losses of Securities Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Available-for-sale securities and held-for-maturity, continuous unrealized loss position [Abstract] | ||
Investments with an Unrealized Loss of less than 12 months, Fair value | $ 85,136 | $ 13,976 |
Investments with an Unrealized Loss of less than 12 months, Unrealized losses | (1,210) | (49) |
Investments with an Unrealized Loss 12 months or longer, Fair value | 66,370 | 111,792 |
Investments with an Unrealized Loss 12 months or longer, unrealized losses | (1,607) | (2,483) |
Total Investments with an Unrealized Loss, Fair value | 151,506 | 125,768 |
Total Investments with an Unrealized Loss, Unrealized losses | (2,817) | (2,532) |
U.S. Government Agencies Securities | ||
Available-for-sale securities and held-for-maturity, continuous unrealized loss position [Abstract] | ||
Investments with an Unrealized Loss of less than 12 months, Fair value | 35,081 | 2,494 |
Investments with an Unrealized Loss of less than 12 months, Unrealized losses | (623) | (5) |
Investments with an Unrealized Loss 12 months or longer, Fair value | 4,899 | 10,759 |
Investments with an Unrealized Loss 12 months or longer, unrealized losses | (101) | (235) |
Total Investments with an Unrealized Loss, Fair value | 39,980 | 13,253 |
Total Investments with an Unrealized Loss, Unrealized losses | (724) | (240) |
State and Municipal Securities | ||
Available-for-sale securities and held-for-maturity, continuous unrealized loss position [Abstract] | ||
Investments with an Unrealized Loss of less than 12 months, Fair value | 14,141 | 4,369 |
Investments with an Unrealized Loss of less than 12 months, Unrealized losses | (212) | (19) |
Investments with an Unrealized Loss 12 months or longer, Fair value | 1,939 | 2,963 |
Investments with an Unrealized Loss 12 months or longer, unrealized losses | (67) | (71) |
Total Investments with an Unrealized Loss, Fair value | 16,080 | 7,332 |
Total Investments with an Unrealized Loss, Unrealized losses | (279) | (90) |
Corporate Notes | ||
Available-for-sale securities and held-for-maturity, continuous unrealized loss position [Abstract] | ||
Investments with an Unrealized Loss of less than 12 months, Fair value | 4,478 | 2,222 |
Investments with an Unrealized Loss of less than 12 months, Unrealized losses | (45) | (4) |
Investments with an Unrealized Loss 12 months or longer, Fair value | 4,553 | |
Investments with an Unrealized Loss 12 months or longer, unrealized losses | (32) | |
Total Investments with an Unrealized Loss, Fair value | 4,478 | 6,775 |
Total Investments with an Unrealized Loss, Unrealized losses | (45) | (36) |
Mortgage-Backed Securities | ||
Available-for-sale securities and held-for-maturity, continuous unrealized loss position [Abstract] | ||
Investments with an Unrealized Loss of less than 12 months, Fair value | 31,436 | 4,891 |
Investments with an Unrealized Loss of less than 12 months, Unrealized losses | (330) | (21) |
Investments with an Unrealized Loss 12 months or longer, Fair value | 59,532 | 93,517 |
Investments with an Unrealized Loss 12 months or longer, unrealized losses | (1,439) | (2,145) |
Total Investments with an Unrealized Loss, Fair value | 90,968 | 98,408 |
Total Investments with an Unrealized Loss, Unrealized losses | $ (1,769) | $ (2,166) |
Loans and Allowance for Loan 35
Loans and Allowance for Loan Losses - Additional Information (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015USD ($)SegmentLoan | Jun. 30, 2014USD ($)Loan | Dec. 31, 2014USD ($) | |
Loans [Line Items] | |||
Number of loan segments | Segment | 6 | ||
Interest reserve | $ 446,000 | ||
Principal balance of impaired loans | 1,448,000 | $ 3,807,000 | |
Average balances of impaired loans | 1,536,000 | 3,927,000 | |
Loans past due 30 days | 0 | 8,000 | |
Non-accrual status | 776,000 | 695,000 | |
Accruing status interest amount | 2,000 | 72,000 | |
Troubled debt restructurings reported loans | 444,000 | $ 2,900,000 | |
Loans restructured or modified | 0 | ||
Financing receivables impaired troubled debt restructuring paid | 2,400,000 | ||
Commitment to lend additional funds | 0 | $ 0 | |
Mortgage loans held for sale | 26,400,000 | 27,200,000 | |
Portfolio loans held for sale | 26,200,000 | ||
Gain on portfolio loans held for sale | 552,000 | ||
Home equity and consumer mortgage loans | |||
Loans [Line Items] | |||
Secured debt | 120,200,000 | ||
Construction and Land Development | |||
Loans [Line Items] | |||
TDR Categorized | Loan | 1 | ||
Secondary Market | |||
Loans [Line Items] | |||
Mortgage loans held for sale | $ 4,500,000 | 4,700,000 | |
Loans saleable term | two weeks of loan closing | ||
Portfolio | |||
Loans [Line Items] | |||
Mortgage loans held for sale | $ 21,900,000 | $ 22,600,000 | |
Loans saleable term | 180 days | ||
Mortgage Loan | |||
Loans [Line Items] | |||
TDR Categorized | Loan | 1 | 1 | |
Commercial Loan | |||
Loans [Line Items] | |||
Percentage of loan portfolio | 72.00% |
Loans and Allowance for Loan 36
Loans and Allowance for Loan Losses - Summary of Loans Outstanding by Segment and Class (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total loans | $ 774,370,000 | $ 694,784,000 | ||
Net deferred loan origination costs and fees | (929,000) | (876,000) | ||
Less allowance for loan losses | (9,311,870) | (8,517,744) | $ (8,625,000) | $ (7,204,000) |
Net loans | 764,129,373 | 685,390,207 | ||
Residential Multi-family | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total loans | 10,399,000 | 11,310,000 | ||
Commercial And Industrial | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total loans | 272,783,000 | 235,911,000 | ||
Less allowance for loan losses | (2,661,000) | (2,402,000) | (2,541,000) | (1,995,000) |
Construction and Land Development | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total loans | 78,473,000 | 58,843,000 | ||
Less allowance for loan losses | (2,059,000) | (1,675,000) | (1,004,000) | (997,000) |
Residential Mortgage | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total loans | 120,208,000 | 110,929,000 | ||
Less allowance for loan losses | (1,256,000) | (1,244,000) | ||
Commercial Real Estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total loans | 284,653,000 | 271,001,000 | ||
Less allowance for loan losses | (3,267,000) | (3,131,000) | (3,245,000) | (2,754,000) |
Consumer Loan | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total loans | 7,052,000 | 5,915,000 | ||
Less allowance for loan losses | (63,000) | (62,000) | $ (94,000) | (61,000) |
Other | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total loans | 802,000 | 875,000 | ||
Less allowance for loan losses | $ (6,000) | $ (4,000) | $ (29,000) |
Loans and Allowance for Loan 37
Loans and Allowance for Loan Losses - Summary of Loan Balances by Segment as well as Risk Rating Category (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 774,370 | $ 694,784 |
Residential Multi-family | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 10,399 | 11,310 |
Commercial And Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 272,783 | 235,911 |
Construction and Land Development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 78,473 | 58,843 |
Residential Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 120,208 | 110,929 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 284,653 | 271,001 |
Consumer Loan | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 7,052 | 5,915 |
Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 802 | 875 |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 769,171 | 687,329 |
Pass | Residential Multi-family | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 10,399 | 11,310 |
Pass | Commercial And Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 272,145 | 235,208 |
Pass | Construction and Land Development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 77,801 | 58,158 |
Pass | Residential Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 119,669 | 108,325 |
Pass | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 281,330 | 267,567 |
Pass | Consumer Loan | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 7,025 | 5,886 |
Pass | Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 802 | 875 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 3,751 | 3,648 |
Substandard | Commercial And Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 207 | 214 |
Substandard | Residential Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 221 | |
Substandard | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 3,323 | 3,434 |
Total Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 772,922 | 690,977 |
Total Performing | Residential Multi-family | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 10,399 | 11,310 |
Total Performing | Commercial And Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 272,352 | 235,422 |
Total Performing | Construction and Land Development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 77,801 | 58,158 |
Total Performing | Residential Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 119,890 | 108,325 |
Total Performing | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 284,653 | 271,001 |
Total Performing | Consumer Loan | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 7,025 | 5,886 |
Total Performing | Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 802 | 875 |
Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,448 | 3,807 |
Total Impaired Loans | Commercial And Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 431 | 489 |
Total Impaired Loans | Construction and Land Development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 672 | 685 |
Total Impaired Loans | Residential Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 318 | 2,604 |
Total Impaired Loans | Consumer Loan | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 27 | $ 29 |
Loans and Allowance for Loan 38
Loans and Allowance for Loan Losses - Summary of Loan Balances by Segment as well as Risk Rating Category (Parenthetical) (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 774,370,000 | $ 694,784,000 |
Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,448,000 | 3,807,000 |
Non-accrual Status | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 776,000 | $ 695,000 |
Loans and Allowance for Loan 39
Loans and Allowance for Loan Losses - Summary of Recorded Investment on the Balance Sheet and the Unpaid Principal Balance (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | ||
Financing Receivable Impaired [Line Items] | |||
Total Impaired loans, recorded investment | $ 1,448 | $ 3,807 | |
Total Impaired loans, unpaid principal balance | 1,582 | 3,945 | |
Impaired loans with a recorded allowance, related allowance | 339 | 530 | |
Total Impaired loans, average recorded investment | 1,536 | 3,927 | |
Impaired loans with no recorded allowance, recorded investment | 893 | 172 | |
Impaired loans with no recorded allowance, unpaid principal balance | 1,027 | 292 | |
Impaired loans with no recorded allowance, average recorded investment | 975 | 235 | |
Impaired loans with no recorded allowance, interest income recognized | [1] | 9 | |
Commercial And Industrial | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with a recorded allowance, related allowance | 300 | 292 | |
Impaired loans with a recorded allowance, recorded investment | 300 | 317 | |
Impaired loans with a recorded allowance, unpaid principal balance | 300 | 320 | |
Impaired loans with a recorded allowance, average recorded investment | 300 | 320 | |
Impaired loans with no recorded allowance, recorded investment | 131 | 172 | |
Impaired loans with no recorded allowance, unpaid principal balance | 250 | 292 | |
Impaired loans with no recorded allowance, average recorded investment | 190 | 235 | |
Construction and Land Development | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with a recorded allowance, related allowance | 12 | 79 | |
Impaired loans with a recorded allowance, recorded investment | 228 | 685 | |
Impaired loans with a recorded allowance, unpaid principal balance | 228 | 685 | |
Impaired loans with a recorded allowance, average recorded investment | 232 | 713 | |
Impaired loans with a recorded allowance, interest income recognized | [1] | 5 | 29 |
Impaired loans with no recorded allowance, recorded investment | 444 | ||
Impaired loans with no recorded allowance, unpaid principal balance | 444 | ||
Impaired loans with no recorded allowance, average recorded investment | 464 | ||
Impaired loans with no recorded allowance, interest income recognized | [1] | 9 | |
Impaired Loans With Recorded Allowance | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with a recorded allowance, related allowance | 339 | 530 | |
Impaired loans with a recorded allowance, recorded investment | 555 | 3,635 | |
Impaired loans with a recorded allowance, unpaid principal balance | 555 | 3,653 | |
Impaired loans with a recorded allowance, average recorded investment | 561 | 3,692 | |
Impaired loans with a recorded allowance, interest income recognized | [1] | 5 | 129 |
Residential Mortgage | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with a recorded allowance, related allowance | 130 | ||
Impaired loans with a recorded allowance, recorded investment | 2,604 | ||
Impaired loans with a recorded allowance, unpaid principal balance | 2,619 | ||
Impaired loans with a recorded allowance, average recorded investment | 2,629 | ||
Impaired loans with a recorded allowance, interest income recognized | [1] | 100 | |
Impaired loans with no recorded allowance, recorded investment | 318 | ||
Impaired loans with no recorded allowance, unpaid principal balance | 333 | ||
Impaired loans with no recorded allowance, average recorded investment | 321 | ||
Consumer Loan | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with a recorded allowance, related allowance | 27 | 29 | |
Impaired loans with a recorded allowance, recorded investment | 27 | 29 | |
Impaired loans with a recorded allowance, unpaid principal balance | 27 | 29 | |
Impaired loans with a recorded allowance, average recorded investment | $ 29 | $ 30 | |
[1] | Includes income recognized in earnings for impaired accruing loans only. All non-accrual loans did not have any interest recognized in the six months ended June 30, 2015 and year ended December 31, 2014. |
Loans and Allowance for Loan 40
Loans and Allowance for Loan Losses - Summary of Loan Segment Allocated Between Performing and Impaired Status (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
30-89 days past due and performing | $ 8 | |||
Total past due and performing | 8 | |||
Current and performing | $ 772,922 | 690,969 | ||
Impaired | 1,448 | [1] | 3,807 | [2] |
Total Loans | 774,370 | 694,784 | ||
Residential Multi-family | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Current and performing | 10,399 | 11,310 | ||
Total Loans | 10,399 | 11,310 | ||
Commercial And Industrial | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Current and performing | 272,352 | 235,422 | ||
Impaired | 431 | [1] | 489 | [2] |
Total Loans | 272,783 | 235,911 | ||
Construction and Land Development | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Current and performing | 77,801 | 58,158 | ||
Impaired | 672 | [1] | 685 | [2] |
Total Loans | 78,473 | 58,843 | ||
Residential Mortgage | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Current and performing | 119,890 | 108,325 | ||
Impaired | 318 | [1] | 2,604 | [2] |
Total Loans | 120,208 | 110,929 | ||
Commercial Real Estate | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Current and performing | 284,653 | 271,001 | ||
Total Loans | 284,653 | 271,001 | ||
Consumer Loan | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
30-89 days past due and performing | 8 | |||
Total past due and performing | 8 | |||
Current and performing | 7,025 | 5,878 | ||
Impaired | 27 | [1] | 29 | [2] |
Total Loans | 7,052 | 5,915 | ||
Other | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Current and performing | 802 | 875 | ||
Total Loans | $ 802 | $ 875 | ||
[1] | Of the $1.4 million in impaired loans as of June 30, 2015, $672,000 were accruing and were not in past due status. | |||
[2] | Of the $3.8 million in impaired loans as of December 31, 2014, $3.1 million were accruing and were not in past due status. |
Loans and Allowance for Loan 41
Loans and Allowance for Loan Losses - Summary of Loan Segment Allocated Between Performing and Impaired Status (Parenthetical) (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Impaired | $ 1,448,000 | [1] | $ 3,807,000 | [2] |
Total loans | 774,370,000 | 694,784,000 | ||
Accruing Loans | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Total loans | $ 672,000 | $ 3,100,000 | ||
[1] | Of the $1.4 million in impaired loans as of June 30, 2015, $672,000 were accruing and were not in past due status. | |||
[2] | Of the $3.8 million in impaired loans as of December 31, 2014, $3.1 million were accruing and were not in past due status. |
Loans and Allowance for Loan 42
Loans and Allowance for Loan Losses - Summary of Recorded Investment Loan Segment Based on Impaired Method (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Loans | $ 774,370 | $ 694,784 |
Loans individually evaluated for impairment | 1,448 | 3,807 |
Loans collectively evaluated for impairment | 772,922 | 690,977 |
Residential Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Loans | 120,208 | 110,929 |
Loans individually evaluated for impairment | 318 | 2,604 |
Loans collectively evaluated for impairment | 119,890 | 108,325 |
Commercial Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Loans | 284,653 | 271,001 |
Loans collectively evaluated for impairment | 284,653 | 271,001 |
Consumer Loan | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Loans | 7,052 | 5,915 |
Loans individually evaluated for impairment | 27 | 29 |
Loans collectively evaluated for impairment | 7,025 | 5,886 |
Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Loans | 802 | 875 |
Loans collectively evaluated for impairment | 802 | 875 |
Residential Multi-family | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Loans | 10,399 | 11,310 |
Loans collectively evaluated for impairment | 10,399 | 11,310 |
Commercial And Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Loans | 272,783 | 235,911 |
Loans individually evaluated for impairment | 431 | 489 |
Loans collectively evaluated for impairment | 272,352 | 235,422 |
Construction and Land Development | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Loans | 78,473 | 58,843 |
Loans individually evaluated for impairment | 672 | 685 |
Loans collectively evaluated for impairment | $ 77,801 | $ 58,158 |
Loans and Allowance for Loan 43
Loans and Allowance for Loan Losses - Summary of Roll Forward of Allowance for Loan Losses (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balances | $ 8,517,744 | $ 7,204,000 | |
Charged-off loans | (307,000) | ||
Recovery of previously charged-off loans | 92,000 | 12,000 | |
Provision for loan losses | 1,009,000 | 1,409,000 | |
Ending Balances | 9,311,870 | 8,625,000 | |
Allowance for loans individually evaluated for impairment | 339,000 | $ 530,000 | |
Allowance for loans collectively evaluated for impairment | 8,973,000 | 7,988,000 | |
Residential Real Estate | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balances | 1,244,000 | 1,368,000 | |
Charged-off loans | (6,000) | ||
Provision for loan losses | 18,000 | 373,000 | |
Ending Balances | 1,256,000 | 1,741,000 | |
Allowance for loans individually evaluated for impairment | 130,000 | ||
Allowance for loans collectively evaluated for impairment | 1,256,000 | 1,114,000 | |
Commercial Real Estate | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balances | 3,131,000 | 2,754,000 | |
Recovery of previously charged-off loans | 1,000 | ||
Provision for loan losses | 136,000 | 490,000 | |
Ending Balances | 3,267,000 | 3,245,000 | |
Allowance for loans collectively evaluated for impairment | 3,267,000 | 3,131,000 | |
Consumer Loan | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balances | 62,000 | 61,000 | |
Charged-off loans | (8,000) | ||
Provision for loan losses | 9,000 | 33,000 | |
Ending Balances | 63,000 | 94,000 | |
Allowance for loans individually evaluated for impairment | 27,000 | 29,000 | |
Allowance for loans collectively evaluated for impairment | 36,000 | 33,000 | |
Other | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balances | 4,000 | 29,000 | |
Provision for loan losses | 2,000 | (29,000) | |
Ending Balances | 6,000 | ||
Allowance for loans collectively evaluated for impairment | 6,000 | 4,000 | |
Commercial And Industrial | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balances | 2,402,000 | 1,995,000 | |
Charged-off loans | (293,000) | ||
Recovery of previously charged-off loans | 16,000 | ||
Provision for loan losses | 536,000 | 546,000 | |
Ending Balances | 2,661,000 | 2,541,000 | |
Allowance for loans individually evaluated for impairment | 300,000 | 292,000 | |
Allowance for loans collectively evaluated for impairment | 2,361,000 | 2,110,000 | |
Construction and Land Development | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balances | 1,675,000 | 997,000 | |
Recovery of previously charged-off loans | 76,000 | 11,000 | |
Provision for loan losses | 308,000 | (4,000) | |
Ending Balances | 2,059,000 | $ 1,004,000 | |
Allowance for loans individually evaluated for impairment | 12,000 | 79,000 | |
Allowance for loans collectively evaluated for impairment | $ 2,047,000 | $ 1,596,000 |
Loans and Allowance for Loan 44
Loans and Allowance for Loan Losses - Summary of Allowance Allocation by Loan Classification for Accruing and Impaired (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Financing Receivable Impaired [Line Items] | ||||
Amount of allowance reserve for credit loss arising from accruing loans | $ 8,973,000 | $ 7,988,000 | ||
Amount of allowance reserve for credit loss arising from impaired loans | 339,000 | 530,000 | ||
Total Allowance for Loan Losses | 9,311,870 | 8,517,744 | $ 8,625,000 | $ 7,204,000 |
Commercial And Industrial | ||||
Financing Receivable Impaired [Line Items] | ||||
Amount of allowance reserve for credit loss arising from accruing loans | 2,361,000 | 2,110,000 | ||
Amount of allowance reserve for credit loss arising from impaired loans | 300,000 | 292,000 | ||
Total Allowance for Loan Losses | 2,661,000 | 2,402,000 | 2,541,000 | 1,995,000 |
Construction and Land Development | ||||
Financing Receivable Impaired [Line Items] | ||||
Amount of allowance reserve for credit loss arising from accruing loans | 2,047,000 | 1,596,000 | ||
Amount of allowance reserve for credit loss arising from impaired loans | 12,000 | 79,000 | ||
Total Allowance for Loan Losses | 2,059,000 | 1,675,000 | 1,004,000 | 997,000 |
Residential Mortgage | ||||
Financing Receivable Impaired [Line Items] | ||||
Amount of allowance reserve for credit loss arising from accruing loans | 1,256,000 | 1,114,000 | ||
Amount of allowance reserve for credit loss arising from impaired loans | 130,000 | |||
Total Allowance for Loan Losses | 1,256,000 | 1,244,000 | ||
Commercial Real Estate | ||||
Financing Receivable Impaired [Line Items] | ||||
Amount of allowance reserve for credit loss arising from accruing loans | 3,267,000 | 3,131,000 | ||
Total Allowance for Loan Losses | 3,267,000 | 3,131,000 | 3,245,000 | 2,754,000 |
Consumer Loan | ||||
Financing Receivable Impaired [Line Items] | ||||
Amount of allowance reserve for credit loss arising from accruing loans | 36,000 | 33,000 | ||
Amount of allowance reserve for credit loss arising from impaired loans | 27,000 | 29,000 | ||
Total Allowance for Loan Losses | 63,000 | 62,000 | $ 94,000 | 61,000 |
Other | ||||
Financing Receivable Impaired [Line Items] | ||||
Amount of allowance reserve for credit loss arising from accruing loans | 6,000 | 4,000 | ||
Total Allowance for Loan Losses | $ 6,000 | $ 4,000 | $ 29,000 |
Derivatives - Summary of Intere
Derivatives - Summary of Interest Rate Swaps to Facilitate Customer Transactions (Details) - Interest Rate Swap - Pay Fixed / Receive Variable Swaps - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Interest rate swap agreements [Abstract] | ||
Interest rate swap, Estimated assets fair value | $ 132,000 | $ 573,000 |
Interest rate swap, Estimated liability fair value | 132,000 | 573,000 |
Not Designated as Hedging Instrument | ||
Interest rate swap agreements [Abstract] | ||
Interest rate swap, Notional Amount | $ 18,674,000 | $ 12,699,000 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015USD ($)Agreement | Jun. 30, 2015USD ($)Agreement | Jun. 30, 2016USD ($) | Dec. 31, 2014Agreement | |
Derivative [Line Items] | ||||
Cash flow hedges, ineffectiveness amount included in net income | $ 0 | |||
Hedge termination amount will be reclassified from accumulated other comprehensive (loss) income in the next twelve months | $ 242,767 | $ 242,767 | ||
Scenario Forecast | ||||
Derivative [Line Items] | ||||
Hedge termination amount will be reclassified from accumulated other comprehensive (loss) income in the next twelve months | $ 29,000 | |||
Not Designated as Hedging Instrument | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Number of delayed interest rate swap agreements held | Agreement | 3 | 3 | 3 | |
Number of interest rate swap agreements entered | Agreement | 1 | 1 | ||
Number of interest rate swap agreements terminated | Agreement | 1 | 1 | ||
Not Designated as Hedging Instrument | Interest Rate Swap, November 2015 - May 2021 | ||||
Derivative [Line Items] | ||||
Notional value of derivative instruments | $ 10,000,000 | $ 10,000,000 | ||
Loss on derivative instruments | $ (393,000) | |||
Derivative contract commencement date | 2015-11 | |||
Derivative contract expiration date | 2021-05 |
Derivatives - Schedule of Indiv
Derivatives - Schedule of Individual Contracts Within the Existing Relationship (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||
Interest Rate Swap, Forecasted Notional Amount | $ 45,000 | |
Interest Rate Swap, Liabilities | 1,135 | $ 611 |
Interest Rate Swap, Unrealized Loss in Accumulated Other Comprehensive Loss | $ 700 | 377 |
Interest Rate Swap, November 2015 - May 2021 | ||
Derivative [Line Items] | ||
Interest Rate Swap, Receive Rate | 1 month LIBOR plus 35 basis points | |
Interest Rate Swap, Pay Rate | 2.99% | |
Interest Rate Swap, Term, commencement date | 2015-11 | |
Interest Rate Swap, Term, expiration date | 2021-05 | |
Interest Rate Swap, Liabilities | 297 | |
Interest Rate Swap, Unrealized Loss in Accumulated Other Comprehensive Loss | 183 | |
Interest Rate Swap, November 2015 - May 2021 | 1 month LIBOR plus | ||
Derivative [Line Items] | ||
Interest Rate Swap, Receive Rate, basis points | 0.35% | |
Interest Rate Swap, May 2016 - May 2021 | ||
Derivative [Line Items] | ||
Interest Rate Swap, Forecasted Notional Amount | $ 10,000 | |
Interest Rate Swap, Receive Rate | 1 month LIBOR plus 35 basis points | |
Interest Rate Swap, Pay Rate | 2.98% | |
Interest Rate Swap, Term, commencement date | 2016-05 | |
Interest Rate Swap, Term, expiration date | 2021-05 | |
Interest Rate Swap, Liabilities | $ 275 | 196 |
Interest Rate Swap, Unrealized Loss in Accumulated Other Comprehensive Loss | $ 170 | 121 |
Interest Rate Swap, May 2016 - May 2021 | 1 month LIBOR plus | ||
Derivative [Line Items] | ||
Interest Rate Swap, Receive Rate, basis points | 0.35% | |
Interest Rate Swap, March 2017 - May 2021 | ||
Derivative [Line Items] | ||
Interest Rate Swap, Forecasted Notional Amount | $ 10,000 | |
Interest Rate Swap, Receive Rate | 1 month LIBOR plus 35 basis points | |
Interest Rate Swap, Pay Rate | 3.03% | |
Interest Rate Swap, Term, commencement date | 2017-03 | |
Interest Rate Swap, Term, expiration date | 2021-05 | |
Interest Rate Swap, Liabilities | $ 156 | 118 |
Interest Rate Swap, Unrealized Loss in Accumulated Other Comprehensive Loss | $ 96 | $ 73 |
Interest Rate Swap, March 2017 - May 2021 | 1 month LIBOR plus | ||
Derivative [Line Items] | ||
Interest Rate Swap, Receive Rate, basis points | 0.35% | |
Interest Rate Swap, April 2015 - April 2022 | ||
Derivative [Line Items] | ||
Interest Rate Swap, Forecasted Notional Amount | $ 25,000 | |
Interest Rate Swap, Receive Rate | 2.09% | |
Interest Rate Swap, Pay Rate | 1.50% | |
Interest Rate Swap, Term, commencement date | 2015-04 | |
Interest Rate Swap, Term, expiration date | 2022-04 | |
Interest Rate Swap, Liabilities | $ 704 | |
Interest Rate Swap, Unrealized Loss in Accumulated Other Comprehensive Loss | $ 434 |
Fair Value of Financial Instr48
Fair Value of Financial Instruments - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Investment securities (AFS) | ||
Total investment securities available-for-sale | $ 213,096 | $ 220,462 |
Derivative assets | 132 | 573 |
Total assets at fair value | 213,228 | 221,035 |
Derivative liabilities | 1,268 | 1,184 |
Total liabilities at fair value | 1,268 | 1,184 |
U.S. Government Agencies Securities | ||
Investment securities (AFS) | ||
Total investment securities available-for-sale | 45,616 | 14,257 |
State and Municipal Securities | ||
Investment securities (AFS) | ||
Total investment securities available-for-sale | 45,125 | 39,244 |
Corporate Notes | ||
Investment securities (AFS) | ||
Total investment securities available-for-sale | 8,696 | 8,798 |
Mortgage-Backed Securities | ||
Investment securities (AFS) | ||
Total investment securities available-for-sale | 113,659 | 158,163 |
Models With Significant Observable Market Parameters (Level 2) | ||
Investment securities (AFS) | ||
Total investment securities available-for-sale | 213,096 | 220,462 |
Derivative assets | 132 | 573 |
Total assets at fair value | 213,228 | 221,035 |
Derivative liabilities | 1,268 | 1,184 |
Total liabilities at fair value | 1,268 | 1,184 |
Models With Significant Observable Market Parameters (Level 2) | U.S. Government Agencies Securities | ||
Investment securities (AFS) | ||
Total investment securities available-for-sale | 45,616 | 14,257 |
Models With Significant Observable Market Parameters (Level 2) | State and Municipal Securities | ||
Investment securities (AFS) | ||
Total investment securities available-for-sale | 45,125 | 39,244 |
Models With Significant Observable Market Parameters (Level 2) | Corporate Notes | ||
Investment securities (AFS) | ||
Total investment securities available-for-sale | 8,696 | 8,798 |
Models With Significant Observable Market Parameters (Level 2) | Mortgage-Backed Securities | ||
Investment securities (AFS) | ||
Total investment securities available-for-sale | $ 113,659 | $ 158,163 |
Fair Value of Financial Instr49
Fair Value of Financial Instruments - Additional Information (Details) | 6 Months Ended | |
Jun. 30, 2015USD ($)Security | Dec. 31, 2014USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Principal balance of impaired loans | $ 1,448,000 | $ 3,807,000 |
Amount of allowance reserve for credit loss arising from impaired loans | 339,000 | 530,000 |
Impaired loans, net fair value | 1,100,000 | 3,300,000 |
Other real estate owned | $ 2,708,961 | $ 3,375,811 |
Number of transfers made between levels | Security | 0 |
Fair Value of Financial Instr50
Fair Value of Financial Instruments - Summary of Estimated Fair Values of Financial Instruments (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Cash and due from banks | $ 18,360,874 | $ 17,765,493 |
Interest-bearing time deposits in banks | 215,203 | 210,754 |
Securities held-to-maturity | 3,802,440 | 2,716,908 |
Loans, net | 764,129,373 | 685,390,207 |
Financial liabilities: | ||
Deposits | 851,490,589 | 803,171,563 |
Federal Home Loan Bank advances | 105,300,000 | 70,300,000 |
Federal funds purchased | 460,000 | 4,485,093 |
Subordinated debt | 19,595,584 | 19,577,295 |
Quoted Market Prices in an Active Market (Level 1) | ||
Financial assets: | ||
Cash and due from banks | 18,361,000 | 17,765,000 |
Interest-bearing time deposits in banks | 215,000 | 211,000 |
Models With Significant Observable Market Parameters (Level 2) | ||
Financial assets: | ||
Securities held-to-maturity | 3,869,000 | 2,838,000 |
Mortgage loans held-for-sale | 26,582,000 | 27,463,000 |
Financial liabilities: | ||
Federal funds purchased | 460,000 | 4,485,000 |
Models With Significant Unobservable Market Parameters (Level 3) | ||
Financial assets: | ||
Loans, net | 768,204,000 | 690,380,000 |
Financial liabilities: | ||
Deposits | 780,125,000 | 746,602,000 |
Federal Home Loan Bank advances | 105,453,000 | 70,396,000 |
Subordinated debt | 19,596,000 | 19,577,000 |
Off-balance sheet instruments: | ||
Standby letters of credit | 58,000 | 98,000 |
Carrying amount | ||
Financial assets: | ||
Cash and due from banks | 18,361,000 | 17,765,000 |
Interest-bearing time deposits in banks | 215,000 | 211,000 |
Securities held-to-maturity | 3,802,000 | 2,717,000 |
Mortgage loans held-for-sale | 26,363,000 | 27,237,000 |
Loans, net | 764,129,000 | 685,390,000 |
Financial liabilities: | ||
Deposits | 851,491,000 | 803,172,000 |
Federal Home Loan Bank advances | 105,300,000 | 70,300,000 |
Federal funds purchased | 460,000 | 4,485,000 |
Subordinated debt | 19,596,000 | 19,577,000 |
Off-balance sheet instruments: | ||
Commitments to extend credit | 213,706,000 | 179,478,000 |
Standby letters of credit | 10,898,000 | 10,074,000 |
Estimated fair value | ||
Financial assets: | ||
Cash and due from banks | 18,361,000 | 17,765,000 |
Interest-bearing time deposits in banks | 215,000 | 211,000 |
Securities held-to-maturity | 3,869,000 | 2,838,000 |
Mortgage loans held-for-sale | 26,582,000 | 27,463,000 |
Loans, net | 768,204,000 | 690,380,000 |
Financial liabilities: | ||
Deposits | 780,125,000 | 746,602,000 |
Federal Home Loan Bank advances | 105,453,000 | 70,396,000 |
Federal funds purchased | 460,000 | 4,485,000 |
Subordinated debt | 19,596,000 | 19,577,000 |
Off-balance sheet instruments: | ||
Standby letters of credit | $ 58,000 | $ 98,000 |
Commitments and Contingent Li51
Commitments and Contingent Liabilities - Schedule of Financial Instruments Outstanding Contract Credit Risk (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Commitments to Extend Credit and Unfunded Commitments | ||
Loss Contingencies [Line Items] | ||
Financial instruments, outstanding contracts amounts represent credit risk | $ 213,706 | $ 179,478 |
Standby Letters of Credit | ||
Loss Contingencies [Line Items] | ||
Financial instruments, outstanding contracts amounts represent credit risk | $ 10,898 | $ 10,074 |
Commitments and Contingent Li52
Commitments and Contingent Liabilities - Additional Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Commitments And Contingent Liabilities [Line Items] | ||
Expiration period of letters of credit issued | 1 year | |
Material pending legal proceedings | $ 0 | |
Other Liabilities | ||
Commitments And Contingent Liabilities [Line Items] | ||
Off-balance sheet reserves | $ 58,000 | $ 98,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | $ 0 | $ 0 | ||
Effective tax rate | 31.00% | 31.00% | 32.00% | 31.00% |
Statutory federal tax rate | 34.00% | |||
Tennessee | ||||
Income Tax Contingency [Line Items] | ||||
Excise rate | 6.50% |
Minimum Regulatory Capital Re54
Minimum Regulatory Capital Requirements - Additional Information (Details) | 6 Months Ended | |
Jun. 30, 2015 | Jan. 01, 2016 | |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Capital conservation buffer, phase in period | 3 years | |
Common equity tier 1 risk-based capital ratio | 7.00% | |
Tier 1 risk-based capital ratio | 8.50% | |
Total risk-based capital ratio | 10.50% | |
Capital conservation buffer, phase in start year-month | 2016-01 | |
Capital conservation buffer, phase in end year-month | 2019-01 | |
Maximum | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Capital conservation buffer | 2.50% | |
Scenario Forecast | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Capital conservation buffer | 0.625% |
Minimum Regulatory Capital Re55
Minimum Regulatory Capital Requirements - Schedule of Actual Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital to risk weighted assets, Minimum Capital Requirement Ratio | 10.50% | |
Tier 1 capital to risk weighted assets, Minimum Capital Requirement Ratio | 8.50% | |
Avenue Bank | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital to risk weighted assets, Actual Amount | $ 118,887 | $ 98,118 |
Total capital to risk weighted assets, Actual Ratio | 13.03% | 11.80% |
Total capital to risk weighted assets, Minimum Capital Requirement Amount | $ 72,987 | $ 66,503 |
Total capital to risk weighted assets, Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Total capital to risk weighted assets, Minimum To Be Well-Capitalized Amount | $ 91,234 | $ 83,129 |
Total capital to risk weighted assets, Minimum To Be Well-Capitalized Ratio | 10.00% | 10.00% |
Tier 1 capital to risk weighted assets, Actual Amount | $ 109,517 | $ 89,600 |
Tier 1 capital to risk weighted assets, Actual Ratio | 12.00% | 10.78% |
Tier 1 capital to risk weighted assets, Minimum Capital Requirement Amount | $ 36,494 | $ 33,252 |
Tier 1 capital to risk weighted assets, Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Tier 1 capital to risk weighted assets, Minimum To Be Well-Capitalized Amount | $ 54,740 | $ 49,877 |
Tier 1 capital to risk weighted assets, Minimum To Be Well-Capitalized Ratio | 6.00% | 6.00% |
Tier 1 capital to average assets, Actual Amount | $ 109,517 | $ 89,600 |
Tier 1 capital to average assets, Actual Ratio | 10.41% | 9.21% |
Tier 1 capital to average assets, Minimum Capital Requirement Amount | $ 42,095 | $ 38,916 |
Tier 1 capital to average assets, Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Tier 1 capital to average assets, Minimum To Be Well-Capitalized Amount | $ 52,619 | $ 48,645 |
Tier 1 capital to average assets, Minimum To Be Well-Capitalized Ratio | 5.00% | 5.00% |
Avenue Financial | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital to risk weighted assets, Actual Amount | $ 119,392 | $ 118,118 |
Total capital to risk weighted assets, Actual Ratio | 13.06% | 14.00% |
Total capital to risk weighted assets, Minimum Capital Requirement Amount | $ 73,135 | $ 67,505 |
Total capital to risk weighted assets, Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Total capital to risk weighted assets, Minimum To Be Well-Capitalized Amount | $ 91,419 | $ 84,381 |
Total capital to risk weighted assets, Minimum To Be Well-Capitalized Ratio | 10.00% | 10.00% |
Tier 1 capital to risk weighted assets, Actual Amount | $ 90,022 | $ 89,600 |
Tier 1 capital to risk weighted assets, Actual Ratio | 8.85% | 10.62% |
Tier 1 capital to risk weighted assets, Minimum Capital Requirement Amount | $ 36,567 | $ 33,752 |
Tier 1 capital to risk weighted assets, Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Tier 1 capital to risk weighted assets, Minimum To Be Well-Capitalized Amount | $ 54,851 | $ 50,628 |
Tier 1 capital to risk weighted assets, Minimum To Be Well-Capitalized Ratio | 6.00% | 6.00% |
Tier 1 capital to average assets, Actual Amount | $ 90,022 | $ 89,600 |
Tier 1 capital to average assets, Actual Ratio | 8.55% | 9.21% |
Tier 1 capital to average assets, Minimum Capital Requirement Amount | $ 42,110 | $ 38,916 |
Tier 1 capital to average assets, Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Tier 1 capital to average assets, Minimum To Be Well-Capitalized Ratio | 5.00% | 5.00% |
Capital Stock - Additional Info
Capital Stock - Additional Information (Details) - USD ($) | Mar. 02, 2015 | Sep. 15, 2011 | Feb. 27, 2009 | Jun. 30, 2015 | Dec. 31, 2014 |
Class Of Stock [Line Items] | |||||
Payments made to treasury for redeemed shares | $ 18,950,000 | ||||
Capital Purchase Program | |||||
Class Of Stock [Line Items] | |||||
Aggregate purchase price of sale of stock | $ 7,400,000 | ||||
Payments made to treasury for redeemed shares | $ 7,800,000 | ||||
Proceeds from stock issuance to Treasury and invested in wholly-owned subsidiary Bank | $ 18,140,000 | ||||
Series C Senior Noncumulative Perpetual Preferred Stock | |||||
Class Of Stock [Line Items] | |||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |||
Preferred stock, no par value | |||||
Preferred stock, redemption date | Mar. 2, 2015 | ||||
Redemption of preferred stock, shares | 18,950 | ||||
Preferred stock redemption price | $ 1,000 | ||||
Series C Senior Noncumulative Perpetual Preferred Stock | Capital Purchase Program | |||||
Class Of Stock [Line Items] | |||||
Issuance of preferred stock | 18,950 | ||||
Preferred stock liquidation preference per share | $ 1,000 | ||||
Preferred stock liquidation purchase price | $ 18,950,000 | ||||
Series A Preferred Stock | Capital Purchase Program | |||||
Class Of Stock [Line Items] | |||||
Issuance of preferred stock | 7,400 | ||||
Series B Preferred Stock | Capital Purchase Program | |||||
Class Of Stock [Line Items] | |||||
Warrants to purchase preferred stock | 370 |
Other Comprehensive Income (L57
Other Comprehensive Income (Loss) - Schedule of Amounts Reclassified Out of Other Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gain (loss) on sale of available-for-sale securities | $ 215,201 | $ (2,138) | $ 215,201 | $ 11,917 |
Income tax expense | 697,892 | 555,000 | 1,433,892 | 842,575 |
Total reclassifications out of accumulated other comprehensive income (loss) | 132,801 | (1,319) | 132,801 | 7,354 |
Gains (loss) realized on sale of investment securities | Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gain (loss) on sale of available-for-sale securities | 215,000 | (2,000) | 215,000 | 12,000 |
Income tax expense | (82,000) | 1,000 | (82,000) | (5,000) |
Total reclassifications out of accumulated other comprehensive income (loss) | $ 133,000 | $ (1,000) | $ 133,000 | $ 7,000 |
Other Comprehensive Income (L58
Other Comprehensive Income (Loss) - Schedule of Activity in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Beginning Balance | $ (2,484,846) | $ (5,719,000) | ||
Other comprehensive income (loss) before reclassifications | (945,000) | 3,042,000 | ||
Amounts reclassified from accumulated other comprehensive income | 133,000 | 7,000 | ||
Total other comprehensive income (loss), after tax | $ (1,939,677) | $ 1,425,001 | (811,869) | 3,048,775 |
Ending Balance | (3,296,715) | (2,670,000) | (3,296,715) | (2,670,000) |
Unrealized Gains (Losses) on Securities Available-for-Sale | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Beginning Balance | (2,108,000) | (5,719,000) | ||
Other comprehensive income (loss) before reclassifications | (379,000) | 3,097,000 | ||
Amounts reclassified from accumulated other comprehensive income | 133,000 | 7,000 | ||
Total other comprehensive income (loss), after tax | (246,000) | 3,104,000 | ||
Ending Balance | (2,354,000) | (2,615,000) | (2,354,000) | (2,615,000) |
Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Beginning Balance | (377,000) | |||
Other comprehensive income (loss) before reclassifications | (566,000) | (55,000) | ||
Total other comprehensive income (loss), after tax | (566,000) | (55,000) | ||
Ending Balance | $ (943,000) | $ (55,000) | $ (943,000) | $ (55,000) |
Uncategorized Items - avnu-2015
Label | Element | Value |
Net Income Loss | us-gaap_NetIncomeLoss | $ 1,234,051 |
Net Income Loss | us-gaap_NetIncomeLoss | 1,585,328 |
Life Insurance Corporate Or Bank Owned Change In Value | us-gaap_LifeInsuranceCorporateOrBankOwnedChangeInValue | 121,556 |
Life Insurance Corporate Or Bank Owned Change In Value | us-gaap_LifeInsuranceCorporateOrBankOwnedChangeInValue | 183,513 |
Provision For Loan And Lease Losses | us-gaap_ProvisionForLoanAndLeaseLosses | 548,598 |
Provision For Loan And Lease Losses | us-gaap_ProvisionForLoanAndLeaseLosses | $ 855,095 |