Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 05, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
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 | 10,419,888 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 24,671 | $ 34,479 |
Federal funds sold | 1,220 | 675 |
Cash and cash equivalents | 25,891 | 35,154 |
Interest-bearing time deposits in banks | 216 | 216 |
Securities available-for-sale, at fair value | 163,215 | 209,574 |
Securities held-to-maturity (fair value of $11,981 and $11,964 as of March 31, 2016 and December 31, 2015, respectively) | 11,913 | 11,937 |
Mortgage loans held-for-sale | 4,583 | 19,441 |
Loans, net of deferred fees | 957,517 | 845,821 |
Less allowance for loan losses | (10,889) | (10,061) |
Net loans | 946,628 | 835,760 |
Accrued interest receivable | 2,654 | 2,778 |
Federal Home Loan Bank stock, at cost | 3,320 | 3,320 |
Premises and equipment, net | 7,368 | 7,659 |
Other real estate owned | 240 | 508 |
Deferred tax assets | 7,852 | 9,021 |
Cash surrender value of company owned life insurance | 25,925 | 25,740 |
Goodwill | 2,966 | 2,966 |
Other assets | 2,433 | 1,380 |
Total assets | 1,205,204 | 1,165,454 |
Deposits: | ||
Noninterest-bearing demand deposits | 231,103 | 245,338 |
Interest-bearing demand deposits | 77,976 | 77,271 |
Savings and money market accounts | 479,487 | 520,342 |
Time | 177,930 | 126,652 |
Total deposits | 966,496 | 969,603 |
Accrued interest payable | 563 | 521 |
Federal funds purchased | 3,001 | |
Federal Home Loan Bank advances | 105,500 | 68,000 |
Subordinated debt | 19,628 | 19,617 |
Other liabilities | 11,506 | 13,299 |
Total liabilities | $ 1,106,694 | $ 1,071,040 |
Commitments and Contingent Liabilities | ||
Stockholders’ equity: | ||
Common Stock, no par value. Authorized 100,000,000 shares: issued and outstanding 10,354,750 and 10,306,055 shares at March 31, 2016 and December 31, 2015, respectively | $ 91,817 | $ 90,884 |
Additional paid-in-capital | 1,074 | 1,209 |
Accumulated profit | 6,365 | 4,952 |
Accumulated other comprehensive loss | (746) | (2,631) |
Total stockholders’ equity | 98,510 | 94,414 |
Total liabilities and stockholders’ equity | $ 1,205,204 | $ 1,165,454 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) (unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Held-to-maturity securities, fair value | $ 11,981 | $ 11,964 |
Common stock, no par value | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 10,354,750 | 10,306,055 |
Common stock, shares outstanding | 10,354,750 | 10,306,055 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest and dividend income: | ||
Loans, including fees | $ 9,369 | $ 7,670 |
Taxable securities | 951 | 919 |
Tax-exempt securities | 298 | 216 |
Federal Funds sold and other | 35 | 30 |
Total interest and dividend income | 10,653 | 8,835 |
Interest expense: | ||
Deposits | 1,036 | 761 |
Subordinated debt | 348 | 348 |
Obligation under capital lease agreement | 71 | 73 |
Other borrowings | 187 | 160 |
Total interest expense | 1,642 | 1,342 |
Net interest income | 9,011 | 7,493 |
Provision for loan losses | 774 | 154 |
Net interest income after provision for loan losses | 8,237 | 7,339 |
Noninterest income: | ||
Customer service fees | 751 | 672 |
Mortgage banking income from sales, net of commissions | 300 | 205 |
Increase in cash surrender value of life insurance | 185 | 143 |
Net gain on sales of bulk mortgage loans | 256 | 236 |
Net gain on sale of Small Business Administration loans | 189 | |
Net gain on sale of available-for-sale securities | 228 | |
Total noninterest income | 1,909 | 1,256 |
Noninterest expenses: | ||
Salaries and employee benefits | 4,409 | 3,914 |
Equipment and occupancy | 762 | 774 |
Data processing | 369 | 428 |
Advertising, promotion, and public relations | 199 | 183 |
Legal and accounting | 421 | 276 |
Merger related expenses | 801 | |
FDIC insurance and other regulatory assessments | 214 | 192 |
Other real estate expense (income) | 3 | (40) |
Other expenses | 829 | 681 |
Total noninterest expenses | 8,007 | 6,408 |
Income before taxes | 2,139 | 2,187 |
Income tax expense | 726 | 733 |
Net income | 1,413 | 1,454 |
Preferred stock dividends | (32) | |
Net income available to common stockholders | $ 1,413 | $ 1,422 |
Per share information: | ||
Basic net income per common share available to common stockholders | $ 0.14 | $ 0.15 |
Diluted net income per common share available to common stockholders | $ 0.14 | $ 0.15 |
Weighted average common shares outstanding: | ||
Basic | 10,152,331 | 9,319,312 |
Diluted | 10,340,515 | 9,435,365 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 1,413 | $ 1,454 |
Other comprehensive income, after tax: | ||
Unrealized appreciation for the period on available-for-sale securities | 2,917 | 2,483 |
Tax expense | (992) | (844) |
Change in net gains on securities available-for-sale | 1,925 | 1,639 |
Change in fair value of derivative instruments for the period | (312) | (828) |
Tax benefit | 120 | 317 |
Change in cash flow hedge | (192) | (511) |
Loss realized on termination of cash flow hedge | 18 | |
Tax expense | (7) | |
Net loss on termination of cash flow hedge reclassified out of other comprehensive income | 11 | |
Gain on sale of available-for-sale securities | 228 | |
Tax expense | (87) | |
Net gains on sale of investment securities reclassified out of other comprehensive income | 141 | |
Total other comprehensive income, after tax | 1,885 | 1,128 |
Comprehensive income | $ 3,298 | $ 2,582 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Changes In Stockholders' Equity (unaudited) - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in-capital | Accumulated profit | Accumulated other comprehensive income (loss) |
Balances at Dec. 31, 2015 | $ 94,414 | $ 90,884 | $ 1,209 | $ 4,952 | $ (2,631) |
Balances (Shares) at Dec. 31, 2015 | 10,306,055 | ||||
Stock based compensation expense | 298 | 298 | |||
Issuance of common stock | 52 | $ 52 | |||
Issuance of common stock (Shares) | 2,922 | ||||
Exercise of employee common stock options and related tax benefits | 450 | $ 450 | |||
Exercise of employee common stock options and related tax benefits (Shares) | 45,000 | ||||
Issuance of restricted shares, net of forfeitures (Shares) | 945 | ||||
Reclassification of restricted shares vested | $ 431 | (431) | |||
Restricted shares withheld for taxes | (2) | (2) | |||
Restricted shares withheld for taxes (Shares) | (172) | ||||
Net income | 1,413 | 1,413 | |||
Other comprehensive income | 1,885 | 1,885 | |||
Balances at Mar. 31, 2016 | $ 98,510 | $ 91,817 | $ 1,074 | $ 6,365 | $ (746) |
Balances (Shares) at Mar. 31, 2016 | 10,354,750 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities: | ||
Net income | $ 1,413 | $ 1,454 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 774 | 154 |
Net amortization of securities | 154 | 225 |
Amortization of deferred loan fees and cost | 38 | (44) |
Stock-based compensation expense | 298 | 173 |
Supplemental executive retirement plan expense | 84 | 78 |
Deferred tax benefit (expense) | 218 | (36) |
Increase in cash surrender value of life insurance contracts | (185) | (143) |
Depreciation and amortization of premises and equipment | 268 | 303 |
Gain on sale of available-for-sale securities | (228) | |
(Gain) loss on other real estate owned | 3 | (40) |
Gain on mortgage banking income from sales, net | (300) | (205) |
Gain on sales of bulk mortgage loans | (256) | (236) |
Gain on sales of Small Business Administration loans | (189) | |
Mortgage loans held-for-sale: | ||
Loans originated | (24,028) | (47,806) |
Loans sold | 25,202 | 36,568 |
Decrease in accrued interest receivable | 124 | 72 |
(Increase) decrease in other assets | (1,053) | 906 |
Increase in accrued interest payable | 42 | 369 |
Decrease in other liabilities | (1,301) | (1,387) |
Net cash provided by (used in) operating activities | 1,078 | (9,595) |
Investing activities: | ||
Net change in interest-bearing time deposits in banks | (4) | |
Activity in available-for-sale securities: | ||
Sales | 41,212 | |
Maturities, prepayments and calls | 8,357 | 6,906 |
Purchases | (2,658) | |
Activity in held-to-maturity securities: | ||
Maturities, prepayments and calls | 18 | |
Purchases of Federal Home Loan Bank Stock | (396) | |
Purchases of premises and equipment, net of effects from disposals | (802) | (90) |
Proceeds from sale of other real estate owned | 265 | 609 |
Proceeds from sale of mortgage loans initially held-for-investment | 9,445 | 10,028 |
Increase in loans, net of collections | (106,696) | (26,900) |
Net cash used in investing activities | (48,201) | (12,505) |
Financing activities: | ||
Net increase (decrease) in deposits | (3,107) | 12,713 |
Net change in federal funds purchased | 3,001 | (1,769) |
Proceeds from Federal Home Loan Bank advances | 96,500 | 58,300 |
Payments on Federal Home Loan Bank advances | (59,000) | (29,300) |
Principal payments of capital lease obligation | (34) | (31) |
Issuance and exercise of employee options of common stock | 500 | 14,541 |
Redemption of preferred stock | (18,950) | |
Preferred stock dividends | (32) | |
Net cash provided by financing activities | 37,860 | 35,472 |
Net increase (decrease) in cash and cash equivalents | (9,263) | 13,372 |
Cash and cash equivalents, beginning of period | 35,154 | 17,765 |
Cash and cash equivalents, end of period | 25,891 | 31,137 |
Supplemental cash flow information: | ||
Cash paid for interest | 1,600 | 973 |
Cash paid for income taxes | 1,500 | 950 |
Loans transferred to mortgage loans held-for-sale | 5,455 | |
Loans transferred to mortgage loans held-for-investment | $ 4,795 | $ 859 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
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 months ended March 31, 2016, are not necessarily indicative of results that may be expected for the entire fiscal year ending December 31, 2016. 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 2015 Annual Report previously filed on Form 10-K. The consolidated balance sheet of the Company as of December 31, 2015 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, In June 2014, the FASB issued ASU No. 2014-12 Compensation - Stock Compensation (Topic 718) - Accounting for Share Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period In May 2014, the FASB issued ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued Leases Topic 606 Revenue from Contracts with Customers (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 months ended March 31, 2016 and 2015, there were no antidilutive stock options calculated under the treasury stock method as the strike price for an option was above the fair market value of a common share. The Company also calculated earnings per common share using the two-class method and determined that there was no material impact for the three months ended March 31, 2016 and 2015. The following is a summary of the basic and diluted earnings per common share calculation for each of the three months ended March 31, 2016 and 2015: At or for the Three Months Ended March 31, 2016 2015 (Dollars in Thousands, Except Share Data) Basic earnings per share calculation: Numerator - Net income available to common stockholders $ 1,413 1,422 Denominator – Weighted average common shares outstanding 10,152,331 9,319,312 Basic net income per common share available to common stockholders $ 0.14 0.15 Diluted earnings per share calculation: Numerator - Net income available to common stockholders 1,413 1,422 Denominator – Average common shares outstanding 10,152,331 9,319,312 Average diluted common shares outstanding 188,184 116,053 Weighted average common shares outstanding 10,340,515 9,435,365 Diluted net income per common share available to common stockholders $ 0.14 0.15 (g) Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation. These reclassifications had no effect on net income. (h) Revisions In 2015, management evaluated all operating leases to prepare for the upcoming accounting pronouncement ASU 2016-2. The discount rate initially selected to calculate the present value of the minimum lease payments related to the lease for the Green Hill Branch was not the incremental borrowing rate. It was determined that the incremental borrowing rate of 5.59% at lease inception was more appropriate. Due to this change the present value of lease payments exceeded 90% of the fair value of the building at inception of the lease, resulting in capital lease classification rather than operating lease classification, as previously reflected in the Company’s consolidated financial statements. The Company assessed the materiality of the capital lease classification on its financial statements for previously issued financial statements in accordance with SEC’s Staff Accounting Bulletin (SAB) No. 99 and concluded that the impact of the adjustments was not material to its financial statements had the errors been corrected for prior period financial statements. Accordingly, the March 31, 2015 consolidated statements of income, consolidated statements of comprehensive income and consolidated statements of cash flows were revised to correct the change in presentation. The change in presentation for the lease resulted in a decrease in net income of $4,000 as of March 31, 2015. The effects of the necessary adjustments and related tax impact on the Company's consolidated financial statements for the three months ended March 31, 2015 are detailed in the following tables: March 31, 2015 As Previously Reported Revision As Revised (Dollars in Thousands, Except Per Share Data) Condensed Consolidated Statement of Income Obligation under capital lease agreement $ - 73 73 Total interest expense 1,269 73 1,342 Net interest income 7,566 73 7,493 Net interest income after provision for loan losses 7,412 73 7,339 Equipment and occupancy 840 (66 ) 774 Total noninterest expenses 6,474 (66 ) 6,408 Income before taxes 2,194 (7 ) 2,187 Income tax expense 736 (3 ) 733 Net income 1,458 (4 ) 1,454 Net income available to common stockholders 1,426 (4 ) 1,422 Earnings per share-basic 0.15 - 0.15 Earnings per share-diluted 0.15 - 0.15 Condensed Consolidated Statement of Comprehensive Income Net income $ 1,458 (4 ) 1,454 Comprehensive income 2,586 (4 ) 2,582 Condensed Consolidated Statement of Cash Flows Net income $ 1,458 (4 ) 1,454 Deferred tax expense (33 ) (3 ) (36 ) Depreciation and amortization of premises and equipment 247 56 303 Decrease in other liabilities (1,369 ) (18 ) (1,387 ) Principal payments of capital lease obligation - (31 ) (31 ) |
Securities
Securities | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 are summarized as follows: March 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In Thousands) Securities available-for-sale: U.S. government agency securities $ 15,062 58 - 15,120 State and municipal securities 44,417 1,334 4 45,747 Corporate notes 12,633 137 10 12,760 Mortgage-backed securities 89,320 710 442 89,588 $ 161,432 2,239 456 163,215 Securities held-to-maturity: State and municipal securities $ 8,206 48 - 8,254 Mortgage-backed securities 3,707 20 - 3,727 $ 11,913 68 - 11,981 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In Thousands) Securities available-for-sale: U.S. government agency securities $ 41,340 128 642 40,826 State and municipal securities 46,830 964 58 47,736 Corporate notes 12,658 - 71 12,587 Mortgage-backed securities 110,093 335 2,003 108,425 $ 210,921 1,427 2,774 209,574 Securities held-to-maturity: State and municipal securities $ 8,208 64 - 8,272 Mortgage-backed securities 3,729 - 37 3,692 $ 11,937 64 37 11,964 Gross realized gains and losses from security sales for the three months ended March 31, 2016 and 2015 are as follows: At or for the Three Months Ended March 31, 2016 2015 (In Thousands) Gross realized gains $ 279 - Gross realized losses (51 ) - 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. Proceeds from sales totaled $41.2 million for the three months ended March 31, 2016. There were no sales for the three months ended March 31, 2015. 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 March 31, 2016, 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 $ 1,829 1,833 - - Due in one year to five years 17,083 17,345 - - Due in five years to ten years 26,506 27,078 1,503 1,527 Due after ten years 26,694 27,371 6,703 6,727 Mortgage-backed securities 89,320 89,588 3,707 3,727 $ 161,432 163,215 11,913 11,981 Securities with an amortized cost of $25.9 million and $24.7 million and fair value of $25.8 million and $24.5 million at March 31, 2016 and December 31, 2015, 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 March 31, 2016 and December 31, 2015, 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-to-maturity with unrealized losses as of March 31, 2016 and December 31, 2015, 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 March 31, 2016 Securities available-for-sale: State and municipal securities $ 303 (2 ) 538 (2 ) 841 (4 ) Corporate notes 4,290 (10 ) - - 4,290 (10 ) Mortgage-backed securities - - 42,335 (442 ) 42,335 (442 ) Total temporarily impaired $ 4,593 (12 ) 42,873 (444 ) 47,466 (456 ) As of December 31, 2015 Securities available-for-sale: U.S. government agencies $ 14,384 (534 ) 4,892 (108 ) 19,276 (642 ) State and municipal securities 3,630 (14 ) 1,962 (44 ) 5,592 (58 ) Corporate notes 12,587 (71 ) - - 12,587 (71 ) Mortgage-backed securities 36,295 (397 ) 54,279 (1,606 ) 90,574 (2,003 ) Total temporarily impaired $ 66,896 (1,016 ) 61,133 (1,758 ) 128,029 (2,774 ) Securities held-to-maturity: Mortgage-backed securities $ 3,692 (37 ) - - 3,692 (37 ) As noted in the table above, at March 31, 2016, the Bank had unrealized losses of $456,000 on $47.5 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 primarily 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. Repayment is subject to the borrower’s personal income, credit rating, debt level, character in fulfilling payment obligations, employment conditions, and changes in property values on residential properties. · Commercial and industrial loans include loans to business enterprises issued for commercial, industrial and/or other professional purposes. Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. Risks include adequacy of cash flow, reasonableness of profit projections, interest rate, financial leverage, economic trends, management ability, and others. · 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. These loans are originated based on the borrower's ability to service the debt and secondarily based on the fair value of the underlying collateral. These loans may also incorporate a personal guarantee. Commercial real estate loans may be more adversely affected by conditions in the real estate markets, interest rates or in the general economy. · 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. The terms of these loans are generally short-term with some loans converting to permanent financing upon completion and may incorporate a personal guarantee. These loans are made on a projected cash flow basis and are secured by the project being constructed. Risks include loan amount in relation to construction delays and overruns, vacancies, collateral value subject to market value fluctuations, interest rate, market demands, borrower’s ability to repay, and others. Construction loans can include interest reserves to carry the project through to completion. · 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. Success in repayment is subject to the borrower’s personal income, credit rating, debt level, character in fulfilling payment obligations, employment conditions, and others. Risks are mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers and may be secured by consumer assets such as automobiles. · Other loans include all loans not included in the consumer classification, such as unsecured loans to religious organizations. Repayment of these loans is primarily dependent on the identified cash flows of the borrower, which can be impacted by economic conditions in their market areas such as unemployment levels. The following table summarizes the balance of loans outstanding by segment and class as of March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 (In Thousands) Residential real estate: Mortgage $ 137,884 123,478 Multi-family 10,378 10,048 Commercial and industrial 357,061 312,382 Commercial real estate 317,095 282,698 Construction and land development 120,128 105,886 Consumer 15,125 11,796 Other 1,150 799 Total loans 958,821 847,087 Net deferred loan origination costs and fees (1,304 ) (1,266 ) Less allowance for loan losses (10,889 ) (10,061 ) Net loans $ 946,628 835,760 · 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, non-accrual and doubtful. As of March 31, 2016, approximately 70% 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, non-accrual and doubtful, 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. · Non-accrual 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. · Doubtful loans have the traits of non-accrual loans; however, repayment of principal and interest is doubtful. Loss on all or a portion of principal is anticipated. The following tables present the loan balances (recorded investment) by segment as well as risk rating category as of March 31, 2016 and December 31, 2015: Pass Special Mention Substandard Non-accrual Doubtful Total Grade 1-5 Grade 6 Grade 7 Grade 8 Grade 9 Loans (In Thousands) March 31, 2016 Residential real estate: Mortgage $ 136,962 - 766 156 - 137,884 Multi-family 10,378 - - - - 10,378 Commercial and industrial 356,713 - 248 100 - 357,061 Commercial real estate 316,943 - - 152 - 317,095 Construction and land development 119,715 - 413 - - 120,128 Consumer 15,008 - 92 25 - 15,125 Other 1,150 - - - - 1,150 $ 956,869 - 1,519 433 - 958,821 Pass Special Mention Substandard Non-accrual Doubtful Total Grade 1-5 Grade 6 Grade 7 Grade 8 Grade 9 Loans (In Thousands) December 31, 2015 Residential real estate: Mortgage $ 122,497 - 737 244 - 123,478 Multi-family 10,048 - - - - 10,048 Commercial and industrial 311,944 - 310 128 - 312,382 Commercial real estate 282,546 - - 152 - 282,698 Construction and land development 105,462 - 424 - - 105,886 Consumer 11,770 - - 26 - 11,796 Other 799 - - - - 799 $ 845,066 - 1,471 550 - 847,087 (b) Impaired Loans As of March 31, 2016 and December 31, 2015, 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 such as lack of collateral or limited cash flow. The principal balance of these impaired loans amounted to $1.2 million as of March 31, 2016 and December 31, 2015. 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 March 31, 2016 and December 31, 2015 including the recorded investment on the balance sheet and the unpaid principal balance is shown below: At March 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance (In Thousands) Impaired loans with no recorded allowance: Residential real estate: Mortgage $ 156 171 - Commercial and industrial 100 101 - Commercial real estate 152 153 - Construction and land development 413 413 - Total 821 838 - Impaired loans with a recorded allowance: Residential real estate: Mortgage 301 301 60 Consumer 117 117 74 Total 418 418 134 Total impaired loans $ 1,239 1,256 134 At December 31, 2015 Recorded Investment Unpaid Principal Balance Related Allowance (In Thousands) Impaired loans with no recorded allowance: Residential real estate: Mortgage $ 244 259 - Commercial and industrial 128 129 - Commercial real estate 152 153 - Construction and land development 424 424 - Total 948 965 - Impaired loans with a recorded allowance: Residential real estate: Mortgage 272 272 61 Consumer 26 26 26 Total 298 298 87 Total impaired loans $ 1,246 1,263 87 Three Months Ended Three Months Ended March 31, 2016 March 31, 2015 Average Recorded Investment Interest Income Recognized (1) Average Recorded Investment Interest Income Recognized (1) (In Thousands) Impaired loans with no recorded allowance: Residential real estate: Mortgage $ 187 1 294 - Commercial and industrial 114 - 250 - Commercial real estate 152 - - - Construction and land development 419 5 - - Total 872 6 544 - Impaired loans with a recorded allowance: Residential real estate: Mortgage 271 4 193 - Commercial and industrial - - 234 - Construction and land development - - 706 7 Consumer 117 3 38 - Total 388 7 1,171 7 Total impaired loans $ 1,260 13 1,715 7 (1) Includes income recognized in earnings for impaired accruing loans only. All non-accrual loans did not have any interest recognized in the three months ended March 31, 2016 and 2015. (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 $122,000 and $147,000 of loans past due 30 days or more that were still accruing as of March 31, 2016 and December 31, 2015, respectively. The following tables present past due balances at March 31, 2016 and December 31, 2015 and by loan segment allocated between performing and non-accrual status: 30-89 days past due and accruing 90 days or more past due and accruing Total past due and accruing Current and accruing Non-accrual Total Loans (In Thousands) March 31, 2016 Residential real estate: Mortgage $ - - - 137,728 156 137,884 Multi-family - - - 10,378 - 10,378 Commercial and industrial 122 - 122 356,839 100 357,061 Commercial real estate - - - 316,943 152 317,095 Construction and land development - - - 120,128 - 120,128 Consumer - - - 15,100 25 15,125 Other - - - 1,150 - 1,150 $ 122 - 122 958,266 433 958,821 30-89 days past due and accruing 90 days or more past due and accruing Total past due and accruing Current and accruing Non-accrual Total Loans (In Thousands) December 31, 2015 Residential real estate: Mortgage $ - - - 123,234 244 123,478 Multi-family - - - 10,048 - 10,048 Commercial and industrial 147 - 147 312,107 128 312,382 Commercial real estate - - - 282,546 152 282,698 Construction and land development - - - 105,886 - 105,886 Consumer - - - 11,770 26 11,796 Other - - - 799 - 799 $ 147 - 147 846,390 550 847,087 At March 31, 2016 and December 31, 2015, all loans classified as non-accrual were deemed to be impaired. The principal balance of these non-accrual loans amounted to $433,000 and $550,000 at March 31, 2016 and December 31, 2015, 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 $4,000 and $2,000 for the periods ended March 31, 2016 and December 31, 2015, respectively. Management elected to not record payments received in interest income during the periods ended March 31, 2016 and December 31, 2015. (d) Troubled Debt Restructure (TDR) The Bank attempts to work with borrowers, when advantageous to both parties, to extend or modify terms to better align with the borrowers 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 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’s judgment is required in the evaluation process. As of March 31, 2016, one consumer loan, two commercial and industrial loans and one commercial real estate loans were newly classified as TDRs. A TDR is considered an impaired loan pursuant to U.S. GAAP. No loans were restructured or modified due to declining credit quality during the three months ended March 31, 2015. The following table outlines the amount of each TDR categorized by loan segment made during the three months ended March 31, 2016: March 31, 2016 Number of contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment (In Thousands, Except Number of Contracts) Commercial and industrial 2 $ 100 100 Commercial real estate 1 152 152 Consumer 1 90 92 4 $ 342 344 Of the $424,000 in loans reported as TDRs as of December 31, 2015, an additional $342,000 was modified as TDRs during the period ended March 31, 2016. No TDRs were foreclosed upon during the three month periods ended March 31, 2016 and 2015. As of March 31, 2016, and March 31, 2015, 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. During the three months ended March 31, 2016 the lookback period of the allowance for loan losses methodology for construction and land development loans was changed to six years to reflect an economic cycle and be consistent with other loan types. A five years lookback period was previously used due to outliers in the 2009 data. 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 is first identified by Bank personnel 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) March 31, 2016 Loans $ 137,884 10,378 357,061 317,095 120,128 15,125 1,150 958,821 Loans individually evaluated for impairment 457 - 100 152 413 117 - 1,239 Loans collectively evaluated for impairment 137,427 10,378 356,961 316,943 119,715 15,008 1,150 957,582 Loans acquired with deteriorated credit quality - - - - - - - - December 31, 2015 Loans $ 123,478 10,048 312,382 282,698 105,886 11,796 799 847,087 Loans individually evaluated for impairment 516 - 128 152 424 26 - 1,246 Loans collectively evaluated for impairment 122,962 10,048 312,254 282,546 105,462 11,770 799 845,841 Loans acquired with deteriorated credit quality - - - - - - - - Consumer loans less than $25,000 are charged off no later than when the loan becomes 120 days past due. All other loans are charged off when it is determined that the loan is uncollectible. 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, 2014 to March 31, 2015 and December 31, 2015 to March 31, 2016 by loan segment: Residential Real-Estate Commercial and Industrial Commercial Real Estate Construction and Land Development Consumer Other Total (In Thousands) Balances, December 31, 2015 $ 1,329 3,191 2,940 2,512 85 4 10,061 Charged-off loans - - - - - - - Recovery of previously charged-off loans - 51 - 3 - - 54 Provision for loan losses 329 (134 ) 481 27 67 4 774 Balances, March 31, 2016 $ 1,658 3,108 3,421 2,542 152 8 10,889 Balances, December 31, 2014 $ 1,244 2,402 3,131 1,675 62 4 8,518 Charged-off loans - (75 ) - - - - (75 ) Recovery of previously charged-off loans - - - 72 - - 72 Provision for loan losses 47 (38 ) 168 (39 ) 16 - 154 Balances, March 31, 2015 $ 1,291 2,289 3,299 1,708 78 4 8,669 The following table presents the balance in the allowance for loan losses by loan segment based on impairment method: Residential Real-Estate Commercial and Industrial Commercial Real Estate Construction and Land Development Consumer Other Total (In Thousands) Balances, March 31, 2016 Allowance for loans individually evaluated for impairment $ 60 - - - 74 - 134 Allowance for loans collectively evaluated for impairment $ 1,598 3,108 3,421 2,542 78 8 10,755 Balances, December 31, 2015 Allowance for loans individually evaluated for impairment $ 61 - - - 26 - 87 Allowance for loans collectively evaluated for impairment $ 1,268 3,191 2,940 2,512 59 4 9,974 (f) Residential Lending At March 31, 2016, the Bank had approximately $4.6 million of mortgage loans held-for-sale compared with approximately $19.4 million at December 31, 2015. 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 to four weeks of loan closing. At March 31, 2016 and December 31, 2015 the Bank had $1.6 million and $5.2 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 bulk or individually generally within one year 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 $3.0 million and $14.2 million of portfolio mortgage loans held-for-sale as of March 31, 2016 and December 31, 2015, respectively. For the three months ended March 31, 2016 the Bank sold $13.0 million of portfolio loans held-for-sale for a gain of $256,000. For the three months ended March 31, 2015 the Bank sold $11.2 million of portfolio loans held-for-sale loan for a gain of $236,000. The secondary market mortgage sales are sold 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 arising from borrower defaults or faulty representations and warranties that it has made in connection with its mortgage loan sales. For portfolio mortgages, the Bank determines at origination if the loan will be held-for-investment or held-for-sale. If circumstances arise after origination that the loan is no longer sellable to investors or could be sold it is moved accordingly. At March 31, 2016, the Bank has $137.9 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 is included in the following table: Notional Amount Estimated Fair Value Included in Other Assets Estimated Fair Value Included in Other Liabilities (In Thousands) Interest rate swap agreements: Pay fixed / Receive variable swaps – March 31, 2016 $ 32,398 1,094 1,094 Pay fixed / Receive variable swaps – December 31, 2015 18,443 417 417 The terms of the individual contracts within the existing relationship at March 31, 2016 and December 31, 2015 is as follows: March 31, 2016 December 31, 2015 Forecasted Notional Amount Receive Rate Pay Rate Term Other Liabilities Unrealized (Gain) Loss in Accumulated Other Comprehensive (Loss) Income Other Liabilities Unrealized (Gain) Loss in Accumulated Other Comprehensive (Loss) Income (Dollars in Thousands) Interest Rate Swap $ - 1 month LIBOR plus 35 basis points 2.99 % Nov. 2015 - May 2021 $ - 224 - 236 Interest Rate Swap 10,000 1 month LIBOR plus 35 basis points 2.98 May 2016 - May 2021 764 472 472 292 Interest Rate Swap 10,000 1 month LIBOR plus 35 basis points 3.03 March 2017 - May 2021 611 377 341 210 Interest Rate Swap 25,000 1.50 1 month LIBOR April 2015 - April 2022 (522 ) (322 ) (272 ) (168 ) $ 45,000 $ 853 751 541 570 The cash flow hedges were determined to be fully effective during the periods presented. 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 $44,000 will be reclassified from accumulated other comprehensive (loss) income in the next twelve months. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015. 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. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s monthly and/or quarterly valuation process. 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 Company reflects these assets within Level 2 of the valuation hierarchy. For purposes of potential valuation adjustments to its derivative positions, the Company evaluates the credit risk of its counterparties. Accordingly, the Company 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 Company also utilizes this approach to estimate its own credit risk on derivative liability positions. To date, the Company 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 March 31, 2016 and December 31, 2015, 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) March 31, 2016 Investment securities (AFS) U.S. government agencies $ 15,120 - 15,120 - State and municipal securities 45,747 - 45,747 - Corporate notes 12,760 - 12,760 - Mortgage-backed securities 89,588 - 89,588 - Total investment securities available-for-sale 163,215 - 163,215 - Derivative assets 1,094 - 1,094 - Total assets at fair value $ 164,309 - 164,309 - Derivative liabilities $ 1,947 - 1,947 - Total liabilities at fair value $ 1,947 - 1,947 - 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, 2015 Investment securities (AFS) U.S. government agencies $ 40,826 - 40,826 - State and municipal securities 47,736 - 47,736 - Corporate notes 12,587 - 12,587 - Mortgage-backed securities 108,425 - 108,425 - Total investment securities available-for-sale 209,574 - 209,574 - Derivative assets 417 - 417 - Total assets at fair value $ 209,991 - 209,991 - Derivative liabilities $ 958 - 958 - Total liabilities at fair value $ 958 - 958 - 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 March 31, 2016 and December 31, 2015. 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 are measured based on the value of the underlying collateral securing the loans and are 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 March 31, 2016 and December 31, 2015, impaired loans with a carrying value of $1.1 million and $1.2 million, were reduced by specific valuation allowance allocations totaling $60,000 and $61,000 to a net reported fair value of $1.0 million and $1.1 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. There were no fair value adjustments as of March 31, 2016. As of December 31, 2015, OREO was $268,000. OREO is included in Level 3 of the valuation hierarchy. The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring level 3 fair value measurements at March 31, 2016 and December 31, 2015: Fair value Valuation Technique Unobservable Inputs Range (weighted average) (In Thousands) March 31, 2016 Impaired loans (collateral dependent) $ 156 Discounted appraisals Appraisal adjustments 11% (11%) December 31, 2015 Impaired loans (collateral dependent) $ 1,159 Discounted appraisals Appraisal adjustments 10% - 21% (14%) Other real estate owned $ 268 Discounted appraisals Appraisal adjustments 6% (6%) 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 March 31, 2016, 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 and due from banks, federal funds sold, 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) 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. (d) 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. (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 and the Company does not include a fair value associated with these commitments. At March 31, 2016 and December 31, 2015 the fair value of the Company’s standby letters of credits were $58,000 and $55,000, respectively and reflects the off-balance sheet reserves included in other liabilities on the Consolidated Balance Sheets. The estimated fair values of financial instruments at March 31, 2016 and December 31, 2015 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) March 31, 2016 Financial assets: Cash and due from banks $ 24,671 24,671 24,671 - - Federal funds sold 1,220 1,220 1,220 - - Interest-bearing time deposits in banks 216 216 216 - - Securities available-for-sale 163,215 163,215 - 163,215 - Securities held-to-maturity 11,913 11,981 - 6,481 5,500 Mortgage loans held-for-sale 4,583 4,612 - 4,612 - Loans, net 946,628 941,101 - - 941,101 Financial liabilities: Deposits 966,496 967,122 788,566 178,556 - Federal funds purchased 3,001 3,001 3,001 - - Federal home loan bank advances 105,500 105,635 - 105,635 - Subordinated debt 19,628 20,000 - - 20,000 Off-balance sheet instruments: Commitments to extend credit 311,153 - - - - Standby letters of credit 11,375 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, 2015 Financial assets: Cash and due from banks $ 34,479 34,479 34,479 - - Federal funds sold 675 675 675 - - Interest-bearing time deposits in banks 216 216 216 - - Securities available-for-sale 209,574 209,574 - 209,574 - Securities held-to-maturity 11,937 11,964 - 6,464 5,500 Mortgage loans held-for-sale 19,441 19,584 - 19,584 - Loans, net 835,760 831,313 - - 831,313 Financial liabilities: Deposits 969,603 969,790 842,951 126,839 - Federal home loan bank advances 68,000 68,007 - 68,007 - Subordinated debt 19,617 20,000 - - 20,000 Off-balance sheet instruments: Commitments to extend credit 310,209 - - - - Standby letters of credit 10,829 55 - - 55 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
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 off-balance sheet commitments as it does for on balance sheet instruments. The following financial instruments were outstanding whose contract amounts represent credit risk: March 31, December 31, 2016 2015 (In Thousands) Commitments to extend credit and unfunded commitments $ 311,153 310,209 Standby letters of credit 11,375 10,829 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 $55,000 in off-balance sheet reserves included in other liabilities on the Consolidated Balance Sheet as of March 31, 2016 and December 31, 2015, respectively. From time to time, the Company may be a party to various legal proceedings incident to its business. As of March 31, 2016 there are no material pending legal proceedings to which the Corporation or any of its subsidiaries is a party or of which any of the Corporation or its subsidiaries’ properties are subject. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
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 months ended March 31, 2016 was 33.9%, compared with 33.5% for the three months ended March 31, 2015. 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. |
Minimum Regulatory Capital Requ
Minimum Regulatory Capital Requirements | 3 Months Ended |
Mar. 31, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Minimum Regulatory Capital Requirements | (8) Minimum Regulatory Capital Requirements The Corporation 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 Corporation 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 Corporation. 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 March 31, 2016, management believes the Corporation and the Bank met all capital adequacy requirements to which they are subject to be classified as Well Capitalized and in compliance with the capital conservation buffer requirement. There are no conditions or events that have occurred since March 31, 2016 that management believes have impacted the Corporation and the Bank’s regulatory capital classification. |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2016 | |
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 Bank’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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | (10) Accumulated Other Comprehensive Income (Loss) Significant amounts reclassified out of Accumulated other comprehensive income (loss) for the three months ended March 31, 2016 and 2015 are as follows: Three Months Ended March 31, Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Items in the Consolidated Statements of Income 2016 2015 (In Thousands) Gains realized on sale of investment securities Net gain on sale of available-for-sale securities $ 228 - Tax effect Income tax expense (87 ) - Loss realized on termination of cash flow hedge Interest expense: deposits 18 - Tax effect Income tax expense (7 ) - Total reclassifications out of accumulated other comprehensive income $ 152 - The activity in accumulated other comprehensive income (loss) for the three months ended March 31, 2016 and 2015 is as follows: 2016 2015 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, January 1 $ (2,061 ) (570 ) (2,631 ) (2,108 ) (377 ) (2,485 ) Other comprehensive income (loss) before reclassifications 1,925 (192 ) 1,733 1,639 (511 ) 1,128 Amounts reclassified from accumulated other comprehensive loss 141 11 152 - - - Period Change 2,066 (181 ) 1,885 1,639 (511 ) 1,128 Ending Balance, March 31 $ 5 (751 ) (746 ) (469 ) (888 ) (1,357 ) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | (11) Subsequent Events On January 28, 2016, the Corporation entered into an Agreement and Plan of Merger with Pinnacle Financial Partners, Inc., a Tennessee corporation (Pinnacle) providing for the merger of the Corporation with and into Pinnacle, with Pinnacle being the surviving entity. The proposed merger of the Corporation with and into Pinnacle has been approved unanimously by each company’s Board of Directors and is expected to close either late in the second quarter or early in the third quarter of 2016. Completion of the transaction is subject to satisfaction of customary closing conditions, including the receipt of required regulatory approvals and the approval of the Corporation’s shareholders. Under the terms of the merger agreement, the Corporation’s shareholders will receive 0.36 shares of Pinnacle’s common stock and $2.00 in cash for every Corporation share. All fractional shares will be cashed out based on the average 10-day closing price of Pinnacle common stock as of the closing. Additionally, the Corporation’s outstanding stock options and unvested shares of restricted stock will be fully vested upon consummation of the merger pursuant to the Corporation’s stock option plan, and all outstanding options that are unexercised prior to the closing will be cashed out at $20 per share. At closing, and assuming all outstanding Corporation options are cashed out as of the merger date, Avenue shareholders will own approximately 8.1 percent of the combined firm on a fully diluted basis. On May 9, 2016 a purported class action complaint was filed in the Chancery Court for the State of Tennessee, 20 th Stephen Bushansky, on behalf of himself and all others similarly situated, Plaintiff, versus Avenue Financial Holdings, Inc. Ronald L. Samuels, Kent Cleaver, David G. Anderson, Agenia Clark, James F. Deutsch, Marty Dickens, Patrick G. Emery, Nancy Falls, Joseph C. Galante, David Ingram. Stephen Moore, Ken Robold, Karen Saul and Pinnacle Financial Partners, Inc., Defendants (Case No. 16-489-IV) |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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 months ended March 31, 2016, are not necessarily indicative of results that may be expected for the entire fiscal year ending December 31, 2016. 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 2015 Annual Report previously filed on Form 10-K. The consolidated balance sheet of the Company as of December 31, 2015 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, In June 2014, the FASB issued ASU No. 2014-12 Compensation - Stock Compensation (Topic 718) - Accounting for Share Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period In May 2014, the FASB issued ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued Leases Topic 606 Revenue from Contracts with Customers |
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 months ended March 31, 2016 and 2015, there were no antidilutive stock options calculated under the treasury stock method as the strike price for an option was above the fair market value of a common share. The Company also calculated earnings per common share using the two-class method and determined that there was no material impact for the three months ended March 31, 2016 and 2015. The following is a summary of the basic and diluted earnings per common share calculation for each of the three months ended March 31, 2016 and 2015: At or for the Three Months Ended March 31, 2016 2015 (Dollars in Thousands, Except Share Data) Basic earnings per share calculation: Numerator - Net income available to common stockholders $ 1,413 1,422 Denominator – Weighted average common shares outstanding 10,152,331 9,319,312 Basic net income per common share available to common stockholders $ 0.14 0.15 Diluted earnings per share calculation: Numerator - Net income available to common stockholders 1,413 1,422 Denominator – Average common shares outstanding 10,152,331 9,319,312 Average diluted common shares outstanding 188,184 116,053 Weighted average common shares outstanding 10,340,515 9,435,365 Diluted net income per common share available to common stockholders $ 0.14 0.15 |
Reclassifications | (g) Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation. These reclassifications had no effect on net income. |
Revisions | (h) Revisions In 2015, management evaluated all operating leases to prepare for the upcoming accounting pronouncement ASU 2016-2. The discount rate initially selected to calculate the present value of the minimum lease payments related to the lease for the Green Hill Branch was not the incremental borrowing rate. It was determined that the incremental borrowing rate of 5.59% at lease inception was more appropriate. Due to this change the present value of lease payments exceeded 90% of the fair value of the building at inception of the lease, resulting in capital lease classification rather than operating lease classification, as previously reflected in the Company’s consolidated financial statements. The Company assessed the materiality of the capital lease classification on its financial statements for previously issued financial statements in accordance with SEC’s Staff Accounting Bulletin (SAB) No. 99 and concluded that the impact of the adjustments was not material to its financial statements had the errors been corrected for prior period financial statements. Accordingly, the March 31, 2015 consolidated statements of income, consolidated statements of comprehensive income and consolidated statements of cash flows were revised to correct the change in presentation. The change in presentation for the lease resulted in a decrease in net income of $4,000 as of March 31, 2015. The effects of the necessary adjustments and related tax impact on the Company's consolidated financial statements for the three months ended March 31, 2015 are detailed in the following tables: March 31, 2015 As Previously Reported Revision As Revised (Dollars in Thousands, Except Per Share Data) Condensed Consolidated Statement of Income Obligation under capital lease agreement $ - 73 73 Total interest expense 1,269 73 1,342 Net interest income 7,566 73 7,493 Net interest income after provision for loan losses 7,412 73 7,339 Equipment and occupancy 840 (66 ) 774 Total noninterest expenses 6,474 (66 ) 6,408 Income before taxes 2,194 (7 ) 2,187 Income tax expense 736 (3 ) 733 Net income 1,458 (4 ) 1,454 Net income available to common stockholders 1,426 (4 ) 1,422 Earnings per share-basic 0.15 - 0.15 Earnings per share-diluted 0.15 - 0.15 Condensed Consolidated Statement of Comprehensive Income Net income $ 1,458 (4 ) 1,454 Comprehensive income 2,586 (4 ) 2,582 Condensed Consolidated Statement of Cash Flows Net income $ 1,458 (4 ) 1,454 Deferred tax expense (33 ) (3 ) (36 ) Depreciation and amortization of premises and equipment 247 56 303 Decrease in other liabilities (1,369 ) (18 ) (1,387 ) Principal payments of capital lease obligation - (31 ) (31 ) |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 months ended March 31, 2016 and 2015: At or for the Three Months Ended March 31, 2016 2015 (Dollars in Thousands, Except Share Data) Basic earnings per share calculation: Numerator - Net income available to common stockholders $ 1,413 1,422 Denominator – Weighted average common shares outstanding 10,152,331 9,319,312 Basic net income per common share available to common stockholders $ 0.14 0.15 Diluted earnings per share calculation: Numerator - Net income available to common stockholders 1,413 1,422 Denominator – Average common shares outstanding 10,152,331 9,319,312 Average diluted common shares outstanding 188,184 116,053 Weighted average common shares outstanding 10,340,515 9,435,365 Diluted net income per common share available to common stockholders $ 0.14 0.15 |
Summary of Adjustments and Related Tax Impact on Financial Statements | The effects of the necessary adjustments and related tax impact on the Company's consolidated financial statements for the three months ended March 31, 2015 are detailed in the following tables: March 31, 2015 As Previously Reported Revision As Revised (Dollars in Thousands, Except Per Share Data) Condensed Consolidated Statement of Income Obligation under capital lease agreement $ - 73 73 Total interest expense 1,269 73 1,342 Net interest income 7,566 73 7,493 Net interest income after provision for loan losses 7,412 73 7,339 Equipment and occupancy 840 (66 ) 774 Total noninterest expenses 6,474 (66 ) 6,408 Income before taxes 2,194 (7 ) 2,187 Income tax expense 736 (3 ) 733 Net income 1,458 (4 ) 1,454 Net income available to common stockholders 1,426 (4 ) 1,422 Earnings per share-basic 0.15 - 0.15 Earnings per share-diluted 0.15 - 0.15 Condensed Consolidated Statement of Comprehensive Income Net income $ 1,458 (4 ) 1,454 Comprehensive income 2,586 (4 ) 2,582 Condensed Consolidated Statement of Cash Flows Net income $ 1,458 (4 ) 1,454 Deferred tax expense (33 ) (3 ) (36 ) Depreciation and amortization of premises and equipment 247 56 303 Decrease in other liabilities (1,369 ) (18 ) (1,387 ) Principal payments of capital lease obligation - (31 ) (31 ) |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Available for Sale and Held to Maturity Securities Reconciliation [Table Text Block] | The amortized cost and fair value of securities available-for-sale and held-to-maturity at March 31, 2016 and December 31, 2015 are summarized as follows: March 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In Thousands) Securities available-for-sale: U.S. government agency securities $ 15,062 58 - 15,120 State and municipal securities 44,417 1,334 4 45,747 Corporate notes 12,633 137 10 12,760 Mortgage-backed securities 89,320 710 442 89,588 $ 161,432 2,239 456 163,215 Securities held-to-maturity: State and municipal securities $ 8,206 48 - 8,254 Mortgage-backed securities 3,707 20 - 3,727 $ 11,913 68 - 11,981 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In Thousands) Securities available-for-sale: U.S. government agency securities $ 41,340 128 642 40,826 State and municipal securities 46,830 964 58 47,736 Corporate notes 12,658 - 71 12,587 Mortgage-backed securities 110,093 335 2,003 108,425 $ 210,921 1,427 2,774 209,574 Securities held-to-maturity: State and municipal securities $ 8,208 64 - 8,272 Mortgage-backed securities 3,729 - 37 3,692 $ 11,937 64 37 11,964 |
Schedule of Gross Realized Gains and Losses from Security Sales | Gross realized gains and losses from security sales for the three months ended March 31, 2016 and 2015 are as follows: At or for the Three Months Ended March 31, 2016 2015 (In Thousands) Gross realized gains $ 279 - Gross realized losses (51 ) - |
Schedule of Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity | The amortized cost and estimated fair value of securities at March 31, 2016, 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 $ 1,829 1,833 - - Due in one year to five years 17,083 17,345 - - Due in five years to ten years 26,506 27,078 1,503 1,527 Due after ten years 26,694 27,371 6,703 6,727 Mortgage-backed securities 89,320 89,588 3,707 3,727 $ 161,432 163,215 11,913 11,981 |
Schedule of Unrealized Losses of Securities Available-for-Sale and Held-to-Maturity | Securities available-for-sale and held-to-maturity with unrealized losses as of March 31, 2016 and December 31, 2015, 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 March 31, 2016 Securities available-for-sale: State and municipal securities $ 303 (2 ) 538 (2 ) 841 (4 ) Corporate notes 4,290 (10 ) - - 4,290 (10 ) Mortgage-backed securities - - 42,335 (442 ) 42,335 (442 ) Total temporarily impaired $ 4,593 (12 ) 42,873 (444 ) 47,466 (456 ) As of December 31, 2015 Securities available-for-sale: U.S. government agencies $ 14,384 (534 ) 4,892 (108 ) 19,276 (642 ) State and municipal securities 3,630 (14 ) 1,962 (44 ) 5,592 (58 ) Corporate notes 12,587 (71 ) - - 12,587 (71 ) Mortgage-backed securities 36,295 (397 ) 54,279 (1,606 ) 90,574 (2,003 ) Total temporarily impaired $ 66,896 (1,016 ) 61,133 (1,758 ) 128,029 (2,774 ) Securities held-to-maturity: Mortgage-backed securities $ 3,692 (37 ) - - 3,692 (37 ) |
Loans and Allowance for Loan 22
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 (In Thousands) Residential real estate: Mortgage $ 137,884 123,478 Multi-family 10,378 10,048 Commercial and industrial 357,061 312,382 Commercial real estate 317,095 282,698 Construction and land development 120,128 105,886 Consumer 15,125 11,796 Other 1,150 799 Total loans 958,821 847,087 Net deferred loan origination costs and fees (1,304 ) (1,266 ) Less allowance for loan losses (10,889 ) (10,061 ) Net loans $ 946,628 835,760 |
Summary of Loan Balances (Recorded Investment) by Segment as well as Risk Rating Category | The following tables present the loan balances (recorded investment) by segment as well as risk rating category as of March 31, 2016 and December 31, 2015: Pass Special Mention Substandard Non-accrual Doubtful Total Grade 1-5 Grade 6 Grade 7 Grade 8 Grade 9 Loans (In Thousands) March 31, 2016 Residential real estate: Mortgage $ 136,962 - 766 156 - 137,884 Multi-family 10,378 - - - - 10,378 Commercial and industrial 356,713 - 248 100 - 357,061 Commercial real estate 316,943 - - 152 - 317,095 Construction and land development 119,715 - 413 - - 120,128 Consumer 15,008 - 92 25 - 15,125 Other 1,150 - - - - 1,150 $ 956,869 - 1,519 433 - 958,821 Pass Special Mention Substandard Non-accrual Doubtful Total Grade 1-5 Grade 6 Grade 7 Grade 8 Grade 9 Loans (In Thousands) December 31, 2015 Residential real estate: Mortgage $ 122,497 - 737 244 - 123,478 Multi-family 10,048 - - - - 10,048 Commercial and industrial 311,944 - 310 128 - 312,382 Commercial real estate 282,546 - - 152 - 282,698 Construction and land development 105,462 - 424 - - 105,886 Consumer 11,770 - - 26 - 11,796 Other 799 - - - - 799 $ 845,066 - 1,471 550 - 847,087 |
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 March 31, 2016 and December 31, 2015 including the recorded investment on the balance sheet and the unpaid principal balance is shown below: At March 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance (In Thousands) Impaired loans with no recorded allowance: Residential real estate: Mortgage $ 156 171 - Commercial and industrial 100 101 - Commercial real estate 152 153 - Construction and land development 413 413 - Total 821 838 - Impaired loans with a recorded allowance: Residential real estate: Mortgage 301 301 60 Consumer 117 117 74 Total 418 418 134 Total impaired loans $ 1,239 1,256 134 At December 31, 2015 Recorded Investment Unpaid Principal Balance Related Allowance (In Thousands) Impaired loans with no recorded allowance: Residential real estate: Mortgage $ 244 259 - Commercial and industrial 128 129 - Commercial real estate 152 153 - Construction and land development 424 424 - Total 948 965 - Impaired loans with a recorded allowance: Residential real estate: Mortgage 272 272 61 Consumer 26 26 26 Total 298 298 87 Total impaired loans $ 1,246 1,263 87 Three Months Ended Three Months Ended March 31, 2016 March 31, 2015 Average Recorded Investment Interest Income Recognized (1) Average Recorded Investment Interest Income Recognized (1) (In Thousands) Impaired loans with no recorded allowance: Residential real estate: Mortgage $ 187 1 294 - Commercial and industrial 114 - 250 - Commercial real estate 152 - - - Construction and land development 419 5 - - Total 872 6 544 - Impaired loans with a recorded allowance: Residential real estate: Mortgage 271 4 193 - Commercial and industrial - - 234 - Construction and land development - - 706 7 Consumer 117 3 38 - Total 388 7 1,171 7 Total impaired loans $ 1,260 13 1,715 7 (1) Includes income recognized in earnings for impaired accruing loans only. All non-accrual loans did not have any interest recognized in the three months ended March 31, 2016 and 2015. |
Summary of Loan Segment Allocated Between Performing and Impaired Status | The following tables present past due balances at March 31, 2016 and December 31, 2015 and by loan segment allocated between performing and non-accrual status: 30-89 days past due and accruing 90 days or more past due and accruing Total past due and accruing Current and accruing Non-accrual Total Loans (In Thousands) March 31, 2016 Residential real estate: Mortgage $ - - - 137,728 156 137,884 Multi-family - - - 10,378 - 10,378 Commercial and industrial 122 - 122 356,839 100 357,061 Commercial real estate - - - 316,943 152 317,095 Construction and land development - - - 120,128 - 120,128 Consumer - - - 15,100 25 15,125 Other - - - 1,150 - 1,150 $ 122 - 122 958,266 433 958,821 30-89 days past due and accruing 90 days or more past due and accruing Total past due and accruing Current and accruing Non-accrual Total Loans (In Thousands) December 31, 2015 Residential real estate: Mortgage $ - - - 123,234 244 123,478 Multi-family - - - 10,048 - 10,048 Commercial and industrial 147 - 147 312,107 128 312,382 Commercial real estate - - - 282,546 152 282,698 Construction and land development - - - 105,886 - 105,886 Consumer - - - 11,770 26 11,796 Other - - - 799 - 799 $ 147 - 147 846,390 550 847,087 |
Summary of TDR Categorized by Loan Segment | The following table outlines the amount of each TDR categorized by loan segment made during the three months ended March 31, 2016: March 31, 2016 Number of contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment (In Thousands, Except Number of Contracts) Commercial and industrial 2 $ 100 100 Commercial real estate 1 152 152 Consumer 1 90 92 4 $ 342 344 |
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) March 31, 2016 Loans $ 137,884 10,378 357,061 317,095 120,128 15,125 1,150 958,821 Loans individually evaluated for impairment 457 - 100 152 413 117 - 1,239 Loans collectively evaluated for impairment 137,427 10,378 356,961 316,943 119,715 15,008 1,150 957,582 Loans acquired with deteriorated credit quality - - - - - - - - December 31, 2015 Loans $ 123,478 10,048 312,382 282,698 105,886 11,796 799 847,087 Loans individually evaluated for impairment 516 - 128 152 424 26 - 1,246 Loans collectively evaluated for impairment 122,962 10,048 312,254 282,546 105,462 11,770 799 845,841 Loans acquired with deteriorated credit quality - - - - - - - - |
Summary of Roll Forward of Allowance for Loan Losses | The following table provides a roll forward of the allowance for loan losses from December 31, 2014 to March 31, 2015 and December 31, 2015 to March 31, 2016 by loan segment: Residential Real-Estate Commercial and Industrial Commercial Real Estate Construction and Land Development Consumer Other Total (In Thousands) Balances, December 31, 2015 $ 1,329 3,191 2,940 2,512 85 4 10,061 Charged-off loans - - - - - - - Recovery of previously charged-off loans - 51 - 3 - - 54 Provision for loan losses 329 (134 ) 481 27 67 4 774 Balances, March 31, 2016 $ 1,658 3,108 3,421 2,542 152 8 10,889 Balances, December 31, 2014 $ 1,244 2,402 3,131 1,675 62 4 8,518 Charged-off loans - (75 ) - - - - (75 ) Recovery of previously charged-off loans - - - 72 - - 72 Provision for loan losses 47 (38 ) 168 (39 ) 16 - 154 Balances, March 31, 2015 $ 1,291 2,289 3,299 1,708 78 4 8,669 The following table presents the balance in the allowance for loan losses by loan segment based on impairment method: Residential Real-Estate Commercial and Industrial Commercial Real Estate Construction and Land Development Consumer Other Total (In Thousands) Balances, March 31, 2016 Allowance for loans individually evaluated for impairment $ 60 - - - 74 - 134 Allowance for loans collectively evaluated for impairment $ 1,598 3,108 3,421 2,542 78 8 10,755 Balances, December 31, 2015 Allowance for loans individually evaluated for impairment $ 61 - - - 26 - 87 Allowance for loans collectively evaluated for impairment $ 1,268 3,191 2,940 2,512 59 4 9,974 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 is included in the following table: Notional Amount Estimated Fair Value Included in Other Assets Estimated Fair Value Included in Other Liabilities (In Thousands) Interest rate swap agreements: Pay fixed / Receive variable swaps – March 31, 2016 $ 32,398 1,094 1,094 Pay fixed / Receive variable swaps – December 31, 2015 18,443 417 417 |
Schedule of Individual Contracts Within the Existing Relationship | The terms of the individual contracts within the existing relationship at March 31, 2016 and December 31, 2015 is as follows: March 31, 2016 December 31, 2015 Forecasted Notional Amount Receive Rate Pay Rate Term Other Liabilities Unrealized (Gain) Loss in Accumulated Other Comprehensive (Loss) Income Other Liabilities Unrealized (Gain) Loss in Accumulated Other Comprehensive (Loss) Income (Dollars in Thousands) Interest Rate Swap $ - 1 month LIBOR plus 35 basis points 2.99 % Nov. 2015 - May 2021 $ - 224 - 236 Interest Rate Swap 10,000 1 month LIBOR plus 35 basis points 2.98 May 2016 - May 2021 764 472 472 292 Interest Rate Swap 10,000 1 month LIBOR plus 35 basis points 3.03 March 2017 - May 2021 611 377 341 210 Interest Rate Swap 25,000 1.50 1 month LIBOR April 2015 - April 2022 (522 ) (322 ) (272 ) (168 ) $ 45,000 $ 853 751 541 570 |
Fair Value of Financial Instr24
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015, 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) March 31, 2016 Investment securities (AFS) U.S. government agencies $ 15,120 - 15,120 - State and municipal securities 45,747 - 45,747 - Corporate notes 12,760 - 12,760 - Mortgage-backed securities 89,588 - 89,588 - Total investment securities available-for-sale 163,215 - 163,215 - Derivative assets 1,094 - 1,094 - Total assets at fair value $ 164,309 - 164,309 - Derivative liabilities $ 1,947 - 1,947 - Total liabilities at fair value $ 1,947 - 1,947 - 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, 2015 Investment securities (AFS) U.S. government agencies $ 40,826 - 40,826 - State and municipal securities 47,736 - 47,736 - Corporate notes 12,587 - 12,587 - Mortgage-backed securities 108,425 - 108,425 - Total investment securities available-for-sale 209,574 - 209,574 - Derivative assets 417 - 417 - Total assets at fair value $ 209,991 - 209,991 - Derivative liabilities $ 958 - 958 - Total liabilities at fair value $ 958 - 958 - |
Quantitative Information about Unobservable Inputs Used In Recurring and Nonrecurring Level 3 Fair Value Measurements | The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring level 3 fair value measurements at March 31, 2016 and December 31, 2015: Fair value Valuation Technique Unobservable Inputs Range (weighted average) (In Thousands) March 31, 2016 Impaired loans (collateral dependent) $ 156 Discounted appraisals Appraisal adjustments 11% (11%) December 31, 2015 Impaired loans (collateral dependent) $ 1,159 Discounted appraisals Appraisal adjustments 10% - 21% (14%) Other real estate owned $ 268 Discounted appraisals Appraisal adjustments 6% (6%) |
Summary of Estimated Fair Values of Financial Instruments | The estimated fair values of financial instruments at March 31, 2016 and December 31, 2015 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) March 31, 2016 Financial assets: Cash and due from banks $ 24,671 24,671 24,671 - - Federal funds sold 1,220 1,220 1,220 - - Interest-bearing time deposits in banks 216 216 216 - - Securities available-for-sale 163,215 163,215 - 163,215 - Securities held-to-maturity 11,913 11,981 - 6,481 5,500 Mortgage loans held-for-sale 4,583 4,612 - 4,612 - Loans, net 946,628 941,101 - - 941,101 Financial liabilities: Deposits 966,496 967,122 788,566 178,556 - Federal funds purchased 3,001 3,001 3,001 - - Federal home loan bank advances 105,500 105,635 - 105,635 - Subordinated debt 19,628 20,000 - - 20,000 Off-balance sheet instruments: Commitments to extend credit 311,153 - - - - Standby letters of credit 11,375 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, 2015 Financial assets: Cash and due from banks $ 34,479 34,479 34,479 - - Federal funds sold 675 675 675 - - Interest-bearing time deposits in banks 216 216 216 - - Securities available-for-sale 209,574 209,574 - 209,574 - Securities held-to-maturity 11,937 11,964 - 6,464 5,500 Mortgage loans held-for-sale 19,441 19,584 - 19,584 - Loans, net 835,760 831,313 - - 831,313 Financial liabilities: Deposits 969,603 969,790 842,951 126,839 - Federal home loan bank advances 68,000 68,007 - 68,007 - Subordinated debt 19,617 20,000 - - 20,000 Off-balance sheet instruments: Commitments to extend credit 310,209 - - - - Standby letters of credit 10,829 55 - - 55 |
Commitments and Contingent Li25
Commitments and Contingent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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: March 31, December 31, 2016 2015 (In Thousands) Commitments to extend credit and unfunded commitments $ 311,153 310,209 Standby letters of credit 11,375 10,829 |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) | Significant amounts reclassified out of Accumulated other comprehensive income (loss) for the three months ended March 31, 2016 and 2015 are as follows: Three Months Ended March 31, Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Items in the Consolidated Statements of Income 2016 2015 (In Thousands) Gains realized on sale of investment securities Net gain on sale of available-for-sale securities $ 228 - Tax effect Income tax expense (87 ) - Loss realized on termination of cash flow hedge Interest expense: deposits 18 - Tax effect Income tax expense (7 ) - Total reclassifications out of accumulated other comprehensive income $ 152 - |
Schedule of Activity in Accumulated Other Comprehensive Income (Loss) | The activity in accumulated other comprehensive income (loss) for the three months ended March 31, 2016 and 2015 is as follows: 2016 2015 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, January 1 $ (2,061 ) (570 ) (2,631 ) (2,108 ) (377 ) (2,485 ) Other comprehensive income (loss) before reclassifications 1,925 (192 ) 1,733 1,639 (511 ) 1,128 Amounts reclassified from accumulated other comprehensive loss 141 11 152 - - - Period Change 2,066 (181 ) 1,885 1,639 (511 ) 1,128 Ending Balance, March 31 $ 5 (751 ) (746 ) (469 ) (888 ) (1,357 ) |
Summary of Significant Accoun27
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | ||||
Debt issuance costs | $ 404,000 | |||
Antidilutive stock options calculated under treasury stock methods | 0 | 0 | ||
Incremental borrowing rate | 5.59% | |||
Percentage of change in present value of lease payments | 90.00% | |||
Decrease in net income | $ 4,000 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies - Summary of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Basic earnings per share calculation: | ||
Numerator - Net income available to common stockholders | $ 1,413 | $ 1,422 |
Denominator – Weighted average common shares outstanding | 10,152,331 | 9,319,312 |
Basic net income per common share available to common stockholders | $ 0.14 | $ 0.15 |
Diluted earnings per share calculation: | ||
Numerator - Net income available to common stockholders | $ 1,413 | $ 1,422 |
Denominator – Weighted average common shares outstanding | 10,152,331 | 9,319,312 |
Average diluted common shares outstanding | 188,184 | 116,053 |
Weighted average common shares outstanding | 10,340,515 | 9,435,365 |
Diluted net income per common share available to common stockholders | $ 0.14 | $ 0.15 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies - Summary of Adjustments and Related Tax Impact on Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Consolidated Statement of Income | ||
Obligation under capital lease agreement | $ 71 | $ 73 |
Total interest expense | 1,642 | 1,342 |
Net interest income | 9,011 | 7,493 |
Net interest income after provision for loan losses | 8,237 | 7,339 |
Equipment and occupancy | 762 | 774 |
Total noninterest expenses | 8,007 | 6,408 |
Income before taxes | 2,139 | 2,187 |
Income tax expense | 726 | 733 |
Net income | 1,413 | 1,454 |
Net income available to common stockholders | $ 1,413 | $ 1,422 |
Earnings per share-basic | $ 0.14 | $ 0.15 |
Earnings per share-diluted | $ 0.14 | $ 0.15 |
Condensed Consolidated Statement of Comprehensive Income | ||
Net income | $ 1,413 | $ 1,454 |
Comprehensive income | 3,298 | 2,582 |
Condensed Consolidated Statement of Cash Flows | ||
Net income | 1,413 | 1,454 |
Deferred tax expense | 218 | (36) |
Depreciation and amortization of premises and equipment | 268 | 303 |
Decrease in other liabilities | $ (1,301) | (1,387) |
Principal payments of capital lease obligation | (31) | |
As Previously Reported | ||
Condensed Consolidated Statement of Income | ||
Total interest expense | 1,269 | |
Net interest income | 7,566 | |
Net interest income after provision for loan losses | 7,412 | |
Equipment and occupancy | 840 | |
Total noninterest expenses | 6,474 | |
Income before taxes | 2,194 | |
Income tax expense | 736 | |
Net income | 1,458 | |
Net income available to common stockholders | $ 1,426 | |
Earnings per share-basic | $ 0.15 | |
Earnings per share-diluted | $ 0.15 | |
Condensed Consolidated Statement of Comprehensive Income | ||
Net income | $ 1,458 | |
Comprehensive income | 2,586 | |
Condensed Consolidated Statement of Cash Flows | ||
Net income | 1,458 | |
Deferred tax expense | (33) | |
Depreciation and amortization of premises and equipment | 247 | |
Decrease in other liabilities | (1,369) | |
Revision | ||
Condensed Consolidated Statement of Income | ||
Obligation under capital lease agreement | 73 | |
Total interest expense | 73 | |
Net interest income | 73 | |
Net interest income after provision for loan losses | 73 | |
Equipment and occupancy | (66) | |
Total noninterest expenses | (66) | |
Income before taxes | (7) | |
Income tax expense | (3) | |
Net income | (4) | |
Net income available to common stockholders | (4) | |
Condensed Consolidated Statement of Comprehensive Income | ||
Net income | (4) | |
Comprehensive income | (4) | |
Condensed Consolidated Statement of Cash Flows | ||
Net income | (4) | |
Deferred tax expense | (3) | |
Depreciation and amortization of premises and equipment | 56 | |
Decrease in other liabilities | (18) | |
Principal payments of capital lease obligation | $ (31) |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Fair Value of Securities Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Securities available-for-sale: | ||
Available for Sale, Amortized Cost | $ 161,432 | $ 210,921 |
Available for Sale, Gross Unrealized Gains | 2,239 | 1,427 |
Available for Sale Gross Unrealized Losses | 456 | 2,774 |
Securities available-for-sale, at fair value | 163,215 | 209,574 |
Securities held-to-maturity: | ||
Held to Maturity, Amortized Cost | 11,913 | 11,937 |
Held to Maturity, Gross Unrealized Gains | 68 | 64 |
Held to Maturity, Gross Unrealized Losses | 37 | |
Held-to-maturity securities, fair value | 11,981 | 11,964 |
U.S. Government Agencies Securities | ||
Securities available-for-sale: | ||
Available for Sale, Amortized Cost | 15,062 | 41,340 |
Available for Sale, Gross Unrealized Gains | 58 | 128 |
Available for Sale Gross Unrealized Losses | 642 | |
Securities available-for-sale, at fair value | 15,120 | 40,826 |
State and Municipal Securities | ||
Securities available-for-sale: | ||
Available for Sale, Amortized Cost | 44,417 | 46,830 |
Available for Sale, Gross Unrealized Gains | 1,334 | 964 |
Available for Sale Gross Unrealized Losses | 4 | 58 |
Securities available-for-sale, at fair value | 45,747 | 47,736 |
Securities held-to-maturity: | ||
Held to Maturity, Amortized Cost | 8,206 | 8,208 |
Held to Maturity, Gross Unrealized Gains | 48 | 64 |
Held-to-maturity securities, fair value | 8,254 | 8,272 |
Corporate Notes | ||
Securities available-for-sale: | ||
Available for Sale, Amortized Cost | 12,633 | 12,658 |
Available for Sale, Gross Unrealized Gains | 137 | |
Available for Sale Gross Unrealized Losses | 10 | 71 |
Securities available-for-sale, at fair value | 12,760 | 12,587 |
Mortgage-Backed Securities | ||
Securities available-for-sale: | ||
Available for Sale, Amortized Cost | 89,320 | 110,093 |
Available for Sale, Gross Unrealized Gains | 710 | 335 |
Available for Sale Gross Unrealized Losses | 442 | 2,003 |
Securities available-for-sale, at fair value | 89,588 | 108,425 |
Securities held-to-maturity: | ||
Held to Maturity, Amortized Cost | 3,707 | 3,729 |
Held to Maturity, Gross Unrealized Gains | 20 | |
Held to Maturity, Gross Unrealized Losses | 37 | |
Held-to-maturity securities, fair value | $ 3,727 | $ 3,692 |
Securities - Schedule of Gross
Securities - Schedule of Gross Realized Gains and Losses from Security Sales (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Investments Debt And Equity Securities [Abstract] | |
Gross realized gains | $ 279 |
Gross realized losses | $ (51) |
Securities - Additional Informa
Securities - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Proceeds from sale of securities | $ 41,212,000 | ||
Security sales | $ 0 | ||
Amortized cost | 161,432,000 | $ 210,921,000 | |
Securities pledged as collateral, fair value | $ 25,800,000 | $ 24,500,000 | |
Aggregate book value exceeded stockholders' equity | 10.00% | 10.00% | |
Unrealized losses on available-for-sale and held-to-maturity securities | $ (456,000) | $ (2,774,000) | |
Available-for-sale and held-to-maturity securities fair value | 47,500,000 | ||
Available For Sale Securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 25,900,000 | $ 24,700,000 |
Securities - Schedule of Amor33
Securities - Schedule of Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Available-for-sale | ||
Due in one year or less, Amortized Cost | $ 1,829 | |
Due in one year to five years, Amortized Cost | 17,083 | |
Due in five years to ten years, Amortized Cost | 26,506 | |
Due after ten years, Amortized Cost | 26,694 | |
Mortgage-backed securities, Amortized Cost | 89,320 | |
Available-for-sale, Amortized Cost | 161,432 | |
Available-for-sale | ||
Due in one year or less, Fair Value | 1,833 | |
Due in one year to five years, Fair Value | 17,345 | |
Due in five years to ten years, Fair Value | 27,078 | |
Due after ten years, Fair Value | 27,371 | |
Mortgage-backed securities, Fair Value | 89,588 | |
Available-for-sale, Fair Value | 163,215 | $ 209,574 |
Held-to-maturity | ||
Due in five years to ten years, Amortized Cost | 1,503 | |
Due after ten years, Amortized Cost | 6,703 | |
Mortgage-backed securities, Amortized Cost | 3,707 | |
Held to Maturity, Amortized Cost | 11,913 | 11,937 |
Held-to-maturity | ||
Due in five years to ten years, Fair Value | 1,527 | |
Due after ten years, Fair Value | 6,727 | |
Mortgage-backed securities, Fair Value | 3,727 | |
Held-to-maturity, Fair Value | $ 11,981 | $ 11,964 |
Securities - Schedule of Unreal
Securities - Schedule of Unrealized Losses of Securities Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Securities available-for-sale: | ||
Investments with an Unrealized Loss of less than 12 months, Fair value | $ 4,593 | $ 66,896 |
Investments with an Unrealized Loss of less than 12 months, Unrealized losses | (12) | (1,016) |
Investments with an Unrealized Loss 12 months or longer, Fair value | 42,873 | 61,133 |
Investments with an Unrealized Loss 12 months or longer, Unrealized losses | (444) | (1,758) |
Total Investments with an Unrealized Loss, Fair value | 47,466 | 128,029 |
Total Investments with an Unrealized Loss, Unrealized losses | (456) | (2,774) |
U.S. Government Agencies Securities | ||
Securities available-for-sale: | ||
Investments with an Unrealized Loss of less than 12 months, Fair value | 14,384 | |
Investments with an Unrealized Loss of less than 12 months, Unrealized losses | (534) | |
Investments with an Unrealized Loss 12 months or longer, Fair value | 4,892 | |
Investments with an Unrealized Loss 12 months or longer, Unrealized losses | (108) | |
Total Investments with an Unrealized Loss, Fair value | 19,276 | |
Total Investments with an Unrealized Loss, Unrealized losses | (642) | |
State and Municipal Securities | ||
Securities available-for-sale: | ||
Investments with an Unrealized Loss of less than 12 months, Fair value | 303 | 3,630 |
Investments with an Unrealized Loss of less than 12 months, Unrealized losses | (2) | (14) |
Investments with an Unrealized Loss 12 months or longer, Fair value | 538 | 1,962 |
Investments with an Unrealized Loss 12 months or longer, Unrealized losses | (2) | (44) |
Total Investments with an Unrealized Loss, Fair value | 841 | 5,592 |
Total Investments with an Unrealized Loss, Unrealized losses | (4) | (58) |
Corporate Notes | ||
Securities available-for-sale: | ||
Investments with an Unrealized Loss of less than 12 months, Fair value | 4,290 | 12,587 |
Investments with an Unrealized Loss of less than 12 months, Unrealized losses | (10) | (71) |
Total Investments with an Unrealized Loss, Fair value | 4,290 | 12,587 |
Total Investments with an Unrealized Loss, Unrealized losses | (10) | (71) |
Mortgage-Backed Securities | ||
Securities available-for-sale: | ||
Investments with an Unrealized Loss of less than 12 months, Fair value | 36,295 | |
Investments with an Unrealized Loss of less than 12 months, Unrealized losses | (397) | |
Investments with an Unrealized Loss 12 months or longer, Fair value | 42,335 | 54,279 |
Investments with an Unrealized Loss 12 months or longer, Unrealized losses | (442) | (1,606) |
Total Investments with an Unrealized Loss, Fair value | 42,335 | 90,574 |
Total Investments with an Unrealized Loss, Unrealized losses | $ (442) | (2,003) |
Securities held-to-maturity: | ||
Investments with an Unrealized Loss of less than 12 months, Fair value | 3,692 | |
Investments with an Unrealized Loss of less than 12 months, Unrealized losses | (37) | |
Total Investments with an Unrealized Loss, Fair value | 3,692 | |
Total Investments with an Unrealized Loss, Unrealized losses | $ (37) |
Loans and Allowance for Loan 35
Loans and Allowance for Loan Losses - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016USD ($)SegmentLoan | Mar. 31, 2015USD ($)Loan | Dec. 31, 2015USD ($) | |
Loans [Line Items] | |||
Number of loan segments | Segment | 6 | ||
Principal balance of impaired loans | $ 1,239,000 | $ 1,246,000 | |
Loans past due 30 days | 122,000 | 147,000 | |
Non-accrual status | 433,000 | 550,000 | |
Accruing status interest amount | $ 4,000 | 2,000 | |
TDR Categorized | Loan | 4 | ||
Loans restructured or modified | $ 344,000 | $ 0 | |
Troubled debt restructurings reported loans | 424,000 | ||
Additional loans modified as TDRs | $ 342,000 | ||
Number of TDRs were foreclosed upon or paid off | Loan | 0 | 0 | |
Commitment to lend additional funds | $ 0 | $ 0 | |
Charged-off loans | 75,000 | ||
Mortgage loans held for sale | 4,600,000 | 19,400,000 | |
Portfolio loans held for sale | 13,000,000 | 11,200,000 | |
Gain on portfolio loans held for sale | 256,000 | 236,000 | |
Home equity and consumer mortgage loans | |||
Loans [Line Items] | |||
Secured debt | 137,900,000 | ||
Avenue Bank | |||
Loans [Line Items] | |||
Gain on portfolio loans held for sale | 256,000 | 236,000 | |
Maximum | Financing Receivables Equal to Greater than 120 Days Past Due | |||
Loans [Line Items] | |||
Charged-off loans | 25,000 | ||
Commercial And Industrial | |||
Loans [Line Items] | |||
Non-accrual status | $ 100,000 | $ 128,000 | |
TDR Categorized | Loan | 2 | ||
Loans restructured or modified | $ 100,000 | ||
Additional loans modified as TDRs | $ 100,000 | ||
Charged-off loans | $ 75,000 | ||
Construction and Land Development | |||
Loans [Line Items] | |||
Allowance for loan losses look back period | 6 years | 5 years | |
Secondary Market | |||
Loans [Line Items] | |||
Mortgage loans held for sale | $ 1,600,000 | $ 5,200,000 | |
Loans saleable term | two to four weeks of loan closing | ||
Portfolio | |||
Loans [Line Items] | |||
Mortgage loans held for sale | $ 3,000,000 | 14,200,000 | |
Loans saleable term | one year | ||
Commercial Loan | |||
Loans [Line Items] | |||
Percentage of loan portfolio | 70.00% | ||
Consumer Loan | |||
Loans [Line Items] | |||
Non-accrual status | $ 25,000 | 26,000 | |
TDR Categorized | Loan | 1 | ||
Loans restructured or modified | $ 92,000 | ||
Additional loans modified as TDRs | 90,000 | ||
Commercial Real Estate | |||
Loans [Line Items] | |||
Non-accrual status | $ 152,000 | $ 152,000 | |
TDR Categorized | Loan | 1 | ||
Loans restructured or modified | $ 152,000 | ||
Additional loans modified as TDRs | $ 152,000 |
Loans and Allowance for Loan 36
Loans and Allowance for Loan Losses - Summary of Loans Outstanding by Segment and Class (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total loans | $ 958,821 | $ 847,087 | ||
Net deferred loan origination costs and fees | (1,304) | (1,266) | ||
Less allowance for loan losses | (10,889) | (10,061) | $ (8,669) | $ (8,518) |
Net loans | 946,628 | 835,760 | ||
Residential Multi-family | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total loans | 10,378 | 10,048 | ||
Commercial And Industrial | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total loans | 357,061 | 312,382 | ||
Less allowance for loan losses | (3,108) | (3,191) | (2,289) | (2,402) |
Construction and Land Development | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total loans | 120,128 | 105,886 | ||
Less allowance for loan losses | (2,542) | (2,512) | (1,708) | (1,675) |
Residential Mortgage | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total loans | 137,884 | 123,478 | ||
Commercial Real Estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total loans | 317,095 | 282,698 | ||
Less allowance for loan losses | (3,421) | (2,940) | (3,299) | (3,131) |
Consumer Loan | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total loans | 15,125 | 11,796 | ||
Less allowance for loan losses | (152) | (85) | (78) | (62) |
Other | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total loans | 1,150 | 799 | ||
Less allowance for loan losses | $ (8) | $ (4) | $ (4) | $ (4) |
Loans and Allowance for Loan 37
Loans and Allowance for Loan Losses - Summary of Loan Balances (Recorded Investment) by Segment as well as Risk Rating Category (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 958,821 | $ 847,087 |
Residential Multi-family | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 10,378 | 10,048 |
Commercial And Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 357,061 | 312,382 |
Construction and Land Development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 120,128 | 105,886 |
Residential Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 137,884 | 123,478 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 317,095 | 282,698 |
Consumer Loan | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 15,125 | 11,796 |
Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,150 | 799 |
Pass | Grade 1-5 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 956,869 | 845,066 |
Pass | Residential Multi-family | Grade 1-5 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 10,378 | 10,048 |
Pass | Commercial And Industrial | Grade 1-5 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 356,713 | 311,944 |
Pass | Construction and Land Development | Grade 1-5 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 119,715 | 105,462 |
Pass | Residential Mortgage | Grade 1-5 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 136,962 | 122,497 |
Pass | Commercial Real Estate | Grade 1-5 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 316,943 | 282,546 |
Pass | Consumer Loan | Grade 1-5 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 15,008 | 11,770 |
Pass | Other | Grade 1-5 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,150 | 799 |
Substandard | Grade 7 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,519 | 1,471 |
Substandard | Commercial And Industrial | Grade 7 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 248 | 310 |
Substandard | Construction and Land Development | Grade 7 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 413 | 424 |
Substandard | Residential Mortgage | Grade 7 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 766 | 737 |
Substandard | Consumer Loan | Grade 7 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 92 | |
Non-accrual | Grade 8 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 433 | 550 |
Non-accrual | Commercial And Industrial | Grade 8 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 100 | 128 |
Non-accrual | Residential Mortgage | Grade 8 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 156 | 244 |
Non-accrual | Commercial Real Estate | Grade 8 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 152 | 152 |
Non-accrual | Consumer Loan | Grade 8 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 25 | $ 26 |
Loans and Allowance for Loan 38
Loans and Allowance for Loan Losses - Summary of Recorded Investment on the Balance Sheet and the Unpaid Principal Balance (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||
Financing Receivable Impaired [Line Items] | ||||
Total Impaired loans, recorded investment | $ 1,239 | $ 1,246 | ||
Total Impaired loans, unpaid principal balance | 1,256 | 1,263 | ||
Impaired loans with a recorded allowance, related allowance | 134 | 87 | ||
Impaired loans with a recorded allowance, unpaid principal balance | 1,100 | 1,200 | ||
Impaired loans with no recorded allowance, recorded investment | 821 | 948 | ||
Impaired loans with no recorded allowance, unpaid principal balance | 838 | 965 | ||
Impaired loans with no recorded allowance, average recorded investment | 872 | $ 544 | ||
Impaired loans with no recorded allowance, interest income recognized | [1] | 6 | ||
Impaired Loans With Recorded Allowance | ||||
Financing Receivable Impaired [Line Items] | ||||
Impaired loans with a recorded allowance, related allowance | 134 | 87 | ||
Impaired loans with a recorded allowance, recorded investment | 418 | 298 | ||
Impaired loans with a recorded allowance, unpaid principal balance | 418 | 298 | ||
Impaired loans with a recorded allowance, average recorded investment | 388 | 1,171 | ||
Impaired loans with a recorded allowance, interest income recognized | [1] | 7 | 7 | |
Commercial And Industrial | ||||
Financing Receivable Impaired [Line Items] | ||||
Impaired loans with no recorded allowance, recorded investment | 100 | 128 | ||
Impaired loans with no recorded allowance, unpaid principal balance | 101 | 129 | ||
Impaired loans with no recorded allowance, average recorded investment | 114 | 250 | ||
Impaired loans with a recorded allowance, average recorded investment | 234 | |||
Construction and Land Development | ||||
Financing Receivable Impaired [Line Items] | ||||
Impaired loans with no recorded allowance, recorded investment | 413 | 424 | ||
Impaired loans with no recorded allowance, unpaid principal balance | 413 | 424 | ||
Impaired loans with no recorded allowance, average recorded investment | 419 | |||
Impaired loans with no recorded allowance, interest income recognized | [1] | 5 | ||
Impaired loans with a recorded allowance, average recorded investment | 706 | |||
Impaired loans with a recorded allowance, interest income recognized | [1] | 7 | ||
Residential Mortgage | ||||
Financing Receivable Impaired [Line Items] | ||||
Impaired loans with a recorded allowance, related allowance | 60 | 61 | ||
Impaired loans with a recorded allowance, recorded investment | 301 | 272 | ||
Impaired loans with a recorded allowance, unpaid principal balance | 301 | 272 | ||
Impaired loans with no recorded allowance, recorded investment | 156 | 244 | ||
Impaired loans with no recorded allowance, unpaid principal balance | 171 | 259 | ||
Impaired loans with no recorded allowance, average recorded investment | 187 | 294 | ||
Impaired loans with no recorded allowance, interest income recognized | [1] | 1 | ||
Impaired loans with a recorded allowance, average recorded investment | 271 | 193 | ||
Impaired loans with a recorded allowance, interest income recognized | [1] | 4 | ||
Consumer Loan | ||||
Financing Receivable Impaired [Line Items] | ||||
Impaired loans with a recorded allowance, related allowance | 74 | 26 | ||
Impaired loans with a recorded allowance, recorded investment | 117 | 26 | ||
Impaired loans with a recorded allowance, unpaid principal balance | 117 | 26 | ||
Impaired loans with a recorded allowance, average recorded investment | 117 | $ 38 | ||
Impaired loans with a recorded allowance, interest income recognized | [1] | 3 | ||
Commercial Real Estate | ||||
Financing Receivable Impaired [Line Items] | ||||
Impaired loans with no recorded allowance, recorded investment | 152 | 152 | ||
Impaired loans with no recorded allowance, unpaid principal balance | 153 | $ 153 | ||
Impaired loans with no recorded allowance, average recorded investment | $ 152 | |||
[1] | Includes income recognized in earnings for impaired accruing loans only. All non-accrual loans did not have any interest recognized in the three months ended March 31, 2016 and 2015. |
Loans and Allowance for Loan 39
Loans and Allowance for Loan Losses - Summary of Loan Segment Allocated Between Performing and Impaired Status (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
30-89 days past due and accruing | $ 122 | $ 147 |
Total past due and accruing | 122 | 147 |
Current and accruing | 958,266 | 846,390 |
Non-accrual | 433 | 550 |
Total Loans | 958,821 | 847,087 |
Residential Multi-family | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current and accruing | 10,378 | 10,048 |
Total Loans | 10,378 | 10,048 |
Commercial And Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
30-89 days past due and accruing | 122 | 147 |
Total past due and accruing | 122 | 147 |
Current and accruing | 356,839 | 312,107 |
Non-accrual | 100 | 128 |
Total Loans | 357,061 | 312,382 |
Construction and Land Development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current and accruing | 120,128 | 105,886 |
Total Loans | 120,128 | 105,886 |
Residential Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current and accruing | 137,728 | 123,234 |
Non-accrual | 156 | 244 |
Total Loans | 137,884 | 123,478 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current and accruing | 316,943 | 282,546 |
Non-accrual | 152 | 152 |
Total Loans | 317,095 | 282,698 |
Consumer Loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current and accruing | 15,100 | 11,770 |
Non-accrual | 25 | 26 |
Total Loans | 15,125 | 11,796 |
Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current and accruing | 1,150 | 799 |
Total Loans | $ 1,150 | $ 799 |
Loans and Allowance for Loan 40
Loans and Allowance for Loan Losses - Summary of TDR Categorized by Loan Segment (Details) | 3 Months Ended | |
Mar. 31, 2016USD ($)Loan | Mar. 31, 2015USD ($) | |
Financing Receivable Modifications [Line Items] | ||
Number of contracts | Loan | 4 | |
Pre- Modification Outstanding Recorded Investment | $ 342,000 | |
Post- Modification Outstanding Recorded Investment | $ 344,000 | $ 0 |
Commercial And Industrial | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | Loan | 2 | |
Pre- Modification Outstanding Recorded Investment | $ 100,000 | |
Post- Modification Outstanding Recorded Investment | $ 100,000 | |
Commercial Real Estate | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | Loan | 1 | |
Pre- Modification Outstanding Recorded Investment | $ 152,000 | |
Post- Modification Outstanding Recorded Investment | $ 152,000 | |
Consumer Loan | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | Loan | 1 | |
Pre- Modification Outstanding Recorded Investment | $ 90,000 | |
Post- Modification Outstanding Recorded Investment | $ 92,000 |
Loans and Allowance for Loan 41
Loans and Allowance for Loan Losses - Summary of Recorded Investment Loan Segment Based on Impaired Method (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Loans | $ 958,821 | $ 847,087 |
Loans individually evaluated for impairment | 1,239 | 1,246 |
Loans collectively evaluated for impairment | 957,582 | 845,841 |
Loans acquired with deteriorated credit quality | 946,628 | 835,760 |
Residential Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Loans | 137,884 | 123,478 |
Loans individually evaluated for impairment | 457 | 516 |
Loans collectively evaluated for impairment | 137,427 | 122,962 |
Commercial Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Loans | 317,095 | 282,698 |
Loans individually evaluated for impairment | 152 | 152 |
Loans collectively evaluated for impairment | 316,943 | 282,546 |
Consumer Loan | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Loans | 15,125 | 11,796 |
Loans individually evaluated for impairment | 117 | 26 |
Loans collectively evaluated for impairment | 15,008 | 11,770 |
Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Loans | 1,150 | 799 |
Loans collectively evaluated for impairment | 1,150 | 799 |
Residential Multi-family | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Loans | 10,378 | 10,048 |
Loans collectively evaluated for impairment | 10,378 | 10,048 |
Commercial And Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Loans | 357,061 | 312,382 |
Loans individually evaluated for impairment | 100 | 128 |
Loans collectively evaluated for impairment | 356,961 | 312,254 |
Construction and Land Development | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Loans | 120,128 | 105,886 |
Loans individually evaluated for impairment | 413 | 424 |
Loans collectively evaluated for impairment | $ 119,715 | $ 105,462 |
Loans and Allowance for Loan 42
Loans and Allowance for Loan Losses - Summary of Roll Forward of Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balances | $ 10,061 | $ 8,518 | |
Charged-off loans | (75) | ||
Recovery of previously charged-off loans | 54 | 72 | |
Provision for loan losses | 774 | 154 | |
Ending Balances | 10,889 | 8,669 | |
Allowance for loans individually evaluated for impairment | 134 | $ 87 | |
Allowance for loans collectively evaluated for impairment | 10,755 | 9,974 | |
Residential Real Estate | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balances | 1,329 | 1,244 | |
Provision for loan losses | 329 | 47 | |
Ending Balances | 1,658 | 1,291 | |
Allowance for loans individually evaluated for impairment | 60 | 61 | |
Allowance for loans collectively evaluated for impairment | 1,598 | 1,268 | |
Commercial Real Estate | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balances | 2,940 | 3,131 | |
Provision for loan losses | 481 | 168 | |
Ending Balances | 3,421 | 3,299 | |
Allowance for loans collectively evaluated for impairment | 3,421 | 2,940 | |
Consumer Loan | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balances | 85 | 62 | |
Provision for loan losses | 67 | 16 | |
Ending Balances | 152 | 78 | |
Allowance for loans individually evaluated for impairment | 74 | 26 | |
Allowance for loans collectively evaluated for impairment | 78 | 59 | |
Other | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balances | 4 | 4 | |
Provision for loan losses | 4 | ||
Ending Balances | 8 | 4 | |
Allowance for loans collectively evaluated for impairment | 8 | 4 | |
Commercial And Industrial | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balances | 3,191 | 2,402 | |
Charged-off loans | (75) | ||
Recovery of previously charged-off loans | 51 | ||
Provision for loan losses | (134) | (38) | |
Ending Balances | 3,108 | 2,289 | |
Allowance for loans collectively evaluated for impairment | 3,108 | 3,191 | |
Construction and Land Development | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balances | 2,512 | 1,675 | |
Recovery of previously charged-off loans | 3 | 72 | |
Provision for loan losses | 27 | (39) | |
Ending Balances | 2,542 | $ 1,708 | |
Allowance for loans collectively evaluated for impairment | $ 2,542 | $ 2,512 |
Derivatives - Summary of Intere
Derivatives - Summary of Interest Rate Swaps to Facilitate Customer Transactions (Details) - Not Designated as Hedging Instrument - Interest Rate Swap - Pay Fixed / Receive Variable Swaps - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Interest rate swap agreements [Abstract] | ||
Interest rate swap, Notional Amount | $ 32,398,000 | $ 18,443,000 |
Interest rate swap, Estimated Fair Value Included in Other Assets | 1,094,000 | 417,000 |
Interest rate swap, Estimated Fair Value Included in Other Liabilities | $ 1,094,000 | $ 417,000 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2016USD ($)Agreement | 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 | $ 44,000 | |
Not Designated as Hedging Instrument | Interest Rate Swap | ||
Derivative [Line Items] | ||
Number of delayed interest rate swap agreements held | Agreement | 3 | 3 |
Number of interest rate swap agreements terminated | Agreement | 1 | |
Number of interest rate swap agreements entered | Agreement | 1 | |
Not Designated as Hedging Instrument | Interest Rate Swap May 2021 | ||
Derivative [Line Items] | ||
Notional value of derivative instruments | $ 10,000,000 | |
Loss on derivative instruments | $ 393,000 | |
Derivative contract expiration date | 2021-05 | |
Derivative, term of contract | 66 months | |
Derivative instruments, description of terms | Beginning in November 2015 the loss is being recognized on the Consolidated Statements of Income over the original terms of the contract of 66 months and will conclude in May 2021 |
Derivatives - Schedule of Indiv
Derivatives - Schedule of Individual Contracts Within the Existing Relationship (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||
Interest Rate Swap, Forecasted Notional Amount | $ 45,000 | |
Interest Rate Swap, Pay Rate Type | 1 month LIBOR | |
Interest Rate Swap, Unrealized (Gain) Loss in Accumulated Other Comprehensive (Loss) Income | $ 751 | $ 570 |
Other Liabilities | ||
Derivative [Line Items] | ||
Interest Rate Swap | $ 853 | 541 |
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, Unrealized (Gain) Loss in Accumulated Other Comprehensive (Loss) Income | $ 224 | 236 |
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, Unrealized (Gain) Loss in Accumulated Other Comprehensive (Loss) Income | $ 472 | 292 |
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, May 2016 - May 2021 | Other Liabilities | ||
Derivative [Line Items] | ||
Interest Rate Swap | $ 764 | 472 |
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, Unrealized (Gain) Loss in Accumulated Other Comprehensive (Loss) Income | $ 377 | 210 |
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, March 2017 - May 2021 | Other Liabilities | ||
Derivative [Line Items] | ||
Interest Rate Swap | $ 611 | 341 |
Interest Rate Swap, April 2015 - April 2022 | ||
Derivative [Line Items] | ||
Interest Rate Swap, Forecasted Notional Amount | $ 25,000 | |
Interest Rate Swap, Receive Rate | 1.50% | |
Interest Rate Swap, Term, commencement date | 2015-04 | |
Interest Rate Swap, Term, expiration date | 2022-04 | |
Interest Rate Swap, Unrealized (Gain) Loss in Accumulated Other Comprehensive (Loss) Income | $ (322) | (168) |
Interest Rate Swap, April 2015 - April 2022 | Other Liabilities | ||
Derivative [Line Items] | ||
Interest Rate Swap | $ (522) | $ (272) |
Fair Value of Financial Instr46
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 | Mar. 31, 2016 | Dec. 31, 2015 |
Investment securities (AFS) | ||
Total investment securities available-for-sale | $ 163,215 | $ 209,574 |
Derivative assets | 1,094 | 417 |
Total assets at fair value | 164,309 | 209,991 |
Derivative liabilities | 1,947 | 958 |
Total liabilities at fair value | 1,947 | 958 |
U.S. Government Agencies Securities | ||
Investment securities (AFS) | ||
Total investment securities available-for-sale | 15,120 | 40,826 |
State and Municipal Securities | ||
Investment securities (AFS) | ||
Total investment securities available-for-sale | 45,747 | 47,736 |
Corporate Notes | ||
Investment securities (AFS) | ||
Total investment securities available-for-sale | 12,760 | 12,587 |
Mortgage-Backed Securities | ||
Investment securities (AFS) | ||
Total investment securities available-for-sale | 89,588 | 108,425 |
Models With Significant Observable Market Parameters (Level 2) | ||
Investment securities (AFS) | ||
Total investment securities available-for-sale | 163,215 | 209,574 |
Derivative assets | 1,094 | 417 |
Total assets at fair value | 164,309 | 209,991 |
Derivative liabilities | 1,947 | 958 |
Total liabilities at fair value | 1,947 | 958 |
Models With Significant Observable Market Parameters (Level 2) | U.S. Government Agencies Securities | ||
Investment securities (AFS) | ||
Total investment securities available-for-sale | 15,120 | 40,826 |
Models With Significant Observable Market Parameters (Level 2) | State and Municipal Securities | ||
Investment securities (AFS) | ||
Total investment securities available-for-sale | 45,747 | 47,736 |
Models With Significant Observable Market Parameters (Level 2) | Corporate Notes | ||
Investment securities (AFS) | ||
Total investment securities available-for-sale | 12,760 | 12,587 |
Models With Significant Observable Market Parameters (Level 2) | Mortgage-Backed Securities | ||
Investment securities (AFS) | ||
Total investment securities available-for-sale | $ 89,588 | $ 108,425 |
Fair Value of Financial Instr47
Fair Value of Financial Instruments - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2016USD ($)Security | Dec. 31, 2015USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Principal balance of impaired loans | $ 1,100,000 | $ 1,200,000 |
Fair value of impaired loans with recorded allowance | 60,000 | 61,000 |
Impaired loans, net fair value | 1,000,000 | 1,100,000 |
Other real estate owned, adjusted to fair value | $ 0 | 268,000 |
Number of transfers made between levels | Security | 0 | |
Estimated fair value | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Standby letters of credit | $ 58,000 | $ 55,000 |
Fair Value of Financial Instr48
Fair Value of Financial Instruments - Quantitative Information about Unobservable Inputs Used In Recurring and Nonrecurring Level 3 Fair Value Measurements(Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Principal balance of impaired loans | $ 1,239 | $ 1,246 |
Other real estate owned | 240 | 508 |
Fair Value Measurements Recurring And Nonrecurring | Fair Value Inputs Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Principal balance of impaired loans | $ 156 | 1,159 |
Other real estate owned | $ 268 | |
Fair Value Measurements Recurring And Nonrecurring | Fair Value Inputs Level 3 | Impaired loans (collateral dependent) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Valuation Technique | Discounted appraisals | Discounted appraisals |
Unobservable Inputs | Appraisal adjustments | Appraisal adjustments |
Range (weighted average) | 11.00% | |
Fair Value Measurements Recurring And Nonrecurring | Fair Value Inputs Level 3 | Impaired loans (collateral dependent) | Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Range (weighted average) | 10.00% | |
Fair Value Measurements Recurring And Nonrecurring | Fair Value Inputs Level 3 | Impaired loans (collateral dependent) | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Range (weighted average) | 21.00% | |
Fair Value Measurements Recurring And Nonrecurring | Fair Value Inputs Level 3 | Impaired loans (collateral dependent) | Weighted Average | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Range (weighted average) | 11.00% | 14.00% |
Fair Value Measurements Recurring And Nonrecurring | Fair Value Inputs Level 3 | Other Real Estate Owned | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Valuation Technique | Discounted appraisals | |
Unobservable Inputs | Appraisal adjustments | |
Fair Value Measurements Recurring And Nonrecurring | Fair Value Inputs Level 3 | Other Real Estate Owned | Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Range (weighted average) | 6.00% | |
Fair Value Measurements Recurring And Nonrecurring | Fair Value Inputs Level 3 | Other Real Estate Owned | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Range (weighted average) | 6.00% |
Fair Value of Financial Instr49
Fair Value of Financial Instruments - Summary of Estimated Fair Values of Financial Instruments (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Financial assets: | ||
Cash and due from banks | $ 24,671,000 | $ 34,479,000 |
Federal funds sold | 1,220,000 | 675,000 |
Interest-bearing time deposits in banks | 216,000 | 216,000 |
Securities available-for-sale, at fair value | 163,215,000 | 209,574,000 |
Securities held-to-maturity | 11,913,000 | 11,937,000 |
Financial liabilities: | ||
Federal funds purchased | 3,001,000 | |
Quoted Market Prices in an Active Market (Level 1) | ||
Financial assets: | ||
Cash and due from banks | 24,671,000 | 34,479,000 |
Federal funds sold | 1,220,000 | 675,000 |
Interest-bearing time deposits in banks | 216,000 | 216,000 |
Financial liabilities: | ||
Deposits | 788,566,000 | 842,951,000 |
Federal funds purchased | 3,001,000 | |
Models With Significant Observable Market Parameters (Level 2) | ||
Financial assets: | ||
Securities available-for-sale, at fair value | 163,215,000 | 209,574,000 |
Securities held-to-maturity | 6,481,000 | 6,464,000 |
Mortgage loans held-for-sale | 4,612,000 | 19,584,000 |
Financial liabilities: | ||
Deposits | 178,556,000 | 126,839,000 |
Federal home loan bank advances | 105,635,000 | 68,007,000 |
Models With Significant Unobservable Market Parameters (Level 3) | ||
Financial assets: | ||
Securities held-to-maturity | 5,500,000 | 5,500,000 |
Loans, net | 941,101,000 | 831,313,000 |
Financial liabilities: | ||
Subordinated debt | 20,000,000 | 20,000,000 |
Off-balance sheet instruments: | ||
Standby letters of credit | 58,000 | 55,000 |
Carrying amount | ||
Financial assets: | ||
Cash and due from banks | 24,671,000 | 34,479,000 |
Federal funds sold | 1,220,000 | 675,000 |
Interest-bearing time deposits in banks | 216,000 | 216,000 |
Securities available-for-sale, at fair value | 163,215,000 | 209,574,000 |
Securities held-to-maturity | 11,913,000 | 11,937,000 |
Mortgage loans held-for-sale | 4,583,000 | 19,441,000 |
Loans, net | 946,628,000 | 835,760,000 |
Financial liabilities: | ||
Deposits | 966,496,000 | 969,603,000 |
Federal funds purchased | 3,001,000 | |
Federal home loan bank advances | 105,500,000 | 68,000,000 |
Subordinated debt | 19,628,000 | 19,617,000 |
Off-balance sheet instruments: | ||
Commitments to extend credit | 311,153,000 | 310,209,000 |
Standby letters of credit | 11,375,000 | 10,829,000 |
Estimated fair value | ||
Financial assets: | ||
Cash and due from banks | 24,671,000 | 34,479,000 |
Federal funds sold | 1,220,000 | 675,000 |
Interest-bearing time deposits in banks | 216,000 | 216,000 |
Securities available-for-sale, at fair value | 163,215,000 | 209,574,000 |
Securities held-to-maturity | 11,981,000 | 11,964,000 |
Mortgage loans held-for-sale | 4,612,000 | 19,584,000 |
Loans, net | 941,101,000 | 831,313,000 |
Financial liabilities: | ||
Deposits | 967,122,000 | 969,790,000 |
Federal funds purchased | 3,001,000 | |
Federal home loan bank advances | 105,635,000 | 68,007,000 |
Subordinated debt | 20,000,000 | 20,000,000 |
Off-balance sheet instruments: | ||
Standby letters of credit | $ 58,000 | $ 55,000 |
Commitments and Contingent Li50
Commitments and Contingent Liabilities - Schedule of Financial Instruments Outstanding Contract Credit Risk (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Commitments to Extend Credit and Unfunded Commitments | ||
Loss Contingencies [Line Items] | ||
Financial instruments, outstanding contracts amounts represent credit risk | $ 311,153 | $ 310,209 |
Standby Letters of Credit | ||
Loss Contingencies [Line Items] | ||
Financial instruments, outstanding contracts amounts represent credit risk | $ 11,375 | $ 10,829 |
Commitments and Contingent Li51
Commitments and Contingent Liabilities - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
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 | $ 55,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Contingency [Line Items] | ||
Unrecognized tax benefits | $ 0 | |
Effective tax rate | 33.90% | 33.50% |
Statutory federal tax rate | 34.00% | |
Tennessee | ||
Income Tax Contingency [Line Items] | ||
Excise rate | 6.50% |
Minimum Regulatory Capital Re53
Minimum Regulatory Capital Requirements - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2016 | Jan. 01, 2016 | |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Capital conservation buffer | 0.625% | |
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% |
Capital Stock - Additional Info
Capital Stock - Additional Information (Details) - USD ($) | Mar. 02, 2015 | Sep. 15, 2011 | Feb. 27, 2009 | Mar. 31, 2016 |
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 | |||
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 |
Accumulated Other Comprehensi55
Accumulated Other Comprehensive Income (Loss) - Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |
Net gain on sale of available-for-sale securities | $ 228 |
Income tax expense | (87) |
Interest expense: deposits | 18 |
Income tax expense | (7) |
Net gains on sale of investment securities reclassified out of other comprehensive income | 141 |
Reclassified from Accumulated Other Comprehensive Income (Loss) | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |
Net gains on sale of investment securities reclassified out of other comprehensive income | 152 |
Gains 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 on sale of available-for-sale securities | 228 |
Income tax expense | (87) |
Loss realized on termination of cash flow hedge | Reclassified from Accumulated Other Comprehensive Income (Loss) | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |
Interest expense: deposits | 18 |
Income tax expense | $ (7) |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Income (Loss) - Schedule of Activity in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Beginning Balance | $ (2,631) | $ (2,485) |
Other comprehensive income (loss) before reclassifications | 1,733 | 1,128 |
Amounts reclassified from accumulated other comprehensive loss | 152 | |
Total other comprehensive income, after tax | 1,885 | 1,128 |
Ending Balance | (746) | (1,357) |
Unrealized Gains (Losses) on Securities Available-for-Sale | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Beginning Balance | (2,061) | (2,108) |
Other comprehensive income (loss) before reclassifications | 1,925 | 1,639 |
Amounts reclassified from accumulated other comprehensive loss | 141 | |
Total other comprehensive income, after tax | 2,066 | 1,639 |
Ending Balance | 5 | (469) |
Unrealized Gains (Losses) on Cash Flow Hedges | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Beginning Balance | (570) | (377) |
Other comprehensive income (loss) before reclassifications | (192) | (511) |
Amounts reclassified from accumulated other comprehensive loss | 11 | |
Total other comprehensive income, after tax | (181) | (511) |
Ending Balance | $ (751) | $ (888) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Pinnacle Financial Partners, Inc. | Jan. 28, 2016$ / sharesshares |
Subsequent Event [Line Items] | |
Percentage of shares acquired by the company | shares | 0.36 |
Common stock acquired, price per share | $ 2 |
Outstanding stock options, price per share | $ 20 |
Shareholders ownership percentage after closing of transaction | 8.10% |