Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | People's Utah Bancorp | |
Entity Central Index Key | 1,636,286 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Trading Symbol | PUB | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,705,736 |
UNAUDITED CONSOLIDATED BALANCE
UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 33,484 | $ 36,235 |
Interest bearing deposits | 17,930 | 13,158 |
Federal funds sold | 908 | 1,634 |
Total cash and cash equivalents | 52,322 | 51,027 |
Investment securities: | ||
Available-for-sale, at fair value | 236,699 | 263,056 |
Held-to-maturity, at historical cost | 67,922 | 74,654 |
Total investment securities | 304,621 | 337,710 |
Non-marketable equity securities | 6,151 | 3,706 |
Loans held for sale | 11,058 | 10,871 |
Loans: | ||
Loans held for investment | 1,691,959 | 1,627,444 |
Allowance for loan losses | (22,308) | (18,303) |
Total loans held for investment, net | 1,669,651 | 1,609,141 |
Premises and equipment, net | 29,335 | 30,399 |
Goodwill | 25,673 | 26,008 |
Bank-owned life insurance | 26,120 | 23,566 |
Deferred income tax assets | 10,764 | 8,827 |
Accrued interest receivable | 7,658 | 7,594 |
Other intangibles | 3,633 | 3,854 |
Other real estate owned | 994 | |
Other assets | 14,784 | 9,832 |
Total assets | 2,161,770 | 2,123,529 |
Deposits: | ||
Non-interest bearing deposits | 646,574 | 641,124 |
Interest bearing deposits | 1,135,366 | 1,173,508 |
Total deposits | 1,781,940 | 1,814,632 |
Short-term borrowings | 90,000 | 40,000 |
Accrued interest payable | 369 | 353 |
Other liabilities | 17,862 | 11,126 |
Total liabilities | 1,890,171 | 1,866,111 |
Shareholders’ equity: | ||
Preferred shares, $0.01 par value: 3,000,000 shares authorized, no shares issued | ||
Common shares, $0.01 par value: 30,000,000 shares authorized; 18,683,883 and 18,511,797 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively | 187 | 185 |
Additional paid-in capital | 85,620 | 84,532 |
Retained earnings | 190,735 | 174,804 |
Accumulated other comprehensive loss | (4,943) | (2,103) |
Total shareholders’ equity | 271,599 | 257,418 |
Total liabilities and shareholders’ equity | $ 2,161,770 | $ 2,123,529 |
UNAUDITED CONSOLIDATED BALANCE3
UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Preferred shares, par value | $ 0.01 | $ 0.01 |
Preferred shares, authorized | 3,000,000 | 3,000,000 |
Preferred shares, issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 18,683,883 | 18,511,797 |
Common stock, shares outstanding | 18,683,883 | 18,511,797 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest income | ||||
Interest and fees on loans | $ 27,073 | $ 17,923 | $ 52,856 | $ 34,767 |
Interest and dividends on investments | 1,683 | 1,802 | 3,339 | 3,507 |
Total interest income | 28,756 | 19,725 | 56,195 | 38,274 |
Interest expense | 1,778 | 749 | 3,273 | 1,515 |
Net interest income | 26,978 | 18,976 | 52,922 | 36,759 |
Provision for loan losses | 1,475 | 900 | 3,525 | 1,100 |
Net interest income after provision for loan losses | 25,503 | 18,076 | 49,397 | 35,659 |
Non-interest income | ||||
Mortgage banking | 1,505 | 1,960 | 3,143 | 3,939 |
Card processing | 799 | 692 | 1,522 | 1,287 |
Service charges on deposit accounts | 704 | 578 | 1,377 | 1,114 |
Net gain (loss) on sale of investment securities | 333 | 1 | 335 | (10) |
Other operating | 725 | 606 | 1,407 | 1,099 |
Total non-interest income | 4,066 | 3,837 | 7,784 | 7,429 |
Non-interest expense | ||||
Salaries and employee benefits | 10,196 | 7,762 | 20,619 | 15,729 |
Occupancy, equipment and depreciation | 1,411 | 1,088 | 2,954 | 2,205 |
Data processing | 1,063 | 661 | 1,933 | 1,336 |
Marketing and advertising | 321 | 349 | 767 | 611 |
FDIC premiums | 299 | 130 | 628 | 256 |
Acquisition-related costs | 1 | 175 | 350 | 175 |
Other | 2,532 | 1,670 | 4,620 | 3,437 |
Total non-interest expense | 15,823 | 11,835 | 31,871 | 23,749 |
Income before income tax expense | 13,746 | 10,078 | 25,310 | 19,339 |
Income tax expense | 3,279 | 3,584 | 5,839 | 6,324 |
Net income | $ 10,467 | $ 6,494 | $ 19,471 | $ 13,015 |
Earnings per common share: | ||||
Basic | $ 0.56 | $ 0.36 | $ 1.04 | $ 0.73 |
Diluted | $ 0.55 | $ 0.35 | $ 1.03 | $ 0.71 |
Weighted average common shares outstanding: | ||||
Basic | 18,679,908 | 17,937,926 | 18,639,397 | 17,911,125 |
Diluted | 18,989,176 | 18,351,531 | 18,963,549 | 18,334,028 |
UNAUDITED CONSOLIDATED STATEME5
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 10,467 | $ 6,494 | $ 19,471 | $ 13,015 |
Other comprehensive income | ||||
Unrealized holding (losses)/gains on securities available-for-sale | (1,319) | 375 | (3,787) | 438 |
Income tax benefit/(expense) | 330 | (143) | 947 | (168) |
Unrealized holding (losses)/gains on securities available-for-sale, net of tax | (989) | 232 | (2,840) | 270 |
Total comprehensive income | $ 9,478 | $ 6,726 | $ 16,631 | $ 13,285 |
UNAUDITED CONSOLIDATED STATEME6
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance, beginning at Dec. 31, 2016 | $ 228,517 | $ 178 | $ 68,657 | $ 160,692 | $ (1,010) |
Balance, beginning, Shares at Dec. 31, 2016 | 17,819,538 | ||||
Comprehensive income | 13,285 | 13,015 | 270 | ||
Cash dividends | (2,867) | (2,867) | |||
Share-based compensation | 218 | 218 | |||
Exercise of stock options | 749 | $ 1 | 748 | ||
Exercise of stock options, Shares | 128,809 | ||||
Balance, ending at Jun. 30, 2017 | 239,902 | $ 179 | 69,623 | 170,840 | (740) |
Balance, ending, Shares at Jun. 30, 2017 | 17,948,347 | ||||
Balance, beginning at Dec. 31, 2017 | $ 257,418 | $ 185 | 84,532 | 174,804 | (2,103) |
Balance, beginning, Shares at Dec. 31, 2017 | 18,511,797 | 18,511,797 | |||
Comprehensive income | $ 16,631 | 19,471 | (2,840) | ||
Cash dividends | (3,540) | (3,540) | |||
Share-based compensation | 370 | 370 | |||
Exercise of stock options | 720 | $ 2 | 718 | ||
Exercise of stock options, Shares | 172,086 | ||||
Balance, ending at Jun. 30, 2018 | $ 271,599 | $ 187 | $ 85,620 | $ 190,735 | $ (4,943) |
Balance, ending, Shares at Jun. 30, 2018 | 18,683,883 | 18,683,883 |
UNAUDITED CONSOLIDATED STATEME7
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Stockholders Equity [Abstract] | ||
Cash dividends per share | $ 0.19 | $ 0.16 |
UNAUDITED CONSOLIDATED STATEME8
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 19,471 | $ 13,015 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 3,525 | 1,100 |
Depreciation and amortization | 1,538 | 1,267 |
Deferred income taxes | (990) | (214) |
Net amortization of securities discounts and premiums | 1,312 | 1,501 |
Increase in cash surrender value of bank owned life insurance | (304) | (256) |
Share-based compensation | 370 | 218 |
Gain on sale of loans held for sale | (2,047) | (2,838) |
Originations of loans held for sale | (108,638) | (115,621) |
Proceeds from sale of loans held for sale | 110,498 | 131,630 |
Net changes in: | ||
Accrued interest receivable | (64) | (59) |
Other assets | (4,611) | 517 |
Accrued interest payable | 16 | (36) |
Other liabilities | 6,736 | 4,964 |
Net cash provided by operating activities | 26,812 | 35,188 |
Cash flows from investing activities: | ||
Net change in loans held for investment | (63,290) | (82,558) |
Purchase of available-for-sale securities | (24,599) | |
Purchase of held-to-maturity securities | (12,198) | |
Proceeds from maturities/sales of available-for-sale securities | 21,645 | 34,350 |
Proceeds from maturities of held-to-maturity securities | 6,345 | 7,939 |
Purchase of bank-owned life insurance | (2,250) | |
Purchase of premises and equipment | (448) | (2,758) |
Proceeds from sale of other real estate owned, net of improvements | 438 | 302 |
Net change of non-marketable equity securities | (2,445) | (132) |
Net cash used in investing activities | (40,005) | (79,654) |
Cash flows from financing activities: | ||
Net (decrease) increase in deposits | (32,692) | 35,978 |
Proceeds related to exercise of stock options | 720 | 749 |
Net change in short-term borrowings | 50,000 | 103 |
Cash dividends paid | (3,540) | (2,867) |
Net cash provided by financing activities | 14,488 | 33,963 |
Net change in cash and cash equivalents | 1,295 | (10,503) |
Cash and cash equivalents, beginning of period | 51,027 | 67,938 |
Cash and cash equivalents, end of period | 52,322 | 57,435 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 3,257 | 1,551 |
Income taxes paid | 6,869 | 6,217 |
Supplemental disclosures of non-cash investing transactions: | ||
Reclassifications from loans to other real estate owned | 468 | |
Unrealized gains / (losses) on securities available-for-sale | (3,787) | $ 438 |
Measurement period adjustment to goodwill | $ (335) |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Basis Of Presentation [Abstract] | |
Basis of Presentation | Note 1 — Basis of Presentation Nature of Operations and basis of consolidation — People’s Utah Bancorp, Inc. (“PUB” or the “Company”) is a Utah corporation headquartered in American Fork, Utah. The Company operates all business activities through its wholly-owned banking subsidiary, People’s Intermountain Bank (“PIB” or the “Bank”), which was organized in 1913. The Bank is a Utah State chartered bank. The Bank operates under the jurisdiction of the Utah Department of Financial Institutions, and its deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”). The Bank is not a member of the Federal Reserve System; however, PUB is operated as a bank holding company under the Federal Bank Holding Company Act of 1956 and is the sole shareholder of the Bank. Both PUB and the Bank are subject to periodic examination by applicable federal and state regulatory agencies and file periodic reports and other information with the agencies. PIB is a community bank that provides highly personalized retail and commercial banking products and services to small and medium sized businesses and individuals. Products and services are offered primarily through 26 retail branches located throughout Utah and southern Idaho. PIB has three banking divisions, Bank of American Fork, Lewiston State Bank, and People’s Town & Country Bank; a leasing division, GrowthFunding Equipment Finance; and a mortgage division, People’s Intermountain Bank Mortgage. The Bank offers a full range of short-term to long-term commercial, personal and mortgage loans. Commercial loans include both secured and unsecured loans for working capital (including inventory and accounts receivable), business expansion (including acquisition of real estate and improvements), and purchase of equipment and machinery. Consumer loans include secured and unsecured loans to finance automobiles, home improvements, education, and personal investments. The Bank also offers mortgage loans secured by personal residences. The Bank offers a full range of deposit services typically available in most financial institutions, including checking accounts, savings accounts, and time deposits. The Bank solicits these accounts from individuals, businesses, associations and organizations, and governmental entities. The interim condensed consolidated financial statements include the accounts of the Company together with its subsidiary Bank. All intercompany transactions and balances have been eliminated. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial information. In the opinion of management, the interim statements reflect all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis and all such adjustments are of a normal recurring nature. These financial statements and the accompanying notes should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2017, which are included in the Company’s 2017 Form 10-K. Operating results for the three months and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018, or any other period. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported 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, the valuation of real estate acquired through foreclosure, deferred tax assets, and share-based compensation. Earnings per share — Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares include shares that may be issued by the Company for outstanding stock options determined using the treasury stock method and for all outstanding restricted stock units (“RSU”). Note 1 — Basis of Presentation – Continued Earnings per common share have been computed based on the following: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands, except share and per share data) 2018 2017 2018 2017 Numerator Net income $ 10,467 $ 6,494 $ 19,471 $ 13,015 Denominator Weighted-average number of common shares outstanding 18,679,908 17,937,926 18,639,397 17,911,125 Incremental shares assumed for stock options and RSUs 309,268 413,605 324,152 422,903 Weighted-average number of dilutive shares outstanding 18,989,176 18,351,531 18,963,549 18,334,028 Basic earnings per common share $ 0.56 $ 0.36 $ 1.04 $ 0.73 Diluted earnings per common share $ 0.55 $ 0.35 $ 1.03 $ 0.71 Reclassifications — Certain amounts in the prior period’s financial statements have been reclassified to conform to the current period’s presentation. Impact of Recent Authoritative Accounting Guidance —The Accounting Standards Codification™ (“ASC”) is the Financial Accounting Standards Board’s (“FASB”) officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Periodically, the FASB will issue Accounting Standard Updates (“ASU”) to its ASC. Rules and interpretive releases of the SEC under the authority of the federal securities laws are also sources of authoritative GAAP for us as an SEC registrant. All other accounting literature is non-authoritative. In February 2018, the FASB issued ASU 2018-02, Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU gives businesses the option of reclassifying to retained earnings the so-called “stranded tax effects” left in accumulated other comprehensive income (“AOCI”) because of the reduction to the corporate income tax rate. The amendments are effective for all organizations for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. The FASB said that businesses and organizations should apply the amendments either in the period of adoption or retrospectively to each period in which the effect of the change in the tax rate is recognized. The Company early adopted this ASU on December 31, 2017. In March 2017, FASB issued ASU 2017-08, "Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities." The ASU requires entities to amortize the premium on certain purchased callable debt securities to the earliest call date, which more closely aligns the amortization period of premiums and discounts to expectations incorporated in the market prices. Entities will no longer recognize a loss in earnings upon the debtor's exercise of a call on a purchased debt security held at a premium. The ASU does not require any accounting change for debt securities held at a discount; therefore the discount will continue to be amortized as an adjustment of yield over the contractual life of the investment. This ASU is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted for all entities. The adoption of ASU No. 2017-08 is not expected to have a material impact on the Company's Consolidated Financial Statements. In January 2017, FASB issued ASU 2017-04, "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The ASU removes the requirement to compare the implied fair value of goodwill with its carrying value as required in Step 2 of the goodwill impairment test. Under the ASU, registrants would perform their goodwill impairment test and recognize an impairment charge for any amount the carrying value exceeds the reporting unit's fair value, but limited by the amount of goodwill allocated to that reporting unit. This ASU is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted for all entities after January 1, 2017. The Company early adopted this ASU on December 31, 2017 and adoption did not have a material effect on the Company's Consolidated Financial Statements. In January 2017, FASB issued ASU 2017-03, "Accounting Changes and Error Corrections (Topic 250) and Investments-Equity Method and Joint Ventures (Topic 323)." The ASU amends the Codification for SEC staff announcements made at recent Emerging Issues Task Force (EITF) meetings. The SEC guidance that specifically relates to our Consolidated Financial Statements was from the September 2016 meeting, where the SEC staff expressed their expectations about the extent of disclosures registrants should make about the effects of the new FASB guidance as well as any amendments issued prior to adoption, on revenue (ASU 2014-09), leases (ASU 2016-02) and credit losses on financial instruments (ASU 2016-13) in accordance with SAB Topic 11.M. Registrants are required to disclose the effect that recently issued accounting standards will have on their financial statements when adopted in a future period. In cases where a registrant cannot reasonably estimate the impact of the adoption, then additional qualitative disclosures should be considered. The ASU incorporates these SEC staff views into ASC 250 and adds references to that guidance in the transition paragraphs of each of the three new standards. The Company has adopted the amendments in this ASU and appropriate disclosures have been included in this Note for each recently issued accounting standard. Note 1 — Basis of Presentation – Continued In December 2016, FASB issued ASU No. 2016-19, "Technical Corrections and Improvements" and ASU 2016-20, "Technical Corrections and Improvements to Topic 606: Revenue from Contracts with Customers." On November 10, 2010, FASB added a standing project that will facilitate the FASB Accounting Standards Codification ("Codification”) updates for technical corrections, clarifications, and improvements. These amendments are referred to as Technical Corrections and Improvements. Maintenance updates include non-substantive corrections to the Codification, such as editorial corrections, various link-related changes, and changes to source fragment information. These updates contain amendments that will affect a wide variety of Topics in the Codification. The amendments in these ASUs will apply to all reporting entities within the scope of the affected accounting guidance and generally fall into one of four categories: amendments related to differences between original guidance and the Codification, guidance clarification and reference corrections, simplification, and minor improvements. In summary, the amendments represent changes to clarify the Codification, correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice. Transition guidance varies based on the amendments in the ASUs. The amendments that require transition guidance are effective for fiscal years and interim reporting periods after December 15, 2016. Early adoption is permitted including adoption in an interim period. All other amendments are effective upon the issuance of these ASUs. Neither ASU 2016-19 nor ASU 2016-20 had a material impact on the Company's Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." The ASU amends the guidance on the classification of certain cash receipts and payments in the statement of cash flows and is intended to reduce the diversity in practice. This ASU is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted for all entities beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2016-15 on January 1, 2018 did not have a material impact on the Company’s Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The ASU significantly changes the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model. This ASU is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted for all entities beginning after December 15, 2018, including interim periods within those fiscal years. The Company is in the process of identifying required changes to the loan loss estimation models and processes and evaluating the impact of this new guidance. Once adopted, we expect our allowance for loan losses to increase, however, until our evaluation is complete the magnitude of the increase will be unknown. In February 2016, the FASB issued ASU 2016-02, "Leases (ASC 842)." The guidance in this ASU requires most leases to be recognized on the balance sheet as a right-of-use asset and a lease liability. It will be critical to identify leases embedded in a contract to avoid misstating the lessee’s balance sheet. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. This ASU is effective for interim and annual periods beginning after December 15, 2018. We are currently evaluating the impact of this guidance on our Consolidated Financial Statements and the timing of adoption. The Company will compile an inventory of all leased assets to determine the impact of ASU 2016-02 on its financial condition and results of operations. Once adopted, we expect to report higher assets and liabilities on our Consolidated Balance Sheets as a result of including right-of-use assets and lease liabilities related to certain banking offices and certain equipment under noncancelable operating lease agreements, which currently are not reflected in our Consolidated Balance Sheets. We do not expect the guidance to have a material impact on the Consolidated Statements of Income or the Consolidated Statements of Changes in Shareholders’ Equity. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The ASU amends the guidance in GAAP on the classification and measurement of financial instruments. The ASU includes the following changes: i) equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (ii) requires the use of exit price notion when measuring the fair value of financial instruments for disclosure purposes; (iii) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e. securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; (iv) allows an equity investment that does not have readily determinable fair values, to be measured at cost minus impairment (if any), plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer; (v) eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, and requires a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e. securities or loans and receivables) on the balance sheet or in the accompanying notes to the financial statements; and (vii) clarifies that a valuation allowance on a deferred tax asset related to available-for-sale securities should be evaluated in combination with the organization’s other deferred tax assets. This ASU is effective for interim and annual periods beginning after December 15, 2017. The Company adopted ASU No. 2016-01 effective January 1, 2018, and the adoption did not have a material impact on the Company's Consolidated Financial Statements. Note 1 — Basis of Presentation – Continued In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606)”, which defers the effective date of Accounting Standard Update ASU No. 2014-09 one year. ASU No. 2014-09 created Topic 606 and supersedes Topic 605, Revenue Recognition. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In general, the new guidance requires companies to use more judgment and make more estimates than under current guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which provides clarifying guidance in certain narrow areas and adds some practical expedients, but does not change the core revenue recognition principle in Topic 606. ASU No. 2015-14 is effective for interim and annual periods beginning after December 15, 2017. For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. The Company adopted this standard on January 1, 2018 using the full retrospective method. A significant amount of the Company’s revenues are derived from net interest income on financial assets and liabilities, which are excluded from the scope of the amended guidance. Revenue streams reported as deposit fees and other service charges. which include transaction based deposit fees, and interchange fees on credit and debit cards, are within the scope of Topic 606. The Company completed its assessment of revenue streams and associated incremental costs of contracts affected by the standard. The Company’s adoption of this standard did not change the timing or the amount of revenue recognized in prior periods, however the presentation of certain costs associated with card processing will now be offset against card processing revenue in non-interest income. The change in presentation resulted in $1.2 million of expenses for the six months ended June 30, 2018 being netted against card processing income and reported in non-interest income instead of as payment and card processing expenses in non-interest expense. In addition, to conform to the current period presentation, $1.0 million of card processing related expenses for the six months ended June 30, 2017, were reclassified from payment and card processing expense in non-interest expense to being netted against card processing revenue in non-interest income. The Company elected to apply the practical expedient and therefore does not disclose information about remaining performance obligations that have an original expected term of one year or less and allows the Company to expense costs related to obtaining a contract as incurred when the amortization period would have been one year or less. The following table presents the impact of adopting of the new revenue standard on our Statements of Income for the six months ended June 30, 2018 and 2017: Six Months Ended Six Months Ended June 30, 2018 June 30, 2017 Balance without Balance without (Dollars in thousands, except share and per share data) As Reported Adoption of ASC 606 Effect of Change As Reported Adoption of ASC 606 Effect of Change Non-interest income Card Processing $ 1,522 $ 2,749 $ (1,227 ) $ 1,287 $ 2,332 $ (1,045 ) Service charges on deposit accounts 1,377 1,377 - 1,114 1,114 - Non-interest Expense Card Processing $ - $ 1,227 $ (1,227 ) $ - $ 1,045 $ (1,045 ) |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | Note 2 — Investment Securities Amortized cost and estimated fair value of investment securities available-for-sale are summarized as follows: Gross Unrealized Losses Less 12 Gross Than Months Amortized Unrealized 12 or Fair (Dollars in thousands) Cost Gains Months Longer Value As of June 30, 2018 U.S. Government-sponsored securities $ 48,953 $ - $ (327 ) $ (590 ) $ 48,036 Municipal securities 11,977 107 (65 ) (27 ) 11,992 Mortgage-backed securities 177,360 27 (2,376 ) (3,110 ) 171,901 Corporate securities 5,000 - (12 ) (218 ) 4,770 $ 243,290 $ 134 $ (2,780 ) $ (3,945 ) $ 236,699 As of December 31, 2017 U.S. Government-sponsored securities $ 48,950 $ 13 $ (6 ) $ (453 ) $ 48,504 Municipal securities 13,310 184 (22 ) (18 ) 13,454 Mortgage-backed securities 198,100 71 (1,145 ) (1,764 ) 195,262 Corporate securities 5,500 573 - (237 ) 5,836 $ 265,860 $ 841 $ (1,173 ) $ (2,472 ) $ 263,056 Amortized cost and estimated fair value of investment securities held-to-maturity are as follows: Gross Unrealized Losses Less 12 Gross Than Months Amortized Unrealized 12 or Fair (Dollars in thousands) Cost Gains Months Longer Value As of June 30, 2018 Municipal securities $ 67,922 $ 17 $ (543 ) $ (337 ) $ 67,059 As of December 31, 2017 Municipal securities $ 74,654 $ 167 $ (293 ) $ (227 ) $ 74,301 Note 2 — Investment Securities – continued At June 30, 2018 and December 31, 2017, the gross unrealized losses and the fair value for securities available-for-sale and held-to-maturity was as follows: June 30, 2018 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available-for-Sale U.S. Government-sponsored securities $ 14,628 $ (327 ) $ 33,407 $ (590 ) $ 48,035 $ (917 ) Municipal securities 4,783 (65 ) 810 (27 ) 5,593 (92 ) Mortgage-backed securities 80,778 (2,376 ) 88,267 (3,110 ) 169,045 (5,486 ) Corporate securities 1,987 (12 ) 2,783 (218 ) 4,770 (230 ) $ 102,176 $ (2,780 ) $ 125,267 $ (3,945 ) $ 227,443 $ (6,725 ) Held-to Maturity Municipal securities $ 48,014 $ (543 ) $ 9,196 $ (337 ) $ 57,210 $ (880 ) December 31, 2017 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available-for-Sale U.S. Government-sponsored securities $ 5,087 $ (6 ) $ 33,543 $ (453 ) $ 38,630 $ (459 ) Municipal securities 3,523 (22 ) 830 (18 ) 4,353 (40 ) Mortgage-backed securities 112,878 (1,145 ) 72,859 (1,764 ) 185,737 (2,909 ) Corporate securities - - 4,763 (237 ) 4,763 (237 ) $ 121,488 $ (1,173 ) $ 111,995 $ (2,472 ) $ 233,483 $ (3,645 ) Held-to Maturity Municipal securities $ 39,380 $ (293 ) $ 10,389 $ (227 ) $ 49,769 $ (520 ) The amortized cost and estimated fair value of investment securities that are available-for-sale and held-to-maturity at June 30, 2018, by contractual maturity, are as follows: Available-For-Sale Held-To-Maturity Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Securities maturing in: One year or less $ 2,528 $ 2,545 $ 8,388 $ 8,370 After one year through five years 75,740 74,398 38,735 38,430 After five years through ten years 52,157 50,523 15,153 14,725 After ten years 112,865 109,233 5,646 5,534 $ 243,290 $ 236,699 $ 67,922 $ 67,059 Actual maturities may differ from contractual maturities because issuers may have the right to call obligations with or without penalties and other securities may experience pre-payments. As of June 30, 2018, the Company held 327 investment securities with fair value less than amortized cost compared to 304 at December 31, 2017. Management evaluated these investment securities and determined that the decline in value is temporary and related to the change in market interest rates since purchase. The decline in value is not related to any company or industry specific event. The Company anticipates full recovery of the amortized cost with respect to these securities at maturity, or sooner in the event of a more favorable market interest rate environment. Note 2 — Investment Securities – continued The Company had sales of available-for-sale securities totaling $500,000 during the six months ended June 30, 2018, which resulted in a net gain of $335,000. There were no sales of available-for-sale securities for the six months ended June 30, 2017. There were no available-for-sale securities in a nonaccrual status at June 30, 2018 or December 31, 2017. The Company had no sales of held-to-maturity securities during the six months ended June 30, 2018, compared to $204,000 during the six months ended June 30, 2017, which resulted in a net loss of $13,000. The company had no held-to-maturity securities in a nonaccrual status at June 30, 2018 or December 31, 2017. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Note 3 — Loans and Allowance for Loan Losses Loans are summarized as follows: June 30, December 31, (Dollars in thousands) 2018 2017 Loans held for investment: Commercial real estate loans: Real estate term $ 842,352 $ 784,148 Construction and land development 373,845 369,590 Total commercial real estate loans 1,216,197 1,153,738 Commercial and industrial loans 310,228 294,085 Consumer loans: Residential and home equity 153,084 158,591 Consumer and other 16,978 25,591 Total consumer loans 170,062 184,182 Total gross loans 1,696,487 1,632,005 Net deferred loan fees (4,528 ) (4,561 ) Total loans held for investment 1,691,959 1,627,444 Allowance for loan losses (22,308 ) (18,303 ) Total loans held for investment, net $ 1,669,651 $ 1,609,141 Changes in the allowance for loan losses (“ALLL”) are as follows: Three Months Ended June 30, 2018 Real Construction Commercial Residential Consumer Estate and Land and and and (Dollars in thousands) Term Development Industrial Home Equity Other Total Balance at beginning of period $ 7,249 $ 6,808 $ 5,962 $ 642 $ 70 $ 20,731 Additions: Provisions for loan losses 1,779 (65 ) (258 ) (37 ) 56 1,475 Deductions: Gross loan charge-offs - - (97 ) - (107 ) (204 ) Recoveries - 46 173 54 33 306 Net loan (charge-offs) / recoveries - 46 76 54 (74 ) 102 Balance at end of period $ 9,028 $ 6,789 $ 5,780 $ 659 $ 52 $ 22,308 Note 3 — Loans and Allowance for Loan Losses – Continued Three Months Ended June 30, 2017 Real Construction Commercial Residential Consumer Estate and Land and and and (Dollars in thousands) Term Development Industrial Home Equity Other Total Balance at beginning of period $ 7,149 $ 4,683 $ 4,222 $ 529 $ 61 $ 16,644 Additions: Provisions for loan losses 181 394 342 (28 ) 11 900 Deductions: Gross loan charge-offs (350 ) - (114 ) - (48 ) (512 ) Recoveries 177 - 39 2 21 239 Net loan (charge-offs) / recoveries (173 ) - (75 ) 2 (27 ) (273 ) Balance at end of period $ 7,157 $ 5,077 $ 4,489 $ 503 $ 45 $ 17,271 Six Months Ended June 30, 2018 Real Construction Commercial Residential Consumer Estate and Land and and and (Dollars in thousands) Term Development Industrial Home Equity Other Total Balance at beginning of period $ 6,706 $ 6,309 $ 4,314 $ 815 $ 159 $ 18,303 Additions: Provisions for loan losses 2,310 409 1,067 (237 ) (24 ) 3,525 Deductions: Gross loan charge-offs - - (290 ) - (172 ) (462 ) Recoveries 12 71 689 81 89 942 Net loan (charge-offs) / recoveries 12 71 399 81 (83 ) 480 Balance at end of period $ 9,028 $ 6,789 $ 5,780 $ 659 $ 52 $ 22,308 Six Months Ended June 30, 2017 Real Construction Commercial Residential Consumer Estate and Land and and and (Dollars in thousands) Term Development Industrial Home Equity Other Total Balance at beginning of period $ 6,770 $ 5,449 $ 3,718 $ 617 $ 161 $ 16,715 Additions: Provisions for loan losses 556 (451 ) 966 84 (55 ) 1,100 Deductions: Gross loan charge-offs (350 ) - (272 ) (338 ) (113 ) (1,073 ) Recoveries 181 79 77 140 52 529 Net loan (charge-offs) / recoveries (169 ) 79 (195 ) (198 ) (61 ) (544 ) Balance at end of period $ 7,157 $ 5,077 $ 4,489 $ 503 $ 45 $ 17,271 Note 3 — Loans and Allowance for Loan Losses – Continued Non-accrual loans are summarized as follows: June 30, December 31, (Dollars in thousands) 2018 2017 Non-accrual loans, not troubled debt restructured: Real estate term $ 1,580 $ - Construction and land development 320 - Commercial and industrial 1,539 223 Residential and home equity 728 - Consumer and other 39 - Total non-accrual loans, not troubled debt restructured 4,206 223 Troubled debt restructured loans, non-accrual: Real estate term 1,556 - Construction and land development - - Commercial and industrial 195 - Residential and home equity - - Consumer and other - - Total troubled debt restructured loans, non-accrual 1,751 - Total non-accrual loans $ 5,957 $ 223 Troubled debt restructured loans are summarized as follows: June 30, December 31, (Dollars in thousands) 2018 2017 Accruing troubled debt restructured loans $ 2,495 $ 3,307 Non-accrual troubled debt restructured loans 1,751 - Total troubled debt restructured loans $ 4,246 $ 3,307 A restructured loan is considered a troubled debt restructured loan (“TDR”), if the Company, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession in terms or a below-market interest rate to the debtor that it would not otherwise consider. Each TDR loan is separately negotiated with the borrower and includes terms and conditions that reflect the borrower’s prospective ability to service the debt as modified. Loans totaling $1.8 million were classified as TDR’s during the six months ended June 30, 2018. No new TDRs occurred during the six months ended June 30, 2017. In addition, there were no TDRs which incurred a payment default within twelve months of the restructure date during the six-month periods ended June 30, 2018 and 2017. Current and past due loans held for investment (accruing and non-accruing) are summarized as follows: June 30, 2018 Purchased 30-89 Days 90+ Days Non- Total Credit Total (Dollars in thousands) Current Past Due Past Due accrual Past Due Impaired Loans Commercial real estate: Real estate term $ 836,191 $ 2,659 $ - $ 3,136 $ 5,795 $ 366 $ 842,352 Construction and land development 367,187 5,920 - 320 6,240 418 373,845 Total commercial real estate 1,203,378 8,579 - 3,456 12,035 784 1,216,197 Commercial and industrial 299,280 1,932 322 1,734 3,988 6,960 310,228 Consumer: Residential and home equity 151,450 906 - 728 1,634 - 153,084 Consumer and other 16,684 241 14 39 294 - 16,978 Total consumer 168,134 1,147 14 767 1,928 - 170,062 Total gross loans $ 1,670,792 $ 11,658 $ 336 $ 5,957 $ 17,951 $ 7,744 $ 1,696,487 Note 3 — Loans and Allowance for Loan Losses – Continued December 31, 2017 Purchased 30-89 Days 90+ Days Non- Total Credit Total (Dollars in thousands) Current Past Due Past Due accrual Past Due Impaired Loans Commercial real estate: Real estate term $ 780,895 $ 2,243 $ - $ - $ 2,243 $ 1,010 $ 784,148 Construction and land development 361,845 7,095 - - 7,095 650 369,590 Total commercial real estate 1,142,740 9,338 - - 9,338 1,660 1,153,738 Commercial and industrial 282,638 4,210 - 223 4,433 7,014 294,085 Consumer: Residential and home equity 156,379 2,212 - - 2,212 - 158,591 Consumer and other 25,307 283 1 - 284 - 25,591 Total consumer 181,686 2,495 1 - 2,496 - 184,182 Total gross loans $ 1,607,064 $ 16,043 $ 1 $ 223 $ 16,267 $ 8,674 $ 1,632,005 Credit Quality Indicators: In addition to past due and non-accrual criteria, the Company also analyzes loans using a loan grading system. Performance-based grading follows the Company’s definitions of Pass, Special Mention, Substandard and Doubtful, which are consistent with published definitions of regulatory risk classifications. Definitions of Pass, Special Mention, Substandard, and Doubtful are summarized as follows: Pass : A Pass asset is higher quality and does not fit any of the other categories described below. The likelihood of loss is considered remote. Special Mention : A Special Mention asset has potential weaknesses that may be temporary or, if left uncorrected, may result in a loss. While concerns exist, the Company is currently protected and loss is considered unlikely and not imminent. Substandard : A Substandard asset is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified have well defined weaknesses and are characterized by the distinct possibility that the Company may sustain some loss if deficiencies are not corrected. Doubtful : A Doubtful asset has all the weaknesses inherent in a Substandard asset with the added characteristics that the weaknesses make collection or liquidation in full highly questionable. For Consumer loans, the Company generally assigns internal risk grades similar to those described above based on payment performance. Outstanding loan balances (accruing and non-accruing) categorized by these credit quality indicators are summarized as follows: June 30, 2018 Special Total Total (Dollars in thousands) Pass Mention Substandard Doubtful Loans Allowance Commercial real estate: Real estate term $ 813,802 $ 18,401 $ 10,149 $ - $ 842,352 $ 9,028 Construction and land development 370,273 1,614 1,958 - 373,845 6,789 Total commercial real estate 1,184,075 20,015 12,107 - 1,216,197 15,817 Commercial and industrial 287,284 5,707 17,237 - 310,228 5,780 Consumer loans: Residential and home equity 148,554 1,497 3,033 - 153,084 659 Consumer and other 16,863 46 57 12 16,978 52 Total consumer 165,417 1,543 3,090 12 170,062 711 Total $ 1,636,776 $ 27,265 $ 32,434 $ 12 $ 1,696,487 $ 22,308 Note 3 — Loans and Allowance for Loan Losses – Continued December 31, 2017 Special Total Total (Dollars in thousands) Pass Mention Substandard Doubtful Loans Allowance Commercial real estate: Real estate term $ 758,575 $ 13,055 $ 12,518 $ - $ 784,148 $ 6,706 Construction and land development 358,766 7,227 3,597 - 369,590 6,309 Total commercial real estate 1,117,341 20,282 16,115 - 1,153,738 13,015 Commercial and industrial 274,535 13,464 6,086 - 294,085 4,314 Consumer loans: Residential and home equity 152,753 3,913 1,925 - 158,591 815 Consumer and other 25,461 45 72 13 25,591 159 Total consumer 178,214 3,958 1,997 13 184,182 974 Total $ 1,570,090 $ 37,704 $ 24,198 $ 13 $ 1,632,005 $ 18,303 The ALLL and outstanding loan balances reviewed according to the Company’s impairment method are summarized as follows: June 30, 2018 Real Construction Commercial Residential Consumer Estate and Land and and and (Dollars in thousands) Term Development Industrial Home Equity Other Total Allowance for loan losses: Individually evaluated for impairment $ 372 $ - $ 877 $ 3 $ - $ 1,252 Collectively evaluated for impairment 8,656 6,789 4,551 656 52 20,704 Purchased credit-impaired loans - - 352 - - 352 Total $ 9,028 $ 6,789 $ 5,780 $ 659 $ 52 $ 22,308 Outstanding loan balances: Individually evaluated for impairment $ 8,750 $ 1,549 $ 9,453 $ 2,638 $ - $ 22,390 Collectively evaluated for impairment 833,236 371,878 293,815 150,446 16,978 1,666,353 Purchased credit-impaired loans 366 418 6,960 - - 7,744 Total gross loans $ 842,352 $ 373,845 $ 310,228 $ 153,084 $ 16,978 $ 1,696,487 December 31, 2017 Real Construction Commercial Residential Consumer Estate and Land and and and (Dollars in thousands) Term Development Industrial Home Equity Other Total Allowance for loan losses: Individually evaluated for impairment $ - $ 3 $ 41 $ 101 $ - $ 145 Collectively evaluated for impairment 6,706 6,306 4,273 714 159 18,158 Purchased credit-impaired loans - - - - - - Total $ 6,706 $ 6,309 $ 4,314 $ 815 $ 159 $ 18,303 Outstanding loan balances: Individually evaluated for impairment $ 6,191 $ 2,568 $ 2,044 $ 1,150 $ - $ 11,953 Collectively evaluated for impairment 776,947 366,372 285,027 157,441 25,591 1,611,378 Purchased credit-impaired loans 1,010 650 7,014 - - 8,674 Total gross loans $ 784,148 $ 369,590 $ 294,085 $ 158,591 $ 25,591 $ 1,632,005 Note 3 — Loans and Allowance for Loan Losses – Continued Information on impaired loans, excluding Purchased Credit Impaired (“PCI”) loans, is summarized as follows: June 30, 2018 Recorded Investment Unpaid Total Principal With No With Recorded Related (Dollars in thousands) Balance Allowance Allowance Investment Allowance Commercial real estate: Real estate term $ 11,916 $ 7,695 $ 1,055 $ 8,750 $ 372 Construction and land development 2,191 1,549 - 1,549 - Total commercial real estate 14,107 9,244 1,055 10,299 372 Commercial and industrial 10,887 3,208 6,245 9,453 877 Consumer loans: Residential and home equity 2,638 2,374 264 2,638 3 Consumer and other - - - - - Total consumer 2,638 2,374 264 2,638 3 Total $ 27,632 $ 14,826 $ 7,564 $ 22,390 $ 1,252 December 31, 2017 Recorded Investment Unpaid Total Principal With No With Recorded Related (Dollars in thousands) Balance Allowance Allowance Investment Allowance Commercial real estate: Real estate term $ 7,090 $ 6,191 $ - $ 6,191 $ - Construction and land development 3,485 2,372 196 2,568 3 Total commercial real estate 10,575 8,563 196 8,759 3 Commercial and industrial 6,204 1,276 768 2,044 41 Consumer loans: Residential and home equity 1,150 229 921 1,150 101 Consumer and other - - - - - Total consumer 1,150 229 921 1,150 101 Total $ 17,929 $ 10,068 $ 1,885 $ 11,953 $ 145 The interest income recognized on impaired loans was as follows: Three Months Ended June 30, 2018 June 30, 2017 Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognition Investment Recognition Commercial real estate: Real estate term $ 6,312 $ 43 $ 4,734 $ 6 Construction and land development 2,033 35 2,872 32 Total commercial real estate 8,345 78 7,606 38 Commercial and industrial 7,822 87 4,280 36 Consumer loans: Residential and home equity 2,086 22 850 10 Consumer and other - - - - Total consumer 2,086 22 850 10 Total $ 18,253 $ 187 $ 12,736 $ 84 Note 3 — Loans and Allowance for Loan Losses – Continued Six Months Ended June 30, 2018 June 30, 2017 Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognition Investment Recognition Commercial real estate: Real estate term $ 7,471 $ 146 $ 5,316 $ 36 Construction and land development 2,058 74 2,660 63 Total commercial real estate 9,529 220 7,976 99 Commercial and industrial 5,749 128 4,365 90 Consumer loans: Residential and home equity 1,894 43 1,055 23 Consumer and other - - - - Total consumer 1,894 43 1,055 23 Total $ 17,172 $ 391 $ 13,396 $ 212 Purchased credit-impaired loans and purchased non-credit-impaired loans . Purchased loans, including loans acquired in business combinations, are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan and lease losses is not recorded at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either purchased credit-impaired (PCI) or purchased non-credit-impaired. PCI loans reflect credit deterioration since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. The outstanding contractual unpaid principal balance of PCI loans, excluding acquisition accounting adjustments, was $10.7 million at June 30, 2018 and $12.4 million at December 31, 2017. The carrying balance of PCI loans was $7.7 million at June 30, 2018 and $8.7 million at December 31, 2017. The following table presents the changes in the accretable yield for PCI loans for the six months ended June 30, 2018, and 2017: Six Months Ended June 30, (Dollars in thousands) 2018 2017 Balance, beginning of period $ 8,536 $ 573 Accretion to interest income (1,943 ) (18 ) Reclassification from non-accretable discount 189 9 Balance, end of period $ 6,782 $ 564 As of June 30, 2018 and December 31, 2017, the non-accretable difference between the contractually required payments and cash flows expected to be collected were $3.0 million and $3.7 million, respectively. Loans and Deposits to affiliates — The Company has entered into loan transactions with certain directors, affiliated companies and executive committee members (“affiliates”). Such transactions were made in the ordinary course of business on substantially the same terms and conditions, including interest rates and collateral, as those prevailing at the same time for comparable transactions with other customers, and did not, in the opinion of management, involve more than normal credit risk or present other unfavorable features. Total outstanding loans with affiliates were approximately $3.8 million and $3.4 million as of June 30, 2018, and December 31, 2017, respectively. Available lines of credit for loans and credit cards to affiliates were approximately $1.3 million and $330,000 as of June 30, 2018, and December 31, 2017, respectively. Deposits from affiliates were $8.2 million and $7.1 million as of June 30, 2018 and December 31, 2017, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 4 — Commitments and Contingencies Litigation contingencies — The Company is involved in various claims, legal actions and complaints which arise in the ordinary course of business. In the Company’s opinion, all such matters are adequately covered by insurance, are without merit or are of such kind, or involve such amounts, that unfavorable disposition would not have a material adverse effect on the financial condition or results of operations of the Company. Commitments to extend credit — In the normal course of business, the Company has outstanding commitments and contingent liabilities, such as commitments to extend credit and unused credit card lines, which are not included in the accompanying consolidated financial statements. The Company’s exposure to credit loss in the event of non-performance by other parties to the financial instruments for commitments to extend credit and unused credit card lines is represented by the contractual or notional amount of those instruments. The Company uses the same credit policies in making such commitments as it does for instruments that are included in the consolidated balance sheets. Contractual amounts of off-balance sheet financial instruments were as follows: June 30, December 31, (Dollars in thousands) 2018 2017 Commitments to extend credit, including unsecured commitments of $16,481 and $13,625 as of June 30, 2018 and December 31, 2017, respectively $ 587,699 $ 637,029 Stand-by letters of credit and bond commitments, including unsecured commitments of $455 and $440 as of June 30, 2018 and December 31, 2017, respectively 28,892 27,943 Unused credit card lines, all unsecured 22,045 24,949 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 to extend 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 Company, is based on management’s credit evaluation of the customer. Unused credit card lines 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 may not be drawn upon to the total extent to which the Company is committed. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 5 — Fair Value The Company measures and discloses certain assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (that is, not a forced liquidation or distressed sale). GAAP establishes a consistent framework for measuring fair value and disclosure requirements about fair value measurements. Among other things, the standard requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s estimates for market assumptions. These two types of inputs create the following fair value hierarchy: • Level 1 • Level 2 • Level 3 Note 5 — Fair Value - Continued The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize at a future date. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. Transfers between levels of the fair value hierarchy are deemed to occur at the end of the reporting period. The following methods were used to estimate the fair value of each class of financial instruments: Cash and cash equivalents : The carrying amount of these items is a reasonable estimate of their fair value. Securities : The estimated fair values of investment securities are priced using current active market quotes, if available, which are considered Level 1 measurements. For most of the portfolio, matrix pricing based on the securities’ relationship to other benchmark quoted prices is used to establish the fair value. These measurements are considered Level 2. Non-marketable securities : The fair value is based upon the redemption value of the stock, which equates to its carrying value. Loans Held for Sale : The carrying amount of these items is a reasonable estimate of their fair value. Loans held for investment : The fair value is estimated by discounting the future cash flows and estimated prepayments using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining term. Some loan types were valued at carrying value because of their floating rate or expected maturity characteristics. Bank-owned life insurance : The fair value of BOLI policies owned is based on the various insurance contracts' cash surrender value. Deposits : The carrying amount of deposits with no stated maturity, such as savings and checking accounts, is a reasonable estimate of their fair value. The market value of certificates of deposit is based upon the discounted value of contractual cash flows. The discount rate is determined using the rates currently offered on comparable instruments. Short-term borrowings : Short-term borrowing are overnight advances with the FHLB and their carrying amount is considered a reasonable approximation of their fair value. The following table presents estimated fair values of the Company’s financial instruments as of June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 Carrying Estimated Carrying Estimated (Dollars in thousands) Level Value Fair Value Value Fair Value Financial Assets: Cash and cash equivalents 1 $ 52,322 $ 52,322 $ 51,027 $ 51,027 Securities - available-for-sale 2 236,699 236,699 263,056 263,056 Securities - held-to-maturity 2 67,922 67,059 74,654 74,301 Non-marketable securities 2 6,151 6,151 3,706 3,706 Loans held for sale 2 11,058 11,058 10,871 10,871 Loans held for investment 3 1,669,651 1,664,262 1,609,141 1,607,388 Bank-owned life insurance 1 26,120 26,120 23,566 23,566 Financial Liabilities: Total deposits 2 $ 1,781,940 $ 1,556,471 $ 1,814,632 $ 1,596,966 Short-term borrowings 2 90,000 90,000 40,000 40,000 Note 5 — Fair Value - Continued Assets measured on a recurring and non-recurring basis are as follows: (Dollars in thousands) Level 1 Level 2 Level 3 Total As of June 30, 2018 Fair valued on a recurring basis: Investment securities available-for-sale $ - $ 236,699 $ - $ 236,699 Fair valued on a non-recurring basis: Impaired loans - - 6,312 6,312 As of December 31, 2017 Fair valued on a recurring basis: Investment securities available-for-sale $ - $ 263,056 $ - $ 263,056 Fair valued on a non-recurring basis: Impaired loans - - 1,740 1,740 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6 — Income Taxes Income tax expense was $3.3 million and $3.6 million for the three months ended June 30, 2018 and 2017, respectively. The Company’s effective tax rate for the second quarter of 2018 was 23.9% compared with 35.6% in the second quarter of 2017. The tax rate in the second quarter of 2018 is lower than the same quarter in 2017 due primarily to the reduction in the federal corporate tax rate to a flat rate of 21%, the reduction of the Utah state corporate tax rate to 4.95% as well as tax benefits related to tax-deductible stock compensation expense. |
Regulatory Capital Matters
Regulatory Capital Matters | 6 Months Ended |
Jun. 30, 2018 | |
Banking And Thrift [Abstract] | |
Regulatory Capital Matters | Note 7 — Regulatory Capital Matters The consolidated Tier 1 Leverage ratio increased from 11.46% at December 31, 2017 to 11.48% as of June 30, 2018. Federal Reserve Board Regulations require maintenance of certain minimum reserve balances based on certain average deposits which as of June 30, 2018 and December 31, 2017 were $17.0 million and $19.0 million, respectively. The Company’s Board of Directors may declare a cash or stock dividend out of retained earnings provided the regulatory minimum capital ratios are met. The Company plans to maintain capital ratios that meet the well-capitalized standards per the regulations and, therefore, plans to limit dividends to amounts that are appropriate to maintain those well-capitalized regulatory capital ratios. |
Incentive Share-Based Plan and
Incentive Share-Based Plan and Other Employee Benefits | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Incentive Share-Based Plan and Other Employee Benefits | Note 8 — Incentive Share-Based Plan and Other Employee Benefits In June 2014, the Board of Directors (“Board”) and shareholders of the Company approved a share-based incentive plan (“the Plan”). The Plan provides for various share-based incentive awards including incentive share-based options, non-qualified share-based options, restricted shares, and stock appreciation rights to be granted to officers, directors and other key employees. The maximum aggregate number of shares that may be issued under the Plan is 800,000 common shares. The share-based awards are granted to participants under the Plan at a price not less than the fair value on the date of grant and for terms of up to ten years. The Plan also allows for granting of share-based awards to directors and consultants who are not employees of the Company. During the six months ended June 30, 2018, the Company granted options for the purchase of 26,400 common shares, which have a weighted average exercise price of $31.42 per share and a weighted average fair value as of the date of grant of $3.3944 per share. Additionally, the Company granted 27,788 restricted stock units (“RSU”) at a weighted-average fair value of $30.30 per unit. The options and RSU’s generally vest over periods from one to three years. The Company recorded share-based compensation expense of $370,000 and $218,000 for the six months ended June 30, 2018 and 2017, respectively. |
Acquisition Related Measurement
Acquisition Related Measurement Period Adjustments | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisition Related Measurement Period Adjustments | Note 9 — Acquisition Related Measurement Period Adjustments During the six months ended June 30, 2018, the Company made acquisition related measurement period adjustments of $335,000. Changes to initially estimated fair values from a business combination are recognized as an adjustment to goodwill over the measurement period, which cannot exceed one year from the acquisition date. The adjustments to goodwill related to changes in the preliminary goodwill recorded for the acquisition of Town & Country Bank and were related to loan valuations. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Basis Of Presentation [Abstract] | |
Nature of Operations and Basis of Consolidation | Nature of Operations and basis of consolidation — People’s Utah Bancorp, Inc. (“PUB” or the “Company”) is a Utah corporation headquartered in American Fork, Utah. The Company operates all business activities through its wholly-owned banking subsidiary, People’s Intermountain Bank (“PIB” or the “Bank”), which was organized in 1913. The Bank is a Utah State chartered bank. The Bank operates under the jurisdiction of the Utah Department of Financial Institutions, and its deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”). The Bank is not a member of the Federal Reserve System; however, PUB is operated as a bank holding company under the Federal Bank Holding Company Act of 1956 and is the sole shareholder of the Bank. Both PUB and the Bank are subject to periodic examination by applicable federal and state regulatory agencies and file periodic reports and other information with the agencies. PIB is a community bank that provides highly personalized retail and commercial banking products and services to small and medium sized businesses and individuals. Products and services are offered primarily through 26 retail branches located throughout Utah and southern Idaho. PIB has three banking divisions, Bank of American Fork, Lewiston State Bank, and People’s Town & Country Bank; a leasing division, GrowthFunding Equipment Finance; and a mortgage division, People’s Intermountain Bank Mortgage. The Bank offers a full range of short-term to long-term commercial, personal and mortgage loans. Commercial loans include both secured and unsecured loans for working capital (including inventory and accounts receivable), business expansion (including acquisition of real estate and improvements), and purchase of equipment and machinery. Consumer loans include secured and unsecured loans to finance automobiles, home improvements, education, and personal investments. The Bank also offers mortgage loans secured by personal residences. The Bank offers a full range of deposit services typically available in most financial institutions, including checking accounts, savings accounts, and time deposits. The Bank solicits these accounts from individuals, businesses, associations and organizations, and governmental entities. The interim condensed consolidated financial statements include the accounts of the Company together with its subsidiary Bank. All intercompany transactions and balances have been eliminated. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial information. In the opinion of management, the interim statements reflect all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis and all such adjustments are of a normal recurring nature. These financial statements and the accompanying notes should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2017, which are included in the Company’s 2017 Form 10-K. Operating results for the three months and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018, or any other period. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported 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, the valuation of real estate acquired through foreclosure, deferred tax assets, and share-based compensation. |
Earnings Per Share | Earnings per share — Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares include shares that may be issued by the Company for outstanding stock options determined using the treasury stock method and for all outstanding restricted stock units (“RSU”). Note 1 — Basis of Presentation – Continued Earnings per common share have been computed based on the following: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands, except share and per share data) 2018 2017 2018 2017 Numerator Net income $ 10,467 $ 6,494 $ 19,471 $ 13,015 Denominator Weighted-average number of common shares outstanding 18,679,908 17,937,926 18,639,397 17,911,125 Incremental shares assumed for stock options and RSUs 309,268 413,605 324,152 422,903 Weighted-average number of dilutive shares outstanding 18,989,176 18,351,531 18,963,549 18,334,028 Basic earnings per common share $ 0.56 $ 0.36 $ 1.04 $ 0.73 Diluted earnings per common share $ 0.55 $ 0.35 $ 1.03 $ 0.71 |
Reclassifications | Reclassifications — Certain amounts in the prior period’s financial statements have been reclassified to conform to the current period’s presentation. |
Impact of Recent Authoritative Accounting Guidance | Impact of Recent Authoritative Accounting Guidance —The Accounting Standards Codification™ (“ASC”) is the Financial Accounting Standards Board’s (“FASB”) officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Periodically, the FASB will issue Accounting Standard Updates (“ASU”) to its ASC. Rules and interpretive releases of the SEC under the authority of the federal securities laws are also sources of authoritative GAAP for us as an SEC registrant. All other accounting literature is non-authoritative. In February 2018, the FASB issued ASU 2018-02, Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU gives businesses the option of reclassifying to retained earnings the so-called “stranded tax effects” left in accumulated other comprehensive income (“AOCI”) because of the reduction to the corporate income tax rate. The amendments are effective for all organizations for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. The FASB said that businesses and organizations should apply the amendments either in the period of adoption or retrospectively to each period in which the effect of the change in the tax rate is recognized. The Company early adopted this ASU on December 31, 2017. In March 2017, FASB issued ASU 2017-08, "Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities." The ASU requires entities to amortize the premium on certain purchased callable debt securities to the earliest call date, which more closely aligns the amortization period of premiums and discounts to expectations incorporated in the market prices. Entities will no longer recognize a loss in earnings upon the debtor's exercise of a call on a purchased debt security held at a premium. The ASU does not require any accounting change for debt securities held at a discount; therefore the discount will continue to be amortized as an adjustment of yield over the contractual life of the investment. This ASU is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted for all entities. The adoption of ASU No. 2017-08 is not expected to have a material impact on the Company's Consolidated Financial Statements. In January 2017, FASB issued ASU 2017-04, "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The ASU removes the requirement to compare the implied fair value of goodwill with its carrying value as required in Step 2 of the goodwill impairment test. Under the ASU, registrants would perform their goodwill impairment test and recognize an impairment charge for any amount the carrying value exceeds the reporting unit's fair value, but limited by the amount of goodwill allocated to that reporting unit. This ASU is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted for all entities after January 1, 2017. The Company early adopted this ASU on December 31, 2017 and adoption did not have a material effect on the Company's Consolidated Financial Statements. In January 2017, FASB issued ASU 2017-03, "Accounting Changes and Error Corrections (Topic 250) and Investments-Equity Method and Joint Ventures (Topic 323)." The ASU amends the Codification for SEC staff announcements made at recent Emerging Issues Task Force (EITF) meetings. The SEC guidance that specifically relates to our Consolidated Financial Statements was from the September 2016 meeting, where the SEC staff expressed their expectations about the extent of disclosures registrants should make about the effects of the new FASB guidance as well as any amendments issued prior to adoption, on revenue (ASU 2014-09), leases (ASU 2016-02) and credit losses on financial instruments (ASU 2016-13) in accordance with SAB Topic 11.M. Registrants are required to disclose the effect that recently issued accounting standards will have on their financial statements when adopted in a future period. In cases where a registrant cannot reasonably estimate the impact of the adoption, then additional qualitative disclosures should be considered. The ASU incorporates these SEC staff views into ASC 250 and adds references to that guidance in the transition paragraphs of each of the three new standards. The Company has adopted the amendments in this ASU and appropriate disclosures have been included in this Note for each recently issued accounting standard. Note 1 — Basis of Presentation – Continued In December 2016, FASB issued ASU No. 2016-19, "Technical Corrections and Improvements" and ASU 2016-20, "Technical Corrections and Improvements to Topic 606: Revenue from Contracts with Customers." On November 10, 2010, FASB added a standing project that will facilitate the FASB Accounting Standards Codification ("Codification”) updates for technical corrections, clarifications, and improvements. These amendments are referred to as Technical Corrections and Improvements. Maintenance updates include non-substantive corrections to the Codification, such as editorial corrections, various link-related changes, and changes to source fragment information. These updates contain amendments that will affect a wide variety of Topics in the Codification. The amendments in these ASUs will apply to all reporting entities within the scope of the affected accounting guidance and generally fall into one of four categories: amendments related to differences between original guidance and the Codification, guidance clarification and reference corrections, simplification, and minor improvements. In summary, the amendments represent changes to clarify the Codification, correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice. Transition guidance varies based on the amendments in the ASUs. The amendments that require transition guidance are effective for fiscal years and interim reporting periods after December 15, 2016. Early adoption is permitted including adoption in an interim period. All other amendments are effective upon the issuance of these ASUs. Neither ASU 2016-19 nor ASU 2016-20 had a material impact on the Company's Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." The ASU amends the guidance on the classification of certain cash receipts and payments in the statement of cash flows and is intended to reduce the diversity in practice. This ASU is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted for all entities beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2016-15 on January 1, 2018 did not have a material impact on the Company’s Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The ASU significantly changes the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model. This ASU is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted for all entities beginning after December 15, 2018, including interim periods within those fiscal years. The Company is in the process of identifying required changes to the loan loss estimation models and processes and evaluating the impact of this new guidance. Once adopted, we expect our allowance for loan losses to increase, however, until our evaluation is complete the magnitude of the increase will be unknown. In February 2016, the FASB issued ASU 2016-02, "Leases (ASC 842)." The guidance in this ASU requires most leases to be recognized on the balance sheet as a right-of-use asset and a lease liability. It will be critical to identify leases embedded in a contract to avoid misstating the lessee’s balance sheet. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. This ASU is effective for interim and annual periods beginning after December 15, 2018. We are currently evaluating the impact of this guidance on our Consolidated Financial Statements and the timing of adoption. The Company will compile an inventory of all leased assets to determine the impact of ASU 2016-02 on its financial condition and results of operations. Once adopted, we expect to report higher assets and liabilities on our Consolidated Balance Sheets as a result of including right-of-use assets and lease liabilities related to certain banking offices and certain equipment under noncancelable operating lease agreements, which currently are not reflected in our Consolidated Balance Sheets. We do not expect the guidance to have a material impact on the Consolidated Statements of Income or the Consolidated Statements of Changes in Shareholders’ Equity. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The ASU amends the guidance in GAAP on the classification and measurement of financial instruments. The ASU includes the following changes: i) equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (ii) requires the use of exit price notion when measuring the fair value of financial instruments for disclosure purposes; (iii) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e. securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; (iv) allows an equity investment that does not have readily determinable fair values, to be measured at cost minus impairment (if any), plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer; (v) eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, and requires a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e. securities or loans and receivables) on the balance sheet or in the accompanying notes to the financial statements; and (vii) clarifies that a valuation allowance on a deferred tax asset related to available-for-sale securities should be evaluated in combination with the organization’s other deferred tax assets. This ASU is effective for interim and annual periods beginning after December 15, 2017. The Company adopted ASU No. 2016-01 effective January 1, 2018, and the adoption did not have a material impact on the Company's Consolidated Financial Statements. Note 1 — Basis of Presentation – Continued In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606)”, which defers the effective date of Accounting Standard Update ASU No. 2014-09 one year. ASU No. 2014-09 created Topic 606 and supersedes Topic 605, Revenue Recognition. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In general, the new guidance requires companies to use more judgment and make more estimates than under current guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which provides clarifying guidance in certain narrow areas and adds some practical expedients, but does not change the core revenue recognition principle in Topic 606. ASU No. 2015-14 is effective for interim and annual periods beginning after December 15, 2017. For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. The Company adopted this standard on January 1, 2018 using the full retrospective method. A significant amount of the Company’s revenues are derived from net interest income on financial assets and liabilities, which are excluded from the scope of the amended guidance. Revenue streams reported as deposit fees and other service charges. which include transaction based deposit fees, and interchange fees on credit and debit cards, are within the scope of Topic 606. The Company completed its assessment of revenue streams and associated incremental costs of contracts affected by the standard. The Company’s adoption of this standard did not change the timing or the amount of revenue recognized in prior periods, however the presentation of certain costs associated with card processing will now be offset against card processing revenue in non-interest income. The change in presentation resulted in $1.2 million of expenses for the six months ended June 30, 2018 being netted against card processing income and reported in non-interest income instead of as payment and card processing expenses in non-interest expense. In addition, to conform to the current period presentation, $1.0 million of card processing related expenses for the six months ended June 30, 2017, were reclassified from payment and card processing expense in non-interest expense to being netted against card processing revenue in non-interest income. The Company elected to apply the practical expedient and therefore does not disclose information about remaining performance obligations that have an original expected term of one year or less and allows the Company to expense costs related to obtaining a contract as incurred when the amortization period would have been one year or less. The following table presents the impact of adopting of the new revenue standard on our Statements of Income for the six months ended June 30, 2018 and 2017: Six Months Ended Six Months Ended June 30, 2018 June 30, 2017 Balance without Balance without (Dollars in thousands, except share and per share data) As Reported Adoption of ASC 606 Effect of Change As Reported Adoption of ASC 606 Effect of Change Non-interest income Card Processing $ 1,522 $ 2,749 $ (1,227 ) $ 1,287 $ 2,332 $ (1,045 ) Service charges on deposit accounts 1,377 1,377 - 1,114 1,114 - Non-interest Expense Card Processing $ - $ 1,227 $ (1,227 ) $ - $ 1,045 $ (1,045 ) |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Basis Of Presentation [Abstract] | |
Schedule of Earnings Per Common Share | Earnings per common share have been computed based on the following: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands, except share and per share data) 2018 2017 2018 2017 Numerator Net income $ 10,467 $ 6,494 $ 19,471 $ 13,015 Denominator Weighted-average number of common shares outstanding 18,679,908 17,937,926 18,639,397 17,911,125 Incremental shares assumed for stock options and RSUs 309,268 413,605 324,152 422,903 Weighted-average number of dilutive shares outstanding 18,989,176 18,351,531 18,963,549 18,334,028 Basic earnings per common share $ 0.56 $ 0.36 $ 1.04 $ 0.73 Diluted earnings per common share $ 0.55 $ 0.35 $ 1.03 $ 0.71 |
Impact of Adopting New Revenue Standard on Statement of Income | The following table presents the impact of adopting of the new revenue standard on our Statements of Income for the six months ended June 30, 2018 and 2017: Six Months Ended Six Months Ended June 30, 2018 June 30, 2017 Balance without Balance without (Dollars in thousands, except share and per share data) As Reported Adoption of ASC 606 Effect of Change As Reported Adoption of ASC 606 Effect of Change Non-interest income Card Processing $ 1,522 $ 2,749 $ (1,227 ) $ 1,287 $ 2,332 $ (1,045 ) Service charges on deposit accounts 1,377 1,377 - 1,114 1,114 - Non-interest Expense Card Processing $ - $ 1,227 $ (1,227 ) $ - $ 1,045 $ (1,045 ) |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Cost and Estimated Fair Value of Investment Securities Available for Sale | Amortized cost and estimated fair value of investment securities available-for-sale are summarized as follows: Gross Unrealized Losses Less 12 Gross Than Months Amortized Unrealized 12 or Fair (Dollars in thousands) Cost Gains Months Longer Value As of June 30, 2018 U.S. Government-sponsored securities $ 48,953 $ - $ (327 ) $ (590 ) $ 48,036 Municipal securities 11,977 107 (65 ) (27 ) 11,992 Mortgage-backed securities 177,360 27 (2,376 ) (3,110 ) 171,901 Corporate securities 5,000 - (12 ) (218 ) 4,770 $ 243,290 $ 134 $ (2,780 ) $ (3,945 ) $ 236,699 As of December 31, 2017 U.S. Government-sponsored securities $ 48,950 $ 13 $ (6 ) $ (453 ) $ 48,504 Municipal securities 13,310 184 (22 ) (18 ) 13,454 Mortgage-backed securities 198,100 71 (1,145 ) (1,764 ) 195,262 Corporate securities 5,500 573 - (237 ) 5,836 $ 265,860 $ 841 $ (1,173 ) $ (2,472 ) $ 263,056 |
Summary of Amortized Cost and Estimated Fair Value of Investment Securities Held-to-Maturity | Amortized cost and estimated fair value of investment securities held-to-maturity are as follows: Gross Unrealized Losses Less 12 Gross Than Months Amortized Unrealized 12 or Fair (Dollars in thousands) Cost Gains Months Longer Value As of June 30, 2018 Municipal securities $ 67,922 $ 17 $ (543 ) $ (337 ) $ 67,059 As of December 31, 2017 Municipal securities $ 74,654 $ 167 $ (293 ) $ (227 ) $ 74,301 |
Summary of Gross Unrealized Losses and Fair Value for Securities Available-for-Sale and Held-to-Maturity | At June 30, 2018 and December 31, 2017, the gross unrealized losses and the fair value for securities available-for-sale and held-to-maturity was as follows: June 30, 2018 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available-for-Sale U.S. Government-sponsored securities $ 14,628 $ (327 ) $ 33,407 $ (590 ) $ 48,035 $ (917 ) Municipal securities 4,783 (65 ) 810 (27 ) 5,593 (92 ) Mortgage-backed securities 80,778 (2,376 ) 88,267 (3,110 ) 169,045 (5,486 ) Corporate securities 1,987 (12 ) 2,783 (218 ) 4,770 (230 ) $ 102,176 $ (2,780 ) $ 125,267 $ (3,945 ) $ 227,443 $ (6,725 ) Held-to Maturity Municipal securities $ 48,014 $ (543 ) $ 9,196 $ (337 ) $ 57,210 $ (880 ) December 31, 2017 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available-for-Sale U.S. Government-sponsored securities $ 5,087 $ (6 ) $ 33,543 $ (453 ) $ 38,630 $ (459 ) Municipal securities 3,523 (22 ) 830 (18 ) 4,353 (40 ) Mortgage-backed securities 112,878 (1,145 ) 72,859 (1,764 ) 185,737 (2,909 ) Corporate securities - - 4,763 (237 ) 4,763 (237 ) $ 121,488 $ (1,173 ) $ 111,995 $ (2,472 ) $ 233,483 $ (3,645 ) Held-to Maturity Municipal securities $ 39,380 $ (293 ) $ 10,389 $ (227 ) $ 49,769 $ (520 ) |
Amortized Cost and Estimated Fair Value of Investment Securities that are Available-for-Sale and Held-to-Maturity by Contractual Maturity | The amortized cost and estimated fair value of investment securities that are available-for-sale and held-to-maturity at June 30, 2018, by contractual maturity, are as follows: Available-For-Sale Held-To-Maturity Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Securities maturing in: One year or less $ 2,528 $ 2,545 $ 8,388 $ 8,370 After one year through five years 75,740 74,398 38,735 38,430 After five years through ten years 52,157 50,523 15,153 14,725 After ten years 112,865 109,233 5,646 5,534 $ 243,290 $ 236,699 $ 67,922 $ 67,059 |
Loans and Allowance for Loan 21
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Summary of Loans | Loans are summarized as follows: June 30, December 31, (Dollars in thousands) 2018 2017 Loans held for investment: Commercial real estate loans: Real estate term $ 842,352 $ 784,148 Construction and land development 373,845 369,590 Total commercial real estate loans 1,216,197 1,153,738 Commercial and industrial loans 310,228 294,085 Consumer loans: Residential and home equity 153,084 158,591 Consumer and other 16,978 25,591 Total consumer loans 170,062 184,182 Total gross loans 1,696,487 1,632,005 Net deferred loan fees (4,528 ) (4,561 ) Total loans held for investment 1,691,959 1,627,444 Allowance for loan losses (22,308 ) (18,303 ) Total loans held for investment, net $ 1,669,651 $ 1,609,141 |
Summary of Changes in Allowance for Loan Losses | Changes in the allowance for loan losses (“ALLL”) are as follows: Three Months Ended June 30, 2018 Real Construction Commercial Residential Consumer Estate and Land and and and (Dollars in thousands) Term Development Industrial Home Equity Other Total Balance at beginning of period $ 7,249 $ 6,808 $ 5,962 $ 642 $ 70 $ 20,731 Additions: Provisions for loan losses 1,779 (65 ) (258 ) (37 ) 56 1,475 Deductions: Gross loan charge-offs - - (97 ) - (107 ) (204 ) Recoveries - 46 173 54 33 306 Net loan (charge-offs) / recoveries - 46 76 54 (74 ) 102 Balance at end of period $ 9,028 $ 6,789 $ 5,780 $ 659 $ 52 $ 22,308 Note 3 — Loans and Allowance for Loan Losses – Continued Three Months Ended June 30, 2017 Real Construction Commercial Residential Consumer Estate and Land and and and (Dollars in thousands) Term Development Industrial Home Equity Other Total Balance at beginning of period $ 7,149 $ 4,683 $ 4,222 $ 529 $ 61 $ 16,644 Additions: Provisions for loan losses 181 394 342 (28 ) 11 900 Deductions: Gross loan charge-offs (350 ) - (114 ) - (48 ) (512 ) Recoveries 177 - 39 2 21 239 Net loan (charge-offs) / recoveries (173 ) - (75 ) 2 (27 ) (273 ) Balance at end of period $ 7,157 $ 5,077 $ 4,489 $ 503 $ 45 $ 17,271 Six Months Ended June 30, 2018 Real Construction Commercial Residential Consumer Estate and Land and and and (Dollars in thousands) Term Development Industrial Home Equity Other Total Balance at beginning of period $ 6,706 $ 6,309 $ 4,314 $ 815 $ 159 $ 18,303 Additions: Provisions for loan losses 2,310 409 1,067 (237 ) (24 ) 3,525 Deductions: Gross loan charge-offs - - (290 ) - (172 ) (462 ) Recoveries 12 71 689 81 89 942 Net loan (charge-offs) / recoveries 12 71 399 81 (83 ) 480 Balance at end of period $ 9,028 $ 6,789 $ 5,780 $ 659 $ 52 $ 22,308 Six Months Ended June 30, 2017 Real Construction Commercial Residential Consumer Estate and Land and and and (Dollars in thousands) Term Development Industrial Home Equity Other Total Balance at beginning of period $ 6,770 $ 5,449 $ 3,718 $ 617 $ 161 $ 16,715 Additions: Provisions for loan losses 556 (451 ) 966 84 (55 ) 1,100 Deductions: Gross loan charge-offs (350 ) - (272 ) (338 ) (113 ) (1,073 ) Recoveries 181 79 77 140 52 529 Net loan (charge-offs) / recoveries (169 ) 79 (195 ) (198 ) (61 ) (544 ) Balance at end of period $ 7,157 $ 5,077 $ 4,489 $ 503 $ 45 $ 17,271 |
Summary of Nonaccrual Loans | Non-accrual loans are summarized as follows: June 30, December 31, (Dollars in thousands) 2018 2017 Non-accrual loans, not troubled debt restructured: Real estate term $ 1,580 $ - Construction and land development 320 - Commercial and industrial 1,539 223 Residential and home equity 728 - Consumer and other 39 - Total non-accrual loans, not troubled debt restructured 4,206 223 Troubled debt restructured loans, non-accrual: Real estate term 1,556 - Construction and land development - - Commercial and industrial 195 - Residential and home equity - - Consumer and other - - Total troubled debt restructured loans, non-accrual 1,751 - Total non-accrual loans $ 5,957 $ 223 |
Summary of Troubled Debt Restructured Loans | Troubled debt restructured loans are summarized as follows: June 30, December 31, (Dollars in thousands) 2018 2017 Accruing troubled debt restructured loans $ 2,495 $ 3,307 Non-accrual troubled debt restructured loans 1,751 - Total troubled debt restructured loans $ 4,246 $ 3,307 |
Summary of Current and Past Due Loans Held For Investment (Accruing And Non-Accruing) | Current and past due loans held for investment (accruing and non-accruing) are summarized as follows: June 30, 2018 Purchased 30-89 Days 90+ Days Non- Total Credit Total (Dollars in thousands) Current Past Due Past Due accrual Past Due Impaired Loans Commercial real estate: Real estate term $ 836,191 $ 2,659 $ - $ 3,136 $ 5,795 $ 366 $ 842,352 Construction and land development 367,187 5,920 - 320 6,240 418 373,845 Total commercial real estate 1,203,378 8,579 - 3,456 12,035 784 1,216,197 Commercial and industrial 299,280 1,932 322 1,734 3,988 6,960 310,228 Consumer: Residential and home equity 151,450 906 - 728 1,634 - 153,084 Consumer and other 16,684 241 14 39 294 - 16,978 Total consumer 168,134 1,147 14 767 1,928 - 170,062 Total gross loans $ 1,670,792 $ 11,658 $ 336 $ 5,957 $ 17,951 $ 7,744 $ 1,696,487 Note 3 — Loans and Allowance for Loan Losses – Continued December 31, 2017 Purchased 30-89 Days 90+ Days Non- Total Credit Total (Dollars in thousands) Current Past Due Past Due accrual Past Due Impaired Loans Commercial real estate: Real estate term $ 780,895 $ 2,243 $ - $ - $ 2,243 $ 1,010 $ 784,148 Construction and land development 361,845 7,095 - - 7,095 650 369,590 Total commercial real estate 1,142,740 9,338 - - 9,338 1,660 1,153,738 Commercial and industrial 282,638 4,210 - 223 4,433 7,014 294,085 Consumer: Residential and home equity 156,379 2,212 - - 2,212 - 158,591 Consumer and other 25,307 283 1 - 284 - 25,591 Total consumer 181,686 2,495 1 - 2,496 - 184,182 Total gross loans $ 1,607,064 $ 16,043 $ 1 $ 223 $ 16,267 $ 8,674 $ 1,632,005 |
Summary of Outstanding Loan Balances (Accruing and Non - Accruing) Categorized by Credit Quality Indicators | Outstanding loan balances (accruing and non-accruing) categorized by these credit quality indicators are summarized as follows: June 30, 2018 Special Total Total (Dollars in thousands) Pass Mention Substandard Doubtful Loans Allowance Commercial real estate: Real estate term $ 813,802 $ 18,401 $ 10,149 $ - $ 842,352 $ 9,028 Construction and land development 370,273 1,614 1,958 - 373,845 6,789 Total commercial real estate 1,184,075 20,015 12,107 - 1,216,197 15,817 Commercial and industrial 287,284 5,707 17,237 - 310,228 5,780 Consumer loans: Residential and home equity 148,554 1,497 3,033 - 153,084 659 Consumer and other 16,863 46 57 12 16,978 52 Total consumer 165,417 1,543 3,090 12 170,062 711 Total $ 1,636,776 $ 27,265 $ 32,434 $ 12 $ 1,696,487 $ 22,308 Note 3 — Loans and Allowance for Loan Losses – Continued December 31, 2017 Special Total Total (Dollars in thousands) Pass Mention Substandard Doubtful Loans Allowance Commercial real estate: Real estate term $ 758,575 $ 13,055 $ 12,518 $ - $ 784,148 $ 6,706 Construction and land development 358,766 7,227 3,597 - 369,590 6,309 Total commercial real estate 1,117,341 20,282 16,115 - 1,153,738 13,015 Commercial and industrial 274,535 13,464 6,086 - 294,085 4,314 Consumer loans: Residential and home equity 152,753 3,913 1,925 - 158,591 815 Consumer and other 25,461 45 72 13 25,591 159 Total consumer 178,214 3,958 1,997 13 184,182 974 Total $ 1,570,090 $ 37,704 $ 24,198 $ 13 $ 1,632,005 $ 18,303 |
Summary of Information On Impaired Loans, Excluding Purchased Credit Impaired ("PCI") Loans | The ALLL and outstanding loan balances reviewed according to the Company’s impairment method are summarized as follows: June 30, 2018 Real Construction Commercial Residential Consumer Estate and Land and and and (Dollars in thousands) Term Development Industrial Home Equity Other Total Allowance for loan losses: Individually evaluated for impairment $ 372 $ - $ 877 $ 3 $ - $ 1,252 Collectively evaluated for impairment 8,656 6,789 4,551 656 52 20,704 Purchased credit-impaired loans - - 352 - - 352 Total $ 9,028 $ 6,789 $ 5,780 $ 659 $ 52 $ 22,308 Outstanding loan balances: Individually evaluated for impairment $ 8,750 $ 1,549 $ 9,453 $ 2,638 $ - $ 22,390 Collectively evaluated for impairment 833,236 371,878 293,815 150,446 16,978 1,666,353 Purchased credit-impaired loans 366 418 6,960 - - 7,744 Total gross loans $ 842,352 $ 373,845 $ 310,228 $ 153,084 $ 16,978 $ 1,696,487 December 31, 2017 Real Construction Commercial Residential Consumer Estate and Land and and and (Dollars in thousands) Term Development Industrial Home Equity Other Total Allowance for loan losses: Individually evaluated for impairment $ - $ 3 $ 41 $ 101 $ - $ 145 Collectively evaluated for impairment 6,706 6,306 4,273 714 159 18,158 Purchased credit-impaired loans - - - - - - Total $ 6,706 $ 6,309 $ 4,314 $ 815 $ 159 $ 18,303 Outstanding loan balances: Individually evaluated for impairment $ 6,191 $ 2,568 $ 2,044 $ 1,150 $ - $ 11,953 Collectively evaluated for impairment 776,947 366,372 285,027 157,441 25,591 1,611,378 Purchased credit-impaired loans 1,010 650 7,014 - - 8,674 Total gross loans $ 784,148 $ 369,590 $ 294,085 $ 158,591 $ 25,591 $ 1,632,005 Note 3 — Loans and Allowance for Loan Losses – Continued Information on impaired loans, excluding Purchased Credit Impaired (“PCI”) loans, is summarized as follows: June 30, 2018 Recorded Investment Unpaid Total Principal With No With Recorded Related (Dollars in thousands) Balance Allowance Allowance Investment Allowance Commercial real estate: Real estate term $ 11,916 $ 7,695 $ 1,055 $ 8,750 $ 372 Construction and land development 2,191 1,549 - 1,549 - Total commercial real estate 14,107 9,244 1,055 10,299 372 Commercial and industrial 10,887 3,208 6,245 9,453 877 Consumer loans: Residential and home equity 2,638 2,374 264 2,638 3 Consumer and other - - - - - Total consumer 2,638 2,374 264 2,638 3 Total $ 27,632 $ 14,826 $ 7,564 $ 22,390 $ 1,252 December 31, 2017 Recorded Investment Unpaid Total Principal With No With Recorded Related (Dollars in thousands) Balance Allowance Allowance Investment Allowance Commercial real estate: Real estate term $ 7,090 $ 6,191 $ - $ 6,191 $ - Construction and land development 3,485 2,372 196 2,568 3 Total commercial real estate 10,575 8,563 196 8,759 3 Commercial and industrial 6,204 1,276 768 2,044 41 Consumer loans: Residential and home equity 1,150 229 921 1,150 101 Consumer and other - - - - - Total consumer 1,150 229 921 1,150 101 Total $ 17,929 $ 10,068 $ 1,885 $ 11,953 $ 145 The interest income recognized on impaired loans was as follows: Three Months Ended June 30, 2018 June 30, 2017 Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognition Investment Recognition Commercial real estate: Real estate term $ 6,312 $ 43 $ 4,734 $ 6 Construction and land development 2,033 35 2,872 32 Total commercial real estate 8,345 78 7,606 38 Commercial and industrial 7,822 87 4,280 36 Consumer loans: Residential and home equity 2,086 22 850 10 Consumer and other - - - - Total consumer 2,086 22 850 10 Total $ 18,253 $ 187 $ 12,736 $ 84 Note 3 — Loans and Allowance for Loan Losses – Continued Six Months Ended June 30, 2018 June 30, 2017 Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognition Investment Recognition Commercial real estate: Real estate term $ 7,471 $ 146 $ 5,316 $ 36 Construction and land development 2,058 74 2,660 63 Total commercial real estate 9,529 220 7,976 99 Commercial and industrial 5,749 128 4,365 90 Consumer loans: Residential and home equity 1,894 43 1,055 23 Consumer and other - - - - Total consumer 1,894 43 1,055 23 Total $ 17,172 $ 391 $ 13,396 $ 212 |
Changes in Accretable Yield for PCI Loans | The following table presents the changes in the accretable yield for PCI loans for the six months ended June 30, 2018, and 2017: Six Months Ended June 30, (Dollars in thousands) 2018 2017 Balance, beginning of period $ 8,536 $ 573 Accretion to interest income (1,943 ) (18 ) Reclassification from non-accretable discount 189 9 Balance, end of period $ 6,782 $ 564 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Contractual Amounts of Off-balance Sheet Financial Instruments | Contractual amounts of off-balance sheet financial instruments were as follows: June 30, December 31, (Dollars in thousands) 2018 2017 Commitments to extend credit, including unsecured commitments of $16,481 and $13,625 as of June 30, 2018 and December 31, 2017, respectively $ 587,699 $ 637,029 Stand-by letters of credit and bond commitments, including unsecured commitments of $455 and $440 as of June 30, 2018 and December 31, 2017, respectively 28,892 27,943 Unused credit card lines, all unsecured 22,045 24,949 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Estimated Fair Values of Financial Instruments | The following table presents estimated fair values of the Company’s financial instruments as of June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 Carrying Estimated Carrying Estimated (Dollars in thousands) Level Value Fair Value Value Fair Value Financial Assets: Cash and cash equivalents 1 $ 52,322 $ 52,322 $ 51,027 $ 51,027 Securities - available-for-sale 2 236,699 236,699 263,056 263,056 Securities - held-to-maturity 2 67,922 67,059 74,654 74,301 Non-marketable securities 2 6,151 6,151 3,706 3,706 Loans held for sale 2 11,058 11,058 10,871 10,871 Loans held for investment 3 1,669,651 1,664,262 1,609,141 1,607,388 Bank-owned life insurance 1 26,120 26,120 23,566 23,566 Financial Liabilities: Total deposits 2 $ 1,781,940 $ 1,556,471 $ 1,814,632 $ 1,596,966 Short-term borrowings 2 90,000 90,000 40,000 40,000 |
Summary of Asset Measured on Recurring and Non-recurring Basic at Fair Value | Assets measured on a recurring and non-recurring basis are as follows: (Dollars in thousands) Level 1 Level 2 Level 3 Total As of June 30, 2018 Fair valued on a recurring basis: Investment securities available-for-sale $ - $ 236,699 $ - $ 236,699 Fair valued on a non-recurring basis: Impaired loans - - 6,312 6,312 As of December 31, 2017 Fair valued on a recurring basis: Investment securities available-for-sale $ - $ 263,056 $ - $ 263,056 Fair valued on a non-recurring basis: Impaired loans - - 1,740 1,740 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)BranchDivision | Jun. 30, 2017USD ($) | |
Basis Of Presentation [Line Items] | ||
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false] | true | |
Balance without Adoption of ASC 606 | Topic 606 | ||
Basis Of Presentation [Line Items] | ||
Card processing | $ | $ 1,227 | $ 1,045 |
People's Intermountain Bank | ||
Basis Of Presentation [Line Items] | ||
Number of retail branches | Branch | 26 | |
Number of banking divisions | Division | 3 |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator | ||||
Net income | $ 10,467 | $ 6,494 | $ 19,471 | $ 13,015 |
Denominator | ||||
Weighted-average number of common shares outstanding | 18,679,908 | 17,937,926 | 18,639,397 | 17,911,125 |
Incremental shares assumed for stock options and RSUs | 309,268 | 413,605 | 324,152 | 422,903 |
Weighted-average number of dilutive shares outstanding | 18,989,176 | 18,351,531 | 18,963,549 | 18,334,028 |
Basic earnings per common share | $ 0.56 | $ 0.36 | $ 1.04 | $ 0.73 |
Diluted earnings per common share | $ 0.55 | $ 0.35 | $ 1.03 | $ 0.71 |
Basis of Presentation - Impact
Basis of Presentation - Impact of Adopting New Revenue Standard on Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Non-interest income | ||||
Card processing | $ 799 | $ 692 | $ 1,522 | $ 1,287 |
Service charges on deposit accounts | $ 704 | $ 578 | 1,377 | 1,114 |
Balance without Adoption of ASC 606 | Topic 606 | ||||
Non-interest income | ||||
Card processing | 2,749 | 2,332 | ||
Service charges on deposit accounts | 1,377 | 1,114 | ||
Non-interest expense | ||||
Card processing | 1,227 | 1,045 | ||
Effect of Change | Topic 606 | ||||
Non-interest income | ||||
Card processing | (1,227) | (1,045) | ||
Non-interest expense | ||||
Card processing | $ (1,227) | $ (1,045) |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Estimated Fair Value of Investment Securities Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available-For-Sale, Amortized Cost | $ 243,290 | $ 265,860 |
Available-For-Sale, Gross Unrealized Gains | 134 | 841 |
Available-For-Sale, Gross Unrealized Losses, Less Than 12 Months | (2,780) | (1,173) |
Available-For-Sale, Gross Unrealized Losses, 12 Months or Longer | (3,945) | (2,472) |
Available-For-Sale, Fair Value | 236,699 | 263,056 |
U.S. Government Sponsored Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-For-Sale, Amortized Cost | 48,953 | 48,950 |
Available-For-Sale, Gross Unrealized Gains | 13 | |
Available-For-Sale, Gross Unrealized Losses, Less Than 12 Months | (327) | (6) |
Available-For-Sale, Gross Unrealized Losses, 12 Months or Longer | (590) | (453) |
Available-For-Sale, Fair Value | 48,036 | 48,504 |
Mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-For-Sale, Amortized Cost | 177,360 | 198,100 |
Available-For-Sale, Gross Unrealized Gains | 27 | 71 |
Available-For-Sale, Gross Unrealized Losses, Less Than 12 Months | (2,376) | (1,145) |
Available-For-Sale, Gross Unrealized Losses, 12 Months or Longer | (3,110) | (1,764) |
Available-For-Sale, Fair Value | 171,901 | 195,262 |
Municipal Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-For-Sale, Amortized Cost | 11,977 | 13,310 |
Available-For-Sale, Gross Unrealized Gains | 107 | 184 |
Available-For-Sale, Gross Unrealized Losses, Less Than 12 Months | (65) | (22) |
Available-For-Sale, Gross Unrealized Losses, 12 Months or Longer | (27) | (18) |
Available-For-Sale, Fair Value | 11,992 | 13,454 |
Corporate Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-For-Sale, Amortized Cost | 5,000 | 5,500 |
Available-For-Sale, Gross Unrealized Gains | 573 | |
Available-For-Sale, Gross Unrealized Losses, Less Than 12 Months | (12) | |
Available-For-Sale, Gross Unrealized Losses, 12 Months or Longer | (218) | (237) |
Available-For-Sale, Fair Value | $ 4,770 | $ 5,836 |
Investment Securities - Summa28
Investment Securities - Summary of Amortized Cost and Estimated Fair Value of Investment Securities Held-to-Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule Of Held To Maturity Securities [Line Items] | ||
Held-To-Maturity, Amortized Cost | $ 67,922 | $ 74,654 |
Held-To-Maturity, Fair Value | 67,059 | |
Municipal Securities | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held-To-Maturity, Amortized Cost | 67,922 | 74,654 |
Held-To-Maturity, Gross Unrealized Gains | 17 | 167 |
Held-To-Maturity, Gross Unrealized Losses, Less Than 12 Months | (543) | (293) |
Held-To-Maturity, Gross Unrealized Losses, 12 Months or Longer | (337) | (227) |
Held-To-Maturity, Fair Value | $ 67,059 | $ 74,301 |
Investment Securities - Summa29
Investment Securities - Summary of Gross Unrealized Losses and Fair Value for Securities Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Available-for-Sale and Held-to-Maturity Securities Continuous Unrealized Loss Position [Line Items] | ||
Available-for-Sale, Less Than 12 Months, Fair Value | $ 102,176 | $ 121,488 |
Available-for-Sale, 12 Months or More, Fair Value | 125,267 | 111,995 |
Available-for-Sale, Fair Value, Total | 227,443 | 233,483 |
Available-for-Sale, Less Than 12 Months, Unrealized Losses | (2,780) | (1,173) |
Available-for-Sale, 12 Months or More, Unrealized Losses | (3,945) | (2,472) |
Available-for-Sale, Unrealized Losses, Total | (6,725) | (3,645) |
Municipal Securities | ||
Available-for-Sale and Held-to-Maturity Securities Continuous Unrealized Loss Position [Line Items] | ||
Available-for-Sale, Less Than 12 Months, Fair Value | 4,783 | 3,523 |
Available-for-Sale, 12 Months or More, Fair Value | 810 | 830 |
Available-for-Sale, Fair Value, Total | 5,593 | 4,353 |
Available-for-Sale, Less Than 12 Months, Unrealized Losses | (65) | (22) |
Available-for-Sale, 12 Months or More, Unrealized Losses | (27) | (18) |
Available-for-Sale, Unrealized Losses, Total | (92) | (40) |
Held-to Maturity, Less Than 12 Months, Fair Value | 48,014 | 39,380 |
Held-to Maturity, 12 Months or More, Fair Value | 9,196 | 10,389 |
Held-to Maturity, Fair Value, Total | 57,210 | 49,769 |
Held-To-Maturity, Gross Unrealized Losses, Less Than 12 Months | (543) | (293) |
Held-To-Maturity, Gross Unrealized Losses, 12 Months or Longer | (337) | (227) |
Held-to Maturity, Unrealized Losses, Total | (880) | (520) |
Corporate Securities | ||
Available-for-Sale and Held-to-Maturity Securities Continuous Unrealized Loss Position [Line Items] | ||
Available-for-Sale, Less Than 12 Months, Fair Value | 1,987 | |
Available-for-Sale, 12 Months or More, Fair Value | 2,783 | 4,763 |
Available-for-Sale, Fair Value, Total | 4,770 | 4,763 |
Available-for-Sale, Less Than 12 Months, Unrealized Losses | (12) | |
Available-for-Sale, 12 Months or More, Unrealized Losses | (218) | (237) |
Available-for-Sale, Unrealized Losses, Total | (230) | (237) |
U.S. Government Sponsored Securities | ||
Available-for-Sale and Held-to-Maturity Securities Continuous Unrealized Loss Position [Line Items] | ||
Available-for-Sale, Less Than 12 Months, Fair Value | 14,628 | 5,087 |
Available-for-Sale, 12 Months or More, Fair Value | 33,407 | 33,543 |
Available-for-Sale, Fair Value, Total | 48,035 | 38,630 |
Available-for-Sale, Less Than 12 Months, Unrealized Losses | (327) | (6) |
Available-for-Sale, 12 Months or More, Unrealized Losses | (590) | (453) |
Available-for-Sale, Unrealized Losses, Total | (917) | (459) |
Mortgage-backed Securities | ||
Available-for-Sale and Held-to-Maturity Securities Continuous Unrealized Loss Position [Line Items] | ||
Available-for-Sale, Less Than 12 Months, Fair Value | 80,778 | 112,878 |
Available-for-Sale, 12 Months or More, Fair Value | 88,267 | 72,859 |
Available-for-Sale, Fair Value, Total | 169,045 | 185,737 |
Available-for-Sale, Less Than 12 Months, Unrealized Losses | (2,376) | (1,145) |
Available-for-Sale, 12 Months or More, Unrealized Losses | (3,110) | (1,764) |
Available-for-Sale, Unrealized Losses, Total | $ (5,486) | $ (2,909) |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Estimated Fair Value of Investment Securities that are Available-for-Sale and Held-to-Maturity by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Available-For-Sale Securities by Maturity, Amortized Cost | ||
Available-For-Sale, Securities maturing in one year or less, Amortized cost | $ 2,528 | |
Available-For-Sale, Securities maturing in After one year through five years, Amortized cost | 75,740 | |
Available-For-Sale, Securities maturing in After five years through ten years, Amortized cost | 52,157 | |
Available-For-Sale, Securities maturing in After ten years, Amortized cost | 112,865 | |
Available-For-Sale, Amortized Cost | 243,290 | $ 265,860 |
Available-For-Sale Securities by Maturity, Fair Value | ||
Available-For-Sale, Securities maturing in one year or less, Fair Value | 2,545 | |
Available-For-Sale, Securities maturing in After one year through five years, Fair Value | 74,398 | |
Available-For-Sale, Securities maturing in After five years through ten years, Fair Value | 50,523 | |
Available-For-Sale, Securities maturing in After ten years, Fair Value | 109,233 | |
Available-For-Sale, Fair Value | 236,699 | 263,056 |
Held-To-Maturity Securities by Maturity, Amortized Cost | ||
Held-To-Maturity, Securities maturing in one year or less, Amortized Cost | 8,388 | |
Held-To-Maturity, Securities maturing in After one year through five years, Amortized Cost | 38,735 | |
Held-To-Maturity, Securities maturing in After five years through ten years, Amortized Cost | 15,153 | |
Held-To-Maturity, Securities maturing in After ten years, Amortized Cost | 5,646 | |
Held-To-Maturity, Amortized Cost | 67,922 | $ 74,654 |
Held-To-Maturity Securities by Maturity, Fair Value | ||
Held-To-Maturity, Securities maturing in one year or less, Fair Value | 8,370 | |
Held-To-Maturity, Securities maturing in After one year through five years, Fair Value | 38,430 | |
Held-To-Maturity, Securities maturing in After five years through ten years, Fair Value | 14,725 | |
Held-To-Maturity, Securities maturing in After ten years, Fair Value | 5,534 | |
Held-To-Maturity, Fair Value | $ 67,059 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)Securities | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)Securities | Jun. 30, 2017USD ($) | Dec. 31, 2017Securities | |
Investments Debt And Equity Securities [Abstract] | |||||
Number of investment securities with fair value less than amortized cost | Securities | 327 | 327 | 304 | ||
Sales of available-for-sale securities | $ 500,000 | $ 0 | |||
Net gain in sales of available-for-sale securities | $ 333,000 | $ 1,000 | $ 335,000 | (10,000) | |
Available-for-sale securities in a nonaccrual status | Securities | 0 | 0 | 0 | ||
Sales of held-to-maturity securities | $ 0 | 204,000 | |||
Net loss in sales of held-to-maturity securities | $ (13,000) | ||||
Held-to-maturity securities in a nonaccrual status | Securities | 0 | 0 | 0 |
Loans and Allowance for Loan 32
Loans and Allowance for Loan Losses - Summary of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | $ 1,696,487 | $ 1,632,005 | ||||
Net deferred loan fees | (4,528) | (4,561) | ||||
Total loans held for investment | 1,691,959 | 1,627,444 | ||||
Allowance for loan losses | (22,308) | $ (20,731) | (18,303) | $ (17,271) | $ (16,644) | $ (16,715) |
Total loans held for investment, net | 1,669,651 | 1,609,141 | ||||
Real Estate Term | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 842,352 | 784,148 | ||||
Allowance for loan losses | (9,028) | (7,249) | (6,706) | (7,157) | (7,149) | (6,770) |
Construction and Land Development | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 373,845 | 369,590 | ||||
Allowance for loan losses | (6,789) | (6,808) | (6,309) | (5,077) | (4,683) | (5,449) |
Residential and Home Equity | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 153,084 | 158,591 | ||||
Allowance for loan losses | (659) | (642) | (815) | (503) | (529) | (617) |
Consumer and Other | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 16,978 | 25,591 | ||||
Allowance for loan losses | (52) | (70) | (159) | (45) | (61) | (161) |
Commercial Real Estate | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 1,216,197 | 1,153,738 | ||||
Allowance for loan losses | (15,817) | (13,015) | ||||
Commercial Real Estate | Real Estate Term | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 842,352 | 784,148 | ||||
Allowance for loan losses | (9,028) | (6,706) | ||||
Commercial Real Estate | Construction and Land Development | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 373,845 | 369,590 | ||||
Allowance for loan losses | (6,789) | (6,309) | ||||
Commercial and Industrial | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 310,228 | 294,085 | ||||
Allowance for loan losses | (5,780) | $ (5,962) | (4,314) | $ (4,489) | $ (4,222) | $ (3,718) |
Consumer | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 170,062 | 184,182 | ||||
Allowance for loan losses | (711) | (974) | ||||
Consumer | Residential and Home Equity | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 153,084 | 158,591 | ||||
Allowance for loan losses | (659) | (815) | ||||
Consumer | Consumer and Other | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 16,978 | 25,591 | ||||
Allowance for loan losses | $ (52) | $ (159) |
Loans and Allowance for Loan 33
Loans and Allowance for Loan Losses - Summary of Changes in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Balance at beginning of period | $ 20,731 | $ 16,644 | $ 18,303 | $ 16,715 |
Provision for loan losses | 1,475 | 900 | 3,525 | 1,100 |
Gross loan charge-offs | (204) | (512) | (462) | (1,073) |
Recoveries | 306 | 239 | 942 | 529 |
Net loan (charge-offs) / recoveries | 102 | (273) | 480 | (544) |
Balance at end of period | 22,308 | 17,271 | 22,308 | 17,271 |
Real Estate Term | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Balance at beginning of period | 7,249 | 7,149 | 6,706 | 6,770 |
Provision for loan losses | 1,779 | 181 | 2,310 | 556 |
Gross loan charge-offs | (350) | (350) | ||
Recoveries | 177 | 12 | 181 | |
Net loan (charge-offs) / recoveries | (173) | 12 | (169) | |
Balance at end of period | 9,028 | 7,157 | 9,028 | 7,157 |
Construction and Land Development | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Balance at beginning of period | 6,808 | 4,683 | 6,309 | 5,449 |
Provision for loan losses | (65) | 394 | 409 | (451) |
Recoveries | 46 | 71 | 79 | |
Net loan (charge-offs) / recoveries | 46 | 71 | 79 | |
Balance at end of period | 6,789 | 5,077 | 6,789 | 5,077 |
Residential and Home Equity | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Balance at beginning of period | 642 | 529 | 815 | 617 |
Provision for loan losses | (37) | (28) | (237) | 84 |
Gross loan charge-offs | (338) | |||
Recoveries | 54 | 2 | 81 | 140 |
Net loan (charge-offs) / recoveries | 54 | 2 | 81 | (198) |
Balance at end of period | 659 | 503 | 659 | 503 |
Consumer and Other | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Balance at beginning of period | 70 | 61 | 159 | 161 |
Provision for loan losses | 56 | 11 | (24) | (55) |
Gross loan charge-offs | (107) | (48) | (172) | (113) |
Recoveries | 33 | 21 | 89 | 52 |
Net loan (charge-offs) / recoveries | (74) | (27) | (83) | (61) |
Balance at end of period | 52 | 45 | 52 | 45 |
Commercial and Industrial | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Balance at beginning of period | 5,962 | 4,222 | 4,314 | 3,718 |
Provision for loan losses | (258) | 342 | 1,067 | 966 |
Gross loan charge-offs | (97) | (114) | (290) | (272) |
Recoveries | 173 | 39 | 689 | 77 |
Net loan (charge-offs) / recoveries | 76 | (75) | 399 | (195) |
Balance at end of period | $ 5,780 | $ 4,489 | $ 5,780 | $ 4,489 |
Loans and Allowance for Loan 34
Loans and Allowance for Loan Losses - Summary of Non Accrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-accrual loans, not troubled debt restructured | $ 4,206 | $ 223 |
Troubled debt restructured loans, non-accrual | 1,751 | |
Total non-accrual loans | 5,957 | 223 |
Real Estate Term | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-accrual loans, not troubled debt restructured | 1,580 | |
Troubled debt restructured loans, non-accrual | 1,556 | |
Construction and Land Development | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-accrual loans, not troubled debt restructured | 320 | |
Commercial and Industrial Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-accrual loans, not troubled debt restructured | 1,539 | $ 223 |
Troubled debt restructured loans, non-accrual | 195 | |
Residential and Home Equity | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-accrual loans, not troubled debt restructured | 728 | |
Consumer and Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-accrual loans, not troubled debt restructured | $ 39 |
Loans and Allowance for Loan 35
Loans and Allowance for Loan Losses - Summary of Troubled Debt Restructured Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Loans And Leases Receivable Disclosure [Abstract] | ||
Accruing troubled debt restructured loans | $ 2,495 | $ 3,307 |
Non-accrual troubled debt restructured loans | 1,751 | |
Total troubled debt restructured loans | $ 4,246 | $ 3,307 |
Loans and Allowance for Loan 36
Loans and Allowance for Loan Losses - Additional Information (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
TDRs Loans | $ 1,800,000 | $ 0 | |
Troubled debt restructuring payment deafult period | 12 months | ||
TDRs payment default | $ 0 | $ 0 | |
Outstanding contractual unpaid principal balance, excluding acquisiiton accounting adjustments | 10,700,000 | $ 12,400,000 | |
Carrying balance of PCI loans | 7,700,000 | 8,700,000 | |
Non-accretable difference between the contractually required payments and cash flows expected to be collected | 3,000,000 | 3,700,000 | |
Available lines of credit for loans and credit cards to affiliates | 1,300,000 | 330,000 | |
Deposits from affiliates | 8,200,000 | 7,100,000 | |
Affiliates | |||
Related Party Transaction [Line Items] | |||
Outstanding loans with affiliates | $ 3,800,000 | $ 3,400,000 |
Loans and Allowance for Loan 37
Loans and Allowance for Loan Losses - Summary of Current and Past Due Loans Held For Investment (Accruing And Non-Accruing) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | $ 1,670,792 | $ 1,607,064 |
30-89 Days Past Due | 11,658 | 16,043 |
90+ Days Past Due | 336 | 1 |
Non-accrual | 5,957 | 223 |
Total Past-Due | 17,951 | 16,267 |
Purchased Credit Impaired | 7,744 | 8,674 |
Total loans | 1,696,487 | 1,632,005 |
Real Estate Term | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Purchased Credit Impaired | 366 | 1,010 |
Total loans | 842,352 | 784,148 |
Construction and Land Development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Purchased Credit Impaired | 418 | 650 |
Total loans | 373,845 | 369,590 |
Residential and Home Equity | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 153,084 | 158,591 |
Consumer and Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 16,978 | 25,591 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 1,203,378 | 1,142,740 |
30-89 Days Past Due | 8,579 | 9,338 |
Non-accrual | 3,456 | |
Total Past-Due | 12,035 | 9,338 |
Purchased Credit Impaired | 784 | 1,660 |
Total loans | 1,216,197 | 1,153,738 |
Commercial Real Estate | Real Estate Term | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 836,191 | 780,895 |
30-89 Days Past Due | 2,659 | 2,243 |
Non-accrual | 3,136 | |
Total Past-Due | 5,795 | 2,243 |
Purchased Credit Impaired | 366 | 1,010 |
Total loans | 842,352 | 784,148 |
Commercial Real Estate | Construction and Land Development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 367,187 | 361,845 |
30-89 Days Past Due | 5,920 | 7,095 |
Non-accrual | 320 | |
Total Past-Due | 6,240 | 7,095 |
Purchased Credit Impaired | 418 | 650 |
Total loans | 373,845 | 369,590 |
Commercial and Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 299,280 | 282,638 |
30-89 Days Past Due | 1,932 | 4,210 |
90+ Days Past Due | 322 | |
Non-accrual | 1,734 | 223 |
Total Past-Due | 3,988 | 4,433 |
Purchased Credit Impaired | 6,960 | 7,014 |
Total loans | 310,228 | 294,085 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 168,134 | 181,686 |
30-89 Days Past Due | 1,147 | 2,495 |
90+ Days Past Due | 14 | 1 |
Non-accrual | 767 | |
Total Past-Due | 1,928 | 2,496 |
Total loans | 170,062 | 184,182 |
Consumer | Residential and Home Equity | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 151,450 | 156,379 |
30-89 Days Past Due | 906 | 2,212 |
Non-accrual | 728 | |
Total Past-Due | 1,634 | 2,212 |
Total loans | 153,084 | 158,591 |
Consumer | Consumer and Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 16,684 | 25,307 |
30-89 Days Past Due | 241 | 283 |
90+ Days Past Due | 14 | 1 |
Non-accrual | 39 | |
Total Past-Due | 294 | 284 |
Total loans | $ 16,978 | $ 25,591 |
Loans and Allowance for Loan 38
Loans and Allowance for Loan Losses - Summary of Outstanding Loan Balances (Accruing and Non - Accruing) Categorized by Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | $ 1,696,487 | $ 1,632,005 | ||||
Total Allowance | 22,308 | $ 20,731 | 18,303 | $ 17,271 | $ 16,644 | $ 16,715 |
Real Estate Term | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 842,352 | 784,148 | ||||
Total Allowance | 9,028 | 7,249 | 6,706 | 7,157 | 7,149 | 6,770 |
Construction and Land Development | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 373,845 | 369,590 | ||||
Total Allowance | 6,789 | 6,808 | 6,309 | 5,077 | 4,683 | 5,449 |
Residential and Home Equity | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 153,084 | 158,591 | ||||
Total Allowance | 659 | 642 | 815 | 503 | 529 | 617 |
Consumer and Other | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 16,978 | 25,591 | ||||
Total Allowance | 52 | 70 | 159 | 45 | 61 | 161 |
Commercial Real Estate | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 1,216,197 | 1,153,738 | ||||
Total Allowance | 15,817 | 13,015 | ||||
Commercial Real Estate | Real Estate Term | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 842,352 | 784,148 | ||||
Total Allowance | 9,028 | 6,706 | ||||
Commercial Real Estate | Construction and Land Development | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 373,845 | 369,590 | ||||
Total Allowance | 6,789 | 6,309 | ||||
Commercial and Industrial | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 310,228 | 294,085 | ||||
Total Allowance | 5,780 | $ 5,962 | 4,314 | $ 4,489 | $ 4,222 | $ 3,718 |
Consumer | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 170,062 | 184,182 | ||||
Total Allowance | 711 | 974 | ||||
Consumer | Residential and Home Equity | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 153,084 | 158,591 | ||||
Total Allowance | 659 | 815 | ||||
Consumer | Consumer and Other | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 16,978 | 25,591 | ||||
Total Allowance | 52 | 159 | ||||
Pass | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 1,636,776 | 1,570,090 | ||||
Pass | Commercial Real Estate | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 1,184,075 | 1,117,341 | ||||
Pass | Commercial Real Estate | Real Estate Term | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 813,802 | 758,575 | ||||
Pass | Commercial Real Estate | Construction and Land Development | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 370,273 | 358,766 | ||||
Pass | Commercial and Industrial | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 287,284 | 274,535 | ||||
Pass | Consumer | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 165,417 | 178,214 | ||||
Pass | Consumer | Residential and Home Equity | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 148,554 | 152,753 | ||||
Pass | Consumer | Consumer and Other | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 16,863 | 25,461 | ||||
Special Mention | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 27,265 | 37,704 | ||||
Special Mention | Commercial Real Estate | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 20,015 | 20,282 | ||||
Special Mention | Commercial Real Estate | Real Estate Term | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 18,401 | 13,055 | ||||
Special Mention | Commercial Real Estate | Construction and Land Development | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 1,614 | 7,227 | ||||
Special Mention | Commercial and Industrial | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 5,707 | 13,464 | ||||
Special Mention | Consumer | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 1,543 | 3,958 | ||||
Special Mention | Consumer | Residential and Home Equity | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 1,497 | 3,913 | ||||
Special Mention | Consumer | Consumer and Other | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 46 | 45 | ||||
Substandard | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 32,434 | 24,198 | ||||
Substandard | Commercial Real Estate | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 12,107 | 16,115 | ||||
Substandard | Commercial Real Estate | Real Estate Term | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 10,149 | 12,518 | ||||
Substandard | Commercial Real Estate | Construction and Land Development | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 1,958 | 3,597 | ||||
Substandard | Commercial and Industrial | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 17,237 | 6,086 | ||||
Substandard | Consumer | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 3,090 | 1,997 | ||||
Substandard | Consumer | Residential and Home Equity | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 3,033 | 1,925 | ||||
Substandard | Consumer | Consumer and Other | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 57 | 72 | ||||
Doubtful | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 12 | 13 | ||||
Doubtful | Consumer | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 12 | 13 | ||||
Doubtful | Consumer | Consumer and Other | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | $ 12 | $ 13 |
Loans and Allowance for Loan 39
Loans and Allowance for Loan Losses - Summary of ALLL And Outstanding Loan Balances According To The Company's Impairment Method (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for loan losses, Individually evaluated for impairment | $ 1,252 | $ 145 | ||||
Allowance for loan losses, Collectively evaluated for impairment | 20,704 | 18,158 | ||||
Allowance for loan losses, Purchased credit-impaired loans | 352 | |||||
Allowance for loan losses, Total | 22,308 | $ 20,731 | 18,303 | $ 17,271 | $ 16,644 | $ 16,715 |
Outstanding loan balances, Individually evaluated for impairment | 22,390 | 11,953 | ||||
Outstanding loan balances, Collectively evaluated for impairment | 1,666,353 | 1,611,378 | ||||
Outstanding loan balances, Purchased credit-impaired loans | 7,744 | 8,674 | ||||
Total loans | 1,696,487 | 1,632,005 | ||||
Real Estate Term | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for loan losses, Individually evaluated for impairment | 372 | |||||
Allowance for loan losses, Collectively evaluated for impairment | 8,656 | 6,706 | ||||
Allowance for loan losses, Total | 9,028 | 7,249 | 6,706 | 7,157 | 7,149 | 6,770 |
Outstanding loan balances, Individually evaluated for impairment | 8,750 | 6,191 | ||||
Outstanding loan balances, Collectively evaluated for impairment | 833,236 | 776,947 | ||||
Outstanding loan balances, Purchased credit-impaired loans | 366 | 1,010 | ||||
Total loans | 842,352 | 784,148 | ||||
Construction and Land Development | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for loan losses, Individually evaluated for impairment | 3 | |||||
Allowance for loan losses, Collectively evaluated for impairment | 6,789 | 6,306 | ||||
Allowance for loan losses, Total | 6,789 | 6,808 | 6,309 | 5,077 | 4,683 | 5,449 |
Outstanding loan balances, Individually evaluated for impairment | 1,549 | 2,568 | ||||
Outstanding loan balances, Collectively evaluated for impairment | 371,878 | 366,372 | ||||
Outstanding loan balances, Purchased credit-impaired loans | 418 | 650 | ||||
Total loans | 373,845 | 369,590 | ||||
Residential and Home Equity | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for loan losses, Individually evaluated for impairment | 3 | 101 | ||||
Allowance for loan losses, Collectively evaluated for impairment | 656 | 714 | ||||
Allowance for loan losses, Total | 659 | 642 | 815 | 503 | 529 | 617 |
Outstanding loan balances, Individually evaluated for impairment | 2,638 | 1,150 | ||||
Outstanding loan balances, Collectively evaluated for impairment | 150,446 | 157,441 | ||||
Total loans | 153,084 | 158,591 | ||||
Consumer and Other | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for loan losses, Collectively evaluated for impairment | 52 | 159 | ||||
Allowance for loan losses, Total | 52 | 70 | 159 | 45 | 61 | 161 |
Outstanding loan balances, Collectively evaluated for impairment | 16,978 | 25,591 | ||||
Total loans | 16,978 | 25,591 | ||||
Commercial and Industrial | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for loan losses, Individually evaluated for impairment | 877 | 41 | ||||
Allowance for loan losses, Collectively evaluated for impairment | 4,551 | 4,273 | ||||
Allowance for loan losses, Purchased credit-impaired loans | 352 | |||||
Allowance for loan losses, Total | 5,780 | $ 5,962 | 4,314 | $ 4,489 | $ 4,222 | $ 3,718 |
Outstanding loan balances, Individually evaluated for impairment | 9,453 | 2,044 | ||||
Outstanding loan balances, Collectively evaluated for impairment | 293,815 | 285,027 | ||||
Outstanding loan balances, Purchased credit-impaired loans | 6,960 | 7,014 | ||||
Total loans | $ 310,228 | $ 294,085 |
Loans and Allowance for Loan 40
Loans and Allowance for Loan Losses - Summary of Information On Impaired Loans, Excluding Purchased Credit Impaired ("PCI") Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | $ 27,632 | $ 17,929 |
Recorded investment With No Allowance | 14,826 | 10,068 |
Recorded investment With Allowance | 7,564 | 1,885 |
Total Recorded Investment | 22,390 | 11,953 |
Related Allowance | 1,252 | 145 |
Commercial Real Estate | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | 14,107 | 10,575 |
Recorded investment With No Allowance | 9,244 | 8,563 |
Recorded investment With Allowance | 1,055 | 196 |
Total Recorded Investment | 10,299 | 8,759 |
Related Allowance | 372 | 3 |
Commercial Real Estate | Real Estate Term | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | 11,916 | 7,090 |
Recorded investment With No Allowance | 7,695 | 6,191 |
Recorded investment With Allowance | 1,055 | |
Total Recorded Investment | 8,750 | 6,191 |
Related Allowance | 372 | |
Commercial Real Estate | Construction and Land Development | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | 2,191 | 3,485 |
Recorded investment With No Allowance | 1,549 | 2,372 |
Recorded investment With Allowance | 196 | |
Total Recorded Investment | 1,549 | 2,568 |
Related Allowance | 3 | |
Commercial and Industrial | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | 10,887 | 6,204 |
Recorded investment With No Allowance | 3,208 | 1,276 |
Recorded investment With Allowance | 6,245 | 768 |
Total Recorded Investment | 9,453 | 2,044 |
Related Allowance | 877 | 41 |
Consumer | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | 2,638 | 1,150 |
Recorded investment With No Allowance | 2,374 | 229 |
Recorded investment With Allowance | 264 | 921 |
Total Recorded Investment | 2,638 | 1,150 |
Related Allowance | 3 | 101 |
Consumer | Residential and Home Equity | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | 2,638 | 1,150 |
Recorded investment With No Allowance | 2,374 | 229 |
Recorded investment With Allowance | 264 | 921 |
Total Recorded Investment | 2,638 | 1,150 |
Related Allowance | $ 3 | $ 101 |
Loans and Allowance for Loan 41
Loans and Allowance for Loan Losses - Summary of Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | $ 18,253 | $ 12,736 | $ 17,172 | $ 13,396 |
Interest Income Recognition | 187 | 84 | 391 | 212 |
Commercial Real Estate | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | 8,345 | 7,606 | 9,529 | 7,976 |
Interest Income Recognition | 78 | 38 | 220 | 99 |
Commercial Real Estate | Real Estate Term | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | 6,312 | 4,734 | 7,471 | 5,316 |
Interest Income Recognition | 43 | 6 | 146 | 36 |
Commercial Real Estate | Construction and Land Development | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | 2,033 | 2,872 | 2,058 | 2,660 |
Interest Income Recognition | 35 | 32 | 74 | 63 |
Commercial and Industrial | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | 7,822 | 4,280 | 5,749 | 4,365 |
Interest Income Recognition | 87 | 36 | 128 | 90 |
Consumer | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | 2,086 | 850 | 1,894 | 1,055 |
Interest Income Recognition | 22 | 10 | 43 | 23 |
Consumer | Residential and Home Equity | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | 2,086 | 850 | 1,894 | 1,055 |
Interest Income Recognition | $ 22 | $ 10 | $ 43 | $ 23 |
Loans and Allowance for Loan 42
Loans and Allowance for Loan Losses - Changes in Accretable Yield for PCI Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance, beginning of period | $ 8,536 | $ 573 |
Accretion to interest income | (1,943) | (18) |
Reclassification from non-accretable discount | 189 | 9 |
Balance, end of period | $ 6,782 | $ 564 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Contractual Amounts of Off-balance Sheet Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Commitments to Extend Credit | ||
Commitments And Contingencies [Line Items] | ||
Off-balance sheet financial instrument, contractual amount | $ 587,699 | $ 637,029 |
Stand-by Letters of Credit and Bond Commitments | ||
Commitments And Contingencies [Line Items] | ||
Off-balance sheet financial instrument, contractual amount | 28,892 | 27,943 |
Unused Credit Card Lines, All Unsecured | ||
Commitments And Contingencies [Line Items] | ||
Off-balance sheet financial instrument, contractual amount | $ 22,045 | $ 24,949 |
Commitments and Contingencies44
Commitments and Contingencies - Summary of Contractual Amounts of Off-balance Sheet Financial Instruments (Parenthetical) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Unsecured Commitments Included in Commitments to Extend Credit | ||
Commitments And Contingencies [Line Items] | ||
Off-balance sheet financial instrument, contractual amount | $ 16,481 | $ 13,625 |
Unsecured Commitments Included in Stand-by Letters of Credit and Bond Commitments | ||
Commitments And Contingencies [Line Items] | ||
Off-balance sheet financial instrument, contractual amount | $ 455 | $ 440 |
Fair Value - Summary of Estimat
Fair Value - Summary of Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financial Assets: | ||
Securities - available-for-sale | $ 236,699 | $ 263,056 |
Securities - held-to-maturity | 67,059 | |
Carrying Value | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 52,322 | 51,027 |
Bank-owned life insurance | 26,120 | 23,566 |
Carrying Value | Level 2 | ||
Financial Assets: | ||
Securities - available-for-sale | 236,699 | 263,056 |
Securities - held-to-maturity | 67,922 | 74,654 |
Non-marketable securities | 6,151 | 3,706 |
Loans held for sale | 11,058 | 10,871 |
Financial Liabilities: | ||
Total deposits | 1,781,940 | 1,814,632 |
Short-term borrowings | 90,000 | 40,000 |
Carrying Value | Level 3 | ||
Financial Assets: | ||
Loans held for investment | 1,669,651 | 1,609,141 |
Estimated Fair Value | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 52,322 | 51,027 |
Bank-owned life insurance | 26,120 | 23,566 |
Estimated Fair Value | Level 2 | ||
Financial Assets: | ||
Securities - available-for-sale | 236,699 | 263,056 |
Securities - held-to-maturity | 67,059 | 74,301 |
Non-marketable securities | 6,151 | 3,706 |
Loans held for sale | 11,058 | 10,871 |
Financial Liabilities: | ||
Total deposits | 1,556,471 | 1,596,966 |
Short-term borrowings | 90,000 | 40,000 |
Estimated Fair Value | Level 3 | ||
Financial Assets: | ||
Loans held for investment | $ 1,664,262 | $ 1,607,388 |
Fair Value - Summary of Asset M
Fair Value - Summary of Asset Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Valued on a Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 236,699 | $ 263,056 |
Fair Valued on a Non-Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | 6,312 | 1,740 |
Level 2 | Fair Valued on a Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 236,699 | 263,056 |
Level 3 | Fair Valued on a Non-Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 6,312 | $ 1,740 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Taxes [Line Items] | ||||
Income tax expense | $ 3,279 | $ 3,584 | $ 5,839 | $ 6,324 |
Effective tax rate | 23.90% | 35.60% | ||
Federal statutory rate | 21.00% | |||
Utah | ||||
Income Taxes [Line Items] | ||||
State corporation tax rate | 4.95% |
Regulatory Capital Matters - Ad
Regulatory Capital Matters - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Banking And Thrift [Abstract] | ||
Consolidated Tier 1 Leverage ratio | 11.48% | 11.46% |
Minimum reserve balances on average deposits | $ 17 | $ 19 |
Incentive Share-Based Plan an49
Incentive Share-Based Plan and Other Employee Benefits - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options issued to purchase common shares | 26,400 | ||
Exercise price of common shares | $ 31.42 | ||
Fair value as of date of grant per share | $ 3.3944 | ||
Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expense | $ 370 | $ 218 | |
Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Restricted stock units granted | 27,788 | ||
Fair value of restricted stock units | $ 30.30 | ||
Share-Based Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Maximum number of shares available for issuance under the plan | 800,000 | ||
Maximum | Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Maximum | Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Maximum | Share-Based Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based awards granted term | 10 years | ||
Minimum [Member] | Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Minimum [Member] | Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 1 year |
Acquisition Related Measureme50
Acquisition Related Measurement Period Adjustments - Additional Information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Business Combinations [Abstract] | |
Acquisition related measurement period adjustments to goodwill | $ 335 |