Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | RIVER FINANCIAL CORPORATION | ||
Entity Central Index Key | 0001641601 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 5,701,139 | ||
Entity Public Float | $ 0 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 13,834 | $ 14,669 |
Interest-bearing deposits in banks | 32,253 | 889 |
Federal funds sold | 1,420 | |
Cash and cash equivalents | 47,507 | 15,558 |
Certificates of deposit in banks | 6,166 | 5,214 |
Securities available-for-sale | 228,630 | 193,289 |
Loans held for sale | 2,619 | 3,858 |
Loans, net of unearned income | 711,262 | 547,121 |
Less allowance for loan losses | (6,577) | (4,881) |
Net loans | 704,685 | 542,240 |
Premises and equipment, net | 26,827 | 21,809 |
Accrued interest receivable | 3,260 | 2,499 |
Bank owned life insurance | 20,563 | 19,991 |
Foreclosed assets | 496 | 1,546 |
Deferred income taxes | 1,181 | 1,977 |
Core deposit intangible | 5,583 | 1,560 |
Goodwill | 18,293 | 10,050 |
Other assets | 4,654 | 3,701 |
Total assets | 1,070,464 | 823,292 |
Liabilities and Stockholders' Equity | ||
Noninterest-bearing deposits | 241,274 | 185,171 |
Interest-bearing deposits | 657,433 | 514,690 |
Total deposits | 898,707 | 699,861 |
Securities sold under agreements to repurchase | 7,975 | 13,865 |
Federal Home Loan Bank advances | 20,000 | 10,000 |
Federal funds purchased | 0 | 1,153 |
Note payable | 26,963 | 5,357 |
Accrued interest payable and other liabilities | 5,343 | 3,107 |
Total liabilities | 958,988 | 733,343 |
Common stock related to 401(k) Employee Stock Ownership Plan | 1,343 | 950 |
Stockholders' Equity | ||
Common stock ($1 par value; 10,000,000 shares authorized; 5,692,123 and 5,113,951 shares issued; 5,687,914 and 5,098,068 shares outstanding, respectively) | 5,692 | 5,114 |
Additional paid in capital | 79,604 | 64,935 |
Retained earnings | 29,460 | 22,388 |
Accumulated other comprehensive loss | (3,167) | (2,116) |
Treasury stock at cost (4,209 and 15,883 shares, respectively) | (113) | (372) |
Common stock related to 401(k) Employee Stock Ownership Plan | (1,343) | (950) |
Total stockholders' equity | 110,133 | 88,999 |
Total equity | 111,476 | 89,949 |
Total liabilities and stockholders' equity | $ 1,070,464 | $ 823,292 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 5,692,123 | 5,113,951 |
Common stock, shares outstanding | 5,687,914 | 5,098,068 |
Treasury stock, shares | 4,209 | 15,883 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income: | ||
Loans, including fees | $ 32,812 | $ 27,891 |
Taxable securities | 2,734 | 2,938 |
Nontaxable securities | 853 | 1,130 |
Federal funds sold | 11 | |
Other interest income | 275 | 211 |
Total interest income | 36,685 | 32,170 |
Interest expense: | ||
Deposits | 3,650 | 2,229 |
Securities sold under agreements to repurchase | 38 | 28 |
Federal Home Loan Bank advances | 490 | 101 |
Federal funds purchased | 18 | 13 |
Note payable | 485 | 249 |
Total interest expense | 4,681 | 2,620 |
Net interest income | 32,004 | 29,550 |
Provision for loan losses | 1,960 | 1,740 |
Net interest income after provision for loan losses | 30,044 | 27,810 |
Noninterest income: | ||
Service charges and fees | 3,465 | 2,949 |
Investment brokerage revenue | 136 | 58 |
Mortgage operations | 2,293 | 1,895 |
Bank owned life insurance income | 569 | 1,086 |
Net gain (loss) on sale of investment securities | (48) | 5 |
Other noninterest income | 426 | 316 |
Total noninterest income | 6,841 | 6,309 |
Noninterest expense: | ||
Salaries and employee benefits | 14,016 | 12,097 |
Occupancy expenses | 1,534 | 1,399 |
Equipment rentals, depreciation, and maintenance | 916 | 841 |
Telephone and communications | 274 | 261 |
Advertising and business development | 658 | 625 |
Data processing | 3,527 | 1,689 |
Foreclosed assets, net | 200 | 163 |
Federal deposit insurance and other regulatory assessments | 342 | 333 |
Legal and other professional services | 798 | 505 |
Other operating expense | 3,731 | 3,392 |
Total noninterest expense | 25,996 | 21,305 |
Income before income taxes | 10,889 | 12,814 |
Provision for income taxes | 2,383 | 4,519 |
Net income | $ 8,506 | $ 8,295 |
Basic net earnings per common share | $ 1.63 | $ 1.63 |
Diluted net earnings per common share | $ 1.60 | $ 1.60 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 8,506 | $ 8,295 |
Investment securities available-for-sale: | ||
Net unrealized gains (losses) | (1,452) | 592 |
Income tax effect | 365 | (219) |
Reclassification adjustments for net (gains) losses realized in net income | 48 | (5) |
Income tax effect | (12) | 2 |
Other comprehensive income (loss) | (1,051) | 370 |
Comprehensive income | $ 7,455 | $ 8,665 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Common Stock Related to ESOP |
Balance at Dec. 31, 2016 | $ 81,827 | $ 5,091 | $ 64,656 | $ 15,032 | $ (2,153) | $ (176) | $ (623) |
Net income | 8,295 | 8,295 | |||||
Other comprehensive income (loss) | 370 | 370 | |||||
Exercise of stock options and warrants | 263 | 19 | 136 | 108 | |||
Issuance of common stock | 85 | 4 | 81 | ||||
Purchase of treasury shares | (579) | (579) | |||||
Sale of treasury shares | 281 | 6 | 275 | ||||
Remeasurement of deferred income taxes reclassified to retained earnings | 333 | 333 | (333) | ||||
Dividends declared | (1,272) | (1,272) | |||||
Stock compensation expense | 56 | 56 | |||||
Change for KSOP related shares | (327) | (327) | |||||
Balance at Dec. 31, 2017 | 88,999 | 5,114 | 64,935 | 22,388 | (2,116) | (372) | (950) |
Net income | 8,506 | 8,506 | |||||
Other comprehensive income (loss) | (1,051) | (1,051) | |||||
Shares exchanged with Peoples Southern Bank shareholders | 6,005 | 223 | 5,782 | ||||
Exercise of stock options and warrants | 317 | 28 | 289 | ||||
Issuance of common stock | 8,832 | 327 | 8,505 | ||||
Purchase of treasury shares | (146) | (146) | |||||
Sale of treasury shares | 430 | 25 | 405 | ||||
Dividends declared | (1,434) | (1,434) | |||||
Stock compensation expense | 68 | 68 | |||||
Change for KSOP related shares | (393) | (393) | |||||
Balance at Dec. 31, 2018 | $ 110,133 | $ 5,692 | $ 79,604 | $ 29,460 | $ (3,167) | $ (113) | $ (1,343) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Stockholders Equity [Abstract] | ||
Shares exchanged with Peoples Southern Bank shareholders, Shares | 222,360 | |
Exercise of stock options and warrants, shares | 28,450 | 25,096 |
Issuance of common stock, Shares | 327,362 | 4,204 |
Purchase of treasury stock | 5,544 | 25,056 |
Sale of treasury stock | 17,218 | 12,967 |
Dividends declared, per share | $ 0.27 | $ 0.25 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows From (Used For) Operating Activities: | ||
Net income | $ 8,506 | $ 8,295 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 1,960 | 1,740 |
Provision for losses on foreclosed assets | 120 | 145 |
Amortization of securities available-for-sale | 1,676 | 2,325 |
Accretion of securities available-for-sale | (143) | (32) |
Accretion of acquired loans | (1,241) | (2,334) |
Realized net (gain) loss on securities available-for-sale | 48 | (5) |
Amortization of deferred loan fees | (1,068) | (1,054) |
Amortization of core deposit intangible | 627 | 559 |
Stock compensation expense | 68 | 56 |
Bank owned life insurance income | (569) | (1,086) |
Depreciation and amortization of premises and equipment | 1,055 | 946 |
(Gain) loss on sale of foreclosed assets | 20 | (72) |
Deferred income tax expense | (684) | 1,159 |
(Increase) decrease in operating assets and (decrease) increase in operating liabilities: | ||
Loans held-for-sale | 1,239 | 3,876 |
Accrued interest receivable | 120 | (123) |
Other assets | 60 | 52 |
Accrued interest payable and other liabilities | 749 | (487) |
Net cash from operating activities | 12,543 | 13,960 |
Cash Flows From (Used For) Investing Activities: | ||
Maturities of certificate of deposit | 1,494 | 498 |
Sales of certificate of deposit | 1,940 | |
Purchases of certificate of deposit | (984) | (249) |
Sales | 59,907 | 13,251 |
Maturities, payments, calls | 30,419 | 28,225 |
Purchases | (27,697) | (53,105) |
Loan principal originations, net | (107,195) | (30,816) |
Net cash received in acquisition | 22,227 | |
Proceeds from sale of foreclosed assets | 1,228 | 2,190 |
Payment to PSB shareholders | (24,497) | |
Purchases of premises and equipment | (767) | (1,285) |
Sale (purchases) of restricted equity securities, net | (682) | (509) |
Proceeds from bank owned life insurance | 1,260 | |
Purchase of bank owned life insurance | (5,000) | |
Net cash used for investing activities | (44,607) | (45,540) |
Cash Flows From (Used For) Financing Activities: | ||
Net increase (decrease) in deposits | 31,451 | (5,052) |
Net increase (decrease) in securities sold under agreements to repurchase | (5,890) | 831 |
Proceeds from Federal Home Loan Bank advances | 110,000 | 50,000 |
Repayment of Federal Home Loan Bank advances | (100,000) | (40,000) |
Proceeds from issuance of note payable | 27,000 | |
Repayment of note payable | (5,394) | (1,071) |
Federal funds purchased | (1,153) | 1,153 |
Proceeds from issuance of common stock | 8,832 | 85 |
Proceeds from exercise of common stock options and warrants | 317 | 263 |
Purchase of treasury stock | (146) | (579) |
Sale of treasury stock | 430 | 281 |
Cash dividends | (1,434) | (1,272) |
Net cash from financing activities | 64,013 | 4,639 |
Net Change In Cash And Cash Equivalents | 31,949 | (26,941) |
Cash and Cash Equivalents At Beginning Of Period | 15,558 | 42,499 |
Cash and Cash Equivalents At End Of Period | 47,507 | 15,558 |
Cash Payments For: | ||
Interest paid to depositors | 3,596 | 2,243 |
Interest paid on borrowings | 727 | 372 |
Income taxes | 3,058 | 3,830 |
Non-cash investing and financing activities: | ||
Assets acquired in merger | 199,380 | |
Liabilities assumed in merger | 168,880 | |
Transfer of loans to foreclosed assets | $ 318 | $ 2,658 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of River Financial Corporation (the “Company”) and its wholly-owned banking subsidiary, River Bank and Trust (“RB&T”, the “Bank”). All material intercompany accounts and transactions have been eliminated in consolidation. The Bank provides a full range of commercial and consumer banking services in Alabama, including metropolitan Montgomery, Lee County, Autauga County, Elmore County, Tallapoosa County, Chilton County, Mobile County, Baldwin County, and Etowah County in Alabama. RB&T is primarily regulated by the Federal Deposit Insurance Corporation (“FDIC”) and the Alabama Banking Department. The Bank undergoes periodic examinations by these regulatory agencies. The Company is regulated by the Federal Reserve Bank (“FRB”) and is also subject to periodic examinations. The accounting principles followed by the Company, and the method of applying these principles, conform with accounting principles generally accepted in the United States of America (“GAAP”) and with general practices within the banking industry. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts in the consolidated financial statements. Actual results could differ significantly from those estimates. Material estimates common to the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for loan losses, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, and valuation allowances associated with the realization of deferred tax assets, which are based on future taxable income. Cash and Cash Equivalents Cash equivalents include amounts due from banks, interest-bearing deposits with the Federal Reserve Bank of Atlanta (“FRB”), Federal Home Loan Bank (“FHLB”), correspondent banks, and federal funds sold. Generally, federal funds are sold for one-day periods. The Company is required to maintain average reserve balances with the FRB or in cash. At December 31, 2018 and 2017, the Company’s reserve requirements were approximately $2.39 million and $2.43 million, respectively. Investment Securities The Company classifies its securities in one of three categories: trading, available-for-sale, or held-to-maturity. Trading securities are bought and held principally for the purpose of selling them in the near term. Held-to-maturity securities are those securities that the Company has the ability and intent to hold until maturity. All securities not included in trading or held-to- maturity are classified as available-for-sale. At December 31, 2018 and 2017, all securities are classified as available-for-sale. Available-for-sale securities are recorded at fair value. Held-to-maturity securities are recorded at cost, adjusted for the amortization or accretion of premiums or discounts. Unrealized holding gains and losses, net of the related tax effect, on securities available-for-sale are excluded from earnings and are reported as a separate component of shareholders’ equity until realized. Transfers of securities between categories are recorded at fair value at the date of transfer. Management evaluates investment securities for other-than-temporary impairment on a quarterly basis. A decline in the market value of any investment below cost that is deemed other- than-temporary is charged to earnings for the decline in value deemed to be credit related and a new cost basis in the security is established. The decline in value attributed to non-credit related factors is recognized in other comprehensive income (loss). Premiums and discounts are amortized or accreted over the life of the related securities as adjustments to the yield. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. Other Investments Other investments include FRB stock, FHLB stock and other investments that do not have a readily determinable market value. These investments are carried at cost, which approximates fair value. Loans and Allowance for Loan Losses Loans are stated at the principal amount outstanding, net of the allowance for loan losses and unearned fees. Interest on loans is recognized as income based upon the applicable rate applied to the daily outstanding principal balance using the simple interest method. The past due or delinquency status of a loan is determined based on contractual payment terms. Nonrefundable loan fees and costs incurred for loans are generally deferred and recognized in income over the life of the loans. A loan is considered impaired when, based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, at the loan’s observable market price, or at the fair value of the collateral of the loan if the loan is collateral dependent. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions and collection efforts that the borrower’s financial condition is such that collection of interest is doubtful. When a loan is placed on nonaccrual status, previously accrued and uncollected interest is charged to interest income on loans. Generally, payments on nonaccrual loans are applied to principal. When a borrower has demonstrated the capacity to service the debt for a reasonable period of time, management may elect to resume the accrual of interest on the loan. All other loans are deemed to be unimpaired and are grouped into various homogeneous risk pools utilizing regulatory reporting classifications. The Bank’s historical loss factors are calculated for each of these risk pools based on the net losses experienced as a percentage of the average loans outstanding. The time periods utilized in these historical loss factor calculations are subjective and vary according to management’s estimate of the impact of current economic cycles. As every loan has a risk of loss, minimum loss factors are estimated based on long term trends for the Bank, the banking industry, and the economy. The greater of the calculated historical loss factors or the minimum loss factors are applied to the unimpaired loan amounts currently outstanding for the risk pool and included in the analysis of the allowance for loan losses. In addition, certain qualitative adjustments may be included by management as additional loss factors applied to the unimpaired loan risk pools. These adjustments may include, among other things, changes in loan policy, loan administration, loan, geographic, or industry concentrations, loan growth rates, and experience levels of our lending officers. The loss allocations for specifically impaired loans, smaller impaired loans not specifically measured for impairment, and unimpaired loans are totaled to determine the total required allowance for loan losses. This total is compared to the current allowance on the Bank’s books and adjustments made accordingly by a charge or credit to the provision for loan losses. The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes that the collectibility of the principal is unlikely. The allowance represents an amount which, in management’s judgment, will be adequate to absorb probable losses on existing loans that may become uncollectible. Management assesses the adequacy of its allowance for loan losses at the end of each calendar quarter. Management’s judgment in determining the adequacy of the allowance is based on evaluations of the collectibility of loans. These evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio, current economic conditions that may affect the borrower’s ability to pay, overall portfolio quality, and review of specific problem loans. Management believes that the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on judgments that are different than those of management. Concentrations of Credit Risk The Company originates primarily commercial, commercial real estate, residential real estate, and consumer loans to customers in its primary market areas in Alabama listed above. The ability of the majority of the Company’s customers to honor their contractual loan obligations is dependent on the economy in these areas. Seventy-seven percent of the Company’s loan portfolio is secured by real estate, of which the majority is secured by real estate in the Company’s market areas. The Company, according to regulatory restrictions, may not generally extend credit to any single borrower or group of related borrowers on a secured basis in excess of 20% of capital, as defined, or $22.1 million, or on an unsecured basis in excess of 10% of capital, as defined, or $11 million . However, the Company has established internal policies that may further limit the extension of credit to any single borrower or group of related borrowers depending on their credit worthiness. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, i.e. put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Mortgage Loans Held-for-Sale Mortgage loans held-for-sale are carried at the lower of aggregate cost or estimated market value. Gains and losses on loans held-for-sale are included in the determination of income for the period in which the sales occur. At December 31, 2018 and 2017, the cost of loans held-for-sale approximates the market value. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Major additions and improvements are charged to the property accounts while replacements, maintenance and repairs that do not improve or extend the life of the respective assets are expensed currently. When property is retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss, if any, is recognized. Depreciation expense is computed using the straight-line method over the following estimated useful lives. The useful estimated useful life for buildings is generally 40 years. The estimated useful life for furniture and equipment is generally 3-25 years. Other Real Estate and Repossessed Assets Other real estate represents properties acquired through or in lieu of loan foreclosure and is initially recorded at fair value less estimated disposal costs. Costs of improvements are capitalized, whereas costs relating to holding other real estate and valuation adjustments are expensed. Revenue and expenses from operations and changes in valuation allowance are included in net expenses from other real estate. Business Combinations The Company accounts for business combinations under the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations Goodwill and Intangible Assets Goodwill represents the excess of cost over the fair value of the net assets purchased in business combinations. Goodwill is required to be tested annually for impairment or whenever events occur that may indicate that the recoverability of the carrying amount is not probable. In the event of impairment, the amount by which the carrying amount exceeds the fair value is charged to earnings. The Company performs its annual test for impairment in the fourth quarter of each year. Intangible assets consist of core deposit premiums acquired in connection with business combinations and are based on the established value of acquired customer deposits. The core deposit premium is initially recognized based on a valuation performed as of the consummation date and is amortized over an estimated useful life of three to ten years. Amortization periods are reviewed annually in connection with the annual impairment testing of goodwill. Purchased Loans Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date. When the loans have evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect all contractually required principal and interest payments, the difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the non-accretable difference. The Company must estimate expected cash flows at each reporting date. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent increases in expected cash flows result in a reversal of the provision for loan losses to the extent of prior provisions and adjustment to accretable discount if no prior provisions have been made. This increase in accretable discount will have a positive impact on interest income. In addition, purchased loans without evidence of credit deterioration are also handled under this method. Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Any interest and penalties incurred in connection with income taxes are recorded as a component of other operating expenses in the consolidated financial statements. In the event the future tax consequences of differences between the financial reporting bases and the tax bases of the assets and liabilities results in deferred tax assets, an evaluation of the probability of being able to realize the future benefits indicated by such asset is required. A valuation allowance is provided for the portion of the deferred tax asset when it is more likely than not that some portion or all of the deferred tax asset will not be realized. In assessing the realizability of the deferred tax assets, management considers the scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies. The Company currently evaluates income tax positions judged to be uncertain. A loss contingency reserve is accrued if it is probable that the tax position will be challenged, it is probable that the future resolution of the challenge will confirm that a loss has been incurred, and the amount of such loss can be reasonably estimated. Stock-Based Compensation The Company accounts for its stock-based compensation plans using a fair value-based method of accounting, whereby compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. Accumulated Other Comprehensive Income At December 31, 2018 and 2017, accumulated other comprehensive income (loss) consisted of net unrealized gains (losses) on investment securities available-for-sale. Revenue Recognition Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. Service Charges and Fees - these represent general service fees for monthly account maintenance and activity or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when the Company’s performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed. Payment for such performance obligations are generally received at the time the performance obligations are satisfied. Investment Brokerage Revenue - retail brokerage fees are received from a third party broker-dealer, for which the Company acts as an agent, as part of a revenue-sharing agreement for fees earned from customers that are referred to the third party. These fees are for transactional and advisory services and are paid by the third party on a monthly or quarterly basis and recognized ratably throughout the quarter as the Company’s performance obligation is satisfied. Bank Card Fees – bank card related fees primarily includes interchange income from client use of consumer and business debit cards. Interchange income is a fee paid by a merchant bank to the card-issuing bank through the interchange network. Interchange fees are set by the credit card associations and are based on cardholder purchase volumes. The Company records interchange income as transactions occur. This income is included in other noninterest income on the consolidated statements of income. Gains and Losses from the Sale of Bank Owned Property – the performance obligation in the sale of other real estate owned typically will be the delivery of control over the property to the buyer. If the Company is not providing the financing of the sale, the transaction price is typically identified in the purchase and sale agreement. However, if the Company provides seller financing, the Company must determine a transaction price, depending on if the sale contract is at market terms and taking into account the credit risk inherent in the arrangement. Other non-interest income primarily includes items such as mortgage banking fees (gains from the sale of residential mortgage loans held for sale), bank-owned life insurance, and safe deposit box fees none of which are subject to the requirements of ASC 606. The Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affects the determination of the amount and timing of revenue from the above-described contracts with clients. Net Earnings per Common Share Basic earnings per common share are computed by dividing net income by the weighted-average number of shares of common stock outstanding during the year. Diluted earnings per common share are computed by dividing net income by the effect of the issuance of potential common shares that are dilutive and by the sum of the weighted-average number of shares of common stock outstanding. Anti-dilutive potential common shares are excluded from the diluted earnings per share computation. At December 31, 2018 and 2017, there were no antidilutive potential common shares. The reconciliation of the components of basic and diluted earnings per share is as follows (amounts in thousands, except per share amounts): For the Year Ended December 31, 2018 2017 Net income available to common shareholders $ 8,506 $ 8,295 Weighted average common shares outstanding 5,217,348 5,095,305 Dilutive effect of stock options 93,726 84,797 Diluted common shares 5,311,074 5,180,102 Basic earnings per common share $ 1.63 $ 1.63 Diluted earnings per common share $ 1.60 $ 1.60 Segment Reporting ASC Topic 280 “Segment Reporting,” provides for the identification of reportable segments on the basis of distinct business units and their financial information to the extent such units are reviewed by an entity’s chief decision maker (which can be an individual or group of management persons). ASC Topic 280 permits aggregation or combination of segments that have similar characteristics. In the Company’s operations, each bank branch is viewed by management as being a separately identifiable business or segment from the perspective of monitoring performance and allocation of financial resources. Although the branches operate independently and are managed and monitored separately, each is substantially similar in terms of business focus, type of customers, products, and services. Accordingly, the Company’s consolidated financial statements reflect the presentation of segment information on an aggregated basis in one reportable segment. Reclassifications Certain 2017 amounts have been reclassified to conform to the presentation used in 2018. These reclassifications had no material effect on the operations, financial condition or cash flows of the Company. Advertising Advertising costs are expensed as incurred. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This will require lessees to recognize assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right of use asset representing its right to use the underlying asset for lease term. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2018. The amendment should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. We conducted a review of our existing lease contracts and recorded a gross-up of our balance sheet of approximately $2.2 million as a result of recognizing lease liabilities and corresponding right of use assets for operating leases upon adoption as of January 1, 2019. The adoption of this guidance will not result in material changes to the recognition of operating lease expense. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new guidance will apply to most financial assets measured at amortized cost and certain other instruments including loans, debt securities held to maturity, net investments in leases and off-balance-sheet credit exposures. The guidance will replace the current incurred loss accounting model that delays recognition of a loss until it is probable a loss has been incurred with an expected loss model that reflects expected credit losses based upon a broader range of estimates including consideration of past events, current conditions and supportable forecasts. The guidance also eliminates the current accounting model for purchased credit impaired loans and debt securities. For securities available for sale, credit losses are to be recognized as allowances rather than reductions in the amortized cost of the securities, which will require re-measurement of the related allowance at each reporting period. The guidance includes enhanced disclosure requirements intended to help financial statement users better understand estimates and judgments used in estimating credit losses. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Our implementation efforts continued throughout 2018, assessing credit loss forecasting models and processes against the new guidance. In the first quarter of 2019 we will begin running the expected loss model along with our current model. While we continue to evaluate the impact the new guidance will have on our financial position and results of operations, we currently expect the new guidance may result in an increase to our allowance for credit losses given the change to estimated losses over the contractual life of the loan portfolio. The amount of any change to our allowance is still under review and will depend, in part, upon the composition of our loan portfolio at the adoption date as well as economic conditions and loss forecasts at that date. I n January 2017, FASB issued ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 simplifies the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. In computing the implied fair value of goodwill under Step 2, an entity, prior to the amendments in ASU 2017-04, had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities, including unrecognized assets and liabilities, in accordance with the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. However, under the amendments in ASU 2017-04, an entity should (1) perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and (2) recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, with the understanding that the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, ASU 2017-04 removes the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test. ASU 2017-04 is effective prospectively for annual, or any interim, goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company adopted ASU 2017-04 in 2017 and based on the Company’s annual goodwill impairment test performed as of December 31, 2017 and 2018 under ASU 2017-04, the fair value of its reporting units exceeded the carrying value and, therefore, the related goodwill was not impaired. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities. The amendments shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The amendments should be applied on a modified retrospective basis, with a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company does not believe that this ASU will have an impact on its financial position or results of operations. In February 2018, FASB issued ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” ASU 2018-02 seeks to help entities reclassify certain stranded income tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act of 2017, enacted on December 22, 2017. ASU 2018-02 was issued in response to concerns regarding current guidance in GAAP that requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the reporting period that includes the enactment date, even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in other comprehensive income (loss), rather than net income, and as a result the stranded tax effects would not reflect the appropriate tax rate. The amendments of ASU 2018-02 allow an entity to make a reclassification from accumulated other comprehensive income (loss) to retained earnings for the stranded tax effects, which is the difference between the historical corporate income tax rate of 34% and the newly enacted corporate income tax rate of 21%. ASU 2018-02 is effective for fiscal years beginning after December 31, 2018; however, public business entities are allowed to early adopt the amendments of ASU 2018-02. As a result of the re-measurement of the Company’s deferred tax assets following the enactment of the Tax Reform Act, accumulated other comprehensive loss included $333 thousand of stranded tax effects at December 31, 2017. The Company early adopted the amendments of 2018-02 as of December 31, 2017 and made the election to reclassify the stranded tax effects from accumulated other comprehensive loss to retained earnings at December 31, 2017. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination | (2) Business Combination On October 31, 2018, the Company completed its merger with PSB Bancshares, Inc. (“PSB”), a bank holding company headquartered in Clanton, Alabama. At that time, PSB’s wholly-owned banking subsidiary, Peoples Southern Bank was merged with and into RB&T. Peoples Southern Bank had a total of three banking locations located in Clanton, and Thorsby, Alabama. Upon consummation of the acquisition, PSB was merged with and into the Company, with the Company as the surviving entity in the merger. PSB’s common shareholders received sixty (60) shares of the Company’s common stock and $6,610.00 in cash in exchange for each share of PSB’s common stock. The Company paid cash totaling $24.5 million and issued 222,360 shares of the Company’s common stock. The aggregate estimated value of the consideration given was approximately $30.5 million. The Company recorded $8.2 million of goodwill, which is nondeductible for tax purposes, as this acquisition was a nontaxable transaction. Merger expenses of approximately $1.84 million were charged directly to other noninterest expenses. The acquisition of PSB was accounted for using the acquisition method of accounting in accordance with ASC 805, Business Combinations The following table presents the assets acquired and liabilities assumed of PSB as of October 31, 2018, at their fair value estimates (amounts in thousands, except per share data): As Recorded By Peoples Southern Bank Fair Value Adjustments As Recorded By Cash and cash equivalents $ 22,227 $ - $ 22,227 Bank owned certificates of deposit 3,449 (34 ) (a) 3,415 Investment securities 100,887 55 (b) 100,942 Loans, net of unearned income 55,934 (715 ) (c) 55,219 Allowance for loan losses (1,005 ) 1,005 (d) - Net loans 54,929 290 55,219 Premises and equipment, net 1,562 3,744 (e) 5,306 Deferred income taxes, net 215 (2,048 ) (f) (1,833 ) Core deposit intangible - 4,650 (g) 4,650 Other assets 1,211 - 1,211 Total assets $ 184,480 $ 6,657 $ 191,137 Noninterest-bearing deposits $ 112,524 $ - $ 112,524 Interest-bearing deposits 54,902 (30 ) (h) 54,872 Total deposits 167,426 (30 ) 167,396 Other liabilities 1,317 167 (i) 1,484 Total liabilities 168,743 137 168,880 Net identifiable assets acquired over liabilities assumed 15,737 6,520 22,257 Goodwill - 8,243 8,243 Net assets acquired over liabilities assumed $ 15,737 $ 14,763 $ 30,500 (a) Adjustment reflects the fair value adjustment of the certificates of deposit in banks at acquisition date. (b) Adjustment reflects the fair value adjustment of the available-for-sale portfolio at acquisition date. (c) Adjustment reflects the fair value adjustment of the acquired loan portfolio at the acquisition date. (d) Adjustment reflects the elimination of PSB's allowance for loan losses. (e) Adjustment reflects the fair value adjustment on PSB's offices. (f) Adjustment reflects the recording of the net deferred tax asset (liability) created by the purchase adjustments. (g) Adjustment reflects the recording of the core deposit intangible asset. (h) Adjustment reflects the fair value adjustment of the time deposits at acquisition date. (i) Adjustment reflects the fair value adjustment for other liabilities. Consideration: Number of shares of PSB common stock outstanding at October 31, 2018 3,706 Per share exchange ratio 60 Number of shares of RFC common stock issued 222,360 RFC common stock price per share on October 31, 2018 $ 27 Fair value of RFC common stock issued $ 6,003 Number of shares of PSB common stock outstanding at October 31, 2018 3,706 Cash consideration each PSB share is entitled to receive $ 6,610 Total cash consideration (in thousands) $ 24,497 Total stock consideration (in thousands) $ 6,003 Total cash consideration (in thousands) 24,497 Total purchase price for PSB (in thousands) $ 30,500 The discounts on loans will be accreted to interest income over the life of the loans using the level yield method. The core deposit intangible asset will be amortized over a ten year life on an accelerated basis. The following unaudited supplemental pro forma information is presented to show estimated results assuming PSB was acquired as of the beginning of the earliest period presented. These unaudited pro forma results are not necessarily indicative of the operating results the Company would have achieved had it completed the acquisition as of January 1, 2017 and should not be considered as representative of future operating results (amounts in thousands). For The Year Ended December 31, 2017 Net interest income - pro forma (unaudited) $ 34,521 Net earnings - pro forma (unaudited) $ 9,219 Diluted earnings per common share - pro forma (unaudited) $ 1.71 In many cases, determining the fair value of the acquired assets and assumed liabilities requires the Company to estimate cash flows expected to result from those assets and liabilities and to discount those cash flows at appropriate rates of interest. The most significant of those determinations is related to the fair valuation of acquired loans. Acquired loans are initially recorded at their acquisition date fair values. The carryover of the allowance for loan losses is prohibited, as any credit losses in the loans are included in the determination of the fair value of the loans at the acquisition date. Fair values for acquired loans are based on a discounted cash flow methodology that involves assumptions including the remaining life of the acquired loans, estimated prepayments, estimated value of the underlying collateral and net present value of cash flows expected to be collected. Acquired loans that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that the acquirer will be unable to collect all contractually required payments are specifically identified and analyzed. The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized in interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the non- accretable discount. The non-accretable discount represents estimated future credit losses expected to be incurred over the life of the loan. Loans at the acquisition date are presented in the following table at fair value (amounts in thousands). Acquired Impaired Loans Acquired Performing Loans Total Acquired Loans Residential real estate $ 342 $ 19,092 $ 19,434 Commercial real estate 463 13,521 13,984 Construction and land development 158 4,140 4,298 Commercial 2 11,194 11,196 Consumer 95 6,212 6,307 Total loans $ 1,060 $ 54,159 $ 55,219 Loans at the acquisition date are presented in the following table at the gross contractual amount receivable (amounts in thousands). Acquired Impaired Loans Acquired Performing Loans Total Acquired Loans Residential real estate $ 388 $ 19,122 $ 19,510 Commercial real estate 669 13,656 14,325 Construction and land development 202 4,172 4,374 Commercial 2 11,339 11,341 Consumer 99 6,285 6,384 Total loans $ 1,360 $ 54,574 $ 55,934 There was a total of $62 thousand accreted to income from the acquired loan portfolio for the year ended December 31, 2018. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | (3) Investment Securities Investment securities available-for-sale at December 31, 2018 and 2017 are as follows (amounts in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2018: Securities available-for-sale: Residential mortgage-backed $ 108,915 $ 45 $ (4,027 ) $ 104,933 U.S. govt. sponsored enterprises 63,833 367 (278 ) 63,922 State, county, and municipal 57,417 219 (476 ) 57,160 Corporate debt obligations 2,670 7 (62 ) 2,615 Totals $ 232,835 $ 638 $ (4,843 ) $ 228,630 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2017: Securities available-for-sale: Residential mortgage-backed $ 125,768 $ 23 $ (2,819 ) $ 122,972 U.S. govt. sponsored enterprises 13,176 8 (185 ) 12,999 State, county, and municipal 55,339 511 (349 ) 55,501 Corporate debt obligations 1,831 11 (25 ) 1,817 Totals $ 196,114 $ 553 $ (3,378 ) $ 193,289 Management evaluates securities for other-than-temporary impairment on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Details concerning investment securities with unrealized losses as of December 31, 2018 and 2017 are as follows (amounts in thousands): Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2018: Securities available-for-sale: Residential mortgage-backed $ 6,003 $ 27 $ 88,502 $ 4,000 $ 94,505 $ 4,027 U.S. govt. sponsored enterprises 9,786 13 8,116 265 17,902 278 State, county & municipal 19,043 149 13,880 327 32,923 476 Corporate debt obligations 516 3 332 59 848 62 Totals $ 35,348 $ 192 $ 110,830 $ 4,651 $ 146,178 $ 4,843 December 31, 2017: Securities available-for-sale: Residential mortgage-backed $ 43,811 $ 445 $ 75,046 $ 2,374 $ 118,857 $ 2,819 U.S. govt. sponsored enterprises 8,630 60 3,698 125 12,328 185 State, county & municipal 14,535 130 14,559 219 29,094 349 Corporate debt obligations 1,000 - 355 25 1,355 25 Totals $ 67,976 $ 635 $ 93,658 $ 2,743 $ 161,634 $ 3,378 At December 31, 2018, one hundred fifty-five out of three hundred one securities were in a loss position due primarily to changing interest rates. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. As management had the ability and intent to hold debt securities until maturity, no declines were deemed to be other than temporary as of December 31, 2018 and 2017. The proceeds and gross gains and gross losses from sales of securities available-for-sale for the years ended December 31, 2018 and 2017 are as follows (in thousands): Year ended December 31: 2018 2017 Realized Gains (Losses)-Securities Sales: Gross gains $ 381 $ 63 Gross losses (429 ) (58 ) Investment securities gains (losses), net $ (48 ) $ 5 Proceeds from sales of investment securities $ 59,907 $ 13,251 At December 31, 2018 and 2017, securities with a carrying value of approximately $61.5 million and $28.5 million, respectively, were pledged to secure public deposits as required by law. At December 31, 2018 and 2017, the carrying value of securities pledged to secure repurchase agreements was approximately $16.5 million and $20 million, respectively. The amortized cost and estimated fair value of securities available-for-sale at December 31, 2018, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value Securities available-for-sale Less than 1 year $ 17,094 $ 17,092 1 to 5 years 55,924 56,000 5 to 10 years 23,597 23,733 After 10 years 27,305 26,872 123,920 123,697 Residential mortgage-backed securities 108,915 104,933 Totals $ 232,835 $ 228,630 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | |
Loans | (4) Loans Major classifications of loans at December 31, 2018 and 2017 are summarized as follows (in thousands): December 31, 2018 December 31, 2017 Amount % of Total Amount % of Total Residential real estate: Closed-end 1-4 family - first lien $ 162,249 23.0 % $ 115,776 21.4 % Closed-end 1-4 family - junior lien 5,739 0.8 % 4,969 0.9 % Multi-family 16,938 2.4 % 16,977 3.1 % Total residential real estate 184,926 26.2 % 137,722 25.4 % Commercial real estate: Nonfarm nonresidential 209,391 29.7 % 173,443 32.0 % Farmland 10,417 1.5 % 7,782 1.4 % Total commercial real estate 219,808 31.2 % 181,225 33.4 % Construction and land development: Residential 39,680 5.6 % 25,830 4.8 % Other 62,430 8.9 % 40,734 7.5 % Total construction and land development 102,110 14.5 % 66,564 12.3 % Home equity lines of credit 39,040 5.5 % 35,833 6.6 % Commercial loans: Other commercial loans 112,927 16.0 % 95,896 17.7 % Agricultural 1,743 0.2 % 1,581 0.3 % State, county, and municipal loans 19,756 2.9 % 8,332 1.5 % Total commercial loans 134,426 19.1 % 105,809 19.5 % Consumer loans 33,867 4.8 % 23,231 4.3 % Total gross loans 714,177 101.3 % 550,384 101.5 % Allowance for loan losses (6,577 ) -0.9 % (4,881 ) -0.9 % Net deferred loan fees and discounts (2,915 ) -0.4 % (3,263 ) -0.6 % Net loans $ 704,685 100.0 % $ 542,240 100.0 % For purposes of the disclosures required pursuant to ASC 310, the loan portfolio was disaggregated into segments and then further disaggregated into classes for certain disclosures. A portfolio segment is defined as the level at which an entity develops and documents a systematic method for determining its allowance for loan losses. There are three primary loan portfolio segments that include real estate, commercial, and consumer. A class is generally determined based on the initial measurement attribute, risk characteristic of the loan, and the Company’s method for monitoring and assessing credit risk. Classes within the real estate portfolio segment include residential real estate, commercial real estate, construction and land development and home equity lines of credit. The portfolio segments of non-real estate commercial loans and consumer loans have not been further segregated by class. The following describe risk characteristics relevant to each of the portfolio segments: Real estate - As discussed below, the Company offers various types of real estate loan products. All loans within this portfolio segment are particularly sensitive to the valuation of real estate: Residential real estate and home equity lines of credit are repaid by various means such as a borrower’s income, sale of the property, or rental income derived from the property. Commercial real estate loans include both owner-occupied commercial real estate loans and other commercial real estate loans secured by income producing properties. Owner-occupied commercial real estate loans to operating businesses are long-term financing of land and buildings. These loans are repaid by cash flow generated from the business operation. Real estate loans for income-producing properties such as office and industrial buildings, and retail shopping centers are repaid from rent income derived from the properties. are repaid by various means such as a borrower’s income, sale of the property, or rental income derived from the property. Construction and land development loans are repaid through cash flow related to the operations, sale or refinance of the underlying property. This portfolio class includes extensions of credit to real estate developers or investors where repayment is dependent on the sale of the real estate or income generated from the real estate collateral. Commercial loans - The commercial loan portfolio segment includes commercial and industrial loans, agricultural loans and loans to state and municipalities. These loans include those loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases, or expansion projects. Loans are repaid by business cash flows or tax revenues. Collection risk in this portfolio is driven by the creditworthiness of the underlying borrower, particularly cash flows from the customers’ business operations. Consumer loans - The consumer loan portfolio segment includes direct consumer installment loans, overdrafts and other revolving credit loans. Loans in this portfolio are sensitive to unemployment and other key consumer economic measures. The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2018 and 2017 (amounts in thousands). The acquired loans are not included in the allowance for loan losses calculation, as these loans are recorded at fair value and there has been no further indication of credit deterioration that would require an additional provision. Real Estate Mortgage Loans Allowance for Loan Losses Residential Commercial Construction and Land Development Home Equity Lines Of Credit Commercial Consumer Total Balance - December 31, 2017 $ 1,167 $ 1,604 $ 606 $ 333 $ 954 $ 217 $ 4,881 Provision for loan losses 438 453 298 69 566 136 1,960 Loan charge-offs (41 ) (109 ) - (20 ) (284 ) (48 ) (502 ) Loan recoveries 15 13 38 12 139 21 238 Balance - December 31, 2018 $ 1,579 $ 1,961 $ 942 $ 394 $ 1,375 $ 326 6,577 Ending balance: Individually evaluated for impairment $ 507 $ 54 $ 8 $ - $ 143 $ 13 $ 725 Collectively evaluated for impairment $ 1,072 $ 1,907 $ 934 $ 394 $ 1,232 $ 313 $ 5,852 Loans: Individually evaluated for impairment $ 2,008 $ 1,925 $ 158 $ 100 $ 262 $ 54 $ 4,507 Collectively evaluated for impairment $ 182,586 $ 217,445 $ 101,799 $ 38,940 $ 134,163 $ 33,726 $ 708,659 Acquired loans with deteriorated credit quality $ 332 $ 438 $ 153 $ - $ 1 $ 87 $ 1,011 Percent of loans in each category to total loans 25.9 % 30.8 % 14.3 % 5.5 % 18.8 % 4.7 % 100.0 % Real Estate Mortgage Loans Allowance for Loan Losses Residential Commercial Construction and Land Development Home Equity Lines Of Credit Commercial Consumer Total Balance - December 31, 2016 $ 602 $ 1,456 $ 731 $ 190 $ 829 $ 199 $ 4,007 Provision for loan losses 573 440 (112 ) 239 487 113 1,740 Loan charge-offs (32 ) (308 ) (24 ) (100 ) (466 ) (109 ) (1,039 ) Loan recoveries 24 16 11 4 104 14 173 Balance - December 31, 2017 $ 1,167 $ 1,604 $ 606 $ 333 $ 954 $ 217 $ 4,881 Ending balance: Individually evaluated for impairment $ 526 $ 187 $ 11 $ - $ 174 $ 10 $ 908 Collectively evaluated for impairment $ 641 $ 1,417 $ 595 $ 333 $ 780 $ 207 $ 3,973 Loans: Individually evaluated for impairment $ 2,611 $ 2,295 $ 168 $ 100 $ 301 $ 87 $ 5,562 Collectively evaluated for impairment $ 135,111 $ 178,930 $ 66,396 $ 35,733 $ 105,508 $ 23,144 $ 544,822 Percent of loans in each category to total loans 25.1 % 32.9 % 12.1 % 6.5 % 19.2 % 4.2 % 100.0 % The Bank individually evaluates for impairment all loans that are on nonaccrual status. Additionally, all troubled debt restructurings are individually evaluated for impairment. A loan is considered impaired when, based on current events and circumstances, it is probable that all amounts due according to the contractual terms of the loan will not be collected. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, at the loan’s observable market price, or the fair value of the collateral if the loan is collateral-dependent. Management may also elect to apply an additional collective reserve to groups of impaired loans based on current economic or market factors. Interest payments received on impaired loans are generally applied as a reduction of the outstanding principal balance. The following tables present impaired loans by class of loans as of December 31, 2018 and 2017 (amounts in thousands). The purchased credit-impaired loans are not included in these tables because they are carried at fair value and accordingly have no related associated allowance. December 31, 2018 Nonaccruing Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Impaired Allowance for Loan Losses Mortgage loans on real estate: Residential $ 1,519 $ 1,519 $ 118 $ 1,401 $ 505 Commercial real estate 423 142 142 - - Construction and land development - - - - - Total mortgage loans on real estate 1,942 1,661 260 1,401 505 Home equity lines of credit - - - - - Commercial loans 143 143 - 143 143 Consumer loans - - - - - Total Loans $ 2,085 $ 1,804 $ 260 $ 1,544 $ 648 Accruing Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Impaired Allowance for Loan Losses Mortgage loans on real estate: Residential $ 489 $ 489 $ 370 $ 119 $ 2 Commercial real estate 1,783 1,783 965 818 54 Construction and land development 221 158 - 158 8 Total mortgage loans on real estate 2,493 2,430 1,335 1,095 64 Home equity lines of credit 100 100 100 - - Commercial loans 119 119 119 - - Consumer loans 54 54 29 25 13 Total Loans $ 2,766 $ 2,703 $ 1,583 $ 1,120 $ 77 Total Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Impaired Allowance for Loan Losses Mortgage loans on real estate: Residential $ 2,008 $ 2,008 $ 488 $ 1,520 $ 507 Commercial real estate 2,206 1,925 1,107 818 54 Construction and land development 221 158 - 158 8 Total mortgage loans on real estate 4,435 4,091 1,595 2,496 569 Home equity lines of credit 100 100 100 - - Commercial loans 262 262 119 143 143 Consumer loans 54 54 29 25 13 Total Loans $ 4,851 $ 4,507 $ 1,843 $ 2,664 $ 725 December 31, 2017 Nonaccruing Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Impaired Allowance for Loan Losses Mortgage loans on real estate: Residential $ 1,767 $ 1,767 $ 350 $ 1,417 $ 526 Commercial real estate 500 328 328 - - Construction and land development - - - - - Total mortgage loans on real estate 2,267 2,095 678 1,417 526 Home equity lines of credit - - - - - Commercial loans - - - - - Consumer loans 204 54 54 - - Total Loans $ 2,471 $ 2,149 $ 732 $ 1,417 $ 526 Accruing Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Impaired Allowance for Loan Losses Mortgage loans on real estate: Residential $ 844 $ 844 $ 844 $ - $ - Commercial real estate 1,968 1,967 540 1,427 187 Construction and land development 232 168 - 168 11 Total mortgage loans on real estate 3,044 2,979 1,384 1,595 198 Home equity lines of credit 100 100 100 - - Commercial loans 300 301 127 174 174 Consumer loans 33 33 - 33 10 Total Loans $ 3,477 $ 3,413 $ 1,611 $ 1,802 $ 382 Total Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Impaired Allowance for Loan Losses Mortgage loans on real estate: Residential $ 2,611 $ 2,611 $ 1,194 $ 1,417 $ 526 Commercial real estate 2,468 2,295 868 1,427 187 Construction and land development 232 168 - 168 11 Total mortgage loans on real estate 5,311 5,074 2,062 3,012 724 Home equity lines of credit 100 100 100 - - Commercial loans 300 301 127 174 174 Consumer loans 237 87 54 33 10 Total Loans $ 5,948 $ 5,562 $ 2,343 $ 3,219 $ 908 The following table presents the average recorded investment in impaired loans and the interest income recognized on impaired loans in the years ended December 31, 2018 and 2017 by loan category (in thousands). Year Ended December 31, 2018 Year Ended December 31, 2017 Average Recorded Investment Interest Income Average Recorded Investment Interest Income Mortgage loans on real estate: Residential real estate $ 2,020 $ 23 $ 2,209 $ 50 Commercial real estate 2,117 92 3,027 80 Construction and land development 163 8 181 10 Total mortgage loans on real estate 4,300 123 5,417 140 Home equity lines of credit 100 6 100 6 Commercial loans 268 9 498 15 Consumer loans 60 3 116 1 Total Loans $ 4,728 $ 141 $ 6,131 $ 162 For the years ended December 31, 2018 and 2017, the Bank did not recognize a material amount of interest income on impaired loans. The following tables present the aging of the recorded investment in past due loans and non-accrual loan balances as of December 31, 2018 and 2017 by class of loans (amounts in thousands). Accruing Loans 30-89 Days 90+ Days Nonaccrual As of December 31, 2018 Current Past Due Past Due Loans Total Loans Mortgage loans on real estate: Residential $ 181,252 $ 1,528 $ 19 $ 2,127 $ 184,926 Commercial real estate 219,578 68 - 162 219,808 Construction and land development 101,993 23 - 94 102,110 Total mortgage loans on real estate 502,823 1,619 19 2,383 506,844 Home equity lines of credit 38,891 24 - 125 39,040 Commercial loans 134,066 217 - 143 134,426 Consumer loans 33,544 234 - 89 33,867 Total Loans $ 709,324 $ 2,094 $ 19 $ 2,740 $ 714,177 Accruing Loans 30-89 Days 90+ Days Nonaccrual As of December 31, 2017 Current Past Due Past Due Loans Total Loans Mortgage loans on real estate: Residential $ 134,565 $ 857 $ 410 $ 1,890 $ 137,722 Commercial real estate 180,826 - - 399 181,225 Construction and land development 66,275 221 - 68 66,564 Total mortgage loans on real estate 381,666 1,078 410 2,357 385,511 Home equity lines of credit 35,591 152 10 80 35,833 Commercial loans 105,081 728 - - 105,809 Consumer loans 22,906 175 1 149 23,231 Total Loans $ 545,244 $ 2,133 $ 421 $ 2,586 $ 550,384 The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Bank analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a continuous basis. The Bank uses the following definitions for their risk ratings: Accruing Loans – Special Mention: Weakness exists that could cause future impairment, including the deterioration of financial ratios, past due status and questionable management capabilities. Collateral values generally afford adequate coverage but may not be immediately marketable. Substandard: Specific and well-defined weaknesses exist that may include poor liquidity and deterioration of financial ratios. The loan may be past due and related deposit accounts experiencing overdrafts. Immediate corrective action is necessary. Doubtful: Specific weaknesses characterized as Substandard that are severe enough to make collection in full unlikely. There is no reliable secondary source of full repayment. Loans classified as doubtful will usually be placed on non-accrual, analyzed and fully or partially charged off based on a review of any collateral and other relevant factors. Nonaccrual: Specific weakness characterized as Doubtful that are severe enough for the loan to be placed on nonaccrual status because collection of all contractual principal and interest payments is considered unlikely. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be “Pass” rated loans. As of December 31, 2018 and 2017, and based on the most recent analyses performed, the risk category of loans by class of loans is as follows (amounts in thousands): Special As of December 31, 2018 Pass Mention Substandard Doubtful Total Mortgage loans on real estate: Residential $ 179,132 $ 2,435 $ 3,270 $ 89 $ 184,926 Commercial real estate 212,421 4,609 2,778 - 219,808 Construction and land development 101,612 49 449 - 102,110 Total mortgage loans on real estate 493,165 7,093 6,497 89 506,844 Home equity lines of credit 38,530 285 225 - 39,040 Commercial loans 131,449 2,612 343 22 134,426 Consumer loans 33,269 330 268 - 33,867 Total Loans $ 696,413 $ 10,320 $ 7,333 $ 111 $ 714,177 Special As of December 31, 2017 Pass Mention Substandard Doubtful Total Mortgage loans on real estate: Residential $ 132,914 $ 1,390 $ 3,418 $ - $ 137,722 Commercial real estate 175,208 4,238 1,779 - 181,225 Construction and land development 65,656 750 158 - 66,564 Total mortgage loans on real estate 373,778 6,378 5,355 - 385,511 Home equity lines of credit 35,580 14 203 36 35,833 Commercial loans 103,137 2,234 438 - 105,809 Consumer loans 22,865 58 308 - 23,231 Total Loans $ 535,360 $ 8,684 $ 6,304 $ 36 $ 550,384 Troubled Debt Restructurings (TDR): At December 31, 2018 and 2017, loans totaling $3.3 million and $2.4 million, respectively, were classified as TDRs and impaired. The restructuring of a loan is considered a TDR if both (i) the borrower is experiencing financial difficulties and (ii) the Company has granted a concession. The Company restructured 5 loans totaling $823 thousand in 2018 and 1 loan totaling $57 thousand in 2017. During the year ended December 31, 2018 there was one residential real estate loan with a balance of $54 thousand and one commercial loan with a balance of $143 thousand that were modified within the previous twelve months that were in default of their modified terms. During the year ended December 31, 2017 there were no loans that were modified within the previous twelve months that were in default of their modified terms. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | (5) Premises and Equipment Major classifications of premises and equipment as of December 31, 2018 and 2017 are summarized as follows (amounts in thousands): December 31, 2018 2017 Land and improvements $ 6,555 $ 6,123 Buildings and improvements 20,736 15,967 Leasehold improvements 678 658 Furniture, equipment, and vehicle 4,951 4,099 Total 32,920 26,847 Accumulated depreciation (6,093 ) (5,038 ) Premises and equipment, net $ 26,827 $ 21,809 Depreciation expense amounted to approximately $1.1 million in 2018 and $946 thousand in 2017. |
Foreclosed Assets
Foreclosed Assets | 12 Months Ended |
Dec. 31, 2018 | |
Other Real Estate And Foreclosed Assets [Abstract] | |
Foreclosed assets | (6) Foreclosed assets Other real estate and certain other assets acquired in foreclosure are carried at the lower of the recorded investment in the loan or fair value less estimated costs to sell the property. There was a total of approximately $276 thousand in residential real estate foreclosures for December 31, 2018 and $323 thousand residential in real estate foreclosures for December 31, 2017. An analysis of foreclosed properties for the years ended December 31, 2018 and 2017 follows (in thousands). Year ended December 31, 2018 2017 Balance at beginning of year $ 1,546 $ 1,151 Transfers from loans 318 2,658 Foreclosed property sold (1,248 ) (2,118 ) Write-down of foreclosed property (120 ) (145 ) Balance at end of year $ 496 $ 1,546 Expenses applicable to foreclosed assets for the years ended December 31, 2018 and 2017 include the following (amounts in thousands). Year ended December 31, 2018 2017 Net (gain) loss on sales of foreclosed assets $ 20 $ (72 ) Write-down of foreclosed property 120 145 Operating expenses, net of rental income 60 90 Total $ 200 $ 163 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Deposits | (7) Deposits The following table sets forth the major classifications of deposits at December 31, 2018 and 2017 (in thousands): December 31, 2018 2017 Demand deposits, non-interest bearing $ 241,274 $ 185,171 Demand deposits, interest bearing 239,463 195,792 Money market accounts 200,143 153,732 Savings deposits 55,733 29,441 Time certificates of $250,000 or more 47,251 37,045 Other time certificates 114,843 98,680 Totals $ 898,707 $ 699,861 As of December 31, 2018, the scheduled maturities of certificates of deposit are as follows for certificates of deposit less than $250 thousand and for certificates of deposit (“CDs”) of $250 thousand or more (in thousands): CDs Less Than $250,000 2019 $ 83,811 2020 16,136 2021 7,553 2022 5,569 2023 1,774 Maturing after 2023 - Total $ 114,843 CDs $250,000 or more 2019 $ 34,089 2020 2,251 2021 5,835 2022 3,530 2023 1,546 Maturing after 2023 - Total $ 47,251 |
Securities Sold Under Repurchas
Securities Sold Under Repurchase Agreements | 12 Months Ended |
Dec. 31, 2018 | |
Securities Sold Under Agreements To Repurchase [Abstract] | |
Securities Sold Under Repurchase Agreements | (8) Securities Sold Under Repurchase Agreements Securities sold under repurchase agreement are sold for one business day only. Securities sold under these arrangements are held in safekeeping by the Bank’s primary correspondent bank and may not be pledged, assigned, sold, or otherwise transferred or utilized by the customer. Interest rates on securities sold under repurchase agreement are determined daily by the Bank. Securities sold under repurchase agreements were $8 million and $13.9 million at December 31, 2018 and 2017, respectively. The agreements were secured by investment securities with a fair value of approximately $16.5 million and $20 million at December 31, 2018 and 2017, respectively. The weighted average interest rate paid on these agreements was 0.37% and 0.21% for the years ended December 31, 2018 and 2017. |
Federal Home Loan Bank and Othe
Federal Home Loan Bank and Other Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Federal Home Loan Banks [Abstract] | |
Federal Home Loan Bank and Other Borrowings | (9) Federal Home Loan Bank and Other Borrowings At December 31, 2018, the Company had outstanding advances from the FHLB that are summarized as follows (in thousands): December 31, 2018: Advance Maturity Rate Rate Type $ 10,000 1/16/2019 2.44 % Fixed 10,000 1/28/2019 2.48 % Fixed $ 20,000 December 31, 2017: Advance Maturity Rate Rate Type $ 5,000 1/22/2018 1.26 % Fixed 5,000 2/12/2018 1.38 % Fixed $ 10,000 At December 31, 2018 and 2017, the Company had outstanding unfunded standby letters of credit with the FHLB totaling approximately $5.1 million and $1.6 million, respectively. The Company had pledged under blanket floating liens approximately $268 million and $203 million in residential first mortgage loans, home equity lines of credit, commercial real estate loans, and loans secured by multi-family real estate as security for these advances, letters of credit, and possible future advances as of December 31, 2018 and 2017, respectively. The value of the pledged collateral, when using appropriate discount percentages as prescribed by the FHLB, equals or exceeds the advances and unfunded letters of credit outstanding. At December 31, 2018 and 2017, the Company had approximately $116.8 million and $95.5 million of additional borrowing capacity under its borrowing arrangement with the FHLB. On December 31, 2015, the Company entered into a loan agreement with SouthPoint Bank of Birmingham, Alabama for $7.5 million. The loan proceeds were drawn and received by the Company on January 4, 2016. The loan proceeds were used to fund the payment of the cash consideration to the Keystone shareholders of $7.3 million in accordance with the merger agreement and for general corporate purposes. The loan carried a variable interest rate equal to the Wall Street Journal Prime Rate. The loan was secured by all of the common stock of the Bank. The balance at December 31, 2017 was $5.4 million. The loan was paid in full during 2018. On October 31, 2018, the Company entered into a loan agreement with CenterState Bank for $27 million. The loan proceeds were drawn and received by the Company on October 31, 2018. The loan proceeds were used to fund the payment of the cash consideration to the PSB shareholders of $24.5 million in accordance with the merger agreement and for general corporate purposes. The loan carries a fixed interest rate of 6%. The loan is secured by all of the common stock of the Bank. The balance at December 31, 2018 was $27 million. The bank will have principal and interest payments due quarterly beginning in January 2019. The final principal payment will be paid at October 30, 2025. The terms of the loan agreement require the Bank to maintain a classified assets to tier 1 capital plus ALLL ratio not to exceed 40%, a tier 1 leverage ratio of at least 8%, a total risk-based ratio of at least 12%, and a fixed charge coverage ratio of at least 1:3:1 times. The loan agreement also requires the Bank to maintain at least $2 million in liquid assets at all times during the term of the loan. Principal payments on the CenterState Bank loan are due as follows: 2019 $ 3,202 2020 3,400 2021 3,608 2022 3,830 2023 4,065 Afterward 8,858 Total $ 26,963 The Company had available lines of credit for overnight federal funds borrowings totaling $38.5 million and $28.5 million at December 31 2018, and 2017, respectively. At December 31, 2018, the Company had no outstanding federal funds purchased balance. At December 31, 2017, the Company had an outstanding federal funds purchased balance of $1.2 million with an interest rate of 2.20%. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (10) Income Taxes The Tax Cuts and Jobs Act (the “Act”), which was enacted on December 22, 2017, made key changes to the U.S. tax law, including the reduction of the U.S. federal corporate tax rate from 34% to 21%. As ASC 740, Income Taxes The components of income tax expense for the years ended December 31, 2018 and 2017 are as follows (in thousands): 2018 2017 Current $ 3,282 $ 3,360 Deferred (899 ) 281 Change in federal income tax rate 878 Total income tax expense $ 2,383 $ 4,519 The difference between income tax expense and the amount computed by applying the statutory federal income tax rate to income before taxes for the years ended December 31, 2018 and 2017 is as follows (in thousands): 2018 2017 Net income before taxes $ 10,889 $ 12,814 Statutory federal tax rate 21 % 34 % Tax on income at statutory federal tax rate 2,287 4,357 Increase (decrease) resulting from: Federal income tax benefit of state income taxes (92 ) (156 ) Tax exempt income on loans (95 ) (82 ) Tax exempt income on investments (178 ) (384 ) Tax exempt income from bank-owned life insurance (120 ) (144 ) Tax exempt death benefits from bank-owned life insurance - (226 ) Nondeductible expenses 143 66 Change in federal income tax rate - 878 State income tax 438 460 Other - (250 ) Total $ 2,383 $ 4,519 The following summarizes the components of deferred taxes at December 31, 2018 and 2017 (in thousands). 2018 2017 Deferred tax assets: Loans and allowance for loan losses $ 1,937 $ 1,517 Accrued expenses 219 - Deferred compensation 600 282 Unrealized losses on investment securities available- for-sale 1,062 709 Other 485 497 Total deferred tax assets 4,303 3,005 Deferred tax liabilities: Core deposit intangible (1,400 ) (391 ) Depreciation (1,717 ) (602 ) Other (5 ) (35 ) Total deferred tax liabilities (3,122 ) (1,028 ) Net deferred income tax assets $ 1,181 $ 1,977 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments | (11) Commitments The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. In most cases, the Company requires collateral or other security to support financial instruments with credit risk. Financial instruments whose contract amount represents credit risk at December 31, 2018 and 2017 were as follows (in thousands): 2018 2017 Commitments to extend credit $ 146,462 $ 142,878 Stand-by and performance letters of credit 5,412 2,268 Total $ 151,874 $ 145,146 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. Since many of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained upon an extension of credit, if deemed necessary by the Company, is based on management’s credit evaluation. The type of collateral held varies but may include unimproved and improved real estate, certificates of deposit, or personal property. Standby and performance letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to local businesses. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company has entered into operating lease agreements for four branch locations and various office equipment. Total rent expense for 2018 and 2017 was approximately $452 thousand and $393 thousand, respectively. Future minimum rent on operating leases as of December 31, 2018 is as follows (in thousands): 2019 $ 609 2020 588 2021 541 2022 523 2023 533 Thereafter 958 Total $ 3,752 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Benefit Plans | (12) Employee Benefit Plans Equity Incentive Plan During 2015, the Company adopted the River Financial Corporation 2015 Equity Incentive Plan (the “2015 Equity Incentive Plan”). These Equity Incentive Plans were adopted to provide a means of enhancing and encouraging the recruitment and retention of individuals on whom the success of the Company depends. The 2015 Equity Incentive Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock unit awards, and restricted stock awards. A total of 300,000 shares were reserved for possible issuance under the 2015 Equity Incentive Plan. The maximum term of grants under the plan is ten years and the plan expires ten years after the adoption date. A summary of activity in the outstanding stock options for the years ended December 31, 2018 and 2017 is presented below: Weighted Average Weighted Remaining Average Contractual Range of Shares Exercise Price Term (years) Exercise Prices Outstanding at January 1, 2018 268,375 $ 14.77 5.87 Granted 85,500 26.89 Exercised (28,450 ) 11.16 Outstanding at December 31, 2018 325,425 $ 18.27 6.52 $8.40 to $27.00 Exercisable at December 31, 2018 150,525 $ 14.29 4.26 $8.40 to $27.00 Outstanding at January 1, 2017 267,425 $ 14.11 6.27 Granted 20,500 20.43 Exercised (19,550 ) 11.73 Outstanding at December 31, 2017 268,375 $ 14.77 5.87 $8.00 to $22.75 Exercisable at December 31, 2017 142,575 $ 13.28 3.98 $8.00 to $22.75 The total fair value of shares underlying the options which vested during the years ended December 31, 2018 and 2017, was $874 thousand and $951 thousand, respectively. The intrinsic value of options exercised during the years ended December 31, 2018 and 2017 was $365 thousand and $250 thousand, respectively. The aggregate intrinsic value of total options outstanding and exercisable options at December 31, 2018 was $1.86 million and $1.46 million, respectively. Cash received from options exercised for the year ended December 31, 2018 was $317 thousand. There was no income tax benefit recognized for the exercise of options for the years ended December 31, 2018 and 2017 as all options exercised were incentive stock options. As of December 31, 2017, unvested stock options totaled 125,800. During 2018, there were 85,500 stock options that were granted and 36,400 stock options that vested resulting in unvested stock options of 174,900 as of December 31, 2018. The stock options granted in 2018 and 2017 have a weighted average calculated value of $3.85 and $2.22, respectively. The dividend yield is the estimated dividend we expect to pay over the next four or five years. The expected life is calculated as the mid-point between the weighted-average time to vesting and the contractual maturity. The expected volatility is the approximate industry average for small bank and holding companies. The risk free interest rate is the U.S. Treasury rate on the day of the option grant for a term equal to the expected life of the option. The calculated value of each grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: 2018 2017 Dividend yield (after three years) 1.50 % 1.50 % Expected life in years 7 7 Expected volatility 10.00 % 10.00 % Risk free interest rate 3.05 % 2.07 % The Company recognized $68 thousand and $56 thousand in compensation expense related to performance share awards during 2018 and 2017, respectively. As of December 31, 2018, there was approximately $412 thousand of unrecorded compensation expense related to the performance share awards which is expected to be recognized over a weighted average period of 1.8 years. Defined Contribution Plan The Company provides a 401(k) employee stock ownership plan, which covers substantially all of the Company’s employees who are eligible, as to age and length of service. A participant may elect to make contributions up to $18,500 and $18,000 of the participant’s annual compensation in 2018 and 2017. The Company makes contributions up to 3% of each participant’s annual compensation and the Company matches 50% of the next 2% contributed by the employee. Contributions to the plan by Company were approximately $341 thousand and $306 thousand in 2018 and 2017, respectively. Outstanding shares of the Company’s common stock allocated to participants at December 31, 2018 and 2017 totaled 68,889 and 53,715 respectively, and there were no unallocated shares. These shares are treated as outstanding for purposes of calculating earnings per share and dividends on these shares are included in the Consolidated Statements of Stockholders’ Equity. The Company’s KSOP includes a put option for shares of the Company’s common stock distributed from the KSOP. Shares are distributed from the KSOP primarily to separated vested participants and certain eligible participants who elect to diversify their account balances. Since the Company’s common stock is not currently traded on an established securities market, if the owners of distributed shares desire to sell their shares, the Company is required to purchase the shares at fair value during two put option periods following the distribution of the shares from the KSOP. The first put option period is within sixty days following the distribution of the shares from the KSOP. The second put option period begins on the first day of the fifth month of the plan year for a sixty day period. The fair value of distributed shares subject to the put option totaled $0 as of December 31, 2018 and December 31, 2017. The cost of the KSOP shares totaled $1.37 million and $950 thousand as of December 31, 2018 and December 31, 2017, respectively. Due to the Company’s obligation under the put option, the distributed shares and KSOP shares are classified as temporary equity in the mezzanine section of the consolidated statements of financial condition and totaled $1.37 million and $950 thousand as of December 31, 2018 and December 31, 2017, respectively. The fair value of the KSOP shares totaled $1.65 million and $1.32 million as of December 31, 2018 and December 31, 2017, respectively. |
Stock Warrants
Stock Warrants | 12 Months Ended |
Dec. 31, 2018 | |
Warrants And Rights Note Disclosure [Abstract] | |
Stock Warrants | (13) Stock Warrants On December 31, 2015, the Company assumed the outstanding stock warrants of Keystone. These warrants were issued to the initial organizers of Keystone in 2007. At the time of the merger the warrants were converted under the terms of the merger. A total of 36,000 warrants were assumed with an exercise price of $8.00 per share. These warrants expired on March 1, 2017. During 2016, warrants for 29,750 shares were exercised. At December 31, 2016, the remaining 6,250 shares were vested and exercisable. During 2017, the remaining - warrants were exercised. There were no warrants exercised in 2018. None of the warrants have been forfeited. No compensation expense is required by accounting principles generally accepted in the United State of America to be recorded in connection with these stock warrants. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (14) Related Party Transactions The Company conducts transactions with its directors and executive officers, including companies in which such directors and executive officers have a beneficial interest, in the normal course of business. It is the Company’s policy to comply with federal regulations that require that loan and deposit transactions with directors and executive officers be made on substantially the same terms as those prevailing at the time for comparable loans and deposits to other persons. At December 31, 2018 and 2017, deposits from directors, executive officers and their related interests aggregated approximately $5.7 million and $4 million, respectively. These deposits were taken in the normal course of business at market interest rates. The following is a summary of activity for related party loans for 2018 and 2017 (in thousands): 2018 2017 Balance at beginning of year $ 8,369 $ 9,551 New loans 11,097 15,690 Repayments 14,145 16,872 Balance at end of year $ 5,321 $ 8,369 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Matters | (15) Regulatory Matters Banking regulations limit the amount of dividends that the Banks may pay without prior approval of the regulatory authorities. These restrictions are based on the level of regulatory classified assets, the prior years’ net earnings, and the ratio of equity capital to total assets. The Bank is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements. Under certain adequacy guidelines and the regulatory framework for prompt corrective action, specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices must be met. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. In July 2013, the federal bank regulatory agencies issued final rules implementing the Basel III regulatory capital framework as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The final rules took effect for the Bank on January 1, 2015, subject to a transition period for certain parts of the rules. The rules revise the minimum capital requirements and adjust the prompt corrective action thresholds applicable to financial institutions under the agencies’ jurisdiction. The rules revise the regulatory capital elements, add a new common equity Tier 1 capital ratio, increase the minimum Tier 1 capital ratio requirements, and implement a new capital conservation buffer. The rules also permit certain banking organizations to retain, through a one-time election, the existing treatment of accumulated other comprehensive income. The Bank has made the election to retain the existing treatment for accumulated other comprehensive income. The rules are intended to provide an additional measure of a bank’s capital adequacy by assigning weighted levels of risk to asset categories. Banks are also required to systematically maintain capital against such “off-balance sheet” activities as loans sold with recourse, loan commitments, guarantees, and standby letters of credit. These guidelines are intended to strengthen the quality of capital by increasing the emphasis on common equity and restricting the amount of loan loss reserves and other forms of equity, such as preferred stock, that may be included in capital. Certain items, such as goodwill and other intangible assets, are deducted from capital in arriving at the various regulatory capital measures, such as common equity Tier 1 capital, Tier 1 capital, and total risk-based capital. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of Total and Tier 1 Capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 Capital (as defined) to average assets (as defined). Management believes, as of December 31, 2018 and 2017, that the Bank meets all capital adequacy requirements to which it is subject. As of December 31, 2018 and 2017, the most recent notification from the regulators categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the Bank’s category. The following table presents the Bank’s capital amounts and ratios with the required minimum levels for capital adequacy purposes including the phase in of the capital conservation buffer under Basel III and minimum levels to be well capitalized (as defined) under the regulatory prompt corrective action regulations. The Bank’s actual capital amounts (in thousands) and ratios are also presented in the table below. As of December 31, 2018: Actual Required For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio Total Capital (To Risk-Weighted Assets) $ 115,721 14.253 % $ 80,174 >= 9.875% $ 81,189 >= 10.000% Common Equity Tier 1 Capital (To Risk- weighted Assets) 109,144 13.443 % 51,758 >= 6.375% $ 52,773 >= 6.500% Tier 1 Capital (To Risk-Weighted Assets) 109,144 13.443 % 63,936 >= 7.875% $ 64,951 >= 8.000% Tier 1 Capital (To Average Assets) 109,144 14.006 % 31,172 >= 4.000% $ 38,965 >= 5.000% As of December 31, 2017: Actual Required For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio Total Capital (To Risk-Weighted Assets) $ 89,604 14.325 % $ 57,859 >= 9.250% $ 62,551 >= 10.000% Common Equity Tier 1 Capital (To Risk- weighted Assets) 84,724 13.545 % 35,967 >= 5.750% $ 40,658 >= 6.500% Tier 1 Capital (To Risk-Weighted Assets) 84,724 13.545 % 45,349 >= 7.250% $ 50,040 >= 8.000% Tier 1 Capital (To Average Assets) 84,724 10.429 % 32,497 >= 4.000% $ 40,621 >= 5.000% |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosures | (16) Fair Value Measurements and Disclosures The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans, other real estate, and repossessed assets. These nonrecurring fair value adjustments typically involve application of the lower of cost or market accounting or write-downs of individual assets. Fair Value Hierarchy The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model- based valuation techniques for which all significant assumptions are observable in the market. Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Following is a description of valuation methodologies used for assets and liabilities recorded or disclosed at fair value. Cash and Cash Equivalents For disclosure purposes, for cash, due from banks, interest-bearing deposits, and federal funds sold, the carrying amount is a reasonable estimate of fair value. Certificates of Deposits in Banks For disclosure purposes, for certificates of deposits in banks, the carrying amount is a reasonable estimate of fair value. Securities Available-for-Sale Securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange and U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter market funds. Level 2 securities include mortgage-backed securities issued by government sponsored enterprises and municipal bonds. Securities classified as Level 3 include asset-backed securities in less liquid markets. Other Investments For disclosure purposes, the carrying amount of other investments approximates their fair value. Loans and Mortgage Loans Held-for-Sale The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. When a loan is identified as individually impaired, management measures impairment using one of three methods. These methods include collateral value, market value of similar debt, and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At December 31, 2018 and 2017, impaired loans were evaluated based on the fair value of the collateral. Impaired loans where an allowance is established based on the fair value of collateral, or loans that are charged down according to the fair value of collateral, require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price, the Company records the impaired loan as nonrecurring Level 2. When the fair value is based on an appraised value, the Company records the impaired loan as nonrecurring Level 3. For disclosure purposes, the fair value of fixed-rate loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For variable rate loans, the carrying amount is a reasonable estimate of fair value. Mortgage loans held-for-sale are carried at cost, which is a reasonable estimate of fair value. Bank Owned Life Insurance For disclosure purposes, the fair value of the cash surrender value of life insurance policies is equivalent to the carrying value. Accrued Interest Receivable For disclosure purposes, the fair value of the accrued interest on investments and loans is the carrying value. Foreclosed Assets Other real estate properties and miscellaneous repossessed assets are adjusted to fair value upon transfer of the loans to foreclosed assets. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price, the Company records the foreclosed asset as nonrecurring Level 2. When fair value is based on an appraised value or management’s estimate of value, the Company records the foreclosed asset as nonrecurring Level 3. Deposits For disclosure purposes, the fair value of demand deposits, interest-bearing demand deposits, money market accounts, and savings accounts is the amount payable on demand at the reporting date. The fair value of fixed-rate maturity certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. Accrued Interest Payable For disclosure purposes, the fair value of the accrued interest payable on deposits is the carrying value. Federal Home Loan Bank Advances For disclosure purposes, the fair value of the FHLB advances is based on the quoted value for similar remaining maturities provided by the FHLB. Federal Funds Purchased For disclosure purposes, the fair value of federal funds purchased is the carrying value. Note Payable For disclosure purposes, the fair value of the fixed rate note payable is the carrying value. Commitments to Extend Credit and Standby Letters of Credit Because commitments to extend credit and standby letters of credit are generally short-term and made using variable rates, the carrying value and estimated fair value associated with these instruments are immaterial. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017. There were no transfers between levels during 2018 or 2017 (in thousands). Fair Value Measurements At Reporting Date Using: Quoted Prices In Active Significant Markets For Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2018: Fair Value (Level 1) (Level 2) (Level 3) Securities available-for-sale: Residential mortgage -backed $ 104,933 $ - $ 104,933 $ - U.S. government agencies 63,922 - 63,922 - State, county, and municipal 57,160 - 57,160 - Corporate obligations 2,615 - 2,615 - Totals $ 228,630 $ - $ 228,630 $ - Fair Value Measurements At Reporting Date Using: Quoted Prices In Active Significant Markets For Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2017: Fair Value (Level 1) (Level 2) (Level 3) Securities available-for-sale: Residential mortgage -backed $ 122,972 $ - $ 122,972 $ - U.S. government agencies 12,999 - 12,999 - State, county, and municipal 55,501 - 55,501 - Corporate obligations 1,817 - 1,817 - Totals $ 193,289 $ - $ 193,289 $ - Assets Recorded at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table below as of December 31, 2018 and 2017 (in thousands). Fair Value Measurements At Reporting Date Using: Quoted Prices In Active Significant Markets For Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2018: Fair Value (Level 1) (Level 2) (Level 3) Impaired loans $ 3,782 $ - $ - $ 3,782 Foreclosed assets 496 - - 496 Totals $ 4,278 $ - $ - $ 4,278 Fair Value Measurements At Reporting Date Using: Quoted Prices In Active Significant Markets For Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2017: Fair Value (Level 1) (Level 2) (Level 3) Impaired loans $ 4,654 $ - $ - $ 4,654 Foreclosed assets 1,546 - - 1,546 Totals $ 6,200 $ - $ - $ 6,200 The Company has estimated the fair values of these assets using Level 3 inputs, specifically the appraised value of the collateral. Impaired loan balances represent those collateral dependent impaired loans where management has estimated the credit loss by comparing the loan’s carrying value against the expected realizable fair value of the impaired loan for the amount of the credit loss. The Company had no Level 3 assets measured at fair value on a recurring basis at December 31, 2018 or 2017. For Level 3 assets measured at fair value on a non-recurring basis as of December 31, 2018 and 2017 for the valuation technique, we used appraisals. For the significant unobservable input, we used appraisal discounts and the weighted average input of 15-20% was used. This is for years ended December 31, 2018 and 2017. The estimated fair values and related carrying values of the Company’s financial instruments at December 31, 2018 and 2017 were as follows (amounts in thousands): Estimated Fair Value Carrying December 31, 2018: Amount Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 47,507 $ 47,507 $ - $ - Certificates of deposit in banks 6,166 - 6,166 - Securities available-for-sale 228,630 - 228,630 - Restricted equity securities 1,941 - - 1,941 Loans receivable 704,685 - 699,076 3,782 Loans held for sale 2,619 - 2,619 - Bank owned life insurance 20,563 - 20,563 - Accrued interest receivable 3,260 - 3,260 - Financial liabilities: Deposits 898,707 - 861,683 - Accrued interest payable 462 - 462 Securities sold under agreements to repurchase 7,975 - 7,975 - Federal Home Loan Bank advances 20,000 19,999 Federal funds purchased - - Note payable 26,963 - 26,963 - Estimated Fair Value Carrying December 31, 2017: Amount Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 15,558 $ 15,558 $ - $ - Certificates of deposit in banks 5,214 - 5,214 - Securities available-for-sale 193,289 - 193,289 - Restricted equity securities 1,259 - - 1,259 Loans receivable 542,240 - 536,701 4,654 Loans held for sale 3,858 - 3,858 - Bank owned life insurance 19,991 - 19,991 - Accrued interest receivable 2,499 - 2,499 - Financial liabilities: Deposits 699,861 - 675,871 - Accrued interest payable 121 121 Securities sold under agreements to repurchase 13,865 - 13,865 - Federal Home Loan Bank advances 10,000 9,997 Federal funds purchased 1,153 - 1,153 - Note payable 5,357 5,357 Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include mortgage banking operations, deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
River Financial Corporation (Pa
River Financial Corporation (Parent Company Only) Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
River Financial Corporation (Parent Company Only) Financial Information | (17) River Financial Corporation (Parent Company Only) Financial Information STATEMENTS OF FINANCIAL CONDITION (in thousands) December 31, 2018 2017 Assets Cash $ 10,130 $ 1,619 Investment in River Bank & Trust 128,452 93,593 Deferred income taxes 4 9 Other assets 180 91 Total assets $ 138,766 $ 95,312 Liabilities Note payable $ 26,963 $ 5,357 Accrued expenses 327 6 Total liabilities 27,290 5,363 Common stock related to 401(k) Employee Stock Option Plan 1,371 950 Stockholders' equity Common stock 5,692 5,114 Additional paid in capital 79,604 64,935 Retained earnings 29,460 22,388 Accumulated other comprehensive loss (3,167 ) (2,116 ) Treasury stock, at cost (113 ) (372 ) Common stock related to 401(k) Employee Stock Option Plan (1,371 ) (950 ) Total stockholders' equity 110,105 88,999 Total equity 111,476 89,949 Total liabilities and stockholders' equity $ 138,766 $ 95,312 STATEMENTS OF INCOME (in thousands) Year Ended December 31, 2018 2017 Cash dividends from River Bank & Trust $ 3,750 $ 2,250 Other income 22 - Total income 3,772 2,250 Interest expense - note payable 485 249 Legal and other professional fees 394 101 Data processing expense 77 4 Stockholders' meeting expense 12 11 Other expenses 61 10 Total expenses 1,029 375 Net income before tax benefit 2,743 1,875 Applicable income tax benefit (182 ) (134 ) Net income before undistributed net income of River Bank & Trust 2,925 2,009 Equity in undistributed net income of River Bank & Trust 5,581 6,286 Net income $ 8,506 $ 8,295 STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31, 2018 2017 Net income $ 8,506 $ 8,295 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of River Bank & Trust (5,581 ) (6,286 ) Deferred income tax 5 7 (Increase) decrease in operating assets and (decrease) increase in operating liabilities: Other assets (89 ) 26 Accrued expenses and other liabilities 321 5 Net cash provided by operating activities 3,162 2,047 Cash Flows used for investing activities: Net cash received in acquisition 241 - Payments to Peoples Southern Bank shareholders (24,497 ) - Net cash used in investing activities (24,256 ) - Cash flow from financing activities: Proceeds from note payable 27,000 - Payments on note payable (5,394 ) (1,071 ) Proceeds from exercise of common stock options and warrants 317 263 Proceeds from issuance of common stock 8,832 85 Purchase of treasury stock (146 ) (579 ) Sale of treasury stock 430 281 Cash dividends (1,434 ) (1,272 ) Net cash provided by (used in) financing activities 29,605 (2,293 ) Net change in cash 8,511 (246 ) Cash at beginning of year 1,619 1,865 Cash at end of year $ 10,130 $ 1,619 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | (18) Goodwill and Intangible Assets At the close of business on October 31, 2018, the Company recorded goodwill of $8.2 million associated with the PSB merger. In addition to the goodwill recorded for the PSB merger, the Company recorded a core deposit intangible asset of approximately $4.65 million. The core deposit intangible asset is amortized using an accelerated method over ten years from the date of the merger. Amortization expense of $153 thousand was recorded in 2018. At the close of business December 31, 2015, the Company recorded goodwill of $9.41 million associated with the Keystone merger. During 2016, an adjustment of $640 thousand was made to increase the amount of goodwill. The adjustment was made to the value of stock options and warrants assumed in the Keystone merger. The adjustments were made following the Company’s review of additional information that existed at the time of the merger. The adjustment to goodwill increased shareholders’ equity $640 thousand. In addition to the goodwill recorded for Keystone, the Company recorded a core deposit intangible asset of approximately $2.8 million. The core deposit intangible asset is amortized using an accelerated method over eight years from the date of the merger. Amortization expense of $474 thousand and $559 thousand was recorded in 2018 and 2017, respectively. Changes to the carrying amount of goodwill for the years ended December 31, 2018 and 2017 are provided in the following table. 2018 2017 Balance at beginning of year $ 10,050 $ 10,050 Goodwill from current year PSB acquisition 8,243 Balance at end of year $ 18,293 $ 10,050 A summary of core deposit intangible assets as of December 31, 2018 and 2017 is set forth below. 2018 2017 Gross carrying amount $ 7,413 $ 2,763 Less: accumulated amortization (1,830 ) (1,203 ) Net carrying amount $ 5,583 $ 1,560 Estimated amortization expenses related to the core deposit intangible assets for the next five years are as follows: Keystone PSB Total 2019 $ 388 $ 865 $ 1,253 2020 303 772 1,075 2021 217 680 897 2022 132 588 720 2023 46 496 542 Afterward 1,096 1,096 $ 1,086 $ 4,497 $ 5,583 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of River Financial Corporation (the “Company”) and its wholly-owned banking subsidiary, River Bank and Trust (“RB&T”, the “Bank”). All material intercompany accounts and transactions have been eliminated in consolidation. The Bank provides a full range of commercial and consumer banking services in Alabama, including metropolitan Montgomery, Lee County, Autauga County, Elmore County, Tallapoosa County, Chilton County, Mobile County, Baldwin County, and Etowah County in Alabama. RB&T is primarily regulated by the Federal Deposit Insurance Corporation (“FDIC”) and the Alabama Banking Department. The Bank undergoes periodic examinations by these regulatory agencies. The Company is regulated by the Federal Reserve Bank (“FRB”) and is also subject to periodic examinations. The accounting principles followed by the Company, and the method of applying these principles, conform with accounting principles generally accepted in the United States of America (“GAAP”) and with general practices within the banking industry. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts in the consolidated financial statements. Actual results could differ significantly from those estimates. Material estimates common to the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for loan losses, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, and valuation allowances associated with the realization of deferred tax assets, which are based on future taxable income. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents include amounts due from banks, interest-bearing deposits with the Federal Reserve Bank of Atlanta (“FRB”), Federal Home Loan Bank (“FHLB”), correspondent banks, and federal funds sold. Generally, federal funds are sold for one-day periods. The Company is required to maintain average reserve balances with the FRB or in cash. At December 31, 2018 and 2017, the Company’s reserve requirements were approximately $2.39 million and $2.43 million, respectively. |
Investment Securities | Investment Securities The Company classifies its securities in one of three categories: trading, available-for-sale, or held-to-maturity. Trading securities are bought and held principally for the purpose of selling them in the near term. Held-to-maturity securities are those securities that the Company has the ability and intent to hold until maturity. All securities not included in trading or held-to- maturity are classified as available-for-sale. At December 31, 2018 and 2017, all securities are classified as available-for-sale. Available-for-sale securities are recorded at fair value. Held-to-maturity securities are recorded at cost, adjusted for the amortization or accretion of premiums or discounts. Unrealized holding gains and losses, net of the related tax effect, on securities available-for-sale are excluded from earnings and are reported as a separate component of shareholders’ equity until realized. Transfers of securities between categories are recorded at fair value at the date of transfer. Management evaluates investment securities for other-than-temporary impairment on a quarterly basis. A decline in the market value of any investment below cost that is deemed other- than-temporary is charged to earnings for the decline in value deemed to be credit related and a new cost basis in the security is established. The decline in value attributed to non-credit related factors is recognized in other comprehensive income (loss). Premiums and discounts are amortized or accreted over the life of the related securities as adjustments to the yield. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. |
Other Investments | Other Investments Other investments include FRB stock, FHLB stock and other investments that do not have a readily determinable market value. These investments are carried at cost, which approximates fair value. |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans are stated at the principal amount outstanding, net of the allowance for loan losses and unearned fees. Interest on loans is recognized as income based upon the applicable rate applied to the daily outstanding principal balance using the simple interest method. The past due or delinquency status of a loan is determined based on contractual payment terms. Nonrefundable loan fees and costs incurred for loans are generally deferred and recognized in income over the life of the loans. A loan is considered impaired when, based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, at the loan’s observable market price, or at the fair value of the collateral of the loan if the loan is collateral dependent. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions and collection efforts that the borrower’s financial condition is such that collection of interest is doubtful. When a loan is placed on nonaccrual status, previously accrued and uncollected interest is charged to interest income on loans. Generally, payments on nonaccrual loans are applied to principal. When a borrower has demonstrated the capacity to service the debt for a reasonable period of time, management may elect to resume the accrual of interest on the loan. All other loans are deemed to be unimpaired and are grouped into various homogeneous risk pools utilizing regulatory reporting classifications. The Bank’s historical loss factors are calculated for each of these risk pools based on the net losses experienced as a percentage of the average loans outstanding. The time periods utilized in these historical loss factor calculations are subjective and vary according to management’s estimate of the impact of current economic cycles. As every loan has a risk of loss, minimum loss factors are estimated based on long term trends for the Bank, the banking industry, and the economy. The greater of the calculated historical loss factors or the minimum loss factors are applied to the unimpaired loan amounts currently outstanding for the risk pool and included in the analysis of the allowance for loan losses. In addition, certain qualitative adjustments may be included by management as additional loss factors applied to the unimpaired loan risk pools. These adjustments may include, among other things, changes in loan policy, loan administration, loan, geographic, or industry concentrations, loan growth rates, and experience levels of our lending officers. The loss allocations for specifically impaired loans, smaller impaired loans not specifically measured for impairment, and unimpaired loans are totaled to determine the total required allowance for loan losses. This total is compared to the current allowance on the Bank’s books and adjustments made accordingly by a charge or credit to the provision for loan losses. The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes that the collectibility of the principal is unlikely. The allowance represents an amount which, in management’s judgment, will be adequate to absorb probable losses on existing loans that may become uncollectible. Management assesses the adequacy of its allowance for loan losses at the end of each calendar quarter. Management’s judgment in determining the adequacy of the allowance is based on evaluations of the collectibility of loans. These evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio, current economic conditions that may affect the borrower’s ability to pay, overall portfolio quality, and review of specific problem loans. Management believes that the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on judgments that are different than those of management. |
Concentrations of Credit Risk | Concentrations of Credit Risk The Company originates primarily commercial, commercial real estate, residential real estate, and consumer loans to customers in its primary market areas in Alabama listed above. The ability of the majority of the Company’s customers to honor their contractual loan obligations is dependent on the economy in these areas. Seventy-seven percent of the Company’s loan portfolio is secured by real estate, of which the majority is secured by real estate in the Company’s market areas. The Company, according to regulatory restrictions, may not generally extend credit to any single borrower or group of related borrowers on a secured basis in excess of 20% of capital, as defined, or $22.1 million, or on an unsecured basis in excess of 10% of capital, as defined, or $11 million . However, the Company has established internal policies that may further limit the extension of credit to any single borrower or group of related borrowers depending on their credit worthiness. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, i.e. put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Mortgage Loans Held-for-Sale | Mortgage Loans Held-for-Sale Mortgage loans held-for-sale are carried at the lower of aggregate cost or estimated market value. Gains and losses on loans held-for-sale are included in the determination of income for the period in which the sales occur. At December 31, 2018 and 2017, the cost of loans held-for-sale approximates the market value. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Major additions and improvements are charged to the property accounts while replacements, maintenance and repairs that do not improve or extend the life of the respective assets are expensed currently. When property is retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss, if any, is recognized. Depreciation expense is computed using the straight-line method over the following estimated useful lives. The useful estimated useful life for buildings is generally 40 years. The estimated useful life for furniture and equipment is generally 3-25 years. |
Other Real Estate Owned And Repossessed Assets | Other Real Estate and Repossessed Assets Other real estate represents properties acquired through or in lieu of loan foreclosure and is initially recorded at fair value less estimated disposal costs. Costs of improvements are capitalized, whereas costs relating to holding other real estate and valuation adjustments are expensed. Revenue and expenses from operations and changes in valuation allowance are included in net expenses from other real estate. |
Business Combinations | Business Combinations The Company accounts for business combinations under the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of cost over the fair value of the net assets purchased in business combinations. Goodwill is required to be tested annually for impairment or whenever events occur that may indicate that the recoverability of the carrying amount is not probable. In the event of impairment, the amount by which the carrying amount exceeds the fair value is charged to earnings. The Company performs its annual test for impairment in the fourth quarter of each year. Intangible assets consist of core deposit premiums acquired in connection with business combinations and are based on the established value of acquired customer deposits. The core deposit premium is initially recognized based on a valuation performed as of the consummation date and is amortized over an estimated useful life of three to ten years. Amortization periods are reviewed annually in connection with the annual impairment testing of goodwill. |
Purchased Loans | Purchased Loans Purchased loans acquired in a business combination are recorded at estimated fair value on their purchase date. When the loans have evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect all contractually required principal and interest payments, the difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the non-accretable difference. The Company must estimate expected cash flows at each reporting date. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent increases in expected cash flows result in a reversal of the provision for loan losses to the extent of prior provisions and adjustment to accretable discount if no prior provisions have been made. This increase in accretable discount will have a positive impact on interest income. In addition, purchased loans without evidence of credit deterioration are also handled under this method. |
Income Taxes | Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Any interest and penalties incurred in connection with income taxes are recorded as a component of other operating expenses in the consolidated financial statements. In the event the future tax consequences of differences between the financial reporting bases and the tax bases of the assets and liabilities results in deferred tax assets, an evaluation of the probability of being able to realize the future benefits indicated by such asset is required. A valuation allowance is provided for the portion of the deferred tax asset when it is more likely than not that some portion or all of the deferred tax asset will not be realized. In assessing the realizability of the deferred tax assets, management considers the scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies. The Company currently evaluates income tax positions judged to be uncertain. A loss contingency reserve is accrued if it is probable that the tax position will be challenged, it is probable that the future resolution of the challenge will confirm that a loss has been incurred, and the amount of such loss can be reasonably estimated. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for its stock-based compensation plans using a fair value-based method of accounting, whereby compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income At December 31, 2018 and 2017, accumulated other comprehensive income (loss) consisted of net unrealized gains (losses) on investment securities available-for-sale. |
Revenue Recognition | Revenue Recognition Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. Service Charges and Fees - these represent general service fees for monthly account maintenance and activity or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when the Company’s performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed. Payment for such performance obligations are generally received at the time the performance obligations are satisfied. Investment Brokerage Revenue - retail brokerage fees are received from a third party broker-dealer, for which the Company acts as an agent, as part of a revenue-sharing agreement for fees earned from customers that are referred to the third party. These fees are for transactional and advisory services and are paid by the third party on a monthly or quarterly basis and recognized ratably throughout the quarter as the Company’s performance obligation is satisfied. Bank Card Fees – bank card related fees primarily includes interchange income from client use of consumer and business debit cards. Interchange income is a fee paid by a merchant bank to the card-issuing bank through the interchange network. Interchange fees are set by the credit card associations and are based on cardholder purchase volumes. The Company records interchange income as transactions occur. This income is included in other noninterest income on the consolidated statements of income. Gains and Losses from the Sale of Bank Owned Property – the performance obligation in the sale of other real estate owned typically will be the delivery of control over the property to the buyer. If the Company is not providing the financing of the sale, the transaction price is typically identified in the purchase and sale agreement. However, if the Company provides seller financing, the Company must determine a transaction price, depending on if the sale contract is at market terms and taking into account the credit risk inherent in the arrangement. Other non-interest income primarily includes items such as mortgage banking fees (gains from the sale of residential mortgage loans held for sale), bank-owned life insurance, and safe deposit box fees none of which are subject to the requirements of ASC 606. The Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affects the determination of the amount and timing of revenue from the above-described contracts with clients. |
Net Earnings per Common Share | Net Earnings per Common Share Basic earnings per common share are computed by dividing net income by the weighted-average number of shares of common stock outstanding during the year. Diluted earnings per common share are computed by dividing net income by the effect of the issuance of potential common shares that are dilutive and by the sum of the weighted-average number of shares of common stock outstanding. Anti-dilutive potential common shares are excluded from the diluted earnings per share computation. At December 31, 2018 and 2017, there were no antidilutive potential common shares. The reconciliation of the components of basic and diluted earnings per share is as follows (amounts in thousands, except per share amounts): For the Year Ended December 31, 2018 2017 Net income available to common shareholders $ 8,506 $ 8,295 Weighted average common shares outstanding 5,217,348 5,095,305 Dilutive effect of stock options 93,726 84,797 Diluted common shares 5,311,074 5,180,102 Basic earnings per common share $ 1.63 $ 1.63 Diluted earnings per common share $ 1.60 $ 1.60 |
Segment Reporting | Segment Reporting ASC Topic 280 “Segment Reporting,” provides for the identification of reportable segments on the basis of distinct business units and their financial information to the extent such units are reviewed by an entity’s chief decision maker (which can be an individual or group of management persons). ASC Topic 280 permits aggregation or combination of segments that have similar characteristics. In the Company’s operations, each bank branch is viewed by management as being a separately identifiable business or segment from the perspective of monitoring performance and allocation of financial resources. Although the branches operate independently and are managed and monitored separately, each is substantially similar in terms of business focus, type of customers, products, and services. Accordingly, the Company’s consolidated financial statements reflect the presentation of segment information on an aggregated basis in one reportable segment. |
Reclassifications | Reclassifications Certain 2017 amounts have been reclassified to conform to the presentation used in 2018. These reclassifications had no material effect on the operations, financial condition or cash flows of the Company. |
Advertising | Advertising Advertising costs are expensed as incurred. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This will require lessees to recognize assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right of use asset representing its right to use the underlying asset for lease term. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2018. The amendment should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. We conducted a review of our existing lease contracts and recorded a gross-up of our balance sheet of approximately $2.2 million as a result of recognizing lease liabilities and corresponding right of use assets for operating leases upon adoption as of January 1, 2019. The adoption of this guidance will not result in material changes to the recognition of operating lease expense. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new guidance will apply to most financial assets measured at amortized cost and certain other instruments including loans, debt securities held to maturity, net investments in leases and off-balance-sheet credit exposures. The guidance will replace the current incurred loss accounting model that delays recognition of a loss until it is probable a loss has been incurred with an expected loss model that reflects expected credit losses based upon a broader range of estimates including consideration of past events, current conditions and supportable forecasts. The guidance also eliminates the current accounting model for purchased credit impaired loans and debt securities. For securities available for sale, credit losses are to be recognized as allowances rather than reductions in the amortized cost of the securities, which will require re-measurement of the related allowance at each reporting period. The guidance includes enhanced disclosure requirements intended to help financial statement users better understand estimates and judgments used in estimating credit losses. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Our implementation efforts continued throughout 2018, assessing credit loss forecasting models and processes against the new guidance. In the first quarter of 2019 we will begin running the expected loss model along with our current model. While we continue to evaluate the impact the new guidance will have on our financial position and results of operations, we currently expect the new guidance may result in an increase to our allowance for credit losses given the change to estimated losses over the contractual life of the loan portfolio. The amount of any change to our allowance is still under review and will depend, in part, upon the composition of our loan portfolio at the adoption date as well as economic conditions and loss forecasts at that date. I n January 2017, FASB issued ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 simplifies the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. In computing the implied fair value of goodwill under Step 2, an entity, prior to the amendments in ASU 2017-04, had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities, including unrecognized assets and liabilities, in accordance with the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. However, under the amendments in ASU 2017-04, an entity should (1) perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and (2) recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, with the understanding that the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, ASU 2017-04 removes the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test. ASU 2017-04 is effective prospectively for annual, or any interim, goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company adopted ASU 2017-04 in 2017 and based on the Company’s annual goodwill impairment test performed as of December 31, 2017 and 2018 under ASU 2017-04, the fair value of its reporting units exceeded the carrying value and, therefore, the related goodwill was not impaired. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities. The amendments shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The amendments should be applied on a modified retrospective basis, with a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company does not believe that this ASU will have an impact on its financial position or results of operations. In February 2018, FASB issued ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” ASU 2018-02 seeks to help entities reclassify certain stranded income tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act of 2017, enacted on December 22, 2017. ASU 2018-02 was issued in response to concerns regarding current guidance in GAAP that requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the reporting period that includes the enactment date, even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in other comprehensive income (loss), rather than net income, and as a result the stranded tax effects would not reflect the appropriate tax rate. The amendments of ASU 2018-02 allow an entity to make a reclassification from accumulated other comprehensive income (loss) to retained earnings for the stranded tax effects, which is the difference between the historical corporate income tax rate of 34% and the newly enacted corporate income tax rate of 21%. ASU 2018-02 is effective for fiscal years beginning after December 31, 2018; however, public business entities are allowed to early adopt the amendments of ASU 2018-02. As a result of the re-measurement of the Company’s deferred tax assets following the enactment of the Tax Reform Act, accumulated other comprehensive loss included $333 thousand of stranded tax effects at December 31, 2017. The Company early adopted the amendments of 2018-02 as of December 31, 2017 and made the election to reclassify the stranded tax effects from accumulated other comprehensive loss to retained earnings at December 31, 2017. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Components of the Basic and Diluted Earnings Per Share | The reconciliation of the components of basic and diluted earnings per share is as follows (amounts in thousands, except per share amounts): For the Year Ended December 31, 2018 2017 Net income available to common shareholders $ 8,506 $ 8,295 Weighted average common shares outstanding 5,217,348 5,095,305 Dilutive effect of stock options 93,726 84,797 Diluted common shares 5,311,074 5,180,102 Basic earnings per common share $ 1.63 $ 1.63 Diluted earnings per common share $ 1.60 $ 1.60 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table presents the assets acquired and liabilities assumed of PSB as of October 31, 2018, at their fair value estimates (amounts in thousands, except per share data): As Recorded By Peoples Southern Bank Fair Value Adjustments As Recorded By Cash and cash equivalents $ 22,227 $ - $ 22,227 Bank owned certificates of deposit 3,449 (34 ) (a) 3,415 Investment securities 100,887 55 (b) 100,942 Loans, net of unearned income 55,934 (715 ) (c) 55,219 Allowance for loan losses (1,005 ) 1,005 (d) - Net loans 54,929 290 55,219 Premises and equipment, net 1,562 3,744 (e) 5,306 Deferred income taxes, net 215 (2,048 ) (f) (1,833 ) Core deposit intangible - 4,650 (g) 4,650 Other assets 1,211 - 1,211 Total assets $ 184,480 $ 6,657 $ 191,137 Noninterest-bearing deposits $ 112,524 $ - $ 112,524 Interest-bearing deposits 54,902 (30 ) (h) 54,872 Total deposits 167,426 (30 ) 167,396 Other liabilities 1,317 167 (i) 1,484 Total liabilities 168,743 137 168,880 Net identifiable assets acquired over liabilities assumed 15,737 6,520 22,257 Goodwill - 8,243 8,243 Net assets acquired over liabilities assumed $ 15,737 $ 14,763 $ 30,500 (a) Adjustment reflects the fair value adjustment of the certificates of deposit in banks at acquisition date. (b) Adjustment reflects the fair value adjustment of the available-for-sale portfolio at acquisition date. (c) Adjustment reflects the fair value adjustment of the acquired loan portfolio at the acquisition date. (d) Adjustment reflects the elimination of PSB's allowance for loan losses. (e) Adjustment reflects the fair value adjustment on PSB's offices. (f) Adjustment reflects the recording of the net deferred tax asset (liability) created by the purchase adjustments. (g) Adjustment reflects the recording of the core deposit intangible asset. (h) Adjustment reflects the fair value adjustment of the time deposits at acquisition date. (i) Adjustment reflects the fair value adjustment for other liabilities. Consideration: Number of shares of PSB common stock outstanding at October 31, 2018 3,706 Per share exchange ratio 60 Number of shares of RFC common stock issued 222,360 RFC common stock price per share on October 31, 2018 $ 27 Fair value of RFC common stock issued $ 6,003 Number of shares of PSB common stock outstanding at October 31, 2018 3,706 Cash consideration each PSB share is entitled to receive $ 6,610 Total cash consideration (in thousands) $ 24,497 Total stock consideration (in thousands) $ 6,003 Total cash consideration (in thousands) 24,497 Total purchase price for PSB (in thousands) $ 30,500 |
Summary of Unaudited Pro Forma Information | The following unaudited supplemental pro forma information is presented to show estimated results assuming PSB was acquired as of the beginning of the earliest period presented. These unaudited pro forma results are not necessarily indicative of the operating results the Company would have achieved had it completed the acquisition as of January 1, 2017 and should not be considered as representative of future operating results (amounts in thousands). For The Year Ended December 31, 2017 Net interest income - pro forma (unaudited) $ 34,521 Net earnings - pro forma (unaudited) $ 9,219 Diluted earnings per common share - pro forma (unaudited) $ 1.71 |
Summary of Loans at Acquisition Date Fair Value | Loans at the acquisition date are presented in the following table at fair value (amounts in thousands). Acquired Impaired Loans Acquired Performing Loans Total Acquired Loans Residential real estate $ 342 $ 19,092 $ 19,434 Commercial real estate 463 13,521 13,984 Construction and land development 158 4,140 4,298 Commercial 2 11,194 11,196 Consumer 95 6,212 6,307 Total loans $ 1,060 $ 54,159 $ 55,219 |
Summary of Loans at Acquisition Date Gross Contractual Amount Receivable | Loans at the acquisition date are presented in the following table at the gross contractual amount receivable (amounts in thousands). Acquired Impaired Loans Acquired Performing Loans Total Acquired Loans Residential real estate $ 388 $ 19,122 $ 19,510 Commercial real estate 669 13,656 14,325 Construction and land development 202 4,172 4,374 Commercial 2 11,339 11,341 Consumer 99 6,285 6,384 Total loans $ 1,360 $ 54,574 $ 55,934 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Securities Available for Sale | Investment securities available-for-sale at December 31, 2018 and 2017 are as follows (amounts in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2018: Securities available-for-sale: Residential mortgage-backed $ 108,915 $ 45 $ (4,027 ) $ 104,933 U.S. govt. sponsored enterprises 63,833 367 (278 ) 63,922 State, county, and municipal 57,417 219 (476 ) 57,160 Corporate debt obligations 2,670 7 (62 ) 2,615 Totals $ 232,835 $ 638 $ (4,843 ) $ 228,630 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2017: Securities available-for-sale: Residential mortgage-backed $ 125,768 $ 23 $ (2,819 ) $ 122,972 U.S. govt. sponsored enterprises 13,176 8 (185 ) 12,999 State, county, and municipal 55,339 511 (349 ) 55,501 Corporate debt obligations 1,831 11 (25 ) 1,817 Totals $ 196,114 $ 553 $ (3,378 ) $ 193,289 |
Schedule of Details Concerning Investment Securities with Unrealized Losses | Details concerning investment securities with unrealized losses as of December 31, 2018 and 2017 are as follows (amounts in thousands): Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2018: Securities available-for-sale: Residential mortgage-backed $ 6,003 $ 27 $ 88,502 $ 4,000 $ 94,505 $ 4,027 U.S. govt. sponsored enterprises 9,786 13 8,116 265 17,902 278 State, county & municipal 19,043 149 13,880 327 32,923 476 Corporate debt obligations 516 3 332 59 848 62 Totals $ 35,348 $ 192 $ 110,830 $ 4,651 $ 146,178 $ 4,843 December 31, 2017: Securities available-for-sale: Residential mortgage-backed $ 43,811 $ 445 $ 75,046 $ 2,374 $ 118,857 $ 2,819 U.S. govt. sponsored enterprises 8,630 60 3,698 125 12,328 185 State, county & municipal 14,535 130 14,559 219 29,094 349 Corporate debt obligations 1,000 - 355 25 1,355 25 Totals $ 67,976 $ 635 $ 93,658 $ 2,743 $ 161,634 $ 3,378 |
Schedule of Proceeds and Gross Gains and Gross Losses from Sales of Securities Available-for-Sale | The proceeds and gross gains and gross losses from sales of securities available-for-sale for the years ended December 31, 2018 and 2017 are as follows (in thousands): Year ended December 31: 2018 2017 Realized Gains (Losses)-Securities Sales: Gross gains $ 381 $ 63 Gross losses (429 ) (58 ) Investment securities gains (losses), net $ (48 ) $ 5 Proceeds from sales of investment securities $ 59,907 $ 13,251 |
Schedule of Amortized Cost and Estimated Fair value of Securities Available-for-Sale | The amortized cost and estimated fair value of securities available-for-sale at December 31, 2018, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value Securities available-for-sale Less than 1 year $ 17,094 $ 17,092 1 to 5 years 55,924 56,000 5 to 10 years 23,597 23,733 After 10 years 27,305 26,872 123,920 123,697 Residential mortgage-backed securities 108,915 104,933 Totals $ 232,835 $ 228,630 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | |
Schedule of Major Classifications of Loans | Major classifications of loans at December 31, 2018 and 2017 are summarized as follows (in thousands): December 31, 2018 December 31, 2017 Amount % of Total Amount % of Total Residential real estate: Closed-end 1-4 family - first lien $ 162,249 23.0 % $ 115,776 21.4 % Closed-end 1-4 family - junior lien 5,739 0.8 % 4,969 0.9 % Multi-family 16,938 2.4 % 16,977 3.1 % Total residential real estate 184,926 26.2 % 137,722 25.4 % Commercial real estate: Nonfarm nonresidential 209,391 29.7 % 173,443 32.0 % Farmland 10,417 1.5 % 7,782 1.4 % Total commercial real estate 219,808 31.2 % 181,225 33.4 % Construction and land development: Residential 39,680 5.6 % 25,830 4.8 % Other 62,430 8.9 % 40,734 7.5 % Total construction and land development 102,110 14.5 % 66,564 12.3 % Home equity lines of credit 39,040 5.5 % 35,833 6.6 % Commercial loans: Other commercial loans 112,927 16.0 % 95,896 17.7 % Agricultural 1,743 0.2 % 1,581 0.3 % State, county, and municipal loans 19,756 2.9 % 8,332 1.5 % Total commercial loans 134,426 19.1 % 105,809 19.5 % Consumer loans 33,867 4.8 % 23,231 4.3 % Total gross loans 714,177 101.3 % 550,384 101.5 % Allowance for loan losses (6,577 ) -0.9 % (4,881 ) -0.9 % Net deferred loan fees and discounts (2,915 ) -0.4 % (3,263 ) -0.6 % Net loans $ 704,685 100.0 % $ 542,240 100.0 % |
Summary of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method | The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2018 and 2017 (amounts in thousands). Real Estate Mortgage Loans Allowance for Loan Losses Residential Commercial Construction and Land Development Home Equity Lines Of Credit Commercial Consumer Total Balance - December 31, 2017 $ 1,167 $ 1,604 $ 606 $ 333 $ 954 $ 217 $ 4,881 Provision for loan losses 438 453 298 69 566 136 1,960 Loan charge-offs (41 ) (109 ) - (20 ) (284 ) (48 ) (502 ) Loan recoveries 15 13 38 12 139 21 238 Balance - December 31, 2018 $ 1,579 $ 1,961 $ 942 $ 394 $ 1,375 $ 326 6,577 Ending balance: Individually evaluated for impairment $ 507 $ 54 $ 8 $ - $ 143 $ 13 $ 725 Collectively evaluated for impairment $ 1,072 $ 1,907 $ 934 $ 394 $ 1,232 $ 313 $ 5,852 Loans: Individually evaluated for impairment $ 2,008 $ 1,925 $ 158 $ 100 $ 262 $ 54 $ 4,507 Collectively evaluated for impairment $ 182,586 $ 217,445 $ 101,799 $ 38,940 $ 134,163 $ 33,726 $ 708,659 Acquired loans with deteriorated credit quality $ 332 $ 438 $ 153 $ - $ 1 $ 87 $ 1,011 Percent of loans in each category to total loans 25.9 % 30.8 % 14.3 % 5.5 % 18.8 % 4.7 % 100.0 % Real Estate Mortgage Loans Allowance for Loan Losses Residential Commercial Construction and Land Development Home Equity Lines Of Credit Commercial Consumer Total Balance - December 31, 2016 $ 602 $ 1,456 $ 731 $ 190 $ 829 $ 199 $ 4,007 Provision for loan losses 573 440 (112 ) 239 487 113 1,740 Loan charge-offs (32 ) (308 ) (24 ) (100 ) (466 ) (109 ) (1,039 ) Loan recoveries 24 16 11 4 104 14 173 Balance - December 31, 2017 $ 1,167 $ 1,604 $ 606 $ 333 $ 954 $ 217 $ 4,881 Ending balance: Individually evaluated for impairment $ 526 $ 187 $ 11 $ - $ 174 $ 10 $ 908 Collectively evaluated for impairment $ 641 $ 1,417 $ 595 $ 333 $ 780 $ 207 $ 3,973 Loans: Individually evaluated for impairment $ 2,611 $ 2,295 $ 168 $ 100 $ 301 $ 87 $ 5,562 Collectively evaluated for impairment $ 135,111 $ 178,930 $ 66,396 $ 35,733 $ 105,508 $ 23,144 $ 544,822 Percent of loans in each category to total loans 25.1 % 32.9 % 12.1 % 6.5 % 19.2 % 4.2 % 100.0 % |
Summary of Impaired Loans by Class of Loans | The following tables present impaired loans by class of loans as of December 31, 2018 and 2017 (amounts in thousands). December 31, 2018 Nonaccruing Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Impaired Allowance for Loan Losses Mortgage loans on real estate: Residential $ 1,519 $ 1,519 $ 118 $ 1,401 $ 505 Commercial real estate 423 142 142 - - Construction and land development - - - - - Total mortgage loans on real estate 1,942 1,661 260 1,401 505 Home equity lines of credit - - - - - Commercial loans 143 143 - 143 143 Consumer loans - - - - - Total Loans $ 2,085 $ 1,804 $ 260 $ 1,544 $ 648 Accruing Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Impaired Allowance for Loan Losses Mortgage loans on real estate: Residential $ 489 $ 489 $ 370 $ 119 $ 2 Commercial real estate 1,783 1,783 965 818 54 Construction and land development 221 158 - 158 8 Total mortgage loans on real estate 2,493 2,430 1,335 1,095 64 Home equity lines of credit 100 100 100 - - Commercial loans 119 119 119 - - Consumer loans 54 54 29 25 13 Total Loans $ 2,766 $ 2,703 $ 1,583 $ 1,120 $ 77 Total Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Impaired Allowance for Loan Losses Mortgage loans on real estate: Residential $ 2,008 $ 2,008 $ 488 $ 1,520 $ 507 Commercial real estate 2,206 1,925 1,107 818 54 Construction and land development 221 158 - 158 8 Total mortgage loans on real estate 4,435 4,091 1,595 2,496 569 Home equity lines of credit 100 100 100 - - Commercial loans 262 262 119 143 143 Consumer loans 54 54 29 25 13 Total Loans $ 4,851 $ 4,507 $ 1,843 $ 2,664 $ 725 December 31, 2017 Nonaccruing Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Impaired Allowance for Loan Losses Mortgage loans on real estate: Residential $ 1,767 $ 1,767 $ 350 $ 1,417 $ 526 Commercial real estate 500 328 328 - - Construction and land development - - - - - Total mortgage loans on real estate 2,267 2,095 678 1,417 526 Home equity lines of credit - - - - - Commercial loans - - - - - Consumer loans 204 54 54 - - Total Loans $ 2,471 $ 2,149 $ 732 $ 1,417 $ 526 Accruing Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Impaired Allowance for Loan Losses Mortgage loans on real estate: Residential $ 844 $ 844 $ 844 $ - $ - Commercial real estate 1,968 1,967 540 1,427 187 Construction and land development 232 168 - 168 11 Total mortgage loans on real estate 3,044 2,979 1,384 1,595 198 Home equity lines of credit 100 100 100 - - Commercial loans 300 301 127 174 174 Consumer loans 33 33 - 33 10 Total Loans $ 3,477 $ 3,413 $ 1,611 $ 1,802 $ 382 Total Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Impaired Allowance for Loan Losses Mortgage loans on real estate: Residential $ 2,611 $ 2,611 $ 1,194 $ 1,417 $ 526 Commercial real estate 2,468 2,295 868 1,427 187 Construction and land development 232 168 - 168 11 Total mortgage loans on real estate 5,311 5,074 2,062 3,012 724 Home equity lines of credit 100 100 100 - - Commercial loans 300 301 127 174 174 Consumer loans 237 87 54 33 10 Total Loans $ 5,948 $ 5,562 $ 2,343 $ 3,219 $ 908 |
Summary of Average Recorded Investment and Interest Income Recognized on Impaired Loans | The following table presents the average recorded investment in impaired loans and the interest income recognized on impaired loans in the years ended December 31, 2018 and 2017 by loan category (in thousands). Year Ended December 31, 2018 Year Ended December 31, 2017 Average Recorded Investment Interest Income Average Recorded Investment Interest Income Mortgage loans on real estate: Residential real estate $ 2,020 $ 23 $ 2,209 $ 50 Commercial real estate 2,117 92 3,027 80 Construction and land development 163 8 181 10 Total mortgage loans on real estate 4,300 123 5,417 140 Home equity lines of credit 100 6 100 6 Commercial loans 268 9 498 15 Consumer loans 60 3 116 1 Total Loans $ 4,728 $ 141 $ 6,131 $ 162 |
Schedule of Aging of Loans and Non-Accrual Loan | The following tables present the aging of the recorded investment in past due loans and non-accrual loan balances as of December 31, 2018 and 2017 by class of loans (amounts in thousands). Accruing Loans 30-89 Days 90+ Days Nonaccrual As of December 31, 2018 Current Past Due Past Due Loans Total Loans Mortgage loans on real estate: Residential $ 181,252 $ 1,528 $ 19 $ 2,127 $ 184,926 Commercial real estate 219,578 68 - 162 219,808 Construction and land development 101,993 23 - 94 102,110 Total mortgage loans on real estate 502,823 1,619 19 2,383 506,844 Home equity lines of credit 38,891 24 - 125 39,040 Commercial loans 134,066 217 - 143 134,426 Consumer loans 33,544 234 - 89 33,867 Total Loans $ 709,324 $ 2,094 $ 19 $ 2,740 $ 714,177 Accruing Loans 30-89 Days 90+ Days Nonaccrual As of December 31, 2017 Current Past Due Past Due Loans Total Loans Mortgage loans on real estate: Residential $ 134,565 $ 857 $ 410 $ 1,890 $ 137,722 Commercial real estate 180,826 - - 399 181,225 Construction and land development 66,275 221 - 68 66,564 Total mortgage loans on real estate 381,666 1,078 410 2,357 385,511 Home equity lines of credit 35,591 152 10 80 35,833 Commercial loans 105,081 728 - - 105,809 Consumer loans 22,906 175 1 149 23,231 Total Loans $ 545,244 $ 2,133 $ 421 $ 2,586 $ 550,384 |
Schedule of Risk Category of Loans by Class of Loans | Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be “Pass” rated loans. As of December 31, 2018 and 2017, and based on the most recent analyses performed, the risk category of loans by class of loans is as follows (amounts in thousands): Special As of December 31, 2018 Pass Mention Substandard Doubtful Total Mortgage loans on real estate: Residential $ 179,132 $ 2,435 $ 3,270 $ 89 $ 184,926 Commercial real estate 212,421 4,609 2,778 - 219,808 Construction and land development 101,612 49 449 - 102,110 Total mortgage loans on real estate 493,165 7,093 6,497 89 506,844 Home equity lines of credit 38,530 285 225 - 39,040 Commercial loans 131,449 2,612 343 22 134,426 Consumer loans 33,269 330 268 - 33,867 Total Loans $ 696,413 $ 10,320 $ 7,333 $ 111 $ 714,177 Special As of December 31, 2017 Pass Mention Substandard Doubtful Total Mortgage loans on real estate: Residential $ 132,914 $ 1,390 $ 3,418 $ - $ 137,722 Commercial real estate 175,208 4,238 1,779 - 181,225 Construction and land development 65,656 750 158 - 66,564 Total mortgage loans on real estate 373,778 6,378 5,355 - 385,511 Home equity lines of credit 35,580 14 203 36 35,833 Commercial loans 103,137 2,234 438 - 105,809 Consumer loans 22,865 58 308 - 23,231 Total Loans $ 535,360 $ 8,684 $ 6,304 $ 36 $ 550,384 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Schedule of Major Classifications of Premises and Equipment | Major classifications of premises and equipment as of December 31, 2018 and 2017 are summarized as follows (amounts in thousands): December 31, 2018 2017 Land and improvements $ 6,555 $ 6,123 Buildings and improvements 20,736 15,967 Leasehold improvements 678 658 Furniture, equipment, and vehicle 4,951 4,099 Total 32,920 26,847 Accumulated depreciation (6,093 ) (5,038 ) Premises and equipment, net $ 26,827 $ 21,809 |
Foreclosed Assets (Tables)
Foreclosed Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Real Estate And Foreclosed Assets [Abstract] | |
Summary of Foreclosed Assets Analysis | An analysis of foreclosed properties for the years ended December 31, 2018 and 2017 follows (in thousands). Year ended December 31, 2018 2017 Balance at beginning of year $ 1,546 $ 1,151 Transfers from loans 318 2,658 Foreclosed property sold (1,248 ) (2,118 ) Write-down of foreclosed property (120 ) (145 ) Balance at end of year $ 496 $ 1,546 |
Summary of Expenses Applicable to Foreclosed Assets | Expenses applicable to foreclosed assets for the years ended December 31, 2018 and 2017 include the following (amounts in thousands). Year ended December 31, 2018 2017 Net (gain) loss on sales of foreclosed assets $ 20 $ (72 ) Write-down of foreclosed property 120 145 Operating expenses, net of rental income 60 90 Total $ 200 $ 163 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Schedule of Major Classifications of Deposits | The following table sets forth the major classifications of deposits at December 31, 2018 and 2017 (in thousands): December 31, 2018 2017 Demand deposits, non-interest bearing $ 241,274 $ 185,171 Demand deposits, interest bearing 239,463 195,792 Money market accounts 200,143 153,732 Savings deposits 55,733 29,441 Time certificates of $250,000 or more 47,251 37,045 Other time certificates 114,843 98,680 Totals $ 898,707 $ 699,861 |
Schedule of Maturities of Certificate of Deposit | As of December 31, 2018, the scheduled maturities of certificates of deposit are as follows for certificates of deposit less than $250 thousand and for certificates of deposit (“CDs”) of $250 thousand or more (in thousands): CDs Less Than $250,000 2019 $ 83,811 2020 16,136 2021 7,553 2022 5,569 2023 1,774 Maturing after 2023 - Total $ 114,843 CDs $250,000 or more 2019 $ 34,089 2020 2,251 2021 5,835 2022 3,530 2023 1,546 Maturing after 2023 - Total $ 47,251 |
Federal Home Loan Bank and Ot_2
Federal Home Loan Bank and Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Federal Home Loan Banks [Abstract] | |
Schedule of Outstanding Advances from FHLB | At December 31, 2018, the Company had outstanding advances from the FHLB that are summarized as follows (in thousands): December 31, 2018: Advance Maturity Rate Rate Type $ 10,000 1/16/2019 2.44 % Fixed 10,000 1/28/2019 2.48 % Fixed $ 20,000 December 31, 2017: Advance Maturity Rate Rate Type $ 5,000 1/22/2018 1.26 % Fixed 5,000 2/12/2018 1.38 % Fixed $ 10,000 |
Summary of Principal Payments | Principal payments on the CenterState Bank loan are due as follows: 2019 $ 3,202 2020 3,400 2021 3,608 2022 3,830 2023 4,065 Afterward 8,858 Total $ 26,963 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense for the years ended December 31, 2018 and 2017 are as follows (in thousands): 2018 2017 Current $ 3,282 $ 3,360 Deferred (899 ) 281 Change in federal income tax rate 878 Total income tax expense $ 2,383 $ 4,519 |
Schedule of Difference Between Income Tax Expense and Amount Computed by Statutory Federal Income Tax Rate to Income Before Taxes | The difference between income tax expense and the amount computed by applying the statutory federal income tax rate to income before taxes for the years ended December 31, 2018 and 2017 is as follows (in thousands): 2018 2017 Net income before taxes $ 10,889 $ 12,814 Statutory federal tax rate 21 % 34 % Tax on income at statutory federal tax rate 2,287 4,357 Increase (decrease) resulting from: Federal income tax benefit of state income taxes (92 ) (156 ) Tax exempt income on loans (95 ) (82 ) Tax exempt income on investments (178 ) (384 ) Tax exempt income from bank-owned life insurance (120 ) (144 ) Tax exempt death benefits from bank-owned life insurance - (226 ) Nondeductible expenses 143 66 Change in federal income tax rate - 878 State income tax 438 460 Other - (250 ) Total $ 2,383 $ 4,519 |
Summary of Components of Deferred Taxes | The following summarizes the components of deferred taxes at December 31, 2018 and 2017 (in thousands). 2018 2017 Deferred tax assets: Loans and allowance for loan losses $ 1,937 $ 1,517 Accrued expenses 219 - Deferred compensation 600 282 Unrealized losses on investment securities available- for-sale 1,062 709 Other 485 497 Total deferred tax assets 4,303 3,005 Deferred tax liabilities: Core deposit intangible (1,400 ) (391 ) Depreciation (1,717 ) (602 ) Other (5 ) (35 ) Total deferred tax liabilities (3,122 ) (1,028 ) Net deferred income tax assets $ 1,181 $ 1,977 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments Whose Contract Amount Represents Credit Risk | Financial instruments whose contract amount represents credit risk at December 31, 2018 and 2017 were as follows (in thousands): 2018 2017 Commitments to extend credit $ 146,462 $ 142,878 Stand-by and performance letters of credit 5,412 2,268 Total $ 151,874 $ 145,146 |
Schedule of Future Minimum Rent on Operating Leases | Future minimum rent on operating leases as of December 31, 2018 is as follows (in thousands): 2019 $ 609 2020 588 2021 541 2022 523 2023 533 Thereafter 958 Total $ 3,752 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Activity in Outstanding Stock Options | A summary of activity in the outstanding stock options for the years ended December 31, 2018 and 2017 is presented below: Weighted Average Weighted Remaining Average Contractual Range of Shares Exercise Price Term (years) Exercise Prices Outstanding at January 1, 2018 268,375 $ 14.77 5.87 Granted 85,500 26.89 Exercised (28,450 ) 11.16 Outstanding at December 31, 2018 325,425 $ 18.27 6.52 $8.40 to $27.00 Exercisable at December 31, 2018 150,525 $ 14.29 4.26 $8.40 to $27.00 Outstanding at January 1, 2017 267,425 $ 14.11 6.27 Granted 20,500 20.43 Exercised (19,550 ) 11.73 Outstanding at December 31, 2017 268,375 $ 14.77 5.87 $8.00 to $22.75 Exercisable at December 31, 2017 142,575 $ 13.28 3.98 $8.00 to $22.75 |
Schedule of Stock Options Weighted Average Assumptions Using Black-Scholes Option Pricing Model | The calculated value of each grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: 2018 2017 Dividend yield (after three years) 1.50 % 1.50 % Expected life in years 7 7 Expected volatility 10.00 % 10.00 % Risk free interest rate 3.05 % 2.07 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Summary of Activity for Related Party Loans | The following is a summary of activity for related party loans for 2018 and 2017 (in thousands): 2018 2017 Balance at beginning of year $ 8,369 $ 9,551 New loans 11,097 15,690 Repayments 14,145 16,872 Balance at end of year $ 5,321 $ 8,369 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Summary of Bank's Actual Capital Amounts and Ratios | The Bank’s actual capital amounts (in thousands) and ratios are also presented in the table below. As of December 31, 2018: Actual Required For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio Total Capital (To Risk-Weighted Assets) $ 115,721 14.253 % $ 80,174 >= 9.875% $ 81,189 >= 10.000% Common Equity Tier 1 Capital (To Risk- weighted Assets) 109,144 13.443 % 51,758 >= 6.375% $ 52,773 >= 6.500% Tier 1 Capital (To Risk-Weighted Assets) 109,144 13.443 % 63,936 >= 7.875% $ 64,951 >= 8.000% Tier 1 Capital (To Average Assets) 109,144 14.006 % 31,172 >= 4.000% $ 38,965 >= 5.000% As of December 31, 2017: Actual Required For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio Total Capital (To Risk-Weighted Assets) $ 89,604 14.325 % $ 57,859 >= 9.250% $ 62,551 >= 10.000% Common Equity Tier 1 Capital (To Risk- weighted Assets) 84,724 13.545 % 35,967 >= 5.750% $ 40,658 >= 6.500% Tier 1 Capital (To Risk-Weighted Assets) 84,724 13.545 % 45,349 >= 7.250% $ 50,040 >= 8.000% Tier 1 Capital (To Average Assets) 84,724 10.429 % 32,497 >= 4.000% $ 40,621 >= 5.000% |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017. There were no transfers between levels during 2018 or 2017 (in thousands). Fair Value Measurements At Reporting Date Using: Quoted Prices In Active Significant Markets For Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2018: Fair Value (Level 1) (Level 2) (Level 3) Securities available-for-sale: Residential mortgage -backed $ 104,933 $ - $ 104,933 $ - U.S. government agencies 63,922 - 63,922 - State, county, and municipal 57,160 - 57,160 - Corporate obligations 2,615 - 2,615 - Totals $ 228,630 $ - $ 228,630 $ - Fair Value Measurements At Reporting Date Using: Quoted Prices In Active Significant Markets For Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2017: Fair Value (Level 1) (Level 2) (Level 3) Securities available-for-sale: Residential mortgage -backed $ 122,972 $ - $ 122,972 $ - U.S. government agencies 12,999 - 12,999 - State, county, and municipal 55,501 - 55,501 - Corporate obligations 1,817 - 1,817 - Totals $ 193,289 $ - $ 193,289 $ - |
Schedule of Fair Value, Assets Measured on Non-Recurring Basis | Assets measured at fair value on a nonrecurring basis are included in the table below as of December 31, 2018 and 2017 (in thousands). Fair Value Measurements At Reporting Date Using: Quoted Prices In Active Significant Markets For Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2018: Fair Value (Level 1) (Level 2) (Level 3) Impaired loans $ 3,782 $ - $ - $ 3,782 Foreclosed assets 496 - - 496 Totals $ 4,278 $ - $ - $ 4,278 Fair Value Measurements At Reporting Date Using: Quoted Prices In Active Significant Markets For Other Significant Identical Observable Unobservable Assets Inputs Inputs December 31, 2017: Fair Value (Level 1) (Level 2) (Level 3) Impaired loans $ 4,654 $ - $ - $ 4,654 Foreclosed assets 1,546 - - 1,546 Totals $ 6,200 $ - $ - $ 6,200 |
Summary of Estimated Fair Values Related to Carrying Values of Financial Instruments | The estimated fair values and related carrying values of the Company’s financial instruments at December 31, 2018 and 2017 were as follows (amounts in thousands): Estimated Fair Value Carrying December 31, 2018: Amount Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 47,507 $ 47,507 $ - $ - Certificates of deposit in banks 6,166 - 6,166 - Securities available-for-sale 228,630 - 228,630 - Restricted equity securities 1,941 - - 1,941 Loans receivable 704,685 - 699,076 3,782 Loans held for sale 2,619 - 2,619 - Bank owned life insurance 20,563 - 20,563 - Accrued interest receivable 3,260 - 3,260 - Financial liabilities: Deposits 898,707 - 861,683 - Accrued interest payable 462 - 462 Securities sold under agreements to repurchase 7,975 - 7,975 - Federal Home Loan Bank advances 20,000 19,999 Federal funds purchased - - Note payable 26,963 - 26,963 - Estimated Fair Value Carrying December 31, 2017: Amount Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 15,558 $ 15,558 $ - $ - Certificates of deposit in banks 5,214 - 5,214 - Securities available-for-sale 193,289 - 193,289 - Restricted equity securities 1,259 - - 1,259 Loans receivable 542,240 - 536,701 4,654 Loans held for sale 3,858 - 3,858 - Bank owned life insurance 19,991 - 19,991 - Accrued interest receivable 2,499 - 2,499 - Financial liabilities: Deposits 699,861 - 675,871 - Accrued interest payable 121 121 Securities sold under agreements to repurchase 13,865 - 13,865 - Federal Home Loan Bank advances 10,000 9,997 Federal funds purchased 1,153 - 1,153 - Note payable 5,357 5,357 |
River Financial Corporation (_2
River Financial Corporation (Parent Company Only) Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Statements of Financial Condition | STATEMENTS OF FINANCIAL CONDITION (in thousands) December 31, 2018 2017 Assets Cash $ 10,130 $ 1,619 Investment in River Bank & Trust 128,452 93,593 Deferred income taxes 4 9 Other assets 180 91 Total assets $ 138,766 $ 95,312 Liabilities Note payable $ 26,963 $ 5,357 Accrued expenses 327 6 Total liabilities 27,290 5,363 Common stock related to 401(k) Employee Stock Option Plan 1,371 950 Stockholders' equity Common stock 5,692 5,114 Additional paid in capital 79,604 64,935 Retained earnings 29,460 22,388 Accumulated other comprehensive loss (3,167 ) (2,116 ) Treasury stock, at cost (113 ) (372 ) Common stock related to 401(k) Employee Stock Option Plan (1,371 ) (950 ) Total stockholders' equity 110,105 88,999 Total equity 111,476 89,949 Total liabilities and stockholders' equity $ 138,766 $ 95,312 |
Statements of Income | STATEMENTS OF INCOME (in thousands) Year Ended December 31, 2018 2017 Cash dividends from River Bank & Trust $ 3,750 $ 2,250 Other income 22 - Total income 3,772 2,250 Interest expense - note payable 485 249 Legal and other professional fees 394 101 Data processing expense 77 4 Stockholders' meeting expense 12 11 Other expenses 61 10 Total expenses 1,029 375 Net income before tax benefit 2,743 1,875 Applicable income tax benefit (182 ) (134 ) Net income before undistributed net income of River Bank & Trust 2,925 2,009 Equity in undistributed net income of River Bank & Trust 5,581 6,286 Net income $ 8,506 $ 8,295 |
Statements of Cash Flows | STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31, 2018 2017 Net income $ 8,506 $ 8,295 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of River Bank & Trust (5,581 ) (6,286 ) Deferred income tax 5 7 (Increase) decrease in operating assets and (decrease) increase in operating liabilities: Other assets (89 ) 26 Accrued expenses and other liabilities 321 5 Net cash provided by operating activities 3,162 2,047 Cash Flows used for investing activities: Net cash received in acquisition 241 - Payments to Peoples Southern Bank shareholders (24,497 ) - Net cash used in investing activities (24,256 ) - Cash flow from financing activities: Proceeds from note payable 27,000 - Payments on note payable (5,394 ) (1,071 ) Proceeds from exercise of common stock options and warrants 317 263 Proceeds from issuance of common stock 8,832 85 Purchase of treasury stock (146 ) (579 ) Sale of treasury stock 430 281 Cash dividends (1,434 ) (1,272 ) Net cash provided by (used in) financing activities 29,605 (2,293 ) Net change in cash 8,511 (246 ) Cash at beginning of year 1,619 1,865 Cash at end of year $ 10,130 $ 1,619 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes to the Carrying Amount of Goodwill | Changes to the carrying amount of goodwill for the years ended December 31, 2018 and 2017 are provided in the following table. 2018 2017 Balance at beginning of year $ 10,050 $ 10,050 Goodwill from current year PSB acquisition 8,243 Balance at end of year $ 18,293 $ 10,050 |
Summary of Core Deposit Intangible Assets | A summary of core deposit intangible assets as of December 31, 2018 and 2017 is set forth below. 2018 2017 Gross carrying amount $ 7,413 $ 2,763 Less: accumulated amortization (1,830 ) (1,203 ) Net carrying amount $ 5,583 $ 1,560 |
Schedule of Estimated Amortization Expenses Related to Core Deposit Intangible Assets | Estimated amortization expenses related to the core deposit intangible assets for the next five years are as follows: Keystone PSB Total 2019 $ 388 $ 865 $ 1,253 2020 303 772 1,075 2021 217 680 897 2022 132 588 720 2023 46 496 542 Afterward 1,096 1,096 $ 1,086 $ 4,497 $ 5,583 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Segment | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | |
Accounting Policies [Line Items] | |||
Cash reserve balances with the FRB | $ 2,390 | $ 2,430 | |
Percentage of loan portfolio secured by real estate | 77.00% | ||
Number of reportable segment | Segment | 1 | ||
Statutory federal tax rate | 21.00% | 34.00% | |
Tax cuts and jobs act of 2017, reclassification from accumulated other comprehensive loss | $ 333 | ||
Subsequent Event | |||
Accounting Policies [Line Items] | |||
Lease liabilities | $ 2,200 | ||
Right of use asset | $ 2,200 | ||
Building | |||
Accounting Policies [Line Items] | |||
Premises and equipment, estimated useful life | 40 years | ||
Maximum | |||
Accounting Policies [Line Items] | |||
Percentage of capital on secured loan amount issued | 20.00% | ||
Secured loan amount | $ 22,100 | ||
Percentage of capital on unsecured loan amount issued | 10.00% | ||
Unsecured loan amount | $ 11,000 | ||
Maximum | Core Deposits | |||
Accounting Policies [Line Items] | |||
Intangible assets, estimated useful life | 10 years | ||
Maximum | Furniture And Equipment | |||
Accounting Policies [Line Items] | |||
Premises and equipment, estimated useful life | 25 years | ||
Minimum | Core Deposits | |||
Accounting Policies [Line Items] | |||
Intangible assets, estimated useful life | 3 years | ||
Minimum | Furniture And Equipment | |||
Accounting Policies [Line Items] | |||
Premises and equipment, estimated useful life | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Components of the Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income available to common shareholders | $ 8,506 | $ 8,295 |
Weighted average common shares outstanding | 5,217,348 | 5,095,305 |
Dilutive effect of stock options | 93,726 | 84,797 |
Diluted common shares | 5,311,074 | 5,180,102 |
Basic earnings per common share | $ 1.63 | $ 1.63 |
Diluted earnings per common share | $ 1.60 | $ 1.60 |
Business Combination - Addition
Business Combination - Additional Information (Detail) | Oct. 31, 2018USD ($)Locationshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | |||||
Cash payments for acquisition | $ 24,497,000 | ||||
Goodwill, nondeductible for tax purposes | 18,293,000 | $ 10,050,000 | $ 10,050,000 | $ 9,410,000 | |
PSB Bancshares, Inc | |||||
Business Acquisition [Line Items] | |||||
Number of banking locations | Location | 3 | ||||
Outstanding common stock exchanged for shares of company common stock | shares | 60 | ||||
cash received in exchange of each share | $ 6,610 | ||||
Cash payments for acquisition | $ 24,497,000 | ||||
Stock issued for acquisition | shares | 222,360 | ||||
Aggregate estimated value of the consideration | $ 30,500,000 | ||||
Goodwill, nondeductible for tax purposes | 8,243,000 | ||||
Merger expenses | $ 1,840,000 | ||||
Period in which fair values are subject to refinement | 1 year | ||||
Accretable yield on the acquired loans | $ 62,000 | ||||
PSB Bancshares, Inc | Core Deposits | |||||
Business Acquisition [Line Items] | |||||
Intangible assets amortization period | 10 years |
Business Combination - Schedule
Business Combination - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 18,293 | $ 10,050 | $ 10,050 | $ 9,410 | |
Consideration: | |||||
Cash payments for acquisition | $ 24,497 | ||||
PSB Bancshares, Inc | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 22,227 | ||||
Bank owned certificates of deposit | 3,415 | ||||
Investment securities | 100,942 | ||||
Loans, net of unearned income | 55,219 | ||||
Net loans | 55,219 | ||||
Premises and equipment, net | 5,306 | ||||
Deferred income taxes liabilities, net | (1,833) | ||||
Core deposit intangible | 4,650 | ||||
Other assets | 1,211 | ||||
Total assets | 191,137 | ||||
Noninterest-bearing deposits | 112,524 | ||||
Interest-bearing deposits | 54,872 | ||||
Total deposits | 167,396 | ||||
Other liabilities | 1,484 | ||||
Total liabilities | 168,880 | ||||
Net identifiable assets acquired over liabilities assumed | 22,257 | ||||
Goodwill | 8,243 | ||||
Net assets acquired over liabilities assumed | $ 30,500 | ||||
Consideration: | |||||
Number of shares of PSB common stock outstanding at October 31, 2018 | 3,706 | ||||
Per share exchange ratio | 60.00% | ||||
Stock issued for acquisition | 222,360 | ||||
RFC common stock price per share on October 31, 2018 | $ 27 | ||||
Fair value of RFC common stock issued | $ 6,003 | ||||
Cash consideration each PSB share is entitled to receive | 6,610 | ||||
Cash payments for acquisition | 24,497 | ||||
Total stock consideration (in thousands) | 6,003 | ||||
Total purchase price for PSB (in thousands) | 30,500 | ||||
PSB Bancshares, Inc | Previously Reported | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | 22,227 | ||||
Bank owned certificates of deposit | 3,449 | ||||
Investment securities | 100,887 | ||||
Loans, net of unearned income | 55,934 | ||||
Allowance for loan losses | (1,005) | ||||
Net loans | 54,929 | ||||
Premises and equipment, net | 1,562 | ||||
Deferred income taxes, net | 215 | ||||
Other assets | 1,211 | ||||
Total assets | 184,480 | ||||
Noninterest-bearing deposits | 112,524 | ||||
Interest-bearing deposits | 54,902 | ||||
Total deposits | 167,426 | ||||
Other liabilities | 1,317 | ||||
Total liabilities | 168,743 | ||||
Net identifiable assets acquired over liabilities assumed | 15,737 | ||||
Net assets acquired over liabilities assumed | 15,737 | ||||
PSB Bancshares, Inc | Restatement Adjustment | |||||
Business Acquisition [Line Items] | |||||
Bank owned certificates of deposit | (34) | ||||
Investment securities | 55 | ||||
Loans, net of unearned income | (715) | ||||
Allowance for loan losses | 1,005 | ||||
Net loans | 290 | ||||
Premises and equipment, net | 3,744 | ||||
Deferred income taxes, net | (2,048) | ||||
Core deposit intangible | 4,650 | ||||
Total assets | 6,657 | ||||
Interest-bearing deposits | (30) | ||||
Total deposits | (30) | ||||
Other liabilities | 167 | ||||
Total liabilities | 137 | ||||
Net identifiable assets acquired over liabilities assumed | 6,520 | ||||
Goodwill | 8,243 | ||||
Net assets acquired over liabilities assumed | $ 14,763 |
Business Combination - Summary
Business Combination - Summary of Unaudited Pro Forma Information (Detail) - PSB Bancshares, Inc $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Net interest income - pro forma (unaudited) | $ 34,521 |
Net earnings - pro forma (unaudited) | $ 9,219 |
Diluted earnings per common share - pro forma (unaudited) | $ / shares | $ 1.71 |
Business Combination - Summar_2
Business Combination - Summary of Loans at Acquisition Date Fair Value (Detail) - PSB Bancshares, Inc $ in Thousands | Oct. 31, 2018USD ($) |
Business Acquisition [Line Items] | |
Total Acquired Loans | $ 55,219 |
Acquired Impaired Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 1,060 |
Acquired Performing Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 54,159 |
Residential Real Estate | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 19,434 |
Residential Real Estate | Acquired Impaired Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 342 |
Residential Real Estate | Acquired Performing Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 19,092 |
Commercial Real Estate | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 13,984 |
Commercial Real Estate | Acquired Impaired Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 463 |
Commercial Real Estate | Acquired Performing Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 13,521 |
Construction and Land Development | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 4,298 |
Construction and Land Development | Acquired Impaired Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 158 |
Construction and Land Development | Acquired Performing Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 4,140 |
Commercial | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 11,196 |
Commercial | Acquired Impaired Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 2 |
Commercial | Acquired Performing Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 11,194 |
Consumer | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 6,307 |
Consumer | Acquired Impaired Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 95 |
Consumer | Acquired Performing Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | $ 6,212 |
Business Combination - Summar_3
Business Combination - Summary of Loans at Acquisition Date Gross Contractual Amount Receivable (Detail) - PSB Bancshares, Inc $ in Thousands | Oct. 31, 2018USD ($) |
Business Acquisition [Line Items] | |
Total Acquired Loans | $ 55,934 |
Acquired Impaired Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 1,360 |
Acquired Performing Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 54,574 |
Residential Real Estate | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 19,510 |
Residential Real Estate | Acquired Impaired Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 388 |
Residential Real Estate | Acquired Performing Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 19,122 |
Commercial Real Estate | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 14,325 |
Commercial Real Estate | Acquired Impaired Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 669 |
Commercial Real Estate | Acquired Performing Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 13,656 |
Construction and Land Development | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 4,374 |
Construction and Land Development | Acquired Impaired Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 202 |
Construction and Land Development | Acquired Performing Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 4,172 |
Commercial | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 11,341 |
Commercial | Acquired Impaired Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 2 |
Commercial | Acquired Performing Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 11,339 |
Consumer | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 6,384 |
Consumer | Acquired Impaired Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | 99 |
Consumer | Acquired Performing Loans | |
Business Acquisition [Line Items] | |
Total Acquired Loans | $ 6,285 |
Investment Securities - Schedul
Investment Securities - Schedule of Investment Securities Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available for Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized Cost | $ 232,835 | $ 196,114 |
Securities available-for-sale, Gross Unrealized Gains | 638 | 553 |
Securities available-for-sale, Gross Unrealized Losses | (4,843) | (3,378) |
Securities available-for-sale, Fair Value | 228,630 | 193,289 |
Residential Mortgage - Backed | ||
Schedule of Available for Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized Cost | 108,915 | 125,768 |
Securities available-for-sale, Gross Unrealized Gains | 45 | 23 |
Securities available-for-sale, Gross Unrealized Losses | (4,027) | (2,819) |
Securities available-for-sale, Fair Value | 104,933 | 122,972 |
U.S. Govt. Sponsored Enterprises | ||
Schedule of Available for Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized Cost | 63,833 | 13,176 |
Securities available-for-sale, Gross Unrealized Gains | 367 | 8 |
Securities available-for-sale, Gross Unrealized Losses | (278) | (185) |
Securities available-for-sale, Fair Value | 63,922 | 12,999 |
State, Country and Municipal | ||
Schedule of Available for Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized Cost | 57,417 | 55,339 |
Securities available-for-sale, Gross Unrealized Gains | 219 | 511 |
Securities available-for-sale, Gross Unrealized Losses | (476) | (349) |
Securities available-for-sale, Fair Value | 57,160 | 55,501 |
Corporate Debt Obligations | ||
Schedule of Available for Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized Cost | 2,670 | 1,831 |
Securities available-for-sale, Gross Unrealized Gains | 7 | 11 |
Securities available-for-sale, Gross Unrealized Losses | (62) | (25) |
Securities available-for-sale, Fair Value | $ 2,615 | $ 1,817 |
Investment Securities - Sched_2
Investment Securities - Schedule of Details Concerning Investment Securities with Unrealized Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available for Sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | $ 35,348 | $ 67,976 |
Less than 12 Months, Unrealized Losses | 192 | 635 |
More Than 12 Months, Fair Value | 110,830 | 93,658 |
More Than 12 Months, Unrealized Losses | 4,651 | 2,743 |
Total, Fair Value | 146,178 | 161,634 |
Total, Unrealized Losses | 4,843 | 3,378 |
Residential Mortgage - Backed | ||
Schedule of Available for Sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 6,003 | 43,811 |
Less than 12 Months, Unrealized Losses | 27 | 445 |
More Than 12 Months, Fair Value | 88,502 | 75,046 |
More Than 12 Months, Unrealized Losses | 4,000 | 2,374 |
Total, Fair Value | 94,505 | 118,857 |
Total, Unrealized Losses | 4,027 | 2,819 |
U.S. Govt. Sponsored Enterprises | ||
Schedule of Available for Sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 9,786 | 8,630 |
Less than 12 Months, Unrealized Losses | 13 | 60 |
More Than 12 Months, Fair Value | 8,116 | 3,698 |
More Than 12 Months, Unrealized Losses | 265 | 125 |
Total, Fair Value | 17,902 | 12,328 |
Total, Unrealized Losses | 278 | 185 |
State, Country and Municipal | ||
Schedule of Available for Sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 19,043 | 14,535 |
Less than 12 Months, Unrealized Losses | 149 | 130 |
More Than 12 Months, Fair Value | 13,880 | 14,559 |
More Than 12 Months, Unrealized Losses | 327 | 219 |
Total, Fair Value | 32,923 | 29,094 |
Total, Unrealized Losses | 476 | 349 |
Corporate Debt Obligations | ||
Schedule of Available for Sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 516 | 1,000 |
Less than 12 Months, Unrealized Losses | 3 | |
More Than 12 Months, Fair Value | 332 | 355 |
More Than 12 Months, Unrealized Losses | 59 | 25 |
Total, Fair Value | 848 | 1,355 |
Total, Unrealized Losses | $ 62 | $ 25 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) $ in Millions | Dec. 31, 2018USD ($)Security | Dec. 31, 2017USD ($) |
Investments Debt And Equity Securities [Abstract] | ||
Number of securities in loss position | Security | 155 | |
Number of securities | Security | 301 | |
Securities pledged to secure public deposits | $ | $ 61.5 | $ 28.5 |
Securities pledged to secure repurchase agreements | $ | $ 16.5 | $ 20 |
Investment Securities - Sched_3
Investment Securities - Schedule of Proceeds and Gross Gains and Gross Losses from Sales of Securities Available-for-Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Realized Gains (Losses)-Securities Sales: | ||
Gross gains | $ 381 | $ 63 |
Gross losses | (429) | (58) |
Investment securities gains (losses), net | (48) | 5 |
Sales | $ 59,907 | $ 13,251 |
Investment Securities - Sched_4
Investment Securities - Schedule of Amortized Cost and Estimated Fair value of Securities Available-for-Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Securities available-for-sale | ||
Securities available-for-sale, Less than 1 year, Amortized Cost | $ 17,094 | |
Securities available-for-sale, 1 to 5 years, Amortized Cost | 55,924 | |
Securities available-for-sale, 5 to 10 years, Amortized Cost | 23,597 | |
Securities available-for-sale, After 10 years, Amortized Cost | 27,305 | |
Securities available-for-sale, before Residential mortgage-backed securities | 123,920 | |
Securities available-for-sale, Residential mortgage-backed securities | 232,835 | $ 196,114 |
Securities available-for-sale | ||
Securities available-for-sale, Less than 1 year, Fair Value | 17,092 | |
Securities available-for-sale, 1 to 5 years, Fair Value | 56,000 | |
Securities available-for-sale, 5 to 10 years, Fair Value | 23,733 | |
Securities available-for-sale, After 10 years, Fair Value | 26,872 | |
Securities available-for-sale, before Residential mortgage-backed securities Fair Value | 123,697 | |
Securities available-for-sale, Fair Value | 228,630 | 193,289 |
Residential Mortgage-Backed Securities | ||
Securities available-for-sale | ||
Securities available-for-sale, Residential mortgage-backed securities | 108,915 | 125,768 |
Securities available-for-sale | ||
Securities available-for-sale, Fair Value | $ 104,933 | $ 122,972 |
Loans - Major Classifications o
Loans - Major Classifications of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Notes And Loans Receivable [Line Items] | |||
Total gross loans | $ 714,177 | $ 550,384 | |
Allowance for loan losses | (6,577) | (4,881) | $ (4,007) |
Net deferred loan fees and discounts | (2,915) | (3,263) | |
Net loans | $ 704,685 | $ 542,240 | |
Total gross loans percentage | 101.30% | 101.50% | |
Allowance for loan losses percentage | (0.90%) | (0.90%) | |
Net deferred loan fees and discounts percentage | (0.40%) | (0.60%) | |
Net loans percentage | 100.00% | 100.00% | |
Home Equity Lines of Credit | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total gross loans | $ 39,040 | $ 35,833 | |
Allowance for loan losses | $ (394) | $ (333) | |
Total gross loans percentage | 5.50% | 6.60% | |
Residential Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total gross loans | $ 184,926 | $ 137,722 | |
Total gross loans percentage | 26.20% | 25.40% | |
Residential Real Estate | Closed-end 1-4 family - first lien | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total gross loans | $ 162,249 | $ 115,776 | |
Total gross loans percentage | 23.00% | 21.40% | |
Residential Real Estate | Closed-end 1-4 family - junior lien | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total gross loans | $ 5,739 | $ 4,969 | |
Total gross loans percentage | 0.80% | 0.90% | |
Residential Real Estate | Multi-family | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total gross loans | $ 16,938 | $ 16,977 | |
Total gross loans percentage | 2.40% | 3.10% | |
Commercial Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total gross loans | $ 219,808 | $ 181,225 | |
Total gross loans percentage | 31.20% | 33.40% | |
Commercial Real Estate | Nonfarm nonresidential | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total gross loans | $ 209,391 | $ 173,443 | |
Total gross loans percentage | 29.70% | 32.00% | |
Commercial Real Estate | Farmland | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total gross loans | $ 10,417 | $ 7,782 | |
Total gross loans percentage | 1.50% | 1.40% | |
Construction and Land Development | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total gross loans | $ 102,110 | $ 66,564 | |
Total gross loans percentage | 14.50% | 12.30% | |
Construction and Land Development | Residential | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total gross loans | $ 39,680 | $ 25,830 | |
Total gross loans percentage | 5.60% | 4.80% | |
Construction and Land Development | Other | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total gross loans | $ 62,430 | $ 40,734 | |
Total gross loans percentage | 8.90% | 7.50% | |
Commercial Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total gross loans | $ 134,426 | $ 105,809 | |
Allowance for loan losses | $ (1,375) | $ (954) | (829) |
Total gross loans percentage | 19.10% | 19.50% | |
Commercial Loans | Other commercial loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total gross loans | $ 112,927 | $ 95,896 | |
Total gross loans percentage | 16.00% | 17.70% | |
Commercial Loans | Agricultural | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total gross loans | $ 1,743 | $ 1,581 | |
Total gross loans percentage | 0.20% | 0.30% | |
Commercial Loans | State, county, and municipal loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total gross loans | $ 19,756 | $ 8,332 | |
Total gross loans percentage | 2.90% | 1.50% | |
Consumer Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total gross loans | $ 33,867 | $ 23,231 | |
Allowance for loan losses | $ (326) | $ (217) | $ (199) |
Total gross loans percentage | 4.80% | 4.30% |
Loans - Additional Information
Loans - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)SegmentLoan | Dec. 31, 2017USD ($)Loan | |
Financing Receivable Modifications [Line Items] | ||
Number of primary loan portfolio segments | Segment | 3 | |
Troubled debt restructuring total loans impaired | $ | $ 3,300 | $ 2,400 |
Troubled debt restructuring | $ | $ 823 | $ 57 |
Number of loans restructured | Loan | 5 | 1 |
Number of real estate loans that were in default of modified terms | Loan | 0 | |
Residential Real Estate | ||
Financing Receivable Modifications [Line Items] | ||
Troubled debt restructuring | $ | $ 54 | |
Number of real estate loans that were in default of modified terms | Loan | 1 | |
Commercial Loans | ||
Financing Receivable Modifications [Line Items] | ||
Troubled debt restructuring | $ | $ 143 | |
Number of real estate loans that were in default of modified terms | Loan | 1 |
Loans - Summary of Allowance fo
Loans - Summary of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan Losses | ||
Beginning Balance | $ 4,881 | $ 4,007 |
Provision for loan losses | 1,960 | 1,740 |
Loan charge-offs | (502) | (1,039) |
Loan recoveries | 238 | 173 |
Ending Balance | 6,577 | 4,881 |
Ending Balance, Individually evaluated for impairment | 725 | 908 |
Ending Balance, Collectively evaluated for impairment | 5,852 | 3,973 |
Loans, Individually evaluated for impairment | 4,507 | 5,562 |
Loans, Collectively evaluated for impairment | $ 708,659 | $ 544,822 |
Loans, Percent of loans in each category to total loans | 100.00% | 100.00% |
Financial Asset Acquired With Credit Deterioration | ||
Allowance for Loan Losses | ||
Loans, Acquired loans with deteriorated credit quality | $ 1,011 | |
Home Equity Lines of Credit | ||
Allowance for Loan Losses | ||
Beginning Balance | 333 | |
Provision for loan losses | 69 | |
Loan charge-offs | (20) | |
Loan recoveries | 12 | |
Ending Balance | 394 | $ 333 |
Ending Balance, Collectively evaluated for impairment | 394 | |
Loans, Individually evaluated for impairment | 100 | |
Loans, Collectively evaluated for impairment | $ 38,940 | |
Loans, Percent of loans in each category to total loans | 5.50% | |
Commercial Loans | ||
Allowance for Loan Losses | ||
Beginning Balance | $ 954 | 829 |
Provision for loan losses | 566 | 487 |
Loan charge-offs | (284) | (466) |
Loan recoveries | 139 | 104 |
Ending Balance | 1,375 | 954 |
Ending Balance, Individually evaluated for impairment | 143 | 174 |
Ending Balance, Collectively evaluated for impairment | 1,232 | 780 |
Loans, Individually evaluated for impairment | 262 | 301 |
Loans, Collectively evaluated for impairment | $ 134,163 | $ 105,508 |
Loans, Percent of loans in each category to total loans | 18.80% | 19.20% |
Commercial Loans | Financial Asset Acquired With Credit Deterioration | ||
Allowance for Loan Losses | ||
Loans, Acquired loans with deteriorated credit quality | $ 1 | |
Consumer Loans | ||
Allowance for Loan Losses | ||
Beginning Balance | 217 | $ 199 |
Provision for loan losses | 136 | 113 |
Loan charge-offs | (48) | (109) |
Loan recoveries | 21 | 14 |
Ending Balance | 326 | 217 |
Ending Balance, Individually evaluated for impairment | 13 | 10 |
Ending Balance, Collectively evaluated for impairment | 313 | 207 |
Loans, Individually evaluated for impairment | 54 | 87 |
Loans, Collectively evaluated for impairment | $ 33,726 | $ 23,144 |
Loans, Percent of loans in each category to total loans | 4.70% | 4.20% |
Consumer Loans | Financial Asset Acquired With Credit Deterioration | ||
Allowance for Loan Losses | ||
Loans, Acquired loans with deteriorated credit quality | $ 87 | |
Real Estate Mortgage Loans | Home Equity Lines of Credit | ||
Allowance for Loan Losses | ||
Beginning Balance | 333 | $ 190 |
Provision for loan losses | 239 | |
Loan charge-offs | (100) | |
Loan recoveries | 4 | |
Ending Balance | 333 | |
Ending Balance, Collectively evaluated for impairment | 333 | |
Loans, Individually evaluated for impairment | 100 | |
Loans, Collectively evaluated for impairment | $ 35,733 | |
Loans, Percent of loans in each category to total loans | 6.50% | |
Real Estate Mortgage Loans | Residential | ||
Allowance for Loan Losses | ||
Beginning Balance | 1,167 | $ 602 |
Provision for loan losses | 438 | 573 |
Loan charge-offs | (41) | (32) |
Loan recoveries | 15 | 24 |
Ending Balance | 1,579 | 1,167 |
Ending Balance, Individually evaluated for impairment | 507 | 526 |
Ending Balance, Collectively evaluated for impairment | 1,072 | 641 |
Loans, Individually evaluated for impairment | 2,008 | 2,611 |
Loans, Collectively evaluated for impairment | $ 182,586 | $ 135,111 |
Loans, Percent of loans in each category to total loans | 25.90% | 25.10% |
Real Estate Mortgage Loans | Residential | Financial Asset Acquired With Credit Deterioration | ||
Allowance for Loan Losses | ||
Loans, Acquired loans with deteriorated credit quality | $ 332 | |
Real Estate Mortgage Loans | Commercial | ||
Allowance for Loan Losses | ||
Beginning Balance | 1,604 | $ 1,456 |
Provision for loan losses | 453 | 440 |
Loan charge-offs | (109) | (308) |
Loan recoveries | 13 | 16 |
Ending Balance | 1,961 | 1,604 |
Ending Balance, Individually evaluated for impairment | 54 | 187 |
Ending Balance, Collectively evaluated for impairment | 1,907 | 1,417 |
Loans, Individually evaluated for impairment | 1,925 | 2,295 |
Loans, Collectively evaluated for impairment | $ 217,445 | $ 178,930 |
Loans, Percent of loans in each category to total loans | 30.80% | 32.90% |
Real Estate Mortgage Loans | Commercial | Financial Asset Acquired With Credit Deterioration | ||
Allowance for Loan Losses | ||
Loans, Acquired loans with deteriorated credit quality | $ 438 | |
Real Estate Mortgage Loans | Construction and Land Development | ||
Allowance for Loan Losses | ||
Beginning Balance | 606 | $ 731 |
Provision for loan losses | 298 | (112) |
Loan charge-offs | (24) | |
Loan recoveries | 38 | 11 |
Ending Balance | 942 | 606 |
Ending Balance, Individually evaluated for impairment | 8 | 11 |
Ending Balance, Collectively evaluated for impairment | 934 | 595 |
Loans, Individually evaluated for impairment | 158 | 168 |
Loans, Collectively evaluated for impairment | $ 101,799 | $ 66,396 |
Loans, Percent of loans in each category to total loans | 14.30% | 12.10% |
Real Estate Mortgage Loans | Construction and Land Development | Financial Asset Acquired With Credit Deterioration | ||
Allowance for Loan Losses | ||
Loans, Acquired loans with deteriorated credit quality | $ 153 |
Loans - Summary of Impaired Loa
Loans - Summary of Impaired Loans by Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | $ 4,851 | $ 5,948 |
Recorded Investment | 4,507 | 5,562 |
Impaired Loans With No Allowance | 1,843 | 2,343 |
Impaired Loans With Allowance | 2,664 | 3,219 |
Allowance for Loan Losses | 725 | 908 |
Home Equity Lines of Credit | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 100 | 100 |
Recorded Investment | 100 | 100 |
Impaired Loans With No Allowance | 100 | 100 |
Commercial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 262 | 300 |
Recorded Investment | 262 | 301 |
Impaired Loans With No Allowance | 119 | 127 |
Impaired Loans With Allowance | 143 | 174 |
Allowance for Loan Losses | 143 | 174 |
Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 54 | 237 |
Recorded Investment | 54 | 87 |
Impaired Loans With No Allowance | 29 | 54 |
Impaired Loans With Allowance | 25 | 33 |
Allowance for Loan Losses | 13 | 10 |
Mortgage Loans on Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 4,435 | 5,311 |
Recorded Investment | 4,091 | 5,074 |
Impaired Loans With No Allowance | 1,595 | 2,062 |
Impaired Loans With Allowance | 2,496 | 3,012 |
Allowance for Loan Losses | 569 | 724 |
Mortgage Loans on Real Estate | Residential | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 2,008 | 2,611 |
Recorded Investment | 2,008 | 2,611 |
Impaired Loans With No Allowance | 488 | 1,194 |
Impaired Loans With Allowance | 1,520 | 1,417 |
Allowance for Loan Losses | 507 | 526 |
Mortgage Loans on Real Estate | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 2,206 | 2,468 |
Recorded Investment | 1,925 | 2,295 |
Impaired Loans With No Allowance | 1,107 | 868 |
Impaired Loans With Allowance | 818 | 1,427 |
Allowance for Loan Losses | 54 | 187 |
Mortgage Loans on Real Estate | Construction and Land Development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 221 | 232 |
Recorded Investment | 158 | 168 |
Impaired Loans With Allowance | 158 | 168 |
Allowance for Loan Losses | 8 | 11 |
Nonaccruing Impaired Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 2,085 | 2,471 |
Recorded Investment | 1,804 | 2,149 |
Impaired Loans With No Allowance | 260 | 732 |
Impaired Loans With Allowance | 1,544 | 1,417 |
Allowance for Loan Losses | 648 | 526 |
Nonaccruing Impaired Loans | Commercial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 143 | |
Recorded Investment | 143 | |
Impaired Loans With Allowance | 143 | |
Allowance for Loan Losses | 143 | |
Nonaccruing Impaired Loans | Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 204 | |
Recorded Investment | 54 | |
Impaired Loans With No Allowance | 54 | |
Nonaccruing Impaired Loans | Mortgage Loans on Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 1,942 | 2,267 |
Recorded Investment | 1,661 | 2,095 |
Impaired Loans With No Allowance | 260 | 678 |
Impaired Loans With Allowance | 1,401 | 1,417 |
Allowance for Loan Losses | 505 | 526 |
Nonaccruing Impaired Loans | Mortgage Loans on Real Estate | Residential | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 1,519 | 1,767 |
Recorded Investment | 1,519 | 1,767 |
Impaired Loans With No Allowance | 118 | 350 |
Impaired Loans With Allowance | 1,401 | 1,417 |
Allowance for Loan Losses | 505 | 526 |
Nonaccruing Impaired Loans | Mortgage Loans on Real Estate | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 423 | 500 |
Recorded Investment | 142 | 328 |
Impaired Loans With No Allowance | 142 | 328 |
Accruing Impaired Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 2,766 | 3,477 |
Recorded Investment | 2,703 | 3,413 |
Impaired Loans With No Allowance | 1,583 | 1,611 |
Impaired Loans With Allowance | 1,120 | 1,802 |
Allowance for Loan Losses | 77 | 382 |
Accruing Impaired Loans | Home Equity Lines of Credit | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 100 | 100 |
Recorded Investment | 100 | 100 |
Impaired Loans With No Allowance | 100 | 100 |
Accruing Impaired Loans | Commercial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 119 | 300 |
Recorded Investment | 119 | 301 |
Impaired Loans With No Allowance | 119 | 127 |
Impaired Loans With Allowance | 174 | |
Allowance for Loan Losses | 174 | |
Accruing Impaired Loans | Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 54 | 33 |
Recorded Investment | 54 | 33 |
Impaired Loans With No Allowance | 29 | |
Impaired Loans With Allowance | 25 | 33 |
Allowance for Loan Losses | 13 | 10 |
Accruing Impaired Loans | Mortgage Loans on Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 2,493 | 3,044 |
Recorded Investment | 2,430 | 2,979 |
Impaired Loans With No Allowance | 1,335 | 1,384 |
Impaired Loans With Allowance | 1,095 | 1,595 |
Allowance for Loan Losses | 64 | 198 |
Accruing Impaired Loans | Mortgage Loans on Real Estate | Residential | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 489 | 844 |
Recorded Investment | 489 | 844 |
Impaired Loans With No Allowance | 370 | 844 |
Impaired Loans With Allowance | 119 | |
Allowance for Loan Losses | 2 | |
Accruing Impaired Loans | Mortgage Loans on Real Estate | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 1,783 | 1,968 |
Recorded Investment | 1,783 | 1,967 |
Impaired Loans With No Allowance | 965 | 540 |
Impaired Loans With Allowance | 818 | 1,427 |
Allowance for Loan Losses | 54 | 187 |
Accruing Impaired Loans | Mortgage Loans on Real Estate | Construction and Land Development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid Principal Balance | 221 | 232 |
Recorded Investment | 158 | 168 |
Impaired Loans With Allowance | 158 | 168 |
Allowance for Loan Losses | $ 8 | $ 11 |
Loans - Summary of Average Reco
Loans - Summary of Average Recorded Investment and Interest Income recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable Impaired [Line Items] | ||
Impaired loans, Average recorded investment | $ 4,728 | $ 6,131 |
Impaired loans, Interest income | 141 | 162 |
Home Equity Lines of Credit | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans, Average recorded investment | 100 | 100 |
Impaired loans, Interest income | 6 | 6 |
Commercial Loans | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans, Average recorded investment | 268 | 498 |
Impaired loans, Interest income | 9 | 15 |
Consumer Loans | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans, Average recorded investment | 60 | 116 |
Impaired loans, Interest income | 3 | 1 |
Mortgage Loans on Real Estate | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans, Average recorded investment | 4,300 | 5,417 |
Impaired loans, Interest income | 123 | 140 |
Mortgage Loans on Real Estate | Residential Real Estate | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans, Average recorded investment | 2,020 | 2,209 |
Impaired loans, Interest income | 23 | 50 |
Mortgage Loans on Real Estate | Commercial Real Estate | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans, Average recorded investment | 2,117 | 3,027 |
Impaired loans, Interest income | 92 | 80 |
Mortgage Loans on Real Estate | Construction and Land Development | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans, Average recorded investment | 163 | 181 |
Impaired loans, Interest income | $ 8 | $ 10 |
Loans - Summary of Aging of Loa
Loans - Summary of Aging of Loans and Non-accrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Current | $ 709,324 | $ 545,244 |
Nonaccrual Loans | 2,740 | 2,586 |
Total Loans | 714,177 | 550,384 |
Past Due 30-89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Past Due | 2,094 | 2,133 |
Past Due 90 Days or More | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Past Due | 19 | 421 |
Home Equity Lines of Credit | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Current | 38,891 | 35,591 |
Nonaccrual Loans | 125 | 80 |
Total Loans | 39,040 | 35,833 |
Home Equity Lines of Credit | Past Due 30-89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Past Due | 24 | 152 |
Home Equity Lines of Credit | Past Due 90 Days or More | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Past Due | 10 | |
Residential | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 184,926 | 137,722 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 219,808 | 181,225 |
Construction and Land Development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 102,110 | 66,564 |
Commercial Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Current | 134,066 | 105,081 |
Nonaccrual Loans | 143 | |
Total Loans | 134,426 | 105,809 |
Commercial Loans | Past Due 30-89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Past Due | 217 | 728 |
Consumer Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Current | 33,544 | 22,906 |
Nonaccrual Loans | 89 | 149 |
Total Loans | 33,867 | 23,231 |
Consumer Loans | Past Due 30-89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Past Due | 234 | 175 |
Consumer Loans | Past Due 90 Days or More | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Past Due | 1 | |
Mortgage Loans on Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Current | 502,823 | 381,666 |
Nonaccrual Loans | 2,383 | 2,357 |
Total Loans | 506,844 | 385,511 |
Mortgage Loans on Real Estate | Past Due 30-89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Past Due | 1,619 | 1,078 |
Mortgage Loans on Real Estate | Past Due 90 Days or More | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Past Due | 19 | 410 |
Mortgage Loans on Real Estate | Residential | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Current | 181,252 | 134,565 |
Nonaccrual Loans | 2,127 | 1,890 |
Total Loans | 184,926 | 137,722 |
Mortgage Loans on Real Estate | Residential | Past Due 30-89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Past Due | 1,528 | 857 |
Mortgage Loans on Real Estate | Residential | Past Due 90 Days or More | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Past Due | 19 | 410 |
Mortgage Loans on Real Estate | Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Current | 219,578 | 180,826 |
Nonaccrual Loans | 162 | 399 |
Total Loans | 219,808 | 181,225 |
Mortgage Loans on Real Estate | Commercial Real Estate | Past Due 30-89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Past Due | 68 | |
Mortgage Loans on Real Estate | Construction and Land Development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Current | 101,993 | 66,275 |
Nonaccrual Loans | 94 | 68 |
Total Loans | 102,110 | 66,564 |
Mortgage Loans on Real Estate | Construction and Land Development | Past Due 30-89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Accruing Loans, Past Due | $ 23 | $ 221 |
Loans - Summary of Risk Categor
Loans - Summary of Risk Category of Loans by Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 714,177 | $ 550,384 |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 696,413 | 535,360 |
Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 10,320 | 8,684 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 7,333 | 6,304 |
Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 111 | 36 |
Home Equity Lines of Credit | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 39,040 | 35,833 |
Home Equity Lines of Credit | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 38,530 | 35,580 |
Home Equity Lines of Credit | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 285 | 14 |
Home Equity Lines of Credit | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 225 | 203 |
Home Equity Lines of Credit | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 36 | |
Residential | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 184,926 | 137,722 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 219,808 | 181,225 |
Construction and Land Development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 102,110 | 66,564 |
Commercial Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 134,426 | 105,809 |
Commercial Loans | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 131,449 | 103,137 |
Commercial Loans | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 2,612 | 2,234 |
Commercial Loans | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 343 | 438 |
Commercial Loans | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 22 | |
Consumer Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 33,867 | 23,231 |
Consumer Loans | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 33,269 | 22,865 |
Consumer Loans | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 330 | 58 |
Consumer Loans | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 268 | 308 |
Mortgage Loans on Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 506,844 | 385,511 |
Mortgage Loans on Real Estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 493,165 | 373,778 |
Mortgage Loans on Real Estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 7,093 | 6,378 |
Mortgage Loans on Real Estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 6,497 | 5,355 |
Mortgage Loans on Real Estate | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 89 | |
Mortgage Loans on Real Estate | Residential | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 184,926 | 137,722 |
Mortgage Loans on Real Estate | Residential | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 179,132 | 132,914 |
Mortgage Loans on Real Estate | Residential | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 2,435 | 1,390 |
Mortgage Loans on Real Estate | Residential | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 3,270 | 3,418 |
Mortgage Loans on Real Estate | Residential | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 89 | |
Mortgage Loans on Real Estate | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 219,808 | 181,225 |
Mortgage Loans on Real Estate | Commercial Real Estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 212,421 | 175,208 |
Mortgage Loans on Real Estate | Commercial Real Estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 4,609 | 4,238 |
Mortgage Loans on Real Estate | Commercial Real Estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 2,778 | 1,779 |
Mortgage Loans on Real Estate | Construction and Land Development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 102,110 | 66,564 |
Mortgage Loans on Real Estate | Construction and Land Development | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 101,612 | 65,656 |
Mortgage Loans on Real Estate | Construction and Land Development | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 49 | 750 |
Mortgage Loans on Real Estate | Construction and Land Development | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 449 | $ 158 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Major Classifications of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Abstract] | ||
Land and improvements | $ 6,555 | $ 6,123 |
Buildings and improvements | 20,736 | 15,967 |
Leasehold improvements | 678 | 658 |
Furniture, equipment, and vehicle | 4,951 | 4,099 |
Total | 32,920 | 26,847 |
Accumulated depreciation | (6,093) | (5,038) |
Premises and equipment, net | $ 26,827 | $ 21,809 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 1,100 | $ 946 |
Foreclosed Assets - Additional
Foreclosed Assets - Additional information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Residential Real Estate | ||
Foreclosed Assets [Line Items] | ||
Residential real estate foreclosures | $ 276 | $ 323 |
Foreclosed Assets - Summary of
Foreclosed Assets - Summary of Foreclosed Assets Analysis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other Real Estate And Foreclosed Assets [Abstract] | ||
Balance at beginning of year | $ 1,546 | $ 1,151 |
Transfers from loans | 318 | 2,658 |
Foreclosed property sold | (1,248) | (2,118) |
Write-down of foreclosed property | (120) | (145) |
Balance at end of year | $ 496 | $ 1,546 |
Foreclosed Assets - Summary o_2
Foreclosed Assets - Summary of Expenses Applicable to Foreclosed Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other Real Estate And Foreclosed Assets [Abstract] | ||
Net (gain) loss on sales of foreclosed assets | $ 20 | $ (72) |
Write-down of foreclosed property | 120 | 145 |
Operating expenses, net of rental income | 60 | 90 |
Total | $ 200 | $ 163 |
Deposits - Summary of Major Cla
Deposits - Summary of Major Classifications of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Line Items] | ||
Noninterest-bearing deposits | $ 241,274 | $ 185,171 |
Demand deposits, interest bearing | 239,463 | 195,792 |
Money market accounts | 200,143 | 153,732 |
Savings deposits | 55,733 | 29,441 |
Other time certificates | 114,843 | 98,680 |
Total deposits | 898,707 | 699,861 |
Certificates Of Deposit More Than Two Hundred Fifty Thousands or More [Member] | ||
Deposits [Line Items] | ||
Time certificates of $250,000 or more | $ 47,251 | $ 37,045 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities Of Certificates Of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Certificates of Deposit Less Than 250,000 | ||
Deposits [Line Items] | ||
2019 | $ 83,811 | |
2020 | 16,136 | |
2021 | 7,553 | |
2022 | 5,569 | |
2023 | 1,774 | |
Total | 114,843 | |
Certificates of Deposit 250,000 or More | ||
Deposits [Line Items] | ||
2019 | 34,089 | |
2020 | 2,251 | |
2021 | 5,835 | |
2022 | 3,530 | |
2023 | 1,546 | |
Total | $ 47,251 | $ 37,045 |
Securities Sold Under Repurch_2
Securities Sold Under Repurchase Agreements - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Securities Sold Under Agreements To Repurchase [Abstract] | ||
Securities sold under repurchase , period | 1 day | |
Securities sold under repurchase agreements | $ 7,975 | $ 13,865 |
Repurchase agreement secured by investment securities, fair value | $ 16,500 | $ 20,000 |
Repurchase agreement, weighted average interest rate | 0.37% | 0.21% |
Federal Home Loan Bank and Ot_3
Federal Home Loan Bank and Other Borrowings - Summary of Outstanding Advances From FHLB (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Federal Home Loan Bank Advances [Line Items] | ||
Federal home loan bank advances | $ 20,000 | $ 10,000 |
2.44% Fixed | ||
Federal Home Loan Bank Advances [Line Items] | ||
Federal home loan bank advances | $ 10,000 | |
Federal home loan bank maturity | Jan. 16, 2019 | |
Federal home loan bank rate | 2.44% | |
2.48% Fixed | ||
Federal Home Loan Bank Advances [Line Items] | ||
Federal home loan bank advances | $ 10,000 | |
Federal home loan bank maturity | Jan. 28, 2019 | |
Federal home loan bank rate | 2.48% | |
1.26% Fixed | ||
Federal Home Loan Bank Advances [Line Items] | ||
Federal home loan bank advances | $ 5,000 | |
Federal home loan bank maturity | Jan. 22, 2018 | |
Federal home loan bank rate | 1.26% | |
1.38% Fixed | ||
Federal Home Loan Bank Advances [Line Items] | ||
Federal home loan bank advances | $ 5,000 | |
Federal home loan bank maturity | Feb. 12, 2018 | |
Federal home loan bank rate | 1.38% |
Federal Home Loan Bank and Ot_4
Federal Home Loan Bank and Other Borrowings - Additional Information (Details) | Oct. 31, 2018USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Federal Home Loan Bank Advances [Line Items] | ||||
Unfunded standby letters of credit with FHLB | $ 5,100,000 | $ 1,600,000 | ||
Pledges under blanket floating liens | 268,000,000 | 203,000,000 | ||
Additional borrowing capacity | 116,800,000 | 95,500,000 | ||
Cash payments to shareholders | 24,497,000 | |||
Available lines of credit for overnight federal funds borrowings | 38,500,000 | 28,500,000 | ||
Federal funds purchased | $ 0 | $ 1,153,000 | ||
Federal funds purchased interest rate | 0.00% | 2.20% | ||
SouthPoint Bank of Birmingham | A L | ||||
Federal Home Loan Bank Advances [Line Items] | ||||
Debt instrument, face amount | $ 7,500,000 | |||
Debt instrument, balance amount | $ 5,400,000 | |||
CenterState Bank | ||||
Federal Home Loan Bank Advances [Line Items] | ||||
Debt instrument, face amount | $ 27,000,000 | |||
Debt instrument, balance amount | $ 27,000,000 | |||
Debt instrument, fixed interest rate | 6.00% | |||
Debt instrument, payment term | The bank will have principal and interest payments due quarterly beginning in January 2019. The final principal payment will be paid at October 30, 2025. | |||
Debt instrument, maturity date | Oct. 30, 2025 | |||
CenterState Bank | Maximum | ||||
Federal Home Loan Bank Advances [Line Items] | ||||
Classified assets to tier 1 capital plus ALLL ratio | 40 | |||
CenterState Bank | Minimum | ||||
Federal Home Loan Bank Advances [Line Items] | ||||
Tier 1 leverage ratio | 8.00% | |||
Total risk-based ratio | 12.00% | |||
Fixed charge coverage ratio | 130.00% | |||
Liquid assets to be maintained | $ 2,000,000 | |||
Keystone Bancshares, Inc. | ||||
Federal Home Loan Bank Advances [Line Items] | ||||
Cash payments to shareholders | $ 7,300,000 | |||
PSB Bancshares, Inc | ||||
Federal Home Loan Bank Advances [Line Items] | ||||
Cash payments to shareholders | $ 24,497,000 |
Federal Home Loan Bank and Ot_5
Federal Home Loan Bank and Other Borrowings - Summary of Principal Payments (Details) - CenterState Bank $ in Thousands | Dec. 31, 2018USD ($) |
Federal Home Loan Bank Advances [Line Items] | |
2019 | $ 3,202 |
2020 | 3,400 |
2021 | 3,608 |
2022 | 3,830 |
2023 | 4,065 |
Afterward | 8,858 |
Total | $ 26,963 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal tax rate | 21.00% | 34.00% |
Deferred tax expense recorded related to remeasurement of net deferred tax assets | $ 545 | |
Additional deferred tax effects on unrealized holding losses for available for sale securities | $ 333 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Current | $ 3,282 | $ 3,360 |
Deferred | (899) | 281 |
Change in federal income tax rate | 878 | |
Total income tax expense | $ 2,383 | $ 4,519 |
Income Taxes - Schedule of Diff
Income Taxes - Schedule of Difference Between Income Tax Expense and Amount Computed by Statutory Federal Income Tax Rate to Income Before Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Net income before taxes | $ 10,889 | $ 12,814 |
Statutory federal tax rate | 21.00% | 34.00% |
Tax on income at statutory federal tax rate | $ 2,287 | $ 4,357 |
Increase (decrease) resulting from: | ||
Federal income tax benefit of state income taxes | (92) | (156) |
Tax exempt income on loans | (95) | (82) |
Tax exempt income on investments | (178) | (384) |
Tax exempt income from bank-owned life insurance | (120) | (144) |
Tax exempt death benefits from bank-owned life insurance | (226) | |
Nondeductible expenses | 143 | 66 |
Change in federal income tax rate | 878 | |
State income tax | 438 | 460 |
Other | (250) | |
Total income tax expense | $ 2,383 | $ 4,519 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Loans and allowance for loan losses | $ 1,937 | $ 1,517 |
Accrued expenses | 219 | |
Deferred compensation | 600 | 282 |
Unrealized losses on investment securities available- for-sale | 1,062 | 709 |
Other | 485 | 497 |
Total deferred tax assets | 4,303 | 3,005 |
Deferred tax liabilities: | ||
Core deposit intangible | (1,400) | (391) |
Depreciation | (1,717) | (602) |
Other | (5) | (35) |
Total deferred tax liabilities | (3,122) | (1,028) |
Net deferred income tax assets | $ 1,181 | $ 1,977 |
Commitments - Summary of Financ
Commitments - Summary of Financial instruments Whose Contract Amount Represents Credit Risk (Details) - Credit Risk - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Line Of Credit Facility [Line Items] | ||
Contractual amount of financial instruments | $ 151,874 | $ 145,146 |
Stand-by and Performance Letter of Credit | ||
Line Of Credit Facility [Line Items] | ||
Contractual amount of financial instruments | 5,412 | 2,268 |
Commitments to Extend Credit | ||
Line Of Credit Facility [Line Items] | ||
Contractual amount of financial instruments | $ 146,462 | $ 142,878 |
Commitments - Additional Inform
Commitments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Description of operating lease arrangements | The Company has entered into operating lease agreements for four branch locations and various office equipment. | |
Operating leases, rent expense | $ 452 | $ 393 |
Commitments - Schedule of Futur
Commitments - Schedule of Future Minimum Rent on Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2019 | $ 609 |
2020 | 588 |
2021 | 541 |
2022 | 523 |
2023 | 533 |
Thereafter | 958 |
Total | $ 3,752 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total fair value of shares vested | $ 874,000 | $ 951,000 |
Intrinsic value of options exercised | 365,000 | 250,000 |
Aggregate intrinsic value of total options outstanding | 1,860,000 | |
Aggregate intrinsic value of exercisable options | 1,460,000 | |
Cash received from options exercised | 317,000 | |
Tax benefits from exercise of stock options | $ 0 | $ 0 |
Total unvested stock options | 174,900 | 125,800 |
Shares, Granted | 85,500 | 20,500 |
Unvested stock options vested | 36,400 | |
Weighted average calculated value of stock options granted | $ 3.85 | $ 2.22 |
Estimated dividend yield term | The dividend yield is the estimated dividend we expect to pay over the next four or five years. | |
Defined contribution plan, number of common stock outstanding, shares | 5,687,914 | 5,098,068 |
Employee Stock Ownership Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Defined contribution plan, description | The Company makes contributions up to 3% of each participant’s annual compensation and the Company matches 50% of the next 2% contributed by the employee | |
Maximum annual contributions amount per employee | $ 18,500 | $ 18,000 |
Maximum annual contributions percentage per employee | 3.00% | |
Employer matching percentage of compensation contributed | 50.00% | |
Employer matching percentage of employees compensation contributed | 2.00% | |
Contributions by company | $ 341,000 | 306,000 |
Common stock related to 401(k) Employee Stock Ownership Plan | 1,370,000 | 950,000 |
Fair Value of Common stock related to 401(k) Employee Stock Ownership Plan | $ 1,650,000 | 1,320,000 |
Employee Stock Ownership Plan | Defined Benefit Plans Adjustment | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of periods available to purchase shares following distribution | 2 | |
Fair Value of Common stock related to 401(k) Employee Stock Ownership Plan | $ 0 | 0 |
Performance Share Awards | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Compensation expense recognized | 68,000 | $ 56,000 |
Unrecorded compensation expense | $ 412,000 | |
Weighted average period of unrecorded compensation costs | 1 year 9 months 18 days | |
Stock Compensation Plan | Employee Stock Ownership Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Defined contribution plan, number of common stock outstanding, shares | 68,889,000 | 53,715,000 |
Defined contribution plan, number of common stock outstanding, shares unallocated | 0 | 0 |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected dividend payment period | 5 years | |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected dividend payment period | 4 years | |
2015 Equity Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares reserved for possible issuance | 300,000 | |
Equity incentive plan, expiration period | 10 years | |
2015 Equity Incentive Plan | Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Equity incentive plan, expiration period | 10 years |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Stock Options Outstanding Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares | |||
Shares, Outstanding beginning balance | 268,375 | 267,425 | |
Shares, Granted | 85,500 | 20,500 | |
Shares, Exercised | (28,450) | (19,550) | |
Shares, Outstanding ending balance | 325,425 | 268,375 | 267,425 |
Shares, Exercisable | 150,525 | 142,575 | |
Weighted Average Exercise Price | |||
Weighted average exercise price, Outstanding beginning balance | $ 14.77 | $ 14.11 | |
Weighted average exercise price, Granted | 26.89 | 20.43 | |
Weighted average exercise price, Exercised | 11.16 | 11.73 | |
Weighted average exercise price, Outstanding ending balance | 18.27 | 14.77 | $ 14.11 |
Weighted average exercise price, Exercisable | $ 14.29 | $ 13.28 | |
Weighted Average Remaining Contractual Term (years) | |||
Weighted average remaining contractual term (years) | 6 years 6 months 7 days | 5 years 10 months 13 days | 6 years 3 months 7 days |
Weighted average remaining contractual term (years), Exercisable | 4 years 3 months 3 days | 3 years 11 months 23 days | |
Range of Exercise Prices | |||
Range of exercise prices, Outstanding ending balance, lower limit | $ 8.40 | $ 8 | |
Range of exercise prices, Outstanding ending balance, upper limit | 27 | 22.75 | |
Minimum | |||
Range of Exercise Prices | |||
Range of Exercise Prices, Exercisable | 8.40 | 8 | |
Maximum | |||
Range of Exercise Prices | |||
Range of Exercise Prices, Exercisable | $ 27 | $ 22.75 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Stock Options Weighted Average Assumptions Using Black-Scholes Option Pricing Model (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Dividend yield (after three years) | 1.50% | 1.50% |
Expected life in years | 7 years | 7 years |
Expected volatility | 10.00% | 10.00% |
Risk free interest rate | 3.05% | 2.07% |
Stock Warrants - Additional Inf
Stock Warrants - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Class Of Warrant Or Right [Line Items] | ||||
Stock compensation expense | $ 68,000 | $ 56,000 | ||
Keystone Bancshares, Inc. | ||||
Class Of Warrant Or Right [Line Items] | ||||
Stock warrants issued | 36,000 | |||
Warrants exercise price | $ 8 | |||
Warrants expiration period | Mar. 1, 2017 | |||
Warrants exercised | 0 | 29,750 | ||
Shares vested and exercisable | 6,250 | |||
Warrants forfeited | 0 | |||
Stock compensation expense | $ 0 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transactions [Abstract] | ||
Deposits from directors, executive officers and their related interests | $ 5.7 | $ 4 |
Related Party Transactions - Su
Related Party Transactions - Summary of Activity for Related Party Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transactions [Abstract] | ||
Balance at beginning of year | $ 8,369 | $ 9,551 |
New loans | 11,097 | 15,690 |
Repayments | 14,145 | 16,872 |
Balance at end of year | $ 5,321 | $ 8,369 |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Bank's Actual Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Regulatory Capital Requirements [Abstract] | ||
Total Capital (To Risk-Weighted Assets), Actual Amount | $ 115,721 | $ 89,604 |
Common Equity Tier 1 Capital (To Risk-weighted Assets), Actual Amount | 109,144 | 84,724 |
Tier 1 Capital (To Risk-Weighted Assets), Actual Amount | 109,144 | 84,724 |
Tier 1 Capital (To Average Assets), Actual Amount | $ 109,144 | $ 84,724 |
Total Capital (To Risk-Weighted Assets), Actual Ratio | 14.253% | 14.325% |
Common Equity Tier 1 Capital (To Risk-weighted Assets), Actual Ratio | 13.443% | 13.545% |
Tier 1 Capital (To Risk-Weighted Assets), Actual ratio | 13.443% | 13.545% |
Tier 1 Capital (To Average Assets), Actual Ratio | 14.006% | 10.429% |
Total Capital (To Risk-Weighted Assets), Required For Capital Adequacy Purposes Amount | $ 80,174 | $ 57,859 |
Common Equity Tier 1 Capital (To Risk-weighted Assets), Required For Capital Adequacy Purposes Amount | 51,758 | 35,967 |
Tier 1 Capital (To Risk-Weighted Assets), Required For Capital Adequacy Purposes Amount | 63,936 | 45,349 |
Tier 1 Capital (To Average Assets), Required For Capital Adequacy Purposes Amount | $ 31,172 | $ 32,497 |
Total Capital (To Risk-Weighted Assets) Required For Capital Adequacy Purposes Ratio | 9.875% | 9.25% |
Common Equity Tier 1 Capital (To Risk-weighted Assets), Required For Capital Adequacy Purposes Ratio | 6.375% | 5.75% |
Tier 1 Capital (To Risk-Weighted Assets), Required For Capital Adequacy Purposes Ratio | 7.875% | 7.25% |
Tier 1 Capital (To Average Assets), Required For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Total Capital (To Risk-Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Regulations, Amount | $ 81,189 | $ 62,551 |
Common Equity Tier 1 Capital (To Risk-weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Regulations, Amount | 52,773 | 40,658 |
Tier 1 Capital (To Risk-Weighted Assets),To Be Well Capitalized Under Prompt Corrective Action Regulations, Amount | 64,951 | 50,040 |
Tier 1 Capital (To Average Assets), To Be Well Capitalized Under Prompt Corrective Action Regulations, Amount | $ 38,965 | $ 40,621 |
Total Capital (To Risk-Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 10.00% | 10.00% |
Common Equity Tier 1 Capital (To Risk-weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 6.50% | 6.50% |
Tier 1 Capital (To Risk-Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 8.00% | 8.00% |
Tier 1 Capital (To Average Assets).To Be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 5.00% | 5.00% |
Fair Value Measurement and Disc
Fair Value Measurement and Disclosures - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Level 3 assets, measured at fair value on recurring basis | $ 0 | $ 0 |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value transfers between levels transfers amount | $ 0 | $ 0 |
Non-recurring Basis | Significant Unobservable Inputs (Level 3) | Discount Rate | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Appraisal discounts and weighted average input rate | 15 | 15 |
Non-recurring Basis | Significant Unobservable Inputs (Level 3) | Discount Rate | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Appraisal discounts and weighted average input rate | 20 | 20 |
Fair Value Measurement and Di_2
Fair Value Measurement and Disclosures - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | $ 228,630 | $ 193,289 |
State, Country and Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 57,160 | 55,501 |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 228,630 | 193,289 |
Recurring Basis | Residential Mortgage -Backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 104,933 | 122,972 |
Recurring Basis | U.S. Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 63,922 | 12,999 |
Recurring Basis | State, Country and Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 57,160 | 55,501 |
Recurring Basis | Corporate Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 2,615 | 1,817 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 228,630 | 193,289 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Residential Mortgage -Backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 104,933 | 122,972 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | U.S. Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 63,922 | 12,999 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | State, Country and Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 57,160 | 55,501 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Corporate Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | $ 2,615 | $ 1,817 |
Fair Value Measurement and Di_3
Fair Value Measurement and Disclosures - Schedule of Fair Value, Assets Measured on Non-Recurring Basis (Details) - Non-Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 4,278 | $ 6,200 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 4,278 | 6,200 |
Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 3,782 | 4,654 |
Impaired Loans | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 3,782 | 4,654 |
Foreclosed Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 496 | 1,546 |
Foreclosed Assets | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 496 | $ 1,546 |
Fair Value Measurement and Di_4
Fair Value Measurement and Disclosures - Summary of Estimated Fair Values Related to Carrying Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Securities available-for-sale | $ 228,630 | $ 193,289 |
Bank owned life insurance | 20,563 | 19,991 |
Accrued interest receivable | 3,260 | 2,499 |
Financial liabilities: | ||
Securities sold under agreements to repurchase | 7,975 | 13,865 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 47,507 | 15,558 |
Certificates of deposit in banks | 6,166 | 5,214 |
Securities available-for-sale | 228,630 | 193,289 |
Restricted equity securities | 1,941 | 1,259 |
Loans receivable | 704,685 | 542,240 |
Loans held for sale | 2,619 | 3,858 |
Bank owned life insurance | 20,563 | 19,991 |
Accrued interest receivable | 3,260 | 2,499 |
Financial liabilities: | ||
Deposits | 898,707 | 699,861 |
Accrued interest payable | 462 | 121 |
Securities sold under agreements to repurchase | 7,975 | 13,865 |
Federal Home Loan Bank advances | 20,000 | 10,000 |
Federal funds purchased | 1,153 | |
Note payable | 26,963 | 5,357 |
Estimate Fair Value | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 47,507 | 15,558 |
Estimate Fair Value | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Certificates of deposit in banks | 6,166 | 5,214 |
Securities available-for-sale | 228,630 | 193,289 |
Loans receivable | 699,076 | 536,701 |
Loans held for sale | 2,619 | 3,858 |
Bank owned life insurance | 20,563 | 19,991 |
Accrued interest receivable | 3,260 | 2,499 |
Financial liabilities: | ||
Deposits | 861,683 | 675,871 |
Accrued interest payable | 462 | 121 |
Securities sold under agreements to repurchase | 7,975 | 13,865 |
Federal Home Loan Bank advances | 19,999 | 9,997 |
Federal funds purchased | 1,153 | |
Note payable | 26,963 | 5,357 |
Estimate Fair Value | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Restricted equity securities | 1,941 | 1,259 |
Loans receivable | $ 3,782 | $ 4,654 |
River Financial Corporation (_3
River Financial Corporation (Parent Company Only) Financial Information - Statements of Financial Condition (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | |||
Deferred income taxes | $ 1,181 | $ 1,977 | |
Other assets | 4,654 | 3,701 | |
Total assets | 1,070,464 | 823,292 | |
Liabilities | |||
Note payable | 26,963 | 5,357 | |
Total liabilities | 958,988 | 733,343 | |
Common stock related to 401(k) Employee Stock Ownership Plan | 1,343 | 950 | |
Stockholders' Equity | |||
Common stock | 5,692 | 5,114 | |
Additional paid in capital | 79,604 | 64,935 | |
Retained earnings | 29,460 | 22,388 | |
Accumulated other comprehensive loss | (3,167) | (2,116) | |
Treasury stock, at cost | (113) | (372) | |
Common stock related to 401(k) Employee Stock Ownership Plan | (1,343) | (950) | |
Total stockholders' equity | 110,133 | 88,999 | $ 81,827 |
Total equity | 111,476 | 89,949 | |
Total liabilities and stockholders' equity | 1,070,464 | 823,292 | |
River Financial Corporation | |||
Assets | |||
Cash | 10,130 | 1,619 | |
Investment in River Bank & Trust | 128,452 | 93,593 | |
Deferred income taxes | 4 | 9 | |
Other assets | 180 | 91 | |
Total assets | 138,766 | 95,312 | |
Liabilities | |||
Note payable | 26,963 | 5,357 | |
Accrued expenses | 327 | 6 | |
Total liabilities | 27,290 | 5,363 | |
Common stock related to 401(k) Employee Stock Ownership Plan | 1,371 | 950 | |
Stockholders' Equity | |||
Common stock | 5,692 | 5,114 | |
Additional paid in capital | 79,604 | 64,935 | |
Retained earnings | 29,460 | 22,388 | |
Accumulated other comprehensive loss | (3,167) | (2,116) | |
Treasury stock, at cost | (113) | (372) | |
Common stock related to 401(k) Employee Stock Ownership Plan | (1,371) | (950) | |
Total stockholders' equity | 110,105 | 88,999 | |
Total equity | 111,476 | 89,949 | |
Total liabilities and stockholders' equity | $ 138,766 | $ 95,312 |
River Financial Corporation (_4
River Financial Corporation (Parent Company Only) Financial Information - Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Income Statements Captions [Line Items] | ||
Other income | $ 275 | $ 211 |
Total interest income | 36,685 | 32,170 |
Interest expense - note payable | 485 | 249 |
Legal and other professional services | 798 | 505 |
Data processing expense | 3,527 | 1,689 |
Other operating expense | 3,731 | 3,392 |
Applicable income tax benefit | 2,383 | 4,519 |
Net income | 8,506 | 8,295 |
River Financial Corporation | ||
Condensed Income Statements Captions [Line Items] | ||
Cash dividends from River Bank & Trust | 3,750 | 2,250 |
Other income | 22 | |
Total interest income | 3,772 | 2,250 |
Interest expense - note payable | 485 | 249 |
Legal and other professional services | 394 | 101 |
Data processing expense | 77 | 4 |
Stockholders' meeting expense | 12 | 11 |
Other operating expense | 61 | 10 |
Total expenses | 1,029 | 375 |
Net income before tax benefit | 2,743 | 1,875 |
Applicable income tax benefit | (182) | (134) |
Net income before undistributed net income of River Bank & Trust | 2,925 | 2,009 |
Equity in undistributed net income of River Bank & Trust | 5,581 | 6,286 |
Net income | $ 8,506 | $ 8,295 |
River Financial Corporation (_5
River Financial Corporation (Parent Company Only) Financial Information - Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Cash Flow Statements Captions [Line Items] | ||
Net income | $ 8,506 | $ 8,295 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred income tax expense | (684) | 1,159 |
(Increase) decrease in operating assets and (decrease) increase in operating liabilities: | ||
Other assets | 60 | 52 |
Net cash from operating activities | 12,543 | 13,960 |
Cash Flows used for investing activities: | ||
Net cash received in acquisition | 22,227 | |
Payments to Peoples Southern Bank shareholders | (24,497) | |
Net cash used for investing activities | (44,607) | (45,540) |
Cash flow from financing activities: | ||
Proceeds from note payable | 27,000 | |
Payments on note payable | (5,394) | (1,071) |
Proceeds from exercise of common stock options and warrants | 317 | 263 |
Proceeds from issuance of common stock | 8,832 | 85 |
Purchase of treasury stock | (146) | (579) |
Sale of treasury stock | 430 | 281 |
Cash dividends | (1,434) | (1,272) |
Net cash from financing activities | 64,013 | 4,639 |
Net Change In Cash And Cash Equivalents | 31,949 | (26,941) |
Cash and Cash Equivalents At Beginning Of Period | 15,558 | 42,499 |
Cash and Cash Equivalents At End Of Period | 47,507 | 15,558 |
River Financial Corporation | ||
Condensed Cash Flow Statements Captions [Line Items] | ||
Net income | 8,506 | 8,295 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in undistributed net income of River Bank & Trust | (5,581) | (6,286) |
Deferred income tax expense | 5 | 7 |
(Increase) decrease in operating assets and (decrease) increase in operating liabilities: | ||
Other assets | (89) | 26 |
Accrued expenses and other liabilities | 321 | 5 |
Net cash from operating activities | 3,162 | 2,047 |
Cash Flows used for investing activities: | ||
Net cash received in acquisition | 241 | |
Payments to Peoples Southern Bank shareholders | (24,497) | |
Net cash used for investing activities | (24,256) | |
Cash flow from financing activities: | ||
Proceeds from note payable | 27,000 | |
Payments on note payable | (5,394) | (1,071) |
Proceeds from exercise of common stock options and warrants | 317 | 263 |
Proceeds from issuance of common stock | 8,832 | 85 |
Purchase of treasury stock | (146) | (579) |
Sale of treasury stock | 430 | 281 |
Cash dividends | (1,434) | (1,272) |
Net cash from financing activities | 29,605 | (2,293) |
Net Change In Cash And Cash Equivalents | 8,511 | (246) |
Cash and Cash Equivalents At Beginning Of Period | 1,619 | 1,865 |
Cash and Cash Equivalents At End Of Period | $ 10,130 | $ 1,619 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 31, 2018 | Dec. 31, 2015 | |
Finite Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 18,293 | $ 10,050 | $ 10,050 | $ 9,410 | |
Amortization of intangible assets | 627 | 559 | |||
Adjustment of goodwill | 640 | ||||
Increase in stock options and warrants of share holders holders equity due to adjustment on goodwill | $ 640 | ||||
PSB Bancshares, Inc | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 8,243 | ||||
Core Deposits | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Core deposit intangible | $ 7,413 | 2,763 | $ 2,800 | ||
Accelerated method for amortization | 8 years | ||||
Amortization of intangible assets | $ 474 | $ 559 | |||
Core Deposits | PSB Bancshares, Inc | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Core deposit intangible | $ 4,650 | ||||
Accelerated method for amortization | 10 years | ||||
Amortization of intangible assets | $ 153 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Changes to the Carrying Amount of Goodwill (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Balance at beginning of year | $ 10,050 |
Goodwill from current year PSB acquisition | 8,243 |
Balance at end of year | $ 18,293 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Core Deposit Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 |
Finite Lived Intangible Assets [Line Items] | |||
Net carrying amount | $ 5,583 | $ 1,560 | |
Core Deposits | |||
Finite Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 7,413 | 2,763 | $ 2,800 |
Less: accumulated amortization | (1,830) | (1,203) | |
Net carrying amount | $ 5,583 | $ 1,560 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expenses Related to Core Deposit Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite Lived Intangible Assets [Line Items] | ||
Net carrying amount | $ 5,583 | $ 1,560 |
Core Deposits | ||
Finite Lived Intangible Assets [Line Items] | ||
2019 | 1,253 | |
2020 | 1,075 | |
2021 | 897 | |
2022 | 720 | |
2023 | 542 | |
Afterward | 1,096 | |
Net carrying amount | 5,583 | $ 1,560 |
Core Deposits | Keystone | ||
Finite Lived Intangible Assets [Line Items] | ||
2019 | 388 | |
2020 | 303 | |
2021 | 217 | |
2022 | 132 | |
2023 | 46 | |
Net carrying amount | 1,086 | |
Core Deposits | PSB Bancshares, Inc | ||
Finite Lived Intangible Assets [Line Items] | ||
2019 | 865 | |
2020 | 772 | |
2021 | 680 | |
2022 | 588 | |
2023 | 496 | |
Afterward | 1,096 | |
Net carrying amount | $ 4,497 |