Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 01, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | FVCBankcorp, Inc. | |
Entity Central Index Key | 1,675,644 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 13,687,569 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 8,939 | $ 7,428 |
Interest-bearing deposits at other financial institutions | 46,396 | 15,139 |
Securities held-to-maturity (fair value of $1.7 million and $1.8 million at September 30, 2018 and December 31, 2017, respectively) | 1,761 | 1,760 |
Securities available-for-sale, at fair value | 111,370 | 115,952 |
Restricted stock, at cost | 3,800 | 3,438 |
Loans, net of allowance for loan losses of $8.6 million and $7.7 million at September 30, 2018 and December 31, 2017, respectively | 969,728 | 880,952 |
Premises and equipment, net | 1,420 | 1,236 |
Accrued interest receivable | 3,652 | 2,964 |
Prepaid expenses | 928 | 698 |
Deferred tax assets, net | 3,664 | 3,155 |
Core deposit intangible, net | 83 | 99 |
Bank owned life insurance (BOLI) | 16,297 | 15,969 |
Other real estate owned (OREO) | 3,866 | 3,866 |
Other assets | 3,533 | 568 |
Total assets | 1,175,437 | 1,053,224 |
Deposits: | ||
Noninterest-bearing | 211,808 | 175,446 |
Interest-bearing checking, savings and money market | 498,325 | 379,101 |
Time deposits | 283,853 | 373,616 |
Total deposits | 993,986 | 928,163 |
Federal funds purchased | 15,000 | |
Subordinated notes, net of issuance costs | 24,387 | 24,327 |
Accrued interest payable | 881 | 417 |
Accrued expenses and other liabilities | 2,407 | 2,034 |
Total liabilities | 1,036,661 | 954,941 |
Commitments and Contingent Liabilities | ||
Stockholders' Equity | ||
Common stock, $0.01 par value | 129 | 109 |
Additional paid-in capital | 107,358 | 74,008 |
Retained earnings | 35,318 | 25,859 |
Accumulated other comprehensive (loss), net | (4,029) | (1,693) |
Total stockholders' equity | 138,776 | 98,283 |
Total liabilities and stockholders' equity | $ 1,175,437 | $ 1,053,224 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Consolidated Balance Sheets | ||
Securities held to maturity, fair value | $ 1,706 | $ 1,762 |
Allowance for loan losses | $ 8,576 | $ 7,725 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 12,831,040 | 10,868,984 |
Common stock, shares outstanding | 12,831,040 | 10,868,984 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest and Dividend Income | ||||
Interest and fees on loans | $ 11,977 | $ 9,610 | $ 33,841 | $ 27,443 |
Interest and dividends on securities held-to-maturity | 13 | 13 | 39 | 39 |
Interest and dividends on securities available-for-sale | 661 | 613 | 1,992 | 1,800 |
Dividends on restricted stock | 57 | 52 | 170 | 169 |
Interest on deposits at other financial institutions | 165 | 23 | 242 | 50 |
Total interest and dividend income | 12,873 | 10,311 | 36,284 | 29,501 |
Interest Expense | ||||
Interest on deposits | 2,584 | 1,717 | 7,018 | 4,499 |
Interest on federal funds purchased | 16 | 1 | 17 | 3 |
Interest on short-term debt | 28 | 67 | 157 | |
Interest on long-term debt | 1 | |||
Interest on subordinated notes | 395 | 395 | 1,185 | 1,185 |
Total interest expense | 2,995 | 2,141 | 8,287 | 5,845 |
Net Interest Income | 9,878 | 8,170 | 27,997 | 23,656 |
Provision for loan losses | 351 | 250 | 990 | 765 |
Net interest income after provision for loan losses | 9,527 | 7,920 | 27,007 | 22,891 |
Noninterest Income | ||||
Service charges on deposit accounts | 158 | 146 | 452 | 402 |
Gains on sale of securities available-for-sale | 15 | 134 | ||
BOLI income | 110 | 115 | 329 | 740 |
Other fee income | 480 | 77 | 714 | 228 |
Total Noninterest Income | 748 | 353 | 1,495 | 1,504 |
Noninterest Expenses | ||||
Salaries and employee benefits | 3,491 | 2,950 | 10,000 | 8,798 |
Occupancy and equipment expense | 591 | 559 | 1,743 | 1,672 |
Data processing and network administration | 321 | 275 | 886 | 772 |
State franchise taxes | 296 | 252 | 888 | 789 |
Audit, legal and consulting fees | 147 | 123 | 434 | 352 |
Merger and acquisition expense | 274 | 671 | ||
Loan related expenses | 61 | 67 | 179 | 218 |
FDIC insurance | 133 | 92 | 358 | 304 |
Marketing, business development and advertising | 89 | 41 | 269 | 238 |
Director fees | 121 | 105 | 353 | 296 |
Postage, courier and telephone | 50 | 52 | 150 | 140 |
Internet banking | 83 | 63 | 225 | 178 |
Dues, memberships & publications | 36 | 32 | 118 | 92 |
Bank insurance | 47 | 35 | 127 | 100 |
Printing and supplies | 38 | 28 | 100 | 84 |
Bank charges | 33 | 17 | 102 | 54 |
State assessments | 34 | 38 | 106 | 97 |
Core deposits intangible amortization | 5 | 5 | 16 | 15 |
Other operating expenses | 98 | 127 | 305 | 225 |
Total noninterest expenses | 5,948 | 4,861 | 17,030 | 14,424 |
Net income before income tax expense | 4,327 | 3,412 | 11,472 | 9,971 |
Income tax expense | 942 | 1,177 | 2,013 | 3,287 |
Net income | $ 3,385 | $ 2,235 | $ 9,459 | $ 6,684 |
Earnings per share, basic | $ 0.30 | $ 0.21 | $ 0.85 | $ 0.65 |
Earnings per share, diluted | $ 0.27 | $ 0.19 | $ 0.78 | $ 0.60 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Consolidated Statements of Comprehensive Income | ||||
Net income | $ 3,385 | $ 2,235 | $ 9,459 | $ 6,684 |
Other comprehensive gain (loss): | ||||
Unrealized gain (loss) on securities available for sale, net of tax benefit of $144 and $621 for the three and nine months ended September 30, 2018, respectively, net of tax expense $56 and $242 for the three and nine months ended September 30, 2017, respectively. | (540) | 108 | (2,336) | 468 |
Reclassification adjustment for gains realized in income, net of tax of $0 for the three and nine months ended September 30, 2018, and net of tax $5 and $46 for the three and nine months ended September 30, 2017, respectively. | (10) | (88) | ||
Total other comprehensive income (loss) | (540) | 98 | (2,336) | 380 |
Total comprehensive income | $ 2,845 | $ 2,333 | $ 7,123 | $ 7,064 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Consolidated Statements of Comprehensive Income | ||||
Tax benefit (expense) securities available for sale | $ 144 | $ (56) | $ 621 | $ (242) |
Reclassification adjustment for gains realized in income, tax | $ 0 | $ 5 | $ 0 | $ 46 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Reconciliation of net income to net cash provided by operating activities: | ||
Net income | $ 9,459 | $ 6,684 |
Depreciation | 340 | 408 |
Provision for loan losses | 990 | 765 |
Net amortization of premium of securities | 419 | 430 |
Net amortization of deferred loan costs and purchase premiums | 491 | 965 |
Amortization of subordinated debt issuance costs | 60 | 60 |
Stock-based compensation expense | 531 | 480 |
BOLI income | (329) | (740) |
Realized gains on securities sales | (134) | |
Core deposits intangible amortization | 16 | 15 |
Changes in assets and liabilities: | ||
Increase in accrued interest receivable, prepaid expenses and other assets | (3,771) | (434) |
Increase (decrease) in accrued interest payable, accrued expenses and other liabilities | 837 | (805) |
Net cash provided by operating activities | 9,043 | 7,694 |
Cash Flows From Investing Activities | ||
Maturities of certificates of deposits purchased for investment | 245 | 250 |
Increase in interest-bearing deposits at other financial institutions | (31,257) | (18,617) |
Purchases of securities available-for-sale | (11,815) | (16,815) |
Proceeds from sales of securities available-for-sale | 0 | 1,586 |
Proceeds from redemptions of securities available-for-sale | 12,776 | 10,982 |
Net purchase of restricted stock | (362) | (175) |
Net increase in loans | (90,257) | (59,910) |
Proceeds of BOLI, net | (4,285) | |
Purchases of premises and equipment, net | (524) | (392) |
Net cash used in investing activities | (121,194) | (87,376) |
Cash Flows From Financing Activities | ||
Net increase (decrease) in noninterest-bearing, interest-bearing checking, savings, and money market deposits | 155,586 | (6,150) |
Net (decrease) increase in time deposits | (89,763) | 77,013 |
Increase in federal funds purchased | 15,000 | 100 |
Cash paid in lieu of fractional shares | (4) | |
Net increase in FHLB advances | 500 | |
Common stock issuance | 32,839 | 10,193 |
Net cash provided by financing activities | 113,662 | 81,652 |
Net increase in cash and cash equivalents | 1,511 | 1,970 |
Cash and cash equivalents, beginning of year | 7,428 | 5,174 |
Cash and cash equivalents, end of year | 8,939 | 7,144 |
Supplemental Disclosures of Cash Flow Information | ||
Cash payments for interest | 7,823 | 5,310 |
Cash payments for income taxes | 4,892 | 4,834 |
Supplemental Disclosures of Noncash Investing Activity | ||
Unrealized (losses) gains on securities available for sale | $ (2,957) | $ 580 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at the beginning of the period at Dec. 31, 2016 | $ 82 | $ 63,145 | $ 17,884 | $ (1,299) | $ 79,812 |
Balance at the beginning of the period (in shares) at Dec. 31, 2016 | 8,143 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 6,684 | 6,684 | |||
Other comprehensive income (loss) | 380 | 380 | |||
Common stock issuance at $20 per share | $ 5 | 9,995 | 10,000 | ||
Common stock issuance at $20 per share (in shares | 500 | ||||
5-for-4 stock split | $ 22 | (22) | (4) | (4) | |
5-for-4 stock split (in shares) | 2,171 | ||||
Common stock issuance for options exercised | 193 | 193 | |||
Common stock issuance for options exercised (in shares) | 43 | ||||
Stock-based compensation expense | 480 | 480 | |||
Balance at the end of the period at Sep. 30, 2017 | $ 109 | 73,791 | 24,564 | (919) | 97,545 |
Balance at the end of the period (in shares) at Sep. 30, 2017 | 10,857 | ||||
Balance at the beginning of the period at Dec. 31, 2017 | $ 109 | 74,008 | 25,859 | (1,693) | 98,283 |
Balance at the beginning of the period (in shares) at Dec. 31, 2017 | 10,869 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 9,459 | 9,459 | |||
Other comprehensive income (loss) | (2,336) | (2,336) | |||
Common stock issuance at $20 per share | $ 18 | 31,737 | 31,755 | ||
Common stock issuance at $20 per share (in shares | 1,750 | ||||
Common stock issuance for options exercised | $ 2 | 1,082 | 1,084 | ||
Common stock issuance for options exercised (in shares) | 212 | ||||
Stock-based compensation expense | 531 | 531 | |||
Balance at the end of the period at Sep. 30, 2018 | $ 129 | $ 107,358 | $ 35,318 | $ (4,029) | $ 138,776 |
Balance at the end of the period (in shares) at Sep. 30, 2018 | 12,831 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) | 9 Months Ended |
Sep. 30, 2017$ / shares | |
Consolidated Statements of Changes in Stockholders' Equity | |
Common stock issuance price (in dollars per share) | $ 20 |
Stock split ratio | 1.25 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Organization and Summary of Significant Accounting Policies | |
Organization and Summary of Significant Accounting Policies | Note 1. Organization and Summary of Significant Accounting Policies Organization FVCBankcorp, Inc. (the “Company”), a Virginia corporation, was formed in 2015 and is registered as a bank holding company under the Bank Holding Company Act of 1956, as amended. The Company is headquartered in Fairfax, Virginia. The Company conducts its business activities through the branch offices of its wholly owned subsidiary bank, FVCbank (the “Bank”). The Company exists primarily for the purposes of holding the stock of its subsidiary, the Bank. The Bank was organized under the laws of the Commonwealth of Virginia to engage in a general banking business serving the Washington, D.C. metropolitan area. The Bank commenced regular operations on November 27, 2007 and is a member of the Federal Reserve System and the Federal Deposit Insurance Corporation. It is subject to the regulations of the Federal Reserve System and the State Corporation Commission of Virginia. Consequently, it undergoes periodic examinations by these regulatory authorities. Basis of Presentation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. GAAP for interim financial information and follow general practice within the banking industry. Accordingly, the unaudited consolidated financial statements do not include all the information and footnotes required by U.S. GAAP for complete financial statements; however, in the opinion of management, all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the results of the interim periods presented have been made. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s audited financial statements for the year ended December 31, 2017, included in its Prospectus filed with the Securities and Exchange Commission on September 17, 2018. Certain prior period amounts have been reclassified to conform to current period presentation. Principles of Consolidation The consolidated financial statements include the accounts of the Company. All material intercompany balances and transactions have been eliminated in consolidation. Significant Accounting Policies The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States of America and conform to general practices within the banking industry. There have been no changes to these policies during the nine months ended September 30, 2018. Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016‑02, “Leases (Topic 842).” Among other things, in the amendments in ASU 2016‑02, lessees will be required to recognize the following for all leases (with the exception of short‑term leases) at the commencement date: (1) A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right‑of‑use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales‑type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The FASB made subsequent amendments to Topic 842 in July 2018 through ASU 2018-10 ("Codification Improvements to Topic 842, Leases.") and ASU 2018-11 ("Leases (Topic 842): Targeted Improvements"). Among these amendments is the provision in ASU 2018-11 that provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity's reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP (Topic 840, Leases). The Company has six leases and is currently assessing the impact that ASU 2016‑02 will have on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016‑13, “Financial Instruments -- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward‑looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available‑for‑sale debt securities and purchased financial assets with credit deterioration. The amendments in this ASU are effective for U.S. Securities and Exchange Commission (SEC) filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently identifying third party vendors to assist in the measurement of expected credit losses under this standard and has identified an implementation committee to assess the impact that ASU 2016‑13 will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017‑04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” The amendments in this ASU simplify how 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. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Public business entities that are SEC filers should adopt the amendments in this ASU for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of ASU 2017‑04 to have a material impact on its consolidated financial statements. 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 in this ASU shorten the amortization period for certain callable debt securities purchased at a premium. Upon adoption of the standard, premiums on these qualifying callable debt securities will be amortized to the earliest call date. Discounts on purchased debt securities will continue to be accreted to maturity. The amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Upon transition, entities should apply the guidance on a modified retrospective basis, with a cumulative‑effect adjustment to retained earnings as of the beginning of the period of adoption and provide the disclosures required for a change in accounting principle. The Company is currently assessing the impact that ASU 2017‑ 08 will have on its consolidated financial statements. In August 2017, the FASB issued ASU 2017‑12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” The amendments in this ASU modify the designation and measurement guidance for hedge accounting as well as provide for increased transparency regarding the presentation of economic results on both the financial statements and related footnotes. Certain aspects of hedge effectiveness assessments will also be simplified upon implementation of this update. The amendments are effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted, including adoption in any interim period. The Company is currently assessing the impact that ASU 2017‑12 will have on its consolidated financial statements. The Company does not expect the adoption of ASU 2017‑ 12 to have a material impact on its consolidated financial statements. In June 2018, the FASB issued ASU 2018‑07, “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share‑Based Payment Accounting.” The amendments expand the scope of Topic 718 to include share‑based payments issued to non‑employees for goods or services, which were previously excluded. The amendments will align the accounting for share‑based payments to nonemployees and employees more similarly. The amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2018‑07 to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement." The amendments modify the disclosure requirements in Topic 820 to add disclosures regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty. Certain disclosure requirements in Topic 820 are also removed or modified. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Certain of the amendments are to be applied prospectively while others are to be applied retrospectively. Early adoption is permitted. The Company does not expect the adoption of ASU 2018-13 to have a material impact on its consolidated financial statements. |
Stock Offering
Stock Offering | 9 Months Ended |
Sep. 30, 2018 | |
Stock Offering | |
Stock Offering | Note 2. Stock Offering During September 2018, the Company completed its initial public offering (the “IPO”), which resulted in $35.0 million in gross proceeds and $31.8 million, net of issuance costs, for which the Company issued 1.75 million shares of common stock at $20 per share. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2018 | |
Securities | |
Securities | Note 3. Securities Amortized cost and fair values of securities held‑to‑maturity and securities available‑for‑sale as of September 30, 2018 and December 31, 2017, are as follows: September 30, 2018 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value Held-to-maturity Securities of state and local municipalities tax exempt $ 264 $ — $ (10) $ 254 Securities of U.S. government and federal agencies 1,497 — (45) 1,452 Total Held-to-maturity Securities $ 1,761 $ — $ (55) $ 1,706 Available-for-sale Securities of U.S. government and federal agencies $ 1,000 $ — $ (66) $ 934 Securities of state and local municipalities tax exempt 3,682 — (105) 3,577 Securities of state and local municipalities taxable 2,432 — (93) 2,339 Corporate bonds 5,000 12 (81) 4,931 Certificates of deposit 245 — (1) 244 SBA pass-through securities 200 — (10) 190 Mortgage-backed securities 85,777 — (3,692) 82,085 Collateralized mortgage obligations 18,134 — (1,064) 17,070 Total Available-for-sale Securities $ 116,470 $ 12 $ (5,112) $ 111,370 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value Held-to-maturity Securities of state and local municipalities tax exempt $ 263 $ 3 $ — $ 266 Securities of U.S. government and federal agencies 1,497 — (1) 1,496 Total Held-to-maturity Securities $ 1,760 $ 3 $ (1) $ 1,762 Available-for-sale Securities of U.S. government and federal agencies $ 1,000 $ — $ (32) $ 968 Securities of state and local municipalities tax exempt 3,694 23 (1) 3,716 Securities of state and local municipalities taxable 2,591 3 (41) 2,553 Corporate bonds 5,000 57 (61) 4,996 Certificates of deposit 490 — — 490 SBA pass-through securities 254 — (8) 246 Mortgage-backed securities 84,614 — (1,401) 83,213 Collateralized mortgage obligations 20,453 — (683) 19,770 Total Available-for-sale Securities $ 118,096 $ 83 $ (2,227) $ 115,952 At September 30, 2018 securities in the amount of $545 thousand were pledged with the Federal Reserve Bank and $8.8 million with Treasury Board of Virginia at the Community Bankers’ Bank. There were no such securities pledged as of December 31, 2017. The following table shows fair value and gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2018 and December 31, 2017, respectively. The reference point for determining when securities are in an unrealized loss position is month‑end. Therefore, it is possible that a security’s market value exceeded its amortized cost on other days during the past twelve‑month period. Available‑for‑sale securities that have been in a continuous unrealized loss position are as follows: Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized At September 30, 2018 Value Losses Value Losses Value Losses Securities of U.S. government and federal agencies $ — $ — $ 934 $ (66) $ 934 $ (66) Securities of state and local municipalities tax exempt 3,577 (105) — — 3,577 (105) Securities of state and local municipalities taxable 758 (3) 1,581 (90) 2,339 (93) Corporate bonds 987 (13) 933 (68) 1,920 (81) Certificates of deposit 244 (1) — — 244 (1) SBA pass-through securities — — 190 (10) 190 (10) Mortgage-backed securities 12,883 (249) 69,202 (3,443) 82,085 (3,692) Collateralized mortgage obligations 1,028 (35) 16,042 (1,029) 17,070 (1,064) Total $ 19,477 $ (406) $ 88,882 $ (4,706) $ 108,359 $ (5,112) Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized At December 31, 2017 Value Losses Value Losses Value Losses Securities of U.S. government and federal agencies $ — $ — $ 968 $ (32) $ 968 $ (32) Securities of state and local municipalities tax exempt 272 (1) — — 272 (1) Securities of state and local municipalities taxable 497 (3) 1,278 (38) 1,775 (41) Corporate bonds 1,492 (7) 946 (54) 2,438 (61) Certificates of deposit 245 — — — 245 — SBA pass-through securities — — 246 (8) 246 (8) Mortgage-backed securities 38,039 (404) 44,663 (997) 82,702 (1,401) Collateralized mortgage obligations 2,731 (28) 17,040 (655) 19,771 (683) Total $ 43,276 $ (443) $ 65,141 $ (1,784) $ 108,417 $ (2,227) At September 30, 2018, the Company had two held‑to‑maturity securities in an unrealized loss position of less than twelve months. The fair value of the securities were $1.7 million and the unrealized loss was $55 thousand. At December 31, 2017, the Company had one held‑to‑maturity security in an unrealized loss position of less than twelve months. The fair value was $1.5 million and the unrealized loss was $1 thousand. Securities of U.S. government and federal agencies: The unrealized losses on one available‑for‑sale and one held‑to‑maturity securities were caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Securities of state and local municipalities: The unrealized losses on the investments in securities of state and local municipalities were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Five of the nine investments carry an S&P investment grade rating of AA+ or above, one has a rating of AA-, one has an AA rating, while the remaining two do not carry a rating. Corporate bonds: The unrealized losses on the investments in corporate bonds were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. One of these two investments carries an S&P investment grade rating of A-. The remaining investment does not carry a rating. Certificates of Deposit: The unrealized loss on the certificate of deposit was caused by interest rate increases. Certificates of deposit are cash deposits with a stated maturity at a correspondent bank of the Company. Because the Company does not intend to redeem the certificate prior to maturity, the Company does not consider that investment to be other‑than‑temporarily impaired at September 30, 2018. SBA pass‑through securities: The unrealized loss on the Company’s single investment in SBA pass‑through securities was caused by interest rate increases. Repayment of the principal on those investments is guaranteed by an agency of the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost basis of the Company’s investments. Because the decline in market value is attributable to changes in interest rates and not credit quality, the Company does not consider that investments to be other‑than‑temporarily impaired at September 30, 2018. Mortgage‑backed securities: The unrealized losses on the Company’s investment in sixty-two mortgage‑backed securities were caused by interest rate increases. The contractual cash flows of those investments are guaranteed by an agency of the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost basis of the Company’s investments. Because the decline in market value is attributable to changes in interest rates and not credit quality, the Company does not consider those investments to be other‑than‑temporarily impaired at September 30, 2018. Collateralized mortgage obligations (CMOs): The unrealized loss associated with thirty‑one CMOs was caused by interest rate increases. The contractual cash flows of these investments are guaranteed by an agency of the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost basis of the Company’s investments. Because the decline in market value is attributable to changes in interest rates and not credit quality, the Company does not consider those investments to be other‑than‑temporarily impaired at September 30, 2018. In general, while the Company may, from time to time, sell portions of its investment securities portfolio as part of an investment strategy, the unrealized losses within the investment securities portfolio as of September 30, 2018 does not cause the Company to consider these investments to be other-than-temporarily impaired. The amortized cost and fair value of securities as of September 30, 2018, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. September 30, 2018 Held-to-maturity Available-for-sale Amortized Fair Amortized Fair Cost Value Cost Value Less than 1 year $ — $ — $ 245 $ 244 After 1 year through 5 years — — 3,654 3,588 After 5 years through 10 years 1,761 1,706 26,783 25,818 After 10 years — — 85,788 81,720 Total $ 1,761 $ 1,706 $ 116,470 $ 111,370 For the nine months ended September 30, 2018 and September 30, 2017, proceeds from maturities, calls and principal repayments of securities were $12.8 million and $11.0 million, respectively. During the nine months ended September 30, 2018 and September 30, 2017, proceeds from sales of securities available‑for‑sale amounted to $0 and $1.6 million, gross realized gains were $0 and $134 thousand, respectively. There were no realized losses as of September 30, 2018 or September 30, 2017. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2018 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | Note 4. Loans and Allowance for Loan Losses A summary of loan balances by type follows: September 30, 2018 December 31, 2017 Commercial real estate $ 593,541 $ 526,657 Commercial and industrial 108,522 98,150 Commercial construction 144,830 123,444 Consumer residential 106,329 108,926 Consumer nonresidential 26,327 32,232 $ 979,549 $ 889,409 Less: Allowance for loan losses 8,576 7,725 Unearned income and (unamortized premiums), net 1,245 732 Loans, net $ 969,728 $ 880,952 An analysis of the allowance for loan losses for the three and nine months ended September 30, 2018 and 2017, and for the year ended December 31, 2017, follows: Allowance for Loan Losses For the three months ended September 30, 2018 Commercial Commercial and Commercial Consumer Consumer Real Estate Industrial Construction Residential Nonresidential Unallocated Total Allowance for credit losses: Beginning Balance $ 5,275 $ 869 $ 1,306 $ 604 $ 208 $ 36 $ 8,298 Charge-offs — — — — (118) — (118) Recoveries — 10 — — 35 — 45 Provision 209 18 31 10 69 14 351 Ending Balance $ 5,484 $ 897 $ 1,337 $ 614 $ 194 $ 50 $ 8,576 Allowance for Loan Losses For the nine months ended September 30, 2018 Commercial Commercial and Commercial Consumer Consumer Real Estate Industrial Construction Residential Nonresidential Unallocated Total Allowance for credit losses: Beginning Balance $ 4,832 $ 768 $ 1,191 $ 626 $ 268 $ 40 $ 7,725 Charge-offs — (86) — — (128) — (214) Recoveries — 40 — — 35 — 75 Provision 652 175 146 (12) 19 10 990 Ending Balance $ 5,484 $ 897 $ 1,337 $ 614 $ 194 $ 50 $ 8,576 Allowance for Loan Losses For the three months ended September 30, 2017 Commercial Commercial and Commercial Consumer Consumer Real Estate Industrial Construction Residential Nonresidential Unallocated Total Allowance for credit losses: Beginning Balance $ 4,583 $ 817 $ 907 $ 571 $ 106 $ 28 $ 7,012 Charge-offs — — — — (33) — (33) Recoveries — 42 — — — — 42 Provision 149 (118) 68 19 30 102 250 Ending Balance $ 4,732 $ 741 $ 975 $ 590 $ 103 $ 130 $ 7,271 Allowance for Loan Losses For the nine months ended September 30, 2017 Commercial Commercial and Commercial Consumer Consumer Real Estate Industrial Construction Residential Nonresidential Unallocated Total Allowance for credit losses: Beginning Balance $ 4,266 $ 1,032 $ 375 $ 500 $ 121 $ 158 $ 6,452 Charge-offs — (44) — — (33) — (77) Recoveries — 98 — — 33 — 131 Provision 466 (345) 600 90 (18) (28) 765 Ending Balance $ 4,732 $ 741 $ 975 $ 590 $ 103 $ 130 $ 7,271 Allowance for Loan Losses At December 31, 2017 Commercial Commercial and Commercial Consumer Consumer Real Estate Industrial Construction Residential Nonresidential Unallocated Total Allowance for credit losses: Beginning Balance $ 4,266 $ 1,032 $ 375 $ 500 $ 121 $ 158 $ 6,452 Charge-offs — (44) — — (33) — (77) Recoveries — 117 — — 33 — 150 Provision 566 (337) 816 126 147 (118) 1,200 Beginning Balance $ 4,832 $ 768 $ 1,191 $ 626 $ 268 $ 40 $ 7,725 The following tables present the recorded investment in loans and impairment at September 30, 2018 and December 31, 2017, by portfolio segment: Allowance for Loan Losses At September 30, 2018 Commercial Commercial Commercial Consumer Consumer Real Estate and Industrial Construction Residential Nonresidential Unallocated Total Allowance for credit losses: Ending Balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 5,484 897 1,337 614 194 50 8,576 $ 5,484 $ 897 $ 1,337 $ 614 $ 194 $ 50 $ 8,576 Loans Receivable At September 30, 2018 Commercial Commercial Commercial Consumer Consumer Real Estate and Industrial Construction Residential Nonresidential Unallocated Total Financing receivables: Ending Balance Individually evaluated for impairment $ 724 $ 128 $ — $ 587 $ — $ — $ 1,439 Collectively evaluated for impairment 592,817 108,394 144,830 105,742 26,327 — 978,110 $ 593,541 $ 108,522 $ 144,830 $ 106,329 $ 26,327 $ — $ 979,549 Allowance for Loan Losses At December 31, 2017 Commercial Commercial Commercial Consumer Consumer Real Estate and Industrial Construction Residential Nonresidential Unallocated Total Allowance for credit losses: Ending Balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 4,832 768 1,191 626 268 40 7,725 $ 4,832 $ 768 $ 1,191 $ 626 $ 268 $ 40 $ 7,725 Loans Receivable At December 31, 2017 Commercial Commercial Commercial Consumer Consumer Real Estate and Industrial Construction Residential Nonresidential Unallocated Total Financing receivables: Ending Balance Individually evaluated for impairment $ 1,882 $ 2,846 $ — $ 587 $ 5 $ — $ 5,320 Collectively evaluated for impairment 524,775 95,304 123,444 108,339 32,227 — 884,089 $ 526,657 $ 98,150 $ 123,444 $ 108,926 $ 32,232 $ — $ 889,409 Impaired loans by class at September 30, 2018 and December 31, 2017, are summarized as follows: Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized September 30, 2018 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial and industrial — — — — — Commercial construction — — — — — Consumer residential — — — — — Consumer nonresidential — — — — — $ — $ — $ — $ — $ — September 30, 2018 With no related allowance: Commercial real estate $ 724 $ 735 $ — $ 723 $ 31 Commercial and industrial 128 142 — 287 14 Commercial construction — — — — — Consumer residential 587 587 — 587 21 Consumer nonresidential — — — — — $ 1,439 $ 1,464 $ — $ 1,597 $ 66 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized December 31, 2017 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial and industrial — — — — — Commercial construction — — — — — Consumer residential — — — — — Consumer nonresidential — — — — — $ — $ — $ — $ — $ — December 31, 2017 With no related allowance: Commercial real estate $ 1,882 $ 1,882 $ — $ 1,894 $ 108 Commercial and industrial 2,846 2,860 — 2,516 150 Commercial construction — — — — — Consumer residential 587 587 — 587 24 Consumer nonresidential 5 5 — 8 1 $ 5,320 $ 5,334 $ — $ 5,005 $ 283 No additional funds are committed to be advanced in connection with the impaired loans. There were no nonaccrual loans excluded from the impaired loan disclosure. The Company 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, collateral adequacy, credit documentation, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis typically includes larger, non‑homogeneous loans such as commercial real estate and commercial and industrial loans. This analysis is performed on an ongoing basis as new information is obtained. The Company uses the following definitions for risk ratings: Pass —Loans listed as pass include larger non‑homogeneous loans not meeting the risk rating definitions below and smaller, homogeneous loans not assessed on an individual basis. Special Mention —Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard —Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well‑defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the enhanced possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful —Loans classified as doubtful include those loans which have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, based on currently known facts, conditions and values, improbable. Loss —Loans classified as loss include those loans which are considered uncollectible and of such little value that their continuance as loans is not warranted. Even though partial recovery may be achieved in the future, it is neither practical nor desirable to defer writing off these loans. Based on the most recent analysis performed, the risk category of loans by class of loans was as follows as of September 30, 2018 and December 31, 2017: As of September 30, 2018 Commercial Real Commercial and Commercial Consumer Consumer Estate Industrial Construction Residential Nonresidential Total Grade: Pass $ 592,684 $ 107,226 $ 144,830 $ 102,460 $ 26,308 $ 973,508 Special mention 675 199 — 3,282 19 4,175 Substandard 182 1,097 — 587 — 1,866 Doubtful — — — — — — Loss — — — — — — Total $ 593,541 $ 108,522 $ 144,830 $ 106,329 $ 26,327 $ 979,549 As of December 31, 2017 Commercial Real Commercial and Commercial Consumer Consumer Estate Industrial Construction Residential Nonresidential Total Grade: Pass $ 525,808 $ 95,131 $ 123,444 $ 106,700 $ 32,208 $ 883,291 Special mention 695 543 — 1,639 24 2,901 Substandard 154 2,476 — 587 — 3,217 Doubtful — — — — — — Loss — — — — — — Total $ 526,657 $ 98,150 $ 123,444 $ 108,926 $ 32,232 $ 889,409 Past due and nonaccrual loans presented by loan class were as follows at September 30, 2018 and December 31, 2017: As of September 30, 2018 30 - 59 days 60 - 89 days 90 days or more Total 90 days past due past due past due past due past due Current Total loans and still accruing Nonaccruals Commercial real estate $ 2,097 $ 2,489 $ 690 $ 5,276 $ 588,265 $ 593,541 690 $ 183 Commercial and industrial 917 1,738 — 2,655 105,867 108,522 — — Commercial construction — — 561 561 144,269 144,830 561 — Consumer residential 850 — 587 1,437 104,892 106,329 — 587 Consumer nonresidential 65 73 — 138 26,189 26,327 — — Total $ 3,929 $ 4,300 $ 1,838 $ 10,067 $ 969,482 $ 979,549 $ 1,251 $ 770 As of December 31, 2017 30 - 59 days 60 - 89 days 90 days or more Total 90 days past due past due past due past due past due Current Total loans and still accruing Nonaccruals Commercial real estate $ — $ — $ 154 $ 154 $ 526,503 $ 526,657 $ — $ 154 Commercial and industrial — — 48 48 98,102 98,150 48 — Commercial construction — 911 — 911 122,533 123,444 — — Consumer residential 275 — 587 862 108,064 108,926 — 587 Consumer nonresidential — — — — 32,232 32,232 — — Total $ 275 $ 911 $ 789 $ 1,975 $ 887,434 $ 889,409 $ 48 $ 741 There were overdrafts of $26 thousand and $162 thousand at September 30, 2018 and December 31, 2017, which have been reclassified from deposits to loans. At September 30, 2018 and December 31, 2017 loans with a carrying value of $179.0 million and $128.7 million were pledged to the Federal Home Loan Bank of Atlanta. There were no defaults of troubled debt restructurings (TDR’s) where the default occurred within twelve months of the restructuring during the nine months ended September 30, 2018. There were no TDR’s originated in the nine months ended September 30, 2018. The following table presents the TDR’s originated during the nine months ended September 30, 2017: For the nine months ended September 30, 2017 Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Troubled Debt Restructurings Contracts Investment Investment Commercial real estate — $ — $ — Commercial and industrial 1 204 197 Commercial construction — — — Consumer residential — — — Consumer nonresidential 1 9 8 Consumer construction — — — Total 2 $ 213 $ 205 As of September 30, 2018, and December 31, 2017, the Company has a recorded investment in troubled debt restructurings of $267 thousand and $1.7 million, respectively. The concessions made in troubled debt restructurings were extensions of the maturity dates or reductions in the stated interest rate for the remaining life of the debt. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 5. Derivative Financial Instruments In March 2018, the Company entered into Interest Rate Swap Agreements (“Swap Agreements”) to facilitate the risk management strategies needed in order to accommodate the needs of our banking customers. The Company mitigates the risk of entering into these loan agreements by entering into equal and offsetting swap agreements with highly‑rated third party financial institutions. These back‑to‑back swap agreements are free‑standing derivatives and are recorded at fair value in the Company’s consolidated balance sheet (asset positions are included in other assets and liability positions are included in other liabilities) as of September 30, 2018. The Company is party to master netting arrangements with its financial institution counterparty; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Parties to a centrally cleared over‑the‑counter derivative exchange daily payments that reflect the daily change in value of the derivative. These payments, commonly referred to as variation margin, are recorded as settlements of the derivatives’ mark‑to‑market exposure rather than collateral against the exposures, which effectively results in any centrally cleared derivative having a Level 2 fair value that approximates zero on a daily basis, and therefore, these swap agreements were not included in the offsetting table in the Fair Value Measurement section. There were no such agreements outstanding as of December 31, 2017. The notional amount and fair value of the Company’s derivative financial instruments as of September 30, 2018 were as follows: September 30, 2018 Notional Amount Fair Value Interest Rate Swap Agreements Receive Fixed/Pay Variable Swaps $ 27,175 $ (336) Pay Fixed/Receive Variable Swaps 27,175 336 |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 9 Months Ended |
Sep. 30, 2018 | |
Financial Instruments with Off-Balance Sheet Risk | |
Financial Instruments with Off-Balance Sheet Risk | Note 6. Financial Instruments with Off‑Balance Sheet Risk The Company is party to credit‑related financial instruments with off‑balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on‑balance sheet instruments. At September 30, 2018 and December 31, 2017, the following financial instruments were outstanding which contract amounts represent credit risk: September 30, 2018 December 31, 2017 Commitments to grant loans $ 42,675 $ 23,078 Unused commitments to fund loans and lines of credit 188,891 170,802 Commercial and standby letters of credit 9,155 9,725 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer. Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer. Commercial and standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. Essentially all letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company generally holds collateral supporting those commitments, if deemed necessary. The Company maintains its cash accounts with the Federal Reserve and correspondent banks. The total amount of cash on deposit in correspondent banks exceeding the federally insured limits was $2.1 million and $608 thousand at September 30, 2018 and December 31, 2017, respectively. |
Stock-Based Compensation Plan
Stock-Based Compensation Plan | 9 Months Ended |
Sep. 30, 2018 | |
Stock-Based Compensation Plan | |
Stock-Based Compensation Plan | Note 7. Stock‑Based Compensation Plan The Company’s Amended and Restated 2008 Option Plan (the Plan), which is shareholder‑approved, was adopted to advance the interests of the Company by providing selected key employees of the Company, their affiliates, and directors with the opportunity to acquire shares of common stock. In June 2018, the shareholders approved an amendment to the Amended and Restated 2008 Plan to increase the number of shares authorized for issuance under the Plan by 200,000 shares. The maximum number of shares with respect to which awards may be made is 2,529,296 shares of common stock, subject to adjustment for certain corporate events. Option awards are generally granted with an exercise price equal to the market price of the Company’s stock at the date of grant, generally vest annually over four years of continuous service and have ten year contractual terms. At September 30, 2018, 240,035 shares were available to grant under the Plan. No options were granted during the nine months ended September 30, 2018. For the nine months ended September 30, 2017, 625 options were granted. For the nine months ended September 30, 2018, 7,643 options were withheld from issuance upon exercise of the options in order to cover the cost of the exercise by the participant. A summary of option activity under the Plan as of September 30, 2018, and changes during the nine months ended is presented below : Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Shares Price Term Value (1) Outstanding at January 1, 2018 2,218,210 $ 7.74 5.51 Granted — — Exercised (218,981) 5.55 Forfeited or expired (12,025) 7.43 Outstanding at September 30, 2018 1,987,204 $ 7.99 5.22 $ 23,470,715 Exercisable at September 30, 2018 1,725,192 $ 7.61 4.92 $ 21,028,658 (1) The aggregate intrinsic value of stock options represents the total pre‑tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on September 30, 2018. This amount changes based on changes in the market value of the Company’s stock. The compensation cost that has been charged to income for the plan was $531 thousand and $480 thousand for the nine months ended September 30, 2018 and 2017, respectively. As of September 30, 2018, there was unamortized compensation expense of $404 thousand that will be amortized over a weighted average period of 23 months. Tax benefits recognized for qualified stock options during the nine months ended September 30, 2018 and 2017 totaled $288 thousand and $163 thousand. A summary of the Company’s restricted stock grant activity as of September 30, 2018 is shown below. Prior to January 1, 2017, the Company had no restricted stock grants outstanding. Weighted Average Number of Grant Date Shares Fair Value Nonvested at January 1, 2018 66,155 $ 17.50 Granted — — Vested (718) 16.41 Forfeited (680) 17.55 Balance at September 30, 2018 64,757 $ 17.52 As of September 30, 2018, there was $903 thousand of total unrecognized compensation cost related to nonvested restricted shares granted under the Plan. The cost is expected to be recognized over a weighted‑average period of 39 months. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Measurements | |
Fair Value Measurements | Note 8. Fair Value Measurements Determination of Fair Value The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with Fair Value Measurements and Disclosures topic of FASB ASC, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. Fair Value Hierarchy In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured 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. Level 1 — Valuation is based on quoted prices in active markets for identical assets and liabilities. Level 2 — Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model‑based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. Level 3 — Valuation is based on model‑based techniques that use one or more significant inputs or assumptions that are unobservable in the market. The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements: Securities available‑for‑sale : Securities available‑for‑sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that considers observable market data (Level 2). The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017: Fair Value Measurements at September 30, 2018 Using Quoted Prices in Active Significant Markets for Other Significant Balance as of Identical Observable Unobservable September 30, Assets Inputs Inputs Description 2018 (Level 1) (Level 2) (Level 3) Assets Available-for-sale Securities of U.S. government and federal agencies $ 934 $ — $ 934 $ — Securities of state and local municipalities tax exempt 3,577 — 3,577 — Securities of state and local municipalities taxable 2,339 — 2,339 — Corporate bonds 4,931 — 4,931 — Certificates of deposit 244 — 244 — SBA pass-through securities 190 — 190 — Mortgage-backed securities 82,085 — 82,085 — Collateralized mortgage obligations 17,070 — 17,070 — Total Available-for-Sale Securities $ 111,370 $ — $ 111,370 $ — Fair Value Measurements at December 31, 2017 Using Quoted Prices in Active Significant Markets for Other Significant Balance as of Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2017 (Level 1) (Level 2) (Level 3) Assets Available-for-sale Securities of U.S. government and federal agencies $ 968 $ — $ 968 $ — Securities of state and local municipalities tax exempt 3,716 — 3,716 — Securities of state and local municipalities taxable 2,553 — 2,553 — Corporate bonds 4,996 — 4,996 — Certificates of deposit 490 — 490 — SBA pass-through securities 246 — 246 — Mortgage-backed securities 83,213 — 83,213 — Collateralized mortgage obligations 19,770 — 19,770 — Total Available-for-Sale Securities $ 115,952 $ — $ 115,952 $ — Certain financial assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower of cost or market accounting or write‑downs of individual assets. The following describes the valuation techniques used by the Company to measure certain financial assets recorded at fair value on a nonrecurring basis in the financial statements: Impaired Loans : Loans are designated as impaired when, in the judgment of management 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. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Fair value is measured based on the value of the collateral securing the loans. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is determined utilizing a market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company using observable market data (Level 2). However, if the collateral is a house or building in the process of construction, has the value derived by discounting comparable sales due to lack of similar properties, or is discounted by the Company due to marketability, then the fair value is considered Level 3. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business’s financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Impaired loans allocated to the Allowance for Loan Losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Statements of Income. No loans were recorded at fair value at September 30, 2018 or December 31, 2017. Other Real Estate Owned: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach with data from comparable properties. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available, which results in a Level 3 classification of the inputs for determining fair value. Other real estate owned properties are evaluated regularly for impairment and adjusted accordingly. The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis at September 30, 2018 and December 31, 2017: Fair Value Measurements Using Quoted Prices Balance as of in Active Significant September 30, Markets for Other Significant 2018 and Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2017 (Level 1) (Level 2) (Level 3) Assets Other real estate owned $ 3,866 $ — $ — $ 3,866 The following table displays quantitative information about Level 3 Fair Value Measurements for September 30, 2018 and December 31, 2017: Quantitative information about Level 3 Fair Value Measurements Assets Fair Value Valuation Technique(s) Unobservable input Range Other real estate owned $ 3,866 Discounted appraised value Selling costs 10.51 % The following presents the carrying amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2018 and December 31, 2017. Fair values for September 30, 2018 are estimated under the exit price notion in accordance with the prospective adoption of ASU 2016‑01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” Fair values for December 31, 2017 are estimated under the guidance in effect for that period, which did not require use of the exit price notion. Fair Value Measurements as of September 30, 2018, using Quoted Prices in Active Markets for Significant Significant Identical Unobservable Unobservable Carrying Assets Inputs Inputs Amount Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 8,939 $ 8,939 $ — $ — Interest-bearing deposits at other institutions 46,396 46,396 — — Securities held-to-maturity 1,761 — 1,706 — Securities available-for-sale 111,370 — 111,370 — Restricted stock 3,800 — 3,800 — Loans, net 969,728 — — 960,319 Bank owned life insurance 16,297 — 16,297 — Accrued interest receivable 3,652 — 3,652 — Financial liabilities: Checking, savings and money market accounts $ 710,133 $ — $ 710,133 $ — Time deposits 283,853 — 283,211 — Federal funds purchased 15,000 — 15,000 — Subordinated notes 24,387 — 23,222 — Accrued interest payable 881 — 881 — Fair Value Measurements as of December 31, 2017, using Quoted Prices in Active Markets for Significant Significant Identical Unobservable Unobservable Carrying Assets Inputs Inputs Amount Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 7,428 $ 7,428 $ — $ — Interest-bearing deposits at other institutions 15,139 15,139 — — Securities held-to-maturity 1,760 — 1,762 Securities available-for-sale 115,952 — 115,952 — Restricted stock 3,438 — 3,438 — Loans, net 880,952 — — 876,569 Bank owned life insurance 15,969 — 15,969 — Accrued interest receivable 2,964 — 2,964 — Financial liabilities: Checking, savings and money market accounts $ 554,547 $ — $ 554,547 $ — Time deposits 373,616 — 371,782 — Subordinated notes 24,327 — 23,462 — Accrued interest payable 417 — 417 — |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share | |
Earnings Per Share | Note 9. Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if contracts to issue common stock were exercised or converted into common stock, or resulted in the issuance of stock which then shared in the earnings of the Company. The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares of dilutive potential common stock. Dilutive potential common stock has no effect on income available to common shareholders. There were 0 and 3,500 shares excluded from the calculation for September 30, 2018 and 2017, respectively, as they were anti‑dilutive. Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net income $ 3,385 $ 2,235 $ 9,459 $ 6,684 Weighted average number of shares 11,325 10,479 11,094 10,288 Options effect of dilutive securities 1,145 1,105 1,102 944 Weighted average diluted shares 12,470 11,584 12,196 11,232 Basic EPS $ 0.30 $ 0.21 $ 0.85 $ 0.65 Diluted EPS $ 0.27 $ 0.19 $ 0.78 $ 0.60 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | Note 10. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (AOCI) for the three and nine months ended September 30, 2018 and 2017 are shown in the following table. The Company has only one component, which is available‑for‑sale securities, for the periods presented. Three Months Ended Nine Months Ended September 30, September 30, Available-for-Sale Securities 2018 2017 2018 2017 Balance, beginning of period $ (3,489) $ (1,017) $ (1,693) $ (1,299) Net unrealized gains (losses) during the period (540) 108 (2,336) 468 Net reclassification adjustment for gains realized in income — (10) — (88) Other comprehensive income (loss), net of tax (540) 98 (2,336) 380 Balance, end of period $ (4,029) $ (919) $ (4,029) $ (919) The following table presents information related to reclassifications from accumulated other comprehensive income. Amount Reclassified from AOCI into Income For the Three Months Ended For the Nine Months Ended September 30, September 30, Details about AOCI 2018 2017 2018 2017 Gains on sale of available-for-sale securities $ — $ 15 $ — $ 134 Income tax expense — (5) — (46) Total $ — $ 10 $ — $ 88 |
Federal Home Loan Bank (FHLB) A
Federal Home Loan Bank (FHLB) Advances and Other Borrowings | 9 Months Ended |
Sep. 30, 2018 | |
Federal Home Loan Bank (FHLB) Advances and Other Borrowings | |
Federal Home Loan Bank (FHLB) Advances and Other Borrowings | Note 11. Federal Home Loan Bank (FHLB) Advances and Other Borrowings FHLB advances and other borrowings at September 30, 2018 consist of the following: Weighted Amount Average Rate Federal funds purchased $ 15,000 2.35 % FHLB advances — — Total borrowings $ 15,000 2.35 % At September 30, 2018, 1‑4 family residential loans with a book value of $2.1 million, multi‑family residential loans with a book value of $11.3 million, home equity lines of credit with a book value of $15.5 million and commercial real estate loans with book value of $103.6 million were pledged against an available line of credit with the Federal Home Loan Bank totaling $132.5 million as of September 30, 2018. The Bank obtained a letter of credit with the FHLB in the amount of $80.0 million for the purpose of collateral against Virginia public deposits. The remaining lendable collateral value at September 30, 2018 totaled $52.5 million. The Company has unsecured lines of credit with correspondent banks totaling $144.0 million at September 30, 2018 and $44.0 million at December 31, 2017, available for overnight borrowing. At September 30, 2018 and December 31, 2017, $15.0 million and $0, respectively, of these lines of credit with correspondent banks were drawn upon. |
Subordinated Notes
Subordinated Notes | 9 Months Ended |
Sep. 30, 2018 | |
Subordinated Notes | |
Subordinated Notes | Note 12. Subordinated Notes On June 20, 2016, the Company issued $25 million in private placement of fixed‑to‑floating subordinated notes due June 30, 2026. Interest is payable at 6.00% per annum, from and including June 20, 2016 to, but excluding June 30, 2021, payable semi‑annually in arrears. From and including June 30, 2021 to the maturity date or early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month LIBOR rate plus 487 basis points, payable quarterly in arrears. The Company may, at its option, beginning with the interest payment date of June 30, 2021 and on any scheduled interest payment date thereafter redeem the subordinated notes, in whole or in part, upon not fewer than 30 nor greater than 60 days’ notice to holders, at a redemption price equal to 100% of the principal amount of the subordinated notes to be redeemed plus accrued and unpaid interest to, but excluding, the date of redemption. Any partial redemption will be made pro rata among all of the holders. The subordinated notes qualify as Tier 2 capital for the Company to the fullest extent permitted under the BASEL III capital rules. When contributed to the capital of the Bank, the proceeds of the subordinated notes may be included in Tier 1 capital for the Bank. At September 30, 2018 and December 31, 2017, $21 million of the proceeds of the Company’s subordinated notes have been included in the Bank’s Tier 1 capital. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition | |
Revenue Recognition | Note 13. Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014‑09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. The implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, gain on sale of securities, BOLI income, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees, merchant income, and insurance commissions. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams in‑scope of Topic 606 are discussed below. Service Charges on Deposit Accounts Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and personal checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Fees, Exchange and Other Service Charges Fees, exchange, and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non‑Company ATM or a non‑Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Other Other noninterest income consists of insurance commissions and other miscellaneous revenue streams not meeting the criteria above. The Company receives monthly recurring commissions based as a percentage of premiums issued and revenue is recognized when received. Any residual miscellaneous fees are recognized as they occur, and therefore, the Company determined this consistent practice satisfies the obligation for performance. The following presents noninterest income, segregated by revenue streams in‑scope and out‑of‑scope of Topic 606, for the three and nine months ended September 30, 2018 and 2017: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Noninterest Income In-scope of Topic 606 Service Charges on Deposit Accounts $ 158 $ 146 $ 452 $ 402 Fees, Exchange, and Other Service Charges 60 50 177 141 Other 10 7 37 40 Noninterest Income (in-scope of Topic 606) 228 203 666 583 Noninterest Income (out-scope of Topic 606) 520 150 829 921 Total Noninterest Income $ 748 $ 353 $ 1,495 $ 1,504 Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long‑term revenue contracts with customers, and therefore, does not experience significant contract balances. As of September 30, 2018, the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events | |
Subsequent Events | Note 14. Subsequent Events In accordance with ASC 855-10, "Subsequent Events," the Company evaluates subsequent events that have occurred after the balance sheet date but before the financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, and (2) nonrecognized, or those that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. On October 12, 2018, the Company announced the completion of its acquisition of Colombo Bank ("Colombo"), pursuant to a previously announced definitive merger agreement. Colombo, which was headquartered in Rockville, Maryland, merged into FVCbank effective October 12, 2018 adding five banking locations in Washington, D.C., and Montgomery County and the City of Baltimore in Maryland. Pursuant to the terms of the merger agreement, based on the average closing price of the Company's common stock during the five trading day period ended on October 10, 2018, the second trading day prior to closing, of $19.614 (the Average Closing Price") holders of shares of Colombo common stock received 0.002217 shares of the Company's common stock and $0.053157 in cash for each share of Colombo common stock held immediately prior to the effective date of the Merger, plus cash in lieu of fractional shares at a rate equal to the Average Closing Price, and subject to the right of holders of Colombo common stock who own fewer than 45,086 shares of Colombo common stock after aggregation of all shares held in the same name, and who make a timely election, to receive only cash in an amount equal to $0.096649 per share of Colombo common stock. As a result of the merger, 763,051 shares of the Company's common stock were issued in exchange for outstanding shares of Colombo common stock. The Company's third quarter results do not include the financial results of Colombo because it was acquired after the close of the third quarter. As of September 30, 2018 Colombo had total assets of $188.7 million, total loans of $147.1 million, and total deposits of $138.7 million. On October 17, 2018, the Company announced that the underwriters of the Company’s recently completed IPO exercised, in part, their overallotment option by purchasing an additional 93,478 shares of common stock at the public offering price of $20 per share. The net proceeds to the Company of the option exercise, after deducting the underwriting discount, was approximately $1.7 million, and the total net proceeds of the offering to the Company, after deducting underwriting discounts and estimated offering expenses, was $33.5 million. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization and Summary of Significant Accounting Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016‑02, “Leases (Topic 842).” Among other things, in the amendments in ASU 2016‑02, lessees will be required to recognize the following for all leases (with the exception of short‑term leases) at the commencement date: (1) A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right‑of‑use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales‑type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The FASB made subsequent amendments to Topic 842 in July 2018 through ASU 2018-10 ("Codification Improvements to Topic 842, Leases.") and ASU 2018-11 ("Leases (Topic 842): Targeted Improvements"). Among these amendments is the provision in ASU 2018-11 that provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity's reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP (Topic 840, Leases). The Company has six leases and is currently assessing the impact that ASU 2016‑02 will have on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016‑13, “Financial Instruments -- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward‑looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available‑for‑sale debt securities and purchased financial assets with credit deterioration. The amendments in this ASU are effective for U.S. Securities and Exchange Commission (SEC) filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently identifying third party vendors to assist in the measurement of expected credit losses under this standard and has identified an implementation committee to assess the impact that ASU 2016‑13 will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017‑04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” The amendments in this ASU simplify how 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. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Public business entities that are SEC filers should adopt the amendments in this ASU for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of ASU 2017‑04 to have a material impact on its consolidated financial statements. 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 in this ASU shorten the amortization period for certain callable debt securities purchased at a premium. Upon adoption of the standard, premiums on these qualifying callable debt securities will be amortized to the earliest call date. Discounts on purchased debt securities will continue to be accreted to maturity. The amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Upon transition, entities should apply the guidance on a modified retrospective basis, with a cumulative‑effect adjustment to retained earnings as of the beginning of the period of adoption and provide the disclosures required for a change in accounting principle. The Company is currently assessing the impact that ASU 2017‑ 08 will have on its consolidated financial statements. In August 2017, the FASB issued ASU 2017‑12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” The amendments in this ASU modify the designation and measurement guidance for hedge accounting as well as provide for increased transparency regarding the presentation of economic results on both the financial statements and related footnotes. Certain aspects of hedge effectiveness assessments will also be simplified upon implementation of this update. The amendments are effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted, including adoption in any interim period. The Company is currently assessing the impact that ASU 2017‑12 will have on its consolidated financial statements. The Company does not expect the adoption of ASU 2017‑ 12 to have a material impact on its consolidated financial statements. In June 2018, the FASB issued ASU 2018‑07, “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share‑Based Payment Accounting.” The amendments expand the scope of Topic 718 to include share‑based payments issued to non‑employees for goods or services, which were previously excluded. The amendments will align the accounting for share‑based payments to nonemployees and employees more similarly. The amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2018‑07 to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement." The amendments modify the disclosure requirements in Topic 820 to add disclosures regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty. Certain disclosure requirements in Topic 820 are also removed or modified. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Certain of the amendments are to be applied prospectively while others are to be applied retrospectively. Early adoption is permitted. The Company does not expect the adoption of ASU 2018-13 to have a material impact on its consolidated financial statements. |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Securities | |
Schedule of amortized cost and fair values of securities held-to-security and securities available-for-sale | September 30, 2018 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value Held-to-maturity Securities of state and local municipalities tax exempt $ 264 $ — $ (10) $ 254 Securities of U.S. government and federal agencies 1,497 — (45) 1,452 Total Held-to-maturity Securities $ 1,761 $ — $ (55) $ 1,706 Available-for-sale Securities of U.S. government and federal agencies $ 1,000 $ — $ (66) $ 934 Securities of state and local municipalities tax exempt 3,682 — (105) 3,577 Securities of state and local municipalities taxable 2,432 — (93) 2,339 Corporate bonds 5,000 12 (81) 4,931 Certificates of deposit 245 — (1) 244 SBA pass-through securities 200 — (10) 190 Mortgage-backed securities 85,777 — (3,692) 82,085 Collateralized mortgage obligations 18,134 — (1,064) 17,070 Total Available-for-sale Securities $ 116,470 $ 12 $ (5,112) $ 111,370 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value Held-to-maturity Securities of state and local municipalities tax exempt $ 263 $ 3 $ — $ 266 Securities of U.S. government and federal agencies 1,497 — (1) 1,496 Total Held-to-maturity Securities $ 1,760 $ 3 $ (1) $ 1,762 Available-for-sale Securities of U.S. government and federal agencies $ 1,000 $ — $ (32) $ 968 Securities of state and local municipalities tax exempt 3,694 23 (1) 3,716 Securities of state and local municipalities taxable 2,591 3 (41) 2,553 Corporate bonds 5,000 57 (61) 4,996 Certificates of deposit 490 — — 490 SBA pass-through securities 254 — (8) 246 Mortgage-backed securities 84,614 — (1,401) 83,213 Collateralized mortgage obligations 20,453 — (683) 19,770 Total Available-for-sale Securities $ 118,096 $ 83 $ (2,227) $ 115,952 |
Schedule of available-for-sale securities that have been in a continuous unrealized loss position | Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized At September 30, 2018 Value Losses Value Losses Value Losses Securities of U.S. government and federal agencies $ — $ — $ 934 $ (66) $ 934 $ (66) Securities of state and local municipalities tax exempt 3,577 (105) — — 3,577 (105) Securities of state and local municipalities taxable 758 (3) 1,581 (90) 2,339 (93) Corporate bonds 987 (13) 933 (68) 1,920 (81) Certificates of deposit 244 (1) — — 244 (1) SBA pass-through securities — — 190 (10) 190 (10) Mortgage-backed securities 12,883 (249) 69,202 (3,443) 82,085 (3,692) Collateralized mortgage obligations 1,028 (35) 16,042 (1,029) 17,070 (1,064) Total $ 19,477 $ (406) $ 88,882 $ (4,706) $ 108,359 $ (5,112) Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized At December 31, 2017 Value Losses Value Losses Value Losses Securities of U.S. government and federal agencies $ — $ — $ 968 $ (32) $ 968 $ (32) Securities of state and local municipalities tax exempt 272 (1) — — 272 (1) Securities of state and local municipalities taxable 497 (3) 1,278 (38) 1,775 (41) Corporate bonds 1,492 (7) 946 (54) 2,438 (61) Certificates of deposit 245 — — — 245 — SBA pass-through securities — — 246 (8) 246 (8) Mortgage-backed securities 38,039 (404) 44,663 (997) 82,702 (1,401) Collateralized mortgage obligations 2,731 (28) 17,040 (655) 19,771 (683) Total $ 43,276 $ (443) $ 65,141 $ (1,784) $ 108,417 $ (2,227) |
Schedule of amortized cost and fair value of held-to-maturity securities and available-for-sale securities by contractual maturity | September 30, 2018 Held-to-maturity Available-for-sale Amortized Fair Amortized Fair Cost Value Cost Value Less than 1 year $ — $ — $ 245 $ 244 After 1 year through 5 years — — 3,654 3,588 After 5 years through 10 years 1,761 1,706 26,783 25,818 After 10 years — — 85,788 81,720 Total $ 1,761 $ 1,706 $ 116,470 $ 111,370 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Loans and Allowance for Loan Losses | |
Summary of loan balances | September 30, 2018 December 31, 2017 Commercial real estate $ 593,541 $ 526,657 Commercial and industrial 108,522 98,150 Commercial construction 144,830 123,444 Consumer residential 106,329 108,926 Consumer nonresidential 26,327 32,232 $ 979,549 $ 889,409 Less: Allowance for loan losses 8,576 7,725 Unearned income and (unamortized premiums), net 1,245 732 Loans, net $ 969,728 $ 880,952 |
Schedule of allowance for loan losses | Allowance for Loan Losses For the three months ended September 30, 2018 Commercial Commercial and Commercial Consumer Consumer Real Estate Industrial Construction Residential Nonresidential Unallocated Total Allowance for credit losses: Beginning Balance $ 5,275 $ 869 $ 1,306 $ 604 $ 208 $ 36 $ 8,298 Charge-offs — — — — (118) — (118) Recoveries — 10 — — 35 — 45 Provision 209 18 31 10 69 14 351 Ending Balance $ 5,484 $ 897 $ 1,337 $ 614 $ 194 $ 50 $ 8,576 Allowance for Loan Losses For the nine months ended September 30, 2018 Commercial Commercial and Commercial Consumer Consumer Real Estate Industrial Construction Residential Nonresidential Unallocated Total Allowance for credit losses: Beginning Balance $ 4,832 $ 768 $ 1,191 $ 626 $ 268 $ 40 $ 7,725 Charge-offs — (86) — — (128) — (214) Recoveries — 40 — — 35 — 75 Provision 652 175 146 (12) 19 10 990 Ending Balance $ 5,484 $ 897 $ 1,337 $ 614 $ 194 $ 50 $ 8,576 Allowance for Loan Losses For the three months ended September 30, 2017 Commercial Commercial and Commercial Consumer Consumer Real Estate Industrial Construction Residential Nonresidential Unallocated Total Allowance for credit losses: Beginning Balance $ 4,583 $ 817 $ 907 $ 571 $ 106 $ 28 $ 7,012 Charge-offs — — — — (33) — (33) Recoveries — 42 — — — — 42 Provision 149 (118) 68 19 30 102 250 Ending Balance $ 4,732 $ 741 $ 975 $ 590 $ 103 $ 130 $ 7,271 Allowance for Loan Losses For the nine months ended September 30, 2017 Commercial Commercial and Commercial Consumer Consumer Real Estate Industrial Construction Residential Nonresidential Unallocated Total Allowance for credit losses: Beginning Balance $ 4,266 $ 1,032 $ 375 $ 500 $ 121 $ 158 $ 6,452 Charge-offs — (44) — — (33) — (77) Recoveries — 98 — — 33 — 131 Provision 466 (345) 600 90 (18) (28) 765 Ending Balance $ 4,732 $ 741 $ 975 $ 590 $ 103 $ 130 $ 7,271 Allowance for Loan Losses At December 31, 2017 Commercial Commercial and Commercial Consumer Consumer Real Estate Industrial Construction Residential Nonresidential Unallocated Total Allowance for credit losses: Beginning Balance $ 4,266 $ 1,032 $ 375 $ 500 $ 121 $ 158 $ 6,452 Charge-offs — (44) — — (33) — (77) Recoveries — 117 — — 33 — 150 Provision 566 (337) 816 126 147 (118) 1,200 Beginning Balance $ 4,832 $ 768 $ 1,191 $ 626 $ 268 $ 40 $ 7,725 |
Schedule of recorded investment in loans and impairment by portfolio segment | Allowance for Loan Losses At September 30, 2018 Commercial Commercial Commercial Consumer Consumer Real Estate and Industrial Construction Residential Nonresidential Unallocated Total Allowance for credit losses: Ending Balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 5,484 897 1,337 614 194 50 8,576 $ 5,484 $ 897 $ 1,337 $ 614 $ 194 $ 50 $ 8,576 Loans Receivable At September 30, 2018 Commercial Commercial Commercial Consumer Consumer Real Estate and Industrial Construction Residential Nonresidential Unallocated Total Financing receivables: Ending Balance Individually evaluated for impairment $ 724 $ 128 $ — $ 587 $ — $ — $ 1,439 Collectively evaluated for impairment 592,817 108,394 144,830 105,742 26,327 — 978,110 $ 593,541 $ 108,522 $ 144,830 $ 106,329 $ 26,327 $ — $ 979,549 Allowance for Loan Losses At December 31, 2017 Commercial Commercial Commercial Consumer Consumer Real Estate and Industrial Construction Residential Nonresidential Unallocated Total Allowance for credit losses: Ending Balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 4,832 768 1,191 626 268 40 7,725 $ 4,832 $ 768 $ 1,191 $ 626 $ 268 $ 40 $ 7,725 Loans Receivable At December 31, 2017 Commercial Commercial Commercial Consumer Consumer Real Estate and Industrial Construction Residential Nonresidential Unallocated Total Financing receivables: Ending Balance Individually evaluated for impairment $ 1,882 $ 2,846 $ — $ 587 $ 5 $ — $ 5,320 Collectively evaluated for impairment 524,775 95,304 123,444 108,339 32,227 — 884,089 $ 526,657 $ 98,150 $ 123,444 $ 108,926 $ 32,232 $ — $ 889,409 |
Schedule of Impaired loans | Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized September 30, 2018 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial and industrial — — — — — Commercial construction — — — — — Consumer residential — — — — — Consumer nonresidential — — — — — $ — $ — $ — $ — $ — September 30, 2018 With no related allowance: Commercial real estate $ 724 $ 735 $ — $ 723 $ 31 Commercial and industrial 128 142 — 287 14 Commercial construction — — — — — Consumer residential 587 587 — 587 21 Consumer nonresidential — — — — — $ 1,439 $ 1,464 $ — $ 1,597 $ 66 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized December 31, 2017 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial and industrial — — — — — Commercial construction — — — — — Consumer residential — — — — — Consumer nonresidential — — — — — $ — $ — $ — $ — $ — December 31, 2017 With no related allowance: Commercial real estate $ 1,882 $ 1,882 $ — $ 1,894 $ 108 Commercial and industrial 2,846 2,860 — 2,516 150 Commercial construction — — — — — Consumer residential 587 587 — 587 24 Consumer nonresidential 5 5 — 8 1 $ 5,320 $ 5,334 $ — $ 5,005 $ 283 |
Schedule of risk category of loans | As of September 30, 2018 Commercial Real Commercial and Commercial Consumer Consumer Estate Industrial Construction Residential Nonresidential Total Grade: Pass $ 592,684 $ 107,226 $ 144,830 $ 102,460 $ 26,308 $ 973,508 Special mention 675 199 — 3,282 19 4,175 Substandard 182 1,097 — 587 — 1,866 Doubtful — — — — — — Loss — — — — — — Total $ 593,541 $ 108,522 $ 144,830 $ 106,329 $ 26,327 $ 979,549 As of December 31, 2017 Commercial Real Commercial and Commercial Consumer Consumer Estate Industrial Construction Residential Nonresidential Total Grade: Pass $ 525,808 $ 95,131 $ 123,444 $ 106,700 $ 32,208 $ 883,291 Special mention 695 543 — 1,639 24 2,901 Substandard 154 2,476 — 587 — 3,217 Doubtful — — — — — — Loss — — — — — — Total $ 526,657 $ 98,150 $ 123,444 $ 108,926 $ 32,232 $ 889,409 |
Schedule of past due and nonaccrual loans | As of September 30, 2018 30 - 59 days 60 - 89 days 90 days or more Total 90 days past due past due past due past due past due Current Total loans and still accruing Nonaccruals Commercial real estate $ 2,097 $ 2,489 $ 690 $ 5,276 $ 588,265 $ 593,541 690 $ 183 Commercial and industrial 917 1,738 — 2,655 105,867 108,522 — — Commercial construction — — 561 561 144,269 144,830 561 — Consumer residential 850 — 587 1,437 104,892 106,329 — 587 Consumer nonresidential 65 73 — 138 26,189 26,327 — — Total $ 3,929 $ 4,300 $ 1,838 $ 10,067 $ 969,482 $ 979,549 $ 1,251 $ 770 As of December 31, 2017 30 - 59 days 60 - 89 days 90 days or more Total 90 days past due past due past due past due past due Current Total loans and still accruing Nonaccruals Commercial real estate $ — $ — $ 154 $ 154 $ 526,503 $ 526,657 $ — $ 154 Commercial and industrial — — 48 48 98,102 98,150 48 — Commercial construction — 911 — 911 122,533 123,444 — — Consumer residential 275 — 587 862 108,064 108,926 — 587 Consumer nonresidential — — — — 32,232 32,232 — — Total $ 275 $ 911 $ 789 $ 1,975 $ 887,434 $ 889,409 $ 48 $ 741 |
Schedule of TDR's originated | For the nine months ended September 30, 2017 Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Troubled Debt Restructurings Contracts Investment Investment Commercial real estate — $ — $ — Commercial and industrial 1 204 197 Commercial construction — — — Consumer residential — — — Consumer nonresidential 1 9 8 Consumer construction — — — Total 2 $ 213 $ 205 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Financial Instruments | |
Schedule of notional amount and fair value of derivative financial instruments | September 30, 2018 Notional Amount Fair Value Interest Rate Swap Agreements Receive Fixed/Pay Variable Swaps $ 27,175 $ (336) Pay Fixed/Receive Variable Swaps 27,175 336 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Financial Instruments with Off-Balance Sheet Risk | |
Schedule of financial instruments outstanding which contract amounts represent credit risk | September 30, 2018 December 31, 2017 Commitments to grant loans $ 42,675 $ 23,078 Unused commitments to fund loans and lines of credit 188,891 170,802 Commercial and standby letters of credit 9,155 9,725 |
Stock-Based Compensation Plan (
Stock-Based Compensation Plan (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Stock-Based Compensation Plan | |
Summary of option activity | Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Shares Price Term Value (1) Outstanding at January 1, 2018 2,218,210 $ 7.74 5.51 Granted — — Exercised (218,981) 5.55 Forfeited or expired (12,025) 7.43 Outstanding at September 30, 2018 1,987,204 $ 7.99 5.22 $ 23,470,715 Exercisable at September 30, 2018 1,725,192 $ 7.61 4.92 $ 21,028,658 (1) The aggregate intrinsic value of stock options represents the total pre‑tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on September 30, 2018. This amount changes based on changes in the market value of the Company’s stock. |
Summary of restricted stock grant activity | Weighted Average Number of Grant Date Shares Fair Value Nonvested at January 1, 2018 66,155 $ 17.50 Granted — — Vested (718) 16.41 Forfeited (680) 17.55 Balance at September 30, 2018 64,757 $ 17.52 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Measurements | |
Schedule of financial assets and liabilities measured at fair value on a recurring basis | Fair Value Measurements at September 30, 2018 Using Quoted Prices in Active Significant Markets for Other Significant Balance as of Identical Observable Unobservable September 30, Assets Inputs Inputs Description 2018 (Level 1) (Level 2) (Level 3) Assets Available-for-sale Securities of U.S. government and federal agencies $ 934 $ — $ 934 $ — Securities of state and local municipalities tax exempt 3,577 — 3,577 — Securities of state and local municipalities taxable 2,339 — 2,339 — Corporate bonds 4,931 — 4,931 — Certificates of deposit 244 — 244 — SBA pass-through securities 190 — 190 — Mortgage-backed securities 82,085 — 82,085 — Collateralized mortgage obligations 17,070 — 17,070 — Total Available-for-Sale Securities $ 111,370 $ — $ 111,370 $ — Fair Value Measurements at December 31, 2017 Using Quoted Prices in Active Significant Markets for Other Significant Balance as of Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2017 (Level 1) (Level 2) (Level 3) Assets Available-for-sale Securities of U.S. government and federal agencies $ 968 $ — $ 968 $ — Securities of state and local municipalities tax exempt 3,716 — 3,716 — Securities of state and local municipalities taxable 2,553 — 2,553 — Corporate bonds 4,996 — 4,996 — Certificates of deposit 490 — 490 — SBA pass-through securities 246 — 246 — Mortgage-backed securities 83,213 — 83,213 — Collateralized mortgage obligations 19,770 — 19,770 — Total Available-for-Sale Securities $ 115,952 $ — $ 115,952 $ — |
Schedule of the Company's assets that were measured at fair value on a nonrecurring basis | The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis at September 30, 2018 and December 31, 2017: Fair Value Measurements Using Quoted Prices Balance as of in Active Significant September 30, Markets for Other Significant 2018 and Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2017 (Level 1) (Level 2) (Level 3) Assets Other real estate owned $ 3,866 $ — $ — $ 3,866 |
Schedule of quantitative information about Level 3 Fair Value Measurements | Quantitative information about Level 3 Fair Value Measurements Assets Fair Value Valuation Technique(s) Unobservable input Range Other real estate owned $ 3,866 Discounted appraised value Selling costs 10.51 % |
Schedule of carrying amount, fair value and placement in the fair value hierarchy of the Company's financial instruments | Fair Value Measurements as of September 30, 2018, using Quoted Prices in Active Markets for Significant Significant Identical Unobservable Unobservable Carrying Assets Inputs Inputs Amount Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 8,939 $ 8,939 $ — $ — Interest-bearing deposits at other institutions 46,396 46,396 — — Securities held-to-maturity 1,761 — 1,706 — Securities available-for-sale 111,370 — 111,370 — Restricted stock 3,800 — 3,800 — Loans, net 969,728 — — 960,319 Bank owned life insurance 16,297 — 16,297 — Accrued interest receivable 3,652 — 3,652 — Financial liabilities: Checking, savings and money market accounts $ 710,133 $ — $ 710,133 $ — Time deposits 283,853 — 283,211 — Federal funds purchased 15,000 — 15,000 — Subordinated notes 24,387 — 23,222 — Accrued interest payable 881 — 881 — Fair Value Measurements as of December 31, 2017, using Quoted Prices in Active Markets for Significant Significant Identical Unobservable Unobservable Carrying Assets Inputs Inputs Amount Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 7,428 $ 7,428 $ — $ — Interest-bearing deposits at other institutions 15,139 15,139 — — Securities held-to-maturity 1,760 — 1,762 Securities available-for-sale 115,952 — 115,952 — Restricted stock 3,438 — 3,438 — Loans, net 880,952 — — 876,569 Bank owned life insurance 15,969 — 15,969 — Accrued interest receivable 2,964 — 2,964 — Financial liabilities: Checking, savings and money market accounts $ 554,547 $ — $ 554,547 $ — Time deposits 373,616 — 371,782 — Subordinated notes 24,327 — 23,462 — Accrued interest payable 417 — 417 — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share | |
Schedule of earning per share | Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net income $ 3,385 $ 2,235 $ 9,459 $ 6,684 Weighted average number of shares 11,325 10,479 11,094 10,288 Options effect of dilutive securities 1,145 1,105 1,102 944 Weighted average diluted shares 12,470 11,584 12,196 11,232 Basic EPS $ 0.30 $ 0.21 $ 0.85 $ 0.65 Diluted EPS $ 0.27 $ 0.19 $ 0.78 $ 0.60 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) | |
Schedule of changes in accumulated other comprehensive income (AOCI) | Three Months Ended Nine Months Ended September 30, September 30, Available-for-Sale Securities 2018 2017 2018 2017 Balance, beginning of period $ (3,489) $ (1,017) $ (1,693) $ (1,299) Net unrealized gains (losses) during the period (540) 108 (2,336) 468 Net reclassification adjustment for gains realized in income — (10) — (88) Other comprehensive income (loss), net of tax (540) 98 (2,336) 380 Balance, end of period $ (4,029) $ (919) $ (4,029) $ (919) |
Schedule of reclassifications from accumulated other comprehensive income | Amount Reclassified from AOCI into Income For the Three Months Ended For the Nine Months Ended September 30, September 30, Details about AOCI 2018 2017 2018 2017 Gains on sale of available-for-sale securities $ — $ 15 $ — $ 134 Income tax expense — (5) — (46) Total $ — $ 10 $ — $ 88 |
Federal Home Loan Bank (FHLB)_2
Federal Home Loan Bank (FHLB) Advances and Other Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Federal Home Loan Bank (FHLB) Advances and Other Borrowings | |
Schedule of FHLB advances and other borrowings | FHLB advances and other borrowings at September 30, 2018 consist of the following: Weighted Amount Average Rate Federal funds purchased $ 15,000 2.35 % FHLB advances — — Total borrowings $ 15,000 2.35 % |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition | |
Schedule of noninterest income | Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Noninterest Income In-scope of Topic 606 Service Charges on Deposit Accounts $ 158 $ 146 $ 452 $ 402 Fees, Exchange, and Other Service Charges 60 50 177 141 Other 10 7 37 40 Noninterest Income (in-scope of Topic 606) 228 203 666 583 Noninterest Income (out-scope of Topic 606) 520 150 829 921 Total Noninterest Income $ 748 $ 353 $ 1,495 $ 1,504 |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Details) | Sep. 30, 2018lease |
Organization and Summary of Significant Accounting Policies | |
Number of leases | 6 |
Stock Offering (Details)
Stock Offering (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | |
Gross proceeds from issuance | $ 31,755 | $ 10,000 | |
Issuance price (in dollars per share) | $ 20 | $ 20 | $ 20 |
IPO | |||
Gross proceeds from issuance | $ 35,000 | ||
Net proceeds from issuance | $ 31,800 | ||
Stock issued (in shares) | 1,750 | ||
Issuance price (in dollars per share) | $ 20 | $ 20 |
Securities (Details)
Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Held-to-maturity | ||
Amortized Cost | $ 1,761 | $ 1,760 |
Gross Unrealized Gains | 3 | |
Gross Unrealized (Losses) | (55) | (1) |
Fair Value | 1,706 | 1,762 |
Available-for-sale | ||
Amortized Cost | 116,470 | 118,096 |
Gross Unrealized Gains | 12 | 83 |
Gross Unrealized (Losses) | (5,112) | (2,227) |
Fair Value | 111,370 | 115,952 |
Securities of state and local municipalities tax exempt | ||
Held-to-maturity | ||
Amortized Cost | 264 | 263 |
Gross Unrealized Gains | 3 | |
Gross Unrealized (Losses) | (10) | |
Fair Value | 254 | 266 |
Available-for-sale | ||
Amortized Cost | 3,682 | 3,694 |
Gross Unrealized Gains | 23 | |
Gross Unrealized (Losses) | (105) | (1) |
Fair Value | 3,577 | 3,716 |
Securities of U.S. government and federal agencies | ||
Held-to-maturity | ||
Amortized Cost | 1,497 | 1,497 |
Gross Unrealized (Losses) | (45) | (1) |
Fair Value | 1,452 | 1,496 |
Available-for-sale | ||
Amortized Cost | 1,000 | 1,000 |
Gross Unrealized (Losses) | (66) | (32) |
Fair Value | 934 | 968 |
Securities of state and local municipalities taxable | ||
Available-for-sale | ||
Amortized Cost | 2,432 | 2,591 |
Gross Unrealized Gains | 3 | |
Gross Unrealized (Losses) | (93) | (41) |
Fair Value | 2,339 | 2,553 |
Corporate bonds | ||
Available-for-sale | ||
Amortized Cost | 5,000 | 5,000 |
Gross Unrealized Gains | 12 | 57 |
Gross Unrealized (Losses) | (81) | (61) |
Fair Value | 4,931 | 4,996 |
Certificates of deposit | ||
Available-for-sale | ||
Amortized Cost | 245 | 490 |
Gross Unrealized (Losses) | (1) | |
Fair Value | 244 | 490 |
SBA passthrough securities | ||
Available-for-sale | ||
Amortized Cost | 200 | 254 |
Gross Unrealized (Losses) | (10) | (8) |
Fair Value | 190 | 246 |
Mortgage-backed securities | ||
Available-for-sale | ||
Amortized Cost | 85,777 | 84,614 |
Gross Unrealized (Losses) | (3,692) | (1,401) |
Fair Value | 82,085 | 83,213 |
Collateralized mortgage obligations | ||
Available-for-sale | ||
Amortized Cost | 18,134 | 20,453 |
Gross Unrealized (Losses) | (1,064) | (683) |
Fair Value | 17,070 | 19,770 |
Federal Reserve Bank | ||
Available-for-sale | ||
Pledged securities | 545 | 0 |
Community Bankers' Bank | ||
Available-for-sale | ||
Pledged securities | $ 8,800 | $ 0 |
Securities - Continuous Unreali
Securities - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | $ 19,477 | $ 43,276 |
Fair Value, 12 Months or Longer | 88,882 | 65,141 |
Fair Value, Total | 108,359 | 108,417 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | (406) | (443) |
Unrealized Losses, 12 Months or Longer | (4,706) | (1,784) |
Unrealized Losses, Total | (5,112) | (2,227) |
Securities of U.S. government and federal agencies | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, 12 Months or Longer | 934 | 968 |
Fair Value, Total | 934 | 968 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, 12 Months or Longer | (66) | (32) |
Unrealized Losses, Total | (66) | (32) |
Securities of state and local municipalities | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 758 | 497 |
Fair Value, 12 Months or Longer | 1,581 | 1,278 |
Fair Value, Total | 2,339 | 1,775 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | (3) | (3) |
Unrealized Losses, 12 Months or Longer | (90) | (38) |
Unrealized Losses, Total | (93) | (41) |
Securities of state and local municipalities tax exempt | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 3,577 | 272 |
Fair Value, Total | 3,577 | 272 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | (105) | (1) |
Unrealized Losses, Total | (105) | (1) |
Corporate bonds | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 987 | 1,492 |
Fair Value, 12 Months or Longer | 933 | 946 |
Fair Value, Total | 1,920 | 2,438 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | (13) | (7) |
Unrealized Losses, 12 Months or Longer | (68) | (54) |
Unrealized Losses, Total | (81) | (61) |
Certificates of deposit | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 244 | 245 |
Fair Value, Total | 244 | 245 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | (1) | |
Unrealized Losses, Total | (1) | |
SBA passthrough securities | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, 12 Months or Longer | 190 | 246 |
Fair Value, Total | 190 | 246 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, 12 Months or Longer | (10) | (8) |
Unrealized Losses, Total | (10) | (8) |
Mortgage-backed securities | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 12,883 | 38,039 |
Fair Value, 12 Months or Longer | 69,202 | 44,663 |
Fair Value, Total | 82,085 | 82,702 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | (249) | (404) |
Unrealized Losses, 12 Months or Longer | (3,443) | (997) |
Unrealized Losses, Total | (3,692) | (1,401) |
Collateralized mortgage obligations | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 1,028 | 2,731 |
Fair Value, 12 Months or Longer | 16,042 | 17,040 |
Fair Value, Total | 17,070 | 19,771 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | (35) | (28) |
Unrealized Losses, 12 Months or Longer | (1,029) | (655) |
Unrealized Losses, Total | $ (1,064) | $ (683) |
Securities - Continuous Unrea_2
Securities - Continuous Unrealized Loss Position - Additional information (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($)security | Dec. 31, 2017USD ($)security | |
Debt Securities, Available-for-sale [Line Items] | ||
Securities held to maturity, fair value | $ | $ 1,706 | $ 1,762 |
Gross Unrealized Losses | $ | $ 55 | $ 1 |
Held-to-maturity | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of investment securities | 2 | 1 |
Securities held to maturity, fair value | $ | $ 1,700 | $ 1,500 |
Gross Unrealized Losses | $ | 55 | 1 |
Securities of U.S. government and federal agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities held to maturity, fair value | $ | 1,452 | 1,496 |
Gross Unrealized Losses | $ | $ 45 | $ 1 |
Securities of U.S. government and federal agencies | Held-to-maturity | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of investment securities | 1 | |
Securities of U.S. government and federal agencies | Available-for-sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of investment securities | 1 | |
Securities of state and local municipalities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of investment securities | 9 | |
Securities of state and local municipalities | AA+ | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of investment securities | 5 | |
Securities of state and local municipalities | AA- | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of investment securities | 1 | |
Securities of state and local municipalities | AA | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of investment securities | 1 | |
Securities of state and local municipalities | No rating | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of investment securities | 2 | |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of investment securities | 2 | |
Corporate bonds | A- | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of investment securities | 1 | |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of investment securities | 62 | |
Collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of investment securities | 31 |
Securities - Contractual Maturi
Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Held-to-maturity, Amortized Cost | ||
After 5 years through 10 years | $ 1,761 | |
Amortized Cost | 1,761 | $ 1,760 |
Held-to-maturity, Fair Value | ||
After 5 years through 10 years | 1,706 | |
Fair Value | 1,706 | 1,762 |
Available-for-sale, Amortized Cost | ||
Less than 1 year | 245 | |
After 1 year through 5 years | 3,654 | |
After 5 years through 10 years | 26,783 | |
After 10 years | 85,788 | |
Amortized Cost | 116,470 | |
Available-for-sale, Fair Value | ||
Less than 1 year | 244 | |
After 1 year through 5 years | 3,588 | |
After 5 years through 10 years | 25,818 | |
After 10 years | 81,720 | |
Fair Value | $ 111,370 | $ 115,952 |
Securities - Contractual Matu_2
Securities - Contractual Maturities - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Securities | ||
Proceeds from maturities, calls and principal repayments of securities | $ 12,800 | $ 11,000 |
Proceeds from sales of securities available-for-sale | 0 | 1,586 |
Gross realized gains on available-for-sale securities | 0 | 134 |
Realized losses on sale of securities | $ 0 | $ 0 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of loan balances by type (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Loans and Allowance for Loan Losses | ||||||
Loans, gross | $ 979,549 | $ 889,409 | ||||
Allowance for loan losses | 8,576 | $ 8,298 | 7,725 | $ 7,271 | $ 7,012 | $ 6,452 |
Unearned income and (unamortized premiums), net | 1,245 | 732 | ||||
Loans, net | 969,728 | 880,952 | ||||
Commercial | Real Estate | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 593,541 | 526,657 | ||||
Allowance for loan losses | 5,484 | 5,275 | 4,832 | 4,732 | 4,583 | 4,266 |
Commercial | Commercial and Industrial | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 108,522 | 98,150 | ||||
Allowance for loan losses | 897 | 869 | 768 | 741 | 817 | 1,032 |
Commercial | Construction | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 144,830 | 123,444 | ||||
Allowance for loan losses | 1,337 | 1,306 | 1,191 | 975 | 907 | 375 |
Consumer | Residential | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 106,329 | 108,926 | ||||
Allowance for loan losses | 614 | 604 | 626 | 590 | 571 | 500 |
Consumer | Nonresidential | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 26,327 | 32,232 | ||||
Allowance for loan losses | $ 194 | $ 208 | $ 268 | $ 103 | $ 106 | $ 121 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Allowance for loan losses | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | $ 8,298 | $ 7,012 | $ 7,725 | $ 6,452 | $ 6,452 |
Chargeoffs | (118) | (33) | (214) | (77) | (77) |
Recoveries | 45 | 42 | 75 | 131 | 150 |
Provision | 351 | 250 | 990 | 765 | 1,200 |
Loans and Leases Receivable, Allowance, Ending Balance | 8,576 | 7,271 | 8,576 | 7,271 | 7,725 |
Ending Balance: Collectively evaluated for impairment | 8,576 | 8,576 | 7,725 | ||
Loans receivables: | |||||
Ending Balance: Individually evaluated for impairment | 1,439 | 1,439 | 5,320 | ||
Ending Balance: Collectively evaluated for impairment | 978,110 | 978,110 | 884,089 | ||
Loans receivables | 979,549 | 979,549 | 889,409 | ||
Commercial | Real Estate | |||||
Allowance for loan losses | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 5,275 | 4,583 | 4,832 | 4,266 | 4,266 |
Provision | 209 | 149 | 652 | 466 | 566 |
Loans and Leases Receivable, Allowance, Ending Balance | 5,484 | 4,732 | 5,484 | 4,732 | 4,832 |
Ending Balance: Collectively evaluated for impairment | 5,484 | 5,484 | 4,832 | ||
Loans receivables: | |||||
Ending Balance: Individually evaluated for impairment | 724 | 724 | 1,882 | ||
Ending Balance: Collectively evaluated for impairment | 592,817 | 592,817 | 524,775 | ||
Loans receivables | 593,541 | 593,541 | 526,657 | ||
Commercial | Commercial and Industrial | |||||
Allowance for loan losses | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 869 | 817 | 768 | 1,032 | 1,032 |
Chargeoffs | (86) | (44) | (44) | ||
Recoveries | 10 | 42 | 40 | 98 | 117 |
Provision | 18 | (118) | 175 | (345) | (337) |
Loans and Leases Receivable, Allowance, Ending Balance | 897 | 741 | 897 | 741 | 768 |
Ending Balance: Collectively evaluated for impairment | 897 | 897 | 768 | ||
Loans receivables: | |||||
Ending Balance: Individually evaluated for impairment | 128 | 128 | 2,846 | ||
Ending Balance: Collectively evaluated for impairment | 108,394 | 108,394 | 95,304 | ||
Loans receivables | 108,522 | 108,522 | 98,150 | ||
Commercial | Construction | |||||
Allowance for loan losses | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 1,306 | 907 | 1,191 | 375 | 375 |
Provision | 31 | 68 | 146 | 600 | 816 |
Loans and Leases Receivable, Allowance, Ending Balance | 1,337 | 975 | 1,337 | 975 | 1,191 |
Ending Balance: Collectively evaluated for impairment | 1,337 | 1,337 | 1,191 | ||
Loans receivables: | |||||
Ending Balance: Collectively evaluated for impairment | 144,830 | 144,830 | 123,444 | ||
Loans receivables | 144,830 | 144,830 | 123,444 | ||
Consumer | Residential | |||||
Allowance for loan losses | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 604 | 571 | 626 | 500 | 500 |
Provision | 10 | 19 | (12) | 90 | 126 |
Loans and Leases Receivable, Allowance, Ending Balance | 614 | 590 | 614 | 590 | 626 |
Ending Balance: Collectively evaluated for impairment | 614 | 614 | 626 | ||
Loans receivables: | |||||
Ending Balance: Individually evaluated for impairment | 587 | 587 | 587 | ||
Ending Balance: Collectively evaluated for impairment | 105,742 | 105,742 | 108,339 | ||
Loans receivables | 106,329 | 106,329 | 108,926 | ||
Consumer | Nonresidential | |||||
Allowance for loan losses | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 208 | 106 | 268 | 121 | 121 |
Chargeoffs | (118) | (33) | (128) | (33) | (33) |
Recoveries | 35 | 35 | 33 | 33 | |
Provision | 69 | 30 | 19 | (18) | 147 |
Loans and Leases Receivable, Allowance, Ending Balance | 194 | 103 | 194 | 103 | 268 |
Ending Balance: Collectively evaluated for impairment | 194 | 194 | 268 | ||
Loans receivables: | |||||
Ending Balance: Individually evaluated for impairment | 5 | ||||
Ending Balance: Collectively evaluated for impairment | 26,327 | 26,327 | 32,227 | ||
Loans receivables | 26,327 | 26,327 | 32,232 | ||
Unallocated | |||||
Allowance for loan losses | |||||
Loans and Leases Receivable, Allowance, Beginning Balance | 36 | 28 | 40 | 158 | 158 |
Provision | 14 | 102 | 10 | (28) | (118) |
Loans and Leases Receivable, Allowance, Ending Balance | 50 | $ 130 | 50 | $ 130 | 40 |
Ending Balance: Collectively evaluated for impairment | $ 50 | $ 50 | $ 40 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Recorded Investment | ||
With no related allowance | $ 1,439 | $ 5,320 |
Unpaid Principal Balance | ||
With no related allowance | 1,464 | 5,334 |
Average Recorded Investment | ||
With no related allowance | 1,597 | 5,005 |
Interest Income Recognized | ||
With no related allowance | 66 | 283 |
Commercial | Real Estate | ||
Recorded Investment | ||
With no related allowance | 724 | 1,882 |
Unpaid Principal Balance | ||
With no related allowance | 735 | 1,882 |
Average Recorded Investment | ||
With no related allowance | 723 | 1,894 |
Interest Income Recognized | ||
With no related allowance | 31 | 108 |
Commercial | Commercial and Industrial | ||
Recorded Investment | ||
With no related allowance | 128 | 2,846 |
Unpaid Principal Balance | ||
With no related allowance | 142 | 2,860 |
Average Recorded Investment | ||
With no related allowance | 287 | 2,516 |
Interest Income Recognized | ||
With no related allowance | 14 | 150 |
Consumer | Residential | ||
Recorded Investment | ||
With no related allowance | 587 | 587 |
Unpaid Principal Balance | ||
With no related allowance | 587 | 587 |
Average Recorded Investment | ||
With no related allowance | 587 | 587 |
Interest Income Recognized | ||
With no related allowance | $ 21 | 24 |
Consumer | Nonresidential | ||
Recorded Investment | ||
With no related allowance | 5 | |
Unpaid Principal Balance | ||
With no related allowance | 5 | |
Average Recorded Investment | ||
With no related allowance | 8 | |
Interest Income Recognized | ||
With no related allowance | $ 1 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Risk category (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Loans and allowance - Risk category of loans | ||
Loans, gross | $ 979,549 | $ 889,409 |
Pass | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 973,508 | 883,291 |
Special mention | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 4,175 | 2,901 |
Substandard | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 1,866 | 3,217 |
Commercial | Real Estate | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 593,541 | 526,657 |
Commercial | Real Estate | Pass | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 592,684 | 525,808 |
Commercial | Real Estate | Special mention | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 675 | 695 |
Commercial | Real Estate | Substandard | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 182 | 154 |
Commercial | Commercial and Industrial | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 108,522 | 98,150 |
Commercial | Commercial and Industrial | Pass | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 107,226 | 95,131 |
Commercial | Commercial and Industrial | Special mention | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 199 | 543 |
Commercial | Commercial and Industrial | Substandard | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 1,097 | 2,476 |
Commercial | Construction | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 144,830 | 123,444 |
Commercial | Construction | Pass | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 144,830 | 123,444 |
Consumer | Residential | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 106,329 | 108,926 |
Consumer | Residential | Pass | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 102,460 | 106,700 |
Consumer | Residential | Special mention | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 3,282 | 1,639 |
Consumer | Residential | Substandard | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 587 | 587 |
Consumer | Nonresidential | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 26,327 | 32,232 |
Consumer | Nonresidential | Pass | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 26,308 | 32,208 |
Consumer | Nonresidential | Special mention | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | $ 19 | $ 24 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Past due and Non accrual of loans (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Loans and Allowance for Loan Losses | ||
Total past due | $ 10,067 | $ 1,975 |
Current | 969,482 | 887,434 |
Total loans | 979,549 | 889,409 |
90 days past due and still accruing | 1,251 | 48 |
Nonaccruals | 770 | 741 |
Loans, net | 969,728 | 880,952 |
Federal Home Loan Bank of Atlanta | ||
Loans and Allowance for Loan Losses | ||
Loans pledged | 179,000 | 128,700 |
Adjustment | ||
Loans and Allowance for Loan Losses | ||
Loans, net | 26 | 162 |
Deposits | (26) | (162) |
35-59 days past due | ||
Loans and Allowance for Loan Losses | ||
Total past due | 3,929 | 275 |
60-89 days past due | ||
Loans and Allowance for Loan Losses | ||
Total past due | 4,300 | 911 |
90 days or more past due | ||
Loans and Allowance for Loan Losses | ||
Total past due | 1,838 | 789 |
Commercial | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Total past due | 5,276 | 154 |
Current | 588,265 | 526,503 |
Total loans | 593,541 | 526,657 |
90 days past due and still accruing | 690 | |
Nonaccruals | 183 | 154 |
Commercial | Real Estate | 35-59 days past due | ||
Loans and Allowance for Loan Losses | ||
Total past due | 2,097 | |
Commercial | Real Estate | 60-89 days past due | ||
Loans and Allowance for Loan Losses | ||
Total past due | 2,489 | |
Commercial | Real Estate | 90 days or more past due | ||
Loans and Allowance for Loan Losses | ||
Total past due | 690 | 154 |
Commercial | Commercial and Industrial | ||
Loans and Allowance for Loan Losses | ||
Total past due | 2,655 | 48 |
Current | 105,867 | 98,102 |
Total loans | 108,522 | 98,150 |
90 days past due and still accruing | 48 | |
Commercial | Commercial and Industrial | 35-59 days past due | ||
Loans and Allowance for Loan Losses | ||
Total past due | 917 | |
Commercial | Commercial and Industrial | 60-89 days past due | ||
Loans and Allowance for Loan Losses | ||
Total past due | 1,738 | |
Commercial | Commercial and Industrial | 90 days or more past due | ||
Loans and Allowance for Loan Losses | ||
Total past due | 48 | |
Commercial | Construction | ||
Loans and Allowance for Loan Losses | ||
Total past due | 561 | 911 |
Current | 144,269 | 122,533 |
Total loans | 144,830 | 123,444 |
90 days past due and still accruing | 561 | |
Commercial | Construction | 60-89 days past due | ||
Loans and Allowance for Loan Losses | ||
Total past due | 911 | |
Commercial | Construction | 90 days or more past due | ||
Loans and Allowance for Loan Losses | ||
Total past due | 561 | |
Consumer | Residential | ||
Loans and Allowance for Loan Losses | ||
Total past due | 1,437 | 862 |
Current | 104,892 | 108,064 |
Total loans | 106,329 | 108,926 |
Nonaccruals | 587 | 587 |
Consumer | Residential | 35-59 days past due | ||
Loans and Allowance for Loan Losses | ||
Total past due | 850 | 275 |
Consumer | Residential | 90 days or more past due | ||
Loans and Allowance for Loan Losses | ||
Total past due | 587 | 587 |
Consumer | Nonresidential | ||
Loans and Allowance for Loan Losses | ||
Total past due | 138 | |
Current | 26,189 | 32,232 |
Total loans | 26,327 | $ 32,232 |
Consumer | Nonresidential | 35-59 days past due | ||
Loans and Allowance for Loan Losses | ||
Total past due | 65 | |
Consumer | Nonresidential | 60-89 days past due | ||
Loans and Allowance for Loan Losses | ||
Total past due | $ 73 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Troubled debt restructurings (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018USD ($)contractitem | Sep. 30, 2017USD ($)contract | Dec. 31, 2017USD ($) | |
Loans and Allowance for Loan Losses - Troubled debt restructurings | |||
Number of defaults | item | 0 | ||
Number of Contracts | contract | 0 | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 213 | ||
Post-Modification Outstanding Recorded Investment | $ 205 | ||
Recorded investment in troubled debt restructurings | $ 267 | $ 1,700 | |
Commercial | Commercial and Industrial | |||
Loans and Allowance for Loan Losses - Troubled debt restructurings | |||
Number of Contracts | contract | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 204 | ||
Post-Modification Outstanding Recorded Investment | $ 197 | ||
Consumer | Nonresidential | |||
Loans and Allowance for Loan Losses - Troubled debt restructurings | |||
Number of Contracts | contract | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 9 | ||
Post-Modification Outstanding Recorded Investment | $ 8 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017agreement | Sep. 30, 2018USD ($) | |
Swap Agreements | ||
Derivative Financial Instruments | ||
Number of swap agreements outstanding not included in the offsetting | agreement | 0 | |
Receive Fixed/Pay Variable Swaps | ||
Derivative Financial Instruments | ||
Notional Amount | $ 27,175 | |
Fair Value, Liability | (336) | |
Pay Fixed/Receive Variable Swaps | ||
Derivative Financial Instruments | ||
Notional Amount | 27,175 | |
Fair Value, Asset | $ 336 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Financial Instruments with Off-Balance Sheet Risk | ||
Cash on deposit in correspondent banks exceeding the federally insured limits | $ 2,100 | $ 608 |
Commitments to grant loans | Contract credit risk | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Financial instruments outstanding | 42,675 | 23,078 |
Unused commitments to fund loans and lines of credit | Contract credit risk | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Financial instruments outstanding | $ 188,891 | 170,802 |
Commercial and standby letters of credit | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Letters of credit expiration period (in years) | 1 year | |
Commercial and standby letters of credit | Contract credit risk | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Financial instruments outstanding | $ 9,155 | $ 9,725 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plan (Details) - Amended and Restated 2008 Option Plan - Stock option - shares | 1 Months Ended | 9 Months Ended | |
Jun. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | |
Stock-Based Compensation Plan | |||
Additional shares authorized for issuance (in shares) | 200,000 | ||
Maximum shares authorized (in shares) | 2,529,296 | ||
Vesting period (in years) | 4 years | ||
Contractual term (in years) | 10 years | ||
Shares available for grant (in shares) | 240,035 | ||
Options granted (in shares) | 0 | 625 | |
Number of options withheld to cover the cost of the exercise | 7,643 |
Stock-Based Compensation Plan -
Stock-Based Compensation Plan - Options (Details) - Stock option - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Additional disclosures | |||
Compensation cost | $ 531,000 | $ 480,000 | |
Unamortized compensation cost | $ 404,000 | ||
Amortization period (in months) | 23 months | ||
Tax benefits recognized for qualified stock options | $ 288,000 | $ 163,000 | |
Amended and Restated 2008 Option Plan | |||
Shares | |||
Outstanding at the beginning of the period (in shares) | 2,218,210 | ||
Granted (in shares) | 0 | 625 | |
Exercised (in shares) | (218,981) | ||
Forfeited or expired (in shares) | (12,025) | ||
Outstanding at the end of the period (in shares) | 1,987,204 | 2,218,210 | |
Exercisable at the end of the period (in shares) | 1,725,192 | ||
Weighted-Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 7.74 | ||
Exercised (in dollars per share) | 5.55 | ||
Forfeited or expired (in dollars per share) | 7.43 | ||
Outstanding at the end of the period (in dollars per share) | 7.99 | $ 7.74 | |
Exercisable at the end of the period (in dollars per share) | $ 7.61 | ||
Additional disclosures | |||
Outstanding Weighted-Average Remaining Contractual Term (in years) | 5 years 2 months 19 days | 5 years 6 months 4 days | |
Exercisable Weighted-Average Remaining Contractual Term (in years) | 4 years 11 months 1 day | ||
Outstanding Aggregate Intrinsic Value | $ 23,470,715 | ||
Exercisable Aggregate Intrinsic Value | $ 21,028,658 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plan - Restricted stock (Details) - Restricted stock $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Weighted-Average Grant Date Fair Value | |
Unrecognized compensation cost | $ | $ 903 |
Weighted-average recognition period (in months) | 39 months |
Amended and Restated 2008 Option Plan | |
Number of Shares | |
Balance at the beginning of the period (in shares) | shares | 66,155 |
Vested (in shares) | shares | (718) |
Forfeited (in shares) | shares | (680) |
Balance at the end of the period (in shares) | shares | 64,757 |
Weighted-Average Grant Date Fair Value | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 17.50 |
Vested (in dollars per share) | $ / shares | 16.41 |
Forfeited (in dollars per share) | $ / shares | 17.55 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 17.52 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial assets and liabilities measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Available-for-Sale Securities | $ 111,370 | $ 115,952 |
Level 2 | ||
Assets | ||
Available-for-Sale Securities | 111,370 | 115,952 |
Recurring | ||
Assets | ||
Available-for-Sale Securities | 111,370 | 115,952 |
Recurring | Securities of U.S. government and federal agencies | ||
Assets | ||
Available-for-Sale Securities | 934 | 968 |
Recurring | Securities of state and local municipalities tax exempt | ||
Assets | ||
Available-for-Sale Securities | 3,577 | 3,716 |
Recurring | Securities of state and local municipalities taxable | ||
Assets | ||
Available-for-Sale Securities | 2,339 | 2,553 |
Recurring | Corporate bonds | ||
Assets | ||
Available-for-Sale Securities | 4,931 | 4,996 |
Recurring | Certificates of deposit | ||
Assets | ||
Available-for-Sale Securities | 244 | 490 |
Recurring | SBA passthrough securities | ||
Assets | ||
Available-for-Sale Securities | 190 | 246 |
Recurring | Mortgage-backed securities | ||
Assets | ||
Available-for-Sale Securities | 82,085 | 83,213 |
Recurring | Collateralized mortgage obligations | ||
Assets | ||
Available-for-Sale Securities | 17,070 | 19,770 |
Recurring | Level 2 | ||
Assets | ||
Available-for-Sale Securities | 111,370 | 115,952 |
Recurring | Level 2 | Securities of U.S. government and federal agencies | ||
Assets | ||
Available-for-Sale Securities | 934 | 968 |
Recurring | Level 2 | Securities of state and local municipalities tax exempt | ||
Assets | ||
Available-for-Sale Securities | 3,577 | 3,716 |
Recurring | Level 2 | Securities of state and local municipalities taxable | ||
Assets | ||
Available-for-Sale Securities | 2,339 | 2,553 |
Recurring | Level 2 | Corporate bonds | ||
Assets | ||
Available-for-Sale Securities | 4,931 | 4,996 |
Recurring | Level 2 | Certificates of deposit | ||
Assets | ||
Available-for-Sale Securities | 244 | 490 |
Recurring | Level 2 | SBA passthrough securities | ||
Assets | ||
Available-for-Sale Securities | 190 | 246 |
Recurring | Level 2 | Mortgage-backed securities | ||
Assets | ||
Available-for-Sale Securities | 82,085 | 83,213 |
Recurring | Level 2 | Collateralized mortgage obligations | ||
Assets | ||
Available-for-Sale Securities | $ 17,070 | $ 19,770 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets measured at fair value on a nonrecurring basis (Details) - Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Other Real Estate Owned | $ 3,866 | $ 3,866 |
Level 3 | ||
Assets | ||
Other Real Estate Owned | $ 3,866 | $ 3,866 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative information about Level 3 fair value measurements (Details) $ in Thousands | Sep. 30, 2018USD ($)item | Dec. 31, 2017USD ($)item |
Nonrecurring | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Other real estate owned | $ 3,866 | $ 3,866 |
Level 3 | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Other real estate owned, Range | item | 0.1051 | 0.1051 |
Other real estate owned, Valuation Technique | fvcb:ValuationTechniqueDiscountedAppraisedValueMember | fvcb:ValuationTechniqueDiscountedAppraisedValueMember |
Other real estate owned, Unobservable input | us-gaap:MeasurementInputCostToSellMember | us-gaap:MeasurementInputCostToSellMember |
Level 3 | Nonrecurring | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Other real estate owned | $ 3,866 | $ 3,866 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying amount, fair value and placement in the fair value hierarchy of financial instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Cash and due from banks | $ 8,939 | $ 7,428 |
Interest-bearing deposits at other institutions | 46,396 | 15,139 |
Amortized Cost | 1,761 | 1,760 |
Available-for-Sale Securities | 111,370 | 115,952 |
Restricted stock | 3,800 | 3,438 |
Loans, net | 969,728 | 880,952 |
Bank owned life insurance | 16,297 | 15,969 |
Accrued interest receivable | 3,652 | 2,964 |
Financial liabilities: | ||
Time deposits | 283,853 | 373,616 |
Federal funds purchased | 15,000 | |
Subordinated notes | 24,387 | 24,327 |
Accrued interest payable | 881 | 417 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 8,939 | 7,428 |
Interest-bearing deposits at other institutions | 46,396 | 15,139 |
Amortized Cost | 1,761 | 1,760 |
Available-for-Sale Securities | 111,370 | 115,952 |
Restricted stock | 3,800 | 3,438 |
Loans, net | 969,728 | 880,952 |
Bank owned life insurance | 16,297 | 15,969 |
Accrued interest receivable | 3,652 | 2,964 |
Financial liabilities: | ||
Checking, savings and money market accounts | 710,133 | 554,547 |
Time deposits | 283,853 | 373,616 |
Federal funds purchased | 15,000 | |
Subordinated notes | 24,387 | 24,327 |
Accrued interest payable | 881 | |
Level 1 | ||
Financial assets: | ||
Cash and due from banks | 8,939 | 7,428 |
Interest-bearing deposits at other institutions | 46,396 | 15,139 |
Level 2 | ||
Financial assets: | ||
Amortized Cost | 1,706 | 1,762 |
Available-for-Sale Securities | 111,370 | 115,952 |
Restricted stock | 3,800 | 3,438 |
Bank owned life insurance | 16,297 | 15,969 |
Accrued interest receivable | 3,652 | 2,964 |
Financial liabilities: | ||
Checking, savings and money market accounts | 710,133 | 554,547 |
Time deposits | 283,211 | 371,782 |
Federal funds purchased | 15,000 | |
Subordinated notes | 23,222 | 23,462 |
Accrued interest payable | 881 | |
Level 3 | ||
Financial assets: | ||
Loans, net | $ 960,319 | $ 876,569 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share | ||||
Number of anti-dilutive shares excluded from the calculation | 0 | 3,500 | ||
Net income | $ 3,385 | $ 2,235 | $ 9,459 | $ 6,684 |
Weighted average number of shares | 11,325 | 10,479 | 11,094 | 10,288 |
Options effect of dilutive securities | 1,145 | 1,105 | 1,102 | 944 |
Weighted average diluted shares | 12,470 | 11,584 | 12,196 | 11,232 |
Basic EPS | $ 0.30 | $ 0.21 | $ 0.85 | $ 0.65 |
Diluted EPS | $ 0.27 | $ 0.19 | $ 0.78 | $ 0.60 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)component | Sep. 30, 2017USD ($)component | Sep. 30, 2018USD ($)component | Sep. 30, 2017USD ($)component | |
Accumulated Other Comprehensive Income (Loss) | ||||
Number of securities component | component | 1 | 1 | 1 | 1 |
Changes in accumulated other comprehensive income | ||||
Balance, beginning of period | $ (3,489) | $ (1,017) | $ (1,693) | $ (1,299) |
Net unrealized gains (losses) during the period | (540) | 108 | (2,336) | 468 |
Net reclassification adjustment for gains realized in income | (10) | (88) | ||
Other Comprehensive Income (Loss), Net of Tax | (540) | 98 | (2,336) | 380 |
Balance, end of period | (4,029) | (919) | (4,029) | (919) |
Reclassifications from accumulated other comprehensive income | ||||
Gains on sale of available-for-sale securities | 15 | 134 | ||
Income tax expense | $ 0 | (5) | $ 0 | (46) |
Total | $ 10 | $ 88 |
Federal Home Loan Bank (FHLB)_3
Federal Home Loan Bank (FHLB) Advances and Other Borrowings - FHLB advances and other borrowings (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Federal Home Loan Bank (FHLB) Advances and Other Borrowings | |
Federal funds purchased | $ 15,000 |
Total borrowings | $ 15,000 |
Federal funds purchased, weighted average rate (as a percent) | 2.35% |
Total borrowings, weighted average rate (as a percent) | 2.35% |
Federal Home Loan Bank (FHLB)_4
Federal Home Loan Bank (FHLB) Advances and Other Borrowings (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank (FHLB) Advances and Other Borrowings | ||
Remaining amount of available line of credit | $ 132.5 | |
Amount of letter of credit obtained | 80 | |
Remaining lendable collateral value | 52.5 | |
Line of credit borrowing capacity | 144 | $ 44 |
Line of credit amount drawn | 15 | $ 0 |
1-4 family residential loans | ||
Federal Home Loan Bank (FHLB) Advances and Other Borrowings | ||
Book value of loans pledged against available line of credit | 2.1 | |
Multi-family residential loans | ||
Federal Home Loan Bank (FHLB) Advances and Other Borrowings | ||
Book value of loans pledged against available line of credit | 11.3 | |
Home equity lines of credit | ||
Federal Home Loan Bank (FHLB) Advances and Other Borrowings | ||
Book value of loans pledged against available line of credit | 15.5 | |
Commercial real estate loans | ||
Federal Home Loan Bank (FHLB) Advances and Other Borrowings | ||
Book value of loans pledged against available line of credit | $ 103.6 |
Subordinated Notes (Details)
Subordinated Notes (Details) - Subordinated Notes - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | Jun. 20, 2016 | |
Subordinated Notes | |||
Face amount | $ 25 | ||
Interest rate | 6.00% | ||
Redemption price percentage of outstanding principal amount | 100.00% | ||
Proceeds from subordinated notes included in the Bank's Tier 1 capital | $ 21 | $ 21 | |
Minimum | |||
Subordinated Notes | |||
Notice period for redeem the subordinated notes | 30 days | ||
Maximum | |||
Subordinated Notes | |||
Notice period for redeem the subordinated notes | 60 days | ||
LIBOR | |||
Subordinated Notes | |||
Variable interest rate (as a percent) | 4.87% |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue Recognition | ||||
Noninterest Income (in-scope of Topic 606) | $ 228 | $ 666 | ||
Noninterest Income (out-scope of Topic 606) | 520 | 829 | ||
Total Noninterest Income | 748 | $ 353 | 1,495 | $ 1,504 |
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract | true | |||
Before adoption of ASU 2014-09 | ||||
Revenue Recognition | ||||
Noninterest Income (in-scope of Topic 606) | 203 | $ 583 | ||
Noninterest Income (out-scope of Topic 606) | 150 | 921 | ||
Total Noninterest Income | 353 | 1,504 | ||
Service Charges on Deposit Accounts | ||||
Revenue Recognition | ||||
Noninterest Income (in-scope of Topic 606) | 158 | 452 | ||
Service Charges on Deposit Accounts | Before adoption of ASU 2014-09 | ||||
Revenue Recognition | ||||
Noninterest Income (in-scope of Topic 606) | 146 | 402 | ||
Fees, Exchange, and Other Service Charges | ||||
Revenue Recognition | ||||
Noninterest Income (in-scope of Topic 606) | 60 | 177 | ||
Fees, Exchange, and Other Service Charges | Before adoption of ASU 2014-09 | ||||
Revenue Recognition | ||||
Noninterest Income (in-scope of Topic 606) | 50 | 141 | ||
Other | ||||
Revenue Recognition | ||||
Noninterest Income (in-scope of Topic 606) | $ 10 | $ 37 | ||
Other | Before adoption of ASU 2014-09 | ||||
Revenue Recognition | ||||
Noninterest Income (in-scope of Topic 606) | $ 7 | $ 40 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Thousands | Oct. 17, 2018USD ($)$ / sharesshares | Oct. 12, 2018location$ / sharesshares | Oct. 10, 2018$ / shares | Sep. 30, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) | Sep. 30, 2017$ / shares |
Subsequent Events | ||||||
Total assets | $ 1,175,437 | $ 1,053,224 | ||||
Total deposits | $ 993,986 | $ 928,163 | ||||
Common stock issuance price (in dollars per share) | $ / shares | $ 20 | $ 20 | ||||
Colombo | ||||||
Subsequent Events | ||||||
Total assets | $ 188,700 | |||||
Total loans | 147,100 | |||||
Total deposits | $ 138,700 | |||||
Subsequent event | ||||||
Subsequent Events | ||||||
Net proceeds from issuance | $ 33,500 | |||||
Subsequent event | Over allotment option | ||||||
Subsequent Events | ||||||
Common stock issuance at $20 per share (in shares | shares | 93,478 | |||||
Common stock issuance price (in dollars per share) | $ / shares | $ 20 | |||||
Net proceeds from issuance | $ 1,700 | |||||
Subsequent event | Colombo | ||||||
Subsequent Events | ||||||
Number of banking locations | location | 5 | |||||
Average closing price | $ / shares | $ 19.614 | |||||
Number of shares issuable per share | 0.002217 | |||||
Cash consideration per share | $ / shares | $ 0.053157 | |||||
Maximum limit of shares for the right to receive only cash payment | shares | 45,086 | |||||
Cash payment per share for shareholders having the right | $ / shares | $ 0.096649 | |||||
Number of shares expected to be issued due to merger | shares | 763,051 |