Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 10, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CSTR | ||
Entity Registrant Name | CAPSTAR FINANCIAL HOLDINGS, INC. | ||
Entity Central Index Key | 1,676,479 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 11,210,954 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 9,133,502 | $ 8,265,287 |
Interest-bearing deposits in financial institutions | 54,322,823 | 85,189,846 |
Federal funds sold | 16,654,481 | 6,729,708 |
Total cash and cash equivalents | 80,110,806 | 100,184,841 |
Securities available for sale, at fair value | 182,354,987 | 173,382,957 |
Securities held to maturity, fair value of $49,731,169, and $46,458,841 at December 31, 2016 and 2015, respectively | 46,863,640 | 43,093,951 |
Loans held for sale | 42,110,581 | 35,729,353 |
Loans and leases | 935,250,703 | 808,396,064 |
Less allowance for loan and lease losses | (11,633,531) | (10,131,729) |
Loans, net | 923,617,172 | 798,264,335 |
Premises and equipment, net | 5,350,226 | 4,896,447 |
Restricted equity securities | 6,031,700 | 5,413,500 |
Accrued interest receivable | 3,941,609 | 3,029,550 |
Goodwill | 6,218,867 | 6,218,867 |
Core deposit intangible | 70,912 | 125,045 |
Other real estate owned | 0 | 216,254 |
Deferred tax assets | 12,956,059 | 12,849,508 |
Bank owned life insurance | 21,900,465 | 21,299,068 |
Other assets | 2,148,039 | 2,096,603 |
Total assets | 1,333,675,063 | 1,206,800,279 |
Deposits: | ||
Non-interest-bearing | 197,787,618 | 190,580,468 |
Interest-bearing | 299,620,783 | 189,982,675 |
Savings and money market accounts | 447,685,909 | 437,214,054 |
Time | 183,627,943 | 220,683,113 |
Total deposits | 1,128,722,253 | 1,038,460,310 |
Securities sold under repurchase agreements | 3,755,000 | |
Federal Home Loan Bank advances | 55,000,000 | 45,000,000 |
Accrued interest payable | 211,578 | 176,540 |
Other liabilities | 10,533,836 | 10,822,322 |
Total liabilities | 1,194,467,667 | 1,098,214,172 |
Shareholders’ equity: | ||
Series A convertible preferred stock, $1 par value; 5,000,000 shares authorized; 878,049 and 1,609,756 shares issued and outstanding at December 31, 2016 and 2015, respectively | 878,049 | 1,609,756 |
Common stock, voting, $1 par value; 20,000,000 shares authorized; 11,204,515 and 8,577,051 shares issued and outstanding at December 31, 2016 and 2015, respectively | 11,204,515 | 8,577,051 |
Additional paid-in capital | 116,142,894 | 95,277,969 |
Retained earnings | 17,132,489 | 8,035,711 |
Accumulated other comprehensive loss, net of income tax | (6,150,551) | (4,914,380) |
Total shareholders’ equity | 139,207,396 | 108,586,107 |
Total liabilities and shareholders’ equity | $ 1,333,675,063 | $ 1,206,800,279 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $ 49,731,169 | $ 46,458,841 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 878,049 | 1,609,756 |
Preferred stock, shares outstanding | 878,049 | 1,609,756 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 11,204,515 | 8,577,051 |
Common stock, shares outstanding | 11,204,515 | 8,577,051 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest income: | |||
Loans, including fees | $ 40,212,379 | $ 34,844,200 | $ 32,802,823 |
Securities: | |||
Taxable | 3,447,684 | 4,152,507 | 4,138,453 |
Tax-exempt | 1,158,061 | 1,080,008 | 914,635 |
Federal funds sold | 19,159 | 18,480 | 24,964 |
Restricted equity securities | 280,985 | 268,171 | 258,300 |
Interest-bearing deposits in financial institutions | 276,488 | 140,367 | 147,569 |
Total interest income | 45,394,756 | 40,503,733 | 38,286,744 |
Interest expense: | |||
Interest-bearing deposits | 1,489,470 | 748,082 | 599,309 |
Savings and money market accounts | 2,859,064 | 2,732,985 | 2,753,858 |
Time deposits | 2,084,771 | 2,031,267 | 2,322,462 |
Federal funds purchased | 21,612 | 23,687 | 6,771 |
Securities sold under agreements to repurchase | 1,311 | 14,625 | 26,496 |
Federal Home Loan Bank advances | 475,308 | 179,866 | 162,000 |
Total interest expense | 6,931,536 | 5,730,512 | 5,870,896 |
Net interest income | 38,463,220 | 34,773,221 | 32,415,848 |
Provision for loan and lease losses | 2,828,633 | 1,650,675 | 3,868,855 |
Net interest income after provision for loan and lease losses | 35,634,587 | 33,122,546 | 28,546,993 |
Noninterest income: | |||
Service charges on deposit accounts | 1,108,153 | 909,698 | 1,079,931 |
Loan commitment fees | 1,118,565 | 822,162 | 941,218 |
Net gain on sale of securities | 120,873 | 55,023 | 13,457 |
Mortgage banking income | 7,375,064 | 5,961,766 | 4,067,013 |
Other noninterest income | 1,361,794 | 1,134,861 | 1,317,623 |
Total noninterest income | 11,084,449 | 8,883,510 | 7,419,242 |
Noninterest expense: | |||
Salaries and employee benefits | 20,460,510 | 19,278,328 | 17,474,156 |
Data processing and software | 2,372,854 | 2,316,707 | 2,566,371 |
Professional fees | 1,553,680 | 1,469,031 | 1,357,368 |
Occupancy | 1,498,405 | 1,538,157 | 1,511,687 |
Equipment | 1,743,340 | 1,598,156 | 1,259,000 |
Regulatory fees | 1,090,735 | 914,959 | 940,842 |
Other operating | 4,409,324 | 3,861,435 | 3,452,681 |
Total noninterest expense | 33,128,848 | 30,976,773 | 28,562,105 |
Income before income taxes | 13,590,188 | 11,029,283 | 7,404,130 |
Income tax expense | 4,493,410 | 3,469,847 | 2,412,386 |
Net income | $ 9,096,778 | $ 7,559,436 | $ 4,991,744 |
Per share information: | |||
Basic net income per share of common stock | $ 0.98 | $ 0.89 | $ 0.59 |
Diluted net income per share of common stock | $ 0.81 | $ 0.73 | $ 0.49 |
Weighted average shares outstanding: | |||
Basic | 9,328,236 | 8,538,970 | 8,456,386 |
Diluted | 11,212,026 | 10,381,895 | 10,281,044 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 9,096,778 | $ 7,559,436 | $ 4,991,744 |
Unrealized gains (losses) on securities available for sale: | |||
Unrealized holding gains (losses) arising during the period | (1,180,928) | (945,994) | 3,497,157 |
Reclassification adjustment for gains included in net income | (120,873) | (55,023) | (13,457) |
Tax effect | 498,460 | 383,289 | (1,333,909) |
Net of tax | (803,341) | (617,728) | 2,149,791 |
Unrealized losses on securities transferred to held to maturity: | |||
Reclassification adjustment for losses included in net income | 166,879 | 166,879 | 166,879 |
Tax effect | (63,898) | (63,898) | (63,898) |
Net of tax | 102,981 | 102,981 | 102,981 |
Unrealized gains (losses) on cash flow hedges: | |||
Unrealized holding gains (losses) arising during the period | (330,209) | (1,485,799) | (3,695,434) |
Reclassification adjustment for losses included in net income | 416,148 | 37,181 | |
Tax effect | (621,750) | (117,626) | 1,414,982 |
Net of tax | (535,811) | (1,566,244) | (2,280,452) |
Other comprehensive income (loss) | (1,236,171) | (2,080,991) | (27,680) |
Comprehensive income | $ 7,860,607 | $ 5,478,445 | $ 4,964,064 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2013 | $ 96,190,925 | $ 1,609,756 | $ 8,353,087 | $ 93,549,260 | $ (4,515,469) | $ (2,805,709) |
Beginning balance, shares at Dec. 31, 2013 | 8,353,087 | |||||
Issuance of restricted common stock, net of forfeitures | $ 10,929 | (10,929) | ||||
Issuance of restricted common stock, net of forfeitures, shares | 10,929 | |||||
Stock-based compensation expense | 261,035 | 261,035 | ||||
Excess tax benefit from stock compensation | 12,349 | 12,349 | ||||
Issuance of common stock pursuant to acquisition of Farmington Financial Group, LLC | 1,148,000 | $ 100,000 | 1,048,000 | |||
Issuance of common stock pursuant to acquisition of Farmington Financial Group, LLC, shares | 100,000 | |||||
Exercise of employee common stock options | 75,000 | $ 7,500 | 67,500 | |||
Exercise of employee common stock options, shares | 7,500 | |||||
Net income | 4,991,744 | 4,991,744 | ||||
Other Comprehensive loss | (27,680) | (27,680) | ||||
Ending balance at Dec. 31, 2014 | 102,651,373 | 1,609,756 | $ 8,471,516 | 94,927,215 | 476,275 | (2,833,389) |
Ending balance, shares at Dec. 31, 2014 | 8,471,516 | |||||
Issuance of restricted common stock, net of forfeitures | $ 104,535 | (104,535) | ||||
Issuance of restricted common stock, net of forfeitures, shares | 104,535 | |||||
Stock-based compensation expense | 438,003 | 438,003 | ||||
Excess tax benefit from stock compensation | 8,286 | 8,286 | ||||
Exercise of employee common stock options | 10,000 | $ 1,000 | 9,000 | |||
Exercise of employee common stock options, shares | 1,000 | |||||
Net income | 7,559,436 | 7,559,436 | ||||
Other Comprehensive loss | (2,080,991) | (2,080,991) | ||||
Ending balance at Dec. 31, 2015 | 108,586,107 | 1,609,756 | $ 8,577,051 | 95,277,969 | 8,035,711 | (4,914,380) |
Ending balance, shares at Dec. 31, 2015 | 8,577,051 | |||||
Issuance of restricted common stock, net of forfeitures and withholdings to satisfy employee tax obligations | (33,623) | $ 99,560 | (133,183) | |||
Issuance of restricted common stock, net of forfeitures and withholdings to satisfy employee tax obligations, shares | 99,560 | |||||
Stock-based compensation expense | 842,451 | 842,451 | ||||
Excess tax benefit from stock compensation | 61,217 | 61,217 | ||||
Exercise of employee common stock options | $ 96,306 | $ 8,125 | 88,181 | |||
Exercise of employee common stock options, shares | 8,125 | 8,125 | ||||
Issuance of common stock | $ 21,562,716 | $ 1,688,049 | 19,874,667 | |||
Issuance of common stock, shares | 1,688,049 | |||||
Conversion of preferred stock | (731,707) | $ 731,707 | ||||
Conversion of preferred stock, shares | 731,707 | |||||
Exercise of common stock warrants | 231,615 | $ 100,023 | 131,592 | |||
Exercise of common stock warrants, shares | 100,023 | |||||
Net income | 9,096,778 | 9,096,778 | ||||
Other Comprehensive loss | (1,236,171) | (1,236,171) | ||||
Ending balance at Dec. 31, 2016 | $ 139,207,396 | $ 878,049 | $ 11,204,515 | $ 116,142,894 | $ 17,132,489 | $ (6,150,551) |
Ending balance, shares at Dec. 31, 2016 | 11,204,515 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 9,096,778 | $ 7,559,436 | $ 4,991,744 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Provision for loan and lease losses | 2,828,633 | 1,650,675 | 3,868,855 |
Accretion of discounts on acquired loans and deferred fees | (1,710,051) | (2,236,662) | (1,940,116) |
Depreciation and amortization | 422,478 | 505,520 | 625,040 |
Net amortization of premiums on investment securities | 1,526,957 | 1,466,948 | 1,232,627 |
Securities gains, net | (120,873) | (55,023) | (13,457) |
Mortgage banking income | (7,375,064) | (5,961,766) | (4,067,013) |
Net (gain) loss on disposal of premises and equipment | (28,381) | 836 | |
Net (gain) loss on sale of other real estate owned | (157,184) | 3,506 | 178,214 |
Stock-based compensation | 842,451 | 438,004 | 261,035 |
Excess tax benefit from stock compensation | (61,217) | (8,286) | (12,349) |
Deferred income tax (benefit) expense | (293,739) | 506,672 | 461,694 |
Origination of loans held for sale | (522,036,970) | (422,323,041) | (253,099,211) |
Proceeds from loans held for sale | 523,030,806 | 407,941,300 | 245,891,363 |
Net (increase) decrease in accrued interest receivable and other assets | (1,538,577) | 101,973 | (879,093) |
Net increase (decrease) in accrued interest payable and other liabilities | 1,812,670 | 1,091,096 | (4,483,619) |
Net cash provided by (used in) operating activities | 6,267,098 | (9,348,029) | (6,983,450) |
Activities in securities available for sale: | |||
Purchases | (81,946,658) | (57,704,023) | (163,194,507) |
Sales | 46,700,357 | 90,445,352 | 161,603,143 |
Maturities, prepayments and calls | 23,644,239 | 28,151,835 | 25,777,185 |
Activities in securities held to maturity: | |||
Purchases | (5,336,200) | (2,512,122) | |
Maturities, prepayments and calls | 1,655,537 | 833,198 | 704,041 |
Purchase of restricted equity securities | (618,200) | (348,550) | (170,100) |
Net increase in loans | (126,471,419) | (95,883,666) | (85,892,972) |
Purchase of premises and equipment | (813,401) | (30,778) | (302,609) |
Proceeds from the sale of premises and equipment | 233,387 | ||
Proceeds from sale of other real estate | 373,438 | 354,840 | 790,161 |
Purchase of bank owned life insurance | (5,000,000) | ||
Cash paid in acquisition of Farmington Financial Group, LLC | (3,000,000) | ||
Net cash used in investing activities | (142,812,307) | (33,948,405) | (71,197,780) |
Cash flows from financing activities: | |||
Net increase in deposits | 90,261,943 | 57,403,652 | 101,891,830 |
Proceeds from Federal Home Loan Bank advances | 55,000,000 | 25,000,000 | |
Payments on Federal Home Loan Bank advances | (45,000,000) | ||
Issuance of common stock | (21,562,716) | ||
Exercise of common stock options and warrants, net of repurchase of restricted shares | 294,298 | 10,000 | 75,000 |
Excess tax benefit from stock compensation | 61,217 | 8,286 | 12,349 |
Termination of interest rate swap agreement | (1,954,000) | (1,793,000) | |
Net decrease in repurchase agreements | (3,755,000) | (11,082,000) | 5,343,000 |
Net cash provided by financing activities | 116,471,174 | 69,546,938 | 107,322,179 |
Net increase (decrease) in cash and cash equivalents | (20,074,035) | 26,250,504 | 29,140,949 |
Cash and cash equivalents at beginning of period | 100,184,841 | 73,934,337 | 44,793,388 |
Cash and cash equivalents at end of period | 80,110,806 | 100,184,841 | 73,934,337 |
Supplemental disclosures of cash paid: | |||
Interest paid | 6,896,499 | 5,768,230 | 5,926,316 |
Income taxes | 4,113,908 | 2,081,723 | 1,768,256 |
Supplemental disclosures of noncash transactions: | |||
Loans charged off to the allowance for loan and lease losses | 1,451,570 | 3,205,671 | 1,147,442 |
Transfer of loans to other real estate | $ 0 | $ 0 | 91,975 |
Common stock issued in acquisition of Farmington Financial Group, LLC | $ 1,148,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements as of and for the period ended December 31, 2016 include CapStar Financial Holdings, Inc. and it’s wholly owned subsidiary, CapStar Bank (the “Bank”, together referred to as the “Company”). Significant intercompany transactions and accounts are eliminated in consolidation. The financial statements as of and for the two year period ended December 31, 2015 only include CapStar Bank because the share exchange pursuant to which CapStar Financial Holdings, Inc., a bank holding company and a Tennessee corporation, became the parent company of CapStar Bank had not yet taken place. On February 5, 2016, CapStar Financial Holdings, Inc. acquired all of the Bank’s issued and outstanding shares of common stock, preferred stock, common stock options and warrants, and the Bank became the wholly owned subsidiary of CapStar Financial Holdings, Inc. (the “Share Exchange”). The consolidated financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) and conform to general practices within the banking industry. Nature of Operations Through the Bank, the Company provides full banking services to consumer and corporate customers located primarily in Davidson, Sumner, Williamson, and the surrounding counties in Tennessee. The Bank operates under a state bank charter and is a member of the Federal Reserve System. As a state member bank, the Bank is subject to regulations of the Tennessee Department of Financial Institutions, the Board of Governors of the Federal Reserve System (the “Federal Reserve”), and the Federal Deposit Insurance Corporation. Initial Public Offering On September 21, 2016, the Securities and Exchange Commission (SEC) declared effective our registration statement on Form S-1 registering the shares of our common stock. On September 27, 2016, we completed the initial public offering of 2,972,750 shares of our common stock. Of the 2,972,750 shares sold, 1,688,049 shares were sold by us and 1,284,701 shares were sold by certain selling shareholders. Of the 1,284,701 shares sold by certain selling shareholders, 731,707 were from preferred shares converted to common shares and 79,166 from the cashless exercise of 250,000 common share warrants. We received net proceeds of approximately $21.6 million from the offering, after deducting the underwriting discounts and commissions and offering expenses. We did not receive any proceeds from the sale of shares by the selling shareholders. Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan and lease losses, determination of impairment of intangible assets, including goodwill, the valuation of our investment portfolio, deferred tax assets and estimated liabilities. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest-bearing deposits in financial institutions and federal funds sold. Generally, federal funds sold are purchased and sold for one-day periods. The Company maintains deposits in excess of the federal insurance amounts with other financial institutions. Management makes deposits only with financial institutions it considers to be financially sound. Securities The Bank accounts for securities under the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320, Investments – Debt and Equity Securities Securities Held to Maturity - Debt securities are classified as held to maturity securities when the Bank has the positive intent and ability to hold the securities to maturity. Securities held to maturity are carried at amortized cost. Trading Securities - Debt and equity securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. No securities have been classified as trading securities. Securities Available for Sale - Debt and equity securities not classified as either held to maturity securities or trading securities are classified as available for sale securities. Securities available for sale are carried at estimated fair value with unrealized gains and losses excluded from earnings and reported as a separate component of shareholders’ equity in other comprehensive income (loss). Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Realized gains and losses from the sales of securities are recorded on the trade date and determined using the specific-identification method. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, the financial condition and near-term prospects of the issuer and any collateral underlying the relevant security. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement and (2) OTTI related to other factors, which is recognized in other comprehensive income (loss). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Realized gains and losses are recognized when legal title of the loan has transferred to the investor and sales proceeds have been received and are reflected in the accompanying statement of income in gain on sale of loans, net of related costs such as commission expenses. The Company does not securitize mortgage loans and does not retain the servicing for loans sold. Loans The Company has six classes of loans for financial reporting purposes: commercial real estate, consumer real estate, construction and land development, commercial and industrial, consumer and other. The appropriate classification is determined based on the underlying collateral utilized to secure each loan. Commercial real estate loans are categorized as such based on investor exposures where repayment is largely dependent upon the operation, refinance, or sale of the underlying real estate. Commercial real estate also includes owner occupied commercial real estate. Consumer real estate consists primarily of 1-4 family residential properties including home equity lines of credit. Construction and land development loans include loans where the repayment is dependent on the successful operation of the related real estate project. Construction and land development loans include 1-4 family construction projects and commercial construction endeavors such as warehouses, apartments, office and retail space and land acquisition and development. Commercial and industrial loans include loans to business enterprises issued for commercial, industrial and/or other professional purposes. Consumer loans include all loans issued to individuals not included in the consumer real estate class. Other loans include all loans not included in the classes of loans above and leases. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs, and an allowance for loan and lease losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well secured and in process of collection. Consumer loans and any accrued interest is typically charged off no later than 180 days past due. Past-due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful and collection is highly questionable. Amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans can also be returned to accrual status when they become well secured and in the process of collection. Acquired Loans Acquired loans are accounted for under the acquisition method of accounting. The acquired loans are recorded at their estimated fair values as of the acquisition date. Fair value of acquired loans is determined using a discounted cash flow model based on assumptions regarding the amount and timing of principal and interest payments, estimated prepayments, estimated default rates, estimated loss severity in the event of defaults, and current market rates. Estimated credit losses are included in the determination of fair value; therefore, an allowance for loan and lease losses is not recorded on the acquisition date. An acquired loan is considered impaired when there is evidence of credit deterioration since origination and it is probable at the date of acquisition that the Bank will be unable to collect all contractually required payments. Acquired impaired loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as loan type and risk rating. The Company estimates the amount and timing of expected cash flows for each loan or pool, and the expected cash flows in excess of amount paid (fair value) is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan and lease losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Acquired non-impaired loans are recorded at their initial fair value and adjusted for subsequent advances, pay downs, amortization or accretion of any premium or discount on purchase, charge-offs and additional provisioning that may be required. Allowance for Loan and Lease Losses The allowance for loan and lease losses (“ALLL”) is maintained at a level that management believes to be adequate to absorb expected loan and lease losses inherent in the loan portfolio as of the balance sheet date. The allowance for loan and lease losses is a valuation allowance for estimated credit losses inherent in the loan and lease portfolio, increased by the provision for loan and lease losses and decreased by charge-offs, net of recoveries. Quarterly, the Company estimates the allowance required using peer group loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. The Company’s historical loss experience is based on the actual loss history by class of loan for comparable peer institutions due to the Company’s limited loss history. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. Loan and lease losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries are credited to the allowance for loan and lease losses. The Company also considers the results of the external independent loan review when assessing the adequacy of the allowance and incorporates relevant loan review results in the loan impairment and overall adequacy of allowance determinations. Furthermore, regulatory agencies periodically review the Company’s allowance for loan and lease losses and may require the Company to record adjustments to the allowance based on their judgment of information available to them at the time of their examinations. Additional considerations are included in the determination of the adequacy of the allowance based on the continuous review conducted by relationship managers and credit department personnel. The Company’s loan policy requires that each customer relationship wherein total exposure exceeds $1.5 million be subject to a formal credit review at least annually. Should these reviews identify potential collection concerns, appropriate adjustments to the allowance may be made. The allowance consists of specific and general components as discussed below. While the allowance consists of separate components, these terms are primarily used to describe a process. Both portions of the allowance are available to provide for inherent losses in the entire portfolio. Specific Component The specific component relates to loans that are individually determined to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDRs”) and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans meeting any of the following criteria are individually evaluated for impairment: risk rated substandard (as defined in Note 4), on non-accrual status or past due greater than 90 days. If a loan is impaired, a portion of the allowance is allocated based on the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral less costs to sell if repayment is expected solely from the collateral. Changes to the valuation allowance are recorded as a component of the provision for loan and lease losses. TDRs are individually evaluated for impairment and included in the separately identified impairment disclosures. TDRs are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral less costs to sell. General Component The general component of the allowance for loan and lease losses covers loans that are collectively evaluated for impairment. Large groups of homogeneous loans are collectively evaluated for impairment, and accordingly, they are not included in the separately identified impairment disclosures. The general allowance component also includes loans that are individually identified for impairment evaluation but are not considered impaired. The general component is based on historical loss experience adjusted for current factors. Due to the Company’s limited loss history, the historical loss experience is based on the actual loss history by class of loan for comparable peer institutions. The Company utilized a 24 quarter look-back period as of December 31, 2015. Subsequently, the Company increased its look-back period for a total of 28 quarters as of December 31, 2016. In the current economic environment, management believes the extension of the look-back period was ncessary in order to capture sufficient loss observations to develop a reliable loss estimate of credit losses. This extension of the historical look-back period to capture the historical loss experience of peer banks was applied to all classes and segments of our loan portfolio. The actual loss experience is supplemented with other environmental factors that capture changes in trends, conditions, and other relevant factors that may cause estimated credit losses as of the evaluation date to differ from historical loss experience. The allocation for environmental factors is by nature subjective. These amounts represent estimated probable inherent credit losses, which exist but have not been captured in the historical loss experience. The environmental factors include consideration of the following: changes in lending policies and procedures, economic conditions, nature and volume of the portfolio, experience of lending management, volume and severity of past due loans, quality of the loan review system, value of underlying collateral for collateral dependent loans, concentrations, and other external factors. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Bank, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized by the straight-line method based on the shorter of the asset lives or the expected lease terms. Useful lives for premises and equipment range from three to thirty-nine years. These assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. The Company is the lessee with respect to several office locations. All such leases are accounted for as operating leases within the accompanying financial statements. These leases include rent escalation clauses. The Company expenses the costs associated with these escalating payments over the life of the expected lease term using the straight-line method. As of December 31, 2016, the deferred liability associated with these escalating rentals was approximately $161,000 and is included in other liabilities in the accompanying balance sheets. Bank Owned Life Insurance The Bank has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Securities Sold under Agreements to Repurchase The Bank enters into sales of securities under agreements to repurchase at a specified future date. Such repurchase agreements are considered financing arrangements and, accordingly, the obligation to repurchase assets sold is reflected as a liability in the balance sheets of the Bank. Repurchase agreements are collateralized by debt securities which are owned and under the control of the Bank. Goodwill and Other Intangible Assets Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. The Company has selected October 31st as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on the balance sheet. Other intangible assets consist of core deposit intangible assets arising from whole bank acquisitions and are amortized on an accelerated method over their estimated useful lives, which range from five to six years. Other Real Estate Owned Other real estate owned (“OREO”) includes assets that have been acquired in satisfaction of debt through foreclosure and are recorded at estimated fair value less the estimated cost of disposition. Fair value is based on independent appraisals and other relevant factors. Valuation adjustments required at foreclosure are charged to the allowance for loan and lease losses. Subsequent to foreclosure, additional losses resulting from the periodic revaluation of the property are charged to other real estate expense. Costs of operating and maintaining the properties and any gains or losses recognized on disposition are also included in other real estate expense. Improvements made to properties are capitalized if the expenditures are expected to be recovered upon the sale of the properties. Restricted Equity Securities The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest additional amounts. FHLB stock is carried at cost, classified as a restricted equity security, and periodically evaluated for impairment based on an assessment of the ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank is also a member of the Federal Reserve System, and as such, holds stock of the Federal Reserve Bank of Atlanta (“Federal Reserve Bank”). Federal Reserve Bank stock is carried at cost, classified as a restricted equity security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company’s tax returns remain open to audit under the statute of limitations by the IRS and various states for the years ended December 31, 2013 through 2016. It is the Company’s policy to recognize interest and/or penalties related to income tax matters in income tax expense. Stock-Based Compensation Stock-based compensation expense is recognized based on the fair value of the portion of stock-based payment awards that are ultimately expected to vest, reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation expense is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation expense is recognized on a straight-line basis over the requisite service period for the entire award. For awards with performance vesting criteria, anticipated performance is projected to determine the number of awards expected to vest, and the corresponding aggregate expense is adjusted to reflect the elapsed portion of the performance period. Advertising Costs Advertising costs are expensed as incurred. Advertising expense was approximately $252,000, $310,000 and $460,000 for the years ended December 31, 2016, 2015 and 2014, respectively. Off-Balance Sheet Financial Instruments In the ordinary course of business, the Bank has entered into off-balance-sheet financial instruments consisting of commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or related fees are incurred or received. Derivative Instruments Derivative instruments are recorded on the balance sheet at their respective fair values. The accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship. If the derivative instrument is not designated as a hedge, the gain or loss on the derivative instrument is recognized in earnings in the period of change. The Bank enters into interest rate swaps (“swaps”) to facilitate customer transactions and meet their financing needs. Upon entering into these arrangements to meet customer needs, the Bank enters into offsetting positions with large U.S. financial institutions in order to minimize risk to the Bank. These swaps are derivatives, but are not designated as hedging instruments. The Bank also has forward starting cash flow hedges to manage its future interest rate exposure. These derivative contracts have been designated as hedges and, as such, changes in the fair value of these derivative instruments are recorded in other comprehensive income (loss). The Bank prepares written hedge documentation for all derivatives which are designated as hedges. The written hedge documentation includes identification of, among other items, the risk management objective, hedging instrument, hedged item and methodologies for assessing and measuring hedge effectiveness and ineffectiveness, along with support for management’s assertion that the hedge will be highly effective. The effective portion of the changes in the fair value of a derivative that is highly effective and that has been designated and qualifies as a cash flow hedge are initially recorded in accumulated other comprehensive income (loss) and subsequently reclassified into earnings in the same period during which the hedged item affects earnings. The ineffective portion, if any, would be recognized in current period earnings. The Bank discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative is settled or terminates, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income (loss) are amortized into earnings over the same periods which the hedged transactions will affect earnings. Cash flows resulting from the derivative financial instruments that are accounted for as hedges are classified in the cash flow statement in the same category as the cash flows of the items being hedged. Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, unrealized gains and losses on securities transferred to held to maturity and unrealized gains and losses on cash flow hedges which are also recognized as separate components of equity. Fair Value Measurements Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. Restriction on Cash Balances Regulation D of the Federal Reserve Act requires that banks maintain reserve balances with their applicable Federal Reserve Bank based principally on the type and amount of their deposits. The Bank was required to have a reserve balance of $40,902,000 and $27,105,000 at December 31, 2016 and 2015, respectively. The reserve balance that the Bank must maintain at the Federal Reserve Bank of Atlanta is included in interest-bearing deposits in financial institutions as of December 31, 2016 and 2015. Subsequent Events The Company has evaluated subsequent events for recognition and disclosure through March 13, 2017, which is the date the financial statements were available to be issued. Income Per Common Share Basic net income per share available to common stockholders (“EPS”) is computed by dividing net income available to common stockholders by the weighted average shares of common stock outstanding for the period. Diluted EPS reflects the dilution that could occur if securities or other contracts to issue common stock were exercised or converted. The difference between basic and diluted weighted average shares outstanding is attributable to convertible preferred stock, common stock options and warrants. The dilutive effect of outstanding convertible preferred stock, common stock options and warrants is reflected in diluted EPS by application of the treasury stock method. For the years ended December 31, 2016, 2015, and 2014 respectively, approximately 0, 203,000 and 133,000 of antidilutive stock options were excluded from the |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | NOTE 2 – BUSINESS COMBINATIONS On February 3, 2014, the Bank completed its acquisition of Farmington Financial Group, LLC (Farmington), a Tennessee limited liability company headquartered in Nashville, Tennessee. Farmington primarily originates residential real estate loans that are sold in the secondary market. The Bank acquired all the assets and liabilities of Farmington for approximately $6.4 million in total consideration. The operations of Farmington are included in the Bank’s financial statements beginning February 3, 2014. Pre-acquisition amounts in 2014 are not significant. Goodwill of approximately $6.2 million arising from the acquisition consisted largely of synergies and the cost savings resulting from the combining of the operations of the companies. At the time of acquisition, the amount of goodwill that was expected to be deductible for income taxes purposes was approximately $4.0 million. The following table summarizes the consideration paid for Farmington and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date (in thousands): Consideration: Cash $ 3,000 Equity instruments 1,148 Contingent consideration 2,206 Fair value of total consideration transferred $ 6,354 Fair value of assets acquired: Loans held for sale $ 4,111 Premises and equipment 102 Total assets acquired 4,213 Fair value of liabilities assumed: Warehouse line of credit 3,996 Other liabilities 31 Total liabilities assumed 4,027 Total identifiable net assets acquired 186 Goodwill 6,168 $ 6,354 The fair value of loans held for sale was determined based on contracts with investors. Fair values for all other assets and liabilities assumed was based upon book value, which approximated fair value. Contingent consideration is based on a five year earn-out, payable annually. As of the acquisition date the total contingent consideration payable was estimated to range from $2.0 million to $4.2 million on an undiscounted basis. The fair value of contingent consideration is based on an income approach utilizing a discounted cash flow model. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | NOTE 3 – INVESTMENT SECURITIES Investment securities have been classified in the balance sheet according to management’s intent. The Company’s classification of securities at December 31, 2016 and 2015 was as follows (in thousands): December 31, 2016 December 31, 2015 Amortized Cost Gross unrealized gains Gross unrealized (losses) Estimated fair value Amortized Cost Gross unrealized gains Gross unrealized (losses) Estimated fair value Securities available for sale: U. S. government agency securities $ 9,517 $ — $ (143 ) $ 9,374 $ 19,562 $ 16 $ (36 ) $ 19,542 State and municipal securities 28,480 65 (632 ) 27,913 13,776 99 (7 ) 13,868 Mortgage-backed securities 126,637 17 (2,059 ) 124,595 119,828 13 (1,461 ) 118,380 Asset-backed securities 21,620 — (1,147 ) 20,473 22,814 — (1,221 ) 21,593 Total $ 186,254 $ 82 $ (3,981 ) $ 182,355 $ 175,980 $ 128 $ (2,725 ) $ 173,383 Securities held to maturity: State and municipal securities $ 36,842 $ 2,784 $ — $ 39,626 $ 37,005 $ 3,245 $ — $ 40,250 Mortgage-backed securities 4,687 79 — 4,766 6,089 120 — 6,209 Other debt securities 5,335 11 (7 ) 5,339 — — — — Total $ 46,864 $ 2,874 $ (7 ) $ 49,731 $ 43,094 $ 3,365 $ — $ 46,459 During the third quarter of 2013, approximately $36,789,000 of available for sale securities were transferred to the held to maturity category. The transfers of the securities into the held to maturity category from the available for sale category were made at fair value at the date of transfer. The unrealized holding loss at the date of the transfer continues to be reported in a separate component of shareholders’ equity and is being amortized over the remaining life of the securities as an adjustment of yield in a manner consistent with the amortization of the premiums and discounts. The amortized cost and fair value of debt and equity securities at December 31, 2016, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Available-for-sale Held-to-maturity Amortized cost Estimated fair value Amortized cost Estimated fair value Due one to five years $ 11,425 $ 11,319 $ 17,628 $ 18,500 Due five to ten years 21,077 20,841 16,732 17,761 Due beyond ten years 5,495 5,127 7,817 8,704 Mortgage-backed securities 126,637 124,595 4,687 4,766 Asset-backed securities 21,620 20,473 — — $ 186,254 $ 182,355 $ 46,864 $ 49,731 Results from sales of debt and equity securities were as follows (in thousands): Year ended December 31 2016 2015 2014 Available for sale: Proceeds from sales of securities $ 46,700 $ 90,445 $ 161,603 Gross realized gains 244 261 520 Gross realized losses (123 ) (206 ) (507 ) Securities with a carrying value of $133,297,000 and $146,921,000 at December 31, 2016 and 2015, respectively, were pledged to collateralize public deposits, securities sold under repurchase agreements, derivative positions and Federal Home Loan Bank advances. At December 31, 2016 and 2015, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity. The following tables show the Company’s securities with unrealized losses, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands): Less than 12 months 12 months or more Total December 31, 2016 Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses U. S. government agency securities $ 9,374 $ (143 ) $ — $ — $ 9,374 $ (143 ) State and municipal securities 20,279 (632 ) — — 20,279 (632 ) Mortgage-backed securities 110,563 (1,955 ) 4,150 (104 ) 114,713 (2,059 ) Asset-backed securities — — 20,473 (1,147 ) 20,473 (1,147 ) Other debt securities 2,029 (7 ) — — 2,029 (7 ) Total temporarily impaired securities $ 142,245 $ (2,737 ) $ 24,623 $ (1,251 ) $ 166,868 $ (3,988 ) December 31, 2015 U. S. government agency securities $ 13,100 $ (36 ) $ — $ — $ 13,100 $ (36 ) State and municipal securities 3,099 (7 ) — — 3,099 (7 ) Mortgage-backed securities 97,154 (1,068 ) 16,260 (393 ) 113,414 (1,461 ) Asset-backed securities — — 21,593 (1,221 ) 21,593 (1,221 ) Total temporarily impaired securities $ 113,353 $ (1,111 ) $ 37,853 $ (1,614 ) $ 151,206 $ (2,725 ) Declines in the fair value of securities below their cost that are deemed to be other-than-temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment of available for sale securities related to other factors is recognized in other comprehensive income (loss). In estimating other-than-temporary impairment losses, management considers, among other things, the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. The unrealized losses shown above are primarily due to increases in market rates over the yields available at the time of purchase of the underlying securities and not credit quality. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost bases, which may be maturity, the Company does not consider these securities to be other than temporarily impaired at December 31, 2016. There were no other-than-temporary impairments for the years ended December 31, 2016 and 2015. |
Loans and Allowance for Loan an
Loans and Allowance for Loan and Lease Losses | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Loans and Allowance for Loan and Lease Losses | NOTE 4 – LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES Loans at December 31, 2016 and 2015 were as follows (in thousands): December 31, 2016 December 31, 2015 Commercial real estate $ 302,322 $ 251,197 Consumer real estate 97,015 93,785 Construction and land development 94,491 52,522 Commercial and industrial 379,620 353,442 Consumer 5,974 8,668 Other 56,796 50,197 Total 936,218 809,811 Less net unearned income (967 ) (1,415 ) 935,251 808,396 Allowance for loan and lease losses (11,634 ) (10,132 ) $ 923,617 $ 798,264 At December 31, 2016, variable-rate and fixed-rate loans totaled $546,848,000 and $389,370,000, respectively. At December 31, 2015, variable-rate and fixed-rate loans totaled $401,800,000 and $408,011,000, respectively. Fixed-rate loans include certain variable-rate loans that have reached their respective floor rates. 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, credit documentation, public information, and current economic trends, among other factors. The Company analyzes all commercial loans, and consumer relationships with an outstanding balance greater than $500,000, individually and assigns each loan a risk rating. This analysis is performed on a continual basis by the relationship managers and credit department personnel. On at least an annual basis an independent party performs a formal credit risk review of a sample of the loan portfolio. Among other things, this review assesses the appropriateness of the loan’s risk rating. The Company uses the following definitions for risk ratings: Special Mention – A special mention asset possesses deficiencies or potential weaknesses deserving of management’s attention. If uncorrected, such weaknesses or deficiencies may expose the Company to an increased risk of loss in the future. Substandard – A substandard asset is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard. Doubtful – A doubtful asset has all weaknesses inherent in one classified substandard, with the added characteristic that weaknesses make collection or liquidation in full, on the basis of existing facts, conditions, and values, highly questionable and improbable. The probability of loss is extremely high, but certain important and reasonable specific pending factors which may work to the advantage and strengthening of the asset exist, therefore, its classification as an estimated loss is deferred until a more exact status may be determined. Pending factors include proposed merger, acquisition or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans. Loans not falling into the criteria above are considered to be pass-rated loans. The Company utilizes six loan grades within the pass risk rating. The following table provides the risk category of loans by applicable class of loans as of December 31, 2016 and 2015 (in thousands): Performing Loans December 31, 2016 Pass Special Mention Substandard Total Performing Total Loans Total Commercial real estate $ 301,012 $ — $ — $ 301,012 $ 1,310 $ 302,322 Consumer real estate 96,722 — 293 97,015 — 97,015 Construction and land development 94,491 — — 94,491 — 94,491 Commercial and industrial 349,857 11,035 16,419 377,311 2,309 379,620 Consumer 5,958 — 16 5,974 — 5,974 Other 56,796 — — 56,796 — 56,796 Total $ 904,836 $ 11,035 $ 16,728 $ 932,599 $ 3,619 $ 936,218 December 31, 2015 Commercial real estate $ 249,249 $ — $ — $ 249,249 $ 1,948 $ 251,197 Consumer real estate 93,181 — — 93,181 604 93,785 Construction and land development 52,522 — — 52,522 — 52,522 Commercial and industrial 338,106 6,230 9,106 353,442 — 353,442 Consumer 8,543 — — 8,543 125 8,668 Other 50,197 — — 50,197 — 50,197 Total $ 791,798 $ 6,230 $ 9,106 $ 807,134 $ 2,677 $ 809,811 None of the Company’s loans had a risk rating of “Doubtful” as of December 31, 2016 and 2015, respectively. The following tables detail the changes in the ALLL from December 31, 2013 through December 31, 2016 by loan classification and the allocation of the ALLL (in thousands): Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total Allowance for Loan and Lease Losses: Balances, December 31, 2013 $ 1,408 $ 688 $ 332 $ 5,870 $ 81 $ 80 $ 8,459 Charged-off loans (92 ) (57 ) — (816 ) (182 ) — (1,147 ) Recoveries — 21 — 52 28 — 101 Provision for loan and lease losses 219 (31 ) 76 3,434 148 23 3,869 Balances, December 31, 2014 $ 1,535 $ 621 $ 408 $ 8,540 $ 75 $ 103 $ 11,282 Collectively evaluated for impairment $ 1,250 $ 448 $ 235 $ 6,140 $ 75 $ 103 $ 8,251 Individually evaluated for impairment 285 173 — 2,400 — — 2,858 Loans acquired with deteriorated credit quality — — 173 — — — 173 Balances, December 31, 2014 $ 1,535 $ 621 $ 408 $ 8,540 $ 75 $ 103 $ 11,282 Loans: Collectively evaluated for impairment $ 217,628 $ 77,056 $ 45,058 $ 329,807 $ 7,911 $ 29,393 $ 706,853 Individually evaluated for impairment 2,165 592 — 3,806 — — 6,563 Loans acquired with deteriorated credit quality — 40 1,135 — — — 1,175 Balances, December 31, 2014 $ 219,793 $ 77,688 $ 46,193 $ 333,613 $ 7,911 $ 29,393 $ 714,591 Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total Allowance for Loan and Lease Losses: Balances, December 31, 2014 $ 1,535 $ 621 $ 408 $ 8,540 $ 75 $ 103 $ 11,282 Charged-off loans — (173 ) — (3,033 ) — — (3,206 ) Recoveries 31 68 — 299 7 — 405 Provision for loan and lease losses 1,313 452 506 (1,113 ) 21 472 1,651 Balances, December 31, 2015 $ 2,879 $ 968 $ 914 $ 4,693 $ 103 $ 575 $ 10,132 Collectively evaluated for impairment $ 2,314 $ 968 $ 914 $ 4,693 $ 103 $ 575 $ 9,567 Individually evaluated for impairment 565 — — — — — 565 Loans acquired with deteriorated credit quality — — — — — — — Balances, December 31, 2015 $ 2,879 $ 968 $ 914 $ 4,693 $ 103 $ 575 $ 10,132 Loans: Collectively evaluated for impairment $ 249,249 $ 93,181 $ 52,522 $ 353,442 $ 8,543 $ 50,197 $ 807,134 Individually evaluated for impairment 1,948 604 — — 125 — 2,677 Loans acquired with deteriorated credit quality — — — — — — — Balances, December 31, 2015 $ 251,197 $ 93,785 $ 52,522 $ 353,442 $ 8,668 $ 50,197 $ 809,811 Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total Allowance for Loan and Lease Losses: Balances, December 31, 2015 $ 2,879 $ 968 $ 914 $ 4,693 $ 103 $ 575 $ 10,132 Charged-off loans (350 ) — — (956 ) (146 ) — (1,452 ) Recoveries 52 — — 23 50 — 125 Provision for loan and lease losses 74 45 660 1,858 69 123 2,829 Balances, December 31, 2016 $ 2,655 $ 1,013 $ 1,574 $ 5,618 $ 76 $ 698 $ 11,634 Collectively evaluated for impairment $ 2,655 $ 1,013 $ 1,574 $ 5,118 $ 76 $ 698 $ 11,134 Individually evaluated for impairment — — — 500 — — 500 Loans acquired with deteriorated credit quality — — — — — — — Balances, December 31, 2016 $ 2,655 $ 1,013 $ 1,574 $ 5,618 $ 76 $ 698 $ 11,634 Loans: Collectively evaluated for impairment $ 301,012 $ 97,015 $ 94,491 $ 377,311 $ 5,974 $ 56,796 $ 932,599 Individually evaluated for impairment 1,310 — — 2,309 — — 3,619 Loans acquired with deteriorated credit quality — — — — — — — Balances, December 31, 2016 $ 302,322 $ 97,015 $ 94,491 $ 379,620 $ 5,974 $ 56,796 $ 936,218 The following table presents the allocation of the ALLL for each respective loan category with the corresponding percentage of loans in each category to total loans, net of deferred fees as of December 31, 2016 and 2015 (dollars in thousands): December 31, 2016 December 31, 2015 Amount Percent of total loans, net of deferred fees Amount Percent of total loans, net of deferred fees Commercial real estate $ 2,655 0.28 % $ 2,879 0.36 % Consumer real estate 1,013 0.11 968 0.12 Construction and land development 1,574 0.17 914 0.11 Commercial and industrial 5,618 0.60 4,693 0.58 Consumer 76 0.01 103 0.01 Other 698 0.07 575 0.07 Total allowance for loan and lease losses $ 11,634 1.24 % $ 10,132 1.25 % The following table presents information related to impaired loans as of and for the years ended December 31, 2016 and 2015 (in thousands): Year Ended December 31, 2016 December 31, 2016 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized With no related allowance recorded: Commercial real estate $ 1,310 $ 1,686 $ — $ 655 $ — Consumer real estate — — — 302 — Construction and land development — — — — — Commercial and industrial — — — — — Consumer — — — 63 — Other — — — — — Subtotal 1,310 1,686 — 1,020 — With an allowance recorded: Commercial real estate — — — 974 — Consumer real estate — — — — — Construction and land development — — — — — Commercial and industrial 2,309 2,921 500 1,155 44 Consumer — — — — — Other — — — — — Subtotal 2,309 2,921 500 2,129 44 Total $ 3,619 $ 4,607 $ 500 $ 3,148 $ 44 Year End December 31, 2015 December 31, 2015 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized With no related allowance recorded: Commercial real estate $ — $ — $ — $ 42 $ — Consumer real estate 604 681 — 357 — Construction and land development — — — — — Commercial and industrial — — — 594 — Consumer 125 125 — 63 5 Other — — — — — Subtotal 729 806 — 1,056 5 With an allowance recorded: Commercial real estate 1,948 1,948 565 2,015 — Consumer real estate — — — 262 — Construction and land development — — — 568 — Commercial and industrial — — — 1,309 — Consumer — — — — — Other — — — — — Subtotal 1,948 1,948 565 4,154 — Total $ 2,677 $ 2,754 $ 565 $ 5,210 $ 5 The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. For purposes of this disclosure, the unpaid principal balance is not reduced for partial charge-offs. Non-accrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. Impaired loans include commercial loans that are individually evaluated for impairment and deemed impaired (i.e., individually classified impaired loans) as well as TDRs for all loan classifications. The following table presents the aging of the recorded investment in past-due loans as of December 31, 2016 and 2015 by class of loans (in thousands): 30 - 59 60 - 89 Greater Than Days Days 89 Days Total Loans Not December 31, 2016 Past Due Past Due Past Due Past Due Past Due Total Commercial real estate $ — $ — $ — $ — $ 302,322 $ 302,322 Consumer real estate 81 282 — 363 96,652 97,015 Construction and land development — — — — 94,491 94,491 Commercial and industrial — — — — 379,620 379,620 Consumer — — — — 5,974 5,974 Other — — — — 56,796 56,796 Total $ 81 $ 282 $ — $ 363 $ 935,855 $ 936,218 December 31, 2015 Commercial real estate $ — $ — $ 1,948 $ 1,948 $ 249,249 $ 251,197 Consumer real estate 100 54 616 770 93,015 93,785 Construction and land development — — — — 52,522 52,522 Commercial and industrial — — — — 353,442 353,442 Consumer — — 125 125 8,543 8,668 Other — — — — 50,197 50,197 Total $ 100 $ 54 $ 2,689 $ 2,843 $ 806,968 $ 809,811 The Company had no loans past due 90 days or more that were not on nonaccrual status as of December 31, 2016 and 2015. The following table presents the recorded investment in non-accrual loans and troubled debt restructurings (TDR) by class of loans as of December 31, 2016 and 2015 (in thousands): Non-Accrual Troubled Debt Restructurings December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Commercial real estate $ 1,310 $ 1,948 $ 1,272 $ — Consumer real estate — 616 — — Construction and land development — — — — Commercial and industrial 2,309 — — — Consumer — 125 — 125 Other — — — — Total $ 3,619 $ 2,689 $ 1,272 $ 125 As of December 31, 2016 and 2015, all loans classified as nonperforming were deemed to be impaired. As of December 31, 2016 and 2015, the Company had recorded investments in TDR of $1.3 million and $0.1 million, respectively. The Company did not allocate a specific allowance for those loans at December 31, 2016 or 2015 and there were no commitments to lend additional amounts. Loans accounted for as TDR include modifications from original terms such as those due to bankruptcy proceedings, certain modifications of amortization periods or extended suspension of principal payments due to customer financial difficulties. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s loan policy. Loans accounted for as TDR are individually evaluated for impairment. The following table presents loans by class modified as TDR that occurred during the year ended December 31, 2016 and 2015 (in thousands). Year Ended December 31, Number of contracts Pre modification outstanding recorded investment Post modification outstanding recorded investment, net of related allowance 2016 Commercial real estate 1 $ 1,948 $ 1,170 Consumer real estate — — — Construction and land development — — — Commercial and industrial — — — Consumer — — — Other — — — Total 1 $ 1,948 $ 1,170 2015 Commercial real estate — $ — $ — Consumer real estate — — — Construction and land development — — — Commercial and industrial — — — Consumer 1 125 125 Other — — — Total 1 $ 125 $ 125 The following table presents loans by class modified as TDR for which there was a payment default within twelve months following the modification during the year ended December 31, 2016 and 2015 (in thousands). Year Ended December 31, Number of contracts Recorded investment 2016 Commercial real estate — $ — Consumer real estate — — Construction and land development — — Commercial and industrial — — Consumer 1 124 Other — — Total 1 $ 124 2015 Commercial real estate — $ — Consumer real estate — — Construction and land development — — Commercial and industrial 1 — Consumer — — Other — — Total 1 $ — The consumer loan TDR that subsequently defaulted during the year ended December 31, 2016 had no specific reserve in the ALLL and resulted in a $0.1 million charge-off. The commercial and industrial loan TDR that subsequently defaulted during the year ended December 31, 2015 had a $2.4 million specific reserve in the ALLL and resulted in a $2.5 million charge-off. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. Purchased Credit Impaired Loans At December 31, 2016 and 2015, the Company had no purchased loans, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. Accretable yield, or income expected to be collected, was as follows for the years ended December 31 (in thousands): 2016 2015 2014 Balance at January 1 $ — $ (190 ) $ (297 ) New loans purchased — — — Accretion of income — 499 255 Reclassifications from nonaccretable difference — (309 ) (148 ) Disposals — — — Balance at December 31 $ — $ — $ (190 ) Purchased impaired loans had no impact on the ALLL for the year ended December 31, 2016. For those purchased impaired loans disclosed above, the Company reduced the allowance for loan and lease losses by $173,000 during the year ended December 31, 2015. Leases The Company has entered into various direct finance leases. The leases are reported as part of other loans. The lease terms vary from two to six years. The components of the direct financing leases as of December 31, 2016 and 2015 were as follows (in thousands): December 31, 2016 December 31, 2015 Total minimum lease payments receivable $ 2,567 $ 5,215 Less: Unearned income (96 ) (321 ) Net leases $ 2,471 $ 4,894 The future minimum lease payments receivable under the direct financing leases as of December 31, 2016 were as follows (in thousands): Year ending December 31: 2017 $ 1,877 2018 332 2019 303 2020 55 2021 — $ 2,567 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | NOTE 5 – PREMISES AND EQUIPMENT Premises and equipment at December 31, 2016 and 2015 are summarized as follows (in thousands): Range of useful lives December 31, 2016 December 31, 2015 Land Not applicable $ 1,180 $ 1,180 Buildings 39 years 3,586 3,586 Leasehold improvements 2 to 10 years 1,171 1,174 Furniture and equipment 3 to 7 years 2,055 2,332 Leasehold improvements in process Not applicable 774 — 8,766 8,272 Less accumulated depreciation and amortization (3,416 ) (3,376 ) $ 5,350 $ 4,896 Depreciation and amortization expense for the years ended December 31, 2016, 2015 and 2014 totaled $422,000, $506,000 and $625,000, respectively. The Company leases certain properties under noncancelable lease arrangements. The leases have various terms, and maturity dates, including extensions through 2028. The leases have various other terms including payments for common area maintenance, escalation increases over the term of the lease and various renewal options. Rent expense related to these leases for 2016, 2015 and 2014 totaled $1,016,000, $1,018,000 and $994,000 respectively. Future minimum payments under these operating leases as of December 31, 2016 are as follows (in thousands): Year ending December 31: 2017 $ 868 2018 1,179 2019 950 2020 951 2021 968 Thereafter 10,542 $ 15,458 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | NOTE 6 – GOODWILL AND INTANGIBLE ASSETS Goodwill The change in goodwill during the years ended December 31, 2016 and 2015, respectively, was as follows (in thousands): 2016 2015 Beginning of year $ 6,219 $ 6,219 Acquired goodwill — — Impairment — — End of year $ 6,219 $ 6,219 Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At October 31, 2016, the Company’s reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. Acquired Intangible Assets Acquired intangible assets at December 31, 2016 and 2015 were as follows (in thousands): December 31, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Core deposit intangibles $ 287 $ (216 ) $ 287 $ (162 ) Aggregate amortization expense was $54,000 for 2016, 2015 and 2014. Estimated amortization expense for each of the next five years is as follows (in thousands): Year ending December 31: 2017 $ 48 2018 23 2019 — 2020 — 2021 — |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2016 | |
Other Real Estate [Abstract] | |
Other Real Estate Owned | NOTE 7 – OTHER REAL ESTATE OWNED Other real estate owned activity was as follows (in thousands): 2016 2015 Beginning balance $ 216 $ 575 Loans transferred to other real estate owned — — Direct write-downs — — Sales of other real estate owned (216 ) (359 ) End of year $ — $ 216 Other real estate owned is presented net of the valuation allowance which is allocated to the specific properties held. Activity in the valuation allowance was as follows during the years ended December 31, 2016 and 2015, respectively (in thousands): 2016 2015 Beginning balance $ 450 $ 450 Additions/(recoveries) charged/(credited) to expense — — Reductions from sales of other real estate owned (450 ) — Direct write-downs — — End of year $ — $ 450 Expenses related to other real estate owned during the years ended December 31, 2016 and 2015, respectively include (in thousands): 2016 2015 Net (gain) loss on sales $ (157 ) $ 4 Provision for unrealized losses — — Operating expenses, net of rental income 14 30 Total $ (143 ) $ 34 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Deposits | NOTE 8 – DEPOSITS Time deposits that meet or exceed the FDIC deposit insurance limit of $250,000 at December 31, 2016 and 2015 were $51,070,000 and $84,248,000, respectively. Scheduled maturities of time deposits for the next five years and thereafter are as follows (in thousands): Maturity: 2017 $ 125,309 2018 29,542 2019 17,771 2020 7,926 2021 3,057 Thereafter 23 $ 183,628 At December 31, 2016 and 2015, the Company had $41,000 and $216,000, respectively of deposit accounts in overdraft status that were reclassified to loans in the accompanying balance sheets. |
Securities Sold Under Repurchas
Securities Sold Under Repurchase Agreements | 12 Months Ended |
Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Securities Sold Under Repurchase Agreements | NOTE 9 – SECURITIES SOLD UNDER REPURCHASE AGREEMENTS Securities sold under repurchase agreements are secured by securities with a carrying amount of $3,724,000 at December 31, 2015. There were no securities sold under repurchase agreements at December 31, 2016. Securities sold under repurchase agreements are financing arrangements that mature at various dates. At maturity, the securities underlying the agreements are returned to the Company. The underlying securities are typically held by other financial institutions and are designated as pledged. Information concerning securities sold under repurchase agreements is summarized as follows (in thousands): 2016 2015 Average daily balance during the year $ 526 $ 6,489 Average interest rate during the year 0.15 % 0.23 % Maximum month-end balance during the year $ 3,316 $ 15,862 Weighted average interest rate at year-end — 0.25 % |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 12 Months Ended |
Dec. 31, 2016 | |
Federal Home Loan Banks [Abstract] | |
Federal Home Loan Bank Advances | NOTE 10 – FEDERAL HOME LOAN BANK ADVANCES The Company had outstanding borrowings totaling of $55,000,000 and $45,000,000 million at December 31, 2016 and 2015, respectively, via two separate advances. These advances are non-callable; interest payments are due monthly, with principal due at maturity. The following is a summary of the contractual maturities and average effective rates of outstanding advances (dollars in thousands): December 31, 2016 December 31, 2015 Year Amount Interest Rates Amount Interest Rates 2016 $ — — $ 45,000 0.57 % 2017 55,000 0.80 % — — 2018 — — — — 2019 — — — — 2020 — — — — 2021 — — — — Thereafter — — — — Total $ 55,000 0.80 % $ 45,000 0.57 % Advances from the FHLB are collateralized by investment securities, FHLB stock and certain commercial and residential real estate mortgage loans totaling $211.5 million under a blanket mortgage collateral agreement. At December 31, 2016, the amount of available credit from the FHLB totaled $122.1 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | NOTE 11 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following were changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ending December 31, 2016 and 2015 (in thousands): Unrealized Gains Unrealized Gains and and Losses Losses on Losses on on Available Securities Cash Flow for Sale Transferred to Year Ended December 31, 2015 Hedges Securities Held to Maturity Total Beginning Balance $ (2,139 ) $ 723 $ (1,418 ) $ (2,834 ) Other comprehensive income (loss) before reclassification (1,542 ) (652 ) 206 (1,988 ) Amounts reclassified from accumulated other comprehensive income (23 ) 34 (103 ) (92 ) Net current period other comprehensive income (loss) (1,565 ) (618 ) 103 (2,080 ) Ending Balance $ (3,704 ) $ 105 $ (1,315 ) $ (4,914 ) Year Ended December 31, 2016 Beginning Balance $ (3,704 ) $ 105 $ (1,315 ) $ (4,914 ) Other comprehensive income (loss) before reclassification (279 ) (878 ) 206 (951 ) Amounts reclassified from accumulated other comprehensive income (257 ) 75 (103 ) (285 ) Net current period other comprehensive income (loss) (536 ) (803 ) 103 (1,236 ) Ending Balance $ (4,240 ) $ (698 ) $ (1,212 ) $ (6,150 ) The following were significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the year ending December 31, 2016 (in thousands): Amount Reclassified from Affected Line Item Details about Accumulated Other Accumulated Other in the Statement Where Comprehensive Income Components Comprehensive Income Net Income is Presented Unrealized losses on cash flow hedges $ (151 ) Interest expense - money market (265 ) Interest expense - Federal Home Loan Bank advances 159 Income tax (expense) benefit $ (257 ) Net of tax Unrealized gains and losses on available for sale securities $ 121 Net gain on sale of securities (46 ) Income tax (expense) benefit $ 75 Net of tax Unrealized losses on securities transferred to held to maturity $ (167 ) Interest income - securities 64 Income tax (expense) benefit $ (103 ) Net of tax The following were significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the year ending December 31, 2015 (in thousands): Amount Reclassified from Affected Line Item Details about Accumulated Other Accumulated Other in the Statement Comprehensive Income Components Comprehensive Income Net Income is Presented Unrealized losses on cash flow hedges $ (37 ) Interest expense - money market 14 Income tax (expense) benefit $ (23 ) Net of tax Unrealized gains and losses on available for sale securities $ 55 Net gain on sale of securities (21 ) Income tax (expense) benefit $ 34 Net of tax Unrealized losses on securities transferred to held to maturity $ (167 ) Interest income - securities 64 Income tax (expense) benefit $ (103 ) Net of tax |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12 – INCOME TAXES The components of income tax expense are summarized as follows (in thousands): 2016 2015 2014 Current: Federal $ 4,029 $ 2,794 $ 1,630 State 759 168 333 4,788 2,962 1,963 Deferred: Federal (395 ) 314 373 State 100 194 76 (295 ) 508 449 Total $ 4,493 $ 3,470 $ 2,412 A reconciliation of actual income tax expense in the financial statements to the “expected” tax expense (computed by applying the statutory federal income tax rate of 34% to income before income taxes) for the years ended December 31, 2016, 2015 and 2014 is as follows (in thousands): 2016 2015 2014 Computed "expected" tax expense $ 4,621 $ 3,750 $ 2,517 State income taxes, net of effect of federal income taxes 567 239 270 Tax-exempt interest income (394 ) (367 ) (311 ) Earnings on bank owned life insurance contracts (204 ) (213 ) (223 ) Disallowed expenses 60 71 62 Expiration of capital loss carryforward — — 98 Other (157 ) (10 ) (1 ) Total $ 4,493 $ 3,470 $ 2,412 Significant items that gave rise to deferred taxes at December 31, 2016 and 2015 were as follows (in thousands): December 31, 2016 December 31, 2015 Deferred tax assets: Allowance for loan and lease losses $ 4,320 $ 3,787 Depreciation 326 341 Net operating loss carryforward 1,548 1,705 Organization and preopening costs 987 1,142 Stock-based compensation 1,071 941 Acquired loans 224 401 Acquired deposits 60 109 Nonaccrual interest 39 60 Write-downs of other real estate — 171 Accrued incentive compensation 688 694 Reserve for contingencies 1,061 462 Accrued contributions 197 140 Unrealized loss on securities available for sale 1,493 995 Unrealized loss on securities held to maturity 752 816 Cash flow hedge 588 1,209 Accrued vacation 54 53 Other 51 74 Deferred tax assets 13,459 13,100 Deferred tax liabilities: Prepaid expenses 133 — Goodwill 343 204 Amortization of core deposit intangible 27 47 Deferred tax liabilities 503 251 Net deferred tax asset $ 12,956 $ 12,849 At December 31, 2016, the Company had federal net operating loss carryforwards of approximately $4,513,000, which expire at various dates from 2029 to 2032. Deferred tax assets are fully recognized because the benefits are more likely than not to be realized based on management’s estimation of future taxable earnings. There are no significant unrecognized income tax benefits as of December 31, 2016 and 2015. As of December 31, 2016 and 2015, the Company has no accrued interest or penalties related to uncertain tax positions. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 13 – COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company has outstanding commitments and contingent liabilities, such as commitments to extend credit and standby letters of credit, which are not included in the accompanying financial statements. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments. The Company uses the same credit policies in making such commitments as it does for instruments that are included in the balance sheet. The following table sets forth outstanding financial instruments whose contract amounts represent credit risk as of December 31, 2016 and 2015 (in thousands): Contract or notional amount December 31, 2016 December 31, 2015 Financial instruments whose contract amounts represent credit risk: Unused commitments to extend credit $ 508,990 $ 384,837 Standby letters of credit 10,886 13,450 Total $ 519,876 $ 398,287 The Company is party to litigation and claims arising in the normal course of business. Management believes that the liabilities, if any, arising from such litigation and claims as of December 31, 2016, will not have a material impact on the financial statements of the Company. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2016 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk | NOTE 14 – CONCENTRATION OF CREDIT RISK Substantially all of the Company’s loans, commitments, and standby letters of credit have been granted to customers in the Company’s market area. The concentrations of credit by type of loan are set forth in Note 4 to the financial statements. At December 31, 2016 and 2015, the Company’s cash and due from banks, federal funds sold and interest-bearing deposits in financial institutions aggregated $25,000,000 and $14,000,000, respectively, in excess of insured limits. |
Regulatory Matters And Restrict
Regulatory Matters And Restrictions On Dividends | 12 Months Ended |
Dec. 31, 2016 | |
Banking And Thrift [Abstract] | |
Regulatory Matters And Restrictions On Dividends | NOTE 15 – REGULATORY MATTERS AND RESTRICTIONS ON DIVIDENDS The Company and the Bank are subject to regulatory capital requirements administered by the Federal Reserve and the Bank is also subject to the regulatory capital requirements of the Tennessee Department of Financial Institutions. Failure to meet capital requirements can initiate certain mandatory – and possibly additional discretionary – actions by regulators that could, in that event, have a material adverse effect on the institutions’ financial statements. The relevant regulations require the Company and the Bank to meet specific capital adequacy guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting principles. The capital classifications of the Company and the Bank are also subject to qualitative judgments by their regulators about components, risk weightings, and other factors. Those qualitative judgments could also affect the capital status of the Company and the Bank and the amount of dividends the Company and the Bank may distribute. The final rules implementing the Basel Committee on Companying Supervision’s capital guidelines for U.S. Banks (Basel III rules) became effective for the Company on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of December 31, 2016, the Company and the Bank met all regulatory capital adequacy requirements to which they are subject. The Federal Deposit Insurance Corporation Improvement Act of 1991 establishes a system of “prompt corrective action” to resolve the problems of undercapitalized insured depository institutions. Under this system, federal banking regulators have established five capital categories: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. Federal banking regulators are required to take various mandatory supervisory actions and are authorized to take other discretionary actions with respect to institutions in the three undercapitalized categories. The severity of the action depends upon the capital category in which the institution is placed. For example, institutions in all three undercapitalized categories are automatically restricted from paying distributions and management fees, whereas only an institution that is significantly undercapitalized or critically undercapitalized is restricted in its compensation paid to senior executive officers. Generally, subject to a narrow exception, the banking regulator must appoint a receiver or conservator for an institution that is critically undercapitalized. At December 31, 2016 and 2015, the Company and the Bank were well capitalized under the regulatory framework for prompt corrective action. There have been no conditions or events since that notification that management believes have changed the Company’s or the Bank’s category. The Company’s and the Bank’s capital amounts and ratios are presented in the following table (in thousands). Only the Bank’s capital amounts and ratios are presented as of December 31, 2015 because the share exchange had not yet occurred. Actual Minimum capital requirement (1) Minimum to be well-capitalized (2) Amount Ratio Amount Ratio Amount Ratio At December 31, 2016: Total capital to risk-weighted assets: CapStar Financial Holdings, Inc. $ 149,616 12.6 % $ 95,028 8.0 % $ N/A N/A CapStar Bank 126,718 10.7 95,028 8.0 118,785 10.0 Tier I capital to risk-weighted assets: CapStar Financial Holdings, Inc. 137,909 11.6 71,271 6.0 N/A N/A CapStar Bank 115,011 9.7 71,271 6.0 95,028 8.0 Common equity Tier 1 capital to risk weighted assets: CapStar Financial Holdings, Inc. 129,528 10.9 53,453 4.5 N/A N/A CapStar Bank 99,130 8.3 53,453 4.5 77,210 6.5 Tier I capital to average assets: CapStar Financial Holdings, Inc. 137,909 10.5 52,727 4.0 N/A N/A CapStar Bank 115,011 8.7 52,727 4.0 65,909 5.0 At December 31, 2015: Total capital to risk-weighted assets $ 116,047 11.4 % $ 81,224 8.0 % $ 101,530 10.0 % Tier I capital to risk-weighted assets 105,749 10.4 60,918 6.0 81,224 8.0 Common equity tier 1 capital 90,272 8.9 45,688 4.5 65,994 6.5 Tier I capital to average assets 105,749 9.3 45,328 4.0 56,660 5.0 Under Tennessee banking law, the Bank is subject to restrictions on the payment of dividends. Banking regulations limit the amount of dividends that may be paid without prior approval of the Tennessee Department of Financial Institutions. Under these regulations, the amount of dividends that may be paid in any calendar year without prior approval of the Tennessee Department of Financial Institutions is limited to the current year’s net income, combined with the retained net income of the preceding two years, subject to the capital requirements described above. The Bank’s payment of dividends may also be affected or limited by other factors, such as the requirement to maintain adequate capital above regulatory guidelines. The federal banking agencies have indicated that paying dividends that deplete a depository institution’s capital base to an inadequate level would be an unsafe and unsound banking practice. Under the Federal Deposit Insurance Corporation Improvement Act of 1991, a depository institution may not pay any dividends if payment would cause it to become undercapitalized or if it already is undercapitalized. Moreover, the federal agencies have issued policy statements that provide that Company holding companies and insured banks should generally only pay dividends out of current operating earnings. Based on these regulations, the Bank was eligible to pay $22.1 million and $19.0 million of dividends as of December 31, 2016 and 2015, respectively. The Bank paid the Company $1.5 million of dividends during 2016. No dividend payments were made by the Company during 2016 or 2015. |
Nonvoting and Series A Preferre
Nonvoting and Series A Preferred Stock and Stock Warrants | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Nonvoting and Series A Preferred Stock and Stock Warrants | NOTE 16 – NONVOTING AND SERIES A PREFERRED STOCK AND STOCK WARRANTS Nonvoting Common Stock The Company has authorized 5,000,000 shares of its common stock as nonvoting common stock. The nonvoting common stock has the same rights and privileges as the common stock other than the nonvoting designation. Under certain conditions, as outlined in the Company’s charter, the nonvoting stock may be converted, on a one-to-one basis, to common stock. In conjunction with the Company’s initial public offering, 79,166 shares of nonvoting common stock was issued and simultaneously converted to common stock on a one-to-one basis as further described under “Warrants” below. Preferred Stock In conjunction with its initial capital issuance in 2008, the Bank issued 1,609,756 shares of Series A Preferred Stock to certain shareholders. During 2016, coinciding with the Company’s initial public offering, 731,707 preferred shares were converted to common shares. The Series A Preferred Stock contains a liquidation preference and certain antidilution provisions. Holders of Series A Preferred Stock also have certain consent rights with respect to changes to the Company’s charter or bylaws that would materially adversely affect the preferences, rights and powers of such stock and the right to receive certain financial reports. The Series A Preferred Stock is noncumulative, perpetual and, except as otherwise provided below or pursuant to Tennessee law, nonvoting. Holders of Series A Preferred Stock participate equally in dividends paid on the common stock on an as converted basis. In addition, the Series A Preferred Stock is convertible to nonvoting common stock upon the occurrence of certain underwritten public offerings and certain transfers or proposed transfers by the Company’s organizing shareholders. Warrants In conjunction with the issuance of the 1,609,756 shares of the Series A Preferred Stock, the holders of such stock were issued 500,000 warrants to purchase shares of the Company’s nonvoting common stock at a purchase price of $10.25 per share. The warrants are exercisable at any time and expire ten years from the date of grant of July 14, 2008. As of December 31, 2016, 250,000 warrants have been exercised on a cashless basis, resulting in the issuance of 79,166 shares of nonvoting common stock that was simultaneously converted to common stock on a one-to-one basis. As of December 31, 2016, 250,000 of these warrants remain outstanding. As part of the initial capital issuance in 2008, each organizer of the Company (“Organizers”) who became a director of the Company received a warrant to purchase, at the purchase price of $10.00 per share, 10,000 shares of the Company’s common stock. These warrants were issued in compliance with the FDIC’s policy on noncash compensation in recognition of the Organizers considerable contribution of time, expertise, and capital. The Company issued warrants to purchase 60,000 shares of common stock to these organizers. The warrants expire ten years from date of grant of July 14, 2008. As of December 31, 2016, no warrants have been exercised and 60,000 warrants remain outstanding. In addition, each subscriber for shares who is a Tennessee resident or any entity controlled by a Tennessee resident and invested a minimum of $500,000 in the offering, received a warrant to purchase additional shares of common stock equal to 5% of accepted subscriptions at the purchase price of $10.00 per share. The Company issued warrants to purchase 238,319 shares of common stock to these subscribers. The warrants expire ten years from date of grant of July 14, 2008. As of December 31, 2016, 26,500 of these warrants have been exercised and 211,819 warrants remain outstanding. |
Shareholders' Agreement
Shareholders' Agreement | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Shareholders’ Agreement | NOTE 17 – SHAREHOLDERS’ AGREEMENT In June 2008, the Company entered into a shareholders’ agreement (the Shareholders’ Agreement) with certain investors (the Investors). Among other things, the Shareholders’ Agreement permits the Investors to nominate an individual for election to the board of directors and certain tag-along rights. |
Stock Options and Restricted Sh
Stock Options and Restricted Shares | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Options and Restricted Shares | NOTE 18 – STOCK OPTIONS AND RESTRICTED SHARES During 2008, the board of directors of the Company approved the CapStar Bank 2008 Stock Incentive Plan. Following the formation of CapStar Financial Holdings, Inc. in 2016, and in connection with the Share Exchange, the outstanding awards of restricted stock and stock options under the CapStar Bank 2008 Stock Incentive Plan were exchanged for similar awards of restricted stock and stock options issued by CapStar Financial Holdings, Inc. under the Stock Incentive Plan (the “Plan”), which the board of directors adopted in 2016. The Plan provides for the grant of stock-based incentives, including stock options, restricted stock units, performance awards and restricted stock, to employees, directors and service providers that are subject to forfeiture until vesting conditions have been satisfied by the award recipient under the terms of the award. The Plan is intended to help align the interests of employees and our shareholders and reward our employees for improved Company performance. The Plan reserved 1,569,475 shares of stock for issuance of stock incentives. Stock incentives include both restricted stock and stock option grants. Total shares issuable under the plan are 205,724 at December 31, 2016. The Company has recognized stock-based compensation expense, within salaries and employee benefits for employees, and within other non-interest expense for directors, in the consolidated statements of income as follows (in thousands): For the year ended December 31, 2016 2015 2014 Stock-based compensation expense before income taxes $ 842 $ 438 $ 261 Less: deferred tax benefit (279 ) (138 ) (85 ) Reduction of net income $ 563 $ 300 $ 176 Restricted Shares Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at the issue date. The recipients have the right to vote and receive dividends but cannot sell, transfer, assign, pledge, hypothecate, or otherwise encumber the restricted stock until the shares have vested. Restricted shares fully vest on the third anniversary of the grant date. A summary of the changes in the Company’s nonvested restricted shares for 2016 follows: Weighted Average Restricted Grant Date Nonvested Shares Shares Fair Value Nonvested at beginning of period 138,453 $ 11.16 Granted 126,851 12.86 Vested (40,596 ) 10.34 Forfeited (25,067 ) 11.68 Nonvested at end of period 199,641 $ 12.34 As of December 31, 2016, there was $1,515,000 of total unrecognized compensation cost related to nonvested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 2.0 years. The total fair value of shares vested during the years ended December 31, 2016 and 2015 was $513,000 and $184,000. Stock Options Option awards are generally granted with an exercise price equal to the fair value of the Company’s common stock at the date of grant. Option awards generally have a three year vesting period and a ten year contractual term. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the table below. Expected volatility is based on calculations performed by management using industry data. The Company’s expected dividend yield is 0.00% because the Company has not intended, and does not intend, to pay dividends for the foreseeable future. The expected term of options granted was calculated using the “simplified” method for plain vanilla options as permitted under authoritative literature. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The fair value of options granted was determined using the following weighted average assumptions as of the grant date: 2016 2015 Dividend yield — — Expected term (in years) 7.48 7.29 Expected stock price volatility 17.20 % 21.26 % Risk-free interest rate 1.66 % 1.86 % Pre-vest forfeiture rate 10.25 % 10.33 % A summary of the activity in stock options for 2016 follows: Weighted Weighted Average Average Remaining Exercise Contractual Shares Price Term (years) Outstanding at beginning of period 1,018,500 $ 10.42 Granted 32,500 13.22 Exercised (8,125 ) 11.85 Forfeited or expired (36,875 ) 11.05 Outstanding at end of period 1,006,000 $ 10.48 3.1 Fully vested and expected to vest 996,803 $ 10.46 3.1 Exercisable at end of period 929,750 $ 10.35 2.7 Information related to stock options during 2016 and 2015 follows: 2016 2015 Intrinsic value of options exercised $ 53,756 $ 1,410 Cash received from option exercises 96,306 10,000 Tax benefit realized from option exercises 20,583 900 Weighted average fair value of options granted 3.16 3.20 As of December 31, 2016, there was $139,000 of total unrecognized compensation cost related to nonvested stock options granted under the Plan. The cost is expected to be recognized over a weighted-average period of 2.5 years. |
Employment Contracts
Employment Contracts | 12 Months Ended |
Dec. 31, 2016 | |
Employment Contracts Disclosure [Abstract] | |
Employment Contracts | NOTE 19 – EMPLOYMENT CONTRACTS The Company has entered into employment contracts with certain senior executives with various expiration dates. Each of the contracts has an option for annual renewal by mutual agreement. The agreements specify that in certain terminating events the Company will be obligated to provide certain benefits and pay each of the senior executives severance based on their annual salaries and bonuses. These terminating events include termination of employment without “Cause” (as defined in the agreements) or in certain other circumstances specified in the agreements. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE 20 – EMPLOYEE BENEFIT PLANS The Company has a Retirement Savings 401(k) Plan in which employees may participate. The Company has elected a safe harbor 401(k) plan and as such is required to make an annual contribution of 3% of the employees’ salaries annually. An employee does not have to contribute to receive the employer contribution. In addition, the Company may make an additional discretionary contribution up to 6% of the employees’ salaries annually. For the years ended December 31, 2016, 2015 and 2014, the Company contributed $536,000, $469,000 and $426,000, respectively, to the 401(k) Plan. The Company also has a Health Reimbursement Plan in place to offset the cost of healthcare deductibles for employees. At the end of the year, up to one-half of the unused balance in the employee’s account will be available for the following year up to a maximum of the deductible for that employee. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | NOTE 21 – DERIVATIVE INSTRUMENTS The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Interest Rate Swaps Designated as Cash Flow Hedges Forward starting interest rate swaps with notional amounts totaling $20 million and $35 million as of December 31, 2016 and 2015, respectively, were designated as cash flow hedges of certain liabilities and were determined to be fully effective during all periods presented. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swaps is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining terms of the swaps. Summary information about the interest-rate swaps designated as cash flow hedges was as follows (dollars in thousands): December 31, 2016 December 31, 2015 Notional amounts $ 20,000 $ 35,000 Weighted average pay rates 3.54 % 3.67 % Weighted average receive rates 3 month 3 month LIBOR Weighted average maturity 6.5 years 7.4 years Fair value $ (1,535 ) $ (3,158 ) Amount of unrealized loss recognized in accumulated other comprehensive income, net of tax $ (947 ) $ (1,949 ) Cash flows have not begun on these forward starting interest rate swaps and therefore, no interest income (expense) was recorded on these swap transactions during 2016 and 2015. Cash flows begin June 2017. Pursuant to its interest rate swap agreements, the Company pledged collateral to the counterparties in the form of investment securities with a carrying value of $2,391,000 at December 31, 2016. There was no collateral posted from the counterparties to the Company as of December 31, 2016. It is possible that the Company may need to post additional collateral in the future or that the counterparties may be required to post collateral to the Company in the future. Other Interest Rate Swaps The Company also enters into swaps to facilitate customer transactions and meet their financing needs. Upon entering into these transactions the Company enters into offsetting positions with large U.S. financial institutions in order to minimize risk to the Company. A summary of the Company’s customer related interest rate swaps is as follows (in thousands): December 31, 2016 December 31, 2015 Notional Estimated Notional Estimated amount fair value amount fair value Interest rate swap agreements: Pay fixed/receive variable swaps $ 41,254 $ 460 $ 45,675 $ (726 ) Pay variable/receive fixed swaps 41,254 (460 ) 45,675 726 Total $ 82,508 $ — $ 91,350 $ — |
Related Party
Related Party | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party | NOTE 22 – RELATED PARTY The Company may enter into loan transactions with certain directors, executive officers, significant shareholders, and their affiliates. Such transactions were made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the same time for comparable transactions with persons not affiliated with the Company, and did not, in the opinion of management, involve more than normal credit risk or present other unfavorable features. None of these loans were impaired at December 31, 2016 or 2015. Activity within these loans during the year ended December 31, 2016 was as follows (in thousands): Total commitment Total funded commitment Balance December 31, 2015 $ 27,501 $ 17,770 New commitments/draw downs 4,805 4,692 Repayments (1,230 ) (2,137 ) Balance December 31, 2016 $ 31,076 $ 20,325 Deposits from directors, executive officers, significant shareholders and their affiliates at December 31, 2016 and 2015 were $8.8 million and $12.7 million, respectively. One director provided consulting services to the Company. The Company incurred $30,000 of expense in 2016 related to these services. In addition, the Company also paid approximately $95,000 to a shareholder of the Company for the lease of one of the Bank’s branches. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 23 – FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Investment Securities Derivatives-Interest Rate Swaps Impaired Loans Other Real Estate Owned Loans Held For Sale Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair value measurements at December 31, 2016 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (Level 1) (Level 2) (Level 3) Assets: Securities available for sale: U.S. government-sponsored agencies $ 9,374 $ — $ 9,374 $ — Obligations of states and political subdivisions 27,913 — 27,913 — Mortage-backed securities-residential 124,595 — 124,595 — Asset-backed securities 20,473 — 20,473 — Total securities available for sale $ 182,355 $ — $ 182,355 $ — Derivatives: Interest rate swaps - customer related $ 460 $ — $ 460 $ — Liabilities: Derivatives: Interest rate swaps - customer related $ (460 ) $ — $ (460 ) $ — Interest rate swaps - cash flow hedges (1,535 ) — (1,535 ) — Total derivatives $ (1,994 ) $ — $ (1,994 ) $ — Fair value measurements at December 31, 2015 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (Level 1) (Level 2) (Level 3) Assets: Securities available for sale: U.S. government-sponsored agencies $ 19,542 $ — $ 19,542 $ — Obligations of states and political subdivisions 13,868 — 13,868 — Mortage-backed securities-residential 118,380 — 118,380 — Asset-backed securities 21,593 3,526 18,067 — Total securities available for sale $ 173,383 $ 3,526 $ 169,857 $ — Derivatives: Interest rate swaps - customer related $ 726 $ — $ 726 $ — Liabilities: Derivatives: Interest rate swaps - customer related $ (726 ) $ — $ (726 ) $ — Interest rate swaps - cash flow hedges (3,158 ) — (3,158 ) — Total derivatives $ (3,884 ) $ — $ (3,884 ) $ — Assets measured at fair value on a nonrecurring basis are summarized below (in thousands): Fair value measurements at December 31, 2016 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (level 1) (level 2) (level 3) Assets: Impaired loans: Commercial and industrial $ 2,309 $ — $ — $ 2,309 Fair value measurements at December 31, 2015 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (level 1) (level 2) (level 3) Assets: Impaired loans: Commercial real estate $ 1,383 $ — $ — $ 1,383 Other real estate owned: Construction and land development 216 — — 216 The following table presents quantitative information about Level 3 fair value measurements for assets measured at fair value on a nonrecurring basis at December 31, 2016 and 2015 (dollars in thousands): Range Fair Valuation Unobservable (Weighted- December 31, 2016 Value Technique(s) Input(s) Average) Impaired loans: Commercial and industrial $ 2,309 Sales comparison approach Appraisal discounts 25 % Range Fair Valuation Unobservable (Weighted- December 31, 2015 Value Technique(s) Input(s) Average) Impaired loans: Commercial real estate $ 1,383 Sales comparison approach Appraisal discounts 20 % Other real estate owned: Construction and land development 216 Sales comparison approach Appraisal discounts 15 % Fair Value of Financial Instruments The carrying value and estimated fair values of the Company’s financial instruments at December 31, 2016 and 2015 were as follows (in thousands): December 31, 2016 December 31, 2015 Carrying Carrying amount Fair value amount Fair value Financial assets: Cash and due from banks, interest-bearing deposits in financial institutions $ 63,456 $ 63,456 $ 93,455 $ 93,455 Federal funds sold 16,654 16,654 6,730 6,730 Securities available for sale 182,355 182,355 173,383 173,383 Securities held to maturity 46,864 49,731 43,094 46,459 Loans held for sale 42,111 42,302 35,729 36,552 Restricted equity securities 6,032 N/A 5,414 N/A Loans, net 935,251 934,628 798,264 806,030 Accrued interest receivable 3,942 3,942 3,030 3,030 Bank owned life insurance 21,900 21,900 21,299 21,299 Other assets 460 460 726 726 Financial liabilities: Deposits 1,128,722 1,088,758 1,038,460 1,035,978 Securities sold under repurchase agreements — — 3,755 3,755 Federal Home Loan Bank advances 55,000 54,989 45,000 44,926 Accrued interest payable 212 212 177 177 Other liabilities 5,349 5,349 6,536 6,536 The methods and assumptions, not previously presented, used to estimate fair values are described as follows: (a) Cash and Due from Banks, Interest-Bearing Deposits in Financial Institutions For these short-term instruments, the carrying amount is a reasonable estimate of fair value. (b) Federal Funds Sold Federal funds sold clear on a daily basis. For this reason, the carrying amount is a reasonable estimate of fair value. (c) Restricted Equity Securities It is not practical to determine the fair value of restricted securities due to restrictions placed on their transferability. (d) Loans, net The fair value of the Company’s loan portfolio includes a credit risk assumption in the determination of the fair value of its loans. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. The Company’s loan portfolio is initially fair valued using a segmented approach. The Company divides its loan portfolio into the following categories: variable rate loans, impaired loans and all other loans. The results are then adjusted to account for credit risk. For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. Fair values for impaired loans are estimated using discounted cash flow models or based on the fair value of the underlying collateral. For other loans, fair values are estimated using discounted cash flow models, using current market interest rates offered for loans with similar terms to borrowers of similar credit quality. The values derived from the discounted cash flow approach for each of the above portfolios are then further discounted to incorporate credit risk. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price. (e) Bank Owned Life Insurance For Bank owned life insurance, the carrying amount is based on the cash surrender value and is a reasonable estimate of fair value. (f) Other Assets Included in other assets are certain interest rate swap agreements and the cash flow hedge relationships. The fair values of interest rate swap agreements and the cash flow hedge relationships are based on independent pricing services that utilize pricing models with observable market inputs. (g) Deposits The fair value of demand deposits, savings accounts and certain money market deposits is the amount payable on demand at the reporting date. The fair value of certificates of deposit is estimated by discounted cash flow models, using current market interest rates offered on certificates with similar remaining maturities. (h) Securities Sold under Repurchase Agreements The securities sold under repurchase agreements are payable upon demand. For this reason, the carrying amount is a reasonable estimate of fair value. (i) Federal Home Loan Bank Advances The fair value of fixed rate Federal Home Loan Bank Advances is estimated using discounted cash flow models, using current market interest rates offered on certificates, advances and other borrowings with similar remaining maturities. (j) Accrued Interest Receivable/Payable The carrying amounts of accrued interest approximate fair value. (k) Other Liabilities Included in other liabilities are certain interest rate swap agreements, the cash flow hedge relationships and contingent consideration. The fair values of interest rate swap agreements and the cash flow hedge relationships are based on independent pricing services that utilize pricing models with observable market inputs. The fair value of contingent consideration is estimated by a discounted cash flow model that utilizes various unobservable inputs. (l) Off-Balance Sheet Instruments Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material. (m) Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on estimating on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For example, fixed assets are not considered financial instruments and their value has not been incorporated into the fair value estimates. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Parent Company Only Financial I
Parent Company Only Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Financial Information | NOTE 24 – PARENT COMPANY ONLY FINANCIAL INFORMATION The following information presents the condensed balance sheet, statement of income, and cash flows of CapStar Financial Holdings, Inc. as of and for the year ended December 31, 2016 (in thousands). CapStar Financial Holdings, Inc. had no activity until the Share Exchange in February 2016, as described in Note 1. Condensed Balance Sheet December 31, 2016 Assets Cash and cash equivalents $ 22,952,354 Investment in consolidated subsidiary 116,309,922 Total assets $ 139,262,276 Liabilities and Shareholders’ Equity Other liabilities $ 54,880 Total shareholders’ equity 139,207,396 Total liabilities and shareholders’ equity $ 139,262,276 Condensed Income Statement Year Ended December 31, 2016 Income - dividends from subsidiary $ 1,500,000 Expenses 741,691 Income before income taxes and equity in undistributed net income of subsidiary 758,309 Income tax benefit (258,528 ) Income before equity in undistributed net income of subsidiary 1,016,837 Equity in undistributed net income of subsidiary 7,366,019 Net income $ 8,382,856 Condensed Statement of Cash Flows Year Ended December 31, 2016 Cash flows from operating activities: Net income $ 8,382,856 Adjustments to reconcile net income to net cash provided by operating activities: Increase in other liabilities 54,880 Excess tax benefit from stock compensation (61,217 ) Equity in undistributed net income of subsidiary (7,366,019 ) Net cash provided by operating activities 1,010,500 Cash flows from financing activities: Issuance of common stock 21,562,716 Exercise of common stock options and warrants, net of repurchase of restricted shares 317,921 Excess tax benefit from stock compensation 61,217 Net cash provided by financing activities 21,941,854 Net increase in cash and cash equivalents 22,952,354 Cash and cash equivalents at beginning of period — Cash and cash equivalents at end of period $ 22,952,354 |
Quarterly Financial Results (Un
Quarterly Financial Results (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Results (Unaudited) | NOTE 25 – QUARTERLY FINANCIAL RESULTS (UNAUDITED) The following is a summary of quarterly financial results (unaudited) for 2016, 2015 and 2014: First Quarter Second Quarter Third Quarter Fourth Quarter 2016 Interest income $ 10,598,178 $ 10,914,739 $ 11,874,605 $ 12,007,234 Interest expense 1,641,903 1,713,584 1,749,090 1,826,961 Net interest income 8,956,275 9,201,155 10,125,515 10,180,273 Provision for loan and lease losses 937,216 182,863 1,638,669 69,884 Net interest income after provision for loan and lease losses 8,019,059 9,018,292 8,486,845 10,110,389 Noninterest income 2,370,772 2,568,192 3,191,463 2,954,021 Noninterest expense 8,009,741 7,950,794 8,526,805 8,641,506 Net income before income tax expense 2,380,090 3,635,690 3,151,504 4,422,904 Income tax expense 796,245 1,159,438 1,042,282 1,495,445 Net income $ 1,583,845 $ 2,476,252 $ 2,109,222 $ 2,927,460 Net income per share, basic $ 0.18 $ 0.29 $ 0.24 $ 0.26 Net income per share, diluted $ 0.15 $ 0.23 $ 0.20 $ 0.23 2015 Interest income $ 9,619,954 $ 9,809,759 $ 10,802,646 $ 10,271,373 Interest expense 1,450,101 1,460,851 1,385,632 1,433,927 Net interest income 8,169,853 8,348,908 9,417,015 8,837,446 Provision for loan and lease losses 135,675 585,000 580,000 350,000 Net interest income after provision for loan and lease losses 8,034,178 7,763,908 8,837,015 8,487,446 Noninterest income 1,911,804 2,418,890 2,634,659 1,918,157 Noninterest expense 7,718,367 7,331,488 8,603,899 7,323,020 Net income before income tax expense 2,227,615 2,851,311 2,867,774 3,082,583 Income tax expense 658,924 990,000 831,307 989,615 Net income $ 1,568,690 $ 1,861,310 $ 2,036,468 $ 2,092,968 Net income per share, basic $ 0.18 $ 0.22 $ 0.24 $ 0.24 Net income per share, diluted $ 0.15 $ 0.18 $ 0.20 $ 0.20 2014 Interest income $ 9,204,274 $ 9,308,583 $ 9,478,772 $ 10,295,115 Interest expense 1,492,690 1,414,085 1,462,025 1,502,095 Net interest income 7,711,584 7,894,498 8,016,747 8,793,020 Provision for loan and lease losses 113,369 586,500 0 3,168,986 Net interest income after provision for loan and lease losses 7,598,215 7,307,998 8,016,747 5,624,034 Noninterest income 1,109,505 1,873,777 2,557,692 1,878,269 Noninterest expense 6,977,181 7,633,590 7,373,935 6,577,399 Net income before income tax expense 1,730,539 1,548,185 3,200,504 924,903 Income tax expense 540,562 509,403 1,128,460 233,961 Net income $ 1,189,976 $ 1,038,782 $ 2,072,044 $ 690,942 Net income per share, basic $ 0.14 $ 0.12 $ 0.24 $ 0.08 Net income per share, diluted $ 0.12 $ 0.10 $ 0.20 $ 0.07 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements as of and for the period ended December 31, 2016 include CapStar Financial Holdings, Inc. and it’s wholly owned subsidiary, CapStar Bank (the “Bank”, together referred to as the “Company”). Significant intercompany transactions and accounts are eliminated in consolidation. The financial statements as of and for the two year period ended December 31, 2015 only include CapStar Bank because the share exchange pursuant to which CapStar Financial Holdings, Inc., a bank holding company and a Tennessee corporation, became the parent company of CapStar Bank had not yet taken place. On February 5, 2016, CapStar Financial Holdings, Inc. acquired all of the Bank’s issued and outstanding shares of common stock, preferred stock, common stock options and warrants, and the Bank became the wholly owned subsidiary of CapStar Financial Holdings, Inc. (the “Share Exchange”). The consolidated financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) and conform to general practices within the banking industry. |
Nature of Operations | Nature of Operations Through the Bank, the Company provides full banking services to consumer and corporate customers located primarily in Davidson, Sumner, Williamson, and the surrounding counties in Tennessee. The Bank operates under a state bank charter and is a member of the Federal Reserve System. As a state member bank, the Bank is subject to regulations of the Tennessee Department of Financial Institutions, the Board of Governors of the Federal Reserve System (the “Federal Reserve”), and the Federal Deposit Insurance Corporation. |
Initial Public Offering | Initial Public Offering On September 21, 2016, the Securities and Exchange Commission (SEC) declared effective our registration statement on Form S-1 registering the shares of our common stock. On September 27, 2016, we completed the initial public offering of 2,972,750 shares of our common stock. Of the 2,972,750 shares sold, 1,688,049 shares were sold by us and 1,284,701 shares were sold by certain selling shareholders. Of the 1,284,701 shares sold by certain selling shareholders, 731,707 were from preferred shares converted to common shares and 79,166 from the cashless exercise of 250,000 common share warrants. We received net proceeds of approximately $21.6 million from the offering, after deducting the underwriting discounts and commissions and offering expenses. We did not receive any proceeds from the sale of shares by the selling shareholders. |
Estimates | Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan and lease losses, determination of impairment of intangible assets, including goodwill, the valuation of our investment portfolio, deferred tax assets and estimated liabilities. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest-bearing deposits in financial institutions and federal funds sold. Generally, federal funds sold are purchased and sold for one-day periods. The Company maintains deposits in excess of the federal insurance amounts with other financial institutions. Management makes deposits only with financial institutions it considers to be financially sound. |
Securities | Securities The Bank accounts for securities under the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320, Investments – Debt and Equity Securities Securities Held to Maturity - Debt securities are classified as held to maturity securities when the Bank has the positive intent and ability to hold the securities to maturity. Securities held to maturity are carried at amortized cost. Trading Securities - Debt and equity securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. No securities have been classified as trading securities. Securities Available for Sale - Debt and equity securities not classified as either held to maturity securities or trading securities are classified as available for sale securities. Securities available for sale are carried at estimated fair value with unrealized gains and losses excluded from earnings and reported as a separate component of shareholders’ equity in other comprehensive income (loss). Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Realized gains and losses from the sales of securities are recorded on the trade date and determined using the specific-identification method. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, the financial condition and near-term prospects of the issuer and any collateral underlying the relevant security. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement and (2) OTTI related to other factors, which is recognized in other comprehensive income (loss). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. |
Loans Held for Sale | Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Realized gains and losses are recognized when legal title of the loan has transferred to the investor and sales proceeds have been received and are reflected in the accompanying statement of income in gain on sale of loans, net of related costs such as commission expenses. The Company does not securitize mortgage loans and does not retain the servicing for loans sold. |
Loans | Loans The Company has six classes of loans for financial reporting purposes: commercial real estate, consumer real estate, construction and land development, commercial and industrial, consumer and other. The appropriate classification is determined based on the underlying collateral utilized to secure each loan. Commercial real estate loans are categorized as such based on investor exposures where repayment is largely dependent upon the operation, refinance, or sale of the underlying real estate. Commercial real estate also includes owner occupied commercial real estate. Consumer real estate consists primarily of 1-4 family residential properties including home equity lines of credit. Construction and land development loans include loans where the repayment is dependent on the successful operation of the related real estate project. Construction and land development loans include 1-4 family construction projects and commercial construction endeavors such as warehouses, apartments, office and retail space and land acquisition and development. Commercial and industrial loans include loans to business enterprises issued for commercial, industrial and/or other professional purposes. Consumer loans include all loans issued to individuals not included in the consumer real estate class. Other loans include all loans not included in the classes of loans above and leases. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs, and an allowance for loan and lease losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well secured and in process of collection. Consumer loans and any accrued interest is typically charged off no later than 180 days past due. Past-due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful and collection is highly questionable. Amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans can also be returned to accrual status when they become well secured and in the process of collection. |
Acquired Loans | Acquired Loans Acquired loans are accounted for under the acquisition method of accounting. The acquired loans are recorded at their estimated fair values as of the acquisition date. Fair value of acquired loans is determined using a discounted cash flow model based on assumptions regarding the amount and timing of principal and interest payments, estimated prepayments, estimated default rates, estimated loss severity in the event of defaults, and current market rates. Estimated credit losses are included in the determination of fair value; therefore, an allowance for loan and lease losses is not recorded on the acquisition date. An acquired loan is considered impaired when there is evidence of credit deterioration since origination and it is probable at the date of acquisition that the Bank will be unable to collect all contractually required payments. Acquired impaired loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as loan type and risk rating. The Company estimates the amount and timing of expected cash flows for each loan or pool, and the expected cash flows in excess of amount paid (fair value) is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan and lease losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Acquired non-impaired loans are recorded at their initial fair value and adjusted for subsequent advances, pay downs, amortization or accretion of any premium or discount on purchase, charge-offs and additional provisioning that may be required. |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses The allowance for loan and lease losses (“ALLL”) is maintained at a level that management believes to be adequate to absorb expected loan and lease losses inherent in the loan portfolio as of the balance sheet date. The allowance for loan and lease losses is a valuation allowance for estimated credit losses inherent in the loan and lease portfolio, increased by the provision for loan and lease losses and decreased by charge-offs, net of recoveries. Quarterly, the Company estimates the allowance required using peer group loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. The Company’s historical loss experience is based on the actual loss history by class of loan for comparable peer institutions due to the Company’s limited loss history. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. Loan and lease losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries are credited to the allowance for loan and lease losses. The Company also considers the results of the external independent loan review when assessing the adequacy of the allowance and incorporates relevant loan review results in the loan impairment and overall adequacy of allowance determinations. Furthermore, regulatory agencies periodically review the Company’s allowance for loan and lease losses and may require the Company to record adjustments to the allowance based on their judgment of information available to them at the time of their examinations. Additional considerations are included in the determination of the adequacy of the allowance based on the continuous review conducted by relationship managers and credit department personnel. The Company’s loan policy requires that each customer relationship wherein total exposure exceeds $1.5 million be subject to a formal credit review at least annually. Should these reviews identify potential collection concerns, appropriate adjustments to the allowance may be made. The allowance consists of specific and general components as discussed below. While the allowance consists of separate components, these terms are primarily used to describe a process. Both portions of the allowance are available to provide for inherent losses in the entire portfolio. Specific Component The specific component relates to loans that are individually determined to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDRs”) and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans meeting any of the following criteria are individually evaluated for impairment: risk rated substandard (as defined in Note 4), on non-accrual status or past due greater than 90 days. If a loan is impaired, a portion of the allowance is allocated based on the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral less costs to sell if repayment is expected solely from the collateral. Changes to the valuation allowance are recorded as a component of the provision for loan and lease losses. TDRs are individually evaluated for impairment and included in the separately identified impairment disclosures. TDRs are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral less costs to sell. General Component The general component of the allowance for loan and lease losses covers loans that are collectively evaluated for impairment. Large groups of homogeneous loans are collectively evaluated for impairment, and accordingly, they are not included in the separately identified impairment disclosures. The general allowance component also includes loans that are individually identified for impairment evaluation but are not considered impaired. The general component is based on historical loss experience adjusted for current factors. Due to the Company’s limited loss history, the historical loss experience is based on the actual loss history by class of loan for comparable peer institutions. The Company utilized a 24 quarter look-back period as of December 31, 2015. Subsequently, the Company increased its look-back period for a total of 28 quarters as of December 31, 2016. In the current economic environment, management believes the extension of the look-back period was ncessary in order to capture sufficient loss observations to develop a reliable loss estimate of credit losses. This extension of the historical look-back period to capture the historical loss experience of peer banks was applied to all classes and segments of our loan portfolio. The actual loss experience is supplemented with other environmental factors that capture changes in trends, conditions, and other relevant factors that may cause estimated credit losses as of the evaluation date to differ from historical loss experience. The allocation for environmental factors is by nature subjective. These amounts represent estimated probable inherent credit losses, which exist but have not been captured in the historical loss experience. The environmental factors include consideration of the following: changes in lending policies and procedures, economic conditions, nature and volume of the portfolio, experience of lending management, volume and severity of past due loans, quality of the loan review system, value of underlying collateral for collateral dependent loans, concentrations, and other external factors. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Bank, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized by the straight-line method based on the shorter of the asset lives or the expected lease terms. Useful lives for premises and equipment range from three to thirty-nine years. These assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. The Company is the lessee with respect to several office locations. All such leases are accounted for as operating leases within the accompanying financial statements. These leases include rent escalation clauses. The Company expenses the costs associated with these escalating payments over the life of the expected lease term using the straight-line method. As of December 31, 2016, the deferred liability associated with these escalating rentals was approximately $161,000 and is included in other liabilities in the accompanying balance sheets. |
Bank Owned Life Insurance | Bank Owned Life Insurance The Bank has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Securities Sold under Agreements to Repurchase | Securities Sold under Agreements to Repurchase The Bank enters into sales of securities under agreements to repurchase at a specified future date. Such repurchase agreements are considered financing arrangements and, accordingly, the obligation to repurchase assets sold is reflected as a liability in the balance sheets of the Bank. Repurchase agreements are collateralized by debt securities which are owned and under the control of the Bank. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. The Company has selected October 31st as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on the balance sheet. Other intangible assets consist of core deposit intangible assets arising from whole bank acquisitions and are amortized on an accelerated method over their estimated useful lives, which range from five to six years. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned (“OREO”) includes assets that have been acquired in satisfaction of debt through foreclosure and are recorded at estimated fair value less the estimated cost of disposition. Fair value is based on independent appraisals and other relevant factors. Valuation adjustments required at foreclosure are charged to the allowance for loan and lease losses. Subsequent to foreclosure, additional losses resulting from the periodic revaluation of the property are charged to other real estate expense. Costs of operating and maintaining the properties and any gains or losses recognized on disposition are also included in other real estate expense. Improvements made to properties are capitalized if the expenditures are expected to be recovered upon the sale of the properties. |
Restricted Equity Securities | Restricted Equity Securities The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest additional amounts. FHLB stock is carried at cost, classified as a restricted equity security, and periodically evaluated for impairment based on an assessment of the ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank is also a member of the Federal Reserve System, and as such, holds stock of the Federal Reserve Bank of Atlanta (“Federal Reserve Bank”). Federal Reserve Bank stock is carried at cost, classified as a restricted equity security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Income Taxes | Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company’s tax returns remain open to audit under the statute of limitations by the IRS and various states for the years ended December 31, 2013 through 2016. It is the Company’s policy to recognize interest and/or penalties related to income tax matters in income tax expense. |
Share-Based Compensation | Stock-Based Compensation Stock-based compensation expense is recognized based on the fair value of the portion of stock-based payment awards that are ultimately expected to vest, reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation expense is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation expense is recognized on a straight-line basis over the requisite service period for the entire award. For awards with performance vesting criteria, anticipated performance is projected to determine the number of awards expected to vest, and the corresponding aggregate expense is adjusted to reflect the elapsed portion of the performance period. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. Advertising expense was approximately $252,000, $310,000 and $460,000 for the years ended December 31, 2016, 2015 and 2014, respectively. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments In the ordinary course of business, the Bank has entered into off-balance-sheet financial instruments consisting of commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or related fees are incurred or received. |
Derivative Instruments | Derivative Instruments Derivative instruments are recorded on the balance sheet at their respective fair values. The accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship. If the derivative instrument is not designated as a hedge, the gain or loss on the derivative instrument is recognized in earnings in the period of change. The Bank enters into interest rate swaps (“swaps”) to facilitate customer transactions and meet their financing needs. Upon entering into these arrangements to meet customer needs, the Bank enters into offsetting positions with large U.S. financial institutions in order to minimize risk to the Bank. These swaps are derivatives, but are not designated as hedging instruments. The Bank also has forward starting cash flow hedges to manage its future interest rate exposure. These derivative contracts have been designated as hedges and, as such, changes in the fair value of these derivative instruments are recorded in other comprehensive income (loss). The Bank prepares written hedge documentation for all derivatives which are designated as hedges. The written hedge documentation includes identification of, among other items, the risk management objective, hedging instrument, hedged item and methodologies for assessing and measuring hedge effectiveness and ineffectiveness, along with support for management’s assertion that the hedge will be highly effective. The effective portion of the changes in the fair value of a derivative that is highly effective and that has been designated and qualifies as a cash flow hedge are initially recorded in accumulated other comprehensive income (loss) and subsequently reclassified into earnings in the same period during which the hedged item affects earnings. The ineffective portion, if any, would be recognized in current period earnings. The Bank discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative is settled or terminates, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income (loss) are amortized into earnings over the same periods which the hedged transactions will affect earnings. Cash flows resulting from the derivative financial instruments that are accounted for as hedges are classified in the cash flow statement in the same category as the cash flows of the items being hedged. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, unrealized gains and losses on securities transferred to held to maturity and unrealized gains and losses on cash flow hedges which are also recognized as separate components of equity. |
Fair Value Measurements | Fair Value Measurements Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. |
Restriction on Cash Balances | Restriction on Cash Balances Regulation D of the Federal Reserve Act requires that banks maintain reserve balances with their applicable Federal Reserve Bank based principally on the type and amount of their deposits. The Bank was required to have a reserve balance of $40,902,000 and $27,105,000 at December 31, 2016 and 2015, respectively. The reserve balance that the Bank must maintain at the Federal Reserve Bank of Atlanta is included in interest-bearing deposits in financial institutions as of December 31, 2016 and 2015. |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events for recognition and disclosure through March 13, 2017, which is the date the financial statements were available to be issued. |
Income Per Common Share | Income Per Common Share Basic net income per share available to common stockholders (“EPS”) is computed by dividing net income available to common stockholders by the weighted average shares of common stock outstanding for the period. Diluted EPS reflects the dilution that could occur if securities or other contracts to issue common stock were exercised or converted. The difference between basic and diluted weighted average shares outstanding is attributable to convertible preferred stock, common stock options and warrants. The dilutive effect of outstanding convertible preferred stock, common stock options and warrants is reflected in diluted EPS by application of the treasury stock method. For the years ended December 31, 2016, 2015, and 2014 respectively, approximately 0, 203,000 and 133,000 of antidilutive stock options were excluded from the diluted earnings per share of common stock calculation under the treasury stock method. The following is a summary of the basic and diluted earnings per share calculation for each of the following years (in thousands except share data): Year Ended December 31, 2016 2015 2014 Basic net income per share calculation: Numerator – Net income $ 9,096,778 $ 7,559,436 $ 4,991,744 Denominator – Average shares of common stock outstanding 9,328,236 8,538,970 8,456,386 Basic net income per share $ 0.98 $ 0.89 $ 0.59 Diluted net income per share calculation: Numerator – Net income $ 9,096,778 $ 7,559,436 $ 4,991,744 Denominator – Average shares of common stock outstanding 9,328,236 8,538,970 8,456,386 Dilutive shares contingently issuable 1,883,790 1,842,925 1,824,658 Average diluted shares of common stock outstanding 11,212,026 10,381,895 10,281,044 Diluted net income per share $ 0.81 $ 0.73 $ 0.49 |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements ASU 2014-09, Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, which outlines a single comprehensive model for use in accounting for revenue arising from contracts with customers, and supersedes most current revenue recognition guidance. The ASU was originally effective for fiscal years and interim periods beginning after December 15, 2016. In August 2015, FASB issued ASU 2015-14 which delays the effective date. The effective date will be annual reporting periods beginning after December 15, 2017, and the interim periods within that year. The Company is evaluating the potential impact of adoption of ASU 2014-09. ASU 2016-02, Leases In February 2016, the FASB issued guidance in the form of a FASB ASU, “Leases”. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain optional practical expedients available. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is evaluating the impact of the pending adoption of the new standard on the Company’s financial statements and disclosures. ASU 2016-09, Compensation – Stock Compensation In March 2016, the FASB amended existing guidance to simplify the accounting for share-based payment award transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; (c) classification on the statement of cash flows; and (d) policy election to estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively. Amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating the expected term should be applied prospectively. An entity may elect to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using either a prospective transition method or a retrospective transition method. The amendments are effective for public companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition. ASU 2016-13, Financial Instruments – Credit Losses In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses, which outlines changes to replace the incurred loss impairment methodology currently in place with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate credit losses. The ASU is effective for fiscal years and interim periods beginning after December 15, 2019. The adoption of ASU 2016-13 is expected to have a significant impact on the Bank’s operations and financial statements. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of the Basic and Diluted Earnings Per Share | The following is a summary of the basic and diluted earnings per share calculation for each of the following years (in thousands except share data): Year Ended December 31, 2016 2015 2014 Basic net income per share calculation: Numerator – Net income $ 9,096,778 $ 7,559,436 $ 4,991,744 Denominator – Average shares of common stock outstanding 9,328,236 8,538,970 8,456,386 Basic net income per share $ 0.98 $ 0.89 $ 0.59 Diluted net income per share calculation: Numerator – Net income $ 9,096,778 $ 7,559,436 $ 4,991,744 Denominator – Average shares of common stock outstanding 9,328,236 8,538,970 8,456,386 Dilutive shares contingently issuable 1,883,790 1,842,925 1,824,658 Average diluted shares of common stock outstanding 11,212,026 10,381,895 10,281,044 Diluted net income per share $ 0.81 $ 0.73 $ 0.49 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Farmington | |
Schedule of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid for Farmington and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date (in thousands): Consideration: Cash $ 3,000 Equity instruments 1,148 Contingent consideration 2,206 Fair value of total consideration transferred $ 6,354 Fair value of assets acquired: Loans held for sale $ 4,111 Premises and equipment 102 Total assets acquired 4,213 Fair value of liabilities assumed: Warehouse line of credit 3,996 Other liabilities 31 Total liabilities assumed 4,027 Total identifiable net assets acquired 186 Goodwill 6,168 $ 6,354 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Company's Classification of Securities | The Company’s classification of securities at December 31, 2016 and 2015 was as follows (in thousands): December 31, 2016 December 31, 2015 Amortized Cost Gross unrealized gains Gross unrealized (losses) Estimated fair value Amortized Cost Gross unrealized gains Gross unrealized (losses) Estimated fair value Securities available for sale: U. S. government agency securities $ 9,517 $ — $ (143 ) $ 9,374 $ 19,562 $ 16 $ (36 ) $ 19,542 State and municipal securities 28,480 65 (632 ) 27,913 13,776 99 (7 ) 13,868 Mortgage-backed securities 126,637 17 (2,059 ) 124,595 119,828 13 (1,461 ) 118,380 Asset-backed securities 21,620 — (1,147 ) 20,473 22,814 — (1,221 ) 21,593 Total $ 186,254 $ 82 $ (3,981 ) $ 182,355 $ 175,980 $ 128 $ (2,725 ) $ 173,383 Securities held to maturity: State and municipal securities $ 36,842 $ 2,784 $ — $ 39,626 $ 37,005 $ 3,245 $ — $ 40,250 Mortgage-backed securities 4,687 79 — 4,766 6,089 120 — 6,209 Other debt securities 5,335 11 (7 ) 5,339 — — — — Total $ 46,864 $ 2,874 $ (7 ) $ 49,731 $ 43,094 $ 3,365 $ — $ 46,459 |
Summary of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of debt and equity securities at December 31, 2016, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Available-for-sale Held-to-maturity Amortized cost Estimated fair value Amortized cost Estimated fair value Due one to five years $ 11,425 $ 11,319 $ 17,628 $ 18,500 Due five to ten years 21,077 20,841 16,732 17,761 Due beyond ten years 5,495 5,127 7,817 8,704 Mortgage-backed securities 126,637 124,595 4,687 4,766 Asset-backed securities 21,620 20,473 — — $ 186,254 $ 182,355 $ 46,864 $ 49,731 |
Summary of Sale of Debt and Equity Securities | Results from sales of debt and equity securities were as follows (in thousands): Year ended December 31 2016 2015 2014 Available for sale: Proceeds from sales of securities $ 46,700 $ 90,445 $ 161,603 Gross realized gains 244 261 520 Gross realized losses (123 ) (206 ) (507 ) |
Summary of Securities with Unrealized Losses Aggregated by Major Security Type and Length of Time in a Continuous Unrealized Loss Position | The following tables show the Company’s securities with unrealized losses, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands): Less than 12 months 12 months or more Total December 31, 2016 Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses U. S. government agency securities $ 9,374 $ (143 ) $ — $ — $ 9,374 $ (143 ) State and municipal securities 20,279 (632 ) — — 20,279 (632 ) Mortgage-backed securities 110,563 (1,955 ) 4,150 (104 ) 114,713 (2,059 ) Asset-backed securities — — 20,473 (1,147 ) 20,473 (1,147 ) Other debt securities 2,029 (7 ) — — 2,029 (7 ) Total temporarily impaired securities $ 142,245 $ (2,737 ) $ 24,623 $ (1,251 ) $ 166,868 $ (3,988 ) December 31, 2015 U. S. government agency securities $ 13,100 $ (36 ) $ — $ — $ 13,100 $ (36 ) State and municipal securities 3,099 (7 ) — — 3,099 (7 ) Mortgage-backed securities 97,154 (1,068 ) 16,260 (393 ) 113,414 (1,461 ) Asset-backed securities — — 21,593 (1,221 ) 21,593 (1,221 ) Total temporarily impaired securities $ 113,353 $ (1,111 ) $ 37,853 $ (1,614 ) $ 151,206 $ (2,725 ) |
Loans and Allowance for Loan 37
Loans and Allowance for Loan and Lease Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Summary of Loans | Loans at December 31, 2016 and 2015 were as follows (in thousands): December 31, 2016 December 31, 2015 Commercial real estate $ 302,322 $ 251,197 Consumer real estate 97,015 93,785 Construction and land development 94,491 52,522 Commercial and industrial 379,620 353,442 Consumer 5,974 8,668 Other 56,796 50,197 Total 936,218 809,811 Less net unearned income (967 ) (1,415 ) 935,251 808,396 Allowance for loan and lease losses (11,634 ) (10,132 ) $ 923,617 $ 798,264 |
Summary of Risk Category of Loans by Applicable Class of Loans | The following table provides the risk category of loans by applicable class of loans as of December 31, 2016 and 2015 (in thousands): Performing Loans December 31, 2016 Pass Special Mention Substandard Total Performing Total Loans Total Commercial real estate $ 301,012 $ — $ — $ 301,012 $ 1,310 $ 302,322 Consumer real estate 96,722 — 293 97,015 — 97,015 Construction and land development 94,491 — — 94,491 — 94,491 Commercial and industrial 349,857 11,035 16,419 377,311 2,309 379,620 Consumer 5,958 — 16 5,974 — 5,974 Other 56,796 — — 56,796 — 56,796 Total $ 904,836 $ 11,035 $ 16,728 $ 932,599 $ 3,619 $ 936,218 December 31, 2015 Commercial real estate $ 249,249 $ — $ — $ 249,249 $ 1,948 $ 251,197 Consumer real estate 93,181 — — 93,181 604 93,785 Construction and land development 52,522 — — 52,522 — 52,522 Commercial and industrial 338,106 6,230 9,106 353,442 — 353,442 Consumer 8,543 — — 8,543 125 8,668 Other 50,197 — — 50,197 — 50,197 Total $ 791,798 $ 6,230 $ 9,106 $ 807,134 $ 2,677 $ 809,811 |
Summary of Changes in Allowance for Loan Losses by Loan Classification | The following tables detail the changes in the ALLL from December 31, 2013 through December 31, 2016 by loan classification and the allocation of the ALLL (in thousands): Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total Allowance for Loan and Lease Losses: Balances, December 31, 2013 $ 1,408 $ 688 $ 332 $ 5,870 $ 81 $ 80 $ 8,459 Charged-off loans (92 ) (57 ) — (816 ) (182 ) — (1,147 ) Recoveries — 21 — 52 28 — 101 Provision for loan and lease losses 219 (31 ) 76 3,434 148 23 3,869 Balances, December 31, 2014 $ 1,535 $ 621 $ 408 $ 8,540 $ 75 $ 103 $ 11,282 Collectively evaluated for impairment $ 1,250 $ 448 $ 235 $ 6,140 $ 75 $ 103 $ 8,251 Individually evaluated for impairment 285 173 — 2,400 — — 2,858 Loans acquired with deteriorated credit quality — — 173 — — — 173 Balances, December 31, 2014 $ 1,535 $ 621 $ 408 $ 8,540 $ 75 $ 103 $ 11,282 Loans: Collectively evaluated for impairment $ 217,628 $ 77,056 $ 45,058 $ 329,807 $ 7,911 $ 29,393 $ 706,853 Individually evaluated for impairment 2,165 592 — 3,806 — — 6,563 Loans acquired with deteriorated credit quality — 40 1,135 — — — 1,175 Balances, December 31, 2014 $ 219,793 $ 77,688 $ 46,193 $ 333,613 $ 7,911 $ 29,393 $ 714,591 Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total Allowance for Loan and Lease Losses: Balances, December 31, 2014 $ 1,535 $ 621 $ 408 $ 8,540 $ 75 $ 103 $ 11,282 Charged-off loans — (173 ) — (3,033 ) — — (3,206 ) Recoveries 31 68 — 299 7 — 405 Provision for loan and lease losses 1,313 452 506 (1,113 ) 21 472 1,651 Balances, December 31, 2015 $ 2,879 $ 968 $ 914 $ 4,693 $ 103 $ 575 $ 10,132 Collectively evaluated for impairment $ 2,314 $ 968 $ 914 $ 4,693 $ 103 $ 575 $ 9,567 Individually evaluated for impairment 565 — — — — — 565 Loans acquired with deteriorated credit quality — — — — — — — Balances, December 31, 2015 $ 2,879 $ 968 $ 914 $ 4,693 $ 103 $ 575 $ 10,132 Loans: Collectively evaluated for impairment $ 249,249 $ 93,181 $ 52,522 $ 353,442 $ 8,543 $ 50,197 $ 807,134 Individually evaluated for impairment 1,948 604 — — 125 — 2,677 Loans acquired with deteriorated credit quality — — — — — — — Balances, December 31, 2015 $ 251,197 $ 93,785 $ 52,522 $ 353,442 $ 8,668 $ 50,197 $ 809,811 Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total Allowance for Loan and Lease Losses: Balances, December 31, 2015 $ 2,879 $ 968 $ 914 $ 4,693 $ 103 $ 575 $ 10,132 Charged-off loans (350 ) — — (956 ) (146 ) — (1,452 ) Recoveries 52 — — 23 50 — 125 Provision for loan and lease losses 74 45 660 1,858 69 123 2,829 Balances, December 31, 2016 $ 2,655 $ 1,013 $ 1,574 $ 5,618 $ 76 $ 698 $ 11,634 Collectively evaluated for impairment $ 2,655 $ 1,013 $ 1,574 $ 5,118 $ 76 $ 698 $ 11,134 Individually evaluated for impairment — — — 500 — — 500 Loans acquired with deteriorated credit quality — — — — — — — Balances, December 31, 2016 $ 2,655 $ 1,013 $ 1,574 $ 5,618 $ 76 $ 698 $ 11,634 Loans: Collectively evaluated for impairment $ 301,012 $ 97,015 $ 94,491 $ 377,311 $ 5,974 $ 56,796 $ 932,599 Individually evaluated for impairment 1,310 — — 2,309 — — 3,619 Loans acquired with deteriorated credit quality — — — — — — — Balances, December 31, 2016 $ 302,322 $ 97,015 $ 94,491 $ 379,620 $ 5,974 $ 56,796 $ 936,218 |
Allocation of ALLL with Corresponding Percentage of Loans in Each Category to Total Loans, Net of Deferred Fee | The following table presents the allocation of the ALLL for each respective loan category with the corresponding percentage of loans in each category to total loans, net of deferred fees as of December 31, 2016 and 2015 (dollars in thousands): December 31, 2016 December 31, 2015 Amount Percent of total loans, net of deferred fees Amount Percent of total loans, net of deferred fees Commercial real estate $ 2,655 0.28 % $ 2,879 0.36 % Consumer real estate 1,013 0.11 968 0.12 Construction and land development 1,574 0.17 914 0.11 Commercial and industrial 5,618 0.60 4,693 0.58 Consumer 76 0.01 103 0.01 Other 698 0.07 575 0.07 Total allowance for loan and lease losses $ 11,634 1.24 % $ 10,132 1.25 % |
Summary of Information Related to Impaired Loans | The following table presents information related to impaired loans as of and for the years ended December 31, 2016 and 2015 (in thousands): Year Ended December 31, 2016 December 31, 2016 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized With no related allowance recorded: Commercial real estate $ 1,310 $ 1,686 $ — $ 655 $ — Consumer real estate — — — 302 — Construction and land development — — — — — Commercial and industrial — — — — — Consumer — — — 63 — Other — — — — — Subtotal 1,310 1,686 — 1,020 — With an allowance recorded: Commercial real estate — — — 974 — Consumer real estate — — — — — Construction and land development — — — — — Commercial and industrial 2,309 2,921 500 1,155 44 Consumer — — — — — Other — — — — — Subtotal 2,309 2,921 500 2,129 44 Total $ 3,619 $ 4,607 $ 500 $ 3,148 $ 44 Year End December 31, 2015 December 31, 2015 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized With no related allowance recorded: Commercial real estate $ — $ — $ — $ 42 $ — Consumer real estate 604 681 — 357 — Construction and land development — — — — — Commercial and industrial — — — 594 — Consumer 125 125 — 63 5 Other — — — — — Subtotal 729 806 — 1,056 5 With an allowance recorded: Commercial real estate 1,948 1,948 565 2,015 — Consumer real estate — — — 262 — Construction and land development — — — 568 — Commercial and industrial — — — 1,309 — Consumer — — — — — Other — — — — — Subtotal 1,948 1,948 565 4,154 — Total $ 2,677 $ 2,754 $ 565 $ 5,210 $ 5 |
Schedule of Aging of Recorded Investment in Past-due Loans, by Class of Loans | The following table presents the aging of the recorded investment in past-due loans as of December 31, 2016 and 2015 by class of loans (in thousands): 30 - 59 60 - 89 Greater Than Days Days 89 Days Total Loans Not December 31, 2016 Past Due Past Due Past Due Past Due Past Due Total Commercial real estate $ — $ — $ — $ — $ 302,322 $ 302,322 Consumer real estate 81 282 — 363 96,652 97,015 Construction and land development — — — — 94,491 94,491 Commercial and industrial — — — — 379,620 379,620 Consumer — — — — 5,974 5,974 Other — — — — 56,796 56,796 Total $ 81 $ 282 $ — $ 363 $ 935,855 $ 936,218 December 31, 2015 Commercial real estate $ — $ — $ 1,948 $ 1,948 $ 249,249 $ 251,197 Consumer real estate 100 54 616 770 93,015 93,785 Construction and land development — — — — 52,522 52,522 Commercial and industrial — — — — 353,442 353,442 Consumer — — 125 125 8,543 8,668 Other — — — — 50,197 50,197 Total $ 100 $ 54 $ 2,689 $ 2,843 $ 806,968 $ 809,811 |
Schedule of Recorded In Non Accrual Loans and Troubled Debt Restructurings | The following table presents the recorded investment in non-accrual loans and troubled debt restructurings (TDR) by class of loans as of December 31, 2016 and 2015 (in thousands): Non-Accrual Troubled Debt Restructurings December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Commercial real estate $ 1,310 $ 1,948 $ 1,272 $ — Consumer real estate — 616 — — Construction and land development — — — — Commercial and industrial 2,309 — — — Consumer — 125 — 125 Other — — — — Total $ 3,619 $ 2,689 $ 1,272 $ 125 |
Schedule of Presents Loans by Class Modified as TDR | The following table presents loans by class modified as TDR that occurred during the year ended December 31, 2016 and 2015 (in thousands). Year Ended December 31, Number of contracts Pre modification outstanding recorded investment Post modification outstanding recorded investment, net of related allowance 2016 Commercial real estate 1 $ 1,948 $ 1,170 Consumer real estate — — — Construction and land development — — — Commercial and industrial — — — Consumer — — — Other — — — Total 1 $ 1,948 $ 1,170 2015 Commercial real estate — $ — $ — Consumer real estate — — — Construction and land development — — — Commercial and industrial — — — Consumer 1 125 125 Other — — — Total 1 $ 125 $ 125 |
Schedule of Loans by Class Modified as TDR for the Payment Default Within Twelve Months | The following table presents loans by class modified as TDR for which there was a payment default within twelve months following the modification during the year ended December 31, 2016 and 2015 (in thousands). Year Ended December 31, Number of contracts Recorded investment 2016 Commercial real estate — $ — Consumer real estate — — Construction and land development — — Commercial and industrial — — Consumer 1 124 Other — — Total 1 $ 124 2015 Commercial real estate — $ — Consumer real estate — — Construction and land development — — Commercial and industrial 1 — Consumer — — Other — — Total 1 $ — |
Schedule of Accretable Yield or Income Expected to be Collected | Accretable yield, or income expected to be collected, was as follows for the years ended December 31 (in thousands): 2016 2015 2014 Balance at January 1 $ — $ (190 ) $ (297 ) New loans purchased — — — Accretion of income — 499 255 Reclassifications from nonaccretable difference — (309 ) (148 ) Disposals — — — Balance at December 31 $ — $ — $ (190 ) |
Schedule of Components of Direct Financing Leases | The components of the direct financing leases as of December 31, 2016 and 2015 were as follows (in thousands): December 31, 2016 December 31, 2015 Total minimum lease payments receivable $ 2,567 $ 5,215 Less: Unearned income (96 ) (321 ) Net leases $ 2,471 $ 4,894 |
Summary of Future Minimum Lease Payments Receivable under Direct Financing Leases | The future minimum lease payments receivable under the direct financing leases as of December 31, 2016 were as follows (in thousands): Year ending December 31: 2017 $ 1,877 2018 332 2019 303 2020 55 2021 — $ 2,567 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Summary of Premises and Equipment | Premises and equipment at December 31, 2016 and 2015 are summarized as follows (in thousands): Range of useful lives December 31, 2016 December 31, 2015 Land Not applicable $ 1,180 $ 1,180 Buildings 39 years 3,586 3,586 Leasehold improvements 2 to 10 years 1,171 1,174 Furniture and equipment 3 to 7 years 2,055 2,332 Leasehold improvements in process Not applicable 774 — 8,766 8,272 Less accumulated depreciation and amortization (3,416 ) (3,376 ) $ 5,350 $ 4,896 |
Summary of Future Minimum Payments under Operating Leases | Future minimum payments under these operating leases as of December 31, 2016 are as follows (in thousands): Year ending December 31: 2017 $ 868 2018 1,179 2019 950 2020 951 2021 968 Thereafter 10,542 $ 15,458 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Change in Goodwill | The change in goodwill during the years ended December 31, 2016 and 2015, respectively, was as follows (in thousands): 2016 2015 Beginning of year $ 6,219 $ 6,219 Acquired goodwill — — Impairment — — End of year $ 6,219 $ 6,219 |
Summary of Acquired Intangible Assets | Acquired intangible assets at December 31, 2016 and 2015 were as follows (in thousands): December 31, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Core deposit intangibles $ 287 $ (216 ) $ 287 $ (162 ) |
Summary of Estimated Amortization Expense | Estimated amortization expense for each of the next five years is as follows (in thousands): Year ending December 31: 2017 $ 48 2018 23 2019 — 2020 — 2021 — |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Real Estate [Abstract] | |
Summary of Other Real Estate Owned Activity | Other real estate owned activity was as follows (in thousands): 2016 2015 Beginning balance $ 216 $ 575 Loans transferred to other real estate owned — — Direct write-downs — — Sales of other real estate owned (216 ) (359 ) End of year $ — $ 216 |
Summary of Valuation Allowance Activity in Other Real Estate Owned | Activity in the valuation allowance was as follows during the years ended December 31, 2016 and 2015, respectively (in thousands): 2016 2015 Beginning balance $ 450 $ 450 Additions/(recoveries) charged/(credited) to expense — — Reductions from sales of other real estate owned (450 ) — Direct write-downs — — End of year $ — $ 450 |
Summary of Expenses Related to Other Real Estate Owned | Expenses related to other real estate owned during the years ended December 31, 2016 and 2015, respectively include (in thousands): 2016 2015 Net (gain) loss on sales $ (157 ) $ 4 Provision for unrealized losses — — Operating expenses, net of rental income 14 30 Total $ (143 ) $ 34 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Scheduled Maturities of Time Deposits | Scheduled maturities of time deposits for the next five years and thereafter are as follows (in thousands): Maturity: 2017 $ 125,309 2018 29,542 2019 17,771 2020 7,926 2021 3,057 Thereafter 23 $ 183,628 |
Securities Sold Under Repurch42
Securities Sold Under Repurchase Agreements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Information Concerning Securities Sold Under Repurchase Agreements | Information concerning securities sold under repurchase agreements is summarized as follows (in thousands): 2016 2015 Average daily balance during the year $ 526 $ 6,489 Average interest rate during the year 0.15 % 0.23 % Maximum month-end balance during the year $ 3,316 $ 15,862 Weighted average interest rate at year-end — 0.25 % |
Federal Home Loan Bank Advanc43
Federal Home Loan Bank Advances (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Federal Home Loan Banks [Abstract] | |
Summary of Contractual Maturities and Average Effective Rates of Outstanding Advances | The following is a summary of the contractual maturities and average effective rates of outstanding advances (dollars in thousands): December 31, 2016 December 31, 2015 Year Amount Interest Rates Amount Interest Rates 2016 $ — — $ 45,000 0.57 % 2017 55,000 0.80 % — — 2018 — — — — 2019 — — — — 2020 — — — — 2021 — — — — Thereafter — — — — Total $ 55,000 0.80 % $ 45,000 0.57 % |
Accumulated Other Comprehensi44
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax | The following were changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ending December 31, 2016 and 2015 (in thousands): Unrealized Gains Unrealized Gains and and Losses Losses on Losses on on Available Securities Cash Flow for Sale Transferred to Year Ended December 31, 2015 Hedges Securities Held to Maturity Total Beginning Balance $ (2,139 ) $ 723 $ (1,418 ) $ (2,834 ) Other comprehensive income (loss) before reclassification (1,542 ) (652 ) 206 (1,988 ) Amounts reclassified from accumulated other comprehensive income (23 ) 34 (103 ) (92 ) Net current period other comprehensive income (loss) (1,565 ) (618 ) 103 (2,080 ) Ending Balance $ (3,704 ) $ 105 $ (1,315 ) $ (4,914 ) Year Ended December 31, 2016 Beginning Balance $ (3,704 ) $ 105 $ (1,315 ) $ (4,914 ) Other comprehensive income (loss) before reclassification (279 ) (878 ) 206 (951 ) Amounts reclassified from accumulated other comprehensive income (257 ) 75 (103 ) (285 ) Net current period other comprehensive income (loss) (536 ) (803 ) 103 (1,236 ) Ending Balance $ (4,240 ) $ (698 ) $ (1,212 ) $ (6,150 ) |
Summary of Significant Amounts Reclassified out off Accumulated Other Comprehensive Income (Loss) | The following were significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the year ending December 31, 2016 (in thousands): Amount Reclassified from Affected Line Item Details about Accumulated Other Accumulated Other in the Statement Where Comprehensive Income Components Comprehensive Income Net Income is Presented Unrealized losses on cash flow hedges $ (151 ) Interest expense - money market (265 ) Interest expense - Federal Home Loan Bank advances 159 Income tax (expense) benefit $ (257 ) Net of tax Unrealized gains and losses on available for sale securities $ 121 Net gain on sale of securities (46 ) Income tax (expense) benefit $ 75 Net of tax Unrealized losses on securities transferred to held to maturity $ (167 ) Interest income - securities 64 Income tax (expense) benefit $ (103 ) Net of tax The following were significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the year ending December 31, 2015 (in thousands): Amount Reclassified from Affected Line Item Details about Accumulated Other Accumulated Other in the Statement Comprehensive Income Components Comprehensive Income Net Income is Presented Unrealized losses on cash flow hedges $ (37 ) Interest expense - money market 14 Income tax (expense) benefit $ (23 ) Net of tax Unrealized gains and losses on available for sale securities $ 55 Net gain on sale of securities (21 ) Income tax (expense) benefit $ 34 Net of tax Unrealized losses on securities transferred to held to maturity $ (167 ) Interest income - securities 64 Income tax (expense) benefit $ (103 ) Net of tax |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense are summarized as follows (in thousands): 2016 2015 2014 Current: Federal $ 4,029 $ 2,794 $ 1,630 State 759 168 333 4,788 2,962 1,963 Deferred: Federal (395 ) 314 373 State 100 194 76 (295 ) 508 449 Total $ 4,493 $ 3,470 $ 2,412 |
Schedule of Reconciliation of Actual Income Tax Expense | A reconciliation of actual income tax expense in the financial statements to the “expected” tax expense (computed by applying the statutory federal income tax rate of 34% to income before income taxes) for the years ended December 31, 2016, 2015 and 2014 is as follows (in thousands): 2016 2015 2014 Computed "expected" tax expense $ 4,621 $ 3,750 $ 2,517 State income taxes, net of effect of federal income taxes 567 239 270 Tax-exempt interest income (394 ) (367 ) (311 ) Earnings on bank owned life insurance contracts (204 ) (213 ) (223 ) Disallowed expenses 60 71 62 Expiration of capital loss carryforward — — 98 Other (157 ) (10 ) (1 ) Total $ 4,493 $ 3,470 $ 2,412 |
Schedule of Deferred Tax Assets and Liabilities | Significant items that gave rise to deferred taxes at December 31, 2016 and 2015 were as follows (in thousands): December 31, 2016 December 31, 2015 Deferred tax assets: Allowance for loan and lease losses $ 4,320 $ 3,787 Depreciation 326 341 Net operating loss carryforward 1,548 1,705 Organization and preopening costs 987 1,142 Stock-based compensation 1,071 941 Acquired loans 224 401 Acquired deposits 60 109 Nonaccrual interest 39 60 Write-downs of other real estate — 171 Accrued incentive compensation 688 694 Reserve for contingencies 1,061 462 Accrued contributions 197 140 Unrealized loss on securities available for sale 1,493 995 Unrealized loss on securities held to maturity 752 816 Cash flow hedge 588 1,209 Accrued vacation 54 53 Other 51 74 Deferred tax assets 13,459 13,100 Deferred tax liabilities: Prepaid expenses 133 — Goodwill 343 204 Amortization of core deposit intangible 27 47 Deferred tax liabilities 503 251 Net deferred tax asset $ 12,956 $ 12,849 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments Representing Credit Risk | The following table sets forth outstanding financial instruments whose contract amounts represent credit risk as of December 31, 2016 and 2015 (in thousands): Contract or notional amount December 31, 2016 December 31, 2015 Financial instruments whose contract amounts represent credit risk: Unused commitments to extend credit $ 508,990 $ 384,837 Standby letters of credit 10,886 13,450 Total $ 519,876 $ 398,287 |
Regulatory Matters And Restri47
Regulatory Matters And Restrictions On Dividends (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking And Thrift [Abstract] | |
Schedule of Capital Amounts and Ratios | The Company’s and the Bank’s capital amounts and ratios are presented in the following table (in thousands). Only the Bank’s capital amounts and ratios are presented as of December 31, 2015 because the share exchange had not yet occurred. Actual Minimum capital requirement (1) Minimum to be well-capitalized (2) Amount Ratio Amount Ratio Amount Ratio At December 31, 2016: Total capital to risk-weighted assets: CapStar Financial Holdings, Inc. $ 149,616 12.6 % $ 95,028 8.0 % $ N/A N/A CapStar Bank 126,718 10.7 95,028 8.0 118,785 10.0 Tier I capital to risk-weighted assets: CapStar Financial Holdings, Inc. 137,909 11.6 71,271 6.0 N/A N/A CapStar Bank 115,011 9.7 71,271 6.0 95,028 8.0 Common equity Tier 1 capital to risk weighted assets: CapStar Financial Holdings, Inc. 129,528 10.9 53,453 4.5 N/A N/A CapStar Bank 99,130 8.3 53,453 4.5 77,210 6.5 Tier I capital to average assets: CapStar Financial Holdings, Inc. 137,909 10.5 52,727 4.0 N/A N/A CapStar Bank 115,011 8.7 52,727 4.0 65,909 5.0 At December 31, 2015: Total capital to risk-weighted assets $ 116,047 11.4 % $ 81,224 8.0 % $ 101,530 10.0 % Tier I capital to risk-weighted assets 105,749 10.4 60,918 6.0 81,224 8.0 Common equity tier 1 capital 90,272 8.9 45,688 4.5 65,994 6.5 Tier I capital to average assets 105,749 9.3 45,328 4.0 56,660 5.0 |
Stock Options and Restricted 48
Stock Options and Restricted Shares (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Company Recognized Stock-Based Compensation Expense | The Company has recognized stock-based compensation expense, within salaries and employee benefits for employees, and within other non-interest expense for directors, in the consolidated statements of income as follows (in thousands): For the year ended December 31, 2016 2015 2014 Stock-based compensation expense before income taxes $ 842 $ 438 $ 261 Less: deferred tax benefit (279 ) (138 ) (85 ) Reduction of net income $ 563 $ 300 $ 176 |
Summary of Changes in Company's Nonvested Restricted Shares | A summary of the changes in the Company’s nonvested restricted shares for 2016 follows: Weighted Average Restricted Grant Date Nonvested Shares Shares Fair Value Nonvested at beginning of period 138,453 $ 11.16 Granted 126,851 12.86 Vested (40,596 ) 10.34 Forfeited (25,067 ) 11.68 Nonvested at end of period 199,641 $ 12.34 |
Summary of Fair Value of Options Granted Using Weighted Average Assumptions | The fair value of options granted was determined using the following weighted average assumptions as of the grant date: 2016 2015 Dividend yield — — Expected term (in years) 7.48 7.29 Expected stock price volatility 17.20 % 21.26 % Risk-free interest rate 1.66 % 1.86 % Pre-vest forfeiture rate 10.25 % 10.33 % |
Summary of Activity in Stock Options | A summary of the activity in stock options for 2016 follows: Weighted Weighted Average Average Remaining Exercise Contractual Shares Price Term (years) Outstanding at beginning of period 1,018,500 $ 10.42 Granted 32,500 13.22 Exercised (8,125 ) 11.85 Forfeited or expired (36,875 ) 11.05 Outstanding at end of period 1,006,000 $ 10.48 3.1 Fully vested and expected to vest 996,803 $ 10.46 3.1 Exercisable at end of period 929,750 $ 10.35 2.7 |
Information Related to Stock Options | Information related to stock options during 2016 and 2015 follows: 2016 2015 Intrinsic value of options exercised $ 53,756 $ 1,410 Cash received from option exercises 96,306 10,000 Tax benefit realized from option exercises 20,583 900 Weighted average fair value of options granted 3.16 3.20 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Interest-Rate Swaps Designated as Cash Flow Hedges | Summary information about the interest-rate swaps designated as cash flow hedges was as follows (dollars in thousands): December 31, 2016 December 31, 2015 Notional amounts $ 20,000 $ 35,000 Weighted average pay rates 3.54 % 3.67 % Weighted average receive rates 3 month 3 month LIBOR Weighted average maturity 6.5 years 7.4 years Fair value $ (1,535 ) $ (3,158 ) Amount of unrealized loss recognized in accumulated other comprehensive income, net of tax $ (947 ) $ (1,949 ) |
Summary of Customer Related Interest Rate Swaps | A summary of the Company’s customer related interest rate swaps is as follows (in thousands): December 31, 2016 December 31, 2015 Notional Estimated Notional Estimated amount fair value amount fair value Interest rate swap agreements: Pay fixed/receive variable swaps $ 41,254 $ 460 $ 45,675 $ (726 ) Pay variable/receive fixed swaps 41,254 (460 ) 45,675 726 Total $ 82,508 $ — $ 91,350 $ — |
Related Party (Tables)
Related Party (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions Activity within Loans | The Company may enter into loan transactions with certain directors, executive officers, significant shareholders, and their affiliates. Such transactions were made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the same time for comparable transactions with persons not affiliated with the Company, and did not, in the opinion of management, involve more than normal credit risk or present other unfavorable features. None of these loans were impaired at December 31, 2016 or 2015. Activity within these loans during the year ended December 31, 2016 was as follows (in thousands): Total commitment Total funded commitment Balance December 31, 2015 $ 27,501 $ 17,770 New commitments/draw downs 4,805 4,692 Repayments (1,230 ) (2,137 ) Balance December 31, 2016 $ 31,076 $ 20,325 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair value measurements at December 31, 2016 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (Level 1) (Level 2) (Level 3) Assets: Securities available for sale: U.S. government-sponsored agencies $ 9,374 $ — $ 9,374 $ — Obligations of states and political subdivisions 27,913 — 27,913 — Mortage-backed securities-residential 124,595 — 124,595 — Asset-backed securities 20,473 — 20,473 — Total securities available for sale $ 182,355 $ — $ 182,355 $ — Derivatives: Interest rate swaps - customer related $ 460 $ — $ 460 $ — Liabilities: Derivatives: Interest rate swaps - customer related $ (460 ) $ — $ (460 ) $ — Interest rate swaps - cash flow hedges (1,535 ) — (1,535 ) — Total derivatives $ (1,994 ) $ — $ (1,994 ) $ — Fair value measurements at December 31, 2015 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (Level 1) (Level 2) (Level 3) Assets: Securities available for sale: U.S. government-sponsored agencies $ 19,542 $ — $ 19,542 $ — Obligations of states and political subdivisions 13,868 — 13,868 — Mortage-backed securities-residential 118,380 — 118,380 — Asset-backed securities 21,593 3,526 18,067 — Total securities available for sale $ 173,383 $ 3,526 $ 169,857 $ — Derivatives: Interest rate swaps - customer related $ 726 $ — $ 726 $ — Liabilities: Derivatives: Interest rate swaps - customer related $ (726 ) $ — $ (726 ) $ — Interest rate swaps - cash flow hedges (3,158 ) — (3,158 ) — Total derivatives $ (3,884 ) $ — $ (3,884 ) $ — |
Summary of Assets Measured at Fair Value on a Nonrecurring Basis | Assets measured at fair value on a nonrecurring basis are summarized below (in thousands): Fair value measurements at December 31, 2016 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (level 1) (level 2) (level 3) Assets: Impaired loans: Commercial and industrial $ 2,309 $ — $ — $ 2,309 Fair value measurements at December 31, 2015 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (level 1) (level 2) (level 3) Assets: Impaired loans: Commercial real estate $ 1,383 $ — $ — $ 1,383 Other real estate owned: Construction and land development 216 — — 216 |
Summary of Quantitative Information About Level 3 Fair Value Measurements for Assets Measured at Fair Value on a Non-recurring Basis | The following table presents quantitative information about Level 3 fair value measurements for assets measured at fair value on a nonrecurring basis at December 31, 2016 and 2015 (dollars in thousands): Range Fair Valuation Unobservable (Weighted- December 31, 2016 Value Technique(s) Input(s) Average) Impaired loans: Commercial and industrial $ 2,309 Sales comparison approach Appraisal discounts 25 % Range Fair Valuation Unobservable (Weighted- December 31, 2015 Value Technique(s) Input(s) Average) Impaired loans: Commercial real estate $ 1,383 Sales comparison approach Appraisal discounts 20 % Other real estate owned: Construction and land development 216 Sales comparison approach Appraisal discounts 15 % |
Summary of Carrying Value and Fair Values of the Bank's Financial Instruments | The carrying value and estimated fair values of the Company’s financial instruments at December 31, 2016 and 2015 were as follows (in thousands): December 31, 2016 December 31, 2015 Carrying Carrying amount Fair value amount Fair value Financial assets: Cash and due from banks, interest-bearing deposits in financial institutions $ 63,456 $ 63,456 $ 93,455 $ 93,455 Federal funds sold 16,654 16,654 6,730 6,730 Securities available for sale 182,355 182,355 173,383 173,383 Securities held to maturity 46,864 49,731 43,094 46,459 Loans held for sale 42,111 42,302 35,729 36,552 Restricted equity securities 6,032 N/A 5,414 N/A Loans, net 935,251 934,628 798,264 806,030 Accrued interest receivable 3,942 3,942 3,030 3,030 Bank owned life insurance 21,900 21,900 21,299 21,299 Other assets 460 460 726 726 Financial liabilities: Deposits 1,128,722 1,088,758 1,038,460 1,035,978 Securities sold under repurchase agreements — — 3,755 3,755 Federal Home Loan Bank advances 55,000 54,989 45,000 44,926 Accrued interest payable 212 212 177 177 Other liabilities 5,349 5,349 6,536 6,536 |
Parent Company Only Financial52
Parent Company Only Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet | Condensed Balance Sheet December 31, 2016 Assets Cash and cash equivalents $ 22,952,354 Investment in consolidated subsidiary 116,309,922 Total assets $ 139,262,276 Liabilities and Shareholders’ Equity Other liabilities $ 54,880 Total shareholders’ equity 139,207,396 Total liabilities and shareholders’ equity $ 139,262,276 |
Condensed Income Statement | Condensed Income Statement Year Ended December 31, 2016 Income - dividends from subsidiary $ 1,500,000 Expenses 741,691 Income before income taxes and equity in undistributed net income of subsidiary 758,309 Income tax benefit (258,528 ) Income before equity in undistributed net income of subsidiary 1,016,837 Equity in undistributed net income of subsidiary 7,366,019 Net income $ 8,382,856 |
Condensed Statement of Cash Flows | Condensed Statement of Cash Flows Year Ended December 31, 2016 Cash flows from operating activities: Net income $ 8,382,856 Adjustments to reconcile net income to net cash provided by operating activities: Increase in other liabilities 54,880 Excess tax benefit from stock compensation (61,217 ) Equity in undistributed net income of subsidiary (7,366,019 ) Net cash provided by operating activities 1,010,500 Cash flows from financing activities: Issuance of common stock 21,562,716 Exercise of common stock options and warrants, net of repurchase of restricted shares 317,921 Excess tax benefit from stock compensation 61,217 Net cash provided by financing activities 21,941,854 Net increase in cash and cash equivalents 22,952,354 Cash and cash equivalents at beginning of period — Cash and cash equivalents at end of period $ 22,952,354 |
Quarterly Financial Results (53
Quarterly Financial Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Results (Unaudited) | The following is a summary of quarterly financial results (unaudited) for 2016, 2015 and 2014: First Quarter Second Quarter Third Quarter Fourth Quarter 2016 Interest income $ 10,598,178 $ 10,914,739 $ 11,874,605 $ 12,007,234 Interest expense 1,641,903 1,713,584 1,749,090 1,826,961 Net interest income 8,956,275 9,201,155 10,125,515 10,180,273 Provision for loan and lease losses 937,216 182,863 1,638,669 69,884 Net interest income after provision for loan and lease losses 8,019,059 9,018,292 8,486,845 10,110,389 Noninterest income 2,370,772 2,568,192 3,191,463 2,954,021 Noninterest expense 8,009,741 7,950,794 8,526,805 8,641,506 Net income before income tax expense 2,380,090 3,635,690 3,151,504 4,422,904 Income tax expense 796,245 1,159,438 1,042,282 1,495,445 Net income $ 1,583,845 $ 2,476,252 $ 2,109,222 $ 2,927,460 Net income per share, basic $ 0.18 $ 0.29 $ 0.24 $ 0.26 Net income per share, diluted $ 0.15 $ 0.23 $ 0.20 $ 0.23 2015 Interest income $ 9,619,954 $ 9,809,759 $ 10,802,646 $ 10,271,373 Interest expense 1,450,101 1,460,851 1,385,632 1,433,927 Net interest income 8,169,853 8,348,908 9,417,015 8,837,446 Provision for loan and lease losses 135,675 585,000 580,000 350,000 Net interest income after provision for loan and lease losses 8,034,178 7,763,908 8,837,015 8,487,446 Noninterest income 1,911,804 2,418,890 2,634,659 1,918,157 Noninterest expense 7,718,367 7,331,488 8,603,899 7,323,020 Net income before income tax expense 2,227,615 2,851,311 2,867,774 3,082,583 Income tax expense 658,924 990,000 831,307 989,615 Net income $ 1,568,690 $ 1,861,310 $ 2,036,468 $ 2,092,968 Net income per share, basic $ 0.18 $ 0.22 $ 0.24 $ 0.24 Net income per share, diluted $ 0.15 $ 0.18 $ 0.20 $ 0.20 2014 Interest income $ 9,204,274 $ 9,308,583 $ 9,478,772 $ 10,295,115 Interest expense 1,492,690 1,414,085 1,462,025 1,502,095 Net interest income 7,711,584 7,894,498 8,016,747 8,793,020 Provision for loan and lease losses 113,369 586,500 0 3,168,986 Net interest income after provision for loan and lease losses 7,598,215 7,307,998 8,016,747 5,624,034 Noninterest income 1,109,505 1,873,777 2,557,692 1,878,269 Noninterest expense 6,977,181 7,633,590 7,373,935 6,577,399 Net income before income tax expense 1,730,539 1,548,185 3,200,504 924,903 Income tax expense 540,562 509,403 1,128,460 233,961 Net income $ 1,189,976 $ 1,038,782 $ 2,072,044 $ 690,942 Net income per share, basic $ 0.14 $ 0.12 $ 0.24 $ 0.08 Net income per share, diluted $ 0.12 $ 0.10 $ 0.20 $ 0.07 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - Additional Information (Details) | Sep. 27, 2016USD ($)shares | Dec. 31, 2016USD ($)Securityshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares |
Summary Of Significant Accounting Policies [Line Items] | ||||
Date of acquisition | Feb. 5, 2016 | |||
Cashless exercise | 250,000 | |||
Number of Securities | Security | 3 | |||
Accrual of interest on loans due discontinued period | 90 days | |||
Minimum loan losses exposure for formal credit review | $ | $ 1,500,000 | |||
Look-back period | 28 quarters | 24 quarter | ||
Deferred liability, operating lease rentals | $ | $ 161,000 | |||
Income tax examination description | A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. | |||
Tax benefit from income tax examination | $ | $ 0 | |||
Advertising expense | $ | 252,000 | $ 310,000 | $ 460,000 | |
Restricted balance of cash reserve with Federal Reserve Bank | $ | $ 40,902,000 | $ 27,105,000 | ||
Antidilutive stock options excluded from diluted earnings per share | 0 | 203,000 | 133,000 | |
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Premises and equipment, useful lives | 3 years | |||
Income tax benefit recognized percentage | 50.00% | |||
Minimum | Core Deposit | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Intangible assets, useful lives | 5 years | |||
Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Premises and equipment, useful lives | 39 years | |||
Maximum | Core Deposit | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Intangible assets, useful lives | 6 years | |||
Consumer Loan | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Accrual of interest on loans due charged off | 180 days | |||
Common Stock | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Issuance of common stock, shares | 1,688,049 | |||
Exercise of common stock warrants, shares | 100,023 | |||
Initial Public Offering | Common Stock | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Issuance of common stock, shares | 2,972,750 | |||
Preferred shares converted to common stock | 731,707 | |||
Net proceeds from issuance | $ | $ 21,600,000 | |||
Initial Public Offering by the Company | Common Stock | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Issuance of common stock, shares | 1,688,049 | |||
Initial Public Offering by certain selling shareholders | Common Stock | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Issuance of common stock, shares | 1,284,701 | |||
Preferred shares converted to common stock | 731,707 | |||
Cashless exercise | 79,166 | |||
Exercise of common stock warrants, shares | 250,000 | |||
Net proceeds from issuance | $ | $ 0 |
Summary of Significant Accoun55
Summary of Significant Accounting Policies - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Basic net income per share calculation: | |||||||||||||||
Numerator – Net income | $ 9,096,778 | $ 7,559,436 | $ 4,991,744 | ||||||||||||
Denominator – Average shares of common stock outstanding | 9,328,236 | 8,538,970 | 8,456,386 | ||||||||||||
Basic net income per share of common stock | $ 0.26 | $ 0.24 | $ 0.29 | $ 0.18 | $ 0.24 | $ 0.24 | $ 0.22 | $ 0.18 | $ 0.08 | $ 0.24 | $ 0.12 | $ 0.14 | $ 0.98 | $ 0.89 | $ 0.59 |
Diluted net income per share calculation: | |||||||||||||||
Numerator – Net income | $ 9,096,778 | $ 7,559,436 | $ 4,991,744 | ||||||||||||
Denominator – Average shares of common stock outstanding | 9,328,236 | 8,538,970 | 8,456,386 | ||||||||||||
Dilutive shares contingently issuable | 1,883,790 | 1,842,925 | 1,824,658 | ||||||||||||
Average diluted shares of common stock outstanding | 11,212,026 | 10,381,895 | 10,281,044 | ||||||||||||
Diluted net income per share of common stock | $ 0.23 | $ 0.20 | $ 0.23 | $ 0.15 | $ 0.20 | $ 0.20 | $ 0.18 | $ 0.15 | $ 0.07 | $ 0.20 | $ 0.10 | $ 0.12 | $ 0.81 | $ 0.73 | $ 0.49 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) | Feb. 03, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 6,218,867 | $ 6,218,867 | $ 6,219,000 | |
Farmington | ||||
Business Acquisition [Line Items] | ||||
Total consideration | $ 6,354,000 | |||
Goodwill | 6,168,000 | |||
Goodwill expected to be deductible for income taxes purposes | $ 4,000,000 | |||
Contingent consideration earn out period | 5 years | |||
Total contingent consideration payable, low | $ 2,000,000 | |||
Total contingent consideration payable, high | $ 4,200,000 |
Business Combinations - Summary
Business Combinations - Summary of Consideration Paid for Farmington and Amounts of Assets Acquired and Liabilities Assumed (Details) - USD ($) | Feb. 03, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 |
Consideration: | ||||
Cash | $ 3,000,000 | |||
Fair value of liabilities assumed: | ||||
Goodwill | $ 6,219,000 | $ 6,218,867 | $ 6,218,867 | |
Farmington | ||||
Consideration: | ||||
Cash | $ 3,000,000 | |||
Equity instruments | 1,148,000 | |||
Contingent consideration | 2,206,000 | |||
Fair value of total consideration transferred | 6,354,000 | |||
Fair value of assets acquired: | ||||
Loans held for sale | 4,111,000 | |||
Premises and equipment | 102,000 | |||
Total assets acquired | 4,213,000 | |||
Fair value of liabilities assumed: | ||||
Warehouse line of credit | 3,996,000 | |||
Other liabilities | 31,000 | |||
Total liabilities assumed | 4,027,000 | |||
Total identifiable net assets acquired | 186,000 | |||
Goodwill | 6,168,000 | |||
Net assets acquired | $ 6,354,000 |
Investment Securities - Summary
Investment Securities - Summary of Company's Classification of Securities (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Securities available for sale [Abstract] | ||
Amortized Cost | $ 186,254,000 | $ 175,980,000 |
Gross unrealized gains | 82,000 | 128,000 |
Gross unrealized (losses) | (3,981,000) | (2,725,000) |
Securities available for sale, at fair value | 182,354,987 | 173,382,957 |
Securities held to maturity [Abstract] | ||
Amortized Cost | 46,864,000 | 43,094,000 |
Gross unrealized gains | 2,874,000 | 3,365,000 |
Gross unrealized (losses) | (7,000) | |
Estimated fair value | 49,731,169 | 46,458,841 |
U. S. government agency securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 9,517,000 | 19,562,000 |
Gross unrealized gains | 16,000 | |
Gross unrealized (losses) | (143,000) | (36,000) |
Securities available for sale, at fair value | 9,374,000 | 19,542,000 |
State and municipal securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 28,480,000 | 13,776,000 |
Gross unrealized gains | 65,000 | 99,000 |
Gross unrealized (losses) | (632,000) | (7,000) |
Securities available for sale, at fair value | 27,913,000 | 13,868,000 |
Securities held to maturity [Abstract] | ||
Amortized Cost | 36,842,000 | 37,005,000 |
Gross unrealized gains | 2,784,000 | 3,245,000 |
Estimated fair value | 39,626,000 | 40,250,000 |
Mortgage-backed securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 126,637,000 | 119,828,000 |
Gross unrealized gains | 17,000 | 13,000 |
Gross unrealized (losses) | (2,059,000) | (1,461,000) |
Securities available for sale, at fair value | 124,595,000 | 118,380,000 |
Securities held to maturity [Abstract] | ||
Amortized Cost | 4,687,000 | 6,089,000 |
Gross unrealized gains | 79,000 | 120,000 |
Estimated fair value | 4,766,000 | 6,209,000 |
Asset-backed securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 21,620,000 | 22,814,000 |
Gross unrealized (losses) | (1,147,000) | (1,221,000) |
Securities available for sale, at fair value | 20,473,000 | $ 21,593,000 |
Other debt securities | ||
Securities held to maturity [Abstract] | ||
Amortized Cost | 5,335,000 | |
Gross unrealized gains | 11,000 | |
Gross unrealized (losses) | (7,000) | |
Estimated fair value | $ 5,339,000 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Available for sale securities transferred to held to maturity | $ 36,789,000 | ||
Securities Other Than U S Government and Agencies | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Holdings of securities of any one issuer greater than ten percent of stockholder's equity | $ 0 | $ 0 | |
Public Deposits, Securities Sold Under Repurchase Agreements, Derivative Positions and Federal Home Loan Bank Advances | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Carrying value of securities | $ 133,297,000 | $ 146,921,000 |
Investment Securities - Summa60
Investment Securities - Summary of Amortized Cost and Fair Value of Debt and Equity Securities by Contractual Maturity (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-sale, Amortized cost [Abstract] | ||
Due one to five years | $ 11,425,000 | |
Due five to ten years | 21,077,000 | |
Due beyond ten years | 5,495,000 | |
Mortgage-backed securities | 126,637,000 | |
Asset-backed securities | 21,620,000 | |
Amortized cost | 186,254,000 | |
Available-for-sale, Estimated fair value [Abstract] | ||
Due one to five years | 11,319,000 | |
Due five to ten years | 20,841,000 | |
Due beyond ten years | 5,127,000 | |
Mortgage-backed securities | 124,595,000 | |
Asset-backed securities | 20,473,000 | |
Estimated fair value | 182,355,000 | |
Held-to-maturity, Amortized cost [Abstract] | ||
Due one to five years | 17,628,000 | |
Due five to ten years | 16,732,000 | |
Due beyond ten years | 7,817,000 | |
Mortgage-backed securities | 4,687,000 | |
Amortized Cost | 46,864,000 | $ 43,094,000 |
Securities held to maturity [Abstract] | ||
Due one to five years | 18,500,000 | |
Due five to ten years | 17,761,000 | |
Due beyond ten years | 8,704,000 | |
Mortgage-backed securities | 4,766,000 | |
Estimated fair value | $ 49,731,169 | $ 46,458,841 |
Investment Securities - Summa61
Investment Securities - Summary of Sale of Debt and Equity Securities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Available for sale: | |||
Proceeds from sales of securities | $ 46,700,357 | $ 90,445,352 | $ 161,603,143 |
Gross realized gains | 244,000 | 261,000 | 520,000 |
Gross realized losses | $ (123,000) | $ (206,000) | $ (507,000) |
Investment Securities - Summa62
Investment Securities - Summary of Securities with Unrealized Losses Aggregated by Major Security Type and Length of Time in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | $ 142,245 | $ 113,353 |
Less than 12 months, Gross unrealized (losses) | (2,737) | (1,111) |
12 months or more, Estimated fair value | 24,623 | 37,853 |
12 months or more, Gross unrealized losses | (1,251) | (1,614) |
Total, Estimated fair value | 166,868 | 151,206 |
Total, Gross unrealized losses | (3,988) | (2,725) |
U. S. government agency securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | 9,374 | 13,100 |
Less than 12 months, Gross unrealized (losses) | (143) | (36) |
Total, Estimated fair value | 9,374 | 13,100 |
Total, Gross unrealized losses | (143) | (36) |
State and municipal securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | 20,279 | 3,099 |
Less than 12 months, Gross unrealized (losses) | (632) | (7) |
Total, Estimated fair value | 20,279 | 3,099 |
Total, Gross unrealized losses | (632) | (7) |
Mortgage-backed securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | 110,563 | 97,154 |
Less than 12 months, Gross unrealized (losses) | (1,955) | (1,068) |
12 months or more, Estimated fair value | 4,150 | 16,260 |
12 months or more, Gross unrealized losses | (104) | (393) |
Total, Estimated fair value | 114,713 | 113,414 |
Total, Gross unrealized losses | (2,059) | (1,461) |
Asset-backed securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
12 months or more, Estimated fair value | 20,473 | 21,593 |
12 months or more, Gross unrealized losses | (1,147) | (1,221) |
Total, Estimated fair value | 20,473 | 21,593 |
Total, Gross unrealized losses | (1,147) | $ (1,221) |
Other debt securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | 2,029 | |
Less than 12 months, Gross unrealized (losses) | (7) | |
Total, Estimated fair value | 2,029 | |
Total, Gross unrealized losses | $ (7) |
Loans and Allowance for Loan 63
Loans and Allowance for Loan And Lease Losses - Summary of Loans (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | $ 936,218,000 | $ 809,811,000 | $ 714,591,000 | |
Less net unearned income | (967,000) | (1,415,000) | ||
Loans and leases , net of unearned income | 935,250,703 | 808,396,064 | ||
Less allowance for loan and lease losses | (11,633,531) | (10,131,729) | (11,282,000) | $ (8,459,000) |
Loans, net | 923,617,172 | 798,264,335 | ||
Commercial real estate | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | 302,322,000 | 251,197,000 | 219,793,000 | |
Less allowance for loan and lease losses | (2,655,000) | (2,879,000) | (1,535,000) | (1,408,000) |
Consumer real estate | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | 97,015,000 | 93,785,000 | 77,688,000 | |
Less allowance for loan and lease losses | (1,013,000) | (968,000) | (621,000) | (688,000) |
Construction and land development | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | 94,491,000 | 52,522,000 | 46,193,000 | |
Less allowance for loan and lease losses | (1,574,000) | (914,000) | (408,000) | (332,000) |
Commercial and industrial | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | 379,620,000 | 353,442,000 | 333,613,000 | |
Less allowance for loan and lease losses | (5,618,000) | (4,693,000) | (8,540,000) | (5,870,000) |
Consumer | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | 5,974,000 | 8,668,000 | 7,911,000 | |
Less allowance for loan and lease losses | (76,000) | (103,000) | (75,000) | (81,000) |
Other | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | 56,796,000 | 50,197,000 | 29,393,000 | |
Less allowance for loan and lease losses | $ (698,000) | $ (575,000) | $ (103,000) | $ (80,000) |
Loans and Allowance for Loan 64
Loans and Allowance for Loan And Lease Losses - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Loans And Leases Receivable Disclosure [Line Items] | |||
Variable-rate loans | $ 546,848,000 | $ 401,800,000 | |
Fixed-rate loans | 389,370,000 | 408,011,000 | |
Minimum loan amount for loans analyzed by credit risk | 500,000 | ||
Total loans | 936,218,000 | 809,811,000 | $ 714,591,000 |
Loans past due not on nonaccrual status | 0 | 0 | |
Investments in TDR | 1,300,000 | 100,000 | |
Additional commitments related to TDR | 0 | 0 | |
Allowance for loan and lease losses, charge-off | $ 1,452,000 | 3,206,000 | 1,147,000 |
Loan period considered as payment default | 30 days | ||
Loss on purchase of loan | $ 0 | 173,000,000 | |
Minimum | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Lease term | 2 years | ||
Maximum | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Lease term | 6 years | ||
Consumer | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Total loans | $ 5,974,000 | 8,668,000 | 7,911,000 |
Allowance for loan and lease losses, specific reserve | 0 | ||
Allowance for loan and lease losses, charge-off | 146,000 | 182,000 | |
Subsequent default TDR charge-off | 100,000 | ||
Commercial and industrial | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Total loans | 379,620,000 | 353,442,000 | 333,613,000 |
Allowance for loan and lease losses, specific reserve | 2,400,000 | ||
Allowance for loan and lease losses, charge-off | 956,000 | 3,033,000 | $ 816,000 |
Subsequent default TDR charge-off | 2,500,000 | ||
Doubtful | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Total loans | $ 0 | $ 0 |
Loans and Allowance for Loan 65
Loans and Allowance for Loan And Lease Losses - Summary of Risk Category of Loans by Applicable Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | $ 936,218 | $ 809,811 | $ 714,591 |
Total Impaired Loans | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 3,619 | 2,677 | |
Commercial real estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 302,322 | 251,197 | 219,793 |
Commercial real estate | Total Impaired Loans | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 1,310 | 1,948 | |
Consumer real estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 97,015 | 93,785 | 77,688 |
Consumer real estate | Total Impaired Loans | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 604 | ||
Construction and land development | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 94,491 | 52,522 | 46,193 |
Commercial and industrial | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 379,620 | 353,442 | 333,613 |
Commercial and industrial | Total Impaired Loans | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 2,309 | ||
Consumer | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 5,974 | 8,668 | 7,911 |
Consumer | Total Impaired Loans | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 125 | ||
Other | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 56,796 | 50,197 | $ 29,393 |
Performing Loans | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 932,599 | 807,134 | |
Performing Loans | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 904,836 | 791,798 | |
Performing Loans | Special Mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 11,035 | 6,230 | |
Performing Loans | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 16,728 | 9,106 | |
Performing Loans | Commercial real estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 301,012 | 249,249 | |
Performing Loans | Commercial real estate | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 301,012 | 249,249 | |
Performing Loans | Consumer real estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 97,015 | 93,181 | |
Performing Loans | Consumer real estate | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 96,722 | 93,181 | |
Performing Loans | Consumer real estate | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 293 | ||
Performing Loans | Construction and land development | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 94,491 | 52,522 | |
Performing Loans | Construction and land development | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 94,491 | 52,522 | |
Performing Loans | Commercial and industrial | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 377,311 | 353,442 | |
Performing Loans | Commercial and industrial | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 349,857 | 338,106 | |
Performing Loans | Commercial and industrial | Special Mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 11,035 | 6,230 | |
Performing Loans | Commercial and industrial | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 16,419 | 9,106 | |
Performing Loans | Consumer | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 5,974 | 8,543 | |
Performing Loans | Consumer | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 5,958 | 8,543 | |
Performing Loans | Consumer | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 16 | ||
Performing Loans | Other | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 56,796 | 50,197 | |
Performing Loans | Other | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | $ 56,796 | $ 50,197 |
Loans and Allowance for Loan 66
Loans and Allowance for Loan and Lease Losses - Summary of Changes in Allowance for Loan Losses by Loan Classification (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Loan and Lease Losses: | |||||||||||||||
Beginning Balance | $ 10,131,729 | $ 11,282,000 | $ 8,459,000 | $ 10,131,729 | $ 11,282,000 | $ 8,459,000 | |||||||||
Charged-off loans | (1,452,000) | (3,206,000) | (1,147,000) | ||||||||||||
Recoveries | 125,000 | 405,000 | 101,000 | ||||||||||||
Provision for loan and lease losses | $ 69,884 | $ 1,638,669 | $ 182,863 | 937,216 | $ 350,000 | $ 580,000 | $ 585,000 | 135,675 | $ 3,168,986 | $ 0 | $ 586,500 | 113,369 | 2,828,633 | 1,650,675 | 3,868,855 |
Ending Balance | 11,633,531 | 10,131,729 | 11,282,000 | 11,633,531 | 10,131,729 | 11,282,000 | |||||||||
Collectively evaluated for impairment | 11,134,000 | 9,567,000 | 8,251,000 | 11,134,000 | 9,567,000 | 8,251,000 | |||||||||
Individually evaluated for impairment | 500,000 | 565,000 | 2,858,000 | 500,000 | 565,000 | 2,858,000 | |||||||||
Loans: | |||||||||||||||
Collectively evaluated for impairment | 932,599,000 | 807,134,000 | 706,853,000 | 932,599,000 | 807,134,000 | 706,853,000 | |||||||||
Individually evaluated for impairment | 3,619,000 | 2,677,000 | 6,563,000 | 3,619,000 | 2,677,000 | 6,563,000 | |||||||||
Ending Balance | 936,218,000 | 809,811,000 | 714,591,000 | 936,218,000 | 809,811,000 | 714,591,000 | |||||||||
Receivables Acquired with Deteriorated Credit Quality | |||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 173,000 | 0 | 0 | 173,000 | |||||||||
Loans: | |||||||||||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 1,175,000 | 0 | 0 | 1,175,000 | |||||||||
Commercial real estate | |||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||
Beginning Balance | 2,879,000 | 1,535,000 | 1,408,000 | 2,879,000 | 1,535,000 | 1,408,000 | |||||||||
Charged-off loans | (350,000) | (92,000) | |||||||||||||
Recoveries | 52,000 | 31,000 | |||||||||||||
Provision for loan and lease losses | 74,000 | 1,313,000 | 219,000 | ||||||||||||
Ending Balance | 2,655,000 | 2,879,000 | 1,535,000 | 2,655,000 | 2,879,000 | 1,535,000 | |||||||||
Collectively evaluated for impairment | 2,655,000 | 2,314,000 | 1,250,000 | 2,655,000 | 2,314,000 | 1,250,000 | |||||||||
Individually evaluated for impairment | 0 | 565,000 | 285,000 | 0 | 565,000 | 285,000 | |||||||||
Loans: | |||||||||||||||
Collectively evaluated for impairment | 301,012,000 | 249,249,000 | 217,628,000 | 301,012,000 | 249,249,000 | 217,628,000 | |||||||||
Individually evaluated for impairment | 1,310,000 | 1,948,000 | 2,165,000 | 1,310,000 | 1,948,000 | 2,165,000 | |||||||||
Ending Balance | 302,322,000 | 251,197,000 | 219,793,000 | 302,322,000 | 251,197,000 | 219,793,000 | |||||||||
Commercial real estate | Receivables Acquired with Deteriorated Credit Quality | |||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Loans: | |||||||||||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Consumer real estate | |||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||
Beginning Balance | 968,000 | 621,000 | 688,000 | 968,000 | 621,000 | 688,000 | |||||||||
Charged-off loans | (173,000) | (57,000) | |||||||||||||
Recoveries | 68,000 | 21,000 | |||||||||||||
Provision for loan and lease losses | 45,000 | 452,000 | (31,000) | ||||||||||||
Ending Balance | 1,013,000 | 968,000 | 621,000 | 1,013,000 | 968,000 | 621,000 | |||||||||
Collectively evaluated for impairment | 1,013,000 | 968,000 | 448,000 | 1,013,000 | 968,000 | 448,000 | |||||||||
Individually evaluated for impairment | 0 | 173,000 | 0 | 173,000 | |||||||||||
Loans: | |||||||||||||||
Collectively evaluated for impairment | 97,015,000 | 93,181,000 | 77,056,000 | 97,015,000 | 93,181,000 | 77,056,000 | |||||||||
Individually evaluated for impairment | 604,000 | 592,000 | 604,000 | 592,000 | |||||||||||
Ending Balance | 97,015,000 | 93,785,000 | 77,688,000 | 97,015,000 | 93,785,000 | 77,688,000 | |||||||||
Consumer real estate | Receivables Acquired with Deteriorated Credit Quality | |||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Loans: | |||||||||||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 40,000 | 0 | 0 | 40,000 | |||||||||
Construction and land development | |||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||
Beginning Balance | 914,000 | 408,000 | 332,000 | 914,000 | 408,000 | 332,000 | |||||||||
Provision for loan and lease losses | 660,000 | 506,000 | 76,000 | ||||||||||||
Ending Balance | 1,574,000 | 914,000 | 408,000 | 1,574,000 | 914,000 | 408,000 | |||||||||
Collectively evaluated for impairment | 1,574,000 | 914,000 | 235,000 | 1,574,000 | 914,000 | 235,000 | |||||||||
Individually evaluated for impairment | 0 | 0 | |||||||||||||
Loans: | |||||||||||||||
Collectively evaluated for impairment | 94,491,000 | 52,522,000 | 45,058,000 | 94,491,000 | 52,522,000 | 45,058,000 | |||||||||
Ending Balance | 94,491,000 | 52,522,000 | 46,193,000 | 94,491,000 | 52,522,000 | 46,193,000 | |||||||||
Construction and land development | Receivables Acquired with Deteriorated Credit Quality | |||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 173,000 | 0 | 0 | 173,000 | |||||||||
Loans: | |||||||||||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 1,135,000 | 0 | 0 | 1,135,000 | |||||||||
Commercial and industrial | |||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||
Beginning Balance | 4,693,000 | 8,540,000 | 5,870,000 | 4,693,000 | 8,540,000 | 5,870,000 | |||||||||
Charged-off loans | (956,000) | (3,033,000) | (816,000) | ||||||||||||
Recoveries | 23,000 | 299,000 | 52,000 | ||||||||||||
Provision for loan and lease losses | 1,858,000 | (1,113,000) | 3,434,000 | ||||||||||||
Ending Balance | 5,618,000 | 4,693,000 | 8,540,000 | 5,618,000 | 4,693,000 | 8,540,000 | |||||||||
Collectively evaluated for impairment | 5,118,000 | 4,693,000 | 6,140,000 | 5,118,000 | 4,693,000 | 6,140,000 | |||||||||
Individually evaluated for impairment | 500,000 | 2,400,000 | 500,000 | 2,400,000 | |||||||||||
Loans: | |||||||||||||||
Collectively evaluated for impairment | 377,311,000 | 353,442,000 | 329,807,000 | 377,311,000 | 353,442,000 | 329,807,000 | |||||||||
Individually evaluated for impairment | 2,309,000 | 3,806,000 | 2,309,000 | 3,806,000 | |||||||||||
Ending Balance | 379,620,000 | 353,442,000 | 333,613,000 | 379,620,000 | 353,442,000 | 333,613,000 | |||||||||
Commercial and industrial | Receivables Acquired with Deteriorated Credit Quality | |||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Loans: | |||||||||||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Consumer | |||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||
Beginning Balance | 103,000 | 75,000 | 81,000 | 103,000 | 75,000 | 81,000 | |||||||||
Charged-off loans | (146,000) | (182,000) | |||||||||||||
Recoveries | 50,000 | 7,000 | 28,000 | ||||||||||||
Provision for loan and lease losses | 69,000 | 21,000 | 148,000 | ||||||||||||
Ending Balance | 76,000 | 103,000 | 75,000 | 76,000 | 103,000 | 75,000 | |||||||||
Collectively evaluated for impairment | 76,000 | 103,000 | 75,000 | 76,000 | 103,000 | 75,000 | |||||||||
Individually evaluated for impairment | 0 | 0 | |||||||||||||
Loans: | |||||||||||||||
Collectively evaluated for impairment | 5,974,000 | 8,543,000 | 7,911,000 | 5,974,000 | 8,543,000 | 7,911,000 | |||||||||
Individually evaluated for impairment | 125,000 | 125,000 | |||||||||||||
Ending Balance | 5,974,000 | 8,668,000 | 7,911,000 | 5,974,000 | 8,668,000 | 7,911,000 | |||||||||
Consumer | Receivables Acquired with Deteriorated Credit Quality | |||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Loans: | |||||||||||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Other | |||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||
Beginning Balance | $ 575,000 | $ 103,000 | $ 80,000 | 575,000 | 103,000 | 80,000 | |||||||||
Provision for loan and lease losses | 123,000 | 472,000 | 23,000 | ||||||||||||
Ending Balance | 698,000 | 575,000 | 103,000 | 698,000 | 575,000 | 103,000 | |||||||||
Collectively evaluated for impairment | 698,000 | 575,000 | 103,000 | 698,000 | 575,000 | 103,000 | |||||||||
Individually evaluated for impairment | 0 | 0 | |||||||||||||
Loans: | |||||||||||||||
Collectively evaluated for impairment | 56,796,000 | 50,197,000 | 29,393,000 | 56,796,000 | 50,197,000 | 29,393,000 | |||||||||
Ending Balance | 56,796,000 | 50,197,000 | 29,393,000 | 56,796,000 | 50,197,000 | 29,393,000 | |||||||||
Other | Receivables Acquired with Deteriorated Credit Quality | |||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Loans: | |||||||||||||||
Loans acquired with deteriorated credit quality | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan 67
Loans and Allowance for Loan and Lease Losses - Allocation of ALLL with Corresponding Percentage of Loans in Each Category to Total Loans, Net of Deferred Fee (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 11,633,531 | $ 10,131,729 | $ 11,282,000 | $ 8,459,000 |
Allowance for loan and lease losses, Percentage of total loans, net of deferred fees | 1.24% | 1.25% | ||
Commercial real estate | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 2,655,000 | $ 2,879,000 | 1,535,000 | 1,408,000 |
Allowance for loan and lease losses, Percentage of total loans, net of deferred fees | 0.28% | 0.36% | ||
Consumer real estate | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 1,013,000 | $ 968,000 | 621,000 | 688,000 |
Allowance for loan and lease losses, Percentage of total loans, net of deferred fees | 0.11% | 0.12% | ||
Construction and land development | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 1,574,000 | $ 914,000 | 408,000 | 332,000 |
Allowance for loan and lease losses, Percentage of total loans, net of deferred fees | 0.17% | 0.11% | ||
Commercial and industrial | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 5,618,000 | $ 4,693,000 | 8,540,000 | 5,870,000 |
Allowance for loan and lease losses, Percentage of total loans, net of deferred fees | 0.60% | 0.58% | ||
Consumer | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 76,000 | $ 103,000 | 75,000 | 81,000 |
Allowance for loan and lease losses, Percentage of total loans, net of deferred fees | 0.01% | 0.01% | ||
Other | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 698,000 | $ 575,000 | $ 103,000 | $ 80,000 |
Allowance for loan and lease losses, Percentage of total loans, net of deferred fees | 0.07% | 0.07% |
Loans and Allowance for Loan 68
Loans and Allowance for Loan and Lease Losses - Summary of Information Related to Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | $ 1,310 | $ 729 |
Impaired loans with no related allowance recorded, Unpaid principal balance | 1,686 | 806 |
Impaired loans with an allowance recorded, Related allowance | 500 | 565 |
Impaired loans with no related allowance recorded, Average recorded investment | 1,020 | 1,056 |
Impaired loans with no related allowance recorded, Interest income recognized | 5 | |
Impaired loans with an allowance recorded, Recorded investment | 2,309 | 1,948 |
Impaired loans with an allowance recorded, Unpaid principal balance | 2,921 | 1,948 |
Impaired loans with an allowance recorded, Average recorded investment | 2,129 | 4,154 |
Impaired loans with an allowance recorded, Interest income recognized | 44 | |
Recorded investment | 3,619 | 2,677 |
Unpaid principal balance | 4,607 | 2,754 |
Average recorded investment | 3,148 | 5,210 |
Interest income recognized | 44 | 5 |
Commercial real estate | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 1,310 | |
Impaired loans with no related allowance recorded, Unpaid principal balance | 1,686 | |
Impaired loans with an allowance recorded, Related allowance | 565 | |
Impaired loans with no related allowance recorded, Average recorded investment | 655 | 42 |
Impaired loans with an allowance recorded, Recorded investment | 1,948 | |
Impaired loans with an allowance recorded, Unpaid principal balance | 1,948 | |
Impaired loans with an allowance recorded, Average recorded investment | 974 | 2,015 |
Consumer real estate | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 604 | |
Impaired loans with no related allowance recorded, Unpaid principal balance | 681 | |
Impaired loans with no related allowance recorded, Average recorded investment | 302 | 357 |
Impaired loans with an allowance recorded, Average recorded investment | 262 | |
Construction and land development | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with an allowance recorded, Average recorded investment | 568 | |
Commercial and industrial | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with an allowance recorded, Related allowance | 500 | |
Impaired loans with no related allowance recorded, Average recorded investment | 594 | |
Impaired loans with an allowance recorded, Recorded investment | 2,309 | |
Impaired loans with an allowance recorded, Unpaid principal balance | 2,921 | |
Impaired loans with an allowance recorded, Average recorded investment | 1,155 | 1,309 |
Impaired loans with an allowance recorded, Interest income recognized | 44 | |
Consumer | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 125 | |
Impaired loans with no related allowance recorded, Unpaid principal balance | 125 | |
Impaired loans with no related allowance recorded, Average recorded investment | $ 63 | 63 |
Impaired loans with no related allowance recorded, Interest income recognized | $ 5 |
Loans and Allowance for Loan 69
Loans and Allowance for Loan and Lease Losses - Schedule of Aging of Recorded Investment in Past-due Loans, by Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | $ 363 | $ 2,843 | |
Loans Not Past Due | 935,855 | 806,968 | |
Total | 936,218 | 809,811 | $ 714,591 |
Commercial real estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,948 | ||
Loans Not Past Due | 302,322 | 249,249 | |
Total | 302,322 | 251,197 | 219,793 |
Consumer real estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 363 | 770 | |
Loans Not Past Due | 96,652 | 93,015 | |
Total | 97,015 | 93,785 | 77,688 |
Construction and land development | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Loans Not Past Due | 94,491 | 52,522 | |
Total | 94,491 | 52,522 | 46,193 |
Commercial and industrial | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Loans Not Past Due | 379,620 | 353,442 | |
Total | 379,620 | 353,442 | 333,613 |
Consumer | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 125 | ||
Loans Not Past Due | 5,974 | 8,543 | |
Total | 5,974 | 8,668 | 7,911 |
Other | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Loans Not Past Due | 56,796 | 50,197 | |
Total | 56,796 | 50,197 | $ 29,393 |
30 - 59 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 81 | 100 | |
30 - 59 Days Past Due [Member] | Consumer real estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 81 | 100 | |
60 - 89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 282 | 54 | |
60 - 89 Days Past Due [Member] | Consumer real estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | $ 282 | 54 | |
Greater than 89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 2,689 | ||
Greater than 89 Days Past Due [Member] | Commercial real estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,948 | ||
Greater than 89 Days Past Due [Member] | Consumer real estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 616 | ||
Greater than 89 Days Past Due [Member] | Consumer | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | $ 125 |
Loans and Allowance for Loan 70
Loans and Allowance for Loan and Lease Losses - Schedule of Non-Accrual Loans and Troubled Debt Restructurings (TDR) by Class of Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | $ 3,619 | $ 2,689 |
Troubled Debt Restructurings | 1,272 | 125 |
Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 1,310 | 1,948 |
Troubled Debt Restructurings | 1,272 | |
Consumer real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 616 | |
Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | $ 2,309 | |
Consumer | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 125 | |
Troubled Debt Restructurings | $ 125 |
Loans and Allowance for Loan 71
Loans and Allowance for Loan And Lease Losses - Schedule of Presents Loans by Class Modified as TDR (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Contract | Dec. 31, 2015USD ($)Contract | |
Financing Receivable Modifications [Line Items] | ||
Number of contracts | Contract | 1 | 1 |
Pre modification outstanding recorded investment | $ 1,948 | $ 125 |
Post modification outstanding recorded investment, net of related allowance | $ 1,170 | $ 125 |
Commercial real estate | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | Contract | 1 | |
Pre modification outstanding recorded investment | $ 1,948 | |
Post modification outstanding recorded investment, net of related allowance | $ 1,170 | |
Consumer | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | Contract | 1 | |
Pre modification outstanding recorded investment | $ 125 | |
Post modification outstanding recorded investment, net of related allowance | $ 125 |
Loans and Allowance for Loan 72
Loans and Allowance for Loan and Lease Losses - Schedule of Loans by Class Modified as TDR for the Payment Default Within Twelve Months(Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Contract | Dec. 31, 2015Contract | |
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 1 | 1 |
Recorded investment | $ | $ 124 | |
Commercial and industrial | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 1 | |
Consumer | ||
Financing Receivable Modifications [Line Items] | ||
Number of contracts | 1 | |
Recorded investment | $ | $ 124 |
Loans and Allowance for Loan 73
Loans and Allowance for Loan and Lease Losses - Schedule of Accretable Yield or Income Expected to be Collected (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | ||
Beginning balance | $ (190) | $ (297) |
Accretion of income | 499 | 255 |
Reclassifications from nonaccretable difference | $ (309) | (148) |
Ending balance | $ (190) |
Loans and Allowance for Loan 74
Loans and Allowance for Loan And Lease Losses - Schedule of Components of Direct Financing Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Leases [Abstract] | ||
Total minimum lease payments receivable | $ 2,567 | $ 5,215 |
Less: Unearned income | (96) | (321) |
Net leases | $ 2,471 | $ 4,894 |
Loans and Allowance for Loan 75
Loans and Allowance for Loan and Lease Losses - Summary of Future Minimum Lease Payments Receivable under Direct Financing Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Leases [Abstract] | ||
2,017 | $ 1,877 | |
2,018 | 332 | |
2,019 | 303 | |
2,020 | 55 | |
Future minimum lease payments receivable | $ 2,567 | $ 5,215 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 8,766,000 | $ 8,272,000 |
Less accumulated depreciation and amortization | (3,416,000) | (3,376,000) |
Premises and equipment, net | $ 5,350,226 | 4,896,447 |
Minimum | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, useful lives | 3 years | |
Maximum | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, useful lives | 39 years | |
Buildings | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, useful lives | 39 years | |
Premises and equipment, gross | $ 3,586,000 | 3,586,000 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 1,171,000 | 1,174,000 |
Leasehold improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, useful lives | 2 years | |
Leasehold improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, useful lives | 10 years | |
Furniture and equipment | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 2,055,000 | 2,332,000 |
Furniture and equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, useful lives | 3 years | |
Furniture and equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, useful lives | 7 years | |
Land | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 1,180,000 | $ 1,180,000 |
Leasehold improvements in process | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 774,000 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | $ 422,478 | $ 505,520 | $ 625,040 |
Noncancelable lease arrangements | |||
Property Plant And Equipment [Line Items] | |||
Lease extension maturity period | 2,028 | ||
Rent expenses related to leases | $ 1,016,000 | $ 1,018,000 | $ 994,000 |
Premises and Equipment - Summ78
Premises and Equipment - Summary of Future Minimum Payments under Operating Leases (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Property Plant And Equipment [Abstract] | |
2,017 | $ 868 |
2,018 | 1,179 |
2,019 | 950 |
2,020 | 951 |
2,021 | 968 |
Thereafter | 10,542 |
Total future minimum lease payments | $ 15,458 |
Goodwill And Intangible Asset79
Goodwill And Intangible Assets - Summary of Change In Goodwill (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning of year | $ 6,218,867 | $ 6,219,000 |
End of year | $ 6,218,867 | $ 6,218,867 |
Goodwill And Intangible Asset80
Goodwill And Intangible Assets - Summary of Acquired Intangible Assets (Details) - Core Deposit - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 287 | $ 287 |
Accumulated Amortization | $ (216) | $ (162) |
Goodwill And Intangible Asset81
Goodwill And Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Aggregate amortization expense | $ 54,000 | $ 54,000 | $ 54,000 |
Goodwill And Intangible Asset82
Goodwill And Intangible Assets - Summary of Estimated Amortization Expense (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,017 | $ 48 |
2,018 | $ 23 |
Other Real Estate Owned - Summa
Other Real Estate Owned - Summary of Other Real Estate Owned Activity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Real Estate Roll Forward | |||
Beginning balance | $ 216,254 | $ 575,000 | |
Transfer of loans to other real estate | 0 | 0 | $ 91,975 |
Direct write-downs | 0 | 0 | |
Sales of other real estate owned | (216,000) | (359,000) | |
End of year | $ 0 | $ 216,254 | $ 575,000 |
Other Real Estate Owned - Sum84
Other Real Estate Owned - Summary of Valuation Allowance Activity in Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Real Estate Owned Valuation Allowance Roll Forward | ||
Beginning balance | $ 450 | $ 450 |
Additions/(recoveries) charged/(credited) to expense | 0 | 0 |
Reductions from sales of other real estate owned | (450) | 0 |
Direct write-downs | 0 | 0 |
End of year | $ 0 | $ 450 |
Other Real Estate Owned - Sum85
Other Real Estate Owned - Summary of Expenses Related to Other Real Estate Owned (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Real Estate [Abstract] | |||
Net (gain) loss on sale of other real estate owned | $ (157,184) | $ 3,506 | $ 178,214 |
Provision for unrealized losses | 0 | 0 | |
Operating expenses, net of rental income | 14,000 | 30,000 | |
Total | $ (143,000) | $ 34,000 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
Time deposits | $ 51,070,000 | $ 84,248,000 |
Deposit accounts in overdraft status reclassified to loans | $ 41,000 | $ 216,000 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Time Deposits (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Maturities Of Time Deposits [Abstract] | ||
2,017 | $ 125,309,000 | |
2,018 | 29,542,000 | |
2,019 | 17,771,000 | |
2,020 | 7,926,000 | |
2,021 | 3,057,000 | |
Thereafter | 23,000 | |
Total | $ 183,627,943 | $ 220,683,113 |
Securities Sold Under Repurch88
Securities Sold Under Repurchase Agreements - Additional Information (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Securities Pledged as Collateral | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities sold under repurchase agreements | $ 0 | $ 3,724,000 |
Securities Sold Under Repurch89
Securities Sold Under Repurchase Agreements - Summary of Information Concerning Securities Sold Under Repurchase Agreements (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Investments Debt And Equity Securities [Abstract] | ||
Average daily balance during the year | $ 526,000 | $ 6,489,000 |
Average interest rate during the year | 0.15% | 0.23% |
Maximum month-end balance during the year | $ 3,316,000 | $ 15,862,000 |
Weighted average interest rate at year-end | 0.25% |
Federal Home Loan Bank Advanc90
Federal Home Loan Bank Advances - Additional Information (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Federal Home Loan Bank Advances [Line Items] | ||
Outstanding borrowings | $ 55,000,000 | $ 45,000,000 |
Investment securities, FHLB stock and commercial and residential real estate mortgage loans | ||
Federal Home Loan Bank Advances [Line Items] | ||
Mortgage loans collateralized amount | 211,500,000 | |
Amount of available credit | $ 122,100,000 |
Federal Home Loan Bank Advanc91
Federal Home Loan Bank Advances - Summary of Contractual Maturities and Average Effective Rates of Outstanding Advances (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Federal Home Loan Bank Advances Maturities Summary [Abstract] | ||
2,016 | $ 45,000,000 | |
2,017 | $ 55,000,000 | |
Total | $ 55,000,000 | $ 45,000,000 |
2,016 | 0.57% | |
2,017 | 0.80% | |
Total | 0.80% | 0.57% |
Accumulated Other Comprehensi92
Accumulated Other Comprehensive Income (Loss) - Summary of Changes In Accumulated Other Comprehensive Income (Loss) By Component, Net of Tax (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ 108,586,107 | $ 102,651,373 | $ 96,190,925 |
Other comprehensive income (loss) before reclassification | (951,000) | (1,988,000) | |
Amounts reclassified from accumulated other comprehensive income | (285,000) | (92,000) | |
Other comprehensive income (loss) | (1,236,171) | (2,080,991) | (27,680) |
Ending balance | 139,207,396 | 108,586,107 | 102,651,373 |
Gains and Losses on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (3,704,000) | (2,139,000) | |
Other comprehensive income (loss) before reclassification | (279,000) | (1,542,000) | |
Amounts reclassified from accumulated other comprehensive income | (257,000) | (23,000) | |
Other comprehensive income (loss) | (536,000) | (1,565,000) | |
Ending balance | (4,240,000) | (3,704,000) | (2,139,000) |
Unrealized Gains and Losses on Available for Sale Securities | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 105,000 | 723,000 | |
Other comprehensive income (loss) before reclassification | (878,000) | (652,000) | |
Amounts reclassified from accumulated other comprehensive income | 75,000 | 34,000 | |
Other comprehensive income (loss) | (803,000) | (618,000) | |
Ending balance | (698,000) | 105,000 | 723,000 |
Unrealized Losses on Securities Transferred to Held to Maturity | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (1,315,000) | (1,418,000) | |
Other comprehensive income (loss) before reclassification | 206,000 | 206,000 | |
Amounts reclassified from accumulated other comprehensive income | (103,000) | (103,000) | |
Other comprehensive income (loss) | 103,000 | 103,000 | |
Ending balance | (1,212,000) | (1,315,000) | (1,418,000) |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (4,914,380) | (2,833,389) | (2,805,709) |
Other comprehensive income (loss) | (1,236,171) | (2,080,991) | (27,680) |
Ending balance | $ (6,150,551) | $ (4,914,380) | $ (2,833,389) |
Accumulated Other Comprehensi93
Accumulated Other Comprehensive Income (Loss) - Summary of Significant Amounts Reclassified out off Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||||||
Net gain on sale of securities | $ 120,873 | $ 55,023 | $ 13,457 | ||||||||||||
Interest expense - Federal Home Loan Bank advances | (475,308) | (179,866) | (162,000) | ||||||||||||
Income tax (expense) benefit | $ (1,495,445) | $ (1,042,282) | $ (1,159,438) | $ (796,245) | $ (989,615) | $ (831,307) | $ (990,000) | $ (658,924) | $ (233,961) | $ (1,128,460) | $ (509,403) | $ (540,562) | (4,493,410) | (3,469,847) | (2,412,386) |
Net income | $ 2,927,460 | $ 2,109,222 | $ 2,476,252 | $ 1,583,845 | $ 2,092,968 | $ 2,036,468 | $ 1,861,310 | $ 1,568,690 | $ 690,942 | $ 2,072,044 | $ 1,038,782 | $ 1,189,976 | 9,096,778 | 7,559,436 | $ 4,991,744 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Losses on Cash Flow Hedges | |||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||||||
Interest expense - money market | (151,000) | (37,000) | |||||||||||||
Interest expense - Federal Home Loan Bank advances | (265,000) | ||||||||||||||
Income tax (expense) benefit | 159,000 | 14,000 | |||||||||||||
Net income | (257,000) | (23,000) | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and Losses on Available for Sale Securities | |||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||||||
Net gain on sale of securities | 121,000 | 55,000 | |||||||||||||
Income tax (expense) benefit | (46,000) | (21,000) | |||||||||||||
Net income | 75,000 | 34,000 | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Losses on Securities Transferred to Held to Maturity | |||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||||||
Interest income - securities | (167,000) | (167,000) | |||||||||||||
Income tax (expense) benefit | 64,000 | 64,000 | |||||||||||||
Net income | $ (103,000) | $ (103,000) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||||||||||||||
Federal | $ 4,029,000 | $ 2,794,000 | $ 1,630,000 | ||||||||||||
State | 759,000 | 168,000 | 333,000 | ||||||||||||
Total Current tax expense (Benefit) | 4,788,000 | 2,962,000 | 1,963,000 | ||||||||||||
Deferred: | |||||||||||||||
Federal | (395,000) | 314,000 | 373,000 | ||||||||||||
State | 100,000 | 194,000 | 76,000 | ||||||||||||
Total deferred tax expense (Benefit) | (295,000) | 508,000 | 449,000 | ||||||||||||
Total | $ 1,495,445 | $ 1,042,282 | $ 1,159,438 | $ 796,245 | $ 989,615 | $ 831,307 | $ 990,000 | $ 658,924 | $ 233,961 | $ 1,128,460 | $ 509,403 | $ 540,562 | $ 4,493,410 | $ 3,469,847 | $ 2,412,386 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||
Federal statutory income tax rate | 34.00% | 34.00% | 34.00% |
Unrecognized income tax benefits | $ 0 | $ 0 | |
Accrued interest related to uncertain tax positions | 0 | 0 | |
Accrued penalties related to uncertain tax positions | 0 | $ 0 | |
Federal | |||
Income Taxes [Line Items] | |||
Federal net operating loss carryforwards | $ 4,513,000 | ||
Federal net operating loss carryforwards, start year | 2,029 | ||
Federal net operating loss carryforwards, end year | 2,032 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Actual Income Tax Expense (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||||||
Computed "expected" tax expense | $ 4,621,000 | $ 3,750,000 | $ 2,517,000 | ||||||||||||
State income taxes, net of effect of federal income taxes | 567,000 | 239,000 | 270,000 | ||||||||||||
Tax-exempt interest income | (394,000) | (367,000) | (311,000) | ||||||||||||
Earnings on bank owned life insurance contracts | (204,000) | (213,000) | (223,000) | ||||||||||||
Disallowed expenses | 60,000 | 71,000 | 62,000 | ||||||||||||
Expiration of capital loss carryforward | 98,000 | ||||||||||||||
Other | (157,000) | (10,000) | (1,000) | ||||||||||||
Total | $ 1,495,445 | $ 1,042,282 | $ 1,159,438 | $ 796,245 | $ 989,615 | $ 831,307 | $ 990,000 | $ 658,924 | $ 233,961 | $ 1,128,460 | $ 509,403 | $ 540,562 | $ 4,493,410 | $ 3,469,847 | $ 2,412,386 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Allowance for loan and lease losses | $ 4,320 | $ 3,787 |
Depreciation | 326 | 341 |
Net operating loss carryforward | 1,548 | 1,705 |
Organization and preopening costs | 987 | 1,142 |
Stock-based compensation | 1,071 | 941 |
Acquired loans | 224 | 401 |
Acquired deposits | 60 | 109 |
Nonaccrual interest | 39 | 60 |
Write-downs of other real estate | 171 | |
Accrued incentive compensation | 688 | 694 |
Reserve for contingencies | 1,061 | 462 |
Accrued contributions | 197 | 140 |
Unrealized loss on securities available for sale | 1,493 | 995 |
Unrealized loss on securities held to maturity | 752 | 816 |
Cash flow hedge | 588 | 1,209 |
Accrued vacation | 54 | 53 |
Other | 51 | 74 |
Deferred tax assets | 13,459 | 13,100 |
Deferred tax liabilities: | ||
Prepaid expenses | 133 | |
Goodwill | 343 | 204 |
Amortization of core deposit intangible | 27 | 47 |
Deferred tax liabilities | 503 | 251 |
Net deferred tax asset | $ 12,956 | $ 12,849 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Financial Instruments Representing Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Commitments And Contingencies Disclosure [Abstract] | ||
Unused commitments to extend credit | $ 508,990 | $ 384,837 |
Standby letters of credit | 10,886 | 13,450 |
Total | $ 519,876 | $ 398,287 |
Concentration of Credit Risk -
Concentration of Credit Risk - Additional Information (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Concentration Risk [Line Items] | ||
Cash due from banks, federal funds sold and interest bearing deposits | $ 80,110,806 | $ 100,184,841 |
Excess Of Insured Limits | ||
Concentration Risk [Line Items] | ||
Cash due from banks, federal funds sold and interest bearing deposits | $ 25,000,000 | $ 14,000,000 |
Regulatory Matters And Restr100
Regulatory Matters And Restrictions On Dividends - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2016USD ($)Capital | Dec. 31, 2015USD ($) | |
Banking And Thrift [Abstract] | ||
Number of capital categories | Capital | 5 | |
Dividends | $ 22,100,000 | $ 19,000,000 |
Dividends paid | 1,500,000 | |
Dividends payments | $ 0 | $ 0 |
Regulatory Matters And Restr101
Regulatory Matters And Restrictions On Dividends - Schedule of Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital to risk-weighted assets, actual amount | $ 116,047 | |
Tier I capital to risk-weighted assets, actual amount | 105,749 | |
Tier I capital to average assets, actual amount | $ 105,749 | |
Total capital to risk-weighted assets, actual ratio | 11.40% | |
Tier I capital to risk-weighted assets, actual ratio | 10.40% | |
Tier I capital to average assets, actual ratio | 9.30% | |
Total capital to risk-weighted assets, minimum capital requirement amount | $ 81,224 | |
Tier I capital to risk-weighted assets, minimum capital requirement amount | 60,918 | |
Tier I capital to average assets, minimum capital requirement amount | $ 45,328 | |
Total capital to risk-weighted assets, minimum capital requirement ratio | 8.00% | |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | 6.00% | |
Tier I capital to average assets, minimum capital requirement ratio | 4.00% | |
Total capital to risk-weighted assets, minimum to be well capitalized amount | $ 101,530 | |
Tier I capital to risk-weighted assets, minimum to be well capitalized amount | 81,224 | |
Tier I capital to average assets, minimum to be well capitalized amount | $ 56,660 | |
Total capital to risk-weighted assets, minimum to be well capitalized ratio | 10.00% | |
Tier I capital to risk-weighted assets, minimum to be well capitalized ratio | 8.00% | |
Tier I capital to average assets, minimum to be well capitalized ratio | 5.00% | |
Common Stock | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Tier I capital to risk-weighted assets, actual amount | $ 90,272 | |
Tier I capital to risk-weighted assets, actual ratio | 8.90% | |
Tier I capital to risk-weighted assets, minimum capital requirement amount | $ 45,688 | |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | 4.50% | |
Tier I capital to risk-weighted assets, minimum to be well capitalized amount | $ 65,994 | |
Tier I capital to risk-weighted assets, minimum to be well capitalized ratio | 6.50% | |
CapStar Financial Holdings, Inc. | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital to risk-weighted assets, actual amount | $ 149,616 | |
Tier I capital to risk-weighted assets, actual amount | 137,909 | |
Tier I capital to average assets, actual amount | $ 137,909 | |
Total capital to risk-weighted assets, actual ratio | 12.60% | |
Tier I capital to risk-weighted assets, actual ratio | 11.60% | |
Tier I capital to average assets, actual ratio | 10.50% | |
Total capital to risk-weighted assets, minimum capital requirement amount | $ 95,028 | |
Tier I capital to risk-weighted assets, minimum capital requirement amount | 71,271 | |
Tier I capital to average assets, minimum capital requirement amount | $ 52,727 | |
Total capital to risk-weighted assets, minimum capital requirement ratio | 8.00% | |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | 6.00% | |
Tier I capital to average assets, minimum capital requirement ratio | 4.00% | |
CapStar Financial Holdings, Inc. | Common Stock | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Tier I capital to risk-weighted assets, actual amount | $ 129,528 | |
Tier I capital to risk-weighted assets, actual ratio | 10.90% | |
Tier I capital to risk-weighted assets, minimum capital requirement amount | $ 53,453 | |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | 4.50% | |
CapStar Bank | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital to risk-weighted assets, actual amount | $ 126,718 | |
Tier I capital to risk-weighted assets, actual amount | 115,011 | |
Tier I capital to average assets, actual amount | $ 115,011 | |
Total capital to risk-weighted assets, actual ratio | 10.70% | |
Tier I capital to risk-weighted assets, actual ratio | 9.70% | |
Tier I capital to average assets, actual ratio | 8.70% | |
Total capital to risk-weighted assets, minimum capital requirement amount | $ 95,028 | |
Tier I capital to risk-weighted assets, minimum capital requirement amount | 71,271 | |
Tier I capital to average assets, minimum capital requirement amount | $ 52,727 | |
Total capital to risk-weighted assets, minimum capital requirement ratio | 8.00% | |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | 6.00% | |
Tier I capital to average assets, minimum capital requirement ratio | 4.00% | |
Total capital to risk-weighted assets, minimum to be well capitalized amount | $ 118,785 | |
Tier I capital to risk-weighted assets, minimum to be well capitalized amount | 95,028 | |
Tier I capital to average assets, minimum to be well capitalized amount | $ 65,909 | |
Total capital to risk-weighted assets, minimum to be well capitalized ratio | 10.00% | |
Tier I capital to risk-weighted assets, minimum to be well capitalized ratio | 8.00% | |
Tier I capital to average assets, minimum to be well capitalized ratio | 5.00% | |
CapStar Bank | Common Stock | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Tier I capital to risk-weighted assets, actual amount | $ 99,130 | |
Tier I capital to risk-weighted assets, actual ratio | 8.30% | |
Tier I capital to risk-weighted assets, minimum capital requirement amount | $ 53,453 | |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | 4.50% | |
Tier I capital to risk-weighted assets, minimum to be well capitalized amount | $ 77,210 | |
Tier I capital to risk-weighted assets, minimum to be well capitalized ratio | 6.50% |
Nonvoting and Series A Prefe102
Nonvoting and Series A Preferred Stock and Stock Warrants - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Jul. 14, 2008 | |
Class Of Stock [Line Items] | |||
Common stock, shares authorized | 20,000,000 | 20,000,000 | |
Preferred stock, shares issued | 878,049 | 1,609,756 | |
Expire period | 10 years | ||
Warrants grant date | Jul. 14, 2008 | ||
Warrants exercise on cashless basis | 250,000 | ||
Warrants outstanding | 250,000 | ||
Investor | |||
Class Of Stock [Line Items] | |||
Warrants issued to purchase common stock | 238,319 | ||
Purchase price of share | $ 10 | ||
Expire period | 10 years | ||
Warrants grant date | Jul. 14, 2008 | ||
Warrants outstanding | 211,819 | ||
Exercise of warrants | 26,500 | ||
Share issuance descriptions | Each subscriber for shares who is a Tennessee resident or any entity controlled by a Tennessee resident and invested a minimum of $500,000 in the offering, received a warrant to purchase additional shares of common stock equal to 5% of accepted subscriptions at the purchase price of $10.00 per share. | ||
Accepted percentage of subscription on purchase price | 5.00% | ||
Investor | Minimum | |||
Class Of Stock [Line Items] | |||
Common stock subscription, value | $ 500,000,000 | ||
Director | |||
Class Of Stock [Line Items] | |||
Warrants issued to purchase common stock | 10,000 | ||
Warrants purchase price | $ 10 | ||
Organizer | |||
Class Of Stock [Line Items] | |||
Warrants issued to purchase common stock | 60,000 | ||
Expire period | 10 years | ||
Warrants grant date | Jul. 14, 2008 | ||
Warrants outstanding | 60,000 | ||
Exercise of warrants | 0 | ||
Common Stock | |||
Class Of Stock [Line Items] | |||
Exercise of warrants | 100,023 | ||
Initial Public Offering | Common Stock | |||
Class Of Stock [Line Items] | |||
Preferred shares converted to common stock | 731,707 | ||
Nonvoting Common Stock | |||
Class Of Stock [Line Items] | |||
Common stock, shares authorized | 5,000,000 | ||
Common stock, conversion basis | one-to-one basis | ||
Warrants issued to purchase common stock | 500,000 | ||
Purchase price of share | $ 10.25 | ||
Nonvoting Common Stock | Initial Public Offering | |||
Class Of Stock [Line Items] | |||
Stock issued and converted to common stock | 79,166 | ||
Series A Preferred Stock | |||
Class Of Stock [Line Items] | |||
Preferred stock, shares issued | 1,609,756 |
Shareholders' Agreement - Addit
Shareholders' Agreement - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Share Based Compensation [Abstract] | |
Shareholders' agreement date | 2008-06 |
Stock Options and Restricted104
Stock Options and Restricted Shares - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 1,515,000 | |
Total fair value of shares vested | $ 513,000 | $ 184,000 |
Vesting period | 3 years | |
Contractual term | 10 years | |
Expected dividend yield | 0.00% | |
Unrecognized compensation cost | $ 139,000 | |
Restricted Shares | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Cost expected to be recognized over a weighted-average period | 2 years | |
Stock Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Cost expected to be recognized over a weighted-average period | 2 years 6 months | |
CapStar Bank 2008 Stock Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares of stock reserved for issuance of stock incentives | 1,569,475 | |
Shares issuable under both restricted stock and stock option grants | 205,724 |
Stock Options and Restricted105
Stock Options and Restricted Shares - Summary of Company Recognized Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Stock-based compensation expense before income taxes | $ 842 | $ 438 | $ 261 |
Less: deferred tax benefit | (279) | (138) | (85) |
Reduction of net income | $ 563 | $ 300 | $ 176 |
Stock Options and Restricted106
Stock Options and Restricted Shares - Summary of Changes in Company's Nonvested Restricted Shares (Details) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Restricted Shares, Abstract | |
Restricted Shares, Nonvested Beginning Balance | shares | 138,453 |
Restricted Shares, Granted | shares | 126,851 |
Restricted Shares, Vested | shares | (40,596) |
Restricted Shares, Forfeited | shares | (25,067) |
Restricted Shares, Nonvested Ending Balance | shares | 199,641 |
Weighted Average Grant Date Fair Value, Abstract | |
Weighted Average Grant Date Fair Value, Nonvested Beginning Balance | $ / shares | $ 11.16 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 12.86 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 10.34 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 11.68 |
Weighted Average Grant Date Fair Value, Nonvested Ending Balance | $ / shares | $ 12.34 |
Stock Options and Restricted107
Stock Options and Restricted Shares - Summary of Fair Value of Options Granted Using Weighted Average Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Expected dividend yield | 0.00% | |
Expected term (in years) | 7 years 5 months 23 days | 7 years 3 months 15 days |
Expected stock price volatility | 17.20% | 21.26% |
Risk-free interest rate | 1.66% | 1.86% |
Pre-vest forfeiture rate | 10.25% | 10.33% |
Stock Options and Restricted108
Stock Options and Restricted Shares - Summary of Activity in Stock Options (Details) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Shares, Abstract | |
Shares Outstanding, Beginning Balance | shares | 1,018,500 |
Shares Outstanding, Granted | shares | 32,500 |
Shares Outstanding, Exercised | shares | (8,125) |
Shares Outstanding, Forfeited or Expired | shares | (36,875) |
Shares Outstanding, Ending Balance | shares | 1,006,000 |
Shares, Fully Vested and Expected to Vest | shares | 996,803 |
Shares, Exercisable at End of Period | shares | 929,750 |
Weighted Average Exercise Price, Abstract | |
Weighted Average Exercise Price Outstanding, Beginning Balance | $ / shares | $ 10.42 |
Weighted Average Exercise Price Outstanding, Granted | $ / shares | 13.22 |
Weighted Average Exercise Price Outstanding, Exercised | $ / shares | 11.85 |
Weighted Average Exercise Price Outstanding, Forfeited or expired | $ / shares | 11.05 |
Weighted Average Exercise Price Outstanding, Ending Balance | $ / shares | 10.48 |
Weighted Average Exercise Price, Fully vested and expected to vest | $ / shares | 10.46 |
Weighted Average Exercise Price, Exercisable at End of Period | $ / shares | $ 10.35 |
Weighted Average Remaining Contractual Term (year), Abstract | |
Weighted Average Remaining Contractual Term Outstanding | 3 years 1 month 6 days |
Weighted Average Remaining Contractual Term, Fully Vested and Expected to Vest | 3 years 1 month 6 days |
Weighted Average Remaining Contractual Term, Exercisable at End of Period | 2 years 8 months 12 days |
Stock Options and Restricted109
Stock Options and Restricted Shares - Information Related to Stock Options (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Intrinsic value of options exercised | $ 53,756 | $ 1,410 |
Cash received from option exercises | 96,306 | 10,000 |
Tax benefit realized from option exercises | $ 20,583 | $ 900 |
Weighted average fair value of options granted | $ 3.16 | $ 3.20 |
Employee Benefit Plans- Additio
Employee Benefit Plans- Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | |||
Annual contribution percentage | 3.00% | ||
Additional discretionary contribution of employees' salary percentage | 6.00% | ||
Company's contribution to 401(k) Plan | $ 536,000 | $ 469,000 | $ 426,000 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - Designated as Hedging Instrument - Interest Rate Swaps - Cash Flow Hedges - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments [Line Items] | ||
Notional amounts | $ 20,000,000 | $ 35,000,000 |
Interest income (expense) | 0 | $ 0 |
Investment securities pledged collateral to counterparties | 2,391,000 | |
Investment securities pledged collateral from counterparties | $ 0 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Interest-Rate Swaps Designated as Cash Flow Hedges (Details) - Designated as Hedging Instrument - Cash Flow Hedges - Interest Rate Swaps - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments [Line Items] | ||
Notional amounts | $ 20,000,000 | $ 35,000,000 |
Weighted average pay rates | 3.54% | 3.67% |
Weighted average receive rates | Dec. 31, 2016: 3 month LIBOR and Dec. 31, 2015: 3 month LIBOR | |
Weighted average maturity | 6 years 6 months | 7 years 4 months 24 days |
Fair value | $ (1,535,000) | $ (3,158,000) |
Amount of unrealized loss recognized in accumulated other comprehensive income, net of tax | $ (947,000) | $ (1,949,000) |
Derivative Instruments - Sum113
Derivative Instruments - Summary of Customer Related Interest Rate Swaps (Details) - Interest Rate Swaps - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative Instruments [Line Items] | ||
Interest rate swap, Notional amount | $ 82,508,000 | $ 91,350,000 |
Pay fixed/receive variable swaps | ||
Derivative Instruments [Line Items] | ||
Interest rate swap, Notional amount | 41,254,000 | 45,675,000 |
Interest rate swap, Estimated fair value | 460,000 | (726,000) |
Pay variable/receive fixed swaps | ||
Derivative Instruments [Line Items] | ||
Interest rate swap, Notional amount | 41,254,000 | 45,675,000 |
Interest rate swap, Estimated fair value | $ (460,000) | $ 726,000 |
Related Party - Additional Info
Related Party - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Impairment of loans | $ 0 | $ 0 | |
Consulting services expense | 1,553,680 | 1,469,031 | $ 1,357,368 |
Directors Executive Officers, Shareholders and Affiliates | |||
Related Party Transaction [Line Items] | |||
Deposit from related parties | 8,800,000 | $ 12,700,000 | |
Director | |||
Related Party Transaction [Line Items] | |||
Consulting services expense | 30,000 | ||
Shareholder | |||
Related Party Transaction [Line Items] | |||
Payment to shareholder for lease of Bank’s branches | $ 95,000 |
Related Party - Schedule of Rel
Related Party - Schedule of Related Party Transactions Activity within Loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Total Commitment | |
Related Party Transaction [Line Items] | |
Beginning Balance | $ 27,501 |
New commitments/draw downs | 4,805 |
Repayments | (1,230) |
Ending Balance | 31,076 |
Total Funded Commitment | |
Related Party Transaction [Line Items] | |
Beginning Balance | 17,770 |
New commitments/draw downs | 4,692 |
Repayments | (2,137) |
Ending Balance | $ 20,325 |
Fair Value - Summary of Assets
Fair Value - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Total securities available for sale | $ 182,354,987 | $ 173,382,957 |
Obligations of States and Political Subdivisions | ||
Assets: | ||
Total securities available for sale | 27,913,000 | 13,868,000 |
Asset-backed securities | ||
Assets: | ||
Total securities available for sale | 20,473,000 | 21,593,000 |
Fair Value Measurements Recurring Basis | ||
Assets: | ||
Total securities available for sale | 182,355,000 | 173,383,000 |
Liabilities: | ||
Total derivatives | (1,994,000) | (3,884,000) |
Fair Value Measurements Recurring Basis | U.S. Government-sponsored Agencies | ||
Assets: | ||
Total securities available for sale | 9,374,000 | 19,542,000 |
Fair Value Measurements Recurring Basis | Obligations of States and Political Subdivisions | ||
Assets: | ||
Total securities available for sale | 27,913,000 | 13,868,000 |
Fair Value Measurements Recurring Basis | Mortgage-backed Securities-residential | ||
Assets: | ||
Total securities available for sale | 124,595,000 | 118,380,000 |
Fair Value Measurements Recurring Basis | Asset-backed securities | ||
Assets: | ||
Total securities available for sale | 20,473,000 | 21,593,000 |
Fair Value Measurements Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Total securities available for sale | 3,526,000 | |
Fair Value Measurements Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | ||
Assets: | ||
Total securities available for sale | 3,526,000 | |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total securities available for sale | 182,355,000 | 169,857,000 |
Liabilities: | ||
Total derivatives | (1,994,000) | (3,884,000) |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | U.S. Government-sponsored Agencies | ||
Assets: | ||
Total securities available for sale | 9,374,000 | 19,542,000 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Obligations of States and Political Subdivisions | ||
Assets: | ||
Total securities available for sale | 27,913,000 | 13,868,000 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed Securities-residential | ||
Assets: | ||
Total securities available for sale | 124,595,000 | 118,380,000 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Assets: | ||
Total securities available for sale | 20,473,000 | 18,067,000 |
Fair Value Measurements Recurring Basis | Interest Rate Swaps - Customer Related | ||
Assets: | ||
Interest rate swaps - customer related | 460,000 | 726,000 |
Liabilities: | ||
Total derivatives | (460,000) | (726,000) |
Fair Value Measurements Recurring Basis | Interest Rate Swaps - Customer Related | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Interest rate swaps - customer related | 460,000 | 726,000 |
Liabilities: | ||
Total derivatives | (460,000) | (726,000) |
Fair Value Measurements Recurring Basis | Interest Rate Swaps - Cash Flow Hedges | ||
Liabilities: | ||
Total derivatives | (1,535,000) | (3,158,000) |
Fair Value Measurements Recurring Basis | Interest Rate Swaps - Cash Flow Hedges | Significant Other Observable Inputs (Level 2) | ||
Liabilities: | ||
Total derivatives | $ (1,535,000) | $ (3,158,000) |
Fair Value - Summary of Asse117
Fair Value - Summary of Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Commercial Real Estate | ||
Assets: | ||
Impaired loans | $ 1,383 | |
Construction and land development | ||
Assets: | ||
Other real estate owned | 216 | |
Significant Unobservable Inputs (Level 3) | Commercial Real Estate | ||
Assets: | ||
Impaired loans | 1,383 | |
Significant Unobservable Inputs (Level 3) | Construction and land development | ||
Assets: | ||
Other real estate owned | $ 216 | |
Commercial and industrial | ||
Assets: | ||
Impaired loans | $ 2,309 | |
Commercial and industrial | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Impaired loans | $ 2,309 |
Fair Value - Summary of Quantit
Fair Value - Summary of Quantitative Information About Level 3 Fair Value Measurements for Assets Measured at Fair Value on a Non-Recurring Basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Commercial Real Estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 1,383 | |
Construction and land development | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other real estate owned | 216 | |
Commercial and industrial | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 2,309 | |
Level 3 Fair Value Measurements | Commercial Real Estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 1,383 | |
Valuation Technique(s) | Dec. 31, 2015: Sales comparison approach | |
Unobservable Input(s) | Dec. 31, 2015: Appraisal discounts | |
Range (Weighted-Average) | 20.00% | |
Level 3 Fair Value Measurements | Construction and land development | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Valuation Technique(s) | Dec. 31, 2015: Sales comparison approach | |
Unobservable Input(s) | Dec. 31, 2015: Appraisal discounts | |
Range (Weighted-Average) | 15.00% | |
Other real estate owned | $ 216 | |
Level 3 Fair Value Measurements | Commercial and industrial | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 2,309 | |
Valuation Technique(s) | Dec. 31, 2016: Sales comparison approach | |
Unobservable Input(s) | Dec. 31, 2016: Appraisal discounts | |
Range (Weighted-Average) | 25.00% |
Fair Value - Summary of Carryin
Fair Value - Summary of Carrying Value and Fair Values of the Bank's Financial Instruments (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Financial assets: | ||
Securities available for sale | $ 182,354,987 | $ 173,382,957 |
Securities held to maturity, fair value | 49,731,169 | 46,458,841 |
Carrying amount | ||
Financial assets: | ||
Cash and due from banks, interest-bearing deposits in financial institutions | 63,456,000 | 93,455,000 |
Federal funds sold | 16,654,000 | 6,730,000 |
Securities available for sale | 182,355,000 | 173,383,000 |
Securities held to maturity, fair value | 46,864,000 | 43,094,000 |
Loans held for sale | 42,111,000 | 35,729,000 |
Restricted equity securities | 6,032,000 | 5,414,000 |
Loans, net | 935,251,000 | 798,264,000 |
Accrued interest receivable | 3,942,000 | 3,030,000 |
Bank owned life insurance | 21,900,000 | 21,299,000 |
Other assets | 460,000 | 726,000 |
Financial liabilities: | ||
Deposits | 1,128,722,000 | 1,038,460,000 |
Securities sold under repurchase agreements | 3,755,000 | |
Federal Home Loan Bank advances | 55,000,000 | 45,000,000 |
Accrued interest payable | 212,000 | 177,000 |
Other liabilities | 5,349,000 | 6,536,000 |
Fair value | ||
Financial assets: | ||
Cash and due from banks, interest-bearing deposits in financial institutions | 63,456,000 | 93,455,000 |
Federal funds sold | 16,654,000 | 6,730,000 |
Securities available for sale | 182,355,000 | 173,383,000 |
Securities held to maturity, fair value | 49,731,000 | 46,459,000 |
Loans held for sale | 42,302,000 | 36,552,000 |
Loans, net | 934,628,000 | 806,030,000 |
Accrued interest receivable | 3,942,000 | 3,030,000 |
Bank owned life insurance | 21,900,000 | 21,299,000 |
Other assets | 460,000 | 726,000 |
Financial liabilities: | ||
Deposits | 1,088,758,000 | 1,035,978,000 |
Securities sold under repurchase agreements | 3,755,000 | |
Federal Home Loan Bank advances | 54,989,000 | 44,926,000 |
Accrued interest payable | 212,000 | 177,000 |
Other liabilities | $ 5,349,000 | $ 6,536,000 |
Parent Company Only Financia120
Parent Company Only Financial Information - Condensed Balance Sheet (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||||
Cash and cash equivalents | $ 80,110,806 | $ 100,184,841 | $ 73,934,337 | $ 44,793,388 |
Total assets | 1,333,675,063 | 1,206,800,279 | ||
Liabilities and Shareholders’ Equity | ||||
Other liabilities | 10,533,836 | 10,822,322 | ||
Total shareholders’ equity | 139,207,396 | 108,586,107 | $ 102,651,373 | $ 96,190,925 |
Total liabilities and shareholders’ equity | 1,333,675,063 | $ 1,206,800,279 | ||
CapStar Financial Holdings, Inc. | ||||
Assets | ||||
Cash and cash equivalents | 22,952,354,000 | |||
Investment in consolidated subsidiary | 116,309,922,000 | |||
Total assets | 139,262,276,000 | |||
Liabilities and Shareholders’ Equity | ||||
Other liabilities | 54,880,000 | |||
Total shareholders’ equity | 139,207,396,000 | |||
Total liabilities and shareholders’ equity | $ 139,262,276,000 |
Parent Company Only Financia121
Parent Company Only Financial Information - Condensed Income Statement (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income tax benefit | $ 1,495,445 | $ 1,042,282 | $ 1,159,438 | $ 796,245 | $ 989,615 | $ 831,307 | $ 990,000 | $ 658,924 | $ 233,961 | $ 1,128,460 | $ 509,403 | $ 540,562 | $ 4,493,410 | $ 3,469,847 | $ 2,412,386 |
Net income | $ 2,927,460 | $ 2,109,222 | $ 2,476,252 | $ 1,583,845 | $ 2,092,968 | $ 2,036,468 | $ 1,861,310 | $ 1,568,690 | $ 690,942 | $ 2,072,044 | $ 1,038,782 | $ 1,189,976 | 9,096,778 | $ 7,559,436 | $ 4,991,744 |
CapStar Financial Holdings, Inc. | |||||||||||||||
Income - dividends from subsidiary | 1,500,000,000 | ||||||||||||||
Expenses | 741,691,000 | ||||||||||||||
Income before income taxes and equity in undistributed net income of subsidiary | 758,309,000 | ||||||||||||||
Income tax benefit | (258,528,000) | ||||||||||||||
Income before equity in undistributed net income of subsidiary | 1,016,837,000 | ||||||||||||||
Equity in undistributed net income of subsidiary | 7,366,019,000 | ||||||||||||||
Net income | $ 8,382,856,000 |
Parent Company Only Financia122
Parent Company Only Financial Information - Condensed Statement of Cash Flows (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||||||||||||||
Net income | $ 2,927,460 | $ 2,109,222 | $ 2,476,252 | $ 1,583,845 | $ 2,092,968 | $ 2,036,468 | $ 1,861,310 | $ 1,568,690 | $ 690,942 | $ 2,072,044 | $ 1,038,782 | $ 1,189,976 | $ 9,096,778 | $ 7,559,436 | $ 4,991,744 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||
Excess tax benefit from stock compensation | (61,217) | (8,286) | (12,349) | ||||||||||||
Net cash provided by (used in) operating activities | 6,267,098 | (9,348,029) | (6,983,450) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||
Issuance of common stock | 21,562,716 | ||||||||||||||
Exercise of common stock options and warrants, net of repurchase of restricted shares | 294,298 | 10,000 | 75,000 | ||||||||||||
Excess tax benefit from stock compensation | 61,217 | 8,286 | 12,349 | ||||||||||||
Net cash provided by financing activities | 116,471,174 | 69,546,938 | 107,322,179 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | (20,074,035) | 26,250,504 | 29,140,949 | ||||||||||||
Cash and cash equivalents at beginning of period | $ 100,184,841 | $ 73,934,337 | $ 44,793,388 | 100,184,841 | 73,934,337 | 44,793,388 | |||||||||
Cash and cash equivalents at end of period | 80,110,806 | $ 100,184,841 | $ 73,934,337 | 80,110,806 | $ 100,184,841 | $ 73,934,337 | |||||||||
CapStar Financial Holdings, Inc. | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | 8,382,856,000 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||
Increase in other liabilities | 54,880,000 | ||||||||||||||
Excess tax benefit from stock compensation | (61,217,000) | ||||||||||||||
Equity in undistributed net income of subsidiary | (7,366,019,000) | ||||||||||||||
Net cash provided by (used in) operating activities | 1,010,500,000 | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||
Issuance of common stock | 21,562,716,000 | ||||||||||||||
Exercise of common stock options and warrants, net of repurchase of restricted shares | 317,921,000 | ||||||||||||||
Excess tax benefit from stock compensation | 61,217,000 | ||||||||||||||
Net cash provided by financing activities | 21,941,854,000 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 22,952,354,000 | ||||||||||||||
Cash and cash equivalents at end of period | $ 22,952,354,000 | $ 22,952,354,000 |
Quarterly Financial Results 123
Quarterly Financial Results (Unaudited) - Summary of Quarterly Financial Results (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Interest income | $ 12,007,234 | $ 11,874,605 | $ 10,914,739 | $ 10,598,178 | $ 10,271,373 | $ 10,802,646 | $ 9,809,759 | $ 9,619,954 | $ 10,295,115 | $ 9,478,772 | $ 9,308,583 | $ 9,204,274 | $ 45,394,756 | $ 40,503,733 | $ 38,286,744 |
Interest expense | 1,826,961 | 1,749,090 | 1,713,584 | 1,641,903 | 1,433,927 | 1,385,632 | 1,460,851 | 1,450,101 | 1,502,095 | 1,462,025 | 1,414,085 | 1,492,690 | 6,931,536 | 5,730,512 | 5,870,896 |
Net interest income | 10,180,273 | 10,125,515 | 9,201,155 | 8,956,275 | 8,837,446 | 9,417,015 | 8,348,908 | 8,169,853 | 8,793,020 | 8,016,747 | 7,894,498 | 7,711,584 | 38,463,220 | 34,773,221 | 32,415,848 |
Provision for loan and lease losses | 69,884 | 1,638,669 | 182,863 | 937,216 | 350,000 | 580,000 | 585,000 | 135,675 | 3,168,986 | 0 | 586,500 | 113,369 | 2,828,633 | 1,650,675 | 3,868,855 |
Net interest income after provision for loan and lease losses | 10,110,389 | 8,486,845 | 9,018,292 | 8,019,059 | 8,487,446 | 8,837,015 | 7,763,908 | 8,034,178 | 5,624,034 | 8,016,747 | 7,307,998 | 7,598,215 | 35,634,587 | 33,122,546 | 28,546,993 |
Noninterest income | 2,954,021 | 3,191,463 | 2,568,192 | 2,370,772 | 1,918,157 | 2,634,659 | 2,418,890 | 1,911,804 | 1,878,269 | 2,557,692 | 1,873,777 | 1,109,505 | 11,084,449 | 8,883,510 | 7,419,242 |
Noninterest expense | 8,641,506 | 8,526,805 | 7,950,794 | 8,009,741 | 7,323,020 | 8,603,899 | 7,331,488 | 7,718,367 | 6,577,399 | 7,373,935 | 7,633,590 | 6,977,181 | 33,128,848 | 30,976,773 | 28,562,105 |
Income before income taxes | 4,422,904 | 3,151,504 | 3,635,690 | 2,380,090 | 3,082,583 | 2,867,774 | 2,851,311 | 2,227,615 | 924,903 | 3,200,504 | 1,548,185 | 1,730,539 | 13,590,188 | 11,029,283 | 7,404,130 |
Income tax expense | 1,495,445 | 1,042,282 | 1,159,438 | 796,245 | 989,615 | 831,307 | 990,000 | 658,924 | 233,961 | 1,128,460 | 509,403 | 540,562 | 4,493,410 | 3,469,847 | 2,412,386 |
Net income | $ 2,927,460 | $ 2,109,222 | $ 2,476,252 | $ 1,583,845 | $ 2,092,968 | $ 2,036,468 | $ 1,861,310 | $ 1,568,690 | $ 690,942 | $ 2,072,044 | $ 1,038,782 | $ 1,189,976 | $ 9,096,778 | $ 7,559,436 | $ 4,991,744 |
Net income per share, basic | $ 0.26 | $ 0.24 | $ 0.29 | $ 0.18 | $ 0.24 | $ 0.24 | $ 0.22 | $ 0.18 | $ 0.08 | $ 0.24 | $ 0.12 | $ 0.14 | $ 0.98 | $ 0.89 | $ 0.59 |
Net income per share, diluted | $ 0.23 | $ 0.20 | $ 0.23 | $ 0.15 | $ 0.20 | $ 0.20 | $ 0.18 | $ 0.15 | $ 0.07 | $ 0.20 | $ 0.10 | $ 0.12 | $ 0.81 | $ 0.73 | $ 0.49 |