Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 11, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CSTR | ||
Entity Registrant Name | CAPSTAR FINANCIAL HOLDINGS, INC. | ||
Entity Central Index Key | 0001676479 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 221,083,857 | ||
Voting | |||
Document And Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 17,719,816 | ||
Nonvoting | |||
Document And Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 132,561 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 17,967 | $ 9,506 |
Interest-bearing deposits in financial institutions | 76,714 | 68,572 |
Federal funds sold | 10,762 | 4,719 |
Total cash and cash equivalents | 105,443 | 82,797 |
Securities available-for-sale, at fair value | 243,808 | 192,621 |
Securities held-to-maturity, fair value of $3,785, and $3,848 at December 31, 2018 and 2017, respectively | 3,734 | 3,759 |
Loans held for sale | 57,618 | 74,093 |
Loans, net of unearned income | 1,429,794 | 947,537 |
Less allowance for loan losses | (12,113) | (13,721) |
Loans, net | 1,417,681 | 933,816 |
Premises and equipment, net | 18,821 | 5,884 |
Restricted equity securities | 12,038 | 8,806 |
Accrued interest receivable | 5,964 | 4,084 |
Goodwill | 37,510 | 6,219 |
Core deposit intangible, net | 8,538 | 23 |
Other real estate owned, net | 988 | 0 |
Other assets | 51,740 | 32,327 |
Total assets | 1,963,883 | 1,344,429 |
Deposits: | ||
Non-interest-bearing | 289,552 | 301,742 |
Interest-bearing | 434,921 | 274,681 |
Savings and money market accounts | 497,108 | 367,246 |
Time | 348,427 | 176,197 |
Total deposits | 1,570,008 | 1,119,866 |
Federal Home Loan Bank advances | 125,000 | 70,000 |
Other liabilities | 14,496 | 7,617 |
Total liabilities | 1,709,504 | 1,197,483 |
Shareholders’ equity: | ||
Series A convertible preferred stock, $1 par value; 5,000,000 shares authorized; 878,049 shares issued and outstanding at December 31, 2018 and 2017 | 878 | 878 |
Additional paid-in capital | 211,789 | 118,120 |
Retained earnings | 27,303 | 18,892 |
Accumulated other comprehensive loss, net of income tax | (3,316) | (2,527) |
Total shareholders’ equity | 254,379 | 146,946 |
Total liabilities and shareholders’ equity | 1,963,883 | 1,344,429 |
Nonvoting | ||
Shareholders’ equity: | ||
Common stock | 133 | 133 |
Voting | ||
Shareholders’ equity: | ||
Common stock | $ 17,592 | $ 11,450 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Securities held to maturity, fair value | $ 3,785 | $ 3,848 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 878,049 | 878,049 |
Preferred stock, shares outstanding | 878,049 | 878,049 |
Voting | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 17,592,160 | 17,592,160 |
Common stock, shares outstanding | 11,449,465 | 11,449,465 |
Nonvoting | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 132,561 | 132,561 |
Common stock, shares outstanding | 132,561 | 132,561 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income: | |||
Loans, including fees | $ 60,751,000 | $ 45,601,000 | $ 40,213,000 |
Securities: | |||
Taxable | 4,184,000 | 3,696,000 | 3,448,000 |
Tax-exempt | 1,201,000 | 1,230,000 | 1,158,000 |
Federal funds sold | 63,000 | 41,000 | 19,000 |
Restricted equity securities | 571,000 | 396,000 | 281,000 |
Interest-bearing deposits in financial institutions | 1,011,000 | 551,000 | 276,000 |
Total interest income | 67,781,000 | 51,515,000 | 45,395,000 |
Interest expense: | |||
Interest-bearing deposits | 4,164,000 | 2,447,000 | 1,489,000 |
Savings and money market accounts | 5,446,000 | 3,188,000 | 2,859,000 |
Time deposits | 3,940,000 | 2,445,000 | 2,085,000 |
Federal funds purchased | 3,000 | 13,000 | 22,000 |
Securities sold under agreements to repurchase | 3,000 | 1,000 | |
Federal Home Loan Bank advances | 2,533,000 | 1,559,000 | 475,000 |
Total interest expense | 16,089,000 | 9,652,000 | 6,931,000 |
Net interest income | 51,692,000 | 41,863,000 | 38,464,000 |
Provision for loan losses | 2,842,000 | 12,870,000 | 2,829,000 |
Net interest income after provision for loan losses | 48,850,000 | 28,993,000 | 35,635,000 |
Noninterest income: | |||
Noninterest income | 5,653,000 | 6,238,000 | 7,375,000 |
Net gain (loss) on sale of securities | 3,000 | (66,000) | 121,000 |
Tri-Net fees | 1,503,000 | 1,002,000 | 125,000 |
Bank owned life insurance income | 2,660,000 | 578,000 | 601,000 |
Other noninterest income | 3,490,000 | 1,640,000 | 1,754,000 |
Total noninterest income | 15,459,000 | 10,908,000 | 11,084,000 |
Noninterest expense: | |||
Salaries and employee benefits | 28,586,000 | 20,400,000 | 20,461,000 |
Data processing and software | 3,835,000 | 2,786,000 | 2,373,000 |
Professional fees | 1,608,000 | 1,522,000 | 1,554,000 |
Occupancy | 2,336,000 | 2,025,000 | 1,498,000 |
Equipment | 2,471,000 | 2,071,000 | 1,743,000 |
Regulatory fees | 1,028,000 | 1,111,000 | 1,091,000 |
Merger related expenses | 9,803,000 | ||
Amortization of intangibles | 465,000 | 48,000 | 54,000 |
Other operating | 3,355,000 | 3,802,000 | 4,355,000 |
Total noninterest expense | 53,487,000 | 33,765,000 | 33,129,000 |
Income before income taxes | 10,822,000 | 6,136,000 | 13,590,000 |
Income tax expense | 1,167,000 | 4,635,000 | 4,493,000 |
Net income | $ 9,655,000 | $ 1,501,000 | $ 9,097,000 |
Per share information: | |||
Basic net income per share of common stock | $ 0.73 | $ 0.13 | $ 0.98 |
Diluted net income per share of common stock | $ 0.67 | $ 0.12 | $ 0.81 |
Weighted average shares outstanding: | |||
Basic | 13,277,614 | 11,280,580 | 9,328,236 |
Diluted | 14,480,347 | 12,803,511 | 11,212,026 |
Treasury Management And Other Deposit Service Charges | |||
Noninterest income: | |||
Noninterest income | $ 2,150,000 | $ 1,516,000 | $ 1,108,000 |
Mortgage Banking Income | |||
Noninterest income: | |||
Noninterest income | $ 5,653,000 | $ 6,238,000 | $ 7,375,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 9,655 | $ 1,501 | $ 9,097 |
Unrealized gains (losses) on securities available-for-sale: | |||
Unrealized holding gains (losses) arising during the period | (2,491) | 4,855 | (1,181) |
Reclassification adjustment for (gains) losses included in net income | (3) | 66 | (121) |
Tax effect | 652 | (1,884) | 499 |
Net of tax | (1,842) | 3,037 | (803) |
Unrealized losses on securities transferred to held-to-maturity: | |||
Reclassification adjustment for losses included in net income | 14 | 190 | 167 |
Tax effect | (4) | (73) | (64) |
Net of tax | 10 | 117 | 103 |
Unrealized gains (losses) on cash flow hedges: | |||
Unrealized holding gains (losses) arising during the period | 263 | (72) | (330) |
Reclassification adjustment for losses included in net income | 920 | 863 | 416 |
Tax effect | (140) | (62) | (623) |
Net of tax | 1,043 | 729 | (537) |
Other comprehensive income (loss) | (789) | 3,883 | (1,237) |
Comprehensive income | $ 8,866 | $ 5,384 | $ 7,860 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock, Voting | Common Stock, Nonvoting | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2015 | $ 108,586 | $ 1,610 | $ 8,577 | $ 95,278 | $ 8,035 | $ (4,914) | |
Beginning 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) | $ 100 | (133) | ||||
Issuance of restricted common stock, net of forfeitures and withholdings to satisfy employee tax obligations, shares | 99,560 | ||||||
Stock-based compensation expense | 842 | 842 | |||||
Excess tax benefit from stock compensation | 61 | 61 | |||||
Exercise of common stock options, net of withholdings to satisfy employee tax obligations | 96 | $ 8 | 88 | ||||
Exercise of common stock options, net of withholdings to satisfy employee tax obligations, shares | 8,125 | ||||||
Issuance of common stock | 21,563 | $ 1,688 | 19,875 | ||||
Issuance of common stock, shares | 1,688,049 | ||||||
Conversion of preferred stock | (732) | $ 732 | |||||
Conversion of preferred stock, shares | 731,707 | ||||||
Exercise of common stock warrants | 232 | $ 100 | 132 | ||||
Exercise of common stock warrants, shares | 100,023 | ||||||
Net income | 9,097 | 9,097 | |||||
Other Comprehensive income (loss) | (1,237) | (1,237) | |||||
Ending balance at Dec. 31, 2016 | 139,207 | 878 | $ 11,205 | 116,143 | 17,132 | (6,151) | |
Ending balance, shares at Dec. 31, 2016 | 11,204,515 | ||||||
Issuance of restricted common stock, net of forfeitures and withholdings to satisfy employee tax obligations | (244) | $ 36 | (280) | ||||
Issuance of restricted common stock, net of forfeitures and withholdings to satisfy employee tax obligations, shares | 35,714 | ||||||
Stock-based compensation expense | 1,061 | 1,061 | |||||
Exercise of common stock options, net of withholdings to satisfy employee tax obligations | 1,011 | $ 154 | 857 | ||||
Exercise of common stock options, net of withholdings to satisfy employee tax obligations, shares | 154,050 | ||||||
Exercise of common stock warrants | 527 | $ 55 | $ 133 | 339 | |||
Exercise of common stock warrants, shares | 55,186 | 132,561 | |||||
Reclassification of accumulated other comprehensive income due to tax rate change | 259 | (259) | |||||
Net income | 1,501 | 1,501 | |||||
Other Comprehensive income (loss) | 3,883 | 3,883 | |||||
Ending balance at Dec. 31, 2017 | 146,946 | 878 | $ 11,450 | $ 133 | 118,120 | 18,892 | (2,527) |
Ending balance, shares at Dec. 31, 2017 | 11,449,465 | 132,561 | |||||
Beginning balance at Dec. 31, 2017 | 146,946 | 878 | $ 11,450 | $ 133 | 118,120 | 18,892 | (2,527) |
Beginning balance, shares at Dec. 31, 2017 | 11,449,465 | 132,561 | |||||
Issuance of restricted common stock, net of forfeitures and withholdings to satisfy employee tax obligations | (445) | $ 107 | (552) | ||||
Issuance of restricted common stock, net of forfeitures and withholdings to satisfy employee tax obligations, shares | 107,640 | ||||||
Stock-based compensation expense | 2,079 | 2,079 | |||||
Exercise of common stock options, net of withholdings to satisfy employee tax obligations | 3,653 | $ 667 | 2,986 | ||||
Exercise of common stock options, net of withholdings to satisfy employee tax obligations, shares | 666,964 | ||||||
Exercise of common stock warrants | 1,606 | $ 186 | 1,420 | ||||
Exercise of common stock warrants, shares | 186,175 | ||||||
Issuance of common stock in conjunction with Athens acquisition, net of issuance costs | 92,918 | $ 5,182 | 87,736 | ||||
Issuance of common stock in conjunction with Athens acquisition, net of issuance costs | 5,181,916 | ||||||
Common and preferred stock dividends declared ($0.04 per share) | (1,244) | (1,244) | |||||
Net income | 9,655 | 9,655 | |||||
Other Comprehensive income (loss) | (789) | (789) | |||||
Ending balance at Dec. 31, 2018 | 254,379 | 878 | $ 17,592 | $ 133 | 211,789 | 27,303 | (3,316) |
Ending balance, shares at Dec. 31, 2018 | 17,592,160 | 132,561 | |||||
Net income | (708) | ||||||
Ending balance at Dec. 31, 2018 | $ 254,379 | $ 878 | $ 17,592 | $ 133 | $ 211,789 | $ 27,303 | $ (3,316) |
Ending balance, shares at Dec. 31, 2018 | 17,592,160 | 132,561 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 9,655,000 | $ 1,501,000 | $ 9,097,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Provision for loan losses | 2,842,000 | 12,870,000 | 2,829,000 |
Accretion of discounts on acquired loans and deferred fees | (2,978,000) | (1,533,000) | (1,677,000) |
Depreciation and amortization | 1,028,000 | 450,000 | 422,000 |
Net amortization of premiums on investment securities | 1,007,000 | 1,259,000 | 1,527,000 |
Securities (gains) losses, net | (3,000) | 66,000 | (121,000) |
Mortgage banking income | $ (5,653,000) | $ (6,238,000) | $ (7,375,000) |
Type of Revenue [Extensible List] | us-gaap:MortgageBankingMember | us-gaap:MortgageBankingMember | us-gaap:MortgageBankingMember |
Tri-Net fees | $ (1,503,000) | $ (1,002,000) | $ (125,000) |
Net (gain) loss on sale of loans | (248,000) | (113,000) | |
Net (gain) loss on disposal of premises and equipment | 137,000 | ||
Net (gain) loss on sale of other real estate owned | 0 | 0 | (157,000) |
Stock-based compensation | 2,079,000 | 1,061,000 | 842,000 |
Excess tax benefit from stock compensation | (61,000) | ||
Deferred income tax (benefit) expense | 1,175,000 | 4,385,000 | (295,000) |
Origination of loans held for sale | (516,341,000) | (565,372,000) | (522,038,000) |
Proceeds from loans held for sale | 540,448,000 | 540,123,000 | 523,156,000 |
Net (increase) decrease in accrued interest receivable and other assets | 1,395,000 | (1,760,000) | (1,537,000) |
Net increase (decrease) in accrued interest payable and other liabilities | 461,000 | (2,448,000) | 1,814,000 |
Net cash provided by (used in) operating activities | 33,364,000 | (16,614,000) | 6,301,000 |
Activities in securities available-for-sale: | |||
Purchases | (44,787,000) | (30,525,000) | (81,946,000) |
Sales | 38,322,000 | 46,762,000 | 46,700,000 |
Maturities, prepayments and calls | 19,245,000 | 18,828,000 | 23,644,000 |
Activities in securities held-to-maturity: | |||
Purchases | (5,337,000) | ||
Maturities, prepayments and calls | 1,560,000 | 1,656,000 | |
Purchase of restricted equity securities | (12,000) | (2,774,000) | (618,000) |
Net increase in loans | (139,124,000) | (20,916,000) | (126,505,000) |
Purchase of premises and equipment | (4,244,000) | (1,075,000) | (814,000) |
Proceeds from the sale of premises and equipment | 3,000 | ||
Proceeds from BOLI death benefit | 3,416,000 | ||
Cash received from acquisitions, net | 12,053,000 | ||
Proceeds from sale of other real estate | 373,000 | ||
Net cash provided by (used in) investing activities | (115,131,000) | 11,863,000 | (142,847,000) |
Cash flows from financing activities: | |||
Net increase (decrease) in deposits | 45,622,000 | (8,857,000) | 90,262,000 |
Proceeds from Federal Home Loan Bank advances | 125,000,000 | 135,000,000 | 55,000,000 |
Payments on Federal Home Loan Bank advances | (70,000,000) | (120,000,000) | (45,000,000) |
Proceeds from issuance of common stock | 21,563,000 | ||
Exercise of common stock options and warrants, net of repurchase of restricted shares | 4,814,000 | 1,294,000 | 295,000 |
Excess tax benefit from stock compensation | 61,000 | ||
Termination of interest rate swap agreement | (1,954,000) | ||
Common and preferred stock dividends paid | (1,244,000) | ||
Net increase (decrease) in repurchase agreements | 221,000 | (3,755,000) | |
Net cash provided by financing activities | 104,413,000 | 7,437,000 | 116,472,000 |
Net increase (decrease) in cash and cash equivalents | 22,646,000 | 2,686,000 | (20,074,000) |
Cash and cash equivalents at beginning of period | 82,797,000 | 80,111,000 | 100,185,000 |
Cash and cash equivalents at end of period | 105,443,000 | 82,797,000 | 80,111,000 |
Supplemental disclosures of cash paid: | |||
Interest paid | 15,378,000 | 9,540,000 | 6,897,000 |
Income taxes | 1,716,000 | 1,047,000 | 4,114,000 |
Supplemental disclosures of noncash transactions: | |||
Loans charged off to the allowance for loan and lease losses | $ 4,954,000 | 12,769,000 | $ 1,452,000 |
Securities transferred from held-to-maturity to available-for-sale | 41,665,000 | ||
Loans transferred from held-for-sale to held-for-investment | $ 507,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements as of December 31, 2018 and 2017 and for each of the three years in the period ended December 31, 2018 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. 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. Business Combinations The Company accounts for business combinations using the acquisition method of accounting. The accounts of an acquired entity are included as of the date of acquisition, and any excess of purchase price over the fair value of the net assets acquired is capitalized as goodwill. Under this method, all identifiable assets acquired, including purchased loans, and liabilities assumed are recorded at fair value. The Company typically issues common stock and/or pays cash for an acquisition, depending on the terms of the acquisition agreement. The value of shares of common stock issued is determined based on the market price of the stock as of the closing of the acquisition. Nature of Operations Through the Bank, the Company provides full banking services to consumer and corporate customers located primarily 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 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 shares of preferred stock converted to shares of common stock and 79,166 from the cashless exercise of 250,000 common stock warrants. We received net proceeds of approximately $21.6 million from the offering, after deducting the underwriting discounts 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 losses, determination of impairment of intangible assets, including goodwill, the valuation of our investment portfolio and deferred tax assets. 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. If the Company sells loans with servicing rights retained, the carrying value of the mortgage loan sold is reduced by the amount allocated to the servicing right. Tri-Net Fees Tri-Net fees represent a line of business, implemented in the fourth quarter of 2016, which originates, with the intent to sell, commercial real estate loans to third-party investors. All of these loan sales transfer servicing rights to the buyer. 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 statements of income in Tri-Net fees, net of related costs such as commission expenses. Loans that have not been sold at period end are classified as held for sale on the balance sheet and recorded at the lower of aggregate cost or fair value. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. 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 completion and operation and/or sale 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 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 losses is not recorded on the acquisition date. An acquired loan is considered purchased credit 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. Purchased credit 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 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 losses The allowance for loan losses (“ALL”) is maintained at a level that management believes to be adequate to absorb expected loan losses inherent in the loan portfolio as of the balance sheet date. The allowance for loan losses is a valuation allowance for estimated credit losses inherent in the loan and lease portfolio, increased by the provision for loan 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 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 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 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 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 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 28 quarter look-back period as of December 31, 2016 and a 33 quarter look-back period as of December 31, 2017. Subsequently, the Company increased its look-back period for a total of 37 quarters as of December 31, 2018. In the current economic environment, management believes the extension of the look-back period was necessary 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. Servicing Rights When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in other noninterest income. Fair value is based on market prices for comparable mortgage servicing contracts, when available or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with other noninterest income on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is reported on the income statement within other noninterest income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal; or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Net servicing fees totaled $102,000 for the year ended December 31, 2018. There were no servicing fees for the years ended December 31, 2017 or 2016. Late fees and ancillary fees related to loan servicing are not material. 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, 2018, the deferred liability associated with these escalating rentals was approximately $639,000 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 six to ten 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 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, 2015 through 2018. 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 $383,000, $310,000 and $252,000 for the years ended December 31, 2018, 2017 and 2016, 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 earnin |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisition | NOTE 2 – ACQUISITIONS On October 1, 2018, the Company acquired 100% of the outstanding common shares of Athens Bancshares Company (“Athens”), the bank holding company for Athens Federal Community Bank, National Association (“Athens Federal”). Under the terms of the acquisition, Athens common shareholders received 2.864 shares of the Company’s common stock in exchange for each share of Athens common stock. With the acquisition, the Company further expanded its franchise into the East Tennessee market. Athens’ results of operations were included in the Company’s results beginning October 1, 2018. Acquisition related costs of $9,803,000 are included in the Company’s income statement for the year ended December 31, 2018. The fair value of the common shares issued as part of the consideration paid for Athens was determined by the closing price of the Company’s common shares immediately preceding the acquisition date. Goodwill of $31,291,000 arising from the acquisition consisted largely of synergies and the cost savings resulting from the combining of the operations of the companies. Goodwill associated with Athens acquisition is not amortizable for book or tax purposes. The following table summarizes the consideration paid for Athens and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date (in thousands): As recorded by Athens Bancshares Initial fair value adjustments Measurement period adjustments As recorded by CapStar Financial Holdings Assets: Cash and cash equivalents $ 12,053 $ — $ — $ 12,053 Securities 67,342 84 (a) — 67,426 Loans, gross 349,597 (4,764 ) (b) — 344,833 Allowance for loan losses (4,039 ) 4,039 (c) — — Premises and equipment, net 7,637 1,571 (d) — 9,208 Core deposit intangible 2,758 6,222 (e) — 8,980 Other 29,566 944 (f) — 30,510 Total $ 464,914 $ 8,096 $ — $ 473,010 Liabilities: Deposits $ 404,027 $ 493 (g) $ — $ 404,520 Other 5,363 1,500 (h) — 6,863 Total $ 409,390 $ 1,993 $ — $ 411,383 Net identifiable assets acquired $ 61,627 Total cost of acquisition: Value of stock issued $ 86,538 Value of rolled stock options 6,380 Total cost of acquisition $ 92,918 $ 92,918 Goodwill recorded related to acquisition $ 31,291 ________________________________________________________ (a) The amount represents the fair value adjustment of securities that were subsequently sold. (b) The amount represents the adjustment of the net book value of Athens’ loans to their estimated fair value based on interest rates and expected cash flows at the date of acquisition. (c) The amount represents the removal of Athens’ existing allowance for loan losses. (d) The amount represents the adjustment of the net book value of Athens’ premises and equipment to their estimated fair value. (e) The amount represents the net adjustment of removing Athens’ existing core deposit intangible from prior acquisitions and recording the fair value of the core deposit intangible representing the intangible value of the deposit base acquired and the fair value of the customer relationship. (f) The amount represents the net adjustment of the fair value of mortgage servicing rights acquired and the deferred tax asset recognized on the fair value adjustments on Athens acquired assets and assumed liabilities. (g) The amount represents the adjustment necessary because the weighted average interest rate of Athens’ time deposits exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio. (h) The amount represents the liability assumed in connection with the merger agreement whereby the Company will make a $1,500,000 charitable contribution to the Athens Foundation over a three year period. The following unaudited pro forma financial information presents the combined results of the Company and Athens as if the acquisition had occurred as of January 1, 2017, after giving effect to certain adjustments, including amortization of the core deposit intangible, and related income tax effects. The pro forma financial information does not necessarily reflect the results of operations that would have occurred had the Company and Athens constituted a single entity during such periods (in thousands, except share data): Pro forma combined twelve months ended December 31, 2018 Pro forma combined twelve months ended December 31, 2017 Net interest income $ 66,935 $ 59,148 Noninterest income 20,692 17,540 Total revenue 87,627 76,688 Net income 21,167 5,851 Per share information: Basic net income per share of common stock $ 1.24 $ 0.36 Diluted net income per share of common stock $ 1.14 $ 0.32 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 was as follows (in thousands): December 31, 2018 December 31, 2017 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 $ 11,053 $ — $ (347 ) $ 10,706 $ 11,433 $ 12 $ (168 ) $ 11,277 State and municipal securities 62,142 765 (981 ) 61,926 51,790 1,430 (222 ) 52,998 Mortgage-backed securities 146,547 776 (3,165 ) 144,158 108,236 40 (1,714 ) 106,562 Asset-backed securities 15,437 4 (157 ) 15,284 16,575 — (198 ) 16,377 Other debt securities 11,863 71 (200 ) 11,734 5,326 81 — 5,407 Total $ 247,042 $ 1,616 $ (4,850 ) $ 243,808 $ 193,360 $ 1,563 $ (2,302 ) $ 192,621 Securities held-to-maturity: State and municipal securities $ 3,734 $ 54 $ (3 ) $ 3,785 $ 3,759 $ 89 $ — $ 3,848 Total $ 3,734 $ 54 $ (3 ) $ 3,785 $ 3,759 $ 89 $ — $ 3,848 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. During the fourth quarter of 2017, approximately $41,665,000 of held to maturity securities were transferred to the available for sale category. The Company was able to make the transfer due to early adoption of ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The amortized cost and fair value of debt and equity securities at December 31, 2018, 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 in less than one year $ 3,561 $ 3,573 $ 395 $ 396 Due one to five years 23,294 23,472 3,339 3,389 Due five to ten years 45,662 45,367 — — Due beyond ten years 12,541 11,954 — — Mortgage-backed securities 146,547 144,158 — — Asset-backed securities 15,437 15,284 — — $ 247,042 $ 243,808 $ 3,734 $ 3,785 Results from sales of debt and equity securities were as follows (in thousands): Year ended December 31 2018 2017 2016 Proceeds $ 38,322 $ 46,762 $ 46,700 Gross gains 116 121 216 Gross losses (113 ) (190 ) (146 ) The table above does not include activity from maturities, prepayments or calls on debt or equity securities. Securities with a market value of $171,542,000 and $111,970,000 at December 31, 2018 and 2017, respectively, were pledged to collateralize public deposits, derivative positions and Federal Home Loan Bank advances. At December 31, 2018 and 2017 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, 2018 Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses U. S. government agency securities $ — $ — $ 10,706 $ (347 ) $ 10,706 $ (347 ) State and municipal securities 13,455 (212 ) 17,376 (772 ) 30,831 (984 ) Mortgage-backed securities 7,075 (17 ) 87,232 (3,148 ) 94,307 (3,165 ) Asset-backed securities 8,262 (145 ) 2,439 (12 ) 10,701 (157 ) Other debt securities 5,362 (200 ) — — 5,362 (200 ) Total temporarily impaired securities $ 34,154 $ (574 ) $ 117,753 $ (4,279 ) $ 151,907 $ (4,853 ) December 31, 2017 U. S. government agency securities $ 7,375 $ (90 ) $ 1,912 $ (78 ) $ 9,287 $ (168 ) State and municipal securities 7,490 (106 ) 5,798 (116 ) 13,288 (222 ) Mortgage-backed securities 29,832 (322 ) 67,813 (1,392 ) 97,645 (1,714 ) Asset-backed securities — — 16,377 (198 ) 16,377 (198 ) Other debt securities — — — — — — Total temporarily impaired securities $ 44,697 $ (518 ) $ 91,900 $ (1,784 ) $ 136,597 $ (2,302 ) 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, 2018. There were no other-than-temporary impairments for the years ended December 31, 2018 or 2017. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans and Allowance for Loan and Lease Losses | NOTE 4 – LOANS AND ALLOWANCE FOR LOAN LOSSES Loans at December 31, 2018 and 2017 were as follows (in thousands): December 31, 2018 December 31, 2017 Commercial real estate $ 550,446 $ 350,622 Consumer real estate 253,562 102,581 Construction and land development 174,670 82,586 Commercial and industrial 404,600 373,248 Consumer 25,615 6,862 Other 21,002 31,983 Total 1,429,895 947,882 Less net unearned income (101 ) (345 ) Total loans 1,429,794 947,537 Allowance for loan losses (12,113 ) (13,721 ) Total loans, net $ 1,417,681 $ 933,816 At December 31, 2018, variable-rate and fixed-rate loans totaled $827,491,000 and $602,404,000, respectively. At December 31, 2017, variable-rate and fixed-rate loans totaled $608,128,000 and $339,754,000, respectively. 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, 2018 and 2017 (in thousands): Non-impaired Loans December 31, 2018 Pass Special Mention Substandard Total Non-impaired Total Loans Total Commercial real estate $ 547,616 $ 177 $ 1,262 $ 549,055 $ 1,391 $ 550,446 Consumer real estate 249,273 1,676 1,691 252,640 922 253,562 Construction and land development 174,591 52 19 174,662 8 174,670 Commercial and industrial 388,719 7,790 6,545 403,054 1,546 404,600 Consumer 25,556 1 27 25,584 31 25,615 Other 21,002 — — 21,002 — 21,002 Total $ 1,406,757 $ 9,696 $ 9,544 $ 1,425,997 $ 3,898 $ 1,429,895 December 31, 2017 Commercial real estate $ 349,415 $ — $ — $ 349,415 $ 1,207 $ 350,622 Consumer real estate 102,571 — 10 102,581 — 102,581 Construction and land development 82,586 — — 82,586 — 82,586 Commercial and industrial 349,494 11,193 11,073 371,760 1,488 373,248 Consumer 6,849 — 13 6,862 — 6,862 Other 31,983 — — 31,983 — 31,983 Total $ 922,898 $ 11,193 $ 11,096 $ 945,187 $ 2,695 $ 947,882 None of the Company’s loans had a risk rating of “Doubtful” as of December 31, 2018 or 2017. The following tables detail the changes in the ALL for the years ending December 31, 2018, 2017 and 2016 by loan classification (in thousands): Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total Year ended December 31, 2018 Balance, beginning of period $ 3,324 $ 1,063 $ 1,628 $ 7,209 $ 91 $ 406 $ 13,721 Charged-off loans — — — (4,831 ) (84 ) (39 ) (4,954 ) Recoveries 22 4 — 395 75 8 504 Provision for loan losses (37 ) (62 ) 803 2,263 23 (148 ) 2,842 Balance, end of period $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Year ended December 31, 2017 Balance, beginning of period $ 2,655 $ 1,013 $ 1,574 $ 5,618 $ 76 $ 698 $ 11,634 Charged-off loans — — — (12,769 ) — — (12,769 ) Recoveries 9 — — 1,865 112 — 1,986 Provision for loan losses 660 50 54 12,495 (97 ) (292 ) 12,870 Balance, end of period $ 3,324 $ 1,063 $ 1,628 $ 7,209 $ 91 $ 406 $ 13,721 Year ended December 31, 2016 Balance, beginning of period $ 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 losses 74 45 660 1,858 69 123 2,829 Balance, end of period $ 2,655 $ 1,013 $ 1,574 $ 5,618 $ 76 $ 698 $ 11,634 A breakdown of the ALL and the loan portfolio by loan category at December 31, 2018 and 2017 follows (in thousands): Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total December 31, 2018 Allowance for Loan Losses: Collectively evaluated for impairment $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Individually evaluated for impairment — — — — — — — Balances, end of period $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Loans: Collectively evaluated for impairment $ 549,055 $ 252,640 $ 174,662 $ 403,054 $ 25,584 $ 21,002 $ 1,425,997 Individually evaluated for impairment 1,391 922 8 1,546 31 — 3,898 Balances, end of period $ 550,446 $ 253,562 $ 174,670 $ 404,600 $ 25,615 $ 21,002 $ 1,429,895 December 31, 2017 Allowance for Loan Losses: Collectively evaluated for impairment $ 3,324 $ 1,063 $ 1,628 $ 7,109 $ 91 $ 406 $ 13,621 Individually evaluated for impairment — — — 100 — — 100 Balances, end of period $ 3,324 $ 1,063 $ 1,628 $ 7,209 $ 91 $ 406 $ 13,721 Loans: Collectively evaluated for impairment $ 349,415 $ 102,581 $ 82,586 $ 371,760 $ 6,862 $ 31,983 $ 945,187 Individually evaluated for impairment 1,207 — — 1,488 — — 2,695 Balances, end of period $ 350,622 $ 102,581 $ 82,586 $ 373,248 $ 6,862 $ 31,983 $ 947,882 The following table presents the allocation of the ALL 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, 2018 and 2017 (dollars in thousands): December 31, 2018 December 31, 2017 Amount Percent of total loans, net of deferred fees Amount Percent of total loans, net of deferred fees Commercial real estate $ 3,309 0.23 % $ 3,324 0.35 % Consumer real estate 1,005 0.07 1,063 0.11 Construction and land development 2,431 0.17 1,628 0.17 Commercial and industrial 5,036 0.35 7,209 0.76 Consumer 105 0.01 91 0.01 Other 227 0.02 406 0.04 Total allowance for loan and lease losses $ 12,113 0.85 % $ 13,721 1.45 % The following table presents information related to impaired loans as of and for the years ended December 31, 2018 and 2017 (in thousands): December 31, 2018 December 31, 2017 Recorded investment Unpaid principal balance Related allowance Recorded investment Unpaid principal balance Related allowance With no related allowance recorded: Commercial real estate $ 1,391 $ 1,775 $ — $ 1,207 $ 1,645 $ — Consumer real estate 922 1,204 — — — — Construction and land development 8 18 — — — — Commercial and industrial 1,546 6,350 — — — — Consumer 31 56 — — — — Other — — — — — — Subtotal 3,898 9,403 — 1,207 1,645 — With an allowance recorded: Commercial real estate — — — — — — Consumer real estate — — — — — — Construction and land development — — — — — — Commercial and industrial — — — 1,488 2,770 100 Consumer — — — — — — Other — — — — — — Subtotal — — — 1,488 2,770 100 Total $ 3,898 $ 9,403 $ — $ 2,695 $ 4,415 $ 100 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. The following table presents information related to the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2018, 2017 and 2016 (in thousands): Year Ended Year Ended Year Ended December 31, 2018 December 31, 2017 December 31, 2016 Average recorded investment Interest income recognized Average recorded investment Interest income recognized Average recorded investment Interest income recognized With no related allowance recorded: Commercial real estate $ 1,198 $ 158 $ 1,258 $ — $ 655 $ — Consumer real estate 185 — — — 302 — Construction and land development 94 2 — — — — Commercial and industrial 5,557 121 — — — — Consumer 7 — — — 63 — Other — — — — — — Subtotal 7,041 281 1,258 — 1,020 — With an allowance recorded: Commercial real estate — — — — 974 — Consumer real estate — — — — — — Construction and land development — — — — — — Commercial and industrial — — 2,077 — 1,155 44 Consumer — — — — — — Other — — — — — — Subtotal — — 2,077 — 2,129 44 Total $ 7,041 $ 281 $ 3,335 $ — $ 3,149 $ 44 There was no interest income recognized on a cash basis for impaired loans for the years ended December 31, 2018, 2017 or 2016. 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, 2018 and 2017 by class of loans (in thousands): 30 - 59 60 - 89 Greater Than Days Days 89 Days Total Loans Not December 31, 2018 Past Due Past Due Past Due Past Due Past Due Total Commercial real estate $ 300 $ 227 $ — $ 527 $ 549,919 $ 550,446 Consumer real estate 69 75 775 919 252,643 253,562 Construction and land development — — — — 174,670 174,670 Commercial and industrial 54 — — 54 404,546 404,600 Consumer 52 — 43 95 25,520 25,615 Other — — — — 21,002 21,002 Total $ 475 $ 302 $ 818 $ 1,595 $ 1,428,300 $ 1,429,895 December 31, 2017 Commercial real estate $ — $ — $ — $ — $ 350,622 $ 350,622 Consumer real estate — — 218 218 102,363 102,581 Construction and land development — — — — 82,586 82,586 Commercial and industrial 1,967 209 — 2,176 371,072 373,248 Consumer — — 13 13 6,849 6,862 Other — — — — 31,983 31,983 Total $ 1,967 $ 209 $ 231 $ 2,407 $ 945,475 $ 947,882 The following table presents the recorded investment in non-accrual loans, past due loans over 89 days and accruing and troubled debt restructurings (“TDR”) by class of loans as of December 31, 2018 and 2017 (in thousands): Past Due Over 89 Troubled Debt Non-Accrual Days and Accruing Restructurings December 31, 2018 Commercial real estate $ — $ — $ 1,391 Consumer real estate 1,187 214 — Construction and land development 19 — — Commercial and industrial 817 — — Consumer 55 — — Other — — — Total $ 2,078 $ 214 $ 1,391 December 31, 2017 Commercial real estate $ 1,207 $ — $ 1,206 Consumer real estate — 218 — Construction and land development — — — Commercial and industrial 1,488 — — Consumer — 13 — Other — — — Total $ 2,695 $ 231 $ 1,206 As of December 31, 2018 and 2017 all loans classified as nonperforming were deemed to be impaired. As of December 31, 2018 and 2017 the Company had recorded investments in TDR of $2.1 million and $1.2 million, respectively. The Company did not allocate a specific allowance for those loans at December 31, 2018 or 2017 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 (in thousands). There were no TDR identified during the years ended December 31, 2018 or 2017. Year Ended December 31, 2016 Number of contracts Pre modification outstanding recorded investment Post modification outstanding recorded investment, net of related allowance 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 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 (in thousands). There were no TDR for which there was a payment default within the twelve months following the modification during the years ended December 31, 2018 or 2017. Year Ended December 31, 2016 Number of contracts Recorded investment Commercial real estate — $ — Consumer real estate — — Construction and land development — — Commercial and industrial — — Consumer 1 124 Other — — Total 1 $ 124 The consumer loan TDR that subsequently defaulted during the year ended December 31, 2016 had no specific reserve in the ALL and resulted in a $0.1 million charge-off. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. Acquired Loans On October 1, 2018, the Company acquired Athens (see Note 2 for more information). As a result of the acquisition, the Company recorded loans with a fair value of $344.8 million. Of those loans, $1.7 million were considered to be purchased credit impaired (“PCI”) loans, which are loans for which it is probable at the acquisition date that all contractually required payments will not be collected. The remaining loans are considered to be purchased non-impaired loans and their related fair value discount or premium is recognized as an adjustment to yield over the remaining life of each loan. The following table relates to acquired Athens PCI loans and summarizes the contractually required payments, which includes principal and interest, expected cash flows to be collected, and the fair value of acquired PCI loans at the acquisition date (in thousands): Athens Bancshares acquisition on October 1, 2018 Contractually required payments $ 3,151 Nonaccretable difference (1,049 ) Cash flows expected to be collected at acquisition 2,102 Accretable yield (436 ) Fair value of PCI loans at acquisition date $ 1,666 The following table relates to acquired Athens purchased non-impaired loans and provides the contractually required payments, fair value, and estimate of contractual cash flows not expected to be collected at the acquisition date (in thousands): Athens Bancshares acquisition on October 1, 2018 Contractually required payments $ 404,692 Fair value of acquired loans at acquisition date 343,167 Contractual cash flows not expected to be collected 1,807 The following table presents changes in the carrying value of PCI loans (in thousands): For the year ended December 31, 2018 Balance at beginning of period $ — Additions due to acquisition of Athens Bancshares 1,666 Change due to payments received and accretion (46 ) Change due to loan charge-offs — Other — Balance at end of period $ 1,620 The following table presents changes in the accretable yield for PCI loans (in thousands): For the year ended December 31, 2018 Balance at beginning of period $ — Additions due to acquisition of Athens Bancshares 436 Accretion (9 ) Reclassification from (to) nonaccretable difference — Other, net 13 Balance at end of period $ 440 PCI loans had no impact on the ALL for the years ended December 31, 2018, 2017 or 2016. 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, 2018 and 2017 were as follows (in thousands): December 31, 2018 December 31, 2017 Total minimum lease payments receivable $ 379 $ 714 Less: Unearned income (19 ) (49 ) Net leases $ 360 $ 665 The future minimum lease payments receivable under the direct financing leases as of December 31, 2018 were as follows (in thousands): Year ending December 31: 2019 $ 178 2020 167 2021 34 2022 — 2023 — $ 379 |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2018 | |
Transfers And Servicing [Abstract] | |
Loan Servicing | NOTE 5 – LOAN SERVICING Mortgage loans serviced for FHLMC are not reported as assets. The principal balance of these loans at December 31, 2018 was $170.1 million. These servicing rights were acquired in our acquisition of Athens. There were no mortgage loans serviced for others as of December 31, 2017. Custodial escrow balances maintained in connection with serviced loans was $462,000 at December 31, 2018. Activity for loan servicing rights and the related valuation allowance are summarized as follows (in thousands): For the year ended December 31, 2018 Loan servicing rights: Balance at beginning of period $ — Additions 1,809 Disposals — Amortized to offset other noninterest income (73 ) Change in valuation allowance — Balance at end of period $ 1,736 Valuation allowance: Balance at beginning of period $ — Additions expensed — Reductions credited to other noninterest income — Direct write-downs — Balance at end of period $ — |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | NOTE 6 – PREMISES AND EQUIPMENT Premises and equipment at December 31, 2018 and 2017 are summarized as follows (in thousands): Range of useful lives December 31, 2018 December 31, 2017 Land Not applicable $ 2,997 $ 1,180 Buildings 39 years 9,965 3,586 Leasehold improvements 1 to 17 years 939 777 Furniture and equipment 1 to 7 years 3,730 2,659 Fixed assets in process Not applicable 4,023 — 21,654 8,202 Less accumulated depreciation and amortization (2,833 ) (2,318 ) $ 18,821 $ 5,884 Premises and equipment depreciation and amortization expense for the years ended December 31, 2018, 2017 and 2016 totaled $516,000, $401,000 and $360,000, respectively. The Company leases certain properties under noncancelable lease arrangements. The leases have various terms, and maturity dates, including extensions through 2032. 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 2018, 2017 and 2016 totaled $1,677,000, $1,521,000 and $1,016,000 respectively. Future minimum payments under these operating leases as of December 31, 2018 are as follows (in thousands): Year ending December 31: 2019 $ 1,538 2020 1,539 2021 1,567 2022 1,453 2023 1,402 Thereafter 8,821 $ 16,320 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | NOTE 7 – GOODWILL AND INTANGIBLE ASSETS Goodwill The change in goodwill during the years ended December 31, 2018 and 2017 was as follows (in thousands): 2018 2017 Beginning of year $ 6,219 $ 6,219 Acquired goodwill 31,291 — Impairment — — End of year $ 37,510 $ 6,219 Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At October 31, 2018, 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, 2018 and 2017 were as follows (in thousands): December 31, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Core deposit intangibles $ 9,267 $ (729 ) $ 287 $ (264 ) Aggregate amortization expense was $465,000 for 2018, $48,000 for 2017 and $54,000 for 2016. Estimated amortization expense for each of the next five years is as follows (in thousands): Year ending December 31: 2019 $ 1,655 2020 1,477 2021 1,299 2022 1,121 2023 943 Thereafter 2,043 Total $ 8,538 |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2018 | |
Other Real Estate [Abstract] | |
Other Real Estate Owned | NOTE 8 – OTHER REAL ESTATE OWNED Other real estate owned activity was as follows (in thousands): 2018 2017 2016 Beginning balance $ — $ — $ 216 Additions due to acquisition of Athens Bancshares 988 — — Loans transferred to other real estate owned — — — Direct write-downs — — — Sales of other real estate owned — — (216 ) End of year $ 988 $ — $ — 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, 2018, 2017 and 2016, respectively (in thousands): 2018 2017 2016 Beginning balance $ — $ — $ 450 Additions/(recoveries) charged/(credited) to expense — — — Reductions from sales of other real estate owned — — (450 ) Direct write-downs — — — End of year $ — $ — $ — Expenses related to other real estate owned during the years ended December 31, 2018, 2017 and 2016, respectively include (in thousands): 2018 2017 2016 Net (gain) loss on sales $ — $ — $ (157 ) Provision for unrealized losses — — — Operating expenses, net of rental income — — 14 Total $ — $ — $ (143 ) |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Deposits | NOTE 9 – DEPOSITS Time deposits that exceed the FDIC deposit insurance limit of $250,000 at December 31, 2018 and 2017 were $98,086,000 and $54,460,000, respectively. Scheduled maturities of time deposits for the next five years and thereafter are as follows (in thousands): Maturity: 2019 $ 254,839 2020 57,800 2021 15,167 2022 12,068 2023 8,294 Thereafter 259 $ 348,427 At December 31, 2018 and 2017, the Company had $193,000 and $19,000, respectively of deposit accounts in overdraft status that were reclassified to loans in the accompanying balance sheets. |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 12 Months Ended |
Dec. 31, 2018 | |
Federal Home Loan Banks [Abstract] | |
Federal Home Loan Bank Advances | NOTE 10 – FEDERAL HOME LOAN BANK ADVANCES The Company had outstanding borrowings totaling $125,000,000 and $70,000,000 at December 31, 2018 and 2017, respectively, via various 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, 2018 December 31, 2017 Year Amount Interest Rates Amount Interest Rates 2017 $ — — $ — — 2018 — — 70,000 1.66 % 2019 125,000 2.48 % — — 2020 — — — — 2021 — — — — 2022 — — — — 2023 — — — — Thereafter — — — — Total $ 125,000 2.48 % $ 70,000 1.66 % Advances from the FHLB are collateralized by investment securities with a market value of $3.9 million, FHLB stock and certain commercial and residential real estate mortgage loans totaling $665.7 million under a blanket mortgage collateral agreement. At December 31, 2018, the amount of available credit from the FHLB totaled $71.9 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
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 ended December 31, 2018 and 2017 (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, 2018 Hedges Securities Held to Maturity Total Beginning Balance $ (3,679 ) $ 1,162 $ (10 ) $ (2,527 ) Other comprehensive income (loss) before reclassification, net of tax 1,891 (1,844 ) 20 67 Amounts reclassified from accumulated other comprehensive income (loss), net of tax (848 ) 2 (10 ) (856 ) Net current period other comprehensive income (loss) 1,043 (1,842 ) 10 (789 ) Ending Balance $ (2,636 ) $ (680 ) $ — $ (3,316 ) Year Ended December 31, 2017 Beginning Balance $ (4,241 ) $ (698 ) $ (1,212 ) $ (6,151 ) Other comprehensive income (loss) before reclassification, net of tax 1,499 3,077 235 4,811 Amounts reclassified for securities transferred from held-to-maturity to available-for-sale — (1,086 ) 1,086 — Amounts reclassified from accumulated other comprehensive income (loss), net of tax (770 ) (41 ) (117 ) (928 ) Net current period other comprehensive income (loss) 729 1,950 1,204 3,883 Reclassification of accumulated other comprehensive income due to tax rate change (167 ) (90 ) (2 ) (259 ) Ending Balance $ (3,679 ) $ 1,162 $ (10 ) $ (2,527 ) The following were significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the years ended December 31, 2018, 2017 and 2016 (in thousands): Affected Line Item Details about Accumulated Other Year Ended Year Ended Year Ended in the Statement Where Comprehensive Income Components December 31, 2018 December 31, 2017 December 31, 2016 Net Income is Presented Unrealized losses on cash flow hedges $ (441 ) $ (430 ) $ (151 ) Interest expense - money market (479 ) (429 ) (265 ) Interest expense - Federal Home Loan Bank advances 72 89 — Income tax benefit $ (848 ) $ (770 ) $ (416 ) Net of tax Unrealized gains and (losses) on available-for-sale securities $ 3 $ (66 ) $ 121 Net gain (loss) on sale of securities (1 ) 25 (46 ) Income tax (expense) benefit $ 2 $ (41 ) $ 75 Net of tax Unrealized losses on securities transferred to held-to-maturity $ (14 ) $ (190 ) $ (167 ) Interest income - securities 4 73 64 Income tax benefit $ (10 ) $ (117 ) $ (103 ) Net of tax |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12 – INCOME TAXES The components of income tax expense are summarized as follows (in thousands): 2018 2017 2016 Current: Federal $ 15 $ 214 $ 4,029 State (23 ) 36 759 (8 ) 250 4,788 Deferred: Federal 872 4,218 (395 ) State 303 167 100 1,175 4,385 (295 ) Total $ 1,167 $ 4,635 $ 4,493 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 21% to income before income taxes) for the years ended December 31, 2018, 2017 and 2016 is as follows (in thousands): 2018 2017 2016 Computed "expected" tax expense $ 2,272 $ 2,086 $ 4,621 State income taxes, net of effect of federal income taxes 221 134 567 Tax-exempt interest income (298 ) (418 ) (394 ) Earnings on bank owned life insurance contracts (559 ) (197 ) (204 ) Disallowed expenses 93 86 60 Excess tax benefits related to stock compensation (857 ) (632 ) — Write-down of deferred tax assets due to tax reform — 3,562 — Nondeductible merger expenses 281 — — Other 14 14 (157 ) Total $ 1,167 $ 4,635 $ 4,493 As a result of the Tax Cuts and Jobs Act of 2017 that was signed into law December 2017, the Company revalued its net deferred tax asset position. This revaluation resulted in a $3.6 million decrease in net deferred tax assets and a corresponding increase to income tax expense for the year ended December 31, 2017. Significant items that gave rise to deferred taxes at December 31, 2018 and 2017 were as follows (in thousands): December 31, 2018 December 31, 2017 Deferred tax assets: Allowance for loan losses $ 2,795 $ 3,227 Depreciation — — Net operating loss carryforward 2,002 843 Organization and preopening costs 457 557 Stock-based compensation 835 672 Acquired loans 1,319 124 Acquired deposits 106 22 Nonaccrual interest 75 25 Accrued incentive compensation 97 — Reserve for contingencies 143 496 Accrued contributions 207 169 Unrealized loss on securities available-for-sale 845 193 Unrealized loss on securities held-to-maturity — 4 Cash flow hedge 219 359 Accrued vacation 45 45 Other — 134 Deferred tax assets 9,145 6,870 Deferred tax liabilities: Prepaid expenses 77 134 Depreciation 645 39 Goodwill 81 138 Amortization of core deposit intangible 1,398 6 Other 334 — Deferred tax liabilities 2,535 317 Net deferred tax asset $ 6,610 $ 6,553 At December 31, 2018, the Company had federal net operating loss carryforwards of approximately $8,561,000, which expire at various dates from 2030 to 2032. Approximately $4,548,000 of the net operating loss carryforwards can be carried forward indefinitely. 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 were no significant unrecognized income tax benefits as of December 31, 2018 or 2017. As of December 31, 2018 and 2017, the Company had no accrued interest or penalties related to uncertain tax positions. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 (in thousands): Contract or notional amount December 31, 2018 December 31, 2017 Financial instruments whose contract amounts represent credit risk: Unused commitments to extend credit $ 707,675 $ 584,494 Standby letters of credit 12,273 11,552 Total $ 719,948 $ 596,046 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, 2018, 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, 2018 | |
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 areas. The concentrations of credit by type of loan are set forth in Note 4 to the financial statements. At December 31, 2018 and 2017, the Company’s cash and due from banks, federal funds sold and interest-bearing deposits in financial institutions aggregated $89,000,000 and $38,000,000, respectively, in excess of insured limits. |
Regulatory Matters And Restrict
Regulatory Matters And Restrictions On Dividends | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018, 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, 2018 and 2017, 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 (dollars in thousands): Actual Minimum capital requirement (1) Minimum to be well-capitalized (2) Amount Ratio Amount Ratio Amount Ratio At December 31, 2018: Total capital to risk-weighted assets: CapStar Financial Holdings, Inc. $ 222,030 12.8 % $ 138,336 8.0 % $ N/A N/A CapStar Bank 201,972 11.7 138,294 8.0 172,868 10.0 Tier I capital to risk-weighted assets: CapStar Financial Holdings, Inc. 209,738 12.1 103,752 6.0 N/A N/A CapStar Bank 189,680 11.0 103,721 6.0 138,294 8.0 Common equity Tier 1 capital to risk weighted assets: CapStar Financial Holdings, Inc. 200,738 11.6 77,814 4.5 N/A N/A CapStar Bank 173,180 10.0 77,791 4.5 112,364 6.5 Tier I capital to average assets: CapStar Financial Holdings, Inc. 209,738 11.1 75,867 4.0 N/A N/A CapStar Bank 189,680 10.0 75,828 4.0 94,785 5.0 At December 31, 2017: Total capital to risk-weighted assets: CapStar Financial Holdings, Inc. $ 156,176 12.5 % $ 99,932 8.0 % $ N/A N/A CapStar Bank 142,138 11.4 99,928 8.0 124,909 10.0 Tier I capital to risk-weighted assets: CapStar Financial Holdings, Inc. 142,276 11.4 74,949 6.0 N/A N/A CapStar Bank 128,238 10.3 74,946 6.0 99,928 8.0 Common equity Tier 1 capital to risk weighted assets: CapStar Financial Holdings, Inc. 133,445 10.7 56,212 4.5 N/A N/A CapStar Bank 111,907 9.0 56,209 4.5 81,191 6.5 Tier I capital to average assets: CapStar Financial Holdings, Inc. 142,276 10.7 53,218 4.0 N/A N/A CapStar Bank 128,238 9.6 53,215 4.0 66,519 5.0 (1) For the calendar year 2018, the Company was required to maintain a capital conservation buffer of Tier 1 common equity capital in excess of minimum risk-based capital ratios by at least 1.875% to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. (2) For the Company to be well-capitalized, the Bank must be well-capitalized and the Company must not be subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve to meet and maintain a specific capital level for any capital measure. 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 $22.2 million and $19.3 million of dividends as of December 31, 2018 and 2017, respectively. The Bank paid the Company $1.2 million of dividends during 2018 and this amount was paid out to shareholders by the Company during 2018. |
Nonvoting and Series A Preferre
Nonvoting and Series A Preferred Stock and Stock Warrants | 12 Months Ended |
Dec. 31, 2018 | |
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 were issued and simultaneously converted to common stock on a one-to-one basis as further described under “Warrants” below. At December 31, 2018 and 2017 there were 132,561 shares of nonvoting common stock outstanding. 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 were exercisable at any time and expired ten years from the date of grant of July 14, 2008. As of December 31, 2018, all of these warrants have been exercised and none 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 expired ten years from date of grant of July 14, 2008. As of December 31, 2018, all of these warrants have been exercised and no 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 expired ten years from date of grant of July 14, 2008. As of December 31, 2018, all of these warrants have been exercised and no warrants remain outstanding. |
Shareholders' Agreement
Shareholders' Agreement | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Agreement | NOTE 17 – SHAREHOLDERS’ AGREEMENT Pursuant to the terms of the SARSA, we received a request from certain shareholders party to the SARSA to register 3,652,094 shares of our common stock on a registration statement on Form S-3 (the “Registration Statement”) in December 2018. The Registration Statement was filed with the SEC on December 21, 2018. |
Stock Options and Restricted Sh
Stock Options and Restricted Shares | 12 Months Ended |
Dec. 31, 2018 | |
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. During 2018 the board of directors approved the addition of 400,000 shares of stock for issuance of stock incentives under the Plan. Total shares issuable under the plan are 422,900 at December 31, 2018. 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, 2018 2017 2016 Stock-based compensation expense before income taxes $ 2,079 $ 1,061 $ 842 Less: deferred tax benefit (543 ) (406 ) (322 ) Reduction of net income $ 1,536 $ 655 $ 520 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 2018 follows: Weighted Average Restricted Grant Date Nonvested Shares Shares Fair Value Nonvested at beginning of period 187,253 $ 14.21 Granted 140,131 16.73 Vested (161,604 ) 13.54 Forfeited (8,164 ) 15.92 Nonvested at end of period 157,616 $ 17.00 As of December 31, 2018, there was $1,814,000 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 2.1 years. The total fair value of shares vested during the years ended December 31, 2018, 2017 and 2016 was $2,804,000, $1,174,000 and $513,000, respectively. 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. At the time of issuance, the Company’s expected dividend yield was 0.00% because the Company had no current plan to pay dividends and historically had not paid dividends. 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. There were no options granted during 2018 or 2017. 2016 Dividend yield — Expected term (in years) 7.48 Expected stock price volatility 17.20 % Risk-free interest rate 1.66 % Pre-vest forfeiture rate 10.25 % A summary of the activity in stock options for 2018 follows: Weighted Weighted Average Average Remaining Exercise Contractual Shares Price Term (years) Outstanding at beginning of period 756,050 $ 10.50 Additions due to acquisition of Athens Bancshares 548,051 $ 5.06 Granted — — Exercised (796,198 ) 8.16 Forfeited or expired — — Outstanding at end of period 507,903 $ 8.66 4.0 Fully vested and expected to vest 506,783 $ 8.66 4.1 Exercisable at end of period 480,403 $ 8.46 4.0 Information related to stock options during 2018, 2017 and 2016 follows: 2018 2017 2016 Intrinsic value of options exercised $ 7,654,738 $ 2,010,536 $ 53,756 Cash received from option exercises 6,897,845 2,013,840 96,306 Tax benefit realized from option exercises 846,725 774,056 20,583 Weighted average fair value of options granted — — 3.16 As of December 31, 2018, there was $32,000 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 0.9 years. |
Employment Contracts
Employment Contracts | 12 Months Ended |
Dec. 31, 2018 | |
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. Most of the contracts have 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. 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, 2018 | |
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, 2018, 2017 and 2016, the Company contributed $639,000, $550,000 and $536,000, 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, 2018 | |
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 as of December 31, 2018 and 2017, 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, 2018 December 31, 2017 Notional amounts $ 20,000 $ 20,000 Weighted average pay rates 3.54 % 3.54 % Weighted average receive rates 3 month 3 month LIBOR Weighted average maturity 4.5 years 5.5 years Fair value $ (836 ) $ (1,375 ) Amount of unrealized loss recognized in accumulated other comprehensive income, net of tax $ (617 ) $ (849 ) Cash flows began on these forward starting interest rate swaps in 2017. As such, $275,000 and $233,000 of interest expense was recorded on these swap transactions during 2018 and 2017, respectively. 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 $2,038,000 at December 31, 2018. There was no collateral posted from the counterparties to the Company as of December 31, 2018. 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, 2018 December 31, 2017 Notional Estimated Notional Estimated amount fair value amount fair value Interest rate swap agreements: Pay fixed/receive variable swaps $ 29,126 $ 24 $ 41,863 $ 55 Pay variable/receive fixed swaps 29,126 (24 ) 41,863 (55 ) Total $ 58,252 $ — $ 83,726 $ — |
Related Party
Related Party | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 or 2017. Activity within these loans during the years ended December 31, 2018 and 2017 was as follows (in thousands): Total commitment Total funded commitment Year ended December 31, 2018 Beginning of period $ 49,409 $ 21,890 New commitments/draw downs 3,631 1,038 Repayments (8,228 ) (7,483 ) End of period $ 44,812 $ 15,445 Year ended December 31, 2017 Beginning of period $ 31,076 $ 20,325 New commitments/draw downs 21,203 4,320 Repayments (2,870 ) (2,755 ) End of period $ 49,409 $ 21,890 Deposits from directors, executive officers, significant shareholders and their affiliates at December 31, 2018 and 2017 were $11.4 million and $10.8 million, respectively. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 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 $ 10,706 $ — $ 10,706 $ — Obligations of states and political subdivisions 61,926 — 61,926 — Mortage-backed securities-residential 144,158 — 144,158 — Asset-backed securities 15,284 — 15,284 — Other debt securities 11,734 — 11,734 — Total securities available-for-sale $ 243,808 $ — $ 243,808 $ — Derivatives: Interest rate swaps - customer related $ 494 $ — $ 494 $ — Liabilities: Derivatives: Interest rate swaps - customer related $ (494 ) $ — $ (494 ) $ — Interest rate swaps - cash flow hedges (836 ) — (836 ) — Total derivatives $ (1,330 ) $ — $ (1,330 ) $ — Fair value measurements at December 31, 2017 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 $ 11,277 $ — $ 11,277 $ — Obligations of states and political subdivisions 52,998 — 52,998 — Mortage-backed securities-residential 106,562 — 106,562 — Asset-backed securities 16,377 — 16,377 — Other debt securities 5,407 — 5,407 — Total securities available-for-sale $ 192,621 $ — $ 192,621 $ — Derivatives: Interest rate swaps - customer related $ 184 $ — $ 184 $ — Liabilities: Derivatives: Interest rate swaps - customer related $ (184 ) $ — $ (184 ) $ — Interest rate swaps - cash flow hedges (1,375 ) — (1,375 ) — Total derivatives $ (1,559 ) $ — $ (1,559 ) $ — Assets measured at fair value on a nonrecurring basis are summarized below (in thousands). There were no assets measured at fair value on a nonrecurring basis at December 31, 2018: Fair value measurements at December 31, 2017 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 $ 1,388 $ — $ — $ 1,388 The following table presents quantitative information about Level 3 fair value measurements for assets measured at fair value on a nonrecurring basis (dollars in thousands). There were no assets measured at fair value on a nonrecurring basis at December 31, 2018: Range Fair Valuation Unobservable (Weighted- December 31, 2017 Value Technique(s) Input(s) Average) Impaired loans: Commercial and industrial $ 1,388 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, 2018, 2017 and 2016 were as follows (in thousands): December 31, 2018 December 31, 2017 Carrying Carrying Fair value amount Fair value amount Fair value level of input Financial assets: Cash and due from banks, interest-bearing deposits in financial institutions $ 94,681 $ 94,681 $ 78,078 $ 78,078 Level 1 Federal funds sold 10,762 10,762 4,719 4,719 Level 1 Securities available-for-sale 243,808 243,808 192,621 192,621 Level 2 Securities held-to-maturity 3,734 3,785 3,759 3,848 Level 2 Loans held for sale 57,618 58,596 74,093 75,549 Level 2 Restricted equity securities 12,038 N/A 8,806 N/A N/A Loans, net of unearned income 1,429,794 1,442,082 947,537 944,037 Level 3 Accrued interest receivable 5,964 5,964 4,084 4,084 Level 2 Other assets 34,489 34,489 22,663 22,663 Level 2 Financial liabilities: Deposits 1,570,008 1,504,101 1,119,866 1,065,669 Level 3 Federal Home Loan Bank advances 125,000 126,548 70,000 69,980 Level 2 Other liabilities 2,753 2,753 3,672 3,672 Level 3 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 During the first quarter of 2018, the Company adopted ASU 2016-01, “Recognition and Measurement of Financial Assets and Liabilities.” The amendments included within this standard, which are applied prospectively, require the Company to disclose fair value of financial instruments measured at amortized cost on the balance sheet to measure that fair value using an exit price notion. Prior to adopting the amendments included in the standard, the Company was allowed to measure fair value under an entry price notion. The entry price notion previously applied by the Company used a discounted cash flows technique to calculate the present value of expected future cash flows for a financial instrument. The exit price notion uses the same approach, but also incorporates other factors, such as enhanced credit risk, illiquidity risk and market factors that sometimes exist in exit prices in dislocated markets. As of December 31, 2018, the technique used by the Company to estimate the exit price of the loan portfolio consists of similar procedures to those used as of December 31, 2017 and 2016, but with added emphasis on both illiquidity risk and credit risk not captured by the previously applied entry price notion. The fair value of the Company’s loan portfolio has always included 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 as described above. However, under the new guidance, the Company believes a further credit risk discount must be applied through the use of a discounted cash flow model to compensate for illiquidity risk, based on certain assumptions included within the discounted cash flow model, primarily the use of discount rates that better capture inherent credit risk over the lifetime of a loan. This consideration of enhanced credit risk provides an estimated exit price for the Company’s loan portfolio. 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. As of December 31, 2018, 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 as of December 31, 2017. (e) Accrued interest receivable The carrying amount of accrued interest approximates fair value. (f) Other Assets Included in other assets are bank owned life insurance, 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. For bank owned life insurance, the carrying amount is based on the cash surrender value and is a reasonable estimate of fair value. (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) 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. (i) Other Liabilities Included in other liabilities are accrued interest payable, 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. The carrying amounts of accrued interest approximate fair value. (j) 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. (k) 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, 2018 | |
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, 2018 and 2017 (in thousands). Condensed Balance Sheets December 31, 2018 December 31, 2017 Assets Cash and cash equivalents $ 19,918 $ 14,108 Investment in consolidated subsidiary 234,263 132,909 Other assets 499 61 Total assets $ 254,680 $ 147,078 Liabilities and Shareholders’ Equity Other liabilities $ 301 132 Total shareholders’ equity 254,379 146,946 Total liabilities and shareholders’ equity $ 254,680 $ 147,078 Condensed Income Statements Year Ended Year Ended December 31, 2018 December 31, 2017 Income - dividends from subsidiary $ 1,225 $ — Expenses 1,054 879 Income before income taxes and equity in undistributed net income of subsidiary 171 (879 ) Income tax benefit (242 ) (256 ) Income (loss) before equity in undistributed net income of subsidiary 413 (623 ) Equity in undistributed net income of subsidiary 9,242 2,124 Net income $ 9,655 $ 1,501 Condensed Statements of Cash Flows Year Ended Year Ended December 31, 2018 December 31, 2017 Cash flows from operating activities: Net income $ 9,655 $ 1,501 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Increase in other assets (221 ) (62 ) Increase in other liabilities 169 77 Equity in undistributed net income of subsidiary (9,242 ) (2,124 ) Net cash provided by (used in) operating activities 361 (608 ) Cash flows from investing activities: Investments in subsidiary — (10,000 ) Cash received from acquisitions, net 1,421 — Net cash provided by (used in) investing activities 1,421 (10,000 ) Cash flows from financing activities: Issuance of common stock — — Exercise of common stock options and warrants, net of repurchase of restricted shares 5,260 1,764 Common and preferred stock dividends paid (1,232 ) Net cash provided by financing activities 4,028 1,764 Net increase (decrease) in cash and cash equivalents 5,810 (8,844 ) Cash and cash equivalents at beginning of period 14,108 22,952 Cash and cash equivalents at end of period $ 19,918 $ 14,108 |
Quarterly Financial Results (Un
Quarterly Financial Results (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018, 2017 and 2016: First Quarter Second Quarter Third Quarter Fourth Quarter 2018 Interest income $ 13,744 $ 15,354 $ 15,782 $ 22,900 Interest expense 2,898 3,767 4,239 5,184 Net interest income 10,846 11,587 11,543 17,716 Provision for loan losses 678 169 481 1,514 Net interest income after provision for loan losses 10,168 11,418 11,062 16,202 Noninterest income 3,088 2,765 3,218 6,387 Noninterest expense 9,580 10,005 10,070 23,832 Net income (loss) before income tax expense 3,676 4,178 4,210 (1,243 ) Income tax expense (benefit) 483 665 554 (535 ) Net income (loss) $ 3,193 $ 3,513 $ 3,656 $ (708 ) Net income (loss) per share, basic $ 0.27 $ 0.30 $ 0.30 $ (0.04 ) Net income (loss) per share, diluted $ 0.25 $ 0.27 $ 0.28 $ (0.04 ) 2017 Interest income $ 11,979 $ 12,891 $ 13,521 $ 13,124 Interest expense 2,047 2,320 2,678 2,606 Net interest income 9,932 10,571 10,843 10,518 Provision for loan losses 3,405 9,690 (195 ) (30 ) Net interest income after provision for loan losses 6,527 881 11,038 10,548 Noninterest income 2,133 2,666 3,372 2,736 Noninterest expense 8,376 8,217 8,475 8,699 Net income (loss) before income tax expense 284 (4,670 ) 5,935 4,585 Income tax expense (benefit) (47 ) (1,328 ) 1,516 4,494 Net income (loss) $ 331 $ (3,342 ) $ 4,419 $ 91 Net income (loss) per share, basic $ 0.03 $ (0.30 ) $ 0.39 $ 0.01 Net income (loss) per share, diluted $ 0.03 $ (0.26 ) $ 0.35 $ 0.01 2016 Interest income $ 10,598 $ 10,915 $ 11,875 $ 12,007 Interest expense 1,642 1,714 1,749 1,827 Net interest income 8,956 9,201 10,126 10,180 Provision for loan losses 937 183 1,639 70 Net interest income after provision for loan losses 8,019 9,018 8,487 10,110 Noninterest income 2,371 2,568 3,191 2,954 Noninterest expense 8,010 7,951 8,527 8,642 Net income before income tax expense 2,380 3,635 3,151 4,422 Income tax expense 796 1,159 1,042 1,495 Net income $ 1,584 $ 2,476 $ 2,109 $ 2,927 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 |
Schedule I - Athens Bancshares
Schedule I - Athens Bancshares Corporation & Subsidiary - Unaudited Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Athens Bancshares Corporation & Subsidiary | |
Restructuring Cost And Reserve [Line Items] | |
Unaudited Financial Statements | Athens Bancshares Corporation & Subsidiary Unaudited Consolidated Balance Sheet (Dollars in thousands, except share data) September 30, 2018 Assets Cash and due from banks $ 6,489 Interest-bearing deposits in financial institutions 4,495 Federal funds sold 1,069 Total cash and cash equivalents 12,053 Securities available-for-sale, at fair value 67,342 Loans held for sale 476 Loans 349,121 Less allowance for loan losses (4,039 ) Loans, net 345,082 Premises and equipment, net 7,637 Restricted equity securities 3,220 Accrued interest receivable 1,410 Core deposit intangible, net 2,758 Other real estate owned, net 988 Other assets 23,948 Total assets $ 464,914 Liabilities and Shareholders’ Equity Deposits: Non-interest-bearing $ 58,523 Interest-bearing 114,988 Savings and money market accounts 115,327 Time 115,189 Total deposits 404,027 Other liabilities 5,363 Total liabilities 409,390 Shareholders’ equity: Preferred stock, $.01 par value; 10,000,000 shares authorized; none issued — Common stock, voting, $.01 par value; 50,000,000 shares authorized; 1,809,358 shares issued and outstanding 18 Additional paid-in capital 21,788 Retained earnings 35,273 Accumulated other comprehensive loss, net of income tax (1,555 ) Total shareholders’ equity 55,524 Total liabilities and shareholders’ equity $ 464,914 See accompanying notes to consolidated financial statements. Athens Bancshares Corporation & Subsidiary Unaudited Consolidated Statement of Income (Dollars in thousands, except share data) For the Nine Months Ended September 30, 2018 Interest income: Loans, including fees $ 13,443 Securities: Taxable 772 Tax-exempt 593 Federal funds sold 135 Restricted equity securities 339 Interest-bearing deposits in financial institutions 183 Total interest income 15,465 Interest expense: Interest-bearing deposits 386 Savings and money market accounts 27 Time deposits 990 Note payable to bank 9 Total interest expense 1,412 Net interest income 14,053 Provision for loan losses 146 Net interest income after provision for loan losses 13,907 Noninterest income: Treasury management and other deposit service charges 2,184 Mortgage banking income 842 Other noninterest income 2,207 Total noninterest income 5,233 Noninterest expense: Salaries and employee benefits 7,065 Data processing and software 1,138 Professional fees 532 Occupancy 1,112 Equipment 568 Regulatory fees 269 Merger related expenses 4,731 Amortization of intangibles 273 Other operating 2,074 Total noninterest expense 17,762 Income before income taxes 1,378 Income tax expense 753 Net income $ 625 Per share information: Basic net income per share of common stock $ 0.36 Diluted net income per share of common stock $ 0.35 Weighted average shares outstanding: Basic 1,725,105 Diluted 1,802,595 See accompanying notes to consolidated financial statements. Athens Bancshares Corporation & Subsidiary Unaudited Consolidated Statement of Comprehensive Loss (Dollars in thousands) For the Nine Months Ended September 30, 2018 Net income $ 625 Other comprehensive loss: Unrealized losses on securities available-for-sale: Unrealized holding losses arising during the period (1,912 ) Tax effect 500 Other comprehensive loss (1,412 ) Comprehensive loss $ (787 ) See accompanying notes to consolidated financial statements. Athens Bancshares Corporation & Subsidiary Unaudited Consolidated Statement of Changes in Shareholders’ Equity (Dollars in thousands, except share data) For the Nine Months Ended September 30, 2018 Common stock, voting (shares) Common stock, voting (amount) Additional paid-in capital Common stock acquired by benefit plans Retained earnings Accumulated other comprehensive loss Total shareholders' equity Balance December 31, 2017 1,806,084 $ 18 $ 18,800 $ (1,037 ) $ 34,906 $ (143 ) $ 52,544 Stock-based compensation expense — — 83 — — — 83 Exercise of common stock options, net of withholdings to satisfy employee tax obligations 25,663 — 295 — — — 295 Shares released by ESOP trust and termination of ESOP (22,389 ) — 2,610 1,037 — — 3,647 Common and preferred stock dividends declared — — — — (258 ) — (258 ) Net income — — — — 625 — 625 Other comprehensive loss — — — — — (1,412 ) (1,412 ) Balance September 30, 2018 1,809,358 $ 18 $ 21,788 $ — $ 35,273 $ (1,555 ) $ 55,524 See accompanying notes to consolidated financial statements. Athens Bancshares Corporation & Subsidiary Unaudited Consolidated Statement of Cash Flows (Dollars in thousands) For the Nine Months Ended September 30, 2018 Cash flows from operating activities: Net income $ 625 Adjustments to reconcile net income to net cash used in operating activities: Provision for loan losses 146 Depreciation and amortization 591 Net amortization of premiums on investment securities 218 Mortgage banking income (842 ) Net gain on sale of other real estate owned (74 ) Stock-based compensation 83 Deferred income tax benefit (630 ) Origination of loans held for sale (13,333 ) Proceeds from loans held for sale 13,699 Net increase in accrued interest receivable and other assets (7,721 ) Net decrease in accrued interest payable and other liabilities (1,941 ) Net cash used in operating activities (9,179 ) Cash flows from investing activities: Activities in securities available-for-sale: Maturities, prepayments and calls 7,336 Purchase of restricted equity securities 1,260 Net increase in loans (25,999 ) Purchase of premises and equipment (716 ) Net cash used in investing activities (18,119 ) Cash flows from financing activities: Net increase in deposits 1,004 Payments on note payable to bank (1,383 ) Exercise of common stock options 295 Common and preferred stock dividends paid (258 ) Termination of ESOP 3,647 Net decrease in repurchase agreements (463 ) Net cash provided by financing activities 2,842 Net decrease in cash and cash equivalents (24,456 ) Cash and cash equivalents at beginning of period 36,509 Cash and cash equivalents at end of period $ 12,053 Supplemental disclosures of cash paid: Interest paid $ 1,445 Income taxes 1,645 See accompanying notes to consolidated financial statements. Athens Bancshares Corporation & Subsidiary Notes to Consolidated Financial Statements NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements as of and for the period ended September 30, 2018 include Athens Bancshares Corporation and its wholly owned subsidiary, Athens Federal Community Bank, NA (the “Bank”, together referred to as the “Company”). Significant intercompany transactions and accounts are eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X as promulgated by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation of the financial condition and results of operations for the periods presented have been included. Operating results for the nine months ended September 30, 2018, are not necessarily indicative of the results that may be expected for the full year or in any other period. Use of Estimates The preparation of financial statements in conformity with U.S. 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 losses (“ALL”), the valuation of our investment portfolio and deferred tax assets. There have been no significant changes to the Company’s critical accounting policies as disclosed in the Company’s Annual Report for the year ended December 31, 2017. Subsequent Events Accounting Standards Codification (“ASC”) 855, Subsequent Events, establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. The Company evaluated all events or transactions that occurred after September 30, 2018 through the date of the issued financial statements. NOTE 2 – LOANS AND ALLOWANCE FOR LOAN LOSSES A summary of the loan portfolio as of September 30, 2018 follows (dollars in thousands): Commercial real estate $ 117,744 Consumer real estate 138,255 Construction and land development 51,872 Commercial and industrial 23,885 Consumer and other 18,548 Total 350,304 Less net unearned income (1,183 ) Total loans 349,121 Allowance for loan losses (4,039 ) Total loans, net $ 345,082 The following tables detail the changes in the ALL for the nine months ended September 30, 2018 (dollars in thousands): Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer and other Total Balance, beginning of period $ 1,333 $ 1,011 $ 206 $ 474 $ 937 $ 3,961 Charged-off loans — — — — (181 ) (181 ) Recoveries 20 17 1 — 75 113 Provision for loan losses (3 ) 260 17 (76 ) (52 ) 146 Balance, end of period $ 1,350 $ 1,288 $ 224 $ 398 $ 779 $ 4,039 A breakdown of the ALL and the loan portfolio by loan category at September 30, 2018 follows (dollars in thousands): Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer and other Total Allowance for Loan Losses: Collectively evaluated for impairment $ 1,284 $ 1,288 $ 224 $ 356 $ 777 $ 3,929 Individually evaluated for impairment 66 — — 42 2 110 Balances, end of period $ 1,350 $ 1,288 $ 224 $ 398 $ 779 $ 4,039 Loans: Collectively evaluated for impairment $ 117,562 $ 136,983 $ 51,850 $ 22,370 $ 18,480 $ 347,245 Individually evaluated for impairment 182 1,272 22 1,515 68 3,059 Balances, end of period $ 117,744 $ 138,255 $ 51,872 $ 23,885 $ 18,548 $ 350,304 The following table presents the Company’s impaired loans that were evaluated for specific loss allowance as of September 30, 2018 (dollars in thousands): Recorded investment Unpaid principal balance Related allowance With no related allowance recorded: Commercial real estate $ — $ — $ — Consumer real estate 1,272 1,272 — Construction and land development 22 22 — Commercial and industrial — — — Consumer — — — Other — — — Subtotal 1,294 1,294 — With an allowance recorded: Commercial real estate 182 182 66 Consumer real estate — — — Construction and land development — — — Commercial and industrial 1,515 1,515 42 Consumer 68 68 2 Other — — — Subtotal 1,765 1,765 110 Total $ 3,059 $ 3,059 $ 110 The following table presents the recorded investment in non-accrual loans, past due loans over 89 days outstanding and accruing and troubled debt restructurings (“TDR”) by class of loans as of September 30, 2018 (dollars in thousands): Past Due Over 89 Troubled Debt Non-Accrual Days and Accruing Restructurings Commercial real estate $ — $ — $ 182 Consumer real estate 987 — 783 Construction and land development 21 — — Commercial and industrial — — 1,510 Consumer and other 64 — 20 Total $ 1,072 $ — $ 2,495 NOTE 3 – STOCK OPTIONS 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 statement of income as follows for the nine months ended September 30, 2018 (dollars in thousands): Stock-based compensation expense before income taxes $ 83 Less: deferred tax benefit (22 ) Reduction of net income $ 61 A summary of the activity in stock options for the nine months ended September 30, 2018 follows: Weighted Weighted Average Average Remaining Exercise Contractual Shares Price Term (years) Outstanding at beginning of period 217,024 $ 14.12 Granted — — Exercised (25,663 ) 11.50 Forfeited or expired — — Outstanding at end of period 191,361 $ 14.48 3.1 Fully vested and expected to vest 191,361 $ 14.48 3.1 Exercisable at end of period 191,361 $ 14.48 3.1 Information related to stock options for the nine months ended September 30, 2018 follows: Intrinsic value of options exercised $ 1,038,000 Cash received from option exercises 295,000 Tax benefit realized from option exercises 189,000 Weighted average fair value of options granted — NOTE 4 – EARNINGS PER SHARE The following is a summary of the basic and diluted earnings per share calculation for the nine months ended September 30, 2018 (dollars in thousands, except share data): Basic net income per share calculation: Numerator – Net income $ 625 Denominator – Average common shares outstanding 1,725,105 Basic net income per share $ 0.36 Diluted net income per share calculation: Numerator – Net income $ 625 Denominator – Average common shares outstanding 1,725,105 Dilutive shares contingently issuable 77,490 Average diluted common shares outstanding 1,802,595 Diluted net income per share $ 0.35 NOTE 5 – EMPLOYEE STOCK OWNERSIP PLAN The Bank sponsored a leveraged ESOP that covered substantially all employees who met certain age and eligibility requirements. The ESOP purchased 222,180 shares with the proceeds of a 15 year loan from the Company which was payable in annual installments and bore interest at 3.25% per annum. ESOP shares are held by the plan trustee in a suspense account until allocated to participant accounts. Shares released from the suspense account are allocated to participants on the basis of their relative compensation in the year of allocation. Participants become vested in the allocated shares upon four years of employment with the Bank. Any forfeited shares are allocated to other participants in the same proportion as contributions. As ESOP shares are allocated to participants, the Bank recognizes compensation expense equal to the fair value of the earned ESOP shares. As of September 30, 2018 the Bank terminated the ESOP, allocated all unallocated shares to participants and paid of the loan to the Company. For the nine months ended September 30, 2018, the Bank recognized $3.6 million in compensation expense related to terminating the ESOP and allocating the remaining shares to participants. NOTE 6 – SUBSEQUENT EVENT On October 1, 2018, pursuant to the Agreement and Plan of Merger, dated as of June 11, 2018 (the “Merger Agreement”), by and between CapStar Financial Holdings, Inc., a Tennessee corporation (“CapStar”), and Athens Bancshares Corporation, a Tennessee corporation (“Athens”), Athens was merged with and into CapStar, with CapStar continuing as the surviving entity (the “Merger”). Immediately following the Merger, Athens Federal Community Bank, National Association, a wholly owned subsidiary of Athens, merged with and into CapStar Bank, a wholly owned subsidiary of CapStar (the “Bank Merger”), with CapStar Bank continuing as the surviving entity in the Bank Merger. On the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each share of common stock, par value $0.01, of Athens (“Athens Common Stock”) issued and outstanding immediately prior to the completion of the merger (other than dissenting shares and shares of Athens common stock owned directly or indirectly by Athens, CapStar and their wholly owned subsidiaries (in each case, other than shares of Athens common stock held in a fiduciary capacity or in connection with debts previously contracted) was converted into the right to receive 2.864 shares (the “Exchange Ratio”) of voting common stock, par value $1.00 per share, of CapStar (“CapStar Common Stock”), with cash paid in lieu of fractional shares. This resulted in the issuance of 5,181,916 shares of CapStar common stock on October 1, 2018. At the Effective Time, each outstanding and unexercised Athens stock option granted under the Athens Bancshares Corporation 2010 Equity Incentive Plan (the “Athens Equity Plan”) that was held by an employee or service provider of Athens who had terminated service prior to the Effective Time was cancelled and converted into the right to receive the cash value of the merger consideration (determined in accordance with the terms of the Merger Agreement), less the applicable option exercise price and less applicable withholding taxes. Except as described in the prior sentence, each outstanding and unexercised Athens stock option granted under the Athens Equity Plan was converted into an option to purchase shares of CapStar Common Stock, with the number of shares and exercise price adjusted to reflect the Exchange Ratio in accordance with the terms of the Merger Agreement. The converted options resulted in the right to purchase 548,051 shares of CapStar Common Stock at a weighted average exercise price of $5.06. Total acquisition consideration resulting from the Merger amounted to approximately $92.9 million. The foregoing description of the Merger Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Merger Agreement, a copy of which was attached as Exhibit 2.1 to CapStar’s Form 8-K filed with the U.S. Securities and Exchange Commission on June 14, 2018 and the terms of which are incorporated herein by reference. |
Schedule II - Unaudited Pro For
Schedule II - Unaudited Pro Forma Combined Consolidated Financial Information of Capstar Financial Holdings, Inc. and Athens Bancshares Corporation | 12 Months Ended |
Dec. 31, 2018 | |
Pro Forma Combined Consolidated Financial Information Disclosure [Abstract] | |
Schedule II - Unaudited Pro Forma Combined Consolidated Financial Information of Capstar Financial Holdings, Inc. and Athens Bancshares Corporation | SCHEDULE II—UNAUDITED PRO FORMA COMBINED CONSOLIDATED FINANCIAL INFORMATION OF CAPSTAR FINANCIAL HOLDINGS, INC. AND ATHENS BANCSHARES CORPORATION The following unaudited pro forma combined consolidated financial information and accompanying notes showing the impact on the historical financial conditions and results of operations of CapStar and Athens have been prepared to illustrate the effects of the merger under the acquisition method of accounting. See “The Merger — Accounting Treatment.” The unaudited pro forma combined consolidated income statement for the year ended December 31, 2018 is presented as if the merger had occurred on January 1, 2018. The historical consolidated financial information has been adjusted to reflect factually supportable items that are directly attributable to the merger and, with respect to the income statement only, expected to have a continuing impact on consolidated results of operations, as such, one-time merger costs are not included. The unaudited pro forma combined consolidated financial statement is provided for informational purposes only. The unaudited pro forma combined consolidated financial statements is not necessarily, and should not be assumed to be, an indication of the results that would have been achieved had the merger been completed as of the dates indicated or that may be achieved in the future. The preparation of the unaudited pro forma combined consolidated financial statement and related adjustments required management to make certain assumptions and estimates. The unaudited pro forma combined consolidated financial statements should be read together with: • the accompanying notes to the unaudited pro forma combined consolidated financial statement; • CapStar’s audited consolidated financial statements and accompanying notes as of and for the twelve months ended December 31, 2018, included in CapStar’s Annual Report on Form 10-K for the year ended December 31, 2018; • CapStar’s Quarterly Report on Form 10-Q for the three months ended September 30, 2018, which is incorporated by reference into this joint proxy statement/prospectus; • Athens’ audited consolidated financial statements and accompanying notes as of and for the year ended December 31, 2017; • Athens’ unaudited consolidated financial statements and accompanying notes as of and for the nine months ended September 30, 2018; • other information pertaining to CapStar and Athens incorporated by reference into, or included in, this joint proxy statement/prospectus. See “Selected Historical Consolidated Financial Data of CapStar,” “Selected Historical Consolidated Financial Data of Athens,” “Documents Incorporated by Reference” and “Index to Athens’s Consolidated Financial Statements.” Unaudited Pro Forma Combined Consolidated Statement of Income For the year ended December 31, 2018 (in thousands, except per share data) CapStar, as reported, For the Nine Months Ended September 30, 2018 Athens, as reported, for the Nine Months Ended September 30, 2018 CapStar, as reported, for the Three Months Ended December 31, 2018 Pro Forma Adjustments Pro Forma Combined For the Year Ended December 31, 2018 Interest income: Loans, including fees $ 40,197 $ 13,443 $ 20,554 $ 1,003 b,f $ 75,197 Securities: Taxable 2,775 772 1,411 — 4,958 Tax-exempt 784 593 416 — 1,793 Federal funds sold 56 135 8 — 199 Restricted equity securities 389 339 181 — 909 Interest-bearing deposits in financial institutions 679 183 330 — 1,192 Total interest income 44,880 15,465 22,900 1,003 84,248 Interest expense: Deposits 9,088 1,403 4,462 (178 ) e 14,775 Federal funds purchased 3 — — — 3 Securities sold under agreements to repurchase — — 3 3 Federal Home Loan Bank advances 1,813 — 719 — 2,532 Note payable to bank — 9 — (9 ) b — Total interest expense 10,904 1,412 5,184 (187 ) 17,313 Net interest income 33,976 14,053 17,716 1,190 66,935 Provision for loan losses 1,328 146 1,514 — 2,988 Net interest income after provision for loan losses 32,648 13,907 16,202 1,190 63,947 Noninterest income: Treasury management and other deposit service charges 1,357 2,184 793 — 4,334 Net gain (loss) on sale of securities 2 — 1 — 3 Tri-Net fees 1,227 — 276 — 1,503 Mortgage banking income 4,329 842 1,324 — 6,495 Other noninterest income 2,157 2,207 3,993 — 8,357 Total noninterest income 9,072 5,233 6,387 — 20,692 Noninterest expense: Salaries and employee benefits 19,111 7,065 9,475 — 35,651 Data processing and software 2,411 1,138 1,424 — 4,973 Professional fees 1,074 532 534 — 2,140 Occupancy 1,600 1,112 736 — 3,448 Equipment 1,661 568 810 — 3,039 Regulatory fees 664 269 364 — 1,297 Merger related expenses 875 4,731 8,929 (14,535 ) a — Other operating 2,259 2,347 1,560 985 c,d 7,151 Total noninterest expense 29,655 17,762 23,832 (13,550 ) 57,699 Income before income taxes 12,065 1,378 (1,243 ) 14,740 26,940 Income tax expense (benefit) 1,702 753 (535 ) 3,853 g 5,773 Net income $ 10,363 $ 625 $ (708 ) $ 10,887 $ 21,167 Per share information: Basic net income per share of common stock $ 0.87 $ 0.36 $ (0.04 ) $ — $ 1.24 Diluted net income per share of common stock $ 0.79 $ 0.35 $ (0.04 ) $ — $ 1.14 Weighted average shares outstanding: Basic 11,851,476 1,725,105 17,509,525 3,456,811 17,033,392 Diluted 13,052,758 1,802,595 18,716,562 3,761,316 18,616,669 See accompanying notes to Unaudited Pro Forma Combined Consolidated Financial Information NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENT (all amounts are in thousands, except per share data, unless otherwise indicated) Note 1—Basis of Pro Forma Presentation The unaudited pro forma combined income statement for the year ended December 31, 2018 is based on the historical financial statements of CapStar and Athens after giving effect to the completion of the mergers and the assumptions and adjustments described in the accompanying notes. Such financial statements do not reflect cost savings or operating synergies expected to result from the mergers, or the costs to achieve these cost savings or operating synergies, or any anticipated disposition of assets that may result from the integration of the operations of the three companies. Certain historical financial information has been reclassified to conform to the current presentation. The transactions will be accounted for under the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”). In business combination transactions in which the consideration given is not in the form of cash (that is, in the form of non-cash assets, liabilities incurred, or equity interests issued), measurement of the acquisition consideration is based on the fair value of the consideration given or the fair value of the asset (or net assets) acquired, whichever is more clearly evident and, thus, a more reliable measure. Under ASC 805, all of the assets acquired and liabilities assumed in a business combination are recognized at their acquisition-date fair value, while transaction costs and restructuring costs associated with the business combination are expensed as incurred. The excess of the acquisition consideration over the fair value of assets acquired and liabilities assumed, if any, is allocated to goodwill. Changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date generally affect income tax expense. Subsequent to the completion of the merger, CapStar and Athens will finalize an integration plan, which may affect how the assets acquired, including intangible assets, will be utilized by the combined company. For those assets in the combined company that will be phased out or will no longer be used, additional amortization, depreciation and possibly impairment charges will be recorded after management completes the integration plan. The unaudited pro forma information is presented solely for informational purposes and is not necessarily indicative of the combined results of operations or financial position that might have been achieved for the periods or dates indicated, nor is it necessarily indicative of the future results of the combined company. Note 2—Acquisition Consideration Under the terms of the Athens Merger Agreement, Athens shareholders received 2.864 shares of CapStar common stock for each share of Athens common stock. A s of October 1, 2018, the acquisition consideration was as follows. (dollars are in thousands, except per share data) Total number of common shares as provided by Athens management 1,809,358 Total number of Athens common stock to exchange 1,809,358 Per share exchange ratio 2.864 Number of shares of CapStar common stock as exchanged 5,181,916 Multiplied by CapStar common stock price per share on September 30, 2018 $ 16.70 Estimated fair value of CapStar common stock issued (“Stock Consideration”) $ 86,538 Total number of stock options outstanding as provided by Athens management to exchange 548,051 Intrinsic value per stock option outstanding $ 11.64 Estimated fair value of stock options rolled ("Rolled Stock Options Consideration") $ 6,380 Stock Consideration $ 86,538 Rolled Stock Options Consideration $ 6,380 Total Preliminary Estimated Acquisition Consideration $ 92,918 Note 3—Preliminary Estimated Acquisition Consideration Allocation Under the acquisition method of accounting, the total acquisition consideration is allocated to the acquired tangible and intangible assets and assumed liabilities of Athens based on their estimated fair values as of the closing of the merger. The excess of the acquisition consideration over the fair value of assets acquired and liabilities assumed, if any, is allocated to goodwill. The allocation of the estimated acquisition consideration with regard to Athens is preliminary because the proposed merger has not yet been completed. The preliminary allocation is based on estimates, assumptions, valuations, and other studies which have not progressed to a stage where there is sufficient information to make a definitive allocation. Accordingly, the acquisition consideration allocation unaudited pro forma adjustments will remain preliminary until CapStar management determines the final acquisition consideration and the fair values of assets acquired and liabilities assumed. The final determination of the acquisition consideration allocation is anticipated to be completed as soon as practicable after the completion of the merger and will be based on the value of the CapStar common stock at the closing of the merger. The final amounts allocated to assets acquired and liabilities assumed could differ significantly from the amounts presented in the unaudited pro forma combined consolidated financial statement. The total preliminary estimated acquisition consideration as shown in the table above is allocated to Athens’s tangible and intangible assets and liabilities as of September 30, 2018 based on their preliminary estimated fair values as follows. Cash and cash equivalents $ 12,053 Securities available-for-sale 67,426 Loans 344,833 Premises and equipment, net 9,208 Goodwill 31,291 Core deposit intangible 8,980 Other assets 30,510 Deposits (404,520 ) Other liabilities (6,863 ) Total acquisition consideration $ 92,918 Approximately $8,980 has been allocated to amortizable intangible assets acquired. The amortization related to the fair value of net amortizable intangible assets is reflected as a pro forma adjustment to the unaudited pro forma condensed combined financial statement. Identifiable intangible assets. The fair values of intangible assets were determined based on the provisions of ASC 805, which defines fair value in accordance with ASC Topic 820, (“ASC 820”). ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Intangible assets were identified that met either the separability criterion or the contractual-legal criterion described in ASC 805. The allocation to intangible assets is allocated to core deposit intangibles. Goodwill. Goodwill represents the excess of the preliminary estimated acquisition consideration over the preliminary fair value of the underlying net tangible and intangible assets. Among the factors that contributed to a purchase price in excess of the fair value of the net tangible and intangible assets are the skill sets, operations, customer base and organizational cultures that can be leveraged to enable the combined company to build an enterprise greater than the sum of its parts. In accordance with ASC Topic 350, , goodwill will not be amortized, but instead will be tested for impairment at least annually and whenever events or circumstances have occurred that may indicate a possible impairment. In the event management determines that the value of goodwill has become impaired, the combined company will incur an accounting charge for the amount of the impairment during the period in which the determination is made. Note 4—Preliminary Unaudited Pro Forma and Acquisition Accounting Adjustments The unaudited pro forma financial information is not necessarily indicative of what the financial position actually would have been had the merger been completed at the date indicated. Such information includes adjustments which are preliminary and may be revised. Such revisions may result in material changes. The financial position shown herein is not necessarily indicative of what the past financial position of the combined companies would have been, nor necessarily indicative of the financial position of the post-merger periods. The unaudited pro forma financial information does not give consideration to the impact of possible cost savings, expense efficiencies, synergies, strategy modifications, asset dispositions or other actions that may result from the merger. The following unaudited pro forma adjustments result from accounting for the merger, including the determination of fair value of the assets, liabilities, and commitments which CapStar, as the acquirer, will acquire from Athens. The descriptions related to these preliminary adjustments are as follows. Income Statement – Pro Forma Adjustments Debit Credit a Remove one-time merger related expenses $ 14,535 b Elimination of intercompany income/expense 9 9 c Remove amortization of existing CDI 273 d Amortization of new CDI 1,258 e Deposit premium amortization 178 f Estimate of loan interest accretion 1,012 g Income tax benefit of pro forma adjustments 3,853 a) Remove one-time merger related expenses incurred to date. b) Elimination of intercompany income/expense related to Athens' deposits/loan held at CapStar. c) Remove amortization expense of Athens’ existing core deposit intangible ("CDI") asset. d) The estimate of CDI related to CapStar's acquisition of Athens is expected to approximate $8,980 and will be amortized over a ten year period on an accelerated basis which is expected to produce approximately $1.7 million of amortization expense during the first twelve months of operations. e) The amortization related to a time deposit premium recorded in connection with estimating the fair value of Athens’ time deposits. f) Represents the estimate of the first twelve months interest income accretion related to the preliminary estimate of the fair value adjustment of the loans acquired pursuant to the merger. The total amount to be accreted in interest income over the estimated lives of the related loans is approximately $4.8 million. g) Adjustment to reflect the income tax provision of the Pro Forma Adjustments using 26.14% as the incremental effective tax rate. Note 5—Earnings per Common Share Unaudited pro forma earnings per common share for the year ended December 31, 2018 has been calculated using CapStar’s historic weighted average common shares outstanding plus the common shares assumed to be issued to Athens’ shareholders in the merger. The following table sets forth the calculation of basic and diluted unaudited pro forma earnings per common share for the year ended December 31, 2018. In the table below, amounts are in thousands except for per share data. Basic Diluted Pro forma net income available to common shareholders $ 21,167 $ 21,167 Weighted average common shares outstanding: CapStar 11,851,476 13,052,758 Common shares issued to Athens 5,181,916 5,563,911 Pro forma 17,033,392 18,616,669 Pro forma net income per common share $ 1.24 $ 1.14 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements as of December 31, 2018 and 2017 and for each of the three years in the period ended December 31, 2018 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. 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. |
Business Combinations | Business Combinations The Company accounts for business combinations using the acquisition method of accounting. The accounts of an acquired entity are included as of the date of acquisition, and any excess of purchase price over the fair value of the net assets acquired is capitalized as goodwill. Under this method, all identifiable assets acquired, including purchased loans, and liabilities assumed are recorded at fair value. |
Nature of Operations | Nature of Operations Through the Bank, the Company provides full banking services to consumer and corporate customers located primarily 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 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 shares of preferred stock converted to shares of common stock and 79,166 from the cashless exercise of 250,000 common stock warrants. We received net proceeds of approximately $21.6 million from the offering, after deducting the underwriting discounts 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 losses, determination of impairment of intangible assets, including goodwill, the valuation of our investment portfolio and deferred tax assets. |
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. If the Company sells loans with servicing rights retained, the carrying value of the mortgage loan sold is reduced by the amount allocated to the servicing right. |
Tri-Net Fees | Tri-Net Fees Tri-Net fees represent a line of business, implemented in the fourth quarter of 2016, which originates, with the intent to sell, commercial real estate loans to third-party investors. All of these loan sales transfer servicing rights to the buyer. 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 statements of income in Tri-Net fees, net of related costs such as commission expenses. Loans that have not been sold at period end are classified as held for sale on the balance sheet and recorded at the lower of aggregate cost or fair value. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. |
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 completion and operation and/or sale 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 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 losses is not recorded on the acquisition date. An acquired loan is considered purchased credit 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. Purchased credit 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 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 Losses | Allowance for Loan losses The allowance for loan losses (“ALL”) is maintained at a level that management believes to be adequate to absorb expected loan losses inherent in the loan portfolio as of the balance sheet date. The allowance for loan losses is a valuation allowance for estimated credit losses inherent in the loan and lease portfolio, increased by the provision for loan 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 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 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 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 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 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 28 quarter look-back period as of December 31, 2016 and a 33 quarter look-back period as of December 31, 2017. Subsequently, the Company increased its look-back period for a total of 37 quarters as of December 31, 2018. In the current economic environment, management believes the extension of the look-back period was necessary 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 | Servicing Rights When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in other noninterest income. Fair value is based on market prices for comparable mortgage servicing contracts, when available or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with other noninterest income on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is reported on the income statement within other noninterest income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal; or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Net servicing fees totaled $102,000 for the year ended December 31, 2018. There were no servicing fees for the years ended December 31, 2017 or 2016. Late fees and ancillary fees related to loan servicing are not material. 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, 2018, the deferred liability associated with these escalating rentals was approximately $639,000 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 six to ten 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 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, 2015 through 2018. 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 $383,000, $310,000 and $252,000 for the years ended December 31, 2018, 2017 and 2016, 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 | Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income 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. The Bank’s policy is to release the income tax effects of items in accumulated other comprehensive income (loss) when the item is realized. |
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 $63,890,000, $43,940,000, and $40,902,000 at December 31, 2018, 2017 and 2016, 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, 2018, 2017 and 2016. |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events for recognition and disclosure through March 15, 2019, 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. No antidilutive stock options were excluded from calculation for the years ended December 31, 2018, 2017 or December 31, 2016. 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, 2018 2017 2016 Basic net income per share calculation: Numerator – Net income $ 9,655 $ 1,501 $ 9,097 Denominator – Average common shares outstanding 13,277,614 11,280,580 9,328,236 Basic net income per share $ 0.73 $ 0.13 $ 0.98 Diluted net income per share calculation: Numerator – Net income $ 9,655 $ 1,501 $ 9,097 Denominator – Average common shares outstanding 13,277,614 11,280,580 9,328,236 Dilutive shares contingently issuable 1,202,733 1,522,931 1,883,790 Average diluted common shares outstanding 14,480,347 12,803,511 11,212,026 Diluted net income per share $ 0.67 $ 0.12 $ 0.81 |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements ASU 2014-09, Revenue from Contracts with Customers In May 2014, the FASB issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance was effective for the Company for reporting periods beginning after December 15, 2017. The Company applied the guidance using a modified retrospective approach. The Company's revenue is comprised of net interest income and noninterest income. The scope of the guidance explicitly excludes net interest income as well as many other revenues for financial assets and liabilities including loans, leases, securities, and derivatives. Accordingly, the majority of our revenues will not be affected. The Company has performed an assessment of our revenue contracts related to revenue streams that are within the scope of the standard. Our accounting policies will not change materially since the principles of revenue recognition from the ASU are largely consistent with existing guidance and current practices applied by our businesses. We did not identify material changes to the timing or amount of revenue recognition. The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Our accounting policies will not change materially since the principles of revenue recognition form the Accounting Standards Update are largely consistent with existing guidance and current practices applied by our business. A description of the Company’s revenue streams accounted for under Topic 606 follows: Treasury management and other deposit service charges: The Company earns fees from its deposit customers for transaction based, account maintenance, and overdraft services. Transaction based fees are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees are earned over the course of a month, representing the period over which the Company satisfies its performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance. Interchange income: Included in other noninterest income are interchange fees, which the Company earns from debit cardholder transactions conducted through various payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing series provided to the cardholder. Gains/Losses on Sales of OREO: The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligation under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. ASU 2016-02, Leases In February 2016, the FASB amended the Leases topic of the Accounting Standards Codification to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted the guidance using the modified retrospective method and practical expedients for transition. The practical expedients allow the Company to largely account for our existing leases consistent with current guidance except for the incremental balance sheet recognition for lessees. The Company evaluated the new guidance and its impact on the Company’s financial statements. Based on leases outstanding at December 31, 2018, the impact of adoption on January 1, 2019 was recording a lease liability of approximately $13.4 million, a right-of-use asset of approximately $12.8 million, and elimination of deferred rent of approximately $0.6 million. ASU 2016-13, Financial Instruments – Credit Losses In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019. Early adoption is permitted for all organizations for periods beginning after December 15, 2018. The Company will apply the amendments to the ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. While early adoption is permitted beginning in first quarter 2019, we do not expect to elect that option. We are evaluating the impact of the ASU on our consolidated financial statements. In addition to our allowance for loan losses, we will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio's composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. ASU 2017-04, Simplifying the Test of Goodwill Impairment In January 2017, the FASB amended the Goodwill and Other Topic of the Accounting Standards Codification to simplify the accounting for goodwill impairment for public business entities and other entities that have goodwill reported in their financial statements and have not elected the private company alternative for the subsequent measurement of goodwill. The amendment removes Step 2 of the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The effective date and transition requirements for the technical corrections will be effective for the Company for reporting periods beginning after December 15, 2019. The Company does not expect these amendments to have a material effect on its financial statements. ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB amended the requirements of the Derivatives and Hedging Topic of the Accounting Standards Codification to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The amendments will be effective for the Company for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The Company adopted this standard December 1, 2017. However, there was no material effect on the financial statements. ASU 2018-02, Income Statement: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB Issued (2018-02), Income Statement (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ASU 2018-07, Compensation – Stock Compensation In June 2018, the FASB amended the Compensation—Stock Compensation Topic of the Accounting Standards Codification. The amendments expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments are effective for years beginning after December 15, 2018, including interim periods within that year. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. The Company does not expect these amendments to have a material effect on its financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Basic net income per share calculation: Numerator – Net income $ 9,655 $ 1,501 $ 9,097 Denominator – Average common shares outstanding 13,277,614 11,280,580 9,328,236 Basic net income per share $ 0.73 $ 0.13 $ 0.98 Diluted net income per share calculation: Numerator – Net income $ 9,655 $ 1,501 $ 9,097 Denominator – Average common shares outstanding 13,277,614 11,280,580 9,328,236 Dilutive shares contingently issuable 1,202,733 1,522,931 1,883,790 Average diluted common shares outstanding 14,480,347 12,803,511 11,212,026 Diluted net income per share $ 0.67 $ 0.12 $ 0.81 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid for Athens and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date (in thousands): As recorded by Athens Bancshares Initial fair value adjustments Measurement period adjustments As recorded by CapStar Financial Holdings Assets: Cash and cash equivalents $ 12,053 $ — $ — $ 12,053 Securities 67,342 84 (a) — 67,426 Loans, gross 349,597 (4,764 ) (b) — 344,833 Allowance for loan losses (4,039 ) 4,039 (c) — — Premises and equipment, net 7,637 1,571 (d) — 9,208 Core deposit intangible 2,758 6,222 (e) — 8,980 Other 29,566 944 (f) — 30,510 Total $ 464,914 $ 8,096 $ — $ 473,010 Liabilities: Deposits $ 404,027 $ 493 (g) $ — $ 404,520 Other 5,363 1,500 (h) — 6,863 Total $ 409,390 $ 1,993 $ — $ 411,383 Net identifiable assets acquired $ 61,627 Total cost of acquisition: Value of stock issued $ 86,538 Value of rolled stock options 6,380 Total cost of acquisition $ 92,918 $ 92,918 Goodwill recorded related to acquisition $ 31,291 ________________________________________________________ (a) The amount represents the fair value adjustment of securities that were subsequently sold. (b) The amount represents the adjustment of the net book value of Athens’ loans to their estimated fair value based on interest rates and expected cash flows at the date of acquisition. (c) The amount represents the removal of Athens’ existing allowance for loan losses. (d) The amount represents the adjustment of the net book value of Athens’ premises and equipment to their estimated fair value. (e) The amount represents the net adjustment of removing Athens’ existing core deposit intangible from prior acquisitions and recording the fair value of the core deposit intangible representing the intangible value of the deposit base acquired and the fair value of the customer relationship. (f) The amount represents the net adjustment of the fair value of mortgage servicing rights acquired and the deferred tax asset recognized on the fair value adjustments on Athens acquired assets and assumed liabilities. (g) The amount represents the adjustment necessary because the weighted average interest rate of Athens’ time deposits exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio. (h) The amount represents the liability assumed in connection with the merger agreement whereby the Company will make a $1,500,000 charitable contribution to the Athens Foundation over a three year period. |
Schedule of Unaudited Pro Forma Financial Information | The following unaudited pro forma financial information presents the combined results of the Company and Athens as if the acquisition had occurred as of January 1, 2017, after giving effect to certain adjustments, including amortization of the core deposit intangible, and related income tax effects. The pro forma financial information does not necessarily reflect the results of operations that would have occurred had the Company and Athens constituted a single entity during such periods (in thousands, except share data): Pro forma combined twelve months ended December 31, 2018 Pro forma combined twelve months ended December 31, 2017 Net interest income $ 66,935 $ 59,148 Noninterest income 20,692 17,540 Total revenue 87,627 76,688 Net income 21,167 5,851 Per share information: Basic net income per share of common stock $ 1.24 $ 0.36 Diluted net income per share of common stock $ 1.14 $ 0.32 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Company's Classification of Securities | The Company’s classification of securities at December 31, 2018 and 2017 was as follows (in thousands): December 31, 2018 December 31, 2017 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 $ 11,053 $ — $ (347 ) $ 10,706 $ 11,433 $ 12 $ (168 ) $ 11,277 State and municipal securities 62,142 765 (981 ) 61,926 51,790 1,430 (222 ) 52,998 Mortgage-backed securities 146,547 776 (3,165 ) 144,158 108,236 40 (1,714 ) 106,562 Asset-backed securities 15,437 4 (157 ) 15,284 16,575 — (198 ) 16,377 Other debt securities 11,863 71 (200 ) 11,734 5,326 81 — 5,407 Total $ 247,042 $ 1,616 $ (4,850 ) $ 243,808 $ 193,360 $ 1,563 $ (2,302 ) $ 192,621 Securities held-to-maturity: State and municipal securities $ 3,734 $ 54 $ (3 ) $ 3,785 $ 3,759 $ 89 $ — $ 3,848 Total $ 3,734 $ 54 $ (3 ) $ 3,785 $ 3,759 $ 89 $ — $ 3,848 |
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, 2018, 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 in less than one year $ 3,561 $ 3,573 $ 395 $ 396 Due one to five years 23,294 23,472 3,339 3,389 Due five to ten years 45,662 45,367 — — Due beyond ten years 12,541 11,954 — — Mortgage-backed securities 146,547 144,158 — — Asset-backed securities 15,437 15,284 — — $ 247,042 $ 243,808 $ 3,734 $ 3,785 |
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 2018 2017 2016 Proceeds $ 38,322 $ 46,762 $ 46,700 Gross gains 116 121 216 Gross losses (113 ) (190 ) (146 ) |
Summary of Securities with Unrealized Losses Aggregated by Major Security Type and Length of Time 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, 2018 Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses U. S. government agency securities $ — $ — $ 10,706 $ (347 ) $ 10,706 $ (347 ) State and municipal securities 13,455 (212 ) 17,376 (772 ) 30,831 (984 ) Mortgage-backed securities 7,075 (17 ) 87,232 (3,148 ) 94,307 (3,165 ) Asset-backed securities 8,262 (145 ) 2,439 (12 ) 10,701 (157 ) Other debt securities 5,362 (200 ) — — 5,362 (200 ) Total temporarily impaired securities $ 34,154 $ (574 ) $ 117,753 $ (4,279 ) $ 151,907 $ (4,853 ) December 31, 2017 U. S. government agency securities $ 7,375 $ (90 ) $ 1,912 $ (78 ) $ 9,287 $ (168 ) State and municipal securities 7,490 (106 ) 5,798 (116 ) 13,288 (222 ) Mortgage-backed securities 29,832 (322 ) 67,813 (1,392 ) 97,645 (1,714 ) Asset-backed securities — — 16,377 (198 ) 16,377 (198 ) Other debt securities — — — — — — Total temporarily impaired securities $ 44,697 $ (518 ) $ 91,900 $ (1,784 ) $ 136,597 $ (2,302 ) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Summary of Loans | Loans at December 31, 2018 and 2017 were as follows (in thousands): December 31, 2018 December 31, 2017 Commercial real estate $ 550,446 $ 350,622 Consumer real estate 253,562 102,581 Construction and land development 174,670 82,586 Commercial and industrial 404,600 373,248 Consumer 25,615 6,862 Other 21,002 31,983 Total 1,429,895 947,882 Less net unearned income (101 ) (345 ) Total loans 1,429,794 947,537 Allowance for loan losses (12,113 ) (13,721 ) Total loans, net $ 1,417,681 $ 933,816 |
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, 2018 and 2017 (in thousands): Non-impaired Loans December 31, 2018 Pass Special Mention Substandard Total Non-impaired Total Loans Total Commercial real estate $ 547,616 $ 177 $ 1,262 $ 549,055 $ 1,391 $ 550,446 Consumer real estate 249,273 1,676 1,691 252,640 922 253,562 Construction and land development 174,591 52 19 174,662 8 174,670 Commercial and industrial 388,719 7,790 6,545 403,054 1,546 404,600 Consumer 25,556 1 27 25,584 31 25,615 Other 21,002 — — 21,002 — 21,002 Total $ 1,406,757 $ 9,696 $ 9,544 $ 1,425,997 $ 3,898 $ 1,429,895 December 31, 2017 Commercial real estate $ 349,415 $ — $ — $ 349,415 $ 1,207 $ 350,622 Consumer real estate 102,571 — 10 102,581 — 102,581 Construction and land development 82,586 — — 82,586 — 82,586 Commercial and industrial 349,494 11,193 11,073 371,760 1,488 373,248 Consumer 6,849 — 13 6,862 — 6,862 Other 31,983 — — 31,983 — 31,983 Total $ 922,898 $ 11,193 $ 11,096 $ 945,187 $ 2,695 $ 947,882 |
Summary of Changes and Breakdown of Allowance for Loan Losses and Loan Portfolio by Loan Category | The following tables detail the changes in the ALL for the years ending December 31, 2018, 2017 and 2016 by loan classification (in thousands): Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total Year ended December 31, 2018 Balance, beginning of period $ 3,324 $ 1,063 $ 1,628 $ 7,209 $ 91 $ 406 $ 13,721 Charged-off loans — — — (4,831 ) (84 ) (39 ) (4,954 ) Recoveries 22 4 — 395 75 8 504 Provision for loan losses (37 ) (62 ) 803 2,263 23 (148 ) 2,842 Balance, end of period $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Year ended December 31, 2017 Balance, beginning of period $ 2,655 $ 1,013 $ 1,574 $ 5,618 $ 76 $ 698 $ 11,634 Charged-off loans — — — (12,769 ) — — (12,769 ) Recoveries 9 — — 1,865 112 — 1,986 Provision for loan losses 660 50 54 12,495 (97 ) (292 ) 12,870 Balance, end of period $ 3,324 $ 1,063 $ 1,628 $ 7,209 $ 91 $ 406 $ 13,721 Year ended December 31, 2016 Balance, beginning of period $ 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 losses 74 45 660 1,858 69 123 2,829 Balance, end of period $ 2,655 $ 1,013 $ 1,574 $ 5,618 $ 76 $ 698 $ 11,634 A breakdown of the ALL and the loan portfolio by loan category at December 31, 2018 and 2017 follows (in thousands): Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total December 31, 2018 Allowance for Loan Losses: Collectively evaluated for impairment $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Individually evaluated for impairment — — — — — — — Balances, end of period $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Loans: Collectively evaluated for impairment $ 549,055 $ 252,640 $ 174,662 $ 403,054 $ 25,584 $ 21,002 $ 1,425,997 Individually evaluated for impairment 1,391 922 8 1,546 31 — 3,898 Balances, end of period $ 550,446 $ 253,562 $ 174,670 $ 404,600 $ 25,615 $ 21,002 $ 1,429,895 December 31, 2017 Allowance for Loan Losses: Collectively evaluated for impairment $ 3,324 $ 1,063 $ 1,628 $ 7,109 $ 91 $ 406 $ 13,621 Individually evaluated for impairment — — — 100 — — 100 Balances, end of period $ 3,324 $ 1,063 $ 1,628 $ 7,209 $ 91 $ 406 $ 13,721 Loans: Collectively evaluated for impairment $ 349,415 $ 102,581 $ 82,586 $ 371,760 $ 6,862 $ 31,983 $ 945,187 Individually evaluated for impairment 1,207 — — 1,488 — — 2,695 Balances, end of period $ 350,622 $ 102,581 $ 82,586 $ 373,248 $ 6,862 $ 31,983 $ 947,882 |
Allocation of ALL with Corresponding Percentage of Loans in Each Category to Total Loans, Net of Deferred Fee | The following table presents the allocation of the ALL 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, 2018 and 2017 (dollars in thousands): December 31, 2018 December 31, 2017 Amount Percent of total loans, net of deferred fees Amount Percent of total loans, net of deferred fees Commercial real estate $ 3,309 0.23 % $ 3,324 0.35 % Consumer real estate 1,005 0.07 1,063 0.11 Construction and land development 2,431 0.17 1,628 0.17 Commercial and industrial 5,036 0.35 7,209 0.76 Consumer 105 0.01 91 0.01 Other 227 0.02 406 0.04 Total allowance for loan and lease losses $ 12,113 0.85 % $ 13,721 1.45 % |
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, 2018 and 2017 (in thousands): December 31, 2018 December 31, 2017 Recorded investment Unpaid principal balance Related allowance Recorded investment Unpaid principal balance Related allowance With no related allowance recorded: Commercial real estate $ 1,391 $ 1,775 $ — $ 1,207 $ 1,645 $ — Consumer real estate 922 1,204 — — — — Construction and land development 8 18 — — — — Commercial and industrial 1,546 6,350 — — — — Consumer 31 56 — — — — Other — — — — — — Subtotal 3,898 9,403 — 1,207 1,645 — With an allowance recorded: Commercial real estate — — — — — — Consumer real estate — — — — — — Construction and land development — — — — — — Commercial and industrial — — — 1,488 2,770 100 Consumer — — — — — — Other — — — — — — Subtotal — — — 1,488 2,770 100 Total $ 3,898 $ 9,403 $ — $ 2,695 $ 4,415 $ 100 The following table presents information related to the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2018, 2017 and 2016 (in thousands): Year Ended Year Ended Year Ended December 31, 2018 December 31, 2017 December 31, 2016 Average recorded investment Interest income recognized Average recorded investment Interest income recognized Average recorded investment Interest income recognized With no related allowance recorded: Commercial real estate $ 1,198 $ 158 $ 1,258 $ — $ 655 $ — Consumer real estate 185 — — — 302 — Construction and land development 94 2 — — — — Commercial and industrial 5,557 121 — — — — Consumer 7 — — — 63 — Other — — — — — — Subtotal 7,041 281 1,258 — 1,020 — With an allowance recorded: Commercial real estate — — — — 974 — Consumer real estate — — — — — — Construction and land development — — — — — — Commercial and industrial — — 2,077 — 1,155 44 Consumer — — — — — — Other — — — — — — Subtotal — — 2,077 — 2,129 44 Total $ 7,041 $ 281 $ 3,335 $ — $ 3,149 $ 44 |
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, 2018 and 2017 by class of loans (in thousands): 30 - 59 60 - 89 Greater Than Days Days 89 Days Total Loans Not December 31, 2018 Past Due Past Due Past Due Past Due Past Due Total Commercial real estate $ 300 $ 227 $ — $ 527 $ 549,919 $ 550,446 Consumer real estate 69 75 775 919 252,643 253,562 Construction and land development — — — — 174,670 174,670 Commercial and industrial 54 — — 54 404,546 404,600 Consumer 52 — 43 95 25,520 25,615 Other — — — — 21,002 21,002 Total $ 475 $ 302 $ 818 $ 1,595 $ 1,428,300 $ 1,429,895 December 31, 2017 Commercial real estate $ — $ — $ — $ — $ 350,622 $ 350,622 Consumer real estate — — 218 218 102,363 102,581 Construction and land development — — — — 82,586 82,586 Commercial and industrial 1,967 209 — 2,176 371,072 373,248 Consumer — — 13 13 6,849 6,862 Other — — — — 31,983 31,983 Total $ 1,967 $ 209 $ 231 $ 2,407 $ 945,475 $ 947,882 |
Schedule of Recorded In Non Accrual Loans, Past Due Loans over 89 Days and Accruing and Troubled Debt Restructurings | The following table presents the recorded investment in non-accrual loans, past due loans over 89 days and accruing and troubled debt restructurings (“TDR”) by class of loans as of December 31, 2018 and 2017 (in thousands): Past Due Over 89 Troubled Debt Non-Accrual Days and Accruing Restructurings December 31, 2018 Commercial real estate $ — $ — $ 1,391 Consumer real estate 1,187 214 — Construction and land development 19 — — Commercial and industrial 817 — — Consumer 55 — — Other — — — Total $ 2,078 $ 214 $ 1,391 December 31, 2017 Commercial real estate $ 1,207 $ — $ 1,206 Consumer real estate — 218 — Construction and land development — — — Commercial and industrial 1,488 — — Consumer — 13 — Other — — — Total $ 2,695 $ 231 $ 1,206 |
Schedule of 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 (in thousands). Year Ended December 31, 2016 Number of contracts Pre modification outstanding recorded investment Post modification outstanding recorded investment, net of related allowance 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 |
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 (in thousands). Year Ended December 31, 2016 Number of contracts Recorded investment Commercial real estate — $ — Consumer real estate — — Construction and land development — — Commercial and industrial — — Consumer 1 124 Other — — Total 1 $ 124 |
Summary of contractually required payments for Athens Bancshares expected at acquisition date | The following table relates to acquired Athens PCI loans and summarizes the contractually required payments, which includes principal and interest, expected cash flows to be collected, and the fair value of acquired PCI loans at the acquisition date (in thousands): Athens Bancshares acquisition on October 1, 2018 Contractually required payments $ 3,151 Nonaccretable difference (1,049 ) Cash flows expected to be collected at acquisition 2,102 Accretable yield (436 ) Fair value of PCI loans at acquisition date $ 1,666 |
Summary of contractually required payments for Athens Bancshares not expected at acquisition date | The following table relates to acquired Athens purchased non-impaired loans and provides the contractually required payments, fair value, and estimate of contractual cash flows not expected to be collected at the acquisition date (in thousands): Athens Bancshares acquisition on October 1, 2018 Contractually required payments $ 404,692 Fair value of acquired loans at acquisition date 343,167 Contractual cash flows not expected to be collected 1,807 |
Schedule of activity in purchased credit impaired loans | The following table presents changes in the carrying value of PCI loans (in thousands): For the year ended December 31, 2018 Balance at beginning of period $ — Additions due to acquisition of Athens Bancshares 1,666 Change due to payments received and accretion (46 ) Change due to loan charge-offs — Other — Balance at end of period $ 1,620 The following table presents changes in the accretable yield for PCI loans (in thousands): For the year ended December 31, 2018 Balance at beginning of period $ — Additions due to acquisition of Athens Bancshares 436 Accretion (9 ) Reclassification from (to) nonaccretable difference — Other, net 13 Balance at end of period $ 440 |
Schedule of Components of Direct Financing Leases | The components of the direct financing leases as of December 31, 2018 and 2017 were as follows (in thousands): December 31, 2018 December 31, 2017 Total minimum lease payments receivable $ 379 $ 714 Less: Unearned income (19 ) (49 ) Net leases $ 360 $ 665 |
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, 2018 were as follows (in thousands): Year ending December 31: 2019 $ 178 2020 167 2021 34 2022 — 2023 — $ 379 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Transfers And Servicing [Abstract] | |
Schedule of Activity for Loan Servicing Rights and Related Valuation Allowance | Activity for loan servicing rights and the related valuation allowance are summarized as follows (in thousands): For the year ended December 31, 2018 Loan servicing rights: Balance at beginning of period $ — Additions 1,809 Disposals — Amortized to offset other noninterest income (73 ) Change in valuation allowance — Balance at end of period $ 1,736 Valuation allowance: Balance at beginning of period $ — Additions expensed — Reductions credited to other noninterest income — Direct write-downs — Balance at end of period $ — |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Summary of Premises and Equipment | Premises and equipment at December 31, 2018 and 2017 are summarized as follows (in thousands): Range of useful lives December 31, 2018 December 31, 2017 Land Not applicable $ 2,997 $ 1,180 Buildings 39 years 9,965 3,586 Leasehold improvements 1 to 17 years 939 777 Furniture and equipment 1 to 7 years 3,730 2,659 Fixed assets in process Not applicable 4,023 — 21,654 8,202 Less accumulated depreciation and amortization (2,833 ) (2,318 ) $ 18,821 $ 5,884 |
Summary of Future Minimum Payments under Operating Leases | Future minimum payments under these operating leases as of December 31, 2018 are as follows (in thousands): Year ending December 31: 2019 $ 1,538 2020 1,539 2021 1,567 2022 1,453 2023 1,402 Thereafter 8,821 $ 16,320 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Change in Goodwill | The change in goodwill during the years ended December 31, 2018 and 2017 was as follows (in thousands): 2018 2017 Beginning of year $ 6,219 $ 6,219 Acquired goodwill 31,291 — Impairment — — End of year $ 37,510 $ 6,219 |
Summary of Acquired Intangible Assets | Acquired intangible assets at December 31, 2018 and 2017 were as follows (in thousands): December 31, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Core deposit intangibles $ 9,267 $ (729 ) $ 287 $ (264 ) |
Summary of Estimated Amortization Expense | Estimated amortization expense for each of the next five years is as follows (in thousands): Year ending December 31: 2019 $ 1,655 2020 1,477 2021 1,299 2022 1,121 2023 943 Thereafter 2,043 Total $ 8,538 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Real Estate [Abstract] | |
Summary of Other Real Estate Owned Activity | Other real estate owned activity was as follows (in thousands): 2018 2017 2016 Beginning balance $ — $ — $ 216 Additions due to acquisition of Athens Bancshares 988 — — Loans transferred to other real estate owned — — — Direct write-downs — — — Sales of other real estate owned — — (216 ) End of year $ 988 $ — $ — |
Summary of Valuation Allowance Activity in Other Real Estate Owned | Activity in the valuation allowance was as follows during the years ended December 31, 2018, 2017 and 2016, respectively (in thousands): 2018 2017 2016 Beginning balance $ — $ — $ 450 Additions/(recoveries) charged/(credited) to expense — — — Reductions from sales of other real estate owned — — (450 ) Direct write-downs — — — End of year $ — $ — $ — |
Summary of Expenses Related to Other Real Estate Owned | Expenses related to other real estate owned during the years ended December 31, 2018, 2017 and 2016, respectively include (in thousands): 2018 2017 2016 Net (gain) loss on sales $ — $ — $ (157 ) Provision for unrealized losses — — — Operating expenses, net of rental income — — 14 Total $ — $ — $ (143 ) |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: 2019 $ 254,839 2020 57,800 2021 15,167 2022 12,068 2023 8,294 Thereafter 259 $ 348,427 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 December 31, 2017 Year Amount Interest Rates Amount Interest Rates 2017 $ — — $ — — 2018 — — 70,000 1.66 % 2019 125,000 2.48 % — — 2020 — — — — 2021 — — — — 2022 — — — — 2023 — — — — Thereafter — — — — Total $ 125,000 2.48 % $ 70,000 1.66 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 ended December 31, 2018 and 2017 (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, 2018 Hedges Securities Held to Maturity Total Beginning Balance $ (3,679 ) $ 1,162 $ (10 ) $ (2,527 ) Other comprehensive income (loss) before reclassification, net of tax 1,891 (1,844 ) 20 67 Amounts reclassified from accumulated other comprehensive income (loss), net of tax (848 ) 2 (10 ) (856 ) Net current period other comprehensive income (loss) 1,043 (1,842 ) 10 (789 ) Ending Balance $ (2,636 ) $ (680 ) $ — $ (3,316 ) Year Ended December 31, 2017 Beginning Balance $ (4,241 ) $ (698 ) $ (1,212 ) $ (6,151 ) Other comprehensive income (loss) before reclassification, net of tax 1,499 3,077 235 4,811 Amounts reclassified for securities transferred from held-to-maturity to available-for-sale — (1,086 ) 1,086 — Amounts reclassified from accumulated other comprehensive income (loss), net of tax (770 ) (41 ) (117 ) (928 ) Net current period other comprehensive income (loss) 729 1,950 1,204 3,883 Reclassification of accumulated other comprehensive income due to tax rate change (167 ) (90 ) (2 ) (259 ) Ending Balance $ (3,679 ) $ 1,162 $ (10 ) $ (2,527 ) |
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 years ended December 31, 2018, 2017 and 2016 (in thousands): Affected Line Item Details about Accumulated Other Year Ended Year Ended Year Ended in the Statement Where Comprehensive Income Components December 31, 2018 December 31, 2017 December 31, 2016 Net Income is Presented Unrealized losses on cash flow hedges $ (441 ) $ (430 ) $ (151 ) Interest expense - money market (479 ) (429 ) (265 ) Interest expense - Federal Home Loan Bank advances 72 89 — Income tax benefit $ (848 ) $ (770 ) $ (416 ) Net of tax Unrealized gains and (losses) on available-for-sale securities $ 3 $ (66 ) $ 121 Net gain (loss) on sale of securities (1 ) 25 (46 ) Income tax (expense) benefit $ 2 $ (41 ) $ 75 Net of tax Unrealized losses on securities transferred to held-to-maturity $ (14 ) $ (190 ) $ (167 ) Interest income - securities 4 73 64 Income tax benefit $ (10 ) $ (117 ) $ (103 ) Net of tax |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense are summarized as follows (in thousands): 2018 2017 2016 Current: Federal $ 15 $ 214 $ 4,029 State (23 ) 36 759 (8 ) 250 4,788 Deferred: Federal 872 4,218 (395 ) State 303 167 100 1,175 4,385 (295 ) Total $ 1,167 $ 4,635 $ 4,493 |
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 21% to income before income taxes) for the years ended December 31, 2018, 2017 and 2016 is as follows (in thousands): 2018 2017 2016 Computed "expected" tax expense $ 2,272 $ 2,086 $ 4,621 State income taxes, net of effect of federal income taxes 221 134 567 Tax-exempt interest income (298 ) (418 ) (394 ) Earnings on bank owned life insurance contracts (559 ) (197 ) (204 ) Disallowed expenses 93 86 60 Excess tax benefits related to stock compensation (857 ) (632 ) — Write-down of deferred tax assets due to tax reform — 3,562 — Nondeductible merger expenses 281 — — Other 14 14 (157 ) Total $ 1,167 $ 4,635 $ 4,493 |
Schedule of Deferred Tax Assets and Liabilities | Significant items that gave rise to deferred taxes at December 31, 2018 and 2017 were as follows (in thousands): December 31, 2018 December 31, 2017 Deferred tax assets: Allowance for loan losses $ 2,795 $ 3,227 Depreciation — — Net operating loss carryforward 2,002 843 Organization and preopening costs 457 557 Stock-based compensation 835 672 Acquired loans 1,319 124 Acquired deposits 106 22 Nonaccrual interest 75 25 Accrued incentive compensation 97 — Reserve for contingencies 143 496 Accrued contributions 207 169 Unrealized loss on securities available-for-sale 845 193 Unrealized loss on securities held-to-maturity — 4 Cash flow hedge 219 359 Accrued vacation 45 45 Other — 134 Deferred tax assets 9,145 6,870 Deferred tax liabilities: Prepaid expenses 77 134 Depreciation 645 39 Goodwill 81 138 Amortization of core deposit intangible 1,398 6 Other 334 — Deferred tax liabilities 2,535 317 Net deferred tax asset $ 6,610 $ 6,553 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 (in thousands): Contract or notional amount December 31, 2018 December 31, 2017 Financial instruments whose contract amounts represent credit risk: Unused commitments to extend credit $ 707,675 $ 584,494 Standby letters of credit 12,273 11,552 Total $ 719,948 $ 596,046 |
Regulatory Matters And Restri_2
Regulatory Matters And Restrictions On Dividends (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 (dollars in thousands): Actual Minimum capital requirement (1) Minimum to be well-capitalized (2) Amount Ratio Amount Ratio Amount Ratio At December 31, 2018: Total capital to risk-weighted assets: CapStar Financial Holdings, Inc. $ 222,030 12.8 % $ 138,336 8.0 % $ N/A N/A CapStar Bank 201,972 11.7 138,294 8.0 172,868 10.0 Tier I capital to risk-weighted assets: CapStar Financial Holdings, Inc. 209,738 12.1 103,752 6.0 N/A N/A CapStar Bank 189,680 11.0 103,721 6.0 138,294 8.0 Common equity Tier 1 capital to risk weighted assets: CapStar Financial Holdings, Inc. 200,738 11.6 77,814 4.5 N/A N/A CapStar Bank 173,180 10.0 77,791 4.5 112,364 6.5 Tier I capital to average assets: CapStar Financial Holdings, Inc. 209,738 11.1 75,867 4.0 N/A N/A CapStar Bank 189,680 10.0 75,828 4.0 94,785 5.0 At December 31, 2017: Total capital to risk-weighted assets: CapStar Financial Holdings, Inc. $ 156,176 12.5 % $ 99,932 8.0 % $ N/A N/A CapStar Bank 142,138 11.4 99,928 8.0 124,909 10.0 Tier I capital to risk-weighted assets: CapStar Financial Holdings, Inc. 142,276 11.4 74,949 6.0 N/A N/A CapStar Bank 128,238 10.3 74,946 6.0 99,928 8.0 Common equity Tier 1 capital to risk weighted assets: CapStar Financial Holdings, Inc. 133,445 10.7 56,212 4.5 N/A N/A CapStar Bank 111,907 9.0 56,209 4.5 81,191 6.5 Tier I capital to average assets: CapStar Financial Holdings, Inc. 142,276 10.7 53,218 4.0 N/A N/A CapStar Bank 128,238 9.6 53,215 4.0 66,519 5.0 (1) For the calendar year 2018, the Company was required to maintain a capital conservation buffer of Tier 1 common equity capital in excess of minimum risk-based capital ratios by at least 1.875% to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. (2) For the Company to be well-capitalized, the Bank must be well-capitalized and the Company must not be subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve to meet and maintain a specific capital level for any capital measure. |
Stock Options and Restricted _2
Stock Options and Restricted Shares (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Stock-based compensation expense before income taxes $ 2,079 $ 1,061 $ 842 Less: deferred tax benefit (543 ) (406 ) (322 ) Reduction of net income $ 1,536 $ 655 $ 520 |
Summary of Changes in Company's Nonvested Restricted Shares | A summary of the changes in the Company’s nonvested restricted shares for 2018 follows: Weighted Average Restricted Grant Date Nonvested Shares Shares Fair Value Nonvested at beginning of period 187,253 $ 14.21 Granted 140,131 16.73 Vested (161,604 ) 13.54 Forfeited (8,164 ) 15.92 Nonvested at end of period 157,616 $ 17.00 |
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. There were no options granted during 2018 or 2017. 2016 Dividend yield — Expected term (in years) 7.48 Expected stock price volatility 17.20 % Risk-free interest rate 1.66 % Pre-vest forfeiture rate 10.25 % |
Summary of Activity in Stock Options | A summary of the activity in stock options for 2018 follows: Weighted Weighted Average Average Remaining Exercise Contractual Shares Price Term (years) Outstanding at beginning of period 756,050 $ 10.50 Additions due to acquisition of Athens Bancshares 548,051 $ 5.06 Granted — — Exercised (796,198 ) 8.16 Forfeited or expired — — Outstanding at end of period 507,903 $ 8.66 4.0 Fully vested and expected to vest 506,783 $ 8.66 4.1 Exercisable at end of period 480,403 $ 8.46 4.0 |
Information Related to Stock Options | Information related to stock options during 2018, 2017 and 2016 follows: 2018 2017 2016 Intrinsic value of options exercised $ 7,654,738 $ 2,010,536 $ 53,756 Cash received from option exercises 6,897,845 2,013,840 96,306 Tax benefit realized from option exercises 846,725 774,056 20,583 Weighted average fair value of options granted — — 3.16 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 December 31, 2017 Notional amounts $ 20,000 $ 20,000 Weighted average pay rates 3.54 % 3.54 % Weighted average receive rates 3 month 3 month LIBOR Weighted average maturity 4.5 years 5.5 years Fair value $ (836 ) $ (1,375 ) Amount of unrealized loss recognized in accumulated other comprehensive income, net of tax $ (617 ) $ (849 ) |
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, 2018 December 31, 2017 Notional Estimated Notional Estimated amount fair value amount fair value Interest rate swap agreements: Pay fixed/receive variable swaps $ 29,126 $ 24 $ 41,863 $ 55 Pay variable/receive fixed swaps 29,126 (24 ) 41,863 (55 ) Total $ 58,252 $ — $ 83,726 $ — |
Related Party (Tables)
Related Party (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 or 2017. Activity within these loans during the years ended December 31, 2018 and 2017 was as follows (in thousands): Total commitment Total funded commitment Year ended December 31, 2018 Beginning of period $ 49,409 $ 21,890 New commitments/draw downs 3,631 1,038 Repayments (8,228 ) (7,483 ) End of period $ 44,812 $ 15,445 Year ended December 31, 2017 Beginning of period $ 31,076 $ 20,325 New commitments/draw downs 21,203 4,320 Repayments (2,870 ) (2,755 ) End of period $ 49,409 $ 21,890 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 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 $ 10,706 $ — $ 10,706 $ — Obligations of states and political subdivisions 61,926 — 61,926 — Mortage-backed securities-residential 144,158 — 144,158 — Asset-backed securities 15,284 — 15,284 — Other debt securities 11,734 — 11,734 — Total securities available-for-sale $ 243,808 $ — $ 243,808 $ — Derivatives: Interest rate swaps - customer related $ 494 $ — $ 494 $ — Liabilities: Derivatives: Interest rate swaps - customer related $ (494 ) $ — $ (494 ) $ — Interest rate swaps - cash flow hedges (836 ) — (836 ) — Total derivatives $ (1,330 ) $ — $ (1,330 ) $ — Fair value measurements at December 31, 2017 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 $ 11,277 $ — $ 11,277 $ — Obligations of states and political subdivisions 52,998 — 52,998 — Mortage-backed securities-residential 106,562 — 106,562 — Asset-backed securities 16,377 — 16,377 — Other debt securities 5,407 — 5,407 — Total securities available-for-sale $ 192,621 $ — $ 192,621 $ — Derivatives: Interest rate swaps - customer related $ 184 $ — $ 184 $ — Liabilities: Derivatives: Interest rate swaps - customer related $ (184 ) $ — $ (184 ) $ — Interest rate swaps - cash flow hedges (1,375 ) — (1,375 ) — Total derivatives $ (1,559 ) $ — $ (1,559 ) $ — |
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). There were no assets measured at fair value on a nonrecurring basis at December 31, 2018: Fair value measurements at December 31, 2017 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 $ 1,388 $ — $ — $ 1,388 |
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 (dollars in thousands). There were no assets measured at fair value on a nonrecurring basis at December 31, 2018: Range Fair Valuation Unobservable (Weighted- December 31, 2017 Value Technique(s) Input(s) Average) Impaired loans: Commercial and industrial $ 1,388 Sales comparison approach Appraisal discounts 15 % |
Summary of Carrying Value and Fair Values of the Company's Financial Instruments | The carrying value and estimated fair values of the Company’s financial instruments at December 31, 2018, 2017 and 2016 were as follows (in thousands): December 31, 2018 December 31, 2017 Carrying Carrying Fair value amount Fair value amount Fair value level of input Financial assets: Cash and due from banks, interest-bearing deposits in financial institutions $ 94,681 $ 94,681 $ 78,078 $ 78,078 Level 1 Federal funds sold 10,762 10,762 4,719 4,719 Level 1 Securities available-for-sale 243,808 243,808 192,621 192,621 Level 2 Securities held-to-maturity 3,734 3,785 3,759 3,848 Level 2 Loans held for sale 57,618 58,596 74,093 75,549 Level 2 Restricted equity securities 12,038 N/A 8,806 N/A N/A Loans, net of unearned income 1,429,794 1,442,082 947,537 944,037 Level 3 Accrued interest receivable 5,964 5,964 4,084 4,084 Level 2 Other assets 34,489 34,489 22,663 22,663 Level 2 Financial liabilities: Deposits 1,570,008 1,504,101 1,119,866 1,065,669 Level 3 Federal Home Loan Bank advances 125,000 126,548 70,000 69,980 Level 2 Other liabilities 2,753 2,753 3,672 3,672 Level 3 |
Parent Company Only Financial_2
Parent Company Only Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets | Condensed Balance Sheets December 31, 2018 December 31, 2017 Assets Cash and cash equivalents $ 19,918 $ 14,108 Investment in consolidated subsidiary 234,263 132,909 Other assets 499 61 Total assets $ 254,680 $ 147,078 Liabilities and Shareholders’ Equity Other liabilities $ 301 132 Total shareholders’ equity 254,379 146,946 Total liabilities and shareholders’ equity $ 254,680 $ 147,078 |
Condensed Income Statements | Condensed Income Statements Year Ended Year Ended December 31, 2018 December 31, 2017 Income - dividends from subsidiary $ 1,225 $ — Expenses 1,054 879 Income before income taxes and equity in undistributed net income of subsidiary 171 (879 ) Income tax benefit (242 ) (256 ) Income (loss) before equity in undistributed net income of subsidiary 413 (623 ) Equity in undistributed net income of subsidiary 9,242 2,124 Net income $ 9,655 $ 1,501 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Year Ended Year Ended December 31, 2018 December 31, 2017 Cash flows from operating activities: Net income $ 9,655 $ 1,501 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Increase in other assets (221 ) (62 ) Increase in other liabilities 169 77 Equity in undistributed net income of subsidiary (9,242 ) (2,124 ) Net cash provided by (used in) operating activities 361 (608 ) Cash flows from investing activities: Investments in subsidiary — (10,000 ) Cash received from acquisitions, net 1,421 — Net cash provided by (used in) investing activities 1,421 (10,000 ) Cash flows from financing activities: Issuance of common stock — — Exercise of common stock options and warrants, net of repurchase of restricted shares 5,260 1,764 Common and preferred stock dividends paid (1,232 ) Net cash provided by financing activities 4,028 1,764 Net increase (decrease) in cash and cash equivalents 5,810 (8,844 ) Cash and cash equivalents at beginning of period 14,108 22,952 Cash and cash equivalents at end of period $ 19,918 $ 14,108 |
Quarterly Financial Results (_2
Quarterly Financial Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Results (Unaudited) | The following is a summary of quarterly financial results (unaudited) for 2018, 2017 and 2016: First Quarter Second Quarter Third Quarter Fourth Quarter 2018 Interest income $ 13,744 $ 15,354 $ 15,782 $ 22,900 Interest expense 2,898 3,767 4,239 5,184 Net interest income 10,846 11,587 11,543 17,716 Provision for loan losses 678 169 481 1,514 Net interest income after provision for loan losses 10,168 11,418 11,062 16,202 Noninterest income 3,088 2,765 3,218 6,387 Noninterest expense 9,580 10,005 10,070 23,832 Net income (loss) before income tax expense 3,676 4,178 4,210 (1,243 ) Income tax expense (benefit) 483 665 554 (535 ) Net income (loss) $ 3,193 $ 3,513 $ 3,656 $ (708 ) Net income (loss) per share, basic $ 0.27 $ 0.30 $ 0.30 $ (0.04 ) Net income (loss) per share, diluted $ 0.25 $ 0.27 $ 0.28 $ (0.04 ) 2017 Interest income $ 11,979 $ 12,891 $ 13,521 $ 13,124 Interest expense 2,047 2,320 2,678 2,606 Net interest income 9,932 10,571 10,843 10,518 Provision for loan losses 3,405 9,690 (195 ) (30 ) Net interest income after provision for loan losses 6,527 881 11,038 10,548 Noninterest income 2,133 2,666 3,372 2,736 Noninterest expense 8,376 8,217 8,475 8,699 Net income (loss) before income tax expense 284 (4,670 ) 5,935 4,585 Income tax expense (benefit) (47 ) (1,328 ) 1,516 4,494 Net income (loss) $ 331 $ (3,342 ) $ 4,419 $ 91 Net income (loss) per share, basic $ 0.03 $ (0.30 ) $ 0.39 $ 0.01 Net income (loss) per share, diluted $ 0.03 $ (0.26 ) $ 0.35 $ 0.01 2016 Interest income $ 10,598 $ 10,915 $ 11,875 $ 12,007 Interest expense 1,642 1,714 1,749 1,827 Net interest income 8,956 9,201 10,126 10,180 Provision for loan losses 937 183 1,639 70 Net interest income after provision for loan losses 8,019 9,018 8,487 10,110 Noninterest income 2,371 2,568 3,191 2,954 Noninterest expense 8,010 7,951 8,527 8,642 Net income before income tax expense 2,380 3,635 3,151 4,422 Income tax expense 796 1,159 1,042 1,495 Net income $ 1,584 $ 2,476 $ 2,109 $ 2,927 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 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | Sep. 27, 2016USD ($)shares | Dec. 31, 2018USD ($)Securityshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares |
Summary Of Significant Accounting Policies [Line Items] | ||||
Date of acquisition | Feb. 5, 2016 | |||
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 | 37 quarters | 33 quarter | 28 quarter | |
Noninterest income | $ 5,653,000 | $ 6,238,000 | $ 7,375,000 | |
Deferred liability, operating lease rentals | $ 639,000 | |||
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 | 383,000 | 310,000 | 252,000 | |
Restricted balance of cash reserve with Federal Reserve Bank | $ 63,890,000 | $ 43,940,000 | 40,902,000 | |
Antidilutive stock options excluded from diluted earnings per share | shares | 0 | 0 | ||
Right-of-use asset | $ 12,800,000 | |||
Lease, Liability | 13,400,000 | |||
Cumulative-effect adjustment to retained earnings | 600,000 | |||
Income tax effects, accumulated other comprehensive income to retained earnings, amount | $ 259,000 | |||
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 | 6 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 | 10 years | |||
Bank Servicing | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Noninterest income | $ 102,000,000 | $ 0 | $ 0 | |
Consumer Loan | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Accrual of interest on loans due charged off | 180 days | |||
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 | shares | 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 | shares | 731,707 | |||
Cashless exercise | shares | 79,166 | |||
Exercise of common stock warrants, shares | shares | 250,000 | |||
Net proceeds from issuance | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basic net income per share calculation: | |||||||||||||||
Numerator – Net income | $ 9,655 | $ 1,501 | $ 9,097 | ||||||||||||
Denominator – Average common shares outstanding | 13,277,614 | 11,280,580 | 9,328,236 | ||||||||||||
Basic net income per share of common stock | $ (0.04) | $ 0.30 | $ 0.30 | $ 0.27 | $ 0.01 | $ 0.39 | $ (0.30) | $ 0.03 | $ 0.26 | $ 0.24 | $ 0.29 | $ 0.18 | $ 0.73 | $ 0.13 | $ 0.98 |
Diluted net income per share calculation: | |||||||||||||||
Numerator – Net income | $ 9,655 | $ 1,501 | $ 9,097 | ||||||||||||
Denominator – Average common shares outstanding | 13,277,614 | 11,280,580 | 9,328,236 | ||||||||||||
Dilutive shares contingently issuable | 1,202,733 | 1,522,931 | 1,883,790 | ||||||||||||
Average diluted common shares outstanding | 14,480,347 | 12,803,511 | 11,212,026 | ||||||||||||
Diluted net income per share of common stock | $ (0.04) | $ 0.28 | $ 0.27 | $ 0.25 | $ 0.01 | $ 0.35 | $ (0.26) | $ 0.03 | $ 0.23 | $ 0.20 | $ 0.23 | $ 0.15 | $ 0.67 | $ 0.12 | $ 0.81 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - Athens Bancshares - USD ($) | Dec. 31, 2018 | Oct. 01, 2018 |
Business Acquisition [Line Items] | ||
Percentage of voting interests acquired | 100.00% | |
Common stock exchange ratio | 2.864 | |
Acquisition related costs | $ 9,803,000 | |
Goodwill | $ 31,291,000 |
Acquisition - Schedule of Consi
Acquisition - Schedule of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total cost of acquisition: | |||||
Goodwill | $ 37,510 | $ 6,219 | $ 6,219 | ||
Athens Bancshares | |||||
Assets: | |||||
Cash and cash equivalents | $ 12,053 | $ 12,053 | |||
Securities | 67,426 | 67,426 | |||
Loans, gross | 344,833 | ||||
Premises and equipment, net | 9,208 | 9,208 | |||
Core deposit intangible | 8,980 | ||||
Other | 30,510 | 30,510 | |||
Total | 473,010 | ||||
Liabilities: | |||||
Deposits | 404,520 | ||||
Other | 6,863 | 6,863 | |||
Total | 411,383 | ||||
Net identifiable assets acquired | 61,627 | ||||
Total cost of acquisition: | |||||
Total cost of acquisition | 92,918 | ||||
Goodwill | 31,291 | $ 31,291 | |||
Athens Bancshares | As recorded by Athens Bancshares | |||||
Assets: | |||||
Cash and cash equivalents | 12,053 | ||||
Securities | 67,342 | ||||
Loans, gross | 349,597 | ||||
Allowance for loan losses | (4,039) | ||||
Premises and equipment, net | 7,637 | ||||
Core deposit intangible | 2,758 | ||||
Other | 29,566 | ||||
Total | 464,914 | ||||
Liabilities: | |||||
Deposits | 404,027 | ||||
Other | 5,363 | ||||
Total | 409,390 | ||||
Athens Bancshares | Initial Fair Value Adjustment | |||||
Assets: | |||||
Securities | 84 | ||||
Loans, gross | (4,764) | ||||
Allowance for loan losses | 4,039 | ||||
Premises and equipment, net | 1,571 | ||||
Core deposit intangible | 6,222 | ||||
Other | 944 | ||||
Total | 8,096 | ||||
Liabilities: | |||||
Deposits | 493 | ||||
Other | 1,500 | ||||
Total | $ 1,993 | ||||
Total cost of acquisition: | |||||
Total cost of acquisition | 92,918 | ||||
Athens Bancshares | Initial Fair Value Adjustment | Rolled Stock Options | |||||
Total cost of acquisition: | |||||
Total cost of acquisition | 6,380 | ||||
Athens Bancshares | Common Stock | Initial Fair Value Adjustment | |||||
Total cost of acquisition: | |||||
Total cost of acquisition | $ 86,538 |
Acquisition - Schedule of Con_2
Acquisition - Schedule of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed (Parenthetical) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Athens Bancshares | |
Business Acquisition [Line Items] | |
Charitable contribution | $ 1,500,000 |
Acquisition - Schedule of Unaud
Acquisition - Schedule of Unaudited Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||||||||||||||||
Net interest income | $ 17,716 | $ 11,543 | $ 11,587 | $ 10,846 | $ 10,518 | $ 10,843 | $ 10,571 | $ 9,932 | $ 10,180 | $ 10,126 | $ 9,201 | $ 8,956 | $ 51,692 | $ 41,863 | $ 38,464 | |
Noninterest income | 6,387 | 3,218 | 2,765 | 3,088 | 2,736 | 3,372 | 2,666 | 2,133 | 2,954 | 3,191 | 2,568 | 2,371 | 15,459 | 10,908 | 11,084 | |
Net income | $ (708) | $ 3,656 | $ 3,513 | $ 3,193 | $ 91 | $ 4,419 | $ (3,342) | $ 331 | $ 2,927 | $ 2,109 | $ 2,476 | $ 1,584 | $ 9,655 | $ 1,501 | $ 9,097 | |
Per share information: | ||||||||||||||||
Basic net income per share of common stock | $ (0.04) | $ 0.30 | $ 0.30 | $ 0.27 | $ 0.01 | $ 0.39 | $ (0.30) | $ 0.03 | $ 0.26 | $ 0.24 | $ 0.29 | $ 0.18 | $ 0.73 | $ 0.13 | $ 0.98 | |
Diluted net income per share of common stock | $ (0.04) | $ 0.28 | $ 0.27 | $ 0.25 | $ 0.01 | $ 0.35 | $ (0.26) | $ 0.03 | $ 0.23 | $ 0.20 | $ 0.23 | $ 0.15 | $ 0.67 | $ 0.12 | $ 0.81 | |
Athens Bancshares | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Net interest income | $ 14,053 | $ 66,935 | $ 59,148 | |||||||||||||
Noninterest income | 5,233 | 20,692 | 17,540 | |||||||||||||
Total revenue | 87,627 | 76,688 | ||||||||||||||
Net income | $ 625 | $ 21,167 | $ 5,851 | |||||||||||||
Per share information: | ||||||||||||||||
Basic net income per share of common stock | $ 0.36 | $ 1.24 | $ 0.36 | |||||||||||||
Diluted net income per share of common stock | $ 0.35 | $ 1.14 | $ 0.32 |
Investment Securities - Summary
Investment Securities - Summary of Company's Classification of Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Securities available for sale [Abstract] | ||
Amortized Cost | $ 247,042 | $ 193,360 |
Gross unrealized gains | 1,616 | 1,563 |
Gross unrealized (losses) | (4,850) | (2,302) |
Estimated fair value | 243,808 | 192,621 |
Securities held to maturity [Abstract] | ||
Amortized Cost | 3,734 | 3,759 |
Gross unrealized gains | 54 | 89 |
Gross unrealized (losses) | (3) | |
Estimated fair value | 3,785 | 3,848 |
U. S. government agency securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 11,053 | 11,433 |
Gross unrealized gains | 12 | |
Gross unrealized (losses) | (347) | (168) |
Estimated fair value | 10,706 | 11,277 |
State and municipal securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 62,142 | 51,790 |
Gross unrealized gains | 765 | 1,430 |
Gross unrealized (losses) | (981) | (222) |
Estimated fair value | 61,926 | 52,998 |
Securities held to maturity [Abstract] | ||
Amortized Cost | 3,734 | 3,759 |
Gross unrealized gains | 54 | 89 |
Gross unrealized (losses) | (3) | |
Estimated fair value | 3,785 | 3,848 |
Mortgage-backed securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 146,547 | 108,236 |
Gross unrealized gains | 776 | 40 |
Gross unrealized (losses) | (3,165) | (1,714) |
Estimated fair value | 144,158 | 106,562 |
Asset-backed securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 15,437 | 16,575 |
Gross unrealized gains | 4 | |
Gross unrealized (losses) | (157) | (198) |
Estimated fair value | 15,284 | 16,377 |
Other debt securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 11,863 | 5,326 |
Gross unrealized gains | 71 | 81 |
Gross unrealized (losses) | (200) | |
Estimated fair value | $ 11,734 | $ 5,407 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2017 | Sep. 30, 2013 | Dec. 31, 2018 | |
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, Derivative Positions and Federal Home Loan Bank Advances | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Market value of securities | 111,970,000 | $ 171,542,000 | |
Accounting Standards Update 2017-12 | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Held to maturity securities transferred to available for sale securities | $ 41,665,000 |
Investment Securities - Summa_2
Investment Securities - Summary of Amortized Cost and Fair Value of Debt and Equity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Available-for-sale, Amortized cost [Abstract] | ||
Due in less than one year | $ 3,561 | |
Due one to five years | 23,294 | |
Due five to ten years | 45,662 | |
Due beyond ten years | 12,541 | |
Amortized Cost | 247,042 | $ 193,360 |
Available-for-sale, Estimated fair value [Abstract] | ||
Due in less than one year | 3,573 | |
Due one to five years | 23,472 | |
Due five to ten years | 45,367 | |
Due beyond ten years | 11,954 | |
Total | 243,808 | 192,621 |
Held-to-maturity, Amortized cost [Abstract] | ||
Due in less than one year | 395 | |
Due one to five years | 3,339 | |
Amortized Cost | 3,734 | 3,759 |
Securities held to maturity [Abstract] | ||
Due in less than one year | 396 | |
Due one to five years | 3,389 | |
Total | 3,785 | 3,848 |
Mortgage-backed securities | ||
Available-for-sale, Amortized cost [Abstract] | ||
Amortized cost | 146,547 | |
Amortized Cost | 146,547 | 108,236 |
Available-for-sale, Estimated fair value [Abstract] | ||
Estimated fair value | 144,158 | |
Total | 144,158 | 106,562 |
Asset-backed securities | ||
Available-for-sale, Amortized cost [Abstract] | ||
Amortized cost | 15,437 | |
Amortized Cost | 15,437 | 16,575 |
Available-for-sale, Estimated fair value [Abstract] | ||
Estimated fair value | 15,284 | |
Total | $ 15,284 | $ 16,377 |
Investment Securities - Summa_3
Investment Securities - Summary of Sale of Debt and Equity Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |||
Proceeds | $ 38,322 | $ 46,762 | $ 46,700 |
Gross gains | 116 | 121 | 216 |
Gross losses | $ (113) | $ (190) | $ (146) |
Investment Securities - Summa_4
Investment Securities - Summary of Securities with Unrealized Losses Aggregated by Major Security Type and Length of Time Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | $ 34,154 | $ 44,697 |
Less than 12 months, Gross unrealized (losses) | (574) | (518) |
12 months or more, Estimated fair value | 117,753 | 91,900 |
12 months or more, Gross unrealized losses | (4,279) | (1,784) |
Total, Estimated fair value | 151,907 | 136,597 |
Total, Gross unrealized losses | (4,853) | (2,302) |
U. S. government agency securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | 7,375 | |
Less than 12 months, Gross unrealized (losses) | (90) | |
12 months or more, Estimated fair value | 10,706 | 1,912 |
12 months or more, Gross unrealized losses | (347) | (78) |
Total, Estimated fair value | 10,706 | 9,287 |
Total, Gross unrealized losses | (347) | (168) |
State and municipal securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | 13,455 | 7,490 |
Less than 12 months, Gross unrealized (losses) | (212) | (106) |
12 months or more, Estimated fair value | 17,376 | 5,798 |
12 months or more, Gross unrealized losses | (772) | (116) |
Total, Estimated fair value | 30,831 | 13,288 |
Total, Gross unrealized losses | (984) | (222) |
Mortgage-backed securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | 7,075 | 29,832 |
Less than 12 months, Gross unrealized (losses) | (17) | (322) |
12 months or more, Estimated fair value | 87,232 | 67,813 |
12 months or more, Gross unrealized losses | (3,148) | (1,392) |
Total, Estimated fair value | 94,307 | 97,645 |
Total, Gross unrealized losses | (3,165) | (1,714) |
Asset-backed securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | 8,262 | |
Less than 12 months, Gross unrealized (losses) | (145) | |
12 months or more, Estimated fair value | 2,439 | 16,377 |
12 months or more, Gross unrealized losses | (12) | (198) |
Total, Estimated fair value | 10,701 | 16,377 |
Total, Gross unrealized losses | (157) | $ (198) |
Other debt securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | 5,362 | |
Less than 12 months, Gross unrealized (losses) | (200) | |
Total, Estimated fair value | 5,362 | |
Total, Gross unrealized losses | $ (200) |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | $ 1,429,895 | $ 947,882 | ||
Less net unearned income | (101) | (345) | ||
Total loans | 1,429,794 | 947,537 | ||
Allowance for loan losses | (12,113) | (13,721) | $ (11,634) | $ (10,132) |
Loans, net | 1,417,681 | 933,816 | ||
Commercial real estate | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | 550,446 | 350,622 | ||
Allowance for loan losses | (3,309) | (3,324) | (2,655) | (2,879) |
Consumer real estate | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | 253,562 | 102,581 | ||
Allowance for loan losses | (1,005) | (1,063) | (1,013) | (968) |
Construction and land development | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | 174,670 | 82,586 | ||
Allowance for loan losses | (2,431) | (1,628) | (1,574) | (914) |
Commercial and industrial | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | 404,600 | 373,248 | ||
Allowance for loan losses | (5,036) | (7,209) | (5,618) | (4,693) |
Consumer | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | 25,615 | 6,862 | ||
Allowance for loan losses | (105) | (91) | (76) | (103) |
Other | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | 21,002 | 31,983 | ||
Allowance for loan losses | $ (227) | $ (406) | $ (698) | $ (575) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($)Contract | Dec. 31, 2017USD ($)Contract | Dec. 31, 2016USD ($)Contract | Oct. 01, 2018USD ($) | |
Loans And Leases Receivable Disclosure [Line Items] | ||||
Variable-rate loans | $ 827,491,000 | $ 608,128,000 | ||
Fixed-rate loans | 602,404,000 | 339,754,000 | ||
Minimum loan amount for loans analyzed by credit risk | 500,000 | |||
Total loans | 1,429,895,000 | 947,882,000 | ||
Interest income recognized on a cash basis for impaired loans | 0 | 0 | $ 0 | |
Investments in TDR | 2,100,000 | 1,200,000 | ||
Additional commitments related to TDR | $ 0 | $ 0 | ||
New TDR identified during the period | Contract | 0 | 0 | 1 | |
TDR, payment default within twelve months | Contract | 0 | 0 | 1 | |
Allowance for loan and lease losses, charge-off | $ 4,954,000 | $ 12,769,000 | $ 1,452,000 | |
Loan period considered as payment default | 30 days | |||
Recorded loans with a fair value | $ 344,800,000 | |||
Minimum | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Lease term | 2 years | |||
Maximum | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Lease term | 6 years | |||
Purchased Credit Impaired | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Recorded loans with a fair value | $ 1,700,000 | |||
Consumer | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | $ 25,615,000 | 6,862,000 | ||
TDR, payment default within twelve months | Contract | 1 | |||
Allowance for loan and lease losses, specific reserve | $ 0 | |||
Allowance for loan and lease losses, charge-off | 84,000 | 146,000 | ||
Subsequent default TDR charge-off | $ 100,000 | |||
Doubtful | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | $ 0 | $ 0 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Summary of Risk Category of Loans by Applicable Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 1,429,895 | $ 947,882 |
Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 3,898 | 2,695 |
Commercial real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 550,446 | 350,622 |
Commercial real estate | Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,391 | 1,207 |
Consumer real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 253,562 | 102,581 |
Consumer real estate | Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 922 | |
Construction and land development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 174,670 | 82,586 |
Construction and land development | Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 8 | |
Commercial and industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 404,600 | 373,248 |
Commercial and industrial | Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,546 | 1,488 |
Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 25,615 | 6,862 |
Consumer | Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 31 | |
Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 21,002 | 31,983 |
Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,425,997 | 945,187 |
Performing Financial Instruments | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,406,757 | 922,898 |
Performing Financial Instruments | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 9,696 | 11,193 |
Performing Financial Instruments | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 9,544 | 11,096 |
Performing Financial Instruments | Commercial real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 549,055 | 349,415 |
Performing Financial Instruments | Commercial real estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 547,616 | 349,415 |
Performing Financial Instruments | Commercial real estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 177 | |
Performing Financial Instruments | Commercial real estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,262 | |
Performing Financial Instruments | Consumer real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 252,640 | 102,581 |
Performing Financial Instruments | Consumer real estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 249,273 | 102,571 |
Performing Financial Instruments | Consumer real estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,676 | |
Performing Financial Instruments | Consumer real estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,691 | 10 |
Performing Financial Instruments | Construction and land development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 174,662 | 82,586 |
Performing Financial Instruments | Construction and land development | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 174,591 | 82,586 |
Performing Financial Instruments | Construction and land development | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 52 | |
Performing Financial Instruments | Construction and land development | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 19 | |
Performing Financial Instruments | Commercial and industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 403,054 | 371,760 |
Performing Financial Instruments | Commercial and industrial | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 388,719 | 349,494 |
Performing Financial Instruments | Commercial and industrial | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 7,790 | 11,193 |
Performing Financial Instruments | Commercial and industrial | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 6,545 | 11,073 |
Performing Financial Instruments | Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 25,584 | 6,862 |
Performing Financial Instruments | Consumer | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 25,556 | 6,849 |
Performing Financial Instruments | Consumer | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1 | |
Performing Financial Instruments | Consumer | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 27 | 13 |
Performing Financial Instruments | Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 21,002 | 31,983 |
Performing Financial Instruments | Other | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 21,002 | $ 31,983 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Summary of Changes in Allowance for Loan Losses by Loan Classification (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||
Beginning Balance | $ 13,721 | $ 11,634 | $ 10,132 | $ 13,721 | $ 11,634 | $ 10,132 | |||||||||
Charged-off loans | (4,954) | (12,769) | (1,452) | ||||||||||||
Recoveries | 504 | 1,986 | 125 | ||||||||||||
Provision for loan losses | $ 1,514 | $ 481 | $ 169 | 678 | $ (30) | $ (195) | $ 9,690 | 3,405 | $ 70 | $ 1,639 | $ 183 | 937 | 2,842 | 12,870 | 2,829 |
Ending Balance | 12,113 | 13,721 | 11,634 | 12,113 | 13,721 | 11,634 | |||||||||
Commercial real estate | |||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||
Beginning Balance | 3,324 | 2,655 | 2,879 | 3,324 | 2,655 | 2,879 | |||||||||
Charged-off loans | (350) | ||||||||||||||
Recoveries | 22 | 9 | 52 | ||||||||||||
Provision for loan losses | (37) | 660 | 74 | ||||||||||||
Ending Balance | 3,309 | 3,324 | 2,655 | 3,309 | 3,324 | 2,655 | |||||||||
Consumer real estate | |||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||
Beginning Balance | 1,063 | 1,013 | 968 | 1,063 | 1,013 | 968 | |||||||||
Recoveries | 4 | ||||||||||||||
Provision for loan losses | (62) | 50 | 45 | ||||||||||||
Ending Balance | 1,005 | 1,063 | 1,013 | 1,005 | 1,063 | 1,013 | |||||||||
Construction and land development | |||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||
Beginning Balance | 1,628 | 1,574 | 914 | 1,628 | 1,574 | 914 | |||||||||
Provision for loan losses | 803 | 54 | 660 | ||||||||||||
Ending Balance | 2,431 | 1,628 | 1,574 | 2,431 | 1,628 | 1,574 | |||||||||
Commercial and industrial | |||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||
Beginning Balance | 7,209 | 5,618 | 4,693 | 7,209 | 5,618 | 4,693 | |||||||||
Charged-off loans | (4,831) | (12,769) | (956) | ||||||||||||
Recoveries | 395 | 1,865 | 23 | ||||||||||||
Provision for loan losses | 2,263 | 12,495 | 1,858 | ||||||||||||
Ending Balance | 5,036 | 7,209 | 5,618 | 5,036 | 7,209 | 5,618 | |||||||||
Consumer | |||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||
Beginning Balance | 91 | 76 | 103 | 91 | 76 | 103 | |||||||||
Charged-off loans | (84) | (146) | |||||||||||||
Recoveries | 75 | 112 | 50 | ||||||||||||
Provision for loan losses | 23 | (97) | 69 | ||||||||||||
Ending Balance | 105 | 91 | 76 | 105 | 91 | 76 | |||||||||
Other | |||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||
Beginning Balance | $ 406 | $ 698 | $ 575 | 406 | 698 | 575 | |||||||||
Charged-off loans | (39) | ||||||||||||||
Recoveries | 8 | ||||||||||||||
Provision for loan losses | (148) | (292) | 123 | ||||||||||||
Ending Balance | $ 227 | $ 406 | $ 698 | $ 227 | $ 406 | $ 698 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Summary of Breakdown of Allowance for Loan Losses and Loan Portfolio by Loan Category (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | $ 12,113 | $ 13,621 | ||
Individually evaluated for impairment | 100 | |||
Allowance for Loan Losses, Ending Balance | 12,113 | 13,721 | $ 11,634 | $ 10,132 |
Loans: | ||||
Collectively evaluated for impairment | 1,425,997 | 945,187 | ||
Individually evaluated for impairment | 3,898 | 2,695 | ||
Total | 1,429,895 | 947,882 | ||
Commercial real estate | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 3,309 | 3,324 | ||
Allowance for Loan Losses, Ending Balance | 3,309 | 3,324 | 2,655 | 2,879 |
Loans: | ||||
Collectively evaluated for impairment | 549,055 | 349,415 | ||
Individually evaluated for impairment | 1,391 | 1,207 | ||
Total | 550,446 | 350,622 | ||
Consumer real estate | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 1,005 | 1,063 | ||
Allowance for Loan Losses, Ending Balance | 1,005 | 1,063 | 1,013 | 968 |
Loans: | ||||
Collectively evaluated for impairment | 252,640 | 102,581 | ||
Individually evaluated for impairment | 922 | |||
Total | 253,562 | 102,581 | ||
Construction and land development | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 2,431 | 1,628 | ||
Allowance for Loan Losses, Ending Balance | 2,431 | 1,628 | 1,574 | 914 |
Loans: | ||||
Collectively evaluated for impairment | 174,662 | 82,586 | ||
Individually evaluated for impairment | 8 | |||
Total | 174,670 | 82,586 | ||
Commercial and industrial | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 5,036 | 7,109 | ||
Individually evaluated for impairment | 100 | |||
Allowance for Loan Losses, Ending Balance | 5,036 | 7,209 | 5,618 | 4,693 |
Loans: | ||||
Collectively evaluated for impairment | 403,054 | 371,760 | ||
Individually evaluated for impairment | 1,546 | 1,488 | ||
Total | 404,600 | 373,248 | ||
Consumer | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 105 | 91 | ||
Allowance for Loan Losses, Ending Balance | 105 | 91 | 76 | 103 |
Loans: | ||||
Collectively evaluated for impairment | 25,584 | 6,862 | ||
Individually evaluated for impairment | 31 | |||
Total | 25,615 | 6,862 | ||
Other | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 227 | 406 | ||
Allowance for Loan Losses, Ending Balance | 227 | 406 | $ 698 | $ 575 |
Loans: | ||||
Collectively evaluated for impairment | 21,002 | 31,983 | ||
Total | $ 21,002 | $ 31,983 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Allocation of ALL with Corresponding Percentage of Loans in Each Category to Total Loans, Net of Deferred Fee (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 12,113 | $ 13,721 | $ 11,634 | $ 10,132 |
Allowance for loan and lease losses, Percentage of total loans, net of deferred fees | 0.85% | 1.45% | ||
Commercial real estate | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 3,309 | $ 3,324 | 2,655 | 2,879 |
Allowance for loan and lease losses, Percentage of total loans, net of deferred fees | 0.23% | 0.35% | ||
Consumer real estate | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 1,005 | $ 1,063 | 1,013 | 968 |
Allowance for loan and lease losses, Percentage of total loans, net of deferred fees | 0.07% | 0.11% | ||
Construction and land development | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 2,431 | $ 1,628 | 1,574 | 914 |
Allowance for loan and lease losses, Percentage of total loans, net of deferred fees | 0.17% | 0.17% | ||
Commercial and industrial | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 5,036 | $ 7,209 | 5,618 | 4,693 |
Allowance for loan and lease losses, Percentage of total loans, net of deferred fees | 0.35% | 0.76% | ||
Consumer | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 105 | $ 91 | 76 | 103 |
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 | $ 227 | $ 406 | $ 698 | $ 575 |
Allowance for loan and lease losses, Percentage of total loans, net of deferred fees | 0.02% | 0.04% |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of Information Related to Impaired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | $ 3,898 | $ 1,207 |
Impaired loans with no related allowance recorded, Unpaid principal balance | 9,403 | 1,645 |
Impaired loans with an allowance recorded, Related allowance | 100 | |
Impaired loans with an allowance recorded, Recorded investment | 1,488 | |
Impaired loans with an allowance recorded, Unpaid principal balance | 2,770 | |
Recorded investment | 3,898 | 2,695 |
Unpaid principal balance | 9,403 | 4,415 |
Commercial real estate | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 1,391 | 1,207 |
Impaired loans with no related allowance recorded, Unpaid principal balance | 1,775 | 1,645 |
Consumer real estate | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 922 | |
Impaired loans with no related allowance recorded, Unpaid principal balance | 1,204 | |
Construction and land development | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 8 | |
Impaired loans with no related allowance recorded, Unpaid principal balance | 18 | |
Commercial and industrial | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 1,546 | |
Impaired loans with no related allowance recorded, Unpaid principal balance | 6,350 | |
Impaired loans with an allowance recorded, Related allowance | 100 | |
Impaired loans with an allowance recorded, Recorded investment | 1,488 | |
Impaired loans with an allowance recorded, Unpaid principal balance | $ 2,770 | |
Consumer | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 31 | |
Impaired loans with no related allowance recorded, Unpaid principal balance | $ 56 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Summary of Average Recorded Investment and Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Average recorded investment | $ 7,041 | $ 1,258 | $ 1,020 |
Impaired loans with no related allowance recorded, Interest income recognized | 281 | ||
Impaired loans with an allowance recorded, Average recorded investment | 2,077 | 2,129 | |
Impaired loans with an allowance recorded, Interest income recognized | 44 | ||
Average recorded investment | 7,041 | 3,335 | 3,149 |
Interest income recognized | 281 | 44 | |
Commercial real estate | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Average recorded investment | 1,198 | 1,258 | 655 |
Impaired loans with no related allowance recorded, Interest income recognized | 158 | ||
Impaired loans with an allowance recorded, Average recorded investment | 974 | ||
Consumer real estate | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Average recorded investment | 185 | 302 | |
Construction and land development | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Average recorded investment | 94 | ||
Impaired loans with no related allowance recorded, Interest income recognized | 2 | ||
Commercial and industrial | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Average recorded investment | 5,557 | ||
Impaired loans with no related allowance recorded, Interest income recognized | 121 | ||
Impaired loans with an allowance recorded, Average recorded investment | $ 2,077 | 1,155 | |
Impaired loans with an allowance recorded, Interest income recognized | 44 | ||
Consumer | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Average recorded investment | $ 7 | $ 63 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Schedule of Aging of Recorded Investment in Past-due Loans, by Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | $ 1,595 | $ 2,407 |
Loans Not Past Due | 1,428,300 | 945,475 |
Total | 1,429,895 | 947,882 |
Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 527 | |
Loans Not Past Due | 549,919 | 350,622 |
Total | 550,446 | 350,622 |
Consumer real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 919 | 218 |
Loans Not Past Due | 252,643 | 102,363 |
Total | 253,562 | 102,581 |
Construction and land development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 174,670 | 82,586 |
Total | 174,670 | 82,586 |
Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 54 | 2,176 |
Loans Not Past Due | 404,546 | 371,072 |
Total | 404,600 | 373,248 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 95 | 13 |
Loans Not Past Due | 25,520 | 6,849 |
Total | 25,615 | 6,862 |
Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 21,002 | 31,983 |
Total | 21,002 | 31,983 |
30 - 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 475 | 1,967 |
30 - 59 Days Past Due [Member] | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 300 | |
30 - 59 Days Past Due [Member] | Consumer real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 69 | |
30 - 59 Days Past Due [Member] | Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 54 | 1,967 |
30 - 59 Days Past Due [Member] | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 52 | |
60 - 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 302 | 209 |
60 - 89 Days Past Due [Member] | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 227 | |
60 - 89 Days Past Due [Member] | Consumer real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 75 | |
60 - 89 Days Past Due [Member] | Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 209 | |
Greater than 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 818 | 231 |
Greater than 89 Days Past Due [Member] | Consumer real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 775 | 218 |
Greater than 89 Days Past Due [Member] | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | $ 43 | $ 13 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Schedule of Non-Accrual Loans, Past Due Loans over 89 Days and Accruing and Troubled Debt Restructurings (TDR) by Class of Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | $ 2,078 | $ 2,695 |
Past Due Over 89 Days and Accruing | 214 | 231 |
Troubled Debt Restructurings | 1,391 | 1,206 |
Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 1,207 | |
Troubled Debt Restructurings | 1,391 | 1,206 |
Consumer real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 1,187 | |
Past Due Over 89 Days and Accruing | 214 | 218 |
Construction and Land Development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 19 | |
Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 817 | 1,488 |
Consumer | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | $ 55 | |
Past Due Over 89 Days and Accruing | $ 13 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Schedule of Loans by Class Modified as TDR (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018Contract | Dec. 31, 2017Contract | Dec. 31, 2016USD ($)Contract | |
Financing Receivable Modifications [Line Items] | |||
Number of contracts | Contract | 0 | 0 | 1 |
Pre modification outstanding recorded investment | $ 1,948 | ||
Post modification outstanding recorded investment, net of related allowance | $ 1,170 | ||
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 |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses - Schedule of Loans by Class Modified as TDR for Which There Was Payment Default Within Twelve Months Following Modification (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018Contract | Dec. 31, 2017Contract | Dec. 31, 2016USD ($)Contract | |
Financing Receivable Modifications [Line Items] | |||
Number of contracts | Contract | 0 | 0 | 1 |
Recorded investment | $ | $ 124 | ||
Consumer | |||
Financing Receivable Modifications [Line Items] | |||
Number of contracts | Contract | 1 | ||
Recorded investment | $ | $ 124 |
Loans and Allowance for Loan_15
Loans and Allowance for Loan Losses - Summary of the contractually required payments (Details) - Athens Bancshares $ in Thousands | Oct. 01, 2018USD ($) |
Purchased Credit Impaired | |
Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield Movement Schedule [Line Items] | |
Contractually required payments | $ 3,151 |
Nonaccretable difference | (1,049) |
Cash flows expected to be collected at acquisition | 2,102 |
Accretable yield | (436) |
Fair value of PCI loans at acquisition date | 1,666 |
Purchased Non Impaired [Member] | |
Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield Movement Schedule [Line Items] | |
Contractually required payments | 404,692 |
Fair value of PCI loans at acquisition date | 343,167 |
Contractual cash flows not expected to be collected | $ 1,807 |
Loans and Allowance for Loan_16
Loans and Allowance for Loan Losses - Schedule of activity in purchased credit impaired loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield Movement Schedule [Line Items] | |
Change due to payments received and accretion | $ (46) |
Balance, ending, carrying value | 1,620 |
Accretable Yield For PCI Loans [Member] | |
Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield Movement Schedule [Line Items] | |
Other | 13 |
Balance, ending, carrying value | 440 |
Accretion | (9) |
Athens Bancshares | |
Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield Movement Schedule [Line Items] | |
Additions due to acquisition of Athens Bancshares | 1,666 |
Athens Bancshares | Accretable Yield For PCI Loans [Member] | |
Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield Movement Schedule [Line Items] | |
Additions due to acquisition of Athens Bancshares | $ 436 |
Loans and Allowance for Loan_17
Loans and Allowance for Loan Losses - Schedule of Components of Direct Financing Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Leases [Abstract] | ||
Total minimum lease payments receivable | $ 379 | $ 714 |
Less: Unearned income | (19) | (49) |
Net leases | $ 360 | $ 665 |
Loans and Allowance for Loan_18
Loans and Allowance for Loan Losses - Summary of Future Minimum Lease Payments Receivable under Direct Financing Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Leases [Abstract] | ||
2019 | $ 178 | |
2020 | 167 | |
2021 | 34 | |
Future minimum lease payments receivable | $ 379 | $ 714 |
Loan Servicing - Additional Inf
Loan Servicing - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2017Loan | Dec. 31, 2018USD ($) | |
Transfers And Servicing [Abstract] | ||
Loan principal balance | $ 170,100,000 | |
Number of mortgage loans | Loan | 0 | |
Custodial escrow balances maintained In connection with serviced loans | $ 462,000 |
Loan Servicing - Schedule of Ac
Loan Servicing - Schedule of Activity for Loan Servicing Rights and Related Valuation Allowance (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Loan servicing rights: | |
Additions | $ 1,809 |
Amortized to offset other noninterest income | (73) |
Balance at end of period | $ 1,736 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 21,654 | $ 8,202 |
Less accumulated depreciation and amortization | (2,833) | (2,318) |
Premises and equipment, net | $ 18,821 | 5,884 |
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 | $ 9,965 | 3,586 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 939 | 777 |
Leasehold improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, useful lives | 1 year | |
Leasehold improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, useful lives | 17 years | |
Furniture and equipment | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 3,730 | 2,659 |
Furniture and equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, useful lives | 1 year | |
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 | $ 2,997 | $ 1,180 |
Fixed Assets In Process | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 4,023 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Line Items] | |||
Premises and equipment depreciation and amortization expense | $ 516,000 | $ 401,000 | $ 360,000 |
Noncancelable lease arrangements | |||
Property Plant And Equipment [Line Items] | |||
Lease extension maturity period | 2032 | ||
Rent expenses related to leases | $ 1,677,000 | $ 1,521,000 | $ 1,016,000 |
Premises and Equipment - Summ_2
Premises and Equipment - Summary of Future Minimum Payments under Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Property Plant And Equipment [Abstract] | |
2019 | $ 1,538 |
2020 | 1,539 |
2021 | 1,567 |
2022 | 1,453 |
2023 | 1,402 |
Thereafter | 8,821 |
Total future minimum lease payments | $ 16,320 |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets - Summary of Change In Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning of year | $ 6,219 | $ 6,219 |
Acquired goodwill | 31,291 | 0 |
Impairment | 0 | 0 |
End of year | $ 37,510 | $ 6,219 |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets - Summary of Acquired Intangible Assets (Details) - Core Deposit - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 9,267 | $ 287 |
Accumulated Amortization | $ (729) | $ (264) |
Goodwill And Intangible Asset_4
Goodwill And Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Aggregate amortization expense | $ 465,000 | $ 48,000 | $ 54,000 |
Goodwill And Intangible Asset_5
Goodwill And Intangible Assets - Summary of Estimated Amortization Expense (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2019 | $ 1,655 |
2020 | 1,477 |
2021 | 1,299 |
2022 | 1,121 |
2023 | 943 |
Thereafter | 2,043 |
Total | $ 8,538 |
Other Real Estate Owned - Summa
Other Real Estate Owned - Summary of Other Real Estate Owned Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Real Estate Roll Forward | |||
Beginning balance | $ 0 | $ 0 | $ 216 |
Additions due to acquisition of Athens Bancshares | 988 | 0 | 0 |
Loans transferred to other real estate owned | 0 | 0 | 0 |
Direct write-downs | 0 | 0 | 0 |
Sales of other real estate owned | 0 | 0 | (216) |
End of year | $ 988 | $ 0 | $ 0 |
Other Real Estate Owned - Sum_2
Other Real Estate Owned - Summary of Valuation Allowance Activity in Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Real Estate Owned Valuation Allowance Roll Forward | |||
Beginning balance | $ 0 | $ 0 | $ 450 |
Additions/(recoveries) charged/(credited) to expense | 0 | 0 | 0 |
Reductions from sales of other real estate owned | 0 | 0 | (450) |
Direct write-downs | 0 | 0 | 0 |
End of year | $ 0 | $ 0 | $ 0 |
Other Real Estate Owned - Sum_3
Other Real Estate Owned - Summary of Expenses Related to Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Real Estate [Abstract] | |||
Net (gain) loss on sales | $ 0 | $ 0 | $ (157) |
Provision for unrealized losses | 0 | 0 | 0 |
Operating expenses, net of rental income | 0 | 0 | 14 |
Total | $ 0 | $ 0 | $ (143) |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
FDIC deposit insurance limit | $ 250,000 | $ 250,000 |
Time deposits | 98,086,000 | 54,460,000 |
Deposit accounts in overdraft status reclassified to loans | $ 193,000 | $ 19,000 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Maturities Of Time Deposits [Abstract] | ||
2019 | $ 254,839 | |
2020 | 57,800 | |
2021 | 15,167 | |
2022 | 12,068 | |
2023 | 8,294 | |
Thereafter | 259 | |
Total | $ 348,427 | $ 176,197 |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances - Additional Information (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank Advances [Line Items] | ||
Outstanding borrowings | $ 125,000,000 | $ 70,000,000 |
Investment securities, FHLB stock and commercial and residential real estate mortgage loans | ||
Federal Home Loan Bank Advances [Line Items] | ||
Federal Home Loan Bank Advances Collateralized Investment Securities Value | 3,900,000 | |
Mortgage loans collateralized amount | 665,700,000 | |
Amount of available credit | $ 71,900,000 |
Federal Home Loan Bank Advanc_4
Federal Home Loan Bank Advances - Summary of Contractual Maturities and Average Effective Rates of Outstanding Advances (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank Advances Maturities Summary [Abstract] | ||
2018 | $ 70,000,000 | |
2019 | $ 125,000,000 | |
Total amount | $ 125,000,000 | $ 70,000,000 |
2018 | 1.66% | |
2019 | 2.48% | |
Total interest rates | 2.48% | 1.66% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Changes In Accumulated Other Comprehensive Income (Loss) By Component, Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ 146,946 | $ 139,207 | $ 108,586 |
Other comprehensive income (loss) before reclassification, net of tax | 67 | 4,811 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (856) | (928) | |
Net current period other comprehensive income (loss) | (789) | 3,883 | (1,237) |
Ending balance | 254,379 | 146,946 | 139,207 |
Gains and Losses on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (3,679) | (4,241) | |
Other comprehensive income (loss) before reclassification, net of tax | 1,891 | 1,499 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (848) | (770) | |
Net current period other comprehensive income (loss) | 1,043 | 729 | |
Reclassification of accumulated other comprehensive income due to tax rate change | (167) | ||
Ending balance | (2,636) | (3,679) | (4,241) |
Unrealized Gains and Losses on Available for Sale Securities | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 1,162 | (698) | |
Other comprehensive income (loss) before reclassification, net of tax | (1,844) | 3,077 | |
Amounts reclassified for securities transferredfrom held-to-maturity to available-for-sale | (1,086) | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 2 | (41) | |
Net current period other comprehensive income (loss) | (1,842) | 1,950 | |
Reclassification of accumulated other comprehensive income due to tax rate change | (90) | ||
Ending balance | (680) | 1,162 | (698) |
Unrealized Losses on Securities Transferred to Held to Maturity | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (10) | (1,212) | |
Other comprehensive income (loss) before reclassification, net of tax | 20 | 235 | |
Amounts reclassified for securities transferredfrom held-to-maturity to available-for-sale | 1,086 | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (10) | (117) | |
Net current period other comprehensive income (loss) | 10 | 1,204 | |
Reclassification of accumulated other comprehensive income due to tax rate change | (2) | ||
Ending balance | (10) | (1,212) | |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (2,527) | (6,151) | (4,914) |
Net current period other comprehensive income (loss) | (789) | 3,883 | (1,237) |
Reclassification of accumulated other comprehensive income due to tax rate change | (259) | ||
Ending balance | $ (3,316) | $ (2,527) | $ (6,151) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Summary of Significant Amounts Reclassified out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||||||
Net (gain) loss on sale of securities | $ 3 | $ (66) | $ 121 | ||||||||||||
Interest expense - Federal Home Loan Bank advances | (2,533) | (1,559) | (475) | ||||||||||||
Income tax (expense) benefit | $ 535 | $ (554) | $ (665) | $ (483) | $ (4,494) | $ (1,516) | $ 1,328 | $ 47 | $ (1,495) | $ (1,042) | $ (1,159) | $ (796) | (1,167) | (4,635) | (4,493) |
Net income | $ (708) | $ 3,656 | $ 3,513 | $ 3,193 | $ 91 | $ 4,419 | $ (3,342) | $ 331 | $ 2,927 | $ 2,109 | $ 2,476 | $ 1,584 | 9,655 | 1,501 | 9,097 |
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 | (441) | (430) | (151) | ||||||||||||
Interest expense - Federal Home Loan Bank advances | (479) | (429) | (265) | ||||||||||||
Income tax (expense) benefit | 72 | 89 | |||||||||||||
Net income | (848) | (770) | (416) | ||||||||||||
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) loss on sale of securities | 3 | (66) | 121 | ||||||||||||
Income tax (expense) benefit | (1) | 25 | (46) | ||||||||||||
Net income | 2 | (41) | 75 | ||||||||||||
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 | (14) | (190) | (167) | ||||||||||||
Income tax (expense) benefit | 4 | 73 | 64 | ||||||||||||
Net income | $ (10) | $ (117) | $ (103) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||||||||||||||
Federal | $ 15 | $ 214 | $ 4,029 | ||||||||||||
State | (23) | 36 | 759 | ||||||||||||
Total Current tax expense (Benefit) | (8) | 250 | 4,788 | ||||||||||||
Deferred: | |||||||||||||||
Federal | 872 | 4,218 | (395) | ||||||||||||
State | 303 | 167 | 100 | ||||||||||||
Total deferred tax expense (Benefit) | 1,175 | 4,385 | (295) | ||||||||||||
Total | $ (535) | $ 554 | $ 665 | $ 483 | $ 4,494 | $ 1,516 | $ (1,328) | $ (47) | $ 1,495 | $ 1,042 | $ 1,159 | $ 796 | $ 1,167 | $ 4,635 | $ 4,493 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
Federal statutory income tax rate | 21.00% | 21.00% | 21.00% |
Decrease in net deferred tax assets due to tax reforms | $ 3,562,000 | ||
Increase in income tax expense due to tax reforms | 3,600,000 | ||
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 | $ 8,561,000 | ||
Federal net operating loss carryforwards, start year | 2030 | ||
Federal net operating loss carryforwards, end year | 2032 | ||
Federal net operating loss carryforwards, not subject to expiration | $ 4,548,000 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Actual Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||||||
Computed "expected" tax expense | $ 2,272 | $ 2,086 | $ 4,621 | ||||||||||||
State income taxes, net of effect of federal income taxes | 221 | 134 | 567 | ||||||||||||
Tax-exempt interest income | (298) | (418) | (394) | ||||||||||||
Earnings on bank owned life insurance contracts | (559) | (197) | (204) | ||||||||||||
Disallowed expenses | 93 | 86 | 60 | ||||||||||||
Excess tax benefits related to stock compensation | (857) | (632) | |||||||||||||
Write-down of deferred tax assets due to tax reform | 3,562 | ||||||||||||||
Nondeductible merger expenses | 281 | ||||||||||||||
Other | 14 | 14 | (157) | ||||||||||||
Total | $ (535) | $ 554 | $ 665 | $ 483 | $ 4,494 | $ 1,516 | $ (1,328) | $ (47) | $ 1,495 | $ 1,042 | $ 1,159 | $ 796 | $ 1,167 | $ 4,635 | $ 4,493 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Allowance for loan losses | $ 2,795 | $ 3,227 |
Net operating loss carryforward | 2,002 | 843 |
Organization and preopening costs | 457 | 557 |
Stock-based compensation | 835 | 672 |
Acquired loans | 1,319 | 124 |
Acquired deposits | 106 | 22 |
Nonaccrual interest | 75 | 25 |
Accrued incentive compensation | 97 | |
Reserve for contingencies | 143 | 496 |
Accrued contributions | 207 | 169 |
Unrealized loss on securities available-for-sale | 845 | 193 |
Unrealized loss on securities held-to-maturity | 4 | |
Cash flow hedge | 219 | 359 |
Accrued vacation | 45 | 45 |
Other | 134 | |
Deferred tax assets | 9,145 | 6,870 |
Deferred tax liabilities: | ||
Prepaid expenses | 77 | 134 |
Depreciation | 645 | 39 |
Goodwill | 81 | 138 |
Amortization of core deposit intangible | 1,398 | 6 |
Other | 334 | |
Deferred tax liabilities | 2,535 | 317 |
Net deferred tax asset | $ 6,610 | $ 6,553 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Financial Instruments Representing Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments And Contingencies Disclosure [Abstract] | ||
Unused commitments to extend credit | $ 707,675 | $ 584,494 |
Standby letters of credit | 12,273 | 11,552 |
Total | $ 719,948 | $ 596,046 |
Concentration of Credit Risk -
Concentration of Credit Risk - Additional Information (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Concentration Risk [Line Items] | ||
Cash due from banks, federal funds sold and interest bearing deposits | $ 105,443,000 | $ 82,797,000 |
Excess Of Insured Limits | ||
Concentration Risk [Line Items] | ||
Cash due from banks, federal funds sold and interest bearing deposits | $ 89,000,000 | $ 38,000,000 |
Regulatory Matters And Restri_3
Regulatory Matters And Restrictions On Dividends - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)Capital | Dec. 31, 2017USD ($) | |
Banking And Thrift [Abstract] | ||
Number of capital categories | Capital | 5 | |
Dividends | $ 22.2 | $ 19.3 |
Dividends paid | $ 1.2 |
Regulatory Matters And Restri_4
Regulatory Matters And Restrictions On Dividends - Schedule of Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
CapStar Financial Holdings, Inc. | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total capital to risk-weighted assets, actual amount | $ 222,030 | $ 156,176 | |
Tier I capital to risk-weighted assets, actual amount | 209,738 | 142,276 | |
Tier I capital to average assets, actual amount | $ 209,738 | $ 142,276 | |
Total capital to risk-weighted assets, actual ratio | 12.80% | 12.50% | |
Tier I capital to risk-weighted assets, actual ratio | 12.10% | 11.40% | |
Tier I capital to average assets, actual ratio | 11.10% | 10.70% | |
Total capital to risk-weighted assets, minimum capital requirement amount | [1] | $ 138,336 | $ 99,932 |
Tier I capital to risk-weighted assets, minimum capital requirement amount | [1] | 103,752 | 74,949 |
Tier I capital to average assets, minimum capital requirement amount | [1] | $ 75,867 | $ 53,218 |
Total capital to risk-weighted assets, minimum capital requirement ratio | [1] | 8.00% | 8.00% |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | [1] | 6.00% | 6.00% |
Tier I capital to average assets, minimum capital requirement ratio | [1] | 4.00% | 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 | $ 200,738 | $ 133,445 | |
Tier I capital to risk-weighted assets, actual ratio | 11.60% | 10.70% | |
Tier I capital to risk-weighted assets, minimum capital requirement amount | [1] | $ 77,814 | $ 56,212 |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | [1] | 4.50% | 4.50% |
CapStar Bank | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total capital to risk-weighted assets, actual amount | $ 201,972 | $ 142,138 | |
Tier I capital to risk-weighted assets, actual amount | 189,680 | 128,238 | |
Tier I capital to average assets, actual amount | $ 189,680 | $ 128,238 | |
Total capital to risk-weighted assets, actual ratio | 11.70% | 11.40% | |
Tier I capital to risk-weighted assets, actual ratio | 11.00% | 10.30% | |
Tier I capital to average assets, actual ratio | 10.00% | 9.60% | |
Total capital to risk-weighted assets, minimum capital requirement amount | [1] | $ 138,294 | $ 99,928 |
Tier I capital to risk-weighted assets, minimum capital requirement amount | [1] | 103,721 | 74,946 |
Tier I capital to average assets, minimum capital requirement amount | [1] | $ 75,828 | $ 53,215 |
Total capital to risk-weighted assets, minimum capital requirement ratio | [1] | 8.00% | 8.00% |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | [1] | 6.00% | 6.00% |
Tier I capital to average assets, minimum capital requirement ratio | [1] | 4.00% | 4.00% |
Total capital to risk-weighted assets, minimum to be well capitalized amount | [2] | $ 172,868 | $ 124,909 |
Tier I capital to risk-weighted assets, minimum to be well capitalized amount | [2] | 138,294 | 99,928 |
Tier I capital to average assets, minimum to be well capitalized amount | [2] | $ 94,785 | $ 66,519 |
Total capital to risk-weighted assets, minimum to be well capitalized ratio | [2] | 10.00% | 10.00% |
Tier I capital to risk-weighted assets, minimum to be well capitalized ratio | [2] | 8.00% | 8.00% |
Tier I capital to average assets, minimum to be well capitalized ratio | [2] | 5.00% | 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 | $ 173,180 | $ 111,907 | |
Tier I capital to risk-weighted assets, actual ratio | 10.00% | 9.00% | |
Tier I capital to risk-weighted assets, minimum capital requirement amount | [1] | $ 77,791 | $ 56,209 |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | [1] | 4.50% | 4.50% |
Tier I capital to risk-weighted assets, minimum to be well capitalized amount | [2] | $ 112,364 | $ 81,191 |
Tier I capital to risk-weighted assets, minimum to be well capitalized ratio | [2] | 6.50% | 6.50% |
[1] | For the calendar year 2018, the Company was required to maintain a capital conservation buffer of Tier 1 common equity capital in excess of minimum risk-based capital ratios by at least 1.875% to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. | ||
[2] | For the Company to be well-capitalized, the Bank must be well-capitalized and the Company must not be subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve to meet and maintain a specific capital level for any capital measure. |
Regulatory Matters And Restri_5
Regulatory Matters And Restrictions On Dividends - Schedule of Capital Amounts and Ratios (Parenthetical) (Details) | Dec. 31, 2018 |
Banking And Thrift [Abstract] | |
Minimum risk based capital ratios | 1.875% |
Nonvoting and Series A Prefer_2
Nonvoting and Series A Preferred Stock and Stock Warrants - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 14, 2008 | |
Class Of Stock [Line Items] | ||||
Preferred stock, shares issued | 878,049 | 878,049 | ||
Expire period | 10 years | |||
Warrants grant date | Jul. 14, 2008 | |||
Warrants outstanding | 0 | |||
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 | 0 | |||
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 | 0 | |||
Initial Public Offering | Common Stock | ||||
Class Of Stock [Line Items] | ||||
Preferred shares converted to common stock | 731,707 | |||
Nonvoting | ||||
Class Of Stock [Line Items] | ||||
Common stock, shares authorized | 5,000,000 | 5,000,000 | ||
Common stock, conversion basis | one-to-one basis | |||
Common stock, shares outstanding | 132,561 | 132,561 | ||
Warrants issued to purchase common stock | 500,000 | |||
Purchase price of share | $ 10.25 | |||
Nonvoting | 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, 2018Nomineeshares | Dec. 21, 2018shares | |
Share Based Compensation [Abstract] | ||
Shareholders' agreement date | Aug. 22, 2016 | |
Number of nominee | Nominee | 1 | |
Registrable securities | 500,000 | |
Number of additional shares registered | 3,652,094 |
Stock Options and Restricted _3
Stock Options and Restricted Shares - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 1,814,000 | ||
Total fair value of shares vested | $ 2,804,000 | $ 1,174,000 | $ 513,000 |
Vesting period | 3 years | ||
Contractual term | 10 years | ||
Expected dividend yield | 0.00% | ||
Options granted | 0 | 0 | |
Unrecognized compensation cost | $ 32,000 | ||
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 1 month 6 days | ||
Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Cost expected to be recognized over a weighted-average period | 10 months 24 days | ||
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 share and stock option grants | 422,900 | ||
CapStar Bank 2008 Stock Incentive Plan | Director | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares of stock reserved for issuance of stock incentives | 400,000 |
Stock Options and Restricted _4
Stock Options and Restricted Shares - Summary of Company Recognized Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Stock-based compensation expense before income taxes | $ 2,079 | $ 1,061 | $ 842 |
Less: deferred tax benefit | (543) | (406) | (322) |
Reduction of net income | $ 1,536 | $ 655 | $ 520 |
Stock Options and Restricted _5
Stock Options and Restricted Shares - Summary of Changes in Company's Nonvested Restricted Shares (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Restricted Shares, Abstract | |
Restricted Shares, Nonvested Beginning Balance | shares | 187,253 |
Restricted Shares, Granted | shares | 140,131 |
Restricted Shares, Vested | shares | (161,604) |
Restricted Shares, Forfeited | shares | (8,164) |
Restricted Shares, Nonvested Ending Balance | shares | 157,616 |
Weighted Average Grant Date Fair Value, Abstract | |
Weighted Average Grant Date Fair Value, Nonvested Beginning Balance | $ / shares | $ 14.21 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 16.73 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 13.54 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 15.92 |
Weighted Average Grant Date Fair Value, Nonvested Ending Balance | $ / shares | $ 17 |
Stock Options and Restricted _6
Stock Options and Restricted Shares - Summary of Fair Value of Options Granted Using Weighted Average Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Expected dividend yield | 0.00% | |
Expected term (in years) | 7 years 5 months 23 days | |
Expected stock price volatility | 17.20% | |
Risk-free interest rate | 1.66% | |
Pre-vest forfeiture rate | 10.25% |
Stock Options and Restricted _7
Stock Options and Restricted Shares - Summary of Activity in Stock Options (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Shares, Abstract | ||
Shares Outstanding, Beginning Balance | 756,050 | |
Additions due to acquisition of Athens Bancshares | 548,051 | |
Shares Outstanding, Granted | 0 | 0 |
Shares Outstanding, Exercised | (796,198) | |
Shares Outstanding, Ending Balance | 507,903 | 756,050 |
Shares, Fully Vested and Expected to Vest | 506,783 | |
Shares, Exercisable at End of Period | 480,403 | |
Weighted Average Exercise Price, Abstract | ||
Weighted Average Exercise Price Outstanding, Beginning Balance | $ 10.50 | |
Additions due to acquisition of Athens Bancshares | 5.06 | |
Weighted Average Exercise Price Outstanding, Granted | ||
Weighted Average Exercise Price Outstanding, Exercised | 8.16 | |
Weighted Average Exercise Price Outstanding, Forfeited or expired | ||
Weighted Average Exercise Price Outstanding, Ending Balance | 8.66 | $ 10.50 |
Weighted Average Exercise Price, Fully vested and expected to vest | 8.66 | |
Weighted Average Exercise Price, Exercisable at End of Period | $ 8.46 | |
Weighted Average Remaining Contractual Term (year), Abstract | ||
Weighted Average Remaining Contractual Term Outstanding | 4 years | |
Weighted Average Remaining Contractual Term, Fully Vested and Expected to Vest | 4 years 1 month 6 days | |
Weighted Average Remaining Contractual Term, Exercisable at End of Period | 4 years |
Stock Options and Restricted _8
Stock Options and Restricted Shares - Information Related to Stock Options (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Intrinsic value of options exercised | $ 7,654,738 | $ 2,010,536 | $ 53,756 |
Cash received from option exercises | 6,897,845 | 2,013,840 | 96,306 |
Tax benefit realized from option exercises | $ 846,725 | $ 774,056 | $ 20,583 |
Weighted average fair value of options granted | $ 3.16 |
Employee Benefit Plans- Additio
Employee Benefit Plans- Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | $ 639,000 | $ 550,000 | $ 536,000 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - Designated as Hedging Instrument - Interest Rate Swaps - Cash Flow Hedges - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments [Line Items] | ||
Notional amounts | $ 20,000,000 | $ 20,000,000 |
Interest expense | 275,000 | $ 233,000 |
Investment securities pledged collateral to counterparties | 2,038,000 | |
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, 2018 | Dec. 31, 2017 | |
Derivative Instruments [Line Items] | ||
Notional amounts | $ 20,000,000 | $ 20,000,000 |
Weighted average pay rates | 3.54% | 3.54% |
Weighted average receive rates | Dec. 31, 2018: 3 month LIBOR and Dec. 31, 2017: 3 month LIBOR | |
Weighted average maturity | 4 years 6 months | 5 years 6 months |
Fair value | $ (836,000) | $ (1,375,000) |
Amount of unrealized loss recognized in accumulated other comprehensive income, net of tax | $ (617,000) | $ (849,000) |
Derivative Instruments - Summ_2
Derivative Instruments - Summary of Customer Related Interest Rate Swaps (Details) - Interest Rate Swaps - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments [Line Items] | ||
Interest rate swap, Notional amount | $ 58,252,000 | $ 83,726,000 |
Pay fixed/receive variable swaps | ||
Derivative Instruments [Line Items] | ||
Interest rate swap, Notional amount | 29,126,000 | 41,863,000 |
Interest rate swap, Estimated fair value | 24,000 | 55,000 |
Pay variable/receive fixed swaps | ||
Derivative Instruments [Line Items] | ||
Interest rate swap, Notional amount | 29,126,000 | 41,863,000 |
Interest rate swap, Estimated fair value | $ (24,000) | $ (55,000) |
Related Party - Additional Info
Related Party - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Impairment of loans | $ 0 | $ 0 | $ 0 |
Directors Executive Officers, Shareholders and Affiliates | |||
Related Party Transaction [Line Items] | |||
Deposit from related parties | $ 11,400,000 | $ 10,800,000 |
Related Party - Schedule of Rel
Related Party - Schedule of Related Party Transactions Activity within Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Total Commitment | ||
Related Party Transaction [Line Items] | ||
Beginning of period | $ 49,409 | $ 31,076 |
New commitments/draw downs | 3,631 | 21,203 |
Repayments | (8,228) | (2,870) |
End of period | 44,812 | 49,409 |
Total Funded Commitment | ||
Related Party Transaction [Line Items] | ||
Beginning of period | 21,890 | 20,325 |
New commitments/draw downs | 1,038 | 4,320 |
Repayments | (7,483) | (2,755) |
End of period | $ 15,445 | $ 21,890 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Other real estate owned at fair value | $ 0 | $ 0 |
Loans held for sale carried at fair value | $ 0 | $ 0 |
Fair Value - Summary of Assets
Fair Value - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Total securities available-for-sale | $ 243,808 | $ 192,621 |
Obligations of States and Political Subdivisions | ||
Assets: | ||
Total securities available-for-sale | 61,926 | 52,998 |
Asset-backed securities | ||
Assets: | ||
Total securities available-for-sale | 15,284 | 16,377 |
Other debt securities | ||
Assets: | ||
Total securities available-for-sale | 11,734 | 5,407 |
Fair Value Measurements Recurring Basis | ||
Assets: | ||
Total securities available-for-sale | 243,808 | 192,621 |
Liabilities: | ||
Total derivatives | (1,330) | (1,559) |
Fair Value Measurements Recurring Basis | U.S. Government-sponsored Agencies | ||
Assets: | ||
Total securities available-for-sale | 10,706 | 11,277 |
Fair Value Measurements Recurring Basis | Obligations of States and Political Subdivisions | ||
Assets: | ||
Total securities available-for-sale | 61,926 | 52,998 |
Fair Value Measurements Recurring Basis | Mortgage-backed Securities-residential | ||
Assets: | ||
Total securities available-for-sale | 144,158 | 106,562 |
Fair Value Measurements Recurring Basis | Asset-backed securities | ||
Assets: | ||
Total securities available-for-sale | 15,284 | 16,377 |
Fair Value Measurements Recurring Basis | Other debt securities | ||
Assets: | ||
Total securities available-for-sale | 11,734 | 5,407 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total securities available-for-sale | 243,808 | 192,621 |
Liabilities: | ||
Total derivatives | (1,330) | (1,559) |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | U.S. Government-sponsored Agencies | ||
Assets: | ||
Total securities available-for-sale | 10,706 | 11,277 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Obligations of States and Political Subdivisions | ||
Assets: | ||
Total securities available-for-sale | 61,926 | 52,998 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed Securities-residential | ||
Assets: | ||
Total securities available-for-sale | 144,158 | 106,562 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Assets: | ||
Total securities available-for-sale | 15,284 | 16,377 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Other debt securities | ||
Assets: | ||
Total securities available-for-sale | 11,734 | 5,407 |
Fair Value Measurements Recurring Basis | Interest Rate Swaps - Customer Related | ||
Assets: | ||
Interest rate swaps - customer related | 494 | 184 |
Liabilities: | ||
Total derivatives | (494) | (184) |
Fair Value Measurements Recurring Basis | Interest Rate Swaps - Customer Related | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Interest rate swaps - customer related | 494 | 184 |
Liabilities: | ||
Total derivatives | (494) | (184) |
Fair Value Measurements Recurring Basis | Interest Rate Swaps - Cash Flow Hedges | ||
Liabilities: | ||
Total derivatives | (836) | (1,375) |
Fair Value Measurements Recurring Basis | Interest Rate Swaps - Cash Flow Hedges | Significant Other Observable Inputs (Level 2) | ||
Liabilities: | ||
Total derivatives | $ (836) | $ (1,375) |
Fair Value - Summary of Asset_2
Fair Value - Summary of Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - Commercial and industrial $ in Thousands | Dec. 31, 2017USD ($) |
Assets: | |
Impaired loans | $ 1,388 |
Significant Unobservable Inputs (Level 3) | |
Assets: | |
Impaired loans | $ 1,388 |
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) - Commercial and industrial - Fair Value, Measurements, Nonrecurring [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impaired loans | $ 1,388 |
Significant Unobservable Inputs (Level 3) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impaired loans | $ 1,388 |
Valuation Technique(s) | Sales comparison approach |
Unobservable Input(s) | Appraisal discounts |
Range (Weighted-Average) | 15.00% |
Fair Value - Summary of Carryin
Fair Value - Summary of Carrying Value and Fair Values of the Company's Financial Instruments (Details) - USD ($) | Dec. 31, 2018 | Oct. 01, 2018 | Dec. 31, 2017 |
Financial assets: | |||
Securities available-for-sale | $ 243,808,000 | $ 192,621,000 | |
Securities held to maturity, fair value | 3,785,000 | 3,848,000 | |
Loans held for sale | 0 | 0 | |
Loans, net of unearned income | $ 344,800,000 | ||
Carrying amount | |||
Financial assets: | |||
Restricted equity securities | 12,038,000 | 8,806,000 | |
Carrying amount | Level 1 | |||
Financial assets: | |||
Cash and due from banks, interest-bearing deposits in financial institutions | 94,681,000 | 78,078,000 | |
Federal funds sold | 10,762,000 | 4,719,000 | |
Carrying amount | Level 2 | |||
Financial assets: | |||
Securities available-for-sale | 243,808,000 | 192,621,000 | |
Securities held to maturity, fair value | 3,734,000 | 3,759,000 | |
Loans held for sale | 57,618,000 | 74,093,000 | |
Accrued interest receivable | 5,964,000 | 4,084,000 | |
Other assets | 34,489,000 | 22,663,000 | |
Financial liabilities: | |||
Federal Home Loan Bank advances | 125,000,000 | 70,000,000 | |
Carrying amount | Level 3 Fair Value Measurements | |||
Financial assets: | |||
Loans, net of unearned income | 1,429,794,000 | 947,537,000 | |
Financial liabilities: | |||
Deposits | 1,570,008,000 | 1,119,866,000 | |
Other liabilities | 2,753,000 | 3,672,000 | |
Fair value | Level 1 | |||
Financial assets: | |||
Cash and due from banks, interest-bearing deposits in financial institutions | 94,681,000 | 78,078,000 | |
Federal funds sold | 10,762,000 | 4,719,000 | |
Fair value | Level 2 | |||
Financial assets: | |||
Securities available-for-sale | 243,808,000 | 192,621,000 | |
Securities held to maturity, fair value | 3,785,000 | 3,848,000 | |
Loans held for sale | 58,596,000 | 75,549,000 | |
Accrued interest receivable | 5,964,000 | 4,084,000 | |
Other assets | 34,489,000 | 22,663,000 | |
Financial liabilities: | |||
Federal Home Loan Bank advances | 126,548,000 | 69,980,000 | |
Fair value | Level 3 Fair Value Measurements | |||
Financial assets: | |||
Loans, net of unearned income | 1,442,082,000 | 944,037,000 | |
Financial liabilities: | |||
Deposits | 1,504,101,000 | 1,065,669,000 | |
Other liabilities | $ 2,753,000 | $ 3,672,000 |
Parent Company Only Financial_3
Parent Company Only Financial Information - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Other assets | $ 51,740 | $ 32,327 | ||
Total assets | 1,963,883 | 1,344,429 | ||
Liabilities and Shareholders’ Equity | ||||
Other liabilities | 14,496 | 7,617 | ||
Total shareholders’ equity | 254,379 | 146,946 | $ 139,207 | $ 108,586 |
Total liabilities and shareholders’ equity | 1,963,883 | 1,344,429 | ||
CapStar Financial Holdings, Inc. | ||||
Assets | ||||
Cash and cash equivalents | 19,918 | 14,108 | $ 22,952 | |
Investment in consolidated subsidiary | 234,263 | 132,909 | ||
Other assets | 499 | 61 | ||
Total assets | 254,680 | 147,078 | ||
Liabilities and Shareholders’ Equity | ||||
Other liabilities | 301 | 132 | ||
Total shareholders’ equity | 254,379 | 146,946 | ||
Total liabilities and shareholders’ equity | $ 254,680 | $ 147,078 |
Parent Company Only Financial_4
Parent Company Only Financial Information - Condensed Income Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income tax benefit | $ (535) | $ 554 | $ 665 | $ 483 | $ 4,494 | $ 1,516 | $ (1,328) | $ (47) | $ 1,495 | $ 1,042 | $ 1,159 | $ 796 | $ 1,167 | $ 4,635 | $ 4,493 | |
Net income | (708) | $ 3,656 | $ 3,513 | $ 3,193 | $ 91 | $ 4,419 | $ (3,342) | $ 331 | $ 2,927 | $ 2,109 | $ 2,476 | $ 1,584 | 9,655 | 1,501 | $ 9,097 | |
CapStar Financial Holdings, Inc. | ||||||||||||||||
Income - dividends from subsidiary | 1,225 | |||||||||||||||
Expenses | 1,054 | 879 | ||||||||||||||
Income before income taxes and equity in undistributed net income of subsidiary | 171 | (879) | ||||||||||||||
Income tax benefit | (535) | $ 1,702 | (242) | (256) | ||||||||||||
Income (loss) before equity in undistributed net income of subsidiary | 413 | (623) | ||||||||||||||
Equity in undistributed net income of subsidiary | 9,242 | 2,124 | ||||||||||||||
Net income | $ (708) | $ 10,363 | $ 9,655 | $ 1,501 |
Parent Company Only Financial_5
Parent Company Only Financial Information - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||||||||||||||||
Net income | $ (708) | $ 3,656 | $ 3,513 | $ 3,193 | $ 91 | $ 4,419 | $ (3,342) | $ 331 | $ 2,927 | $ 2,109 | $ 2,476 | $ 1,584 | $ 9,655 | $ 1,501 | $ 9,097 | |
Cash flows from investing activities: | ||||||||||||||||
Cash received from acquisitions, net | 12,053 | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from issuance of common stock | 21,563 | |||||||||||||||
Exercise of common stock options and warrants, net of repurchase of restricted shares | 4,814 | 1,294 | 295 | |||||||||||||
Common and preferred stock dividends paid | (1,244) | |||||||||||||||
CapStar Financial Holdings, Inc. | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | (708) | $ 10,363 | 9,655 | 1,501 | ||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||
Increase in other assets | (221) | (62) | ||||||||||||||
Increase in other liabilities | 169 | 77 | ||||||||||||||
Equity in undistributed net income of subsidiary | (9,242) | (2,124) | ||||||||||||||
Net cash provided by (used in) operating activities | 361 | (608) | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Investments in subsidiary | (10,000) | |||||||||||||||
Cash received from acquisitions, net | 1,421 | |||||||||||||||
Net cash provided by (used in) investing activities | 1,421 | (10,000) | ||||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Exercise of common stock options and warrants, net of repurchase of restricted shares | 5,260 | 1,764 | ||||||||||||||
Common and preferred stock dividends paid | (1,232) | |||||||||||||||
Net cash provided by financing activities | 4,028 | 1,764 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 5,810 | (8,844) | ||||||||||||||
Cash and cash equivalents at beginning of period | $ 14,108 | $ 22,952 | $ 14,108 | 14,108 | 22,952 | |||||||||||
Cash and cash equivalents at end of period | $ 19,918 | $ 14,108 | $ 22,952 | $ 19,918 | $ 14,108 | $ 22,952 |
Quarterly Financial Results (_3
Quarterly Financial Results (Unaudited) - Summary of Quarterly Financial Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Interest income | $ 22,900 | $ 15,782 | $ 15,354 | $ 13,744 | $ 13,124 | $ 13,521 | $ 12,891 | $ 11,979 | $ 12,007 | $ 11,875 | $ 10,915 | $ 10,598 | $ 67,781 | $ 51,515 | $ 45,395 |
Interest expense | 5,184 | 4,239 | 3,767 | 2,898 | 2,606 | 2,678 | 2,320 | 2,047 | 1,827 | 1,749 | 1,714 | 1,642 | 16,089 | 9,652 | 6,931 |
Net interest income | 17,716 | 11,543 | 11,587 | 10,846 | 10,518 | 10,843 | 10,571 | 9,932 | 10,180 | 10,126 | 9,201 | 8,956 | 51,692 | 41,863 | 38,464 |
Provision for loan losses | 1,514 | 481 | 169 | 678 | (30) | (195) | 9,690 | 3,405 | 70 | 1,639 | 183 | 937 | 2,842 | 12,870 | 2,829 |
Net interest income after provision for loan losses | 16,202 | 11,062 | 11,418 | 10,168 | 10,548 | 11,038 | 881 | 6,527 | 10,110 | 8,487 | 9,018 | 8,019 | 48,850 | 28,993 | 35,635 |
Noninterest income | 6,387 | 3,218 | 2,765 | 3,088 | 2,736 | 3,372 | 2,666 | 2,133 | 2,954 | 3,191 | 2,568 | 2,371 | 15,459 | 10,908 | 11,084 |
Noninterest expense | 23,832 | 10,070 | 10,005 | 9,580 | 8,699 | 8,475 | 8,217 | 8,376 | 8,642 | 8,527 | 7,951 | 8,010 | 53,487 | 33,765 | 33,129 |
Income before income taxes | (1,243) | 4,210 | 4,178 | 3,676 | 4,585 | 5,935 | (4,670) | 284 | 4,422 | 3,151 | 3,635 | 2,380 | 10,822 | 6,136 | 13,590 |
Income tax expense | (535) | 554 | 665 | 483 | 4,494 | 1,516 | (1,328) | (47) | 1,495 | 1,042 | 1,159 | 796 | 1,167 | 4,635 | 4,493 |
Net income | $ (708) | $ 3,656 | $ 3,513 | $ 3,193 | $ 91 | $ 4,419 | $ (3,342) | $ 331 | $ 2,927 | $ 2,109 | $ 2,476 | $ 1,584 | $ 9,655 | $ 1,501 | $ 9,097 |
Net income (loss) per share, basic | $ (0.04) | $ 0.30 | $ 0.30 | $ 0.27 | $ 0.01 | $ 0.39 | $ (0.30) | $ 0.03 | $ 0.26 | $ 0.24 | $ 0.29 | $ 0.18 | $ 0.73 | $ 0.13 | $ 0.98 |
Net income (loss) per share, diluted | $ (0.04) | $ 0.28 | $ 0.27 | $ 0.25 | $ 0.01 | $ 0.35 | $ (0.26) | $ 0.03 | $ 0.23 | $ 0.20 | $ 0.23 | $ 0.15 | $ 0.67 | $ 0.12 | $ 0.81 |
Schedule I - Unaudited Consolid
Schedule I - Unaudited Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||||
Cash and due from banks | $ 17,967 | $ 9,506 | |||
Interest-bearing deposits in financial institutions | 76,714 | 68,572 | |||
Federal funds sold | 10,762 | 4,719 | |||
Total cash and cash equivalents | 105,443 | 82,797 | |||
Securities available-for-sale, at fair value | 243,808 | 192,621 | |||
Loans held for sale | 57,618 | 74,093 | |||
Loans, net of unearned income | 1,429,794 | 947,537 | |||
Allowance for loan losses | (12,113) | (13,721) | $ (11,634) | $ (10,132) | |
Loans, net | 1,417,681 | 933,816 | |||
Premises and equipment, net | 18,821 | 5,884 | |||
Restricted equity securities | 12,038 | 8,806 | |||
Accrued interest receivable | 5,964 | 4,084 | |||
Other real estate owned, net | 988 | 0 | 0 | 216 | |
Other assets | 51,740 | 32,327 | |||
Total assets | 1,963,883 | 1,344,429 | |||
Deposits: | |||||
Non-interest-bearing | 289,552 | 301,742 | |||
Interest-bearing | 434,921 | 274,681 | |||
Savings and money market accounts | 497,108 | 367,246 | |||
Time | 348,427 | 176,197 | |||
Total deposits | 1,570,008 | 1,119,866 | |||
Other liabilities | 14,496 | 7,617 | |||
Total liabilities | 1,709,504 | 1,197,483 | |||
Shareholders’ equity: | |||||
Preferred stock, $.01 par value; 10,000,000 shares authorized; none issued | 878 | 878 | |||
Additional paid-in capital | 211,789 | 118,120 | |||
Retained earnings | 27,303 | 18,892 | |||
Accumulated other comprehensive loss, net of income tax | (3,316) | (2,527) | |||
Total shareholders’ equity | 254,379 | 146,946 | $ 139,207 | $ 108,586 | |
Total liabilities and shareholders’ equity | $ 1,963,883 | 1,344,429 | |||
Athens Bancshares Corporation & Subsidiary | |||||
Assets | |||||
Cash and due from banks | $ 6,489 | ||||
Interest-bearing deposits in financial institutions | 4,495 | ||||
Federal funds sold | 1,069 | ||||
Total cash and cash equivalents | 12,053 | ||||
Securities available-for-sale, at fair value | 67,342 | ||||
Loans held for sale | 476 | ||||
Loans, net of unearned income | 349,121 | ||||
Allowance for loan losses | (4,039) | (3,961) | |||
Loans, net | 345,082 | ||||
Premises and equipment, net | 7,637 | ||||
Restricted equity securities | 3,220 | ||||
Accrued interest receivable | 1,410 | ||||
Core deposit intangible, net | 2,758 | ||||
Other real estate owned, net | 988 | ||||
Other assets | 23,948 | ||||
Total assets | 464,914 | ||||
Deposits: | |||||
Non-interest-bearing | 58,523 | ||||
Interest-bearing | 114,988 | ||||
Savings and money market accounts | 115,327 | ||||
Time | 115,189 | ||||
Total deposits | 404,027 | ||||
Other liabilities | 5,363 | ||||
Total liabilities | 409,390 | ||||
Shareholders’ equity: | |||||
Preferred stock, $.01 par value; 10,000,000 shares authorized; none issued | |||||
Common stock, voting, $.01 par value; 50,000,000 shares authorized; 1,809,358 shares issued and outstanding | 18 | ||||
Additional paid-in capital | 21,788 | ||||
Retained earnings | 35,273 | ||||
Accumulated other comprehensive loss, net of income tax | (1,555) | ||||
Total shareholders’ equity | 55,524 | $ 52,544 | |||
Total liabilities and shareholders’ equity | $ 464,914 |
Schedule I - Unaudited Consol_2
Schedule I - Unaudited Consolidated Balance Sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Preferred stock, par value | $ 1 | $ 1 | |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |
Preferred stock, shares issued | 878,049 | 878,049 | |
Athens Bancshares Corporation & Subsidiary | |||
Preferred stock, par value | $ 0.01 | ||
Preferred stock, shares authorized | 10,000,000 | ||
Preferred stock, shares issued | 0 | ||
Common stock, par value | $ 0.01 | ||
Common stock, shares authorized | 50,000,000 | ||
Common stock, shares issued | 1,809,358 | ||
Common stock, shares outstanding | 1,809,358 |
Schedule I - Unaudited Consol_3
Schedule I - Unaudited Consolidated Statement of Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income: | ||||||||||||||||
Loans, including fees | $ 60,751,000 | $ 45,601,000 | $ 40,213,000 | |||||||||||||
Securities: | ||||||||||||||||
Taxable | 4,184,000 | 3,696,000 | 3,448,000 | |||||||||||||
Tax-exempt | 1,201,000 | 1,230,000 | 1,158,000 | |||||||||||||
Federal funds sold | 63,000 | 41,000 | 19,000 | |||||||||||||
Restricted equity securities | 571,000 | 396,000 | 281,000 | |||||||||||||
Interest-bearing deposits in financial institutions | 1,011,000 | 551,000 | 276,000 | |||||||||||||
Interest income | $ 22,900,000 | $ 15,782,000 | $ 15,354,000 | $ 13,744,000 | $ 13,124,000 | $ 13,521,000 | $ 12,891,000 | $ 11,979,000 | $ 12,007,000 | $ 11,875,000 | $ 10,915,000 | $ 10,598,000 | 67,781,000 | 51,515,000 | 45,395,000 | |
Interest expense: | ||||||||||||||||
Interest-bearing deposits | 4,164,000 | 2,447,000 | 1,489,000 | |||||||||||||
Savings and money market accounts | 5,446,000 | 3,188,000 | 2,859,000 | |||||||||||||
Time deposits | 3,940,000 | 2,445,000 | 2,085,000 | |||||||||||||
Interest expense | 5,184,000 | 4,239,000 | 3,767,000 | 2,898,000 | 2,606,000 | 2,678,000 | 2,320,000 | 2,047,000 | 1,827,000 | 1,749,000 | 1,714,000 | 1,642,000 | 16,089,000 | 9,652,000 | 6,931,000 | |
Net interest income | 17,716,000 | 11,543,000 | 11,587,000 | 10,846,000 | 10,518,000 | 10,843,000 | 10,571,000 | 9,932,000 | 10,180,000 | 10,126,000 | 9,201,000 | 8,956,000 | 51,692,000 | 41,863,000 | 38,464,000 | |
Provision for loan losses | 2,842,000 | 12,870,000 | 2,829,000 | |||||||||||||
Net interest income after provision for loan losses | 16,202,000 | 11,062,000 | 11,418,000 | 10,168,000 | 10,548,000 | 11,038,000 | 881,000 | 6,527,000 | 10,110,000 | 8,487,000 | 9,018,000 | 8,019,000 | 48,850,000 | 28,993,000 | 35,635,000 | |
Noninterest income: | ||||||||||||||||
Noninterest income | 5,653,000 | 6,238,000 | 7,375,000 | |||||||||||||
Other noninterest income | 3,490,000 | 1,640,000 | 1,754,000 | |||||||||||||
Noninterest income | 6,387,000 | 3,218,000 | 2,765,000 | 3,088,000 | 2,736,000 | 3,372,000 | 2,666,000 | 2,133,000 | 2,954,000 | 3,191,000 | 2,568,000 | 2,371,000 | 15,459,000 | 10,908,000 | 11,084,000 | |
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 28,586,000 | 20,400,000 | 20,461,000 | |||||||||||||
Data processing and software | 3,835,000 | 2,786,000 | 2,373,000 | |||||||||||||
Professional fees | 1,608,000 | 1,522,000 | 1,554,000 | |||||||||||||
Occupancy | 2,336,000 | 2,025,000 | 1,498,000 | |||||||||||||
Equipment | 2,471,000 | 2,071,000 | 1,743,000 | |||||||||||||
Regulatory fees | 1,028,000 | 1,111,000 | 1,091,000 | |||||||||||||
Merger related expenses | 9,803,000 | |||||||||||||||
Amortization of intangibles | 465,000 | 48,000 | 54,000 | |||||||||||||
Other operating | 3,355,000 | 3,802,000 | 4,355,000 | |||||||||||||
Noninterest expense | 23,832,000 | 10,070,000 | 10,005,000 | 9,580,000 | 8,699,000 | 8,475,000 | 8,217,000 | 8,376,000 | 8,642,000 | 8,527,000 | 7,951,000 | 8,010,000 | 53,487,000 | 33,765,000 | 33,129,000 | |
Income before income taxes | (1,243,000) | 4,210,000 | 4,178,000 | 3,676,000 | 4,585,000 | 5,935,000 | (4,670,000) | 284,000 | 4,422,000 | 3,151,000 | 3,635,000 | 2,380,000 | 10,822,000 | 6,136,000 | 13,590,000 | |
Income tax expense | (535,000) | 554,000 | 665,000 | 483,000 | 4,494,000 | 1,516,000 | (1,328,000) | (47,000) | 1,495,000 | 1,042,000 | 1,159,000 | 796,000 | 1,167,000 | 4,635,000 | 4,493,000 | |
Net income | $ (708,000) | $ 3,656,000 | $ 3,513,000 | $ 3,193,000 | $ 91,000 | $ 4,419,000 | $ (3,342,000) | $ 331,000 | $ 2,927,000 | $ 2,109,000 | $ 2,476,000 | $ 1,584,000 | $ 9,655,000 | $ 1,501,000 | $ 9,097,000 | |
Per share information: | ||||||||||||||||
Basic net income per share of common stock | $ (0.04) | $ 0.30 | $ 0.30 | $ 0.27 | $ 0.01 | $ 0.39 | $ (0.30) | $ 0.03 | $ 0.26 | $ 0.24 | $ 0.29 | $ 0.18 | $ 0.73 | $ 0.13 | $ 0.98 | |
Diluted net income per share of common stock | $ (0.04) | $ 0.28 | $ 0.27 | $ 0.25 | $ 0.01 | $ 0.35 | $ (0.26) | $ 0.03 | $ 0.23 | $ 0.20 | $ 0.23 | $ 0.15 | $ 0.67 | $ 0.12 | $ 0.81 | |
Weighted average shares outstanding: | ||||||||||||||||
Basic | 13,277,614 | 11,280,580 | 9,328,236 | |||||||||||||
Diluted | 14,480,347 | 12,803,511 | 11,212,026 | |||||||||||||
Treasury Management And Other Deposit Service Charges | ||||||||||||||||
Noninterest income: | ||||||||||||||||
Noninterest income | $ 2,150,000 | $ 1,516,000 | $ 1,108,000 | |||||||||||||
Mortgage Banking Income | ||||||||||||||||
Noninterest income: | ||||||||||||||||
Noninterest income | $ 5,653,000 | $ 6,238,000 | $ 7,375,000 | |||||||||||||
Athens Bancshares Corporation & Subsidiary | ||||||||||||||||
Interest income: | ||||||||||||||||
Loans, including fees | $ 13,443,000 | |||||||||||||||
Securities: | ||||||||||||||||
Taxable | 772,000 | |||||||||||||||
Tax-exempt | 593,000 | |||||||||||||||
Federal funds sold | 135,000 | |||||||||||||||
Restricted equity securities | 339,000 | |||||||||||||||
Interest-bearing deposits in financial institutions | 183,000 | |||||||||||||||
Interest income | 15,465,000 | |||||||||||||||
Interest expense: | ||||||||||||||||
Interest-bearing deposits | 386,000 | |||||||||||||||
Savings and money market accounts | 27,000 | |||||||||||||||
Time deposits | 990,000 | |||||||||||||||
Note payable to bank | 9,000 | |||||||||||||||
Interest expense | 1,412,000 | |||||||||||||||
Net interest income | 14,053,000 | |||||||||||||||
Provision for loan losses | 146,000 | |||||||||||||||
Net interest income after provision for loan losses | 13,907,000 | |||||||||||||||
Noninterest income: | ||||||||||||||||
Noninterest income | 842,000 | |||||||||||||||
Other noninterest income | 2,207,000 | |||||||||||||||
Noninterest income | 5,233,000 | |||||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 7,065,000 | |||||||||||||||
Data processing and software | 1,138,000 | |||||||||||||||
Professional fees | 532,000 | |||||||||||||||
Occupancy | 1,112,000 | |||||||||||||||
Equipment | 568,000 | |||||||||||||||
Regulatory fees | 269,000 | |||||||||||||||
Merger related expenses | 4,731,000 | |||||||||||||||
Amortization of intangibles | 273,000 | |||||||||||||||
Other operating | 2,074,000 | |||||||||||||||
Noninterest expense | 17,762,000 | |||||||||||||||
Income before income taxes | 1,378,000 | |||||||||||||||
Income tax expense | 753,000 | |||||||||||||||
Net income | $ 625,000 | |||||||||||||||
Per share information: | ||||||||||||||||
Basic net income per share of common stock | $ 0.36 | |||||||||||||||
Diluted net income per share of common stock | $ 0.35 | |||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 1,725,105 | |||||||||||||||
Diluted | 1,802,595 | |||||||||||||||
Athens Bancshares Corporation & Subsidiary | Treasury Management And Other Deposit Service Charges | ||||||||||||||||
Noninterest income: | ||||||||||||||||
Noninterest income | $ 2,184,000 | |||||||||||||||
Athens Bancshares Corporation & Subsidiary | Mortgage Banking Income | ||||||||||||||||
Noninterest income: | ||||||||||||||||
Noninterest income | $ 842,000 |
Schedule I - Unaudited Consol_4
Schedule I - Unaudited Consolidated Statement of Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income | $ (708) | $ 3,656 | $ 3,513 | $ 3,193 | $ 91 | $ 4,419 | $ (3,342) | $ 331 | $ 2,927 | $ 2,109 | $ 2,476 | $ 1,584 | $ 9,655 | $ 1,501 | $ 9,097 | |
Unrealized gains (losses) on securities available-for-sale: | ||||||||||||||||
Unrealized holding gains (losses) arising during the period | (2,491) | 4,855 | (1,181) | |||||||||||||
Tax effect | 652 | (1,884) | 499 | |||||||||||||
Net current period other comprehensive income (loss) | (789) | 3,883 | (1,237) | |||||||||||||
Comprehensive income | $ 8,866 | $ 5,384 | $ 7,860 | |||||||||||||
Athens Bancshares Corporation & Subsidiary | ||||||||||||||||
Net income | $ 625 | |||||||||||||||
Unrealized gains (losses) on securities available-for-sale: | ||||||||||||||||
Unrealized holding gains (losses) arising during the period | (1,912) | |||||||||||||||
Tax effect | 500 | |||||||||||||||
Net current period other comprehensive income (loss) | (1,412) | |||||||||||||||
Comprehensive income | $ (787) |
Schedule I - Unaudited Consol_5
Schedule I - Unaudited Consolidated Statement of Changes in Shareholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Beginning balance | $ 146,946 | $ 139,207 | $ 108,586 | $ 146,946 | $ 146,946 | $ 139,207 | $ 108,586 | |||||||||
Stock-based compensation expense | 2,079 | 1,061 | 842 | |||||||||||||
Exercise of common stock options, net of withholdings to satisfy employee tax obligations | 3,653 | 1,011 | 96 | |||||||||||||
Common and preferred stock dividends declared ($0.04 per share) | (1,244) | |||||||||||||||
Net income | $ (708) | $ 3,656 | $ 3,513 | 3,193 | $ 91 | $ 4,419 | $ (3,342) | 331 | $ 2,927 | $ 2,109 | $ 2,476 | 1,584 | 9,655 | 1,501 | 9,097 | |
Other comprehensive income (loss) | (789) | 3,883 | (1,237) | |||||||||||||
Ending balance | 254,379 | 146,946 | 139,207 | 254,379 | 146,946 | 139,207 | ||||||||||
Common Stock, Voting | ||||||||||||||||
Beginning balance | $ 11,450 | $ 11,205 | $ 8,577 | $ 11,450 | $ 11,450 | $ 11,205 | $ 8,577 | |||||||||
Beginning balance, shares | 11,449,465 | 11,204,515 | 8,577,051 | 11,449,465 | 11,449,465 | 11,204,515 | 8,577,051 | |||||||||
Exercise of common stock options, net of withholdings to satisfy employee tax obligations | $ 667 | $ 154 | $ 8 | |||||||||||||
Exercise of common stock options, net of withholdings to satisfy employee tax obligations, shares | 666,964 | 154,050 | 8,125 | |||||||||||||
Ending balance | $ 17,592 | $ 11,450 | $ 11,205 | $ 17,592 | $ 11,450 | $ 11,205 | ||||||||||
Ending balance, shares | 17,592,160 | 11,449,465 | 11,204,515 | 17,592,160 | 11,449,465 | 11,204,515 | ||||||||||
Additional Paid-in Capital | ||||||||||||||||
Beginning balance | $ 118,120 | $ 116,143 | $ 95,278 | $ 118,120 | $ 118,120 | $ 116,143 | $ 95,278 | |||||||||
Stock-based compensation expense | 2,079 | 1,061 | 842 | |||||||||||||
Exercise of common stock options, net of withholdings to satisfy employee tax obligations | 2,986 | 857 | 88 | |||||||||||||
Ending balance | $ 211,789 | $ 118,120 | $ 116,143 | 211,789 | 118,120 | 116,143 | ||||||||||
Retained Earnings | ||||||||||||||||
Beginning balance | 18,892 | 17,132 | 8,035 | 18,892 | 18,892 | 17,132 | 8,035 | |||||||||
Common and preferred stock dividends declared ($0.04 per share) | (1,244) | |||||||||||||||
Net income | 9,655 | 1,501 | 9,097 | |||||||||||||
Ending balance | 27,303 | 18,892 | 17,132 | 27,303 | 18,892 | 17,132 | ||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||
Beginning balance | (2,527) | $ (6,151) | $ (4,914) | (2,527) | (2,527) | (6,151) | (4,914) | |||||||||
Other comprehensive income (loss) | (789) | 3,883 | (1,237) | |||||||||||||
Ending balance | (3,316) | (2,527) | $ (6,151) | (3,316) | (2,527) | $ (6,151) | ||||||||||
Athens Bancshares Corporation & Subsidiary | ||||||||||||||||
Beginning balance | 55,524 | 52,544 | 52,544 | 52,544 | ||||||||||||
Stock-based compensation expense | 83 | |||||||||||||||
Exercise of common stock options, net of withholdings to satisfy employee tax obligations | 295 | |||||||||||||||
Shares released by ESOP trust and termination of ESOP | 3,647 | |||||||||||||||
Common and preferred stock dividends declared ($0.04 per share) | (258) | |||||||||||||||
Net income | 625 | |||||||||||||||
Other comprehensive income (loss) | (1,412) | |||||||||||||||
Ending balance | 55,524 | 52,544 | 55,524 | 52,544 | ||||||||||||
Athens Bancshares Corporation & Subsidiary | Common Stock, Voting | ||||||||||||||||
Beginning balance | $ 18 | $ 18 | $ 18 | $ 18 | ||||||||||||
Beginning balance, shares | 1,809,358 | 1,806,084 | 1,806,084 | 1,806,084 | ||||||||||||
Exercise of common stock options, net of withholdings to satisfy employee tax obligations, shares | 25,663 | |||||||||||||||
Shares released by ESOP trust and termination of ESOP, Shares | (22,389) | |||||||||||||||
Ending balance | $ 18 | $ 18 | $ 18 | $ 18 | ||||||||||||
Ending balance, shares | 1,809,358 | 1,806,084 | 1,809,358 | 1,806,084 | ||||||||||||
Athens Bancshares Corporation & Subsidiary | Additional Paid-in Capital | ||||||||||||||||
Beginning balance | $ 21,788 | $ 18,800 | $ 18,800 | $ 18,800 | ||||||||||||
Stock-based compensation expense | 83 | |||||||||||||||
Exercise of common stock options, net of withholdings to satisfy employee tax obligations | 295 | |||||||||||||||
Shares released by ESOP trust and termination of ESOP | 2,610 | |||||||||||||||
Ending balance | $ 21,788 | $ 18,800 | 21,788 | $ 18,800 | ||||||||||||
Athens Bancshares Corporation & Subsidiary | Common Stock Acquired By Benefit Plans | ||||||||||||||||
Beginning balance | (1,037) | (1,037) | (1,037) | |||||||||||||
Shares released by ESOP trust and termination of ESOP | 1,037 | |||||||||||||||
Ending balance | (1,037) | (1,037) | ||||||||||||||
Athens Bancshares Corporation & Subsidiary | Retained Earnings | ||||||||||||||||
Beginning balance | 35,273 | 34,906 | 34,906 | 34,906 | ||||||||||||
Common and preferred stock dividends declared ($0.04 per share) | (258) | |||||||||||||||
Net income | 625 | |||||||||||||||
Ending balance | 35,273 | 34,906 | 35,273 | 34,906 | ||||||||||||
Athens Bancshares Corporation & Subsidiary | Accumulated Other Comprehensive Loss | ||||||||||||||||
Beginning balance | $ (1,555) | $ (143) | (143) | $ (143) | ||||||||||||
Other comprehensive income (loss) | (1,412) | |||||||||||||||
Ending balance | $ (1,555) | $ (143) | $ (1,555) | $ (143) |
Schedule I - Unaudited Consol_6
Schedule I - Unaudited Consolidated Statement of Cash Flows (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||||||||||||||||
Net income | $ (708,000) | $ 3,656,000 | $ 3,513,000 | $ 3,193,000 | $ 91,000 | $ 4,419,000 | $ (3,342,000) | $ 331,000 | $ 2,927,000 | $ 2,109,000 | $ 2,476,000 | $ 1,584,000 | $ 9,655,000 | $ 1,501,000 | $ 9,097,000 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||
Provision for loan losses | 2,842,000 | 12,870,000 | 2,829,000 | |||||||||||||
Depreciation and amortization | 1,028,000 | 450,000 | 422,000 | |||||||||||||
Net amortization of premiums on investment securities | 1,007,000 | 1,259,000 | 1,527,000 | |||||||||||||
Mortgage banking income | $ (5,653,000) | $ (6,238,000) | $ (7,375,000) | |||||||||||||
Type of Revenue [Extensible List] | us-gaap:MortgageBankingMember | us-gaap:MortgageBankingMember | us-gaap:MortgageBankingMember | |||||||||||||
Net (gain) loss on sales | $ 0 | $ 0 | $ (157,000) | |||||||||||||
Stock-based compensation | 2,079,000 | 1,061,000 | 842,000 | |||||||||||||
Deferred income tax (benefit) expense | 1,175,000 | 4,385,000 | (295,000) | |||||||||||||
Origination of loans held for sale | (516,341,000) | (565,372,000) | (522,038,000) | |||||||||||||
Proceeds from loans held for sale | 540,448,000 | 540,123,000 | 523,156,000 | |||||||||||||
Net increase in accrued interest receivable and other assets | 1,395,000 | (1,760,000) | (1,537,000) | |||||||||||||
Net decrease in accrued interest payable and other liabilities | 461,000 | (2,448,000) | 1,814,000 | |||||||||||||
Activities in securities available-for-sale: | ||||||||||||||||
Maturities, prepayments and calls | 1,560,000 | 1,656,000 | ||||||||||||||
Purchase of restricted equity securities | 12,000 | 2,774,000 | 618,000 | |||||||||||||
Net increase in loans | (139,124,000) | (20,916,000) | (126,505,000) | |||||||||||||
Purchase of premises and equipment | (4,244,000) | (1,075,000) | (814,000) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Net increase in deposits | 45,622,000 | (8,857,000) | 90,262,000 | |||||||||||||
Cash received from option exercises | 6,897,845 | 2,013,840 | 96,306 | |||||||||||||
Common and preferred stock dividends paid | (1,244,000) | |||||||||||||||
Net increase (decrease) in repurchase agreements | 221,000 | (3,755,000) | ||||||||||||||
Supplemental disclosures of cash paid: | ||||||||||||||||
Income taxes | 1,716,000 | 1,047,000 | $ 4,114,000 | |||||||||||||
Athens Bancshares Corporation & Subsidiary | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ 625,000 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||
Provision for loan losses | 146,000 | |||||||||||||||
Depreciation and amortization | 591,000 | |||||||||||||||
Net amortization of premiums on investment securities | 218,000 | |||||||||||||||
Mortgage banking income | $ (842,000) | |||||||||||||||
Type of Revenue [Extensible List] | us-gaap:MortgageBankingMember | |||||||||||||||
Net (gain) loss on sales | $ (74,000) | |||||||||||||||
Stock-based compensation | 83,000 | |||||||||||||||
Deferred income tax (benefit) expense | (630,000) | |||||||||||||||
Origination of loans held for sale | (13,333,000) | |||||||||||||||
Proceeds from loans held for sale | 13,699,000 | |||||||||||||||
Net increase in accrued interest receivable and other assets | (7,721,000) | |||||||||||||||
Net decrease in accrued interest payable and other liabilities | (1,941,000) | |||||||||||||||
Net cash provided by (used in) operating activities | (9,179,000) | |||||||||||||||
Activities in securities available-for-sale: | ||||||||||||||||
Maturities, prepayments and calls | 7,336,000 | |||||||||||||||
Purchase of restricted equity securities | 1,260,000 | |||||||||||||||
Net increase in loans | (25,999,000) | |||||||||||||||
Purchase of premises and equipment | (716,000) | |||||||||||||||
Net cash provided by (used in) investing activities | (18,119,000) | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Net increase in deposits | 1,004,000 | |||||||||||||||
Payments on note payable to bank | (1,383,000) | |||||||||||||||
Cash received from option exercises | 295,000 | |||||||||||||||
Common and preferred stock dividends paid | (258,000) | |||||||||||||||
Termination of ESOP | 3,647,000 | |||||||||||||||
Net increase (decrease) in repurchase agreements | (463,000) | |||||||||||||||
Net cash provided by financing activities | 2,842,000 | |||||||||||||||
Net decrease in cash and cash equivalents | (24,456,000) | |||||||||||||||
Cash and cash equivalents at beginning of period | $ 12,053,000 | $ 36,509,000 | 36,509,000 | $ 36,509,000 | ||||||||||||
Cash and cash equivalents at end of period | $ 12,053,000 | $ 36,509,000 | 12,053,000 | $ 36,509,000 | ||||||||||||
Supplemental disclosures of cash paid: | ||||||||||||||||
Interest paid | 1,445,000 | |||||||||||||||
Income taxes | $ 1,645,000 |
Schedule I - Loans and Allowanc
Schedule I - Loans and Allowance for Loan Losses - Summary of Loan Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans And Leases Receivable Disclosure [Line Items] | |||||
Total loans | $ 1,429,895 | $ 947,882 | |||
Less net unearned income | (101) | (345) | |||
Total loans | 1,429,794 | 947,537 | |||
Allowance for loan losses | (12,113) | (13,721) | $ (11,634) | $ (10,132) | |
Loans, net | 1,417,681 | 933,816 | |||
Commercial real estate | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Total loans | 550,446 | 350,622 | |||
Allowance for loan losses | (3,309) | (3,324) | (2,655) | (2,879) | |
Consumer real estate | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Total loans | 253,562 | 102,581 | |||
Allowance for loan losses | (1,005) | (1,063) | (1,013) | (968) | |
Construction and land development | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Total loans | 174,670 | 82,586 | |||
Allowance for loan losses | (2,431) | (1,628) | (1,574) | (914) | |
Commercial and industrial | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Total loans | 404,600 | 373,248 | |||
Allowance for loan losses | $ (5,036) | (7,209) | $ (5,618) | $ (4,693) | |
Athens Bancshares Corporation & Subsidiary | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Total loans | $ 350,304 | ||||
Less net unearned income | (1,183) | ||||
Total loans | 349,121 | ||||
Allowance for loan losses | (4,039) | (3,961) | |||
Loans, net | 345,082 | ||||
Athens Bancshares Corporation & Subsidiary | Commercial real estate | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Total loans | 117,744 | ||||
Allowance for loan losses | (1,350) | (1,333) | |||
Athens Bancshares Corporation & Subsidiary | Consumer real estate | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Total loans | 138,255 | ||||
Allowance for loan losses | (1,288) | (1,011) | |||
Athens Bancshares Corporation & Subsidiary | Construction and land development | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Total loans | 51,872 | ||||
Allowance for loan losses | (224) | (206) | |||
Athens Bancshares Corporation & Subsidiary | Commercial and industrial | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Total loans | 23,885 | ||||
Allowance for loan losses | (398) | (474) | |||
Athens Bancshares Corporation & Subsidiary | Consumer and other | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Total loans | 18,548 | ||||
Allowance for loan losses | $ (779) | $ (937) |
Schedule I - Loans and Allowa_2
Schedule I - Loans and Allowance for Loan Losses - Summary of Changes in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||||||
Beginning Balance | $ 13,721 | $ 11,634 | $ 10,132 | $ 13,721 | $ 13,721 | $ 11,634 | $ 10,132 | |||||||||
Charged-off loans | (4,954) | (12,769) | (1,452) | |||||||||||||
Recoveries | 504 | 1,986 | 125 | |||||||||||||
Provision for loan losses | $ 1,514 | $ 481 | $ 169 | 678 | $ (30) | $ (195) | $ 9,690 | 3,405 | $ 70 | $ 1,639 | $ 183 | 937 | 2,842 | 12,870 | 2,829 | |
Ending Balance | 12,113 | 13,721 | 11,634 | 12,113 | 13,721 | 11,634 | ||||||||||
Commercial real estate | ||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||||||
Beginning Balance | 3,324 | 2,655 | 2,879 | 3,324 | 3,324 | 2,655 | 2,879 | |||||||||
Charged-off loans | (350) | |||||||||||||||
Recoveries | 22 | 9 | 52 | |||||||||||||
Provision for loan losses | (37) | 660 | 74 | |||||||||||||
Ending Balance | 3,309 | 3,324 | 2,655 | 3,309 | 3,324 | 2,655 | ||||||||||
Consumer real estate | ||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||||||
Beginning Balance | 1,063 | 1,013 | 968 | 1,063 | 1,063 | 1,013 | 968 | |||||||||
Recoveries | 4 | |||||||||||||||
Provision for loan losses | (62) | 50 | 45 | |||||||||||||
Ending Balance | 1,005 | 1,063 | 1,013 | 1,005 | 1,063 | 1,013 | ||||||||||
Construction and land development | ||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||||||
Beginning Balance | 1,628 | 1,574 | 914 | 1,628 | 1,628 | 1,574 | 914 | |||||||||
Provision for loan losses | 803 | 54 | 660 | |||||||||||||
Ending Balance | 2,431 | 1,628 | 1,574 | 2,431 | 1,628 | 1,574 | ||||||||||
Commercial and industrial | ||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||||||
Beginning Balance | 7,209 | $ 5,618 | $ 4,693 | 7,209 | 7,209 | 5,618 | 4,693 | |||||||||
Charged-off loans | (4,831) | (12,769) | (956) | |||||||||||||
Recoveries | 395 | 1,865 | 23 | |||||||||||||
Provision for loan losses | 2,263 | 12,495 | 1,858 | |||||||||||||
Ending Balance | 5,036 | 7,209 | $ 5,618 | 5,036 | 7,209 | $ 5,618 | ||||||||||
Athens Bancshares Corporation & Subsidiary | ||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||||||
Beginning Balance | 4,039 | 3,961 | 3,961 | 3,961 | ||||||||||||
Charged-off loans | (181) | |||||||||||||||
Recoveries | 113 | |||||||||||||||
Provision for loan losses | 146 | |||||||||||||||
Ending Balance | 4,039 | 3,961 | 4,039 | 3,961 | ||||||||||||
Athens Bancshares Corporation & Subsidiary | Commercial real estate | ||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||||||
Beginning Balance | 1,350 | 1,333 | 1,333 | 1,333 | ||||||||||||
Recoveries | 20 | |||||||||||||||
Provision for loan losses | (3) | |||||||||||||||
Ending Balance | 1,350 | 1,333 | 1,350 | 1,333 | ||||||||||||
Athens Bancshares Corporation & Subsidiary | Consumer real estate | ||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||||||
Beginning Balance | 1,288 | 1,011 | 1,011 | 1,011 | ||||||||||||
Recoveries | 17 | |||||||||||||||
Provision for loan losses | 260 | |||||||||||||||
Ending Balance | 1,288 | 1,011 | 1,288 | 1,011 | ||||||||||||
Athens Bancshares Corporation & Subsidiary | Construction and land development | ||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||||||
Beginning Balance | 224 | 206 | 206 | 206 | ||||||||||||
Recoveries | 1 | |||||||||||||||
Provision for loan losses | 17 | |||||||||||||||
Ending Balance | 224 | 206 | 224 | 206 | ||||||||||||
Athens Bancshares Corporation & Subsidiary | Commercial and industrial | ||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||||||
Beginning Balance | 398 | 474 | 474 | 474 | ||||||||||||
Provision for loan losses | (76) | |||||||||||||||
Ending Balance | 398 | 474 | 398 | 474 | ||||||||||||
Athens Bancshares Corporation & Subsidiary | Consumer and other | ||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||||||
Beginning Balance | $ 779 | $ 937 | 937 | $ 937 | ||||||||||||
Charged-off loans | (181) | |||||||||||||||
Recoveries | 75 | |||||||||||||||
Provision for loan losses | (52) | |||||||||||||||
Ending Balance | $ 779 | $ 937 | $ 779 | $ 937 |
Schedule I - Loans and Allowa_3
Schedule I - Loans and Allowance for Loan Losses - Summary of Breakdown of Allowance for Loan Losses and Loan Portfolio by Loan Category (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Allowance for Loan Losses: | |||||
Collectively evaluated for impairment | $ 12,113 | $ 13,621 | |||
Individually evaluated for impairment | 100 | ||||
Allowance for Loan Losses, Ending Balance | 12,113 | 13,721 | $ 11,634 | $ 10,132 | |
Loans: | |||||
Collectively evaluated for impairment | 1,425,997 | 945,187 | |||
Individually evaluated for impairment | 3,898 | 2,695 | |||
Total | 1,429,895 | 947,882 | |||
Commercial real estate | |||||
Allowance for Loan Losses: | |||||
Collectively evaluated for impairment | 3,309 | 3,324 | |||
Allowance for Loan Losses, Ending Balance | 3,309 | 3,324 | 2,655 | 2,879 | |
Loans: | |||||
Collectively evaluated for impairment | 549,055 | 349,415 | |||
Individually evaluated for impairment | 1,391 | 1,207 | |||
Total | 550,446 | 350,622 | |||
Consumer real estate | |||||
Allowance for Loan Losses: | |||||
Collectively evaluated for impairment | 1,005 | 1,063 | |||
Allowance for Loan Losses, Ending Balance | 1,005 | 1,063 | 1,013 | 968 | |
Loans: | |||||
Collectively evaluated for impairment | 252,640 | 102,581 | |||
Individually evaluated for impairment | 922 | ||||
Total | 253,562 | 102,581 | |||
Construction and land development | |||||
Allowance for Loan Losses: | |||||
Collectively evaluated for impairment | 2,431 | 1,628 | |||
Allowance for Loan Losses, Ending Balance | 2,431 | 1,628 | 1,574 | 914 | |
Loans: | |||||
Collectively evaluated for impairment | 174,662 | 82,586 | |||
Individually evaluated for impairment | 8 | ||||
Total | 174,670 | 82,586 | |||
Commercial and industrial | |||||
Allowance for Loan Losses: | |||||
Collectively evaluated for impairment | 5,036 | 7,109 | |||
Individually evaluated for impairment | 100 | ||||
Allowance for Loan Losses, Ending Balance | 5,036 | 7,209 | $ 5,618 | $ 4,693 | |
Loans: | |||||
Collectively evaluated for impairment | 403,054 | 371,760 | |||
Individually evaluated for impairment | 1,546 | 1,488 | |||
Total | $ 404,600 | 373,248 | |||
Athens Bancshares Corporation & Subsidiary | |||||
Allowance for Loan Losses: | |||||
Collectively evaluated for impairment | $ 3,929 | ||||
Individually evaluated for impairment | 110 | ||||
Allowance for Loan Losses, Ending Balance | 4,039 | 3,961 | |||
Loans: | |||||
Collectively evaluated for impairment | 347,245 | ||||
Individually evaluated for impairment | 3,059 | ||||
Total | 350,304 | ||||
Athens Bancshares Corporation & Subsidiary | Commercial real estate | |||||
Allowance for Loan Losses: | |||||
Collectively evaluated for impairment | 1,284 | ||||
Individually evaluated for impairment | 66 | ||||
Allowance for Loan Losses, Ending Balance | 1,350 | 1,333 | |||
Loans: | |||||
Collectively evaluated for impairment | 117,562 | ||||
Individually evaluated for impairment | 182 | ||||
Total | 117,744 | ||||
Athens Bancshares Corporation & Subsidiary | Consumer real estate | |||||
Allowance for Loan Losses: | |||||
Collectively evaluated for impairment | 1,288 | ||||
Allowance for Loan Losses, Ending Balance | 1,288 | 1,011 | |||
Loans: | |||||
Collectively evaluated for impairment | 136,983 | ||||
Individually evaluated for impairment | 1,272 | ||||
Total | 138,255 | ||||
Athens Bancshares Corporation & Subsidiary | Construction and land development | |||||
Allowance for Loan Losses: | |||||
Collectively evaluated for impairment | 224 | ||||
Allowance for Loan Losses, Ending Balance | 224 | 206 | |||
Loans: | |||||
Collectively evaluated for impairment | 51,850 | ||||
Individually evaluated for impairment | 22 | ||||
Total | 51,872 | ||||
Athens Bancshares Corporation & Subsidiary | Commercial and industrial | |||||
Allowance for Loan Losses: | |||||
Collectively evaluated for impairment | 356 | ||||
Individually evaluated for impairment | 42 | ||||
Allowance for Loan Losses, Ending Balance | 398 | 474 | |||
Loans: | |||||
Collectively evaluated for impairment | 22,370 | ||||
Individually evaluated for impairment | 1,515 | ||||
Total | 23,885 | ||||
Athens Bancshares Corporation & Subsidiary | Consumer and other | |||||
Allowance for Loan Losses: | |||||
Collectively evaluated for impairment | 777 | ||||
Individually evaluated for impairment | 2 | ||||
Allowance for Loan Losses, Ending Balance | 779 | $ 937 | |||
Loans: | |||||
Collectively evaluated for impairment | 18,480 | ||||
Individually evaluated for impairment | 68 | ||||
Total | $ 18,548 |
Schedule I - Loans and Allowa_4
Schedule I - Loans and Allowance for Loan Losses - Summary of Impaired Loans Evaluated for Specific Loss Allowance (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Recorded investment | $ 3,898 | $ 1,207 | |
Impaired loans with no related allowance recorded, Unpaid principal balance | 9,403 | 1,645 | |
Impaired loans with an allowance recorded, Related allowance | 100 | ||
Impaired loans with an allowance recorded, Recorded investment | 1,488 | ||
Impaired loans with an allowance recorded, Unpaid principal balance | 2,770 | ||
Recorded investment | 3,898 | 2,695 | |
Unpaid principal balance | 9,403 | 4,415 | |
Commercial real estate | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Recorded investment | 1,391 | 1,207 | |
Impaired loans with no related allowance recorded, Unpaid principal balance | 1,775 | 1,645 | |
Consumer real estate | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Recorded investment | 922 | ||
Impaired loans with no related allowance recorded, Unpaid principal balance | 1,204 | ||
Construction and land development | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Recorded investment | 8 | ||
Impaired loans with no related allowance recorded, Unpaid principal balance | 18 | ||
Commercial and industrial | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Recorded investment | 1,546 | ||
Impaired loans with no related allowance recorded, Unpaid principal balance | 6,350 | ||
Impaired loans with an allowance recorded, Related allowance | 100 | ||
Impaired loans with an allowance recorded, Recorded investment | 1,488 | ||
Impaired loans with an allowance recorded, Unpaid principal balance | $ 2,770 | ||
Consumer | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Recorded investment | 31 | ||
Impaired loans with no related allowance recorded, Unpaid principal balance | $ 56 | ||
Athens Bancshares Corporation & Subsidiary | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Recorded investment | $ 1,294 | ||
Impaired loans with no related allowance recorded, Unpaid principal balance | 1,294 | ||
Impaired loans with an allowance recorded, Related allowance | 110 | ||
Impaired loans with an allowance recorded, Recorded investment | 1,765 | ||
Impaired loans with an allowance recorded, Unpaid principal balance | 1,765 | ||
Recorded investment | 3,059 | ||
Unpaid principal balance | 3,059 | ||
Athens Bancshares Corporation & Subsidiary | Commercial real estate | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with an allowance recorded, Related allowance | 66 | ||
Impaired loans with an allowance recorded, Recorded investment | 182 | ||
Impaired loans with an allowance recorded, Unpaid principal balance | 182 | ||
Athens Bancshares Corporation & Subsidiary | Consumer real estate | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Recorded investment | 1,272 | ||
Impaired loans with no related allowance recorded, Unpaid principal balance | 1,272 | ||
Athens Bancshares Corporation & Subsidiary | Construction and land development | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Recorded investment | 22 | ||
Impaired loans with no related allowance recorded, Unpaid principal balance | 22 | ||
Athens Bancshares Corporation & Subsidiary | Commercial and industrial | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with an allowance recorded, Related allowance | 42 | ||
Impaired loans with an allowance recorded, Recorded investment | 1,515 | ||
Impaired loans with an allowance recorded, Unpaid principal balance | 1,515 | ||
Athens Bancshares Corporation & Subsidiary | Consumer | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with an allowance recorded, Related allowance | 2 | ||
Impaired loans with an allowance recorded, Recorded investment | 68 | ||
Impaired loans with an allowance recorded, Unpaid principal balance | $ 68 |
Schedule I - Loans and Allowa_5
Schedule I - Loans and Allowance for Loan Losses - Schedule of Non-Accrual Loans, Past Due Loans over 89 Days Outstanding and Accruing and Troubled Debt Restructurings (TDR) by Class of Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Non-Accrual | $ 2,078 | $ 2,695 | |
Troubled Debt Restructurings | 1,391 | 1,206 | |
Commercial real estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Non-Accrual | 1,207 | ||
Troubled Debt Restructurings | 1,391 | 1,206 | |
Consumer real estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Non-Accrual | 1,187 | ||
Construction and Land Development | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Non-Accrual | 19 | ||
Commercial and industrial | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Non-Accrual | $ 817 | $ 1,488 | |
Athens Bancshares Corporation & Subsidiary | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Non-Accrual | $ 1,072 | ||
Troubled Debt Restructurings | 2,495 | ||
Athens Bancshares Corporation & Subsidiary | Commercial real estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Troubled Debt Restructurings | 182 | ||
Athens Bancshares Corporation & Subsidiary | Consumer real estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Non-Accrual | 987 | ||
Troubled Debt Restructurings | 783 | ||
Athens Bancshares Corporation & Subsidiary | Construction and Land Development | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Non-Accrual | 21 | ||
Athens Bancshares Corporation & Subsidiary | Commercial and industrial | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Troubled Debt Restructurings | 1,510 | ||
Athens Bancshares Corporation & Subsidiary | Consumer and other | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Non-Accrual | 64 | ||
Troubled Debt Restructurings | $ 20 |
Schedule I - Stock Options - Su
Schedule I - Stock Options - Summary of Company Recognized Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense before income taxes | $ 2,079 | $ 1,061 | $ 842 | |
Less: deferred tax benefit | (543) | (406) | (322) | |
Reduction of net income | $ 1,536 | $ 655 | $ 520 | |
Athens Bancshares Corporation & Subsidiary | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense before income taxes | $ 83 | |||
Less: deferred tax benefit | (22) | |||
Reduction of net income | $ 61 |
Schedule I - Stock Options - _2
Schedule I - Stock Options - Summary of Activity in Stock Options (Details) - $ / shares | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares, Abstract | |||
Shares Outstanding, Beginning Balance | 756,050 | 756,050 | |
Shares Outstanding, Granted | 0 | 0 | |
Shares Outstanding, Exercised | (796,198) | ||
Shares Outstanding, Ending Balance | 507,903 | 756,050 | |
Shares, Fully Vested and Expected to Vest | 506,783 | ||
Shares, Exercisable at End of Period | 480,403 | ||
Weighted Average Exercise Price, Abstract | |||
Weighted Average Exercise Price Outstanding, Beginning Balance | $ 10.50 | $ 10.50 | |
Weighted Average Exercise Price Outstanding, Granted | |||
Weighted Average Exercise Price Outstanding, Exercised | 8.16 | ||
Weighted Average Exercise Price Outstanding, Forfeited or expired | |||
Weighted Average Exercise Price Outstanding, Ending Balance | 8.66 | $ 10.50 | |
Weighted Average Exercise Price, Fully vested and expected to vest | 8.66 | ||
Weighted Average Exercise Price, Exercisable at End of Period | $ 8.46 | ||
Weighted Average Remaining Contractual Term (year), Abstract | |||
Weighted Average Remaining Contractual Term Outstanding | 4 years | ||
Weighted Average Remaining Contractual Term, Fully Vested and Expected to Vest | 4 years 1 month 6 days | ||
Weighted Average Remaining Contractual Term, Exercisable at End of Period | 4 years | ||
Athens Bancshares Corporation & Subsidiary | |||
Shares, Abstract | |||
Shares Outstanding, Beginning Balance | 217,024 | 217,024 | |
Shares Outstanding, Exercised | (25,663) | ||
Shares Outstanding, Ending Balance | 191,361 | 217,024 | |
Shares, Fully Vested and Expected to Vest | 191,361 | ||
Shares, Exercisable at End of Period | 191,361 | ||
Weighted Average Exercise Price, Abstract | |||
Weighted Average Exercise Price Outstanding, Beginning Balance | $ 14.12 | $ 14.12 | |
Weighted Average Exercise Price Outstanding, Exercised | 11.50 | ||
Weighted Average Exercise Price Outstanding, Ending Balance | 14.48 | $ 14.12 | |
Weighted Average Exercise Price, Fully vested and expected to vest | 14.48 | ||
Weighted Average Exercise Price, Exercisable at End of Period | $ 14.48 | ||
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 | 3 years 1 month 6 days |
Schedule I - Stock Options - In
Schedule I - Stock Options - Information Related to Stock Options (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Intrinsic value of options exercised | $ 7,654,738 | $ 2,010,536 | $ 53,756 | |
Cash received from option exercises | 6,897,845 | 2,013,840 | 96,306 | |
Tax benefit realized from option exercises | $ 846,725 | $ 774,056 | $ 20,583 | |
Weighted average fair value of options granted | $ 3.16 | |||
Athens Bancshares Corporation & Subsidiary | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Intrinsic value of options exercised | $ 1,038,000 | |||
Cash received from option exercises | 295,000 | |||
Tax benefit realized from option exercises | $ 189,000 |
Schedule I - Earnings Per Share
Schedule I - Earnings Per Share - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basic net income per share calculation: | ||||||||||||||||
Numerator – Net income | $ 9,655 | $ 1,501 | $ 9,097 | |||||||||||||
Denominator – Average common shares outstanding | 13,277,614 | 11,280,580 | 9,328,236 | |||||||||||||
Basic net income per share of common stock | $ (0.04) | $ 0.30 | $ 0.30 | $ 0.27 | $ 0.01 | $ 0.39 | $ (0.30) | $ 0.03 | $ 0.26 | $ 0.24 | $ 0.29 | $ 0.18 | $ 0.73 | $ 0.13 | $ 0.98 | |
Diluted net income per share calculation: | ||||||||||||||||
Numerator – Net income | $ 9,655 | $ 1,501 | $ 9,097 | |||||||||||||
Dilutive shares contingently issuable | 1,202,733 | 1,522,931 | 1,883,790 | |||||||||||||
Average diluted common shares outstanding | 14,480,347 | 12,803,511 | 11,212,026 | |||||||||||||
Diluted net income per share of common stock | $ (0.04) | $ 0.28 | $ 0.27 | $ 0.25 | $ 0.01 | $ 0.35 | $ (0.26) | $ 0.03 | $ 0.23 | $ 0.20 | $ 0.23 | $ 0.15 | $ 0.67 | $ 0.12 | $ 0.81 | |
Athens Bancshares Corporation & Subsidiary | ||||||||||||||||
Basic net income per share calculation: | ||||||||||||||||
Numerator – Net income | $ 625 | |||||||||||||||
Denominator – Average common shares outstanding | 1,725,105 | |||||||||||||||
Basic net income per share of common stock | $ 0.36 | |||||||||||||||
Diluted net income per share calculation: | ||||||||||||||||
Numerator – Net income | $ 625 | |||||||||||||||
Dilutive shares contingently issuable | 77,490 | |||||||||||||||
Average diluted common shares outstanding | 1,802,595 | |||||||||||||||
Diluted net income per share of common stock | $ 0.35 |
Schedule I - Employee Stock Own
Schedule I - Employee Stock Ownership Plan - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2018 | |
Restructuring Cost And Reserve [Line Items] | ||
Vesting period | 3 years | |
Athens Bancshares Corporation & Subsidiary | ||
Restructuring Cost And Reserve [Line Items] | ||
Purchase of share under ESOP | 222,180 | |
Loan repayment period | 15 years | |
Loan interest rate | 3.25% | |
Vesting period | 4 years | |
Recognized compensation expense | $ 3.6 |
Schedule I - Subsequent Events
Schedule I - Subsequent Events - Additional Information (Details) $ / shares in Units, $ in Millions | Oct. 02, 2018USD ($)$ / sharesshares | Dec. 31, 2018shares | Sep. 30, 2018$ / shares |
Subsequent Event [Line Items] | |||
Converted options right to purchase shares of CapStar Common Stock, shares | shares | 0 | ||
Athens Bancshares Corporation & Subsidiary | |||
Subsequent Event [Line Items] | |||
Common stock, par value | $ / shares | $ 0.01 | ||
Purchase price consideration | $ | $ 92.9 | ||
Athens Bancshares Corporation & Subsidiary | Athens Bancshares | |||
Subsequent Event [Line Items] | |||
Common stock, par value | $ / shares | $ 0.01 | ||
Athens Bancshares Corporation & Subsidiary | CapStar Financial Holdings, Inc. | |||
Subsequent Event [Line Items] | |||
Conversion of debt exchange ratio | 2.864 | ||
Issuance of common stock, shares | shares | 5,181,916 | ||
Converted options right to purchase shares of CapStar Common Stock, shares | shares | 548,051 | ||
Converted options right to purchase shares of CapStar Common Stock, per share | $ / shares | $ 5.06 |
Schedule II - Unaudited Pro F_2
Schedule II - Unaudited Pro Forma Combined Consolidated Statement of Income (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income: | ||||||||||||||||
Loans, including fees | $ 60,751 | $ 45,601 | $ 40,213 | |||||||||||||
Securities: | ||||||||||||||||
Taxable | 4,184 | 3,696 | 3,448 | |||||||||||||
Tax-exempt | 1,201 | 1,230 | 1,158 | |||||||||||||
Federal funds sold | 63 | 41 | 19 | |||||||||||||
Restricted equity securities | 571 | 396 | 281 | |||||||||||||
Interest-bearing deposits in financial institutions | 1,011 | 551 | 276 | |||||||||||||
Total interest income | $ 22,900 | $ 15,782 | $ 15,354 | $ 13,744 | $ 13,124 | $ 13,521 | $ 12,891 | $ 11,979 | $ 12,007 | $ 11,875 | $ 10,915 | $ 10,598 | 67,781 | 51,515 | 45,395 | |
Interest expense: | ||||||||||||||||
Time deposits | 3,940 | 2,445 | 2,085 | |||||||||||||
Federal funds purchased | 3 | 13 | 22 | |||||||||||||
Securities sold under agreements to repurchase | 3 | 1 | ||||||||||||||
Federal Home Loan Bank advances | 2,533 | 1,559 | 475 | |||||||||||||
Total interest expense | 5,184 | 4,239 | 3,767 | 2,898 | 2,606 | 2,678 | 2,320 | 2,047 | 1,827 | 1,749 | 1,714 | 1,642 | 16,089 | 9,652 | 6,931 | |
Net interest income | 17,716 | 11,543 | 11,587 | 10,846 | 10,518 | 10,843 | 10,571 | 9,932 | 10,180 | 10,126 | 9,201 | 8,956 | 51,692 | 41,863 | 38,464 | |
Provision for loan losses | 2,842 | 12,870 | 2,829 | |||||||||||||
Net interest income after provision for loan losses | 16,202 | 11,062 | 11,418 | 10,168 | 10,548 | 11,038 | 881 | 6,527 | 10,110 | 8,487 | 9,018 | 8,019 | 48,850 | 28,993 | 35,635 | |
Noninterest income: | ||||||||||||||||
Noninterest income | 5,653 | 6,238 | 7,375 | |||||||||||||
Net gain (loss) on sale of securities | 3 | (66) | 121 | |||||||||||||
Tri-Net fees | 1,503 | 1,002 | 125 | |||||||||||||
Other noninterest income | 3,490 | 1,640 | 1,754 | |||||||||||||
Total noninterest income | 6,387 | 3,218 | 2,765 | 3,088 | 2,736 | 3,372 | 2,666 | 2,133 | 2,954 | 3,191 | 2,568 | 2,371 | 15,459 | 10,908 | 11,084 | |
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 28,586 | 20,400 | 20,461 | |||||||||||||
Data processing and software | 3,835 | 2,786 | 2,373 | |||||||||||||
Professional fees | 1,608 | 1,522 | 1,554 | |||||||||||||
Occupancy | 2,336 | 2,025 | 1,498 | |||||||||||||
Equipment | 2,471 | 2,071 | 1,743 | |||||||||||||
Regulatory fees | 1,028 | 1,111 | 1,091 | |||||||||||||
Merger related expenses | 9,803 | |||||||||||||||
Other operating | 3,355 | 3,802 | 4,355 | |||||||||||||
Total noninterest expense | 23,832 | 10,070 | 10,005 | 9,580 | 8,699 | 8,475 | 8,217 | 8,376 | 8,642 | 8,527 | 7,951 | 8,010 | 53,487 | 33,765 | 33,129 | |
Income before income taxes | (1,243) | 4,210 | 4,178 | 3,676 | 4,585 | 5,935 | (4,670) | 284 | 4,422 | 3,151 | 3,635 | 2,380 | 10,822 | 6,136 | 13,590 | |
Income tax expense | (535) | 554 | 665 | 483 | 4,494 | 1,516 | (1,328) | (47) | 1,495 | 1,042 | 1,159 | 796 | 1,167 | 4,635 | 4,493 | |
Net income | $ (708) | $ 3,656 | $ 3,513 | $ 3,193 | $ 91 | $ 4,419 | $ (3,342) | $ 331 | $ 2,927 | $ 2,109 | $ 2,476 | $ 1,584 | $ 9,655 | $ 1,501 | $ 9,097 | |
Per share information: | ||||||||||||||||
Basic net income per share of common stock | $ (0.04) | $ 0.30 | $ 0.30 | $ 0.27 | $ 0.01 | $ 0.39 | $ (0.30) | $ 0.03 | $ 0.26 | $ 0.24 | $ 0.29 | $ 0.18 | $ 0.73 | $ 0.13 | $ 0.98 | |
Diluted net income per share of common stock | $ (0.04) | $ 0.28 | $ 0.27 | $ 0.25 | $ 0.01 | $ 0.35 | $ (0.26) | $ 0.03 | $ 0.23 | $ 0.20 | $ 0.23 | $ 0.15 | $ 0.67 | $ 0.12 | $ 0.81 | |
Weighted average shares outstanding: | ||||||||||||||||
Basic | 13,277,614 | 11,280,580 | 9,328,236 | |||||||||||||
Diluted | 14,480,347 | 12,803,511 | 11,212,026 | |||||||||||||
Pro Forma | ||||||||||||||||
Interest income: | ||||||||||||||||
Loans, including fees | $ 75,197 | |||||||||||||||
Securities: | ||||||||||||||||
Taxable | 4,958 | |||||||||||||||
Tax-exempt | 1,793 | |||||||||||||||
Federal funds sold | 199 | |||||||||||||||
Restricted equity securities | 909 | |||||||||||||||
Interest-bearing deposits in financial institutions | 1,192 | |||||||||||||||
Total interest income | 84,248 | |||||||||||||||
Interest expense: | ||||||||||||||||
Time deposits | 14,775 | |||||||||||||||
Federal funds purchased | 3 | |||||||||||||||
Securities sold under agreements to repurchase | 3 | |||||||||||||||
Federal Home Loan Bank advances | 2,532 | |||||||||||||||
Total interest expense | 17,313 | |||||||||||||||
Net interest income | 66,935 | |||||||||||||||
Provision for loan losses | 2,988 | |||||||||||||||
Net interest income after provision for loan losses | 63,947 | |||||||||||||||
Noninterest income: | ||||||||||||||||
Net gain (loss) on sale of securities | 3 | |||||||||||||||
Tri-Net fees | 1,503 | |||||||||||||||
Other noninterest income | 8,357 | |||||||||||||||
Total noninterest income | 20,692 | |||||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 35,651 | |||||||||||||||
Data processing and software | 4,973 | |||||||||||||||
Professional fees | 2,140 | |||||||||||||||
Occupancy | 3,448 | |||||||||||||||
Equipment | 3,039 | |||||||||||||||
Regulatory fees | 1,297 | |||||||||||||||
Other operating | 7,151 | |||||||||||||||
Total noninterest expense | 57,699 | |||||||||||||||
Income before income taxes | 26,940 | |||||||||||||||
Income tax expense | 5,773 | |||||||||||||||
Net income | $ 21,167 | |||||||||||||||
Per share information: | ||||||||||||||||
Basic net income per share of common stock | $ 1.24 | |||||||||||||||
Diluted net income per share of common stock | $ 1.14 | |||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 17,033,392 | |||||||||||||||
Diluted | 18,616,669 | |||||||||||||||
Pro Forma Adjustments | ||||||||||||||||
Interest income: | ||||||||||||||||
Loans, including fees | $ 1,003 | |||||||||||||||
Securities: | ||||||||||||||||
Total interest income | 1,003 | |||||||||||||||
Interest expense: | ||||||||||||||||
Time deposits | (178) | |||||||||||||||
Note payable to bank | (9) | |||||||||||||||
Total interest expense | (187) | |||||||||||||||
Net interest income | 1,190 | |||||||||||||||
Net interest income after provision for loan losses | 1,190 | |||||||||||||||
Noninterest expense: | ||||||||||||||||
Merger related expenses | (14,535) | |||||||||||||||
Other operating | 985 | |||||||||||||||
Total noninterest expense | (13,550) | |||||||||||||||
Income before income taxes | 14,740 | |||||||||||||||
Income tax expense | 3,853 | |||||||||||||||
Net income | $ 10,887 | |||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 3,456,811 | |||||||||||||||
Diluted | 3,761,316 | |||||||||||||||
Athens Bancshares Corporation | ||||||||||||||||
Interest income: | ||||||||||||||||
Loans, including fees | $ 13,443 | |||||||||||||||
Securities: | ||||||||||||||||
Taxable | 772 | |||||||||||||||
Tax-exempt | 593 | |||||||||||||||
Federal funds sold | 135 | |||||||||||||||
Restricted equity securities | 339 | |||||||||||||||
Interest-bearing deposits in financial institutions | 183 | |||||||||||||||
Total interest income | 15,465 | |||||||||||||||
Interest expense: | ||||||||||||||||
Time deposits | 1,403 | |||||||||||||||
Note payable to bank | 9 | |||||||||||||||
Total interest expense | 1,412 | |||||||||||||||
Net interest income | 14,053 | $ 66,935 | $ 59,148 | |||||||||||||
Provision for loan losses | 146 | |||||||||||||||
Net interest income after provision for loan losses | 13,907 | |||||||||||||||
Noninterest income: | ||||||||||||||||
Other noninterest income | 2,207 | |||||||||||||||
Total noninterest income | 5,233 | 20,692 | 17,540 | |||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 7,065 | |||||||||||||||
Data processing and software | 1,138 | |||||||||||||||
Professional fees | 532 | |||||||||||||||
Occupancy | 1,112 | |||||||||||||||
Equipment | 568 | |||||||||||||||
Regulatory fees | 269 | |||||||||||||||
Merger related expenses | 4,731 | |||||||||||||||
Other operating | 2,347 | |||||||||||||||
Total noninterest expense | 17,762 | |||||||||||||||
Income before income taxes | 1,378 | |||||||||||||||
Income tax expense | 753 | |||||||||||||||
Net income | $ 625 | $ 21,167 | $ 5,851 | |||||||||||||
Per share information: | ||||||||||||||||
Basic net income per share of common stock | $ 0.36 | $ 1.24 | $ 0.36 | |||||||||||||
Diluted net income per share of common stock | $ 0.35 | $ 1.14 | $ 0.32 | |||||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 1,725,105 | 5,181,916 | ||||||||||||||
Diluted | 1,802,595 | 5,563,911 | ||||||||||||||
Athens Bancshares Corporation | Pro Forma Adjustments | ||||||||||||||||
Noninterest expense: | ||||||||||||||||
Income tax expense | $ 3,853 | |||||||||||||||
CapStar Financial Holdings, Inc. | ||||||||||||||||
Interest income: | ||||||||||||||||
Loans, including fees | 20,554 | $ 40,197 | ||||||||||||||
Securities: | ||||||||||||||||
Taxable | 1,411 | 2,775 | ||||||||||||||
Tax-exempt | 416 | 784 | ||||||||||||||
Federal funds sold | 8 | 56 | ||||||||||||||
Restricted equity securities | 181 | 389 | ||||||||||||||
Interest-bearing deposits in financial institutions | 330 | 679 | ||||||||||||||
Total interest income | 22,900 | 44,880 | ||||||||||||||
Interest expense: | ||||||||||||||||
Time deposits | 4,462 | 9,088 | ||||||||||||||
Federal funds purchased | 3 | |||||||||||||||
Securities sold under agreements to repurchase | 3 | |||||||||||||||
Federal Home Loan Bank advances | 719 | 1,813 | ||||||||||||||
Total interest expense | 5,184 | 10,904 | ||||||||||||||
Net interest income | 17,716 | 33,976 | ||||||||||||||
Provision for loan losses | 1,514 | 1,328 | ||||||||||||||
Net interest income after provision for loan losses | 16,202 | 32,648 | ||||||||||||||
Noninterest income: | ||||||||||||||||
Net gain (loss) on sale of securities | 1 | 2 | ||||||||||||||
Tri-Net fees | 276 | 1,227 | ||||||||||||||
Other noninterest income | 3,993 | 2,157 | ||||||||||||||
Total noninterest income | 6,387 | 9,072 | ||||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 9,475 | 19,111 | ||||||||||||||
Data processing and software | 1,424 | 2,411 | ||||||||||||||
Professional fees | 534 | 1,074 | ||||||||||||||
Occupancy | 736 | 1,600 | ||||||||||||||
Equipment | 810 | 1,661 | ||||||||||||||
Regulatory fees | 364 | 664 | ||||||||||||||
Merger related expenses | 8,929 | 875 | ||||||||||||||
Other operating | 1,560 | 2,259 | ||||||||||||||
Total noninterest expense | 23,832 | 29,655 | ||||||||||||||
Income before income taxes | (1,243) | 12,065 | ||||||||||||||
Income tax expense | (535) | 1,702 | $ (242) | $ (256) | ||||||||||||
Net income | $ (708) | $ 10,363 | $ 9,655 | 1,501 | ||||||||||||
Per share information: | ||||||||||||||||
Basic net income per share of common stock | $ (0.04) | $ 0.87 | ||||||||||||||
Diluted net income per share of common stock | $ (0.04) | $ 0.79 | ||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 17,509,525 | 11,851,476 | 11,851,476 | |||||||||||||
Diluted | 18,716,562 | 13,052,758 | 13,052,758 | |||||||||||||
Treasury Management And Other Deposit Service Charges | ||||||||||||||||
Noninterest income: | ||||||||||||||||
Noninterest income | $ 2,150 | 1,516 | $ 1,108 | |||||||||||||
Treasury Management And Other Deposit Service Charges | Pro Forma | ||||||||||||||||
Noninterest income: | ||||||||||||||||
Noninterest income | 4,334 | |||||||||||||||
Treasury Management And Other Deposit Service Charges | Athens Bancshares Corporation | ||||||||||||||||
Noninterest income: | ||||||||||||||||
Noninterest income | $ 2,184 | |||||||||||||||
Treasury Management And Other Deposit Service Charges | CapStar Financial Holdings, Inc. | ||||||||||||||||
Noninterest income: | ||||||||||||||||
Noninterest income | $ 793 | 1,357 | ||||||||||||||
Mortgage Banking Income | ||||||||||||||||
Noninterest income: | ||||||||||||||||
Noninterest income | 5,653 | $ 6,238 | $ 7,375 | |||||||||||||
Mortgage Banking Income | Pro Forma | ||||||||||||||||
Noninterest income: | ||||||||||||||||
Noninterest income | $ 6,495 | |||||||||||||||
Mortgage Banking Income | Athens Bancshares Corporation | ||||||||||||||||
Noninterest income: | ||||||||||||||||
Noninterest income | 842 | |||||||||||||||
Mortgage Banking Income | CapStar Financial Holdings, Inc. | ||||||||||||||||
Noninterest income: | ||||||||||||||||
Noninterest income | $ 1,324 | $ 4,329 |
Schedule II - Acquisition Consi
Schedule II - Acquisition Consideration - Additional Information (Details) - Athens Bancshares | Oct. 31, 2018 | Oct. 01, 2018 |
Business Acquisition [Line Items] | ||
Common stock exchange ratio | 2.864 | |
CapStar Financial Holdings, Inc. | ||
Business Acquisition [Line Items] | ||
Common stock exchange ratio | 2.864 | 2.864 |
Schedule II - Summary of Acquis
Schedule II - Summary of Acquisition Consideration (Details) - Athens Bancshares $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2018USD ($)shares | Dec. 31, 2018USD ($)$ / shares | Oct. 01, 2018 | Sep. 30, 2018$ / shares | |
Business Acquisition [Line Items] | ||||
Per share exchange ratio | 2.864 | |||
Total cost of acquisition | $ 92,918 | |||
Estimated fair value of stock options rolled ("Rolled Stock Options Consideration") | $ 92,918 | |||
CapStar Financial Holdings, Inc. | ||||
Business Acquisition [Line Items] | ||||
Total number of common shares as provided by Athens management | shares | 1,809,358 | |||
Total number of Athens common stock to exchange | shares | 1,809,358 | |||
Per share exchange ratio | 2.864 | 2.864 | ||
Number of shares of CapStar common stock as exchanged | shares | 5,181,916 | |||
Multiplied by CapStar common stock price per share on September 30, 2018 | $ / shares | $ 16.70 | |||
Estimated fair value of CapStar common stock issued (“Stock Consideration”) | $ 86,538 | |||
Total number of stock options outstanding as provided by Athens management to exchange | shares | 548,051 | |||
Intrinsic value per stock option outstanding | $ / shares | $ 11.64 | |||
Total cost of acquisition | $ 6,380 | |||
Estimated fair value of stock options rolled ("Rolled Stock Options Consideration") | 6,380 | |||
Total Preliminary Estimated Acquisition Consideration | $ 92,918 |
Schedule II - Summary of Prelim
Schedule II - Summary of Preliminary Estimated Acquisition Consideration Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 37,510 | $ 6,219 | $ 6,219 | ||
Athens Bancshares | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 12,053 | $ 12,053 | |||
Securities | 67,426 | 67,426 | |||
Loans | 344,833 | ||||
Premises and equipment, net | 9,208 | 9,208 | |||
Goodwill | 31,291 | 31,291 | |||
Core deposit intangible | $ 8,980 | 8,980 | |||
Other | 30,510 | 30,510 | |||
Deposits | (404,520) | ||||
Other liabilities | $ (6,863) | (6,863) | |||
Total acquisition consideration | $ 92,918 |
Schedule II - Preliminary Estim
Schedule II - Preliminary Estimated Acquisition Consideration Allocation - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Athens Bancshares | ||
Business Acquisition [Line Items] | ||
Core deposit intangible | $ 8,980 | $ 8,980 |
Schedule II - Preliminary Unaud
Schedule II - Preliminary Unaudited Pro Forma and Acquisition Accounting Adjustments - Income Statement - Pro Forma Adjustments (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||||||||||||||||
Amortization of intangibles | $ 465,000 | $ 48,000 | $ 54,000 | |||||||||||||
Income tax expense | $ (535,000) | $ 554,000 | $ 665,000 | $ 483,000 | $ 4,494,000 | $ 1,516,000 | $ (1,328,000) | $ (47,000) | $ 1,495,000 | $ 1,042,000 | $ 1,159,000 | $ 796,000 | 1,167,000 | $ 4,635,000 | $ 4,493,000 | |
Pro Forma Adjustments | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Income tax expense | 3,853,000 | |||||||||||||||
Athens Bancshares | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Amortization of intangibles | $ 1,700,000 | |||||||||||||||
Income tax expense | $ 753,000 | |||||||||||||||
Athens Bancshares | Pro Forma Adjustments | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Remove one-time merger related expenses | 14,535,000 | |||||||||||||||
Elimination of intercompany income/expense | 9,000 | |||||||||||||||
Remove amortization of existing CDI | 273,000 | |||||||||||||||
Amortization of intangibles | 1,258,000 | |||||||||||||||
Deposit premium amortization | 178,000 | |||||||||||||||
Estimate of loan interest accretion | 1,012,000 | |||||||||||||||
Income tax expense | $ 3,853,000 |
Schedule II - Preliminary Una_2
Schedule II - Preliminary Unaudited Pro Forma and Acquisition Accounting Adjustments - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||||
Amortization of intangibles | $ 465,000 | $ 48,000 | $ 54,000 | |
Athens Bancshares | ||||
Business Acquisition [Line Items] | ||||
Core deposit intangible | 8,980,000 | $ 8,980,000 | ||
Amortization of intangibles | 1,700,000 | |||
Interest accretion amount | $ 4,800,000 | |||
Incremental effective tax rate | 26.14% |
Schedule II - Earnings per Comm
Schedule II - Earnings per Common Share - Summary of Unaudited Pro Forma Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pro forma net income available to common shareholders | $ 9,655 | $ 1,501 | $ 9,097 | ||
Weighted average shares outstanding: | |||||
Basic | 13,277,614 | 11,280,580 | 9,328,236 | ||
Pro forma net income per common share | $ 1.24 | ||||
Pro forma net income available to common shareholders | $ 9,655 | $ 1,501 | $ 9,097 | ||
Diluted | 14,480,347 | 12,803,511 | 11,212,026 | ||
Pro forma net income per common share | $ 1.14 | ||||
CapStar Financial Holdings, Inc. | |||||
Weighted average shares outstanding: | |||||
Basic | 17,509,525 | 11,851,476 | 11,851,476 | ||
Diluted | 18,716,562 | 13,052,758 | 13,052,758 | ||
Athens Bancshares | |||||
Weighted average shares outstanding: | |||||
Basic | 1,725,105 | 5,181,916 | |||
Diluted | 1,802,595 | 5,563,911 | |||
Pro Forma | |||||
Pro forma net income available to common shareholders | $ 21,167 | ||||
Weighted average shares outstanding: | |||||
Basic | 17,033,392 | ||||
Pro forma net income available to common shareholders | $ 21,167 | ||||
Diluted | 18,616,669 |