Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 14, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Bank7 Corp. | |
Entity Central Index Key | 1,746,129 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 10,187,500 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
Unaudited Consolidated Balance
Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 127,248 | $ 100,054 |
Interest-bearing time deposits in other banks | 29,767 | 30,168 |
Loans, net of allowance for loan losses of $7,728 and $7,654 at September 30, 2018 and December 31, 2017, respectively | 577,111 | 555,347 |
Loans held for sale | 0 | 388 |
Premises and equipment, net | 7,767 | 9,602 |
Nonmarketable equity securities | 1,055 | 1,049 |
Foreclosed assets held for sale | 110 | 100 |
Goodwill and intangibles | 2,046 | 2,201 |
Interest receivable and other assets | 6,069 | 4,685 |
Total assets | 751,173 | 703,594 |
Deposits | ||
Noninterest-bearing | 222,675 | 165,911 |
Interest-bearing | 441,638 | 459,920 |
Total deposits | 664,313 | 625,831 |
Borrowings | 0 | 5,600 |
Interest payable and other liabilities | 4,095 | 2,987 |
Total liabilities | 668,408 | 634,418 |
Shareholders' equity | ||
Preferred stock, par value $0.01 per share, 1,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock | 102 | 73 |
Additional paid-in capital | 80,136 | 6,987 |
Retained earnings | 2,527 | 62,116 |
Total shareholders' equity | 82,765 | 69,176 |
Total liabilities and shareholders' equity | 751,173 | 703,594 |
Non-voting Common Stock [Member] | ||
Shareholders' equity | ||
Common stock | $ 0 | $ 0 |
Unaudited Consolidated Balanc_2
Unaudited Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Allowance for loan losses | $ 7,728 | $ 7,654 |
Shareholders' equity | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 10,187,500 | 7,287,500 |
Common stock, shares outstanding (in shares) | 10,187,500 | 7,287,500 |
Non-voting Common Stock [Member] | ||
Shareholders' equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest Income | ||||
Loans, including fees | $ 11,082 | $ 10,325 | $ 32,490 | $ 32,051 |
Interest-bearing time deposits in other banks | 147 | 123 | 438 | 416 |
Interest-bearing deposits in other banks | 510 | 268 | 1,288 | 560 |
Total interest income | 11,739 | 10,716 | 34,216 | 33,027 |
Interest Expense | ||||
Deposits | 1,881 | 1,204 | 4,940 | 3,208 |
Other borrowings | 57 | 59 | 175 | 177 |
Total interest expense | 1,938 | 1,263 | 5,115 | 3,385 |
Net Interest Income | 9,801 | 9,453 | 29,101 | 29,642 |
Provision for Loan Losses | 0 | 150 | 100 | 1,096 |
Net Interest Income After Provision for Loan Losses | 9,801 | 9,303 | 29,001 | 28,546 |
Noninterest Income | ||||
Secondary market income | 95 | 82 | 173 | 133 |
Service charges on deposit accounts | 88 | 81 | 261 | 255 |
Other | 136 | 219 | 635 | 904 |
Total noninterest income | 319 | 382 | 1,069 | 1,292 |
Noninterest Expense | ||||
Salaries and employee benefits | 2,082 | 1,962 | 6,077 | 5,600 |
Furniture and equipment | 182 | 246 | 491 | 590 |
Occupancy | 319 | 301 | 898 | 764 |
Data and item processing | 248 | 222 | 716 | 658 |
Accounting, marketing and legal fees | 74 | 64 | 218 | 215 |
Regulatory assessments | 145 | 130 | 396 | 458 |
Advertising and public relations | 63 | 63 | 413 | 264 |
Travel, lodging and entertainment | 260 | 277 | 618 | 772 |
Other | 432 | 470 | 1,200 | 1,296 |
Total noninterest expense | 3,805 | 3,735 | 11,027 | 10,617 |
Income Before Taxes | 6,315 | 5,950 | 19,043 | 19,221 |
Benefit for income taxes | (395) | 0 | (395) | 0 |
Net Income | $ 6,710 | $ 5,950 | $ 19,438 | $ 19,221 |
Basic earnings per common share (in dollars per share) | $ 0.88 | $ 0.82 | $ 2.63 | $ 2.64 |
Diluted earnings per common share (in dollars per share) | $ 0.87 | $ 0.82 | $ 2.62 | $ 2.64 |
Weighted average common shares outstanding - basic (in shares) | 7,634,239 | 7,287,500 | 7,404,350 | 7,287,500 |
Weighted average common shares outstanding - diluted (in shares) | 7,669,348 | 7,287,500 | 7,416,182 | 7,287,500 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2016 | $ 73 | $ 6,987 | $ 48,076 | $ 55,136 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 0 | 0 | 19,221 | 19,221 |
Cash distributions declared | 0 | 0 | (7,800) | (7,800) |
Balance at Sep. 30, 2017 | 73 | 6,987 | 59,497 | 66,557 |
Balance at Dec. 31, 2017 | 73 | 6,987 | 62,116 | 69,176 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 0 | 0 | 19,438 | 19,438 |
Common stock issued, net of offering costs | 29 | 50,125 | 0 | 50,154 |
Capital injection | 0 | 137 | 0 | 137 |
Reclassification of undistributed S Corporation earnings | 0 | 22,872 | (22,872) | 0 |
Stock-based compensation expense | 0 | 15 | 0 | 15 |
Cash distributions declared | 0 | 0 | (56,155) | (56,155) |
Balance at Sep. 30, 2018 | $ 102 | $ 80,136 | $ 2,527 | $ 82,765 |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Unaudited Consolidated Statements of Shareholders' Equity [Abstract] | ||
Cash distributions declared per share (in dollars per share) | $ 7.71 | $ 1.07 |
Unaudited Consolidated Statem_4
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating Activities | ||
Net income | $ 19,438 | $ 19,221 |
Items not requiring (providing) cash | ||
Depreciation and amortization | 602 | 817 |
Provision for loan losses | 100 | 1,096 |
Net increase on other real estate owned | (10) | 0 |
Gain on sales of loans | (173) | (133) |
Gain on sale of premises and equipment | (138) | (39) |
Cash receipts from the sale of loans originated for sale | 6,111 | 4,973 |
Cash disbursements for loans originated for sale | (5,550) | (4,682) |
Loss on sale of other real estate owned | 3 | 6 |
Benefit for deferred income tax | (731) | 0 |
Stock-based compensation expense | 15 | 0 |
Changes in | ||
Interest receivable and other assets | (653) | (139) |
Interest payable and other liabilities | 1,108 | (393) |
Net cash provided by operating activities | 20,122 | 20,727 |
Investing Activities | ||
Maturities of interest-bearing time deposits in other banks | 1,393 | 1,245 |
Purchases of interest-bearing time deposits in other banks | (992) | (2,241) |
Net change in loans | (21,914) | (30,084) |
Purchases of premises and equipment | 0 | (747) |
Proceeds from sale of premises and equipment | 1,526 | 0 |
Purchase of nonmarketable equity securities | (6) | (4) |
Proceeds from sale of foreclosed assets | 47 | 160 |
Net cash used in investing activities | (19,946) | (31,671) |
Financing Activities | ||
Net change in deposits | 38,482 | 40,105 |
Repayment of borrowed funds | (5,600) | (800) |
Cash distributions paid | (56,155) | (7,800) |
Capital injection | 137 | 0 |
Net proceeds from issuance of common stock | 50,154 | 0 |
Net cash provided by financing activities | 27,018 | 31,505 |
Increase in Cash and Due from Banks | 27,194 | 20,561 |
Cash and Due from Banks, Beginning of Period | 100,054 | 74,244 |
Cash and Due from Banks, End of Period | 127,248 | 94,805 |
Supplemental Disclosure of Cash Flows Information | ||
Interest paid | 2,954 | 2,095 |
Supplemental Disclosures of Non-Cash Investing Activities | ||
Foreclosed assets acquired in settlement of loans | $ 50 | $ 163 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Nature of Operations and Summary of Significant Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Note 1: Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Bank7 Corp. (the "Company"), formerly known as Haines Financial Corp, is a bank holding company whose principal activity is the ownership and management of its wholly owned subsidiary, Bank7 (the "Bank"). The Bank is primarily engaged in providing a full range of banking and financial services to individual and corporate customers located in Oklahoma, Kansas, and Texas. The Bank is subject to competition from other financial institutions. The Company is subject to the regulation of certain federal agencies and undergoes periodic examinations by those regulatory authorities. Basis of Presentation The accompanying unaudited interim consolidated financial statements contained herein reflect all adjustments which are, in the opinion of management, necessary to provide a fair statement of the financial position, results of operations, and cash flows of the Company for the interim periods presented. All such adjustments are of a normal and recurring nature. There have been no significant changes in the accounting policies of the Company since December 31, 2017, the date of the prospectus. The information contained in the financial statements and footnotes included in Company’s prospectus for the year ended December 31, 2017, should be referred to in connection with these unaudited interim consolidated financial statements. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, the Bank and its subsidiary, 1039 NW 63 rd Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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, valuation of other real estate owned, other-than-temporary impairments and fair values of financial instruments. Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. Interest-Bearing Time Deposits in Other Banks Interest-bearing time deposits in other banks totaled $29.8 million and $30.2 million at September 30, 2018 and December 31, 2017, respectively, and have original maturities generally ranging from one to five years. Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Securities not classified as held-to-maturity or trading, including equity securities with readily determinable fair values, are classified as “available-for-sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. For debt securities with fair value below amortized cost when the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. The Company had no “available-for-sale” or held to maturity investments as of September 30, 2018 and December 31, 2017. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized over the respective term of the loan. 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. 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. All interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Mortgage Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon the sale of the loan. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay and estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows or collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers nonimpaired loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. 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. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral-dependent. Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. Premises and Equipment Depreciable assets are stated at cost, less accumulated depreciation. Depreciation is charged to expense using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are capitalized and depreciated using the straight-line method over the terms of the estimated useful lives of the improvements. The estimated useful lives for each major depreciable classification of premises and equipment are as follows: Buildings and improvements 15–30 years Furniture and equipment 5–10 years Aircraft 5-7 years Automobiles 3–5 years Non-Marketable Equity Securities Non-marketable equity securities consist primarily of Federal Home Loan Bank of Topeka (FHLB) stock and Federal Reserve Bank of Kansas City stock and are required investments for financial institutions that are members of the FHLB and Federal Reserve systems. The required investment in common stock is based on a predetermined formula, carried at cost and evaluated for impairment. Long-Lived Asset Impairment The Company evaluates the recoverability of the carrying value of long-lived assets whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows is expected to result from the use and eventual disposition of the asset is less than the carrying amount of the asset, the asset cost is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value. No asset impairment was recognized during the three month and nine month periods ended September 30, 2018 and 2017. Foreclosed Assets Held for Sale Foreclosed assets held for sale consist of assets acquired through, or in lieu of, loan foreclosure and are initially recorded at fair value, less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount of fair value less costs to sell. Revenue and expenses from operations and changes in the valuation allowance are included in current operations. Goodwill and Intangible Assets Goodwill is tested annually for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the accompanying consolidated financial statements. Other intangible assets consist of core deposit intangible assets and are amortized on a straight-line basis based on an estimated useful life of 10 years. Such assets are periodically evaluated as to the recoverability of their carrying values. Segments While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Discrete financial information is not available other than on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU supersedes and replaces nearly all existing revenue recognition guidance, including industry-specific guidance, and establishes a new control-based revenue recognition model for revenue from contracts with customers. The revenue line items in scope of this ASU have been identified and final assessment is pending; however, the majority of the Company’s financial instruments are not within the scope of Topic 606. Material revenue streams within the scope of Topic 606 include service charges on deposits. The guidance in the ASU is effective for reporting periods beginning after December 15, 2018. Management is still assessing the impact of this ASU; however, based on the revenue streams impacted, it is expected that it will not have a significant impact on the Company’s financial condition and results of operations. The Company will adopt this ASU in the first quarter of 2019. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU requires certain equity investments to be measured at fair value with changes recognized in net income. It also requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purpose and eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value disclosed for financial instruments measured at amortized cost. The guidance in the ASU is effective for reporting periods beginning after December 15, 2018. Management is still assessing the impact of this ASU; however, it is expected that it will not have a significant impact on the Company’s financial condition and results of operations. The Company will adopt this ASU in the first quarter of 2019. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The ASU requires lessees to recognize a lease liability and a right-of-use asset for all leases, excluding short-term leases, at the commencement date. The guidance in the ASU is effective for reporting periods beginning after December 15, 2019. Additionally, a modified retrospective transition approach is required for a leases existing at the earliest comparative period presented. Management is assessing the impact of this ASU; however, it is not expected to have a material impact on the Company’s financial condition, results of operation, or capital position, but will impact the presentation on the balance sheet of the Company’s current operating leases. The Company will adopt this ASU in the first quarter of 2020. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). The ASU requires the replacement of the current incurred loss model with an expected loss model, referred to as the current expected credit loss (CECL) model. The guidance in the ASU is effective for reporting periods beginning after December 15, 2020 with a cumulative-effect adjustment to retained earnings required for the first reporting period. Management is still assessing the impact of this ASU; however, it is expected that it will not have a significant impact on the Company’s financial condition and results of operations as this modifies the calculation of the allowance by accelerating the recognition of losses. The Company will adopt this ASU in the fourth quarter of 2021. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU amends existing guidance to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The guidance in the ASU is effective for reporting periods beginning after December 15, 2021 with prospective application. Management is still assessing the impact of this ASU; however, it is expected that it will not have a significant impact on the Company’s financial condition and results of operations. The Company will adopt this ASU in the first quarter of 2022. |
Change in Capital Structure
Change in Capital Structure | 9 Months Ended |
Sep. 30, 2018 | |
Change in Capital Structure [Abstract] | |
Change in Capital Structure | Note 2: Change in Capital Structure On June 26, 2018, the Company amended and restated its Certificate of Incorporation. The original Certificate of Incorporation was amended to change the name of the Company from Haines Financial Corp to Bank7 Corp. In addition, the amendment changed the capital structure to authorize the issuance of 50,000,000 shares of common stock, par value $0.01 per share (the “Common Stock”), 20,000,000 shares of non-voting common stock, par value $0.01 per share (the “Non-voting Common Stock”), and 1,000,000 shares of preferred stock, par value $0.01 per share (the “Preferred Stock”). The Company completed a 24 to 1 stock split of the Company’s outstanding shares of common stock for shareholders on record as of July 6, 2018. The stock was payable in the form of a dividend on or about July 9, 2018. Shareholders received 24 additional shares for each share held. All share and per share amounts in the consolidated financial statements and related notes have been retroactively adjusted to reflect this stock split for all periods presented. Initial Public Offering On September 24, 2018, the Company completed the initial public offering of its common stock. In connection with the Company’s initial public offering, the Company sold and issued 2,900,000 shares of common stock at $19 per share. After deducting the underwriting discounts and offering expenses, the Company received total net proceeds of $50.1 million from the initial public offering. In connection with the initial public offering, the Company terminated its S Corporation status and became a taxable entity (“C Corporation”) on September 24, 2018. As such, any periods prior to September 24, 2018 will only reflect an effective state income tax rate. As a result of the termination of S Corporation status, we increased our deferred tax asset and recorded a tax benefit of $731,000. The deferred tax asset is the result of timing differences in the recognition of income/deductions for GAAP and tax purposes. Net deferred tax assets are included in other assets and no valuation allowance is considered necessary. We or one of our subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. We are no longer subject to U.S. federal or state tax examinations for years before 2014. |
Restriction on Cash and Due fro
Restriction on Cash and Due from Banks | 9 Months Ended |
Sep. 30, 2018 | |
Restriction on Cash and Due from Banks [Abstract] | |
Restriction on Cash and Due from Banks | Note 3: Restriction on Cash and Due from Banks The Company is required to maintain reserve funds in cash and/or on deposit with the Federal Reserve Bank of Kansas City. The reserve required at September 30, 2018 was $16.4 million. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Common Share [Abstract] | |
Earnings Per Common Share | Note 4: Earnings Per Common Share Earnings per common share is computed using the two-class method prescribed by ASC 260, Earnings Per Share The following table shows the computation of basic and diluted earnings per share: For the three months ended September 30, For the nine months ended September 30, 2018 2017 2018 2017 (Dollars in thousands, except per share amounts) Numerator Net income $ 6,710 $ 5,950 $ 19,438 $ 19,221 Denominator Denominator for basic earnings per common share 7,634,239 7,287,500 7,404,350 7,287,500 Dilutive effect of stock compensation 35,109 - 11,832 - Denominator for diluted earnings per share 7,669,348 7,287,500 7,416,182 7,287,500 Earnings per common share Basic $ 0.88 $ 0.82 $ 2.63 $ 2.64 Diluted $ 0.87 $ 0.82 $ 2.62 $ 2.64 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2018 | |
Loans and Allowance for Loan Losses [Abstract] | |
Loans and Allowance for Loan Losses | Note 5: Loans and Allowance for Loan Losses A summary of loans at September 30, 2018 and December 31, 2017 are as follows (dollars in thousands): September 30, 2018 December 31, 2017 Real estate $ 328,876 $ 323,216 Commercial 229,480 205,229 Agricultural 25,963 33,760 Consumer 2,372 2,372 Gross loans 586,691 564,577 Less allowance for loan losses (7,728 ) (7,654 ) Less deferred loan fees (1,852 ) (1,576 ) Net loans $ 577,111 $ 555,347 The following table presents, by portfolio segment, the activity in the allowance for loan losses for the three months ended September 30, 2018 and 2017 (dollars in thousands): Real Estate Commercial Agricultural Consumer Total September 30, 2018 Balance, beginning of period $ 4,337 $ 3,010 $ 324 $ 30 $ 7,701 Charge-offs (2 ) (12 ) - - (14 ) Recoveries 1 39 1 - 41 Net charge-offs (1 ) 27 1 - 27 Provision (credit) for loan losses (4 ) (14 ) 17 1 - Balance, end of period $ 4,332 $ 3,023 $ 342 $ 31 $ 7,728 Real Estate Commercial Agricultural Consumer Total September 30, 2017 Balance, beginning of period $ 4,017 $ 2,909 $ 442 $ 37 $ 7,405 Charge-offs - (55 ) - (14 ) (69 ) Recoveries 9 1 - - 10 Net charge-offs 9 (54 ) - (14 ) (59 ) Provision (credit) for loan losses 363 (267 ) 42 12 150 Balance, end of period $ 4,389 $ 2,588 $ 484 $ 35 $ 7,496 The following table presents, by portfolio segment, the activity in the allowance for loan losses for the nine months ended September 30, 2018 and 2017 (dollars in thousands): Real Estate Commercial Agricultural Consumer Total September 30, 2018 Balance, beginning of period $ 4,382 $ 2,782 $ 458 $ 32 $ 7,654 Charge-offs (28 ) (74 ) - - (101 ) Recoveries 5 69 1 1 75 Net charge-offs (23 ) (5 ) 1 1 (26 ) Provision (credit) for loan losses (27 ) 246 (117 ) (2 ) 100 Balance, end of period $ 4,332 $ 3,023 $ 342 $ 31 $ 7,728 Real Estate Commercial Agricultural Consumer Total September 30, 2017 Balance, beginning of period $ 3,754 $ 2,512 $ 537 $ 70 $ 6,873 Charge-offs (199 ) (295 ) - (13 ) (507 ) Recoveries 24 6 - 4 34 Net charge-offs (175 ) (289 ) - (9 ) (473 ) Provision (credit) for loan losses 810 365 (53 ) (26 ) 1,096 Balance, end of period $ 4,389 $ 2,588 $ 484 $ 35 $ 7,496 The following table presents, by portfolio segment, the balance in allowance for loan losses and the gross loans based upon portfolio segment and impairment method as of September 30, 2018 and December 31, 2017 (dollars in thousands). Real Estate Commercial Agricultural Consumer Total September 30, 2018 Allowance Balance Ending balance individually evaluated for impairment $ - $ 14 $ - $ 1 $ 15 Collectively evaluated for impairment 4,332 3,009 342 30 7,713 Total $ 4,332 $ 3,023 $ 342 $ 31 $ 7,728 Gross Loans Ending balance individually evaluated for impairment $ 1,563 $ 8,051 $ - $ 4 $ 9,618 Collectively evaluated for impairment 327,313 221,429 25,963 2,368 577,073 Total $ 328,876 $ 229,480 $ 25,963 $ 2,372 $ 586,691 December 31, 2017 Allowance Balance Ending balance individually evaluated for impairment $ 300 $ 22 $ 64 $ 10 $ 396 Collectively evaluated for impairment 4,082 2,760 394 22 7,258 Total $ 4,382 $ 2,782 $ 458 $ 32 $ 7,654 Gross Loans Ending balance individually evaluated for impairment $ 1,517 $ 1,031 $ 1,893 $ 15 $ 4,456 Collectively evaluated for impairment 321,699 204,198 31,867 2,357 560,121 Total $ 323,216 $ 205,229 $ 33,760 $ 2,372 $ 564,577 Internal Risk Categories Risk characteristics applicable to each segment of the loan portfolio are described as follows: Real Estate Commercial Agricultural Consumer Loan grades are numbered 1 through 4. Grade 1 is considered satisfactory. The grades of 2 and 3, or Watch and Special Mention, respectively, represent loans of lower quality and are considered criticized. Grade of 4, or Substandard, refers to loans that are classified. · Grade 1 (Pass) · Grade 2 (Watch) · Grade 3 (Special Mention) · Grade 4 (Substandard) The Company evaluates the definitions of loan grades and the allowance for loan losses methodology on an ongoing basis. No changes were made to either during period ended September 30, 2018. The following table presents the credit risk profile of the Company’s loan portfolio based on internal rating category as of September 30, 2018 and December 31, 2017 (dollars in thousands): Real Estate Commercial Agricultural Consumer Total September 30, 2018 Grade 1 (Pass) $ 308,141 $ 216,959 $ 25,079 $ 2,368 $ 552,547 2 (Watch) 15,594 4,470 623 - 20,687 3 (Special Mention) 3,578 - 261 - 3,839 4 (Substandard) 1,563 8,051 - 4 9,618 Total $ 328,876 $ 229,480 $ 25,963 $ 2,372 $ 586,691 Real Estate Commercial Agricultural Consumer Total December 31, 2017 Grade 1 (Pass) $ 296,828 $ 192,287 $ 31,676 $ 2,358 $ 523,149 2 (Watch) 17,744 7,764 90 - 25,598 3 (Special Mention) 7,126 4,147 101 - 11,374 4 (Substandard) 1,518 1,031 1,893 14 4,456 Total $ 323,216 $ 205,229 $ 33,760 $ 2,372 $ 564,577 The following table presents the Company’s loan portfolio aging analysis of the recorded investment in loans as of September 30, 2018 and December 31, 2017 (dollars in thousands): Past Due Total Loans > 90 Days & Accruing 30–59 Days 60–89 Days Greater than 90 Days Total Current Total September 30, 2018 Real estate $ 89 $ - $ - $ 89 $ 328,787 $ 328,876 $ - Commercial - 208 - 208 229,272 229,480 - Agricultural - - - - 25,963 25,963 - Consumer - - - - 2,372 2,372 - Total $ 89 $ 208 $ - $ 297 $ 586,394 $ 586,691 $ - December 31, 2017 Real estate $ 47 $ - $ 111 $ 158 $ 323,058 $ 323,216 $ - Commercial 2 - - 2 205,227 205,229 - Agricultural - - - - 33,760 33,760 - Consumer 7 - - 7 2,365 2,372 - Total $ 56 $ - $ 111 $ 167 $ 564,410 $ 564,577 $ - The following table presents impaired loans as of September 30, 2018 and December 31, 2017 (dollars in thousands): Unpaid Principal Balance Recorded Investment with No Allowance Recorded Investment with an Allowance Total Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 September 30, 2018 Real estate $ 1,563 $ 1,563 $ - $ 1,563 $ - $ 1,538 $ 31 $ 1,717 $ 89 Commercial 8,271 8,024 27 8,051 14 8,231 141 6,933 425 Agricultural - - - - - - - 197 - Consumer 9 - 4 4 1 5 - 8 1 Total $ 9,843 $ 9,587 $ 31 $ 9,618 $ 15 $ 9,774 $ 172 $ 8,855 $ 515 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 December 31, 2017 Real estate $ 1,525 $ 355 $ 675 $ 1,031 $ 300 $ 2,048 $ 47 $ 3,060 $ 136 Commercial 1,207 1,477 41 1,517 22 1,255 21 3,991 83 Agricultural 1,908 1,604 290 1,893 64 1,819 113 1,610 96 Consumer 19 - 15 15 10 19 1 23 1 Total $ 4,659 $ 3,436 $ 1,021 $ 4,456 $ 396 $ 5,141 $ 182 $ 8,684 $ 316 Impaired loans include nonperforming loans and also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Included in certain loan categories in the impaired loans are troubled debt restructurings that were classified as impaired. At September 30, 2018, the Company had $950,000 of commercial loans that were modified in troubled debt restructurings and impaired and $1.5 million of commercial loans that were modified in troubled debt restructurings and impaired as of December 31, 2017. There were no newly modified troubled debt restructurings during the three and nine month periods ended September 30, 2018 and 2017. There were no troubled debt restructurings modified in the three months ended September 30, 2018 that subsequently defaulted for the period ended September 30, 2018. |
Premises and Equipment
Premises and Equipment | 9 Months Ended |
Sep. 30, 2018 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | Note 6: Premises and Equipment Major classifications of premises and equipment, stated at cost and net of accumulated depreciation are as follows (dollars in thousands): September 30, 2018 December 31, 2017 Land, buildings and improvements $ 8,282 $ 8,225 Furniture and equipment 1,622 1,554 Aircraft - 2,083 Automobiles 782 699 10,686 12,561 Less accumulated depreciation (2,919 ) (2,959 ) Net premises and equipment $ 7,767 $ 9,602 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2018 | |
Intangible Assets [Abstract] | |
Intangible Assets | Note 7: Intangible Assets The gross carrying amount and accumulated amortization of recognized intangible assets at September 30, 2018 and December 31, 2017 were (dollars in thousands): September 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Core deposit intangible $ 2,061 $ (1,025 ) $ 2,061 $ (871 ) Amortization expense for intangible assets totaled $52,000 for the three months ended September 30, 2018 and 2017, and $155,000 for the nine months ended September 30, 2018 and 2017. Estimated amortization expense for each of the following five years is as follows (dollars in thousands): 2018 $ 52 2019 206 2020 206 2021 206 2022 206 Thereafter 160 $ 1,036 |
Interest-Bearing Deposits
Interest-Bearing Deposits | 9 Months Ended |
Sep. 30, 2018 | |
Interest-Bearing Deposits [Abstract] | |
Interest-Bearing Deposits | Note 8: Interest-Bearing Deposits Interest-bearing time deposits in denominations of $250,000 or more were $57.3 million and $58.7 million at September 30, 2018 and December 31, 2017, respectively. At September 30, 2018, the scheduled maturities of interest-bearing time deposits were as follows (dollars in thousands): 2018 $ 34,595 2019 145,733 2020 19,738 Thereafter 3,664 $ 203,730 Some interest-bearing time deposits are obtained through brokered transactions and the Company participates in the Certificate of Deposit Account Registry Service (“CDARS”). CDARS deposits totaled $35.1 million at September 30, 2018 and $86.5 million at December 31, 2017. |
Letters of Credit
Letters of Credit | 9 Months Ended |
Sep. 30, 2018 | |
Letters of Credit [Abstract] | |
Letters of Credit | Note 9: Letters of Credit The Bank has entered into an arrangement with the FHLB resulting in the FHLB issuing letters of credit on behalf of the Bank with the resulting beneficiary being certain public funds in connection with these deposits. Outstanding letters of credit to secure these public funds at September 30, 2018 and December 31, 2017, were $24.6 million and $25.3 million, respectively. Loans with a collateral value of approximately $61.1 million were used to secure the letters of credit. |
Advances and Borrowings
Advances and Borrowings | 9 Months Ended |
Sep. 30, 2018 | |
Advances and Borrowings [Abstract] | |
Advances and Borrowings | Note 10: Advances and Borrowings The Bank has a blanket floating lien security agreement with the FHLB with a maximum borrowing capacity of $37.3 million at September 30, 2018, under which the Bank is required to maintain collateral for any advances, including its stock in the FHLB, as well as qualifying first mortgages and other loans. The Bank had no advances from the FHLB at September 30, 2018 or December 31, 2017. The Company had debt outstanding with The Bankers Bank of $5.6 million at December 31, 2017, secured by certain shares of common stock of the Bank held by the Company. The purpose of this transaction was to facilitate the purchase of The Montezuma State Bank in 2014 and to inject capital into the Bank. The remaining principal balance of the note, as well as the accrued interest payable, was paid in full in September 2018. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2018 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Note 11: Regulatory Matters The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under GAAP, regulatory reporting requirements and regulatory capital standards. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Company’s and the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of total, Tier I , and Common Equity capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined). Management believes, as of September 30, 2018, that the Bank meets all capital adequacy requirements to which it is subject and maintains capital conservation buffers that allow the Company and Bank to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to certain executive officers. As of September 30, 2018, the most recent notification from the Federal Deposit Insurance Corporation (FDIC) categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain capital ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Bank’s actual capital amounts and ratios are presented in the following table (dollars in thousands): Actual Minimum Capital Requirements Minimum To Be Well Capitalized Under Prompt Corrective Action Amount Ratio Amount Ratio Amount Ratio As of September 30, 2018 Total capital (to risk-weighted assets) $ 87,915 15.11 % $ 46,544 8.00 % $ 58,180 10.00 % Tier I capital (to risk-weighted assets) $ 80,646 13.86 % $ 34,908 6.00 % $ 46,544 8.00 % Common Equity Tier I capital (to risk-weighted assets) $ 80,646 13.86 % $ 26,181 4.50 % $ 37,817 6.50 % Tier I capital (to average assets) $ 80,646 10.90 % $ 29,606 4.00 % $ 37,007 5.00 % As of December 31, 2017 Total capital (to risk-weighted assets) $ 79,740 13.83 % $ 46,123 8.00 % $ 57,654 10.00 % Tier I capital (to risk-weighted assets) $ 72,528 12.58 % $ 34,593 6.00 % $ 46,123 8.00 % Common Equity Tier I capital (to risk-weighted assets) $ 72,528 12.58 % $ 25,944 4.50 % $ 37,475 6.50 % Tier I capital (to average assets) $ 72,528 10.53 % $ 27,549 4.00 % $ 34,436 5.00 % In July 2013, the federal regulatory authorities issued a new capital rule based, in part, on revisions developed by the Basel Committee on Banking Supervision to the Basel capital framework (Basel III). The Bank became subject to the new rule effective January 1, 2015. Generally, the new rule implements higher minimum capital requirements, revises the definition of regulatory capital components and related calculations, adds a new common equity tier 1 capital ratio, implements a new capital conservation buffer, increases the risk weighting for past due loans and provides a transition period for several aspects of the new rule. The current (new) capital rule provides that, in order to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers, a banking organization must hold a capital conservation buffer composed of common equity tier 1 capital above its minimum risk-based capital requirements. The buffer is measured relative to risk-weighted assets. Phase-in of the capital conservation buffer requirements became effective January 1, 2016. The transition schedule for new ratios, including the capital conservation buffer, is as follows: As of January 1: 2015 2016 2017 2018 2019 Capital conservation buffer 0.00 % 0.625 % 1.25 % 1.875 % 2.50 % Minimum total capital plus capital conservation buffer 8.00 % 8.625 % 9.25 % 9.875 % 10.50 % Minimum Tier 1 capital plus capital conservation buffer 6.00 % 6.625 % 7.25 % 7.875 % 8.50 % Minimum Common Equity Tier 1 capital plus capital conservation buffer 4.50 % 5.125 % 5.75 % 6.375 % 7.00 % As fully phased in, a banking organization with a buffer greater than 2.5% would not be subject to additional limits on dividend payments or discretionary bonus payments; however, a banking organization with a buffer less than 2.5% would be subject to increasingly stringent limitations as the buffer approaches zero. The new rule also prohibits a banking organization from making dividend payments or discretionary bonus payments if its eligible retained income is negative in that quarter and its capital conservation buffer ratio was less than 2.5% as the beginning of that quarter. Eligible net income is defined as net income for the four calendar quarters preceding the current calendar quarter, net of any distributions and associated tax effects not already reflected in net income. A summary of payout restrictions based on the capital conservation buffer is as follows: Capital Conservation Buffer (as a % of risk-weighted assets) Maximum Payout (as a % of eligible retained income) Greater than 2.5% No payout limitations applies ≤2.5% and >1.875% 60 % ≤1.875% and >1.25% 40 % ≤1.25% and >0.625% 20 % ≤0.625% 0 % The Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. At September 30, 2018, approximately $35.5 million of retained earnings was available for dividend declaration from the Bank to the Company without prior regulatory approval. |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related-Party Transactions [Abstract] | |
Related-Party Transactions | Note 12: Related Party Transactions At September 30, 2018 and December 31, 2017, the Company had loans outstanding to executive officers, directors, significant shareholders and their affiliates (related parties) approximating $10.6 million and $6.7 million, respectively. A summary of these loans is as follows (dollars in thousands): Balance Beginning of the Period Additions Collections/ Terminations Balance End of the Period For the nine months ended September 30, 2018 $ 6,684 $ 6,738 $ (2,831 ) $ 10,591 Year ended December 31, 2017 $ 3,446 $ 3,684 $ (446 ) $ 6,684 In management’s opinion, such loans and other extensions of credit and deposits were made in the ordinary course of business and were made on substantially the same terms (including interest rates and collateral) as those prevailing at the time for comparable transactions with other persons. Further, in management’s opinion, these loans did not involve more than normal risk of collectability or present other unfavorable features. On September 28, 2018, the Bank sold its aircraft subsidiary, 711 Holdings, LLC to a related party of the Company for $1.5 million, resulting in a net gain of $137,000. As this was a common control transaction, the gain is considered a capital injection, and is recognized as such in the consolidated statement of shareholders’ equity. The Bank leases office and retail banking space in Woodward, Oklahoma from Haines Realty Investments Company, LLC, a related party of the Company. Lease expense totaled $46,000 for the three months ended September 30, 2018 and 2017, and $138,000 for the nine months ended September 30, 2018 and 2017. In addition, payroll and office sharing arrangements were in place between the Company and certain of its affiliates. |
Employee Benefits
Employee Benefits | 9 Months Ended |
Sep. 30, 2018 | |
Employee Benefits [Abstract] | |
Employee Benefits | Note 13: Employee Benefits 401(k) Savings Plan The Company has a retirement savings 401(k) plan covering substantially all employees. Employees may contribute up to the maximum legal limit with the Bank matching up to 5% of the employee’s salary. Employer contributions charged to expense for the three months ended September 30, 2018 and 2017 totaled $61,000 and $52,000, respectively. Employer contributions for the nine months ended September 30, 2018 and 2017 totaled $154,000 and $127,000, respectively. Stock-Based Compensation The Company adopted a nonqualified incentive stock option plan (the “Bank7 Corp. 2018 Equity Incentive Plan” or “Plan”) in September 2018. The Bank7 Corp. 2018 Equity Incentive Plan will terminate in September 2028, if not extended. Compensation expense related to the Plan for the three and nine months ended September 30, 2018 was $15,000. In connection with its IPO in September 2018, the Company granted to employees restricted stock units (RSUs) which vest ratably over five years and stock options which vest ratably over four years. All RSUs and stock options were granted at the fair value of the common stock at the time of the award. The RSUs are considered fixed awards as the number of shares and fair value are known at the date of grant and the fair value at the grant date is amortized over the vesting and/or service period. The Company uses newly issued shares for granting RSUs and stock options. The following table is a summary of the stock option activity under the Bank7 Corp. 2018 Equity Incentive Plan (dollar amounts in thousands, except per share data): Options Wgtd. Avg. Exercise Price Wgtd. Avg. Remaining Contractual Term Aggregate Intrinsic Value Nine Months Ended September 30, 2018 Options Granted 150,000 $ 19.00 Options Exercised - - Outstanding at September 30, 2018 150,000 $ 19.00 9.97 Yrs $ 38 Exercisable at September 30, 2018 - - - The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model and is based on certain assumptions including risk-free rate of return, dividend yield, stock price volatility and the expected term. The fair value of each option is expensed over its vesting period. The following table shows the assumptions used for computing stock-based compensation expense under the fair value method on options granted during the periods presented: Three Months Ended September 30, 2018 Risk-free interest rate 2.69 % Dividend yield 2.20 % Stock price volatility 13.70 % Expected term 4 yrs The following table summarizes share information about RSUs for the nine months ended September 30, 2018: Number of Shares Wgtd. Avg. Grant Date Fair Value Shares granted 130,000 $ 19.00 Shares settled - - Shares forfeited - - End of the period balance 130,000 $ 19.00 As of September 30, 2018, there was approximately $2.46 million of unrecognized compensation expense related to 130,000 unvested RSUs and approximately $302,000 of unrecognized compensation expense related to 150,000 unvested stock options. The stock option expense is expected to be recognized over a weighted average period of four years, and the RSU expense is expected to be recognized over a weighted average period of five years. As of September 30, 2018, no RSUs or stock options were vested. |
Disclosures About Fair Value of
Disclosures About Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Disclosures About Fair Value of Assets and Liabilities [Abstract] | |
Disclosures About Fair Value of Assets and Liabilities | Note 14: Disclosures About Fair Value of Assets and Liabilities Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 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 for substantially the full term of the assets or liabilities Level 3 Unobservable inputs supported by little or no market activity and significant to the fair value of the assets or liabilities Recurring Measurements There were no assets measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017. Nonrecurring Measurements The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2018 and December 31, 2017 (dollars in thousands): Fair Value (Level 1) (Level 2) (Level 3) September 30, 2018 Impaired loans (collateral- dependent) $ 31 $ - $ - $ 31 Foreclosed assets held for sale $ 110 $ - $ - $ 110 December 31, 2017 Impaired loans (collateral- dependent) $ 1,021 $ - $ - $ 1,021 Foreclosed assets held for sale $ 100 $ - $ - $ 100 Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Collateral-Dependent Impaired Loans, Net of Allowance for Loan Losses The estimated fair value of collateral-dependent impaired loans is based on fair value, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. The Company considers evaluation analysis as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Values of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by executive management and loan administration. Values are reviewed for accuracy and consistency by executive management and loan administration. The ultimate collateral values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. Foreclosed Assets Held for Sale Foreclosed assets held for sale are carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell when the asset is acquired. Estimated fair value of foreclosed assets is based on appraisals or evaluations. Foreclosed assets held for sale are classified within Level 3 of the fair value hierarchy. Appraisals of foreclosed assets held for sale are obtained when the asset is acquired and subsequently as deemed necessary by the Company. Appraisals are reviewed for accuracy and consistency by executive management and loan administration. The following tables presents estimated fair values of the Company’s financial instruments not recorded at fair value at September 30, 2018 and December 31, 2017 (dollars in thousands): Carrying Fair Value Measurements Amount Level 1 Level 2 Level 3 Total September 30, 2018 Financial Assets Cash and due from banks $ 127,248 $ 127,248 $ - $ - $ 127,248 Interest-bearing time deposits in other banks $ 29,767 $ - $ 29,775 $ - $ 29,775 Loans, net of allowance $ 577,111 $ - $ 576,787 $ 31 $ 576,818 Nonmarketable equity securities $ 1,055 $ - $ 1,055 $ - $ 1,055 Interest receivable $ 4,460 $ - $ 4,460 $ - $ 4,460 Financial Liabilities Deposits $ 664,313 $ - $ 663,255 $ - $ 663,255 Interest payable $ 560 $ - $ 560 $ - $ 560 December 31, 2017 Financial Assets Cash and due from banks $ 100,054 $ 100,054 $ - $ - $ 100,054 Interest-bearing time deposits in other banks $ 30,168 $ - $ 30,176 $ - $ 30,176 Loans, net of allowance $ 555,347 $ - $ 553,875 $ 1,021 $ 554,896 Mortgage loans held for sale $ 388 $ - $ 388 $ - $ 388 Nonmarketable equity securities $ 1,049 $ - $ 1,049 $ - $ 1,049 Interest receivable $ 3,674 $ - $ 3,674 $ - $ 3,674 Financial Liabilities Deposits $ 625,831 $ - $ 624,855 $ - $ 624,855 Borrowings $ 5,600 $ - $ 5,600 $ - $ 5,600 Interest payable $ 404 $ - $ 404 $ - $ 404 The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying consolidated balance sheets at amounts other than fair value: Cash and Due from Banks, Interest-Bearing Time Deposits in Other Banks, Nonmarketable Equity Securities, Interest Receivable and Interest Payable and Borrowings The carrying amount approximates fair value. Loans and Mortgage Loans Held for Sale The fair value of loans is estimated by discounting the future cash flows using the market rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics were aggregated for purposes of the calculations. Deposits Deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits. The carrying amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. Commitments to Extend Credit, Lines of Credit and Standby Letters of Credit The fair values of unfunded commitments are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. The fair values of standby letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. The estimated fair values of the Company’s commitments to extend credit, lines of credit and standby letters of credit were not material at September 30, 2018 or December 31, 2017. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 9 Months Ended |
Sep. 30, 2018 | |
Financial Instruments with Off-Balance Sheet Risk [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | Note 15: Financial Instruments with Off-Balance Sheet Risk The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the accompanying consolidated balance sheets. The following summarizes those financial instruments with contract amounts representing credit risk as of September 30, 2018 and December 31, 2017 (dollars in thousands): September 30, 2018 December 31, 2017 Commitments to extend credit $ 135,802 $ 145,888 Financial and performance standby letters of credit 1,625 1,544 $ 137,427 $ 147,432 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Each instrument generally has fixed expiration dates or other termination clauses. Since many of the instruments are expected to expire without being drawn upon, total commitments to extend credit amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, by the Company upon extension of credit is based on management’s credit evaluation of the customer. Standby letters of credit are irrevocable conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. |
Significant Estimates and Conce
Significant Estimates and Concentrations | 9 Months Ended |
Sep. 30, 2018 | |
Significant Estimates and Concentrations [Abstract] | |
Significant Estimates and Concentrations | Note 16: Significant Estimates and Concentrations GAAP requires disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for loan losses are reflected in Note 5 Note 15 As of September 30, 2018, hospitality loans were 23% of gross total loans with outstanding balances of $133.8 million and unfunded commitments of $32.4 million; energy loans were 21% of gross total loans with outstanding balances of $121.0 million and unfunded commitments of $29.4 million. |
Operating Leases
Operating Leases | 9 Months Ended |
Sep. 30, 2018 | |
Operating Leases [Abstract] | |
Operating Leases | Note 17: Operating Leases The Company leases certain of its branch facilities and office equipment under operating leases. Rental expense for these leases was $114,000 and $98,000 for the three months ended September 30, 2018 and 2017, respectively. Rental expense for these leases for the nine months ended September 30, 2018 and 2017 totaled $341,000 and $336,000, respectively. Future minimum rental commitments of branch facilities and office equipment due under non-cancelable operating leases at September 30, 2018, were as follows (dollars in thousands): 2018 $ 114 2019 456 2020 349 2021 203 Thereafter 47 $ 1,169 |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Nature of Operations and Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements contained herein reflect all adjustments which are, in the opinion of management, necessary to provide a fair statement of the financial position, results of operations, and cash flows of the Company for the interim periods presented. All such adjustments are of a normal and recurring nature. There have been no significant changes in the accounting policies of the Company since December 31, 2017, the date of the prospectus. The information contained in the financial statements and footnotes included in Company’s prospectus for the year ended December 31, 2017, should be referred to in connection with these unaudited interim consolidated financial statements. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, the Bank and its subsidiary, 1039 NW 63 rd |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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, valuation of other real estate owned, other-than-temporary impairments and fair values of financial instruments. |
Cash Equivalents | Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. |
Interest-Bearing Time Deposits in Other Banks | Interest-Bearing Time Deposits in Other Banks Interest-bearing time deposits in other banks totaled $29.8 million and $30.2 million at September 30, 2018 and December 31, 2017, respectively, and have original maturities generally ranging from one to five years. |
Securities | Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Securities not classified as held-to-maturity or trading, including equity securities with readily determinable fair values, are classified as “available-for-sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. For debt securities with fair value below amortized cost when the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. The Company had no “available-for-sale” or held to maturity investments as of September 30, 2018 and December 31, 2017. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized over the respective term of the loan. 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. 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. All interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Mortgage Loans Held for Sale | Mortgage Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon the sale of the loan. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay and estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows or collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers nonimpaired loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. 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. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral-dependent. Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. |
Premises and Equipment | Premises and Equipment Depreciable assets are stated at cost, less accumulated depreciation. Depreciation is charged to expense using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are capitalized and depreciated using the straight-line method over the terms of the estimated useful lives of the improvements. The estimated useful lives for each major depreciable classification of premises and equipment are as follows: Buildings and improvements 15–30 years Furniture and equipment 5–10 years Aircraft 5-7 years Automobiles 3–5 years |
Non-Marketable Equity Securities | Non-Marketable Equity Securities Non-marketable equity securities consist primarily of Federal Home Loan Bank of Topeka (FHLB) stock and Federal Reserve Bank of Kansas City stock and are required investments for financial institutions that are members of the FHLB and Federal Reserve systems. The required investment in common stock is based on a predetermined formula, carried at cost and evaluated for impairment. |
Long-Lived Asset Impairment | Long-Lived Asset Impairment The Company evaluates the recoverability of the carrying value of long-lived assets whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows is expected to result from the use and eventual disposition of the asset is less than the carrying amount of the asset, the asset cost is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value. No asset impairment was recognized during the three month and nine month periods ended September 30, 2018 and 2017. |
Foreclosed Assets Held for Sale | Foreclosed Assets Held for Sale Foreclosed assets held for sale consist of assets acquired through, or in lieu of, loan foreclosure and are initially recorded at fair value, less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount of fair value less costs to sell. Revenue and expenses from operations and changes in the valuation allowance are included in current operations. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is tested annually for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the accompanying consolidated financial statements. Other intangible assets consist of core deposit intangible assets and are amortized on a straight-line basis based on an estimated useful life of 10 years. Such assets are periodically evaluated as to the recoverability of their carrying values. |
Segments | Segments While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Discrete financial information is not available other than on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU supersedes and replaces nearly all existing revenue recognition guidance, including industry-specific guidance, and establishes a new control-based revenue recognition model for revenue from contracts with customers. The revenue line items in scope of this ASU have been identified and final assessment is pending; however, the majority of the Company’s financial instruments are not within the scope of Topic 606. Material revenue streams within the scope of Topic 606 include service charges on deposits. The guidance in the ASU is effective for reporting periods beginning after December 15, 2018. Management is still assessing the impact of this ASU; however, based on the revenue streams impacted, it is expected that it will not have a significant impact on the Company’s financial condition and results of operations. The Company will adopt this ASU in the first quarter of 2019. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU requires certain equity investments to be measured at fair value with changes recognized in net income. It also requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purpose and eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value disclosed for financial instruments measured at amortized cost. The guidance in the ASU is effective for reporting periods beginning after December 15, 2018. Management is still assessing the impact of this ASU; however, it is expected that it will not have a significant impact on the Company’s financial condition and results of operations. The Company will adopt this ASU in the first quarter of 2019. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The ASU requires lessees to recognize a lease liability and a right-of-use asset for all leases, excluding short-term leases, at the commencement date. The guidance in the ASU is effective for reporting periods beginning after December 15, 2019. Additionally, a modified retrospective transition approach is required for a leases existing at the earliest comparative period presented. Management is assessing the impact of this ASU; however, it is not expected to have a material impact on the Company’s financial condition, results of operation, or capital position, but will impact the presentation on the balance sheet of the Company’s current operating leases. The Company will adopt this ASU in the first quarter of 2020. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). The ASU requires the replacement of the current incurred loss model with an expected loss model, referred to as the current expected credit loss (CECL) model. The guidance in the ASU is effective for reporting periods beginning after December 15, 2020 with a cumulative-effect adjustment to retained earnings required for the first reporting period. Management is still assessing the impact of this ASU; however, it is expected that it will not have a significant impact on the Company’s financial condition and results of operations as this modifies the calculation of the allowance by accelerating the recognition of losses. The Company will adopt this ASU in the fourth quarter of 2021. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU amends existing guidance to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The guidance in the ASU is effective for reporting periods beginning after December 15, 2021 with prospective application. Management is still assessing the impact of this ASU; however, it is expected that it will not have a significant impact on the Company’s financial condition and results of operations. The Company will adopt this ASU in the first quarter of 2022. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Nature of Operations and Summary of Significant Accounting Policies [Abstract] | |
Estimated Useful Lives of Premises and Equipment | The estimated useful lives for each major depreciable classification of premises and equipment are as follows: Buildings and improvements 15–30 years Furniture and equipment 5–10 years Aircraft 5-7 years Automobiles 3–5 years |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Common Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following table shows the computation of basic and diluted earnings per share: For the three months ended September 30, For the nine months ended September 30, 2018 2017 2018 2017 (Dollars in thousands, except per share amounts) Numerator Net income $ 6,710 $ 5,950 $ 19,438 $ 19,221 Denominator Denominator for basic earnings per common share 7,634,239 7,287,500 7,404,350 7,287,500 Dilutive effect of stock compensation 35,109 - 11,832 - Denominator for diluted earnings per share 7,669,348 7,287,500 7,416,182 7,287,500 Earnings per common share Basic $ 0.88 $ 0.82 $ 2.63 $ 2.64 Diluted $ 0.87 $ 0.82 $ 2.62 $ 2.64 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Loans and Allowance for Loan Losses [Abstract] | |
Summary of Loans | A summary of loans at September 30, 2018 and December 31, 2017 are as follows (dollars in thousands): September 30, 2018 December 31, 2017 Real estate $ 328,876 $ 323,216 Commercial 229,480 205,229 Agricultural 25,963 33,760 Consumer 2,372 2,372 Gross loans 586,691 564,577 Less allowance for loan losses (7,728 ) (7,654 ) Less deferred loan fees (1,852 ) (1,576 ) Net loans $ 577,111 $ 555,347 |
Activity in Allowance for Loan Losses by Portfolio Segment | The following table presents, by portfolio segment, the activity in the allowance for loan losses for the three months ended September 30, 2018 and 2017 (dollars in thousands): Real Estate Commercial Agricultural Consumer Total September 30, 2018 Balance, beginning of period $ 4,337 $ 3,010 $ 324 $ 30 $ 7,701 Charge-offs (2 ) (12 ) - - (14 ) Recoveries 1 39 1 - 41 Net charge-offs (1 ) 27 1 - 27 Provision (credit) for loan losses (4 ) (14 ) 17 1 - Balance, end of period $ 4,332 $ 3,023 $ 342 $ 31 $ 7,728 Real Estate Commercial Agricultural Consumer Total September 30, 2017 Balance, beginning of period $ 4,017 $ 2,909 $ 442 $ 37 $ 7,405 Charge-offs - (55 ) - (14 ) (69 ) Recoveries 9 1 - - 10 Net charge-offs 9 (54 ) - (14 ) (59 ) Provision (credit) for loan losses 363 (267 ) 42 12 150 Balance, end of period $ 4,389 $ 2,588 $ 484 $ 35 $ 7,496 The following table presents, by portfolio segment, the activity in the allowance for loan losses for the nine months ended September 30, 2018 and 2017 (dollars in thousands): Real Estate Commercial Agricultural Consumer Total September 30, 2018 Balance, beginning of period $ 4,382 $ 2,782 $ 458 $ 32 $ 7,654 Charge-offs (28 ) (74 ) - - (101 ) Recoveries 5 69 1 1 75 Net charge-offs (23 ) (5 ) 1 1 (26 ) Provision (credit) for loan losses (27 ) 246 (117 ) (2 ) 100 Balance, end of period $ 4,332 $ 3,023 $ 342 $ 31 $ 7,728 Real Estate Commercial Agricultural Consumer Total September 30, 2017 Balance, beginning of period $ 3,754 $ 2,512 $ 537 $ 70 $ 6,873 Charge-offs (199 ) (295 ) - (13 ) (507 ) Recoveries 24 6 - 4 34 Net charge-offs (175 ) (289 ) - (9 ) (473 ) Provision (credit) for loan losses 810 365 (53 ) (26 ) 1,096 Balance, end of period $ 4,389 $ 2,588 $ 484 $ 35 $ 7,496 The following table presents, by portfolio segment, the balance in allowance for loan losses and the gross loans based upon portfolio segment and impairment method as of September 30, 2018 and December 31, 2017 (dollars in thousands). Real Estate Commercial Agricultural Consumer Total September 30, 2018 Allowance Balance Ending balance individually evaluated for impairment $ - $ 14 $ - $ 1 $ 15 Collectively evaluated for impairment 4,332 3,009 342 30 7,713 Total $ 4,332 $ 3,023 $ 342 $ 31 $ 7,728 Gross Loans Ending balance individually evaluated for impairment $ 1,563 $ 8,051 $ - $ 4 $ 9,618 Collectively evaluated for impairment 327,313 221,429 25,963 2,368 577,073 Total $ 328,876 $ 229,480 $ 25,963 $ 2,372 $ 586,691 December 31, 2017 Allowance Balance Ending balance individually evaluated for impairment $ 300 $ 22 $ 64 $ 10 $ 396 Collectively evaluated for impairment 4,082 2,760 394 22 7,258 Total $ 4,382 $ 2,782 $ 458 $ 32 $ 7,654 Gross Loans Ending balance individually evaluated for impairment $ 1,517 $ 1,031 $ 1,893 $ 15 $ 4,456 Collectively evaluated for impairment 321,699 204,198 31,867 2,357 560,121 Total $ 323,216 $ 205,229 $ 33,760 $ 2,372 $ 564,577 |
Loan Portfolio Based on Internal Rating Category | The following table presents the credit risk profile of the Company’s loan portfolio based on internal rating category as of September 30, 2018 and December 31, 2017 (dollars in thousands): Real Estate Commercial Agricultural Consumer Total September 30, 2018 Grade 1 (Pass) $ 308,141 $ 216,959 $ 25,079 $ 2,368 $ 552,547 2 (Watch) 15,594 4,470 623 - 20,687 3 (Special Mention) 3,578 - 261 - 3,839 4 (Substandard) 1,563 8,051 - 4 9,618 Total $ 328,876 $ 229,480 $ 25,963 $ 2,372 $ 586,691 Real Estate Commercial Agricultural Consumer Total December 31, 2017 Grade 1 (Pass) $ 296,828 $ 192,287 $ 31,676 $ 2,358 $ 523,149 2 (Watch) 17,744 7,764 90 - 25,598 3 (Special Mention) 7,126 4,147 101 - 11,374 4 (Substandard) 1,518 1,031 1,893 14 4,456 Total $ 323,216 $ 205,229 $ 33,760 $ 2,372 $ 564,577 |
Loan Portfolio Aging Analysis of Recorded Investment in Loans | The following table presents the Company’s loan portfolio aging analysis of the recorded investment in loans as of September 30, 2018 and December 31, 2017 (dollars in thousands): Past Due Total Loans > 90 Days & Accruing 30–59 Days 60–89 Days Greater than 90 Days Total Current Total September 30, 2018 Real estate $ 89 $ - $ - $ 89 $ 328,787 $ 328,876 $ - Commercial - 208 - 208 229,272 229,480 - Agricultural - - - - 25,963 25,963 - Consumer - - - - 2,372 2,372 - Total $ 89 $ 208 $ - $ 297 $ 586,394 $ 586,691 $ - December 31, 2017 Real estate $ 47 $ - $ 111 $ 158 $ 323,058 $ 323,216 $ - Commercial 2 - - 2 205,227 205,229 - Agricultural - - - - 33,760 33,760 - Consumer 7 - - 7 2,365 2,372 - Total $ 56 $ - $ 111 $ 167 $ 564,410 $ 564,577 $ - |
Impaired Loans | The following table presents impaired loans as of September 30, 2018 and December 31, 2017 (dollars in thousands): Unpaid Principal Balance Recorded Investment with No Allowance Recorded Investment with an Allowance Total Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 September 30, 2018 Real estate $ 1,563 $ 1,563 $ - $ 1,563 $ - $ 1,538 $ 31 $ 1,717 $ 89 Commercial 8,271 8,024 27 8,051 14 8,231 141 6,933 425 Agricultural - - - - - - - 197 - Consumer 9 - 4 4 1 5 - 8 1 Total $ 9,843 $ 9,587 $ 31 $ 9,618 $ 15 $ 9,774 $ 172 $ 8,855 $ 515 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 December 31, 2017 Real estate $ 1,525 $ 355 $ 675 $ 1,031 $ 300 $ 2,048 $ 47 $ 3,060 $ 136 Commercial 1,207 1,477 41 1,517 22 1,255 21 3,991 83 Agricultural 1,908 1,604 290 1,893 64 1,819 113 1,610 96 Consumer 19 - 15 15 10 19 1 23 1 Total $ 4,659 $ 3,436 $ 1,021 $ 4,456 $ 396 $ 5,141 $ 182 $ 8,684 $ 316 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | Major classifications of premises and equipment, stated at cost and net of accumulated depreciation are as follows (dollars in thousands): September 30, 2018 December 31, 2017 Land, buildings and improvements $ 8,282 $ 8,225 Furniture and equipment 1,622 1,554 Aircraft - 2,083 Automobiles 782 699 10,686 12,561 Less accumulated depreciation (2,919 ) (2,959 ) Net premises and equipment $ 7,767 $ 9,602 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Intangible Assets [Abstract] | |
Gross Carrying Amount and Accumulated Amortization of Recognized Intangible Assets | The gross carrying amount and accumulated amortization of recognized intangible assets at September 30, 2018 and December 31, 2017 were (dollars in thousands): September 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Core deposit intangible $ 2,061 $ (1,025 ) $ 2,061 $ (871 ) |
Amortization Expense for Intangible Assets | Estimated amortization expense for each of the following five years is as follows (dollars in thousands): 2018 $ 52 2019 206 2020 206 2021 206 2022 206 Thereafter 160 $ 1,036 |
Interest-Bearing Deposits (Tabl
Interest-Bearing Deposits (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Interest-Bearing Deposits [Abstract] | |
Scheduled Maturities of Interest-Bearing Time Deposits | At September 30, 2018, the scheduled maturities of interest-bearing time deposits were as follows (dollars in thousands): 2018 $ 34,595 2019 145,733 2020 19,738 Thereafter 3,664 $ 203,730 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Regulatory Matters [Abstract] | |
Actual Capital Amounts and Ratios | The Bank’s actual capital amounts and ratios are presented in the following table (dollars in thousands): Actual Minimum Capital Requirements Minimum To Be Well Capitalized Under Prompt Corrective Action Amount Ratio Amount Ratio Amount Ratio As of September 30, 2018 Total capital (to risk-weighted assets) $ 87,915 15.11 % $ 46,544 8.00 % $ 58,180 10.00 % Tier I capital (to risk-weighted assets) $ 80,646 13.86 % $ 34,908 6.00 % $ 46,544 8.00 % Common Equity Tier I capital (to risk-weighted assets) $ 80,646 13.86 % $ 26,181 4.50 % $ 37,817 6.50 % Tier I capital (to average assets) $ 80,646 10.90 % $ 29,606 4.00 % $ 37,007 5.00 % As of December 31, 2017 Total capital (to risk-weighted assets) $ 79,740 13.83 % $ 46,123 8.00 % $ 57,654 10.00 % Tier I capital (to risk-weighted assets) $ 72,528 12.58 % $ 34,593 6.00 % $ 46,123 8.00 % Common Equity Tier I capital (to risk-weighted assets) $ 72,528 12.58 % $ 25,944 4.50 % $ 37,475 6.50 % Tier I capital (to average assets) $ 72,528 10.53 % $ 27,549 4.00 % $ 34,436 5.00 % The transition schedule for new ratios, including the capital conservation buffer, is as follows: As of January 1: 2015 2016 2017 2018 2019 Capital conservation buffer 0.00 % 0.625 % 1.25 % 1.875 % 2.50 % Minimum total capital plus capital conservation buffer 8.00 % 8.625 % 9.25 % 9.875 % 10.50 % Minimum Tier 1 capital plus capital conservation buffer 6.00 % 6.625 % 7.25 % 7.875 % 8.50 % Minimum Common Equity Tier 1 capital plus capital conservation buffer 4.50 % 5.125 % 5.75 % 6.375 % 7.00 % A summary of payout restrictions based on the capital conservation buffer is as follows: Capital Conservation Buffer (as a % of risk-weighted assets) Maximum Payout (as a % of eligible retained income) Greater than 2.5% No payout limitations applies ≤2.5% and >1.875% 60 % ≤1.875% and >1.25% 40 % ≤1.25% and >0.625% 20 % ≤0.625% 0 % |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related-Party Transactions [Abstract] | |
Summary of Loans | A summary of these loans is as follows (dollars in thousands): Balance Beginning of the Period Additions Collections/ Terminations Balance End of the Period For the nine months ended September 30, 2018 $ 6,684 $ 6,738 $ (2,831 ) $ 10,591 Year ended December 31, 2017 $ 3,446 $ 3,684 $ (446 ) $ 6,684 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Employee Benefits [Abstract] | |
Stock Options Activity | The following table is a summary of the stock option activity under the Bank7 Corp. 2018 Equity Incentive Plan (dollar amounts in thousands, except per share data): Options Wgtd. Avg. Exercise Price Wgtd. Avg. Remaining Contractual Term Aggregate Intrinsic Value Nine Months Ended September 30, 2018 Options Granted 150,000 $ 19.00 Options Exercised - - Outstanding at September 30, 2018 150,000 $ 19.00 9.97 Yrs $ 38 Exercisable at September 30, 2018 - - - |
Weighted-Average Inputs and Risk-Free Rate of Return Ranges used to Calculate Grant Date Fair Value of Options | The following table shows the assumptions used for computing stock-based compensation expense under the fair value method on options granted during the periods presented: Three Months Ended September 30, 2018 Risk-free interest rate 2.69 % Dividend yield 2.20 % Stock price volatility 13.70 % Expected term 4 yrs |
Restricted Stock Units | The following table summarizes share information about RSUs for the nine months ended September 30, 2018: Number of Shares Wgtd. Avg. Grant Date Fair Value Shares granted 130,000 $ 19.00 Shares settled - - Shares forfeited - - End of the period balance 130,000 $ 19.00 |
Disclosures About Fair Value _2
Disclosures About Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosures About Fair Value of Assets and Liabilities [Abstract] | |
Assets Measured at Fair Value on Nonrecurring Basis | The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2018 and December 31, 2017 (dollars in thousands): Fair Value (Level 1) (Level 2) (Level 3) September 30, 2018 Impaired loans (collateral- dependent) $ 31 $ - $ - $ 31 Foreclosed assets held for sale $ 110 $ - $ - $ 110 December 31, 2017 Impaired loans (collateral- dependent) $ 1,021 $ - $ - $ 1,021 Foreclosed assets held for sale $ 100 $ - $ - $ 100 |
Estimated Fair Value of Financial Instruments not Recorded at Fair Value | The following tables presents estimated fair values of the Company’s financial instruments not recorded at fair value at September 30, 2018 and December 31, 2017 (dollars in thousands): Carrying Fair Value Measurements Amount Level 1 Level 2 Level 3 Total September 30, 2018 Financial Assets Cash and due from banks $ 127,248 $ 127,248 $ - $ - $ 127,248 Interest-bearing time deposits in other banks $ 29,767 $ - $ 29,775 $ - $ 29,775 Loans, net of allowance $ 577,111 $ - $ 576,787 $ 31 $ 576,818 Nonmarketable equity securities $ 1,055 $ - $ 1,055 $ - $ 1,055 Interest receivable $ 4,460 $ - $ 4,460 $ - $ 4,460 Financial Liabilities Deposits $ 664,313 $ - $ 663,255 $ - $ 663,255 Interest payable $ 560 $ - $ 560 $ - $ 560 December 31, 2017 Financial Assets Cash and due from banks $ 100,054 $ 100,054 $ - $ - $ 100,054 Interest-bearing time deposits in other banks $ 30,168 $ - $ 30,176 $ - $ 30,176 Loans, net of allowance $ 555,347 $ - $ 553,875 $ 1,021 $ 554,896 Mortgage loans held for sale $ 388 $ - $ 388 $ - $ 388 Nonmarketable equity securities $ 1,049 $ - $ 1,049 $ - $ 1,049 Interest receivable $ 3,674 $ - $ 3,674 $ - $ 3,674 Financial Liabilities Deposits $ 625,831 $ - $ 624,855 $ - $ 624,855 Borrowings $ 5,600 $ - $ 5,600 $ - $ 5,600 Interest payable $ 404 $ - $ 404 $ - $ 404 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Financial Instruments with Off-Balance Sheet Risk [Abstract] | |
Financial Instruments with Contract Amounts Representing Credit Risk | The following summarizes those financial instruments with contract amounts representing credit risk as of September 30, 2018 and December 31, 2017 (dollars in thousands): September 30, 2018 December 31, 2017 Commitments to extend credit $ 135,802 $ 145,888 Financial and performance standby letters of credit 1,625 1,544 $ 137,427 $ 147,432 |
Operating Leases (Tables)
Operating Leases (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Operating Leases [Abstract] | |
Future Minimum Rental Commitments Non-Cancelable Operating Leases | Future minimum rental commitments of branch facilities and office equipment due under non-cancelable operating leases at September 30, 2018, were as follows (dollars in thousands): 2018 $ 114 2019 456 2020 349 2021 203 Thereafter 47 $ 1,169 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Segment | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Interest-Bearing Time Deposits in Other Banks [Abstract] | |||||
Interest-bearing time deposits in other banks | $ 29,767 | $ 29,767 | $ 30,168 | ||
Securities [Abstract] | |||||
Securities, available-for-sale | 0 | 0 | 0 | ||
Securities, held to maturity | 0 | 0 | $ 0 | ||
Long-Lived Asset Impairment [Abstract] | |||||
Asset impairment charges | $ 0 | $ 0 | $ 0 | $ 0 | |
Segments [Abstract] | |||||
Number of reportable segment | Segment | 1 | ||||
Minimum [Member] | |||||
Interest-Bearing Time Deposits in Other Banks [Abstract] | |||||
Maturity period of interest bearing time deposits | 1 year | ||||
Maximum [Member] | |||||
Interest-Bearing Time Deposits in Other Banks [Abstract] | |||||
Maturity period of interest bearing time deposits | 5 years | ||||
Buildings and Improvements [Member] | Minimum [Member] | |||||
Estimated Useful Lives of Premises and Equipment [Abstract] | |||||
Estimated useful life | 15 years | ||||
Buildings and Improvements [Member] | Maximum [Member] | |||||
Estimated Useful Lives of Premises and Equipment [Abstract] | |||||
Estimated useful life | 30 years | ||||
Furniture and Equipment [Member] | Minimum [Member] | |||||
Estimated Useful Lives of Premises and Equipment [Abstract] | |||||
Estimated useful life | 5 years | ||||
Furniture and Equipment [Member] | Maximum [Member] | |||||
Estimated Useful Lives of Premises and Equipment [Abstract] | |||||
Estimated useful life | 10 years | ||||
Aircraft [Member] | Minimum [Member] | |||||
Estimated Useful Lives of Premises and Equipment [Abstract] | |||||
Estimated useful life | 5 years | ||||
Aircraft [Member] | Maximum [Member] | |||||
Estimated Useful Lives of Premises and Equipment [Abstract] | |||||
Estimated useful life | 7 years | ||||
Automobiles [Member] | Minimum [Member] | |||||
Estimated Useful Lives of Premises and Equipment [Abstract] | |||||
Estimated useful life | 3 years | ||||
Automobiles [Member] | Maximum [Member] | |||||
Estimated Useful Lives of Premises and Equipment [Abstract] | |||||
Estimated useful life | 5 years | ||||
Core Deposits [Member] | |||||
Goodwill and Intangible Assets [Abstract] | |||||
Estimated useful life | 10 years |
Change in Capital Structure (De
Change in Capital Structure (Details) $ / shares in Units, $ in Thousands | Sep. 24, 2018USD ($)$ / sharesshares | Jul. 06, 2018 | Sep. 30, 2018USD ($)$ / sharesshares | Jun. 26, 2018$ / sharesshares | Dec. 31, 2017$ / sharesshares |
Change in Capital Structure [Abstract] | |||||
Common stock, shares authorized (in shares) | shares | 50,000,000 | 50,000,000 | 50,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||
Preferred stock, shares authorized (in shares) | shares | 1,000,000 | 1,000,000 | 1,000,000 | ||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||
Stock split ratio | 24 | ||||
Deferred tax assets tax (benefit) | $ | $ (731) | ||||
Initial Public Offering [Member] | |||||
Change in Capital Structure [Abstract] | |||||
Sold and issued shares of common stock (in shares) | shares | 2,900,000 | ||||
Common stock price per share (in dollars per share) | $ / shares | $ 19 | ||||
Net proceeds from initial public offering | $ | $ 50,100 | ||||
Non-voting Common Stock [Member] | |||||
Change in Capital Structure [Abstract] | |||||
Common stock, shares authorized (in shares) | shares | 20,000,000 | 20,000,000 | 20,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 |
Restriction on Cash and Due f_2
Restriction on Cash and Due from Banks (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Restriction on Cash and Due from Banks [Abstract] | |
Reserve funds to be maintained with Federal Reserve Bank | $ 16,400 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator [Abstract] | ||||
Net income | $ 6,710 | $ 5,950 | $ 19,438 | $ 19,221 |
Denominator [Abstract] | ||||
Denominator for basic earnings per common share (in shares) | 7,634,239 | 7,287,500 | 7,404,350 | 7,287,500 |
Dilutive effect of stock compensation (in shares) | 35,109 | 0 | 11,832 | 0 |
Denominator for diluted earnings per share (in shares) | 7,669,348 | 7,287,500 | 7,416,182 | 7,287,500 |
Earnings per common share [Abstract] | ||||
Basic (in dollars per share) | $ 0.88 | $ 0.82 | $ 2.63 | $ 2.64 |
Diluted (in dollars per share) | $ 0.87 | $ 0.82 | $ 2.62 | $ 2.64 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses, Summary of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Summary of loans [Abstract] | ||||||
Gross loans | $ 586,691 | $ 564,577 | ||||
Less allowance for loan losses | (7,728) | $ (7,701) | (7,654) | $ (7,496) | $ (7,405) | $ (6,873) |
Less deferred loan fees | (1,852) | (1,576) | ||||
Net loans | 577,111 | 555,347 | ||||
Real Estate [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 328,876 | 323,216 | ||||
Less allowance for loan losses | (4,332) | (4,337) | (4,382) | (4,389) | (4,017) | (3,754) |
Commercial [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 229,480 | 205,229 | ||||
Less allowance for loan losses | (3,023) | (3,010) | (2,782) | (2,588) | (2,909) | (2,512) |
Agricultural [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 25,963 | 33,760 | ||||
Less allowance for loan losses | (342) | (324) | (458) | (484) | (442) | (537) |
Consumer [Member] | ||||||
Summary of loans [Abstract] | ||||||
Gross loans | 2,372 | 2,372 | ||||
Less allowance for loan losses | $ (31) | $ (30) | $ (32) | $ (35) | $ (37) | $ (70) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses, Activity in Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Dec. 31, 2017 | |
Activity in allowance for loan losses [Roll Forward] | ||||||
Balance, beginning of period | $ 7,701 | $ 7,405 | $ 7,654 | $ 6,873 | ||
Charge-offs | (14) | (69) | (101) | (507) | ||
Recoveries | 41 | 10 | 75 | 34 | ||
Net charge-offs | 27 | (59) | (26) | (473) | ||
Provision (credit) for loan losses | 0 | 150 | 100 | 1,096 | ||
Balance, end of period | 7,728 | 7,496 | 7,728 | 7,496 | ||
Allowance Balance [Abstract] | ||||||
Ending balance, individually evaluated for impairment | $ 15 | $ 396 | ||||
Ending balance, Collectively evaluated for impairment | 7,713 | 7,258 | ||||
Total | 7,728 | 7,405 | 7,728 | 6,873 | 7,728 | 7,654 |
Gross Loans [Abstract] | ||||||
Ending balance, individually evaluated for impairment | 9,618 | 4,456 | ||||
Ending balance, Collectively evaluated for impairment | 577,073 | 560,121 | ||||
Total | 586,691 | 564,577 | ||||
Real Estate [Member] | ||||||
Activity in allowance for loan losses [Roll Forward] | ||||||
Balance, beginning of period | 4,337 | 4,017 | 4,382 | 3,754 | ||
Charge-offs | (2) | 0 | (28) | (199) | ||
Recoveries | 1 | 9 | 5 | 24 | ||
Net charge-offs | (1) | 9 | (23) | (175) | ||
Provision (credit) for loan losses | (4) | 363 | (27) | 810 | ||
Balance, end of period | 4,332 | 4,389 | 4,332 | 4,389 | ||
Allowance Balance [Abstract] | ||||||
Ending balance, individually evaluated for impairment | 0 | 300 | ||||
Ending balance, Collectively evaluated for impairment | 4,332 | 4,082 | ||||
Total | 4,337 | 4,017 | 4,382 | 3,754 | 4,332 | 4,382 |
Gross Loans [Abstract] | ||||||
Ending balance, individually evaluated for impairment | 1,563 | 1,517 | ||||
Ending balance, Collectively evaluated for impairment | 327,313 | 321,699 | ||||
Total | 328,876 | 323,216 | ||||
Commercial [Member] | ||||||
Activity in allowance for loan losses [Roll Forward] | ||||||
Balance, beginning of period | 3,010 | 2,909 | 2,782 | 2,512 | ||
Charge-offs | (12) | (55) | (74) | (295) | ||
Recoveries | 39 | 1 | 69 | 6 | ||
Net charge-offs | 27 | (54) | (5) | (289) | ||
Provision (credit) for loan losses | (14) | (267) | 246 | 365 | ||
Balance, end of period | 3,023 | 2,588 | 3,023 | 2,588 | ||
Allowance Balance [Abstract] | ||||||
Ending balance, individually evaluated for impairment | 14 | 22 | ||||
Ending balance, Collectively evaluated for impairment | 3,009 | 2,760 | ||||
Total | 3,010 | 2,909 | 2,782 | 2,512 | 3,023 | 2,782 |
Gross Loans [Abstract] | ||||||
Ending balance, individually evaluated for impairment | 8,051 | 1,031 | ||||
Ending balance, Collectively evaluated for impairment | 221,429 | 204,198 | ||||
Total | 229,480 | 205,229 | ||||
Agricultural [Member] | ||||||
Activity in allowance for loan losses [Roll Forward] | ||||||
Balance, beginning of period | 324 | 442 | 458 | 537 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 1 | 0 | 1 | 0 | ||
Net charge-offs | 1 | 0 | 1 | 0 | ||
Provision (credit) for loan losses | 17 | 42 | (117) | (53) | ||
Balance, end of period | 342 | 484 | 342 | 484 | ||
Allowance Balance [Abstract] | ||||||
Ending balance, individually evaluated for impairment | 0 | 64 | ||||
Ending balance, Collectively evaluated for impairment | 342 | 394 | ||||
Total | 324 | 442 | 458 | 537 | 342 | 458 |
Gross Loans [Abstract] | ||||||
Ending balance, individually evaluated for impairment | 0 | 1,893 | ||||
Ending balance, Collectively evaluated for impairment | 25,963 | 31,867 | ||||
Total | 25,963 | 33,760 | ||||
Consumer [Member] | ||||||
Activity in allowance for loan losses [Roll Forward] | ||||||
Balance, beginning of period | 30 | 37 | 32 | 70 | ||
Charge-offs | 0 | (14) | 0 | (13) | ||
Recoveries | 0 | 0 | 1 | 4 | ||
Net charge-offs | 0 | (14) | 1 | (9) | ||
Provision (credit) for loan losses | 1 | 12 | (2) | (26) | ||
Balance, end of period | 31 | 35 | 31 | 35 | ||
Allowance Balance [Abstract] | ||||||
Ending balance, individually evaluated for impairment | 1 | 10 | ||||
Ending balance, Collectively evaluated for impairment | 30 | 22 | ||||
Total | $ 30 | $ 37 | $ 32 | $ 70 | 31 | 32 |
Gross Loans [Abstract] | ||||||
Ending balance, individually evaluated for impairment | 4 | 15 | ||||
Ending balance, Collectively evaluated for impairment | 2,368 | 2,357 | ||||
Total | $ 2,372 | $ 2,372 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses, Loan Portfolio Based on Internal Rating Category (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | $ 586,691 | $ 564,577 |
1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 552,547 | 523,149 |
2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 20,687 | 25,598 |
3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 3,839 | 11,374 |
4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 9,618 | 4,456 |
Real Estate [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 328,876 | 323,216 |
Real Estate [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 308,141 | 296,828 |
Real Estate [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 15,594 | 17,744 |
Real Estate [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 3,578 | 7,126 |
Real Estate [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 1,563 | 1,518 |
Commercial [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 229,480 | 205,229 |
Commercial [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 216,959 | 192,287 |
Commercial [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 4,470 | 7,764 |
Commercial [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 4,147 |
Commercial [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 8,051 | 1,031 |
Agricultural [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 25,963 | 33,760 |
Agricultural [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 25,079 | 31,676 |
Agricultural [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 623 | 90 |
Agricultural [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 261 | 101 |
Agricultural [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 1,893 |
Consumer [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 2,372 | 2,372 |
Consumer [Member] | 1 (Pass) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 2,368 | 2,358 |
Consumer [Member] | 2 (Watch) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
Consumer [Member] | 3 (Special Mention) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | 0 | 0 |
Consumer [Member] | 4 (Substandard) [Member] | ||
Loans Portfolio based on Internal Rating [Abstract] | ||
Gross loans | $ 4 | $ 14 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses, Loan Portfolio Aging Analysis of Recorded Investment in Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | $ 297 | $ 167 |
Current | 586,394 | 564,410 |
Total | 586,691 | 564,577 |
Total Loans > 90 Days & Accruing | 0 | 0 |
30-59 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 89 | 56 |
60-89 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 208 | 0 |
Greater than 90 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 111 |
Real Estate [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 89 | 158 |
Current | 328,787 | 323,058 |
Total | 328,876 | 323,216 |
Total Loans > 90 Days & Accruing | 0 | 0 |
Real Estate [Member] | 30-59 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 89 | 47 |
Real Estate [Member] | 60-89 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
Real Estate [Member] | Greater than 90 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 111 |
Commercial [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 208 | 2 |
Current | 229,272 | 205,227 |
Total | 229,480 | 205,229 |
Total Loans > 90 Days & Accruing | 0 | 0 |
Commercial [Member] | 30-59 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 2 |
Commercial [Member] | 60-89 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 208 | 0 |
Commercial [Member] | Greater than 90 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
Agricultural [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
Current | 25,963 | 33,760 |
Total | 25,963 | 33,760 |
Total Loans > 90 Days & Accruing | 0 | 0 |
Agricultural [Member] | 30-59 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
Agricultural [Member] | 60-89 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
Agricultural [Member] | Greater than 90 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
Consumer [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 7 |
Current | 2,372 | 2,365 |
Total | 2,372 | 2,372 |
Total Loans > 90 Days & Accruing | 0 | 0 |
Consumer [Member] | 30-59 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 7 |
Consumer [Member] | 60-89 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | 0 | 0 |
Consumer [Member] | Greater than 90 Days [Member] | ||
Loan Portfolio Aging Analysis of Recorded Investment [Abstract] | ||
Past due | $ 0 | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses, Impaired Loans and TDR's (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Impaired Loans [Abstract] | |||||
Unpaid principal balance | $ 9,843 | $ 9,843 | $ 4,659 | ||
Recorded investment with no allowance | 9,587 | 9,587 | 3,436 | ||
Recorded investment with an allowance | 31 | 31 | 1,021 | ||
Total recorded investment | 9,618 | 9,618 | 4,456 | ||
Related allowance | 15 | 15 | 396 | ||
Average recorded investment | 9,774 | $ 5,141 | 8,855 | $ 8,684 | |
Interest income recognized | 172 | 182 | 515 | 316 | |
Troubled Debt Restructurings [Abstract] | |||||
TDR's loans impaired | 0 | 0 | 0 | 0 | |
Troubled debt restructurings modified in three months that subsequently defaulted | 0 | ||||
Real Estate [Member] | |||||
Impaired Loans [Abstract] | |||||
Unpaid principal balance | 1,563 | 1,563 | 1,525 | ||
Recorded investment with no allowance | 1,563 | 1,563 | 355 | ||
Recorded investment with an allowance | 0 | 0 | 675 | ||
Total recorded investment | 1,563 | 1,563 | 1,031 | ||
Related allowance | 0 | 0 | 300 | ||
Average recorded investment | 1,538 | 2,048 | 1,717 | 3,060 | |
Interest income recognized | 31 | 47 | 89 | 136 | |
Commercial [Member] | |||||
Impaired Loans [Abstract] | |||||
Unpaid principal balance | 8,271 | 8,271 | 1,207 | ||
Recorded investment with no allowance | 8,024 | 8,024 | 1,477 | ||
Recorded investment with an allowance | 27 | 27 | 41 | ||
Total recorded investment | 8,051 | 8,051 | 1,517 | ||
Related allowance | 14 | 14 | 22 | ||
Average recorded investment | 8,231 | 1,255 | 6,933 | 3,991 | |
Interest income recognized | 141 | 21 | 425 | 83 | |
Troubled Debt Restructurings [Abstract] | |||||
TDR's loans impaired | 950 | 950 | 1,500 | ||
Agricultural [Member] | |||||
Impaired Loans [Abstract] | |||||
Unpaid principal balance | 0 | 0 | 1,908 | ||
Recorded investment with no allowance | 0 | 0 | 1,604 | ||
Recorded investment with an allowance | 0 | 0 | 290 | ||
Total recorded investment | 0 | 0 | 1,893 | ||
Related allowance | 0 | 0 | 64 | ||
Average recorded investment | 0 | 1,819 | 197 | 1,610 | |
Interest income recognized | 0 | 113 | 0 | 96 | |
Consumer [Member] | |||||
Impaired Loans [Abstract] | |||||
Unpaid principal balance | 9 | 9 | 19 | ||
Recorded investment with no allowance | 0 | 0 | 0 | ||
Recorded investment with an allowance | 4 | 4 | 15 | ||
Total recorded investment | 4 | 4 | 15 | ||
Related allowance | 1 | 1 | $ 10 | ||
Average recorded investment | 5 | 19 | 8 | 23 | |
Interest income recognized | $ 0 | $ 1 | $ 1 | $ 1 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Premises and equipment [Abstract] | ||
Gross premises and equipment | $ 10,686 | $ 12,561 |
Less accumulated depreciation | (2,919) | (2,959) |
Premises and equipment, net | 7,767 | 9,602 |
Land, Buildings and Improvements [Member] | ||
Premises and equipment [Abstract] | ||
Gross premises and equipment | 8,282 | 8,225 |
Furniture and Equipment [Member] | ||
Premises and equipment [Abstract] | ||
Gross premises and equipment | 1,622 | 1,554 |
Aircraft [Member] | ||
Premises and equipment [Abstract] | ||
Gross premises and equipment | 0 | 2,083 |
Automobiles [Member] | ||
Premises and equipment [Abstract] | ||
Gross premises and equipment | $ 782 | $ 699 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Intangible Assets, Gross [Abstract] | |||||
Amortization expense | $ 52 | $ 52 | $ 155 | $ 155 | |
Estimated Amortization Expenses [Abstract] | |||||
2,018 | 52 | 52 | |||
2,019 | 206 | 206 | |||
2,020 | 206 | 206 | |||
2,021 | 206 | 206 | |||
2,022 | 206 | 206 | |||
Thereafter | 160 | 160 | |||
Total | 1,036 | 1,036 | |||
Core Deposit Intangible [Member] | |||||
Intangible Assets, Gross [Abstract] | |||||
Gross Carrying Amount | 2,061 | 2,061 | $ 2,061 | ||
Accumulated Amortization | $ (1,025) | $ (1,025) | $ (871) |
Interest-Bearing Deposits (Deta
Interest-Bearing Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Interest-Bearing Deposits [Abstract] | ||
Interest bearing time deposits in denominations of $250,000 or more | $ 57,300 | $ 58,700 |
Scheduled maturities of interest-bearing time deposits [Abstract] | ||
2,018 | 34,595 | |
2,019 | 145,733 | |
2,020 | 19,738 | |
Thereafter | 3,664 | |
Time Deposits | 203,730 | |
CDARS deposits | $ 35,100 | $ 86,500 |
Letters of Credit (Details)
Letters of Credit (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Letters of Credit [Abstract] | ||
Outstanding letters of credit | $ 24,600 | $ 25,300 |
Loans pledged as collateral | $ 61,100 |
Advances and Borrowings (Detail
Advances and Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Advances and Borrowings [Abstract] | ||
Maximum borrowing capacity | $ 37,300 | |
Advances from FHLB | 0 | $ 0 |
Debt outstanding | $ 0 | $ 5,600 |
Regulatory Matters, Actual Capi
Regulatory Matters, Actual Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Regulatory Matters [Abstract] | ||
Total capital (to risk-weighted assets), actual amount | $ 87,915 | $ 79,740 |
Total capital (to risk-weighted assets), actual ratio | 15.11% | 13.83% |
Total capital (to risk-weighted assets), minimum capital requirements amount | $ 46,544 | $ 46,123 |
Total capital (to risk-weighted assets), minimum capital requirements ratio | 8.00% | 8.00% |
Total capital (to risk-weighted assets), minimum to be well capitalized under prompt corrective action amount | $ 58,180 | $ 57,654 |
Total capital (to risk-weighted assets), minimum to be well capitalized under prompt corrective action ratio | 10.00% | 10.00% |
Tier I capital (to risk-weighted assets), actual amount | $ 80,646 | $ 72,528 |
Tier I capital (to risk-weighted assets), actual ratio | 13.86% | 12.58% |
Tier I capital (to risk-weighted assets), minimum capital requirements amount | $ 34,908 | $ 34,593 |
Tier I capital (to risk-weighted assets), minimum capital requirements ratio | 6.00% | 6.00% |
Tier I capital (to risk-weighted assets), minimum to be well capitalized under prompt corrective action amount | $ 46,544 | $ 46,123 |
Tier I capital (to risk-weighted assets), minimum to be well capitalized under prompt corrective action ratio | 8.00% | 8.00% |
Common Equity Tier I capital (to risk-weighted assets), actual amount | $ 80,646 | $ 72,528 |
Common Equity Tier I capital (to risk-weighted assets), actual ratio | 13.86% | 12.58% |
Common Equity Tier I capital (to risk-weighted assets), minimum capital requirements amount | $ 26,181 | $ 25,944 |
Common Equity Tier I capital (to risk-weighted assets), minimum capital requirements ratio | 4.50% | 4.50% |
Common Equity Tier I capital (to risk-weighted assets), minimum to be well capitalized under prompt corrective action amount | $ 37,817 | $ 37,475 |
Common Equity Tier I capital (to risk-weighted assets), minimum to be well capitalized under prompt corrective action ratio | 6.50% | 6.50% |
Tier I capital (to average assets), actual amount | $ 80,646 | $ 72,528 |
Tier I capital (to average assets), actual ratio | 10.90% | 10.53% |
Tier I capital (to average assets), minimum capital requirements amount | $ 29,606 | $ 27,549 |
Tier I capital (to average assets), minimum capital requirements ratio | 4.00% | 4.00% |
Tier I capital (to average assets), minimum to be well capitalized under prompt corrective action amount | $ 37,007 | $ 34,436 |
Tier I capital (to average assets), minimum to be well capitalized under prompt corrective action ratio | 5.00% | 5.00% |
Regulatory Matters, Capital Con
Regulatory Matters, Capital Conservation Buffer (Details) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Capital Conservation Buffer [Abstract] | |||||
Capital conservation buffer | 1.875% | 1.25% | 0.625% | 0.00% | |
Minimum total capital plus capital conservation buffer | 9.875% | 9.25% | 8.625% | 8.00% | |
Minimum Tier 1 capital plus capital conservation buffer | 7.875% | 7.25% | 6.625% | 6.00% | |
Minimum Common Equity Tier 1 capital plus capital conservation buffer | 6.375% | 5.75% | 5.125% | 4.50% | |
Forecast [Member] | |||||
Capital Conservation Buffer [Abstract] | |||||
Capital conservation buffer | 2.50% | ||||
Minimum total capital plus capital conservation buffer | 10.50% | ||||
Minimum Tier 1 capital plus capital conservation buffer | 8.50% | ||||
Minimum Common Equity Tier 1 capital plus capital conservation buffer | 7.00% |
Regulatory Matters, Payout Rest
Regulatory Matters, Payout Restrictions Based on Capital Conservation Buffer (Details) $ in Thousands | Sep. 30, 2018USD ($) | |
Payout Restrictions Based on Capital Conservation Buffer [Abstract] | ||
Retained earnings available for dividend declaration | $ 35,500 | |
Greater than 2.5% [Member] | ||
Payout Restrictions Based on Capital Conservation Buffer [Abstract] | ||
Maximum payout percentage | [1] | |
Less than or Equal to 2.5% and Greater than 1.875% [Member] | ||
Payout Restrictions Based on Capital Conservation Buffer [Abstract] | ||
Maximum payout percentage | 60.00% | |
Less than or Equal to 1.875% and Greater than 1.25% [Member] | ||
Payout Restrictions Based on Capital Conservation Buffer [Abstract] | ||
Maximum payout percentage | 40.00% | |
Less than or Equal to 1.25% and Greater than 0.625% [Member] | ||
Payout Restrictions Based on Capital Conservation Buffer [Abstract] | ||
Maximum payout percentage | 20.00% | |
Less than or Equal to 0.625% [Member] | ||
Payout Restrictions Based on Capital Conservation Buffer [Abstract] | ||
Maximum payout percentage | 0.00% | |
[1] | No payout limitations applies. |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) $ in Thousands | Sep. 28, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Summary of Loans [Roll Forward] | ||||||
Balance Beginning of the Period | $ 6,684 | $ 3,446 | $ 3,446 | |||
Additions | 6,738 | 3,684 | ||||
Collections/ Terminations | (2,831) | (446) | ||||
Balance End of the Period | $ 10,591 | 10,591 | $ 6,684 | |||
711 Holdings, LLC [Member] | ||||||
Sale of subsidiary [Abstract] | ||||||
Sale of subsidiary to related party | $ 1,500 | |||||
Net gain from sale of subsidiary | $ 137 | |||||
Haines Realty Investments Company, LLC [Member] | ||||||
Sale of subsidiary [Abstract] | ||||||
Lease expense | $ 46 | $ 46 | $ 138 | $ 138 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Employee Benefits [Abstract] | ||||
Percentage of employee's compensation matched by company | 5.00% | |||
Defined benefit plan, employer contribution | $ 61 | $ 52 | $ 154 | $ 127 |
Assumptions used for Computing Stock-Based Compensation [Abstract] | ||||
Risk-free interest rate | 2.69% | |||
Dividend yield | 2.20% | |||
Stock price volatility | 13.70% | |||
Expected term | 4 years | |||
2018 Equity Incentive Plan [Member] | ||||
Share-based Compensation [Abstract] | ||||
Compensation expense related to the plan | $ 15 | 15 | ||
RSUs [Member] | ||||
Share-based Compensation [Abstract] | ||||
Unrecognized compensation expense | $ 2,460 | $ 2,460 | ||
Vested of restricted stock units (in shares) | 0 | |||
Period for recognition of compensation cost not yet recognized | 5 years | |||
Restricted Stock Units [Roll Forward] | ||||
Shares granted (in shares) | 130,000 | |||
Shares settled (in shares) | 0 | |||
Shares forfeited (in shares) | 0 | |||
End of the period (in shares) | 130,000 | 130,000 | ||
Weighted Average Grant Date Fair Value [Abstract] | ||||
Shares granted (in dollars per share) | $ 19 | |||
Shares settled (in dollars per share) | 0 | |||
Shares forfeited (in dollars per share) | 0 | |||
End of the period (in dollars per share) | $ 19 | $ 19 | ||
RSUs [Member] | IPO [Member] | ||||
Share-based Compensation [Abstract] | ||||
Vesting period | 5 years | |||
Stock Option [Member] | ||||
Share-based Compensation [Abstract] | ||||
Unrecognized compensation expense | $ 302 | $ 302 | ||
Period for recognition of compensation cost not yet recognized | 4 years | |||
Stock Option [Member] | IPO [Member] | ||||
Share-based Compensation [Abstract] | ||||
Vesting period | 4 years | |||
Stock Option [Member] | 2018 Equity Incentive Plan [Member] | ||||
Stock Option Activity [Roll Forward] | ||||
Options Granted (in shares) | 150,000 | |||
Options Exercised (in shares) | 0 | |||
Outstanding at September 30, 2018 (in shares) | 150,000 | 150,000 | ||
Exercisable at September 30, 2018 (in shares) | 0 | 0 | ||
Weighted Average Exercise Price [Roll Forward] | ||||
Options Granted (in dollars per share) | $ 19 | |||
Options Exercised (in dollars per share) | 0 | |||
Outstanding at end of period (in dollars per share) | $ 19 | $ 19 | ||
Options, Additional Disclosures [Abstract] | ||||
Weighted average remaining contractual term, Outstanding | 9 years 11 months 19 days | |||
Weighted average remaining contractual term, Exercisable | 0 years | |||
Aggregate intrinsic value, Outstanding | $ 38 | $ 38 | ||
Aggregate intrinsic value, Exercisable | $ 0 | $ 0 |
Disclosures About Fair Value _3
Disclosures About Fair Value of Assets and Liabilities, Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Recurring Basis [Member] | ||
Asset measured at fair value on recurring basis [Abstract] | ||
Assets measured at fair value | $ 0 | $ 0 |
Nonrecurring Basis [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | 31 | 1,021 |
Foreclosed assets held for sale | 110 | 100 |
Level 1 [Member] | Nonrecurring Basis [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | 0 | 0 |
Foreclosed assets held for sale | 0 | 0 |
Level 2 [Member] | Nonrecurring Basis [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | 0 | 0 |
Foreclosed assets held for sale | 0 | 0 |
Level 3 [Member] | Nonrecurring Basis [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | 31 | 1,021 |
Foreclosed assets held for sale | $ 110 | $ 100 |
Disclosures About Fair Value _4
Disclosures About Fair Value of Assets and Liabilities, Financial Instruments not Recorded at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Carrying Amount [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | $ 127,248 | $ 100,054 |
Interest-bearing time deposits in other banks | 29,767 | 30,168 |
Loans, net of allowance | 577,111 | 555,347 |
Mortgage loans held for sale | 388 | |
Nonmarketable equity securities | 1,055 | 1,049 |
Interest receivable | 4,460 | 3,674 |
Financial Liabilities [Abstract] | ||
Deposits | 664,313 | 625,831 |
Borrowings | 5,600 | |
Interest payable | 560 | 404 |
Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 127,248 | 100,054 |
Interest-bearing time deposits in other banks | 29,775 | 30,176 |
Loans, net of allowance | 576,818 | 554,896 |
Mortgage loans held for sale | 388 | |
Nonmarketable equity securities | 1,055 | 1,049 |
Interest receivable | 4,460 | 3,674 |
Financial Liabilities [Abstract] | ||
Deposits | 663,255 | 624,855 |
Borrowings | 5,600 | |
Interest payable | 560 | 404 |
Fair Value [Member] | Level 1 [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 127,248 | 100,054 |
Interest-bearing time deposits in other banks | 0 | 0 |
Loans, net of allowance | 0 | 0 |
Mortgage loans held for sale | 0 | |
Nonmarketable equity securities | 0 | 0 |
Interest receivable | 0 | 0 |
Financial Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Borrowings | 0 | |
Interest payable | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 0 | 0 |
Interest-bearing time deposits in other banks | 29,775 | 30,176 |
Loans, net of allowance | 576,787 | 553,875 |
Mortgage loans held for sale | 388 | |
Nonmarketable equity securities | 1,055 | 1,049 |
Interest receivable | 4,460 | 3,674 |
Financial Liabilities [Abstract] | ||
Deposits | 663,255 | 624,855 |
Borrowings | 5,600 | |
Interest payable | 560 | 404 |
Fair Value [Member] | Level 3 [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 0 | 0 |
Interest-bearing time deposits in other banks | 0 | 0 |
Loans, net of allowance | 31 | 1,021 |
Mortgage loans held for sale | 0 | |
Nonmarketable equity securities | 0 | 0 |
Interest receivable | 0 | 0 |
Financial Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Borrowings | 0 | |
Interest payable | $ 0 | $ 0 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financial instruments, off-balance sheet credit risk [Abstract] | ||
Financial instruments, off-balance sheet credit risk | $ 137,427 | $ 147,432 |
Commitments to Extend Credit [Member] | ||
Financial instruments, off-balance sheet credit risk [Abstract] | ||
Financial instruments, off-balance sheet credit risk | 135,802 | 145,888 |
Financial and Performance Standby Letters of Credit [Member] | ||
Financial instruments, off-balance sheet credit risk [Abstract] | ||
Financial instruments, off-balance sheet credit risk | $ 1,625 | $ 1,544 |
Significant Estimates and Con_2
Significant Estimates and Concentrations (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Significant Estimates of Loans [Abstract] | ||
Outstanding balance | $ 586,691 | $ 564,577 |
Hospitality Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Percentage of gross loans | 23.00% | |
Outstanding balance | $ 133,800 | |
Unfunded commitments | $ 32,400 | |
Energy Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Percentage of gross loans | 21.00% | |
Outstanding balance | $ 121,000 | |
Unfunded commitments | $ 29,400 |
Operating Leases (Details)
Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Operating Leases [Abstract] | ||||
Rental expense | $ 114 | $ 98 | $ 341 | $ 336 |
Non-Cancelable Operating Leases [Abstract] | ||||
2,018 | 114 | 114 | ||
2,019 | 456 | 456 | ||
2,020 | 349 | 349 | ||
2,021 | 203 | 203 | ||
Thereafter | 47 | 47 | ||
Future minimum rental commitments | $ 1,169 | $ 1,169 |