Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 01, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Entity Registrant Name | Bank of Commerce Holdings | ||
Entity Central Index Key | 702,513 | ||
Trading Symbol | boch | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 16,315,402 | ||
Entity Public Float | $ 161,740,861 | ||
Document Type | 10-K/A | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | true | ||
Amendment Description | Bank of Commerce Holdings and subsidiaries (the “Company”) is filing this Amendment No. 1 (“Amendment No. 1”) to its Annual Report on Form 10-K for the fiscal year ended December 31, 2017, originally filed on March 9, 2018 (the “Original 10-K”) to correct typographical errors found in the Original 10-K. Specifically, the Report of Independent Registered Public Accounting Firm included incorrect information in the report title. The Company is also correcting an incorrect hyperlink in the exhibits listed in Item 15 - Exhibits and Financial Statement Schedules. This Amendment No. 1 amends the title for the Report of Independent Registered Public Accounting Firm and a hyperlink in Item 15, Exhibit 10.4, as well as the inclusion of a new consent of Moss Adams LLP and currently dated certifications of the Company’s Chief Executive Officer and Chief Financial Officer. Except as described above, no changes have been made to the Original 10-K and this Amendment No. 1 does not modify, amend, or update in any way any of the financial or other information presented in the Original 10-K. This Amendment No. 1 should be read in conjunction with the Original 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets: | |||
Cash and due from banks | $ 17,979 | $ 16,419 | |
Interest-bearing deposits in other banks | 48,991 | 51,988 | |
Total cash and cash equivalents | 66,970 | 68,407 | |
Securities available-for-sale, at fair value | 267,954 | 175,174 | |
Securities held-to-maturity, at amortized cost | 31,187 | ||
Loans, net of deferred fees and costs | 881,545 | 805,535 | |
Allowance for loan and lease losses | (11,925) | (11,544) | |
Net loans | 869,620 | 793,991 | |
Premises and equipment, net | 14,748 | 16,226 | |
Other real estate owned | 35 | 759 | |
Life insurance | 21,898 | 23,098 | |
Deferred tax asset, net | 6,505 | 9,542 | |
Goodwill and core deposit intangible, net | 2,030 | 2,252 | |
Other assets | 19,661 | 20,356 | |
Total assets | 1,269,421 | 1,140,992 | |
Liabilities: | |||
Demand - noninterest-bearing | 305,650 | 270,398 | |
Demand - interest-bearing | 496,990 | 405,569 | |
Savings | 110,837 | 113,309 | |
Certificates of deposit | 189,255 | 215,390 | |
Total deposits | 1,102,732 | 1,004,666 | |
Principal | 17,096 | 18,917 | |
Less unamortized debt issuance costs | (138) | (184) | |
Net term debt | 16,958 | 18,733 | |
Junior subordinated debentures | 10,310 | 10,310 | |
Other liabilities | 12,157 | 13,177 | |
Total liabilities | 1,142,157 | 1,046,886 | |
Commitments and contingencies (Note 15) | |||
Shareholders’ equity: | |||
Common stock, no par value, 50,000,000 shares authorized; issued and outstanding - 16,271,563 as of December 31, 2017 and 13,440,422 as of December 31, 2016 | 51,830 | 24,547 | |
Retained earnings | 75,700 | 70,218 | |
Accumulated other comprehensive loss, net of tax | (266) | (659) | |
Total shareholders’ equity | [1] | 127,264 | 94,106 |
Total liabilities and shareholders’ equity | $ 1,269,421 | $ 1,140,992 | |
[1] | Excludes 43 unvested restricted shares |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares $ / shares in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued (in shares) | 16,271,563 | 13,440,422 |
Common stock, outstanding (in shares) | 16,271,563 | 13,440,422 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Interest income: | ||||
Interest and fees on loans | $ 39,112 | $ 35,435 | $ 32,871 | |
Interest on taxable securities | 3,921 | 2,986 | 3,284 | |
Interest on tax-exempt securities | 2,144 | 2,256 | 2,392 | |
Interest on interest-bearing deposits in other banks | 772 | 332 | 206 | |
Total interest income | 45,949 | 41,009 | 38,753 | |
Interest expense: | ||||
Interest on demand deposits | 744 | 523 | 460 | |
Interest on savings deposits | 200 | 174 | 213 | |
Interest on certificates of deposit | 2,188 | 2,179 | 2,356 | |
Interest on term debt | 1,168 | 1,667 | 1,759 | |
Interest on junior subordinated debentures | 287 | 235 | 195 | |
Total interest expense | 4,587 | 4,778 | 4,983 | |
Net interest income | 41,362 | 36,231 | 33,770 | |
Provision for loan and lease losses | 950 | |||
Net interest income after provision for loan and lease losses | 40,412 | 36,231 | 33,770 | |
Noninterest income: | ||||
Service charges on deposit accounts | 542 | 413 | 204 | |
ATM and point of sale fees | 1,093 | 995 | 383 | |
Fees on payroll and benefit processing | 658 | 593 | 555 | |
Life insurance | 1,050 | 613 | 641 | |
Gain on sale of investment securities, net | 137 | 244 | 443 | |
Impairment losses on investment securities | 0 | (546) | ||
Federal Home Loan Bank of San Francisco dividends | 318 | 644 | 630 | |
Gain (loss) on sale of OREO | 368 | (109) | 13 | |
Insured cash sweep fees | 197 | 3 | ||
Other income | 461 | 636 | 314 | |
Total noninterest income | 4,824 | 3,486 | 3,183 | |
Noninterest expense: | ||||
Salaries and related benefits | 17,819 | 16,425 | 14,303 | |
Premises and equipment | 4,242 | 3,869 | 2,894 | |
Federal Deposit Insurance Corporation insurance premium | 318 | 615 | 717 | |
Data processing fees | 1,749 | 1,675 | 1,016 | |
Professional service fees | 1,398 | 1,690 | 1,628 | |
Telecommunications | 879 | 751 | 449 | |
Branch acquisition costs | 580 | 347 | ||
Loss on cancellation of interest rate swap | 2,325 | |||
Other expenses | 4,559 | 4,570 | 3,551 | |
Total noninterest expense | 30,964 | 32,500 | 24,905 | |
Income before provision for income taxes | 14,272 | 7,217 | 12,048 | |
Provision for income taxes | 6,928 | 1,958 | 3,462 | |
Net income | 7,344 | 5,259 | 8,586 | |
Less: Preferred stock extinguishment costs | 102 | |||
Less: Preferred stock dividends | 189 | |||
Income available to common shareholders | $ 7,344 | $ 5,259 | $ 8,295 | |
Earnings per share - basic (in dollars per share) | $ 0.48 | $ 0.39 | $ 0.62 | |
Weighted average shares - basic (in shares) | [1] | 15,207 | 13,367 | 13,331 |
Earnings per share - diluted (in dollars per share) | $ 0.48 | $ 0.39 | $ 0.62 | |
Weighted average shares - diluted (in shares) | 15,310 | 13,425 | 13,365 | |
[1] | Excludes unvested restricted shares because they do not have dividend or voting rights. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income | $ 7,344 | $ 5,259 | $ 8,586 |
Available-for-sale securities : | |||
Unrealized losses arising during the period | (179) | (3,286) | (551) |
Unrealized gains from securities transferred from held-to-maturity to available-for-sale | 1,208 | ||
Income taxes | (423) | 1,353 | 227 |
Change in unrealized gains (losses), net of tax | 606 | (1,933) | (324) |
Reclassification adjustment for realized (gains) losses included in net income | (137) | (224) | (443) |
Income taxes | 55 | 92 | 184 |
Realized (gains) losses, net of tax | (82) | (132) | (259) |
Reclassification adjustment for other-than-temporary impairment included in net income | 546 | ||
Income taxes | (225) | ||
Realized impairment, net of tax | 321 | ||
Net change in unrealized gains (losses) on available-for-sale securities | 524 | (1,744) | (583) |
Held-to-maturity securities : | |||
Accretion of held-to-maturity fair value adjustment from other comprehensive income to interest income | (56) | (97) | (144) |
Income taxes | 23 | 40 | 59 |
Net accretion of held-to-maturity fair value adjustment from other comprehensive income to interest income | (33) | (57) | (85) |
Fair value adjustment for held-to-maturity securities transferred to available-for-sale | (167) | ||
Income taxes | 69 | ||
Net fair value adjustment for held-to-maturity securities transferred to available-for-sale | (98) | ||
Net change in fair value adjustment on held-to-maturity securities | (131) | (57) | (85) |
Derivatives: | |||
Unrealized (losses) arising during the period | (348) | (584) | |
Income taxes | 143 | 242 | |
Change in unrealized (losses), net of tax | (205) | (342) | |
Reclassification adjustment for net losses on derivatives included in net income | 2,721 | 1,435 | |
Income taxes | (1,120) | (592) | |
Reclassification adjustment for net losses on derivatives included in net income, net of tax | 1,601 | 843 | |
Net change in unrealized losses on derivatives | 1,396 | 501 | |
Other comprehensive income (loss) | 393 | (405) | (167) |
Comprehensive income – Bank of Commerce Holdings | $ 7,737 | $ 4,854 | $ 8,419 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Common Stock Including Additional Paid in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total | |
Balance at Dec. 31, 2014 | $ 19,931 | $ 23,891 | $ 59,867 | $ (87) | $ 103,602 | ||
Balance (in shares) at Dec. 31, 2014 | 13,294,000 | ||||||
Net income | 8,586 | 8,586 | |||||
Other comprehensive loss, net of tax | (167) | (167) | |||||
Comprehensive income | 8,419 | ||||||
Dividend on preferred stock | (189) | (189) | |||||
Dividend on common stock | (1,600) | (1,600) | |||||
Common stock issued under employee plans (in shares) | 9,000 | ||||||
Common stock issued under employee plans | 36 | 36 | |||||
Stock options exercised (in shares) | 39,000 | ||||||
Proceeds from stock options exercised | 156 | 156 | |||||
Compensation expense associated with stock options | 42 | 42 | |||||
Compensation expense associated with restricted stock | 89 | 89 | |||||
Preferred stock redemption | (20,000) | (33) | (20,033) | ||||
Preferred stock accretion | 69 | (69) | |||||
Stock compensation grants | |||||||
Balance (in shares) at Dec. 31, 2015 | 13,342,000 | ||||||
Balance at Dec. 31, 2015 | [1] | 24,214 | 66,562 | (254) | 90,522 | ||
Net income | 5,259 | 5,259 | |||||
Other comprehensive loss, net of tax | (405) | (405) | |||||
Comprehensive income | 4,854 | ||||||
Dividend on common stock | (1,603) | (1,603) | |||||
Common stock issued under employee plans (in shares) | 29,000 | ||||||
Common stock issued under employee plans | 84 | $ 84 | |||||
Stock options exercised (in shares) | 2,000 | 1,900 | |||||
Proceeds from stock options exercised | 10 | $ 10 | |||||
Compensation expense associated with stock options | 24 | 24 | |||||
Compensation expense associated with restricted stock | 215 | 215 | |||||
Preferred stock accretion | |||||||
Stock compensation grants | |||||||
Balance (in shares) at Dec. 31, 2016 | 13,373,000 | ||||||
Balance at Dec. 31, 2016 | [1] | 24,547 | 70,218 | (659) | 94,106 | ||
Net income | 7,344 | 7,344 | |||||
Other comprehensive loss, net of tax | 393 | 393 | |||||
Comprehensive income | 7,737 | ||||||
Dividend on common stock | (1,862) | (1,862) | |||||
Common stock issued under employee plans (in shares) | 30,000 | ||||||
Common stock issued under employee plans | |||||||
Stock options exercised (in shares) | 52,000 | 51,900 | |||||
Proceeds from stock options exercised | 245 | $ 245 | |||||
Compensation expense associated with stock options | 23 | 23 | |||||
Compensation expense associated with restricted stock | $ 196 | $ 196 | |||||
Preferred stock accretion | |||||||
Stock issued pursuant to public offering, net of underwriting discounts and expenses of $1.7 million | $ 2,738 | ||||||
Stock issued pursuant to public offering, net of underwriting discounts and expenses of $1.7 million (in shares) | 26,778,000 | 26,778,000 | |||||
Stock compensation grants (in shares) | 4,000 | ||||||
Stock compensation grants | $ 41 | $ 41 | |||||
Balance (in shares) at Dec. 31, 2017 | 16,197,000 | ||||||
Balance at Dec. 31, 2017 | [1] | $ 51,830 | $ 75,700 | $ (266) | $ 127,264 | ||
[1] | Excludes 43 unvested restricted shares |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parentheticals) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retained Earnings [Member] | |||
Dividends on common stock (in dollars per share) | $ 0.12 | $ 0.12 | $ 0.12 |
Common Stock [Member] | |||
Unvested restricted shares (in shares) | 74 | 67 | 43 |
Stock issued pursuant to public offering, issuance costs | $ 1.7 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 7,344 | $ 5,259 | $ 8,586 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan and lease losses | 950 | ||
Provision for depreciation and amortization | 2,061 | 1,908 | 1,524 |
Amortization of core deposit intangible | 221 | 185 | |
Amortization of debt issuance costs | 45 | 40 | 4 |
Compensation expense associated with stock options | 23 | 24 | 42 |
Compensation expense associated with restricted stock | 196 | 215 | 89 |
Tax benefits from vesting of restricted stock | (53) | ||
Net gain on sale or call of securities | (137) | (244) | (443) |
Other-than-temporary impairment on investment securities | 0 | 546 | |
Amortization of investment premiums and accretion of discounts, net | 2,031 | 1,715 | 1,876 |
Accretion of held-to-maturity fair value adjustments | (56) | (97) | (144) |
Loss on cancellation of interest rate swap | 2,325 | ||
Write-down of fixed assets | 238 | ||
Write-down of other real estate owned | 52 | 66 | |
(Gain) loss on sale of other real estate owned | (368) | 109 | (13) |
Increase in cash surrender value of life insurance | (548) | (613) | (641) |
Life insurance death benefit | (502) | ||
Increase (decrease) in deferred compensation and salary continuation plans | 18 | (19) | 28 |
Increase in deferred loan fees and costs | (386) | (454) | (713) |
Decrease in deferred income taxes | 271 | 132 | 584 |
Deferred tax asset write down | 2,490 | 363 | |
Decrease in other assets | 863 | 118 | 538 |
(Decrease) increase in other liabilities | (961) | 306 | (1,219) |
Net cash provided by operating activities | 13,554 | 11,884 | 10,336 |
Cash flows from investing activities: | |||
Proceeds from maturities and payments of available-for-sale securities | 23,551 | 31,685 | 23,426 |
Proceeds from sale of available-for-sale securities | 64,349 | 51,025 | 71,277 |
Purchases of available-for-sale securities | (150,888) | (104,134) | (69,362) |
Proceeds from maturities and payments of held-to-maturity securities | 1,098 | 4,963 | 1,099 |
Investment in Qualified Zone Academy Bonds | (1,000) | (2,000) | |
Investment in qualified affordable housing partnerships | (124) | (697) | (1,133) |
Net (purchase) redemption of Federal Home Loan Bank of San Francisco stock | (72) | 1,263 | |
Loan (originations), net of principal repayments | (76,016) | (105,892) | (46,554) |
Net (purchase of) repayment on purchased loans | (1,158) | 18,666 | (12,715) |
Purchase of premises and equipment | (584) | (2,873) | (705) |
Proceeds from the sale of other real estate owned | 2,111 | 636 | 3,111 |
Proceeds from life insurance policy | 2,249 | ||
Payments to derivative counterparties for the termination of interest rate swaps | (2,578) | ||
Acquisition of branches, net of cash paid | 142,411 | ||
Net cash (used) provided by investing activities | (136,484) | 31,212 | (30,293) |
Cash flows from financing activities: | |||
Net increase in demand deposits and savings accounts | 124,201 | 84,722 | 35,382 |
Net decrease in certificates of deposit | (26,135) | (32,838) | (20,682) |
Advances on term debt | 30,260 | 55,000 | 260,000 |
Repayment of term debt | (32,080) | (131,172) | (240,083) |
Debt issuance costs paid | (223) | ||
Proceeds from stock options exercised | 245 | 10 | 156 |
Net proceeds from issuance of common stock | 26,778 | ||
Redemption of preferred stock | (20,000) | ||
Preferred stock extinguishment costs | (33) | ||
Cash dividends paid on preferred stock | (189) | ||
Cash dividends paid on common stock | (1,776) | (1,603) | (1,601) |
Net cash provided by (used in) financing activities | 121,493 | (25,881) | 12,727 |
Net increase (decrease) cash and cash equivalents | (1,437) | 17,215 | (7,230) |
Cash and cash equivalents at the beginning of year | 68,407 | 51,192 | 58,422 |
Cash and cash equivalents at the end of year | 66,970 | 68,407 | 51,192 |
Supplemental disclosures of cash flow activity: | |||
Income taxes | 3,846 | 2,705 | 4,123 |
Interest | 4,581 | 5,142 | 4,628 |
Supplemental disclosures of non cash investing activities: | |||
Transfer of loans to other real estate owned | 981 | 147 | 3,888 |
Transfer of fixed asset to other real estate owned | 170 | ||
Changes in unrealized gain (loss) on investment securities available-for-sale | 892 | (2,964) | (985) |
Changes in net deferred tax asset related to changes in unrealized (loss) gain on investment securities available-for-sale | (368) | 1,220 | 402 |
Changes in accumulated other comprehensive income (loss) due to changes in unrealized gain (loss) on investment securities available-for-sale | 524 | (1,744) | (583) |
Accretion of held-to-maturity fair value adjustment from other comprehensive income to interest income | (56) | (97) | (144) |
Changes in deferred tax related to accretion of held-to-maturity investment securities | 23 | ||
Changes in accumulated other comprehensive income (loss) due to accretion of held-to-maturity investment securities | (33) | (97) | (144) |
Fair value adjustment for held-to-maturity securities transferred to available-for-sale | (167) | ||
Changes in deferred tax related to transfer of held-to-maturity investment securities to available-for-sale | 69 | ||
Net fair value adjustment for held-to-maturity securities transferred to available-for-sale | (98) | ||
Changes in accumulated other comprehensive income (loss) related held-to-maturity investment securities | (131) | (97) | (144) |
Changes in unrealized loss on derivatives | (348) | (584) | |
Changes in net deferred tax asset related to changes in unrealized loss on derivatives | 143 | 242 | |
Changes in accumulated other comprehensive income (loss) due to changes in unrealized loss on derivatives | (205) | (342) | |
Reclassification of losses on derivatives | 2,721 | 1,435 | |
Changes in net deferred tax asset related to reclassification of losses on derivatives | (1,120) | (592) | |
Changes in accumulated other comprehensive income (loss) due to reclassification of losses on derivatives | 1,601 | 843 | |
Supplemental disclosures of non cash financing activities: | |||
Vested and granted restricted stock issued under employee plans | 84 | 36 | |
Stock compensation grants for the 2016 compensation plan | 41 | ||
Preferred stock accretion | |||
Transfer of HTM to AFS | 30,330 | ||
Cash dividend declared on common stock and payable after period-end | 486 | 401 | 400 |
Transactions Related to Acquisition: | |||
Assets acquired - fair value | 155,230 | ||
Goodwill | 665 | ||
Liabilities assumed - fair value | 149,239 | ||
Preferred Stock [Member] | |||
Supplemental disclosures of non cash financing activities: | |||
Preferred stock accretion | $ 69 |
Note 1 - The Business of the Co
Note 1 - The Business of the Company | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1. COMPANY Bank of Commerce Holdings (“Company,” “Holding Company,” “we,” or “us”), is a corporation organized under the laws of California and a bank holding company (“BHC”) registered under the Bank Holding Company Act of 1956, two November 25, 1981 October 22, 1982. We operate nine and consider northern California to be our major market. We also operate a “cyber office” as identified in our summary of deposits reporting filed with the FDIC. The services offered by the Bank include those traditionally offered by banks of similar size and character in California. Our principal deposit products include the following types of accounts; checking, interest-bearing checking, savings, money market deposits and certificates of deposit,. We also offer sweep arrangements, commercial loans, construction loans, consumer loans, safe deposit boxes, collection services and electronic banking services. The primary focus of the Bank is to provide banking services to the communities in our major market area, including Small Business Administration loans and payroll processing. The Bank does not |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE 2. Basis of Financial Statement Presentation - not no Principles of Consolidation - The accompanying Consolidated Financial Statements include the accounts of the Holding Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. As of December 31, 2017 2016, one 2005 not 810, Consolidation 810” not Consolidated Balance Sheets Application of new accounting guidance - January 2017, No. 2016 09, 718 2016 09, no not Subsequent events – We have evaluated events and transactions subsequent to December 31, 2017 Cash and Cash Equivalents – For purposes of reporting cash flows, cash and cash equivalents include amounts due from correspondent banks including interest-bearing deposits in correspondent banks and the Federal Reserve Bank.. Investment Securities – Securities are classified as held-to-maturity if we have both the intent and ability to hold those securities to maturity regardless of changes in market conditions, liquidity needs or changes in general economic conditions. These securities are carried at cost adjusted for amortization of premium and accretion of discount, computed by the effective interest method over their contractual lives. Unrealized holding gains or losses are excluded from other comprehensive income (loss). Realized gains or losses, determined on the basis of the cost of specific securities sold or called, are included in earnings. Dividend and interest income are recognized when earned. Securities are classified as available-for-sale if we intend and have the ability to hold those securities for an indefinite period of time, but not Transfers of securities from available-for-sale to held-to-maturity are accounted for at fair value as of the date of the transfer. The difference between the fair value and the amortized cost at the date of transfer is considered a premium or discount and is accounted for accordingly. Any unrealized gain or loss at the date of the transfer is reported in other comprehensive income (loss), and is amortized over the estimated remaining life of the security as an adjustment of yield in a manner consistent with the amortization of any premium or discount, and will offset or mitigate the effect on interest income of the amortization of the premium or discount for that held-to-maturity security. Transfers of securities from held-to-maturity to available-for-sale to are accounted for at fair value at the date of the reclassification. Any remaining unamortized fair value adjustments are reclassified from other comprehensive income (loss) and the unrealized holding gain (loss) at the date of transfer is recorded in other comprehensive income net of tax. We review investment securities on an ongoing basis for the presence of other-than-temporary impairment or permanent impairment, taking into consideration current market conditions, fair value in relationship to cost, extent and nature of the change in fair value, issuer rating changes and trends, whether we intend to sell a security or if it is more likely than not may not not not not not not Loans – Loans are stated at the principal amounts outstanding, net of deferred loan fees, deferred loan costs, and the ALLL. Interest on loans is accrued daily based on the principal outstanding. Loan origination and commitment fees and certain origination costs are deferred and the net amount is amortized or accreted over the contractual life of the loans as an adjustment of their yield. A loan is impaired when, based on current information and events, management believes it is probable that we will not not Our practice is to place an asset on nonaccrual status when one 1 90 ’s opinion the loan is well-secured and in the process of collection), ( 2 3 90 90 90 not not Nonperforming loans are loans which may 90 Restructured loans are those loans where concessions in terms have been granted because of the borrower ’s financial or legal difficulties. Interest is generally accrued on such loans in accordance with the new terms, after a period of sustained performance by the borrower. Purchased Loans -Purchased loans are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an ALLL is not None Allowance for Loan and Lease Losses – The adequacy of the ALLL is monitored on a regular basis and is based on management’s evaluation of numerous factors. These factors include the quality of the current loan portfolio; the trend in the loan portfolio’s risk ratings; current economic conditions; loan concentrations; loan growth rates; past-due and non-performing trends; evaluation of specific loss estimates for all impaired loans; historical charge-off and recovery experience; and other pertinent information. We perform regular credit reviews of the loan portfolio to determine the credit quality of the portfolio and the adherence to underwriting standards. When loans are originated, they are assigned a risk rating that is reassessed periodically during the term of the loan through the credit review process. Our risk rating methodology assigns risk ratings ranging from 1 8, 8 We have divided the loan portfolio into sub-categories of similar type loans. Each category is assigned an historical loss factor and additional qualitative factors. The sub-categories are also further segmented by risk rating. Each risk rating is assigned an additional loss factor to account for the additional risk in those loans with higher risk levels. Regular credit reviews of the portfolio also identify loans that are considered potentially impaired. Potentially impaired loans are referred to the CCO who reviews and approves designated loans as impaired. A loan is considered impaired when , based on current information and events, we determine that it is probable that we will not We may may not 4% may As adjustments to the ALLL become necessary, they are reported in earnings in the periods in which they become known as a charge or credit to the provision for loan and lease losses. Loans, or portions thereof, deemed uncollectible are charged to the ALLL. Recoveries on loans previously charged-off, are added to the ALLL. We believe that the ALLL was adequate as of December 31, 2017. no not may 77% may Reserve for Unfunded Commitments – A reserve for unfunded commitments is maintained at a level that, in our opinion, is adequate to absorb probable losses associated with our commitment to lend funds under existing agreements such as letters or lines of credit. We determine the adequacy of the reserve for unfunded commitments based upon the category of loan, current economic conditions, the risk characteristics of the various categories of commitments and other relevant factors. The reserve is based on estimates, and ultimate losses may These estimates are evaluated on a regular basis and, as adjustments become necessary, they are reported in earnings in the periods in which they become known. Draws on unfunded commitments that are considered uncollectible at the time funds are advanced are charged to the reserve for unfunded commitments. Provisions for unfunded commitment losses, and recoveries on loan and lease commitments previously charged off, are added to the reserve for unfunded commitments, which is included in the Other Liabilities Consolidated Balance Sheets. 15, Commitment s and Contingencies Notes to Consolidated Financial Statements Pr emises and Equipment – three seven 39 other noninterest income other noninterest expense Consolidated Statements of Income Goodwill and Other Intangibles - not non-interest expense Consolidated Statements of Income Other Real Estate Owned – other expenses Consolidated Statements of Income noninterest income noninterest expense Consolidated Statements of Income Income Taxes – Income taxes reported in the Consolidated Financial Statements not In projecting future taxable income, management develops assumptions including the amount of future state and federal pre -tax operating income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates being used to manage the underlying business. We file consolidated federal and combined state income tax returns. We recognize the financial statement effect of a tax position when it is more likely than not, not may fifty We believe that all of our tax positions taken meet the more likely than not 23, Income Taxes Notes to Consolidated Financial Statements Derivative Financial Instruments and Hedging Activities – Prior to March 2016, not, Consolidated Balance Sheets 22, Derivatives Notes to Consolidated Financial Statements At the inception of a hedging relationship, we designate each qualifying derivative financial instrument as either a hedge of the fair value of a specifically identified asset or liability (fair value hedge) or; as a hedge of the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). We formally document all relationships between hedging instruments and hedged items and risk management objectives for undertaking various hedge transactions. Both at the hedge’s inception and on an ongoing basis, we formally assess whether the derivatives that are used in hedging relationships are highly effective in offsetting changes in fair values or cash flows of hedged items. Changes in the fair value of derivative financial instruments that are designated and qualify as fair value hedges along with the gain or loss on the hedged asset or liability attributable to the hedged risk, are recorded in the current period earnings. For qualifying cash flow hedges, the effective portion of the change in the fair value of the derivative financial instruments is recorded in accumulated other comprehensive income (loss), as a component of equity, and recognized in the Consolidated Statements of Income The hedge accounting treatment described herein is no no to the hedged asset or liability remain as part of the basis of the asset or liability and are recognized into income over the remaining life of the asset or liability. For terminated cash flow hedges, unless it is probable that the forecasted cash flows will not Operating Segments – Public enterprises are required to report certain information about their operating segments in a complete set of financial statements to shareholders. They are also required to report certain enterprise-wide information about their products and services, their activities in different geographic areas, and their reliance on major customers. The basis for determining operating segments is the manner in which management operates the business. As of December 31, 2017, one Share Based Payments – We have one 2008 May 15, 2007 ( 2010 May 18, 2010. May 15, 2012. The Plan provides for awards to key personnel, including directors of incentive and nonqualified stock options, restricted stock units and restricted stock, which may 422 1986, may not 100% no 85% no ten five three five no 18, Share holders’ Equity , Notes to the Consolidated Financial Statements. In accordance with FASB ASC 718, Stock Compensation, Consolidated Statements of Income The fair value of each option grant is estimated as of the grant date using the Black-Scholes option-pricing model using the following assumptions: ● Volatility represents the historical volatility in the Holding Company’s common stock price, for a period consistent with the expected life of the option. ● Risk free rate was derived from the U.S. Treasury rate at the time of the grant, which coincides with the expected life of the option. ● Expected dividend yield is based on dividend trends and the market value of the Holding Company’s common stock at the time of grant. ● Annual dividend rate is the ratio of the expected annual dividends to the Holding Company ’s common stock price on the grant date. ● Assumed forfeiture rate based on expected forfeiture rates. ● Expected life is estimated based on the history of the Holding Company ’s stock option holders and expectations regarding future forfeitures giving consideration to the contractual terms and vesting schedules, and represents the period of time that options granted are expected to be outstanding. The following weighted average assumptions were used to determine the fair value of stock option grants as of the grant date to determine compensation cost for the years ended December 31, 2015. no 2017 2016. 2015 Volatility 26.44 % Risk free interest rate 1.64 % Expected dividends $ 0.12 Annual dividend rate 2.05 % Assumed forfeiture rate — Expected life (in years) 7 Earnings per Share - dilution Basic earnings per share excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period, excluding unvested restricted stock awards which do not not We present both basic and diluted earnings per share on the face of the Consolidated Statements of Income 26, Earnings Per Common Share Notes to Consolidated Financial Statements. Advertising Costs – For the years ended December 31, 2017, 2016, 2015, $61 $171 $64 Fair Value Measurements – FASB ASC 820, Fair Value Measurements and Disclosures, 820 three 1 2 1 2 3 may Recent Accounting Pronouncements ASU No. 2 016 13 Description - In June 2016, No. 2016 13 , Financial Instruments – Credit Losses (Topic 326 Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. The ASU requires enhanced disclosures to help investors and other financial statement users to better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization ’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. In addition, the ASU amends the accounting guidance for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. Methods and timing of adoption – The amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. December 15, 2018. Expected financial statement impact – We are currently evaluating the provisions of the ASU and have formed a committee for the purpose of developing a model that is compliant with the requirements under the ASU. The committee is also gathering pertinent data, consulting with outside professionals and evaluating our IT systems. Management expects to recognize a one–time cumulative effect adjustment to the allowance for loan and lease losses as of the first one not ASU No. 2016 02 Description - In February 2016, No. 2016 02, Leases (Topic 812 842 is that a lessee should recognize the assets and liabilities that arise from leases. All leases create an asset and a liability for the lessee in accordance with FASB Concepts Statement No. 6, not Methods and timing of adoption – For public companies, the amendments in this update are effective for fiscal years beginning after December 15, 2018, Expected financial statement impact – The Company has performed an initial analysis of our existing leases and expects a significant new lease asset and related lease liability on the balance sheet due to the number of leased properties the Company currently has that are accounted for under current operating lease guidance. ASU No. 2016 01 Description - In January 2016, No. 2016 01, – Overall (Subtopic 825 10 Methods and timing of adoption – ASU No. 2016 01 December 15, 2017, Expected financial statement impact – The Company has evaluated the potential impact of this ASU on the Company's consolidated financial statements and we do not ASU No. 2014 09 Description - In May 2014, No. 2014 09, 606 605, 606 Methods and timing of adoption – The standard is effective for public entities for interim and annual periods beginning after December 15, 2017 No. 2015 14; not No. 2014 09 January 1, 2018 Expected financial statement impact – Since the guidance does not not not |
Note 3 - Restrictions on Cash a
Note 3 - Restrictions on Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | NOTE 3. We have a Fed Funds line of credit with one $450 $450 December 31, 2017 December 31, 2016. The Bank is required by federal regulations to set aside specified amounts of cash as reserves against transaction and time deposits. The cash reserve required as of December 31, 2017 December 31, 2016 $1.7 $1.5 |
Note 4 - Securities
Note 4 - Securities | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 4. The following table presents the amortized costs, unrealized gains, unrealized losses and estimated fair values of our investment securities as of December 31, 2017, December 31, 2016. As of December 31, 2017 Gross Gross Amortized Unrealized Unrealized Estimated (Amounts in thousands) Costs Gains Losses Fair Value Available-for-sale securities: U.S. government & agencies $ 40,319 $ 196 $ (146 ) $ 40,369 Obligations of state and political subdivisions 77,412 1,910 (478 ) 78,844 Residential mortgage-backed securities and collateralized mortgage obligations 116,061 69 (1,538 ) 114,592 Corporate securities 5,079 18 (105 ) 4,992 Commercial mortgage-backed securities 26,995 24 (378 ) 26,641 Other asset-backed securities 2,540 4 (28 ) 2,516 Total $ 268,406 $ 2,221 $ (2,673 ) $ 267,954 As of December 31, 2016 Gross Gross Amortized Unrealized Unrealized Estimated (Amounts in thousands) Costs Gains Losses Fair Value Available-for-sale securities: U.S. government & agencies $ 10,427 $ 10 $ (83 ) $ 10,354 Obligations of state and political subdivisions 58,847 1,001 (420 ) 59,428 Residential mortgage-backed securities and collateralized mortgage obligations 71,068 33 (1,497 ) 69,604 Corporate securities 16,153 103 (140 ) 16,116 Commercial mortgage-backed securities 15,786 9 (281 ) 15,514 Other asset-backed securities 4,237 8 (87 ) 4,158 Total $ 176,518 $ 1,164 $ (2,508 ) $ 175,174 Held-to-maturity securities: Obligations of state and political subdivisions $ 31,187 $ 710 $ (523 ) $ 31,374 During the fourth $30.3 s was accounted for at fair value. At the date of the reclassification, the securities had a fair value of $31.4 $1.2 $167 We reclassified the held-to-maturity securities portfolio to available-for-sale to provide increased flexibility to support the loan pipeline and take advantage of opportunities to improve the overall structure and yield of the investment portfolio. As a result of this transfer we have are precluded from classifying any investment securities as held-to-maturity for two not The following table presents the expected maturities of investment securities at December 31, 2017. Available-For-Sale (Amounts in thousands) Amortized Cost Fair Value Amounts maturing in: One year or less $ 1,425 $ 1,430 One year through five years 87,888 87,424 Five years through ten years 83,450 83,430 After ten years 95,643 95,670 Total $ 268,406 $ 267,954 The amortized cost and fair value of residential mortgage-backed securities, collateralized mortgage obligations and commercial mortgage securities are presented by their expected average life, rather than contractual maturity, because the underlying loans may At December 31, 2017 2016 , securities with a fair value of $62.6 $39.2 The following table presents the cash proceeds from sales of securities and the associated gross realized gains and gross realized losses that have been included in earnings for the years ended December 31, 2017, 2016 and 2015. For Years Ended December 31, (Amounts in thousands) 2017 2016 2015 Proceeds from sales of securities $ 64,349 $ 51,025 $ 71,277 Gross realized gains on sales of securities: U.S. government & agencies $ — $ 25 $ 16 Obligations of state and political subdivisions 161 188 97 Residential mortgage-backed securities and collateralized mortgage obligations 52 17 142 Corporate securities 79 105 161 Commercial mortgage-backed securities 3 4 14 Other asset-backed securities 20 13 126 Total gross realized gains on sales of securities 315 352 556 Gross realized losses on sales of securities U.S. government & agencies — (13 ) (33 ) Obligations of state and political subdivisions (102 ) (3 ) (29 ) Residential mortgage-backed securities and collateralized mortgage obligations (56 ) (64 ) (12 ) Corporate securities (3 ) (27 ) (14 ) Commercial mortgage-backed securities (17 ) (1 ) — Other asset-backed securities — — (25 ) Total gross realized losses on sales of securities (178 ) (108 ) (113 ) Gain on investment securities, net $ 137 $ 244 $ 443 Investment securities that were in an unrealized loss position as of December 31, 2017 December 31, 2016 are presented in the following tables, based on the length of time individual securities have been in an unrealized loss position. As of December 31, 2017 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Amounts in thousands) Value Losses Value Losses Value Losses Available-for-sale securities: U.S. government & agencies $ 18,140 $ (102 ) $ 2,131 $ (44 ) $ 20,271 $ (146 ) Obligations of states and political subdivisions 15,030 (255 ) 8,368 (223 ) 23,398 (478 ) Residential mortgage-backed securities and collateralized mortgage obligations 75,323 (827 ) 31,036 (711 ) 106,359 (1,538 ) Corporate securities — — 2,934 (105 ) 2,934 (105 ) Commercial mortgage-backed securities 11,162 (151 ) 10,026 (227 ) 21,188 (378 ) Other asset-backed securities 2,167 (28 ) — — 2,167 (28 ) Total temporarily impaired securities $ 121,822 $ (1,363 ) $ 54,495 $ (1,310 ) $ 176,317 $ (2,673 ) As of December 31, 2016 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Amounts in thousands) Value Losses Value Losses Value Losses Available-for-sale securities: U.S. government & agencies $ 9,139 $ (83 ) $ — $ — $ 9,139 $ (83 ) Obligations of states and political subdivisions 20,329 (420 ) — — 20,329 (420 ) Residential mortgage-backed securities and collateralized mortgage obligations 52,345 (1,396 ) 4,108 (101 ) 56,453 (1,497 ) Corporate securities 8,908 (140 ) — — 8,908 (140 ) Commercial mortgage-backed securities 12,041 (191 ) 2,849 (90 ) 14,890 (281 ) Other asset-backed securities 2,280 (28 ) 1,346 (59 ) 3,626 (87 ) Total temporarily impaired securities $ 105,042 $ (2,258 ) $ 8,303 $ (250 ) $ 113,345 $ (2,508 ) Held-to-maturity securities: Obligations of states and political subdivisions $ 11,639 $ (425 ) $ 933 $ (98 ) $ 12,572 $ (523 ) At December 31, 2017 December 31, 2016, that were in unrealized loss position was 138 119, not not no not Our Investment Policy requires that at the time of purchase, securities purchased to be rated A3/A ’s, S&P and Fitch rating agencies. The following table presents the characteristics of our securities that are in unrealized loss positions at December 31, 2017 December 31, 2016. Characteristics of securities in unrealized loss positions at Available-for-sale securities: December 31, 2017 December 31, 2016 U.S. government & agencies Direct obligations of the U.S. Government or obligations guaranteed by U.S. Government agencies. Obligations of states and political subdivisions General obligation issuances or revenue securities secured by revenues from specific sources issued by municipalities and political subdivisions located within the U.S. Residential mortgage-backed securities and collateralized mortgage obligations Obligations of U.S. government sponsored entities or non-governmental entities collateralized by high quality mortgages on residential properties. Issuances by non-governmental entities usually include good credit enhancements. Of the residential mortgage-backed securities and collateralized mortgage obligations that we owned at December 31, 2017 December 31, 2016, 56% 49% Corporate securities Debt obligations generally issued or guaranteed by large U.S. corporate institutions. Commercial mortgage-backed securities Obligations of U.S. government sponsored entities or non-governmental entities collateralized by high quality mortgages on commercial properties. Issuances by non-governmental entities usually include good credit enhancements. Of the commercial mortgage-backed securities that we owned at December 31, 2017 December 31, 2016, 90% 91% Other asset-backed securities Obligations secured by high quality loans with good credit enhancements issued by non-governmental issuers. Other-Than-Temporary Impairment For the year ended December 31, 2017, not one $546 second 2016 no December 31, 2016. |
Note 5 - Loans
Note 5 - Loans | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Past Due Loans at Days Past Days Past Days Past Total Past 90 Days and December 31, 2017 Due Due Due Due Current Total Accruing Commercial $ — $ — $ — $ — $ 149,088 $ 149,088 $ — Commercial real estate: Real estate - construction and land development — — — — 15,902 15,902 — Real estate - commercial non-owner occupied — — — — 377,668 377,668 — Real estate - commercial owner occupied 142 — — 142 185,198 185,340 — Residential real estate: Real estate - residential - ITIN 555 122 462 1,139 40,049 41,188 — Real estate - residential - 1-4 family mortgage 290 173 — 463 29,914 30,377 — Real estate - residential - equity lines 141 — — 141 30,206 30,347 — Consumer and other 281 123 — 404 49,521 49,925 — Total $ 1,409 $ 418 $ 462 $ 2,289 $ 877,546 $ 879,835 $ — Greater Recorded (Amounts in thousands) 30-59 60-89 Than 90 Investment > Past Due Loans at Days Past Days Past Days Past Total Past 90 Days and December 31, 2016 Due Due Due Due Current Total Accruing Commercial $ 51 $ — $ — $ 51 $ 153,793 $ 153,844 $ — Commercial real estate: Real estate - construction and land development — — — — 36,792 36,792 — Real estate - commercial non-owner occupied — — 1,196 1,196 291,419 292,615 — Real estate - commercial owner occupied — — 114 114 167,221 167,335 — Residential real estate: Real estate - residential - ITIN 567 80 1,149 1,796 43,770 45,566 — Real estate - residential - 1-4 family mortgage 147 — 856 1,003 19,422 20,425 — Real estate - residential - equity lines 68 36 48 152 35,801 35,953 — Consumer and other 166 70 11 247 51,434 51,681 — Total $ 999 $ 186 $ 3,374 $ 4,559 $ 799,652 $ 804,211 $ — Nonaccrual Loans Nonaccrual loans, segregated by loan portfolio, were as follows as of December 31, 2017 , and December 31, 2016. As of (Amounts in thousands) December 31, Nonaccrual Loans 2017 2016 Commercial $ 1,603 $ 2,749 Commercial real estate: Real estate - commercial non-owner occupied — 1,196 Real estate - commercial owner occupied 600 784 Residential real estate: Real estate - residential - ITIN 2,909 3,576 Real estate - residential - 1-4 family mortgage 606 1,914 Real estate - residential - equity lines 45 917 Consumer and other 36 250 Total $ 5,799 $ 11,386 Had nonaccrual loans performed in accordance with their contractual terms, we would have recognized additional interest income, net of tax, of approximately $226 $353 $228 December 31, 2017, 2016, 2015, Impaired Loans The following tables summarize impaired loans by loan portfolio as of December 31, 2017, December 31, 2016. As of December 31, 2017 Unpaid (Amounts in thousands) Recorded Principal Related Impaired Loans Investment Balance Allowance With no related allowance recorded: Commercial $ 672 $ 1,205 $ — Commercial real estate: Real estate - commercial non-owner occupied — — — Real estate - commercial owner-occupied 600 665 — Residential real estate: Real estate - residential - ITIN 5,895 7,516 — Real estate - residential - 1-4 family mortgage 414 897 — Real estate - residential - equity lines 45 49 — Consumer and other — — — Total with no related allowance recorded $ 7,626 $ 10,332 $ — With an allowance recorded: Commercial $ 2,482 $ 2,540 $ 690 Commercial real estate: Real estate - commercial non-owner occupied 803 803 77 Real estate - commercial owner-occupied — — — Residential real estate: Real estate - residential - ITIN 1,628 1,678 199 Real estate - residential - 1-4 family mortgage 192 226 2 Real estate - residential - equity lines 380 380 190 Consumer and other 36 36 11 Total with an allowance recorded $ 5,521 $ 5,663 $ 1,169 By loan portfolio: Commercial $ 3,154 $ 3,745 $ 690 Commercial real estate 1,403 1,468 77 Residential real estate 8,554 10,746 391 Consumer and other 36 36 11 Total impaired loans $ 13,147 $ 15,995 $ 1,169 As of December 31, 2016 Unpaid (Amounts in thousands) Recorded Principal Related Impaired Loans Investment Balance Allowance With no related allowance recorded: Commercial $ 1,573 $ 2,438 $ — Commercial real estate: Real estate - commercial non-owner occupied 1,196 1,196 — Real estate - commercial owner-occupied 784 $ 841 — Residential real estate: Real estate - residential - ITIN 6,047 7,685 — Real estate - residential - 1-4 family mortgage 1,914 2,722 — Real estate - residential - equity lines 917 1,342 — Consumer and other 210 216 — Total with no related allowance recorded $ 12,641 $ 16,440 $ — With an allowance recorded: Commercial $ 1,952 $ 1,957 $ 641 Commercial real estate: Real estate - commercial non-owner occupied 808 808 21 Real estate - commercial owner-occupied 337 337 64 Residential real estate: Real estate - residential - ITIN 2,562 2,617 494 Real estate - residential - equity lines 454 454 227 Consumer and other 40 40 14 Total with an allowance recorded $ 6,153 $ 6,213 $ 1,461 By loan portfolio: Commercial $ 3,525 $ 4,395 $ 641 Commercial real estate 3,125 3,182 85 Residential real estate 11,894 14,820 721 Consumer and other 250 256 14 Total impaired loans $ 18,794 $ 22,653 $ 1,461 The following table summarizes average recorded investment and interest income recognized on impaired loans by loan portfolio for the years ended December 31, 2017, 2016 2015. 2017 2016 2015 Average Interest Average Interest Average Interest (Amounts in thousands) Recorded Income Recorded Income Recorded Income Average Recorded Investment and Interest Income Investment Recognized Investment Recognized Investment Recognized Commercial $ 3,211 $ 46 $ 2,605 $ 23 $ 3,533 $ 22 Commercial real estate: Real estate - commercial non-owner occupied 1,548 46 2,013 47 7,306 49 Real estate - commercial owner- occupied 670 2 1,281 25 2,212 59 Residential real estate: Real estate - residential - ITIN 7,961 162 8,939 165 9,679 141 Real estate - residential - 1-4 family mortgage 1,019 — 1,788 — 1,786 — Real estate - residential - equity lines 1,104 19 1,535 26 750 27 Consumer and other 72 — 162 — 33 — Total $ 15,585 $ 275 $ 18,323 $ 286 $ 25,299 $ 298 The impaired loans on which these interest income amounts were recognized are primarily accruing troubled debt restructured loans. Loans are reported as troubled debt restructurings when we grant a concession(s) to a borrower experiencing financial difficulties that we would not not Troubled Debt Restructurings At December 31, 2017 December 31, 2016, d loans of $7.3 $7.1 For a restructured loan to be on accrual status, the loan ’s collateral coverage must generally be greater than or equal to 100% December 31, 2017, one $33 no December 31, 2016. As of December 31, 2017, $10.9 $12.1 December 31, 2016. December 31, 2017, 116 110 1.24% December 31, 2017, 1.50% December 31, 2016. The types of modifications offered can generally be described in the following categories: Rate – A modification in which the interest rate is changed. Maturity – A modification in which the maturity date is changed. Payment deferral – A modification in which a portion of the principal is deferred. Principal r eduction The following tables present the period ended balances of newly restructured loans and the types of modifications that occurred during the years ended December 31, 2017, 2016 2015. For The Year Ended December 31, 2017 Rate & (Amounts in thousands) Rate & Principal Payment Payment Troubled Debt Restructuring Modification Types Maturity Reduction Deferral Maturity Deferral Total Residential real estate: Real estate - residential - ITIN $ — $ — $ 60 $ — $ — $ 60 Total $ — $ — $ 60 $ — $ — $ 60 For The Year Ended December 31, 2016 Rate & (Amounts in thousands) Rate & Principal Payment Payment Troubled Debt Restructuring Modification Types Maturity Reduction Deferral Maturity Deferral Total Commercial $ 905 $ — $ — $ 1,120 $ — $ 2,025 Residential real estate: Real estate - residential - ITIN — 81 — — 197 278 Real estate - residential - 1-4 family mortgage 144 — — — — 144 Total $ 1,049 $ 81 $ — $ 1,120 $ 197 $ 2,447 For The Year Ended December 31, 2015 Rate & (Amounts in thousands) Rate & Payment Payment Troubled Debt Restructuring Modification Types Rate Maturity Deferral Maturity Deferral Total Commercial $ — $ 39 $ — $ — $ 708 $ 747 Residential real estate: Real estate - residential - ITIN 115 — 264 — 379 758 Total $ 115 $ 39 $ 264 $ — $ 1,087 $ 1,505 For the years ended December 31, 2017, 2016, 2015, 2017 Pre-Modification Post-Modification (Amounts in thousands) Number of Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Contracts Investment Investment Residential real estate: Real estate - residential - ITIN 1 $ 81 $ 61 Total 1 $ 81 $ 61 2016 Pre-Modification Post-Modification (Amounts in thousands) Number of Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Contracts Investment Investment Commercial 4 $ 2,244 $ 2,266 Residential real estate: Real estate - residential - ITIN 3 372 342 Real estate - residential - 1-4 family mortgage 1 144 144 Total 8 $ 2,760 $ 2,752 2015 Pre-Modification Post-Modification (Amounts in thousands) Number of Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Contracts Investment Investment Commercial 2 $ 872 $ 872 Residential real estate: Real estate - residential - ITIN 11 1,237 1,023 Total 13 $ 2,109 $ 1,895 There were no 12 months ended December 31, 2017, 2016 2015, twelve December 31, 2017, 2016 2015, Per forming and Nonperforming Loans We define a performing loan as a loan where any installment of principal or interest is not 90 may 90 not Performing and nonperforming loans, segregated by loan portfolio, are as follows at December 31, 2017 2016. (Amounts in thousands) December 31, 2017 Performing and Nonperforming Loans Performing Nonperforming Total Commercial $ 147,485 $ 1,603 $ 149,088 Commercial real estate: Real estate - construction and land development 15,902 — 15,902 Real estate - commercial non-owner occupied 377,668 — 377,668 Real estate - commercial owner occupied 184,740 600 185,340 Residential real estate: Real estate - residential - ITIN 38,279 2,909 41,188 Real estate - residential - 1-4 family mortgage 29,771 606 30,377 Real estate - residential - equity lines 30,302 45 30,347 Consumer and other 49,889 36 49,925 Total $ 874,036 $ 5,799 $ 879,835 (Amounts in thousands) December 31, 2016 Performing and Nonperforming Loans Performing Nonperforming Total Commercial $ 151,095 $ 2,749 $ 153,844 Commercial real estate: Real estate - construction and land development 36,792 — 36,792 Real estate - commercial non-owner occupied 291,419 1,196 292,615 Real estate - commercial owner occupied 166,551 784 167,335 Residential real estate: Real estate - residential - ITIN 41,990 3,576 45,566 Real estate - residential - 1-4 family mortgage 18,511 1,914 20,425 Real estate - residential - equity lines 35,036 917 35,953 Consumer and other 51,431 250 51,681 Total $ 792,825 $ 11,386 $ 804,211 Credit Quality Ratings Management assigns a credit quality rating (risk grade) to each loan. The foundation or primary factor in determining the appropriate credit quality rating is the degree of a debtor ’s willingness and ability to perform as agreed. In conjunction with evaluating the performing versus nonperforming nature of our loan portfolio, management evaluates the following credit risk and other relevant factors in determining the appropriate credit quality indicator (rating) for each loan portfolio: Pass Grade: A Pass loan is a strong credit with no may ● Strong Cash Flows – borrower’s cash flows must meet or exceed our minimum debt service coverage ratio. ● Collateral Margin – generally, the borrower must have pledged an acceptable collateral class with an adequate collateral margin. ● Qualitative Factors – in addition to meeting our minimum cash flow and collateral requirements, a number of other qualitative factors are also factored into assigning a Pass Grade including the borrower’s level of leverage (debt to equity), prospects, history and experience in their industry, credit history, and any other relevant factors including a borrower’s character. Those borrowers who qualify for unsecured loans must fully demonstrate above average cash flows and strong secondary sources of repayment to mitigate the lack of unpledged collateral. Watch Grade: The credit is acceptable but the borrower has experienced a temporary setback or adverse information has been received, and may one not ● The primary source of repayment may ● The primary source of repayment is adequate, but the secondary source of repayment is insufficient ● In-depth financial analysis would compare to the lower quartile in two ● Volatile or deteriorating collateral ● Management decisions may ● Delinquencies in bank credits or other financial/trade creditors ● Frequent overdrafts ● Significant change in management/ownership Special Mention Grade: Credits in this grade are potentially weak and deserve management's close attention. If left uncorrected, these potential weaknesses may not not not ● Inadequate or incomplete loan documentation or perfection of collateral, or any other deviation from prudent lending practices ● Credit is structured in a manner in which the timing of the repayment source does not ● Current economic or market conditions exist which may ● Adverse trends in the borrower's operations or continued deterioration in the borrower ’s financial condition that has not ● The borrower is less than cooperative or unable to produce current and adequate financial information Substandard Grade: A Substandard credit is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Substandard credits have a well-defined weakness or weaknesses that jeopardize the liquidation or timely collection of the debt. Substandard credits are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not not may may not The following represents, but is not not ● Sustained or substantial deteriorating financial trends, ● Unresolved management problems, ● Collateral is insufficient to repay debt; collateral is not ● Improper perfection of lien position, which is not ● Unanticipated and severe decline in market values, ● High reliance on secondary source of repayment, ● Legal proceedings, such as bankruptcy or a divorce, which has substantially decreased the borrower ’s capacity to repay the debt, ● Fraud committed by the borrower, ● IRS liens that take precedence, ● Forfeiture statutes for assets involved in criminal activities, ● Protracted repayment terms outside of policy that are for longer than the same type of credit in our portfolio, ● Any other relevant quantitative or qualitative factor that negatively affects the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Doubtful Grade: A Doubtful loan has all the weaknesses inherent in one may may may not ● Proposed merger(s), ● Acquisition or liquidation procedures, ● Capital injection, ● Perfecting liens on additional collateral, ● Refinancing plans. Generally, a Doubtful Grade does not six six The following table summarizes loans by internal risk grades and by loan portfolio as of December 31, 2017, December 31, 2016 December 31, 2017 Special (Amounts in thousands) Pass Watch Mention Substandard Doubtful Total Commercial $ 117,087 $ 28,896 $ 40 $ 3,065 $ — $ 149,088 Commercial real estate: Real estate - construction and land development 14,762 — 1,140 — — 15,902 Real estate - commercial non-owner occupied 364,230 9,160 2,900 1,378 — 377,668 Real estate - commercial owner occupied 171,005 8,515 3,907 1,913 — 185,340 Residential real estate: Real estate - residential - ITIN 34,923 — — 6,265 — 41,188 Real estate - residential - 1-4 family mortgage 28,981 791 — 605 — 30,377 Real estate - residential - equity lines 28,457 1,501 63 326 — 30,347 Consumer and other 49,887 — 2 36 — 49,925 Total $ 809,332 $ 48,863 $ 8,052 $ 13,588 $ — $ 879,835 December 31, 2016 Special (Amounts in thousands) Pass Watch Mention Substandard Doubtful Total Commercial $ 124,089 $ 21,684 $ 4,570 $ 3,501 $ — $ 153,844 Commercial real estate: Real estate - construction and land development 36,782 10 — — — 36,792 Real estate - commercial non-owner occupied 284,099 5,398 1,321 1,797 — 292,615 Real estate - commercial owner occupied 157,064 7,301 496 2,474 — 167,335 Residential real estate: Real estate - residential - ITIN 38,279 — — 7,287 — 45,566 Real estate - residential - 1-4 family mortgage 17,696 815 — 1,914 — 20,425 Real estate - residential - equity lines 33,828 858 — 1,267 — 35,953 Consumer and other 51,398 2 — 281 — 51,681 Total $ 743,235 $ 36,068 $ 6,387 $ 18,521 $ — $ 804,211 The recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure was $530 December 31, 2017. Allowance for Loan and Lease Losses The following tables below summarize the ALLL by loan portfolio for the years ended December 31, 2017, 2016, 2015. As of December 31, 2017 (Amounts in thousands) Commercial Residential ALLL by Loan Portfolio Commercial Real Estate Real Estate Consumer Unallocated Total Beginning balance $ 2,849 $ 5,578 $ 1,716 $ 955 $ 446 $ 11,544 Charge-offs (51 ) — (483 ) (968 ) — (1,502 ) Recoveries 512 27 178 216 — 933 Provision (818 ) 814 (242 ) 1,232 (36 ) 950 Ending balance $ 2,492 $ 6,419 $ 1,169 $ 1,435 $ 410 $ 11,925 As of December 31, 2016 (Amounts in thousands) Commercial Residential ALLL by Loan Portfolio Commercial Real Estate Real Estate Consumer Unallocated Total Beginning balance $ 2,493 $ 5,784 $ 1,577 $ 770 $ 556 $ 11,180 Charge-offs (1,106 ) (37 ) (829 ) (812 ) — (2,784 ) Recoveries 427 2,480 114 127 — 3,148 Provision 1,035 (2,649 ) 854 870 (110 ) — Ending balance $ 2,849 $ 5,578 $ 1,716 $ 955 $ 446 $ 11,544 As of December 31, 2015 (Amounts in thousands) Commercial Residential ALLL by Loan Portfolio Commercial Real Estate Real Estate Consumer Unallocated Total Beginning balance $ 3,503 $ 4,875 $ 1,670 $ 450 $ 322 $ 10,820 Charge-offs (700 ) (428 ) (749 ) (499 ) — (2,376 ) Recoveries 1,692 771 273 — — 2,736 Provision (2,002 ) 566 383 819 234 — Ending balance $ 2,493 $ 5,784 $ 1,577 $ 770 $ 556 $ 11,180 The following tables summarize the ALLL and the recorded investment in loans and leases as of December 31, 2017, 2016 2015 As of December 31, 2017 Commercial Residential (Amounts in thousands) Commercial Real Estate Real Estate Consumer Unallocated Total ALLL: Individually evaluated for impairment $ 690 $ 77 $ 391 $ 11 $ — $ 1,169 Collectively evaluated for impairment 1,802 6,342 778 1,424 410 10,756 Total 2,492 6,419 1,169 1,435 410 11,925 Gross loans: Individually evaluated for impairment $ 3,154 $ 1,403 $ 8,554 $ 36 $ — $ 13,147 Collectively evaluated for impairment 145,934 577,507 93,358 49,889 — 866,688 Total gross loans $ 149,088 $ 578,910 $ 101,912 $ 49,925 $ — $ 879,835 As of December 31, 2016 Commercial Residential (Amounts in thousands) Commercial Real Estate Real Estate Consumer Unallocated Total ALLL: Individually evaluated for impairment $ 641 $ 85 $ 721 $ 14 $ — $ 1,461 Collectively evaluated for impairment 2,208 5,493 995 941 446 10,083 Total 2,849 5,578 1,716 955 446 11,544 Gross loans: Individually evaluated for impairment $ 3,525 $ 3,125 $ 11,894 $ 250 $ — $ 18,794 Collectively evaluated for impairment 150,319 493,617 90,050 51,431 — 785,417 Total gross loans $ 153,844 $ 496,742 $ 101,944 $ 51,681 $ — $ 804,211 As of December 31, 2015 Commercial Residential (Amounts in thousands) Commercial Real Estate Real Estate Consumer Unallocated Total ALLL: Individually evaluated for impairment $ 122 $ 97 $ 600 $ 13 $ — $ 832 Collectively evaluated for impairment 2,371 5,687 977 757 556 10,348 Total 2,493 5,784 1,577 770 556 11,180 Gross loans: Individually evaluated for impairment $ 2,043 $ 7,733 $ 11,582 $ 32 $ — $ 21,390 Collectively evaluated for impairment 130,762 420,259 94,387 49,841 — 695,249 Total gross loans $ 132,805 $ 427,992 $ 105,969 $ 49,873 $ — $ 716,639 The ALLL totaled $11.9 1.36% December 31, 2017 $11.5 1.44% December 31, 2016. December 31, 2017 December 31, 2016, $227.7 $229.4 Other Liabilities Consolidated Balance Sheets December 31, 2017 2016 $695 The ALLL is based upon estimates of future loan and lease losses and is maintained at a level considered adequate to provide for probable losses inherent in the outstanding loan portfolio. Our ALLL methodology incorporates management ’s current judgments, and reflects management’s estimate of future loan and lease losses and risks inherent in the loan portfolio in accordance with ASC Topic 450 Contingencies 310 Receivables. The allowance is increased by provisions charged to expense and reduced by net charge-offs. In periodic evaluations of the adequacy of the allowance balance, management considers past loan and lease loss experience by type of credit, known and inherent risks in the portfolio, adverse situations that may ’s ability to repay, the estimated value of any underlying collateral, current economic conditions and other factors. We formally assess the adequacy of the ALLL on a monthly basis. These assessments include the periodic re-grading of classified loans based on changes in their individual credit characteristics including delinquency, seasoning, recent financial performance of the borrower, economic factors, changes in the interest rate environment and other factors as warranted. Loans are initially rated when originated. They are reviewed as they are renewed, when there is a new loan to the same borrower and/or when identified facts demonstrate heightened risk of default. Confirmation of the quality of our grading process is obtained by independent reviews conducted by outside consultants specifically hired for this purpose and by periodic examination by various bank regulatory agencies. Management monitors delinquent loans continuously and identifies problem loans to be evaluated individually for impairment testing. For loans that are determined impaired, a formal impairment measurement is performed at least quarterly on a loan-by-loan basis. Our method for assessing the appropriateness of the allowance includes specific allowances for identified problem loans, an allowance factor for categories of credits and allowances for changing environmental factors (e.g., portfolio trends, concentration of credit, growth, economic factors). Allowances for identified problem loans are based on specific analysis of individual credits. Loss estimation factors for loan categories are based on analysis of local economic factors applicable to each loan category. Allowances for changing environmental factors are management ’s best estimate of the probable impact these changes have had on the loan portfolio as a whole. We believe that the ALLL was adequate as of December 31, 2017. no not may As of December 31, 2017, 77% may may may Impaired loans are individually evaluated for impairment. If the measurement of each impaired loans ’ value is less than the recorded investment in the loan, we recognize this impairment and adjust the carrying value of the loan to fair value through the ALLL. For collateral dependent loans, this can be accomplished by charging off the impaired portion of the loan based on the underlying value of the collateral. For non-collateral dependent loans, we establish a specific component within the ALLL based on the present value of the future cash flows. If we determine the sources of repayment will not The unallocated portion of the ALLL provides for coverage of credit losses inherent in the loan portfolio but not December 31, 2017, 3% 4% December 31, 2016. While the ALLL composition is an indication of specific amounts or loan categories in which future charge-offs may may We have lending policies and procedures in place with the objective of optimizing loan income within an accepted risk tolerance level. We review and approve these policies and procedures annually. Monitoring and reporting systems supplement the review process with regular frequency as related to loan production, loan quality, concentrations of credit, potential problem loans, loan delinquencies, and nonperforming loans. The following is a brief summary, by loan type, of management ’s evaluation of the general risk characteristics and underwriting standards: Commercial Loans – Commercial loans are underwritten after evaluating the borrower’s financial ability to maintain profitability including future expansion objectives. In addition, the borrower’s qualitative qualities are evaluated, such as management skills and experience, ethical traits, and overall business acumen. Commercial loans are primarily extended based on the cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The borrower’s cash flow may may Most commercial loans are generally secured by the assets being financed and other business assets such as accounts receivable or inventory. Management may may may Commercial Real Estate (“CRE”) Loans – CRE loans are subject to similar underwriting standards and processes as commercial loans. CRE loans are viewed predominantly as cash flow loans and secondarily as loans collateralized by real estate. Generally, CRE lending involves larger principal amounts with repayment largely dependent on the successful operation of the property securing the loan or the business conducted on the collateralized property. CRE loans tend to be more adversely affected by conditions in the real estate markets or by general economic conditions. The properties securing the CRE portfolio are diverse in terms of type and primary source of repayment. This diversity helps reduce our exposure to adverse economic events that affect any single industry. We monitor and evaluate CRE loans based on occupancy status (investor versus owner occupied), collateral, geography, and risk grade criteria. Generally, CRE loans are made to developers and builders that are secured by non-owner occupied properties require the borrower to have had an existing relationship with the Company and a proven record of success. Construction loans are underwritten utilizing feasibility studies, sensitivity analysis of absorption and lease rates, and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of cost and value associated with the complete project (as-is value). These estimates may may Residential Real Estate Loans – We do not We originate some single family residence construction loans. The loan amounts are no $1 12 may Consumer Loans – Our consumer loan originations are generally limited to home equity loans with nominal originations in unsecured personal loans. The portfolio also includes unsecured consumer home improvement loans and residential solar panel loans secured by UCC filings. We are highly dependent on third not 80%, one We maintain an independent loan review program that reviews and validates the credit risk program on a periodic basis. Results of these reviews are presented to the Board of Directors and Audit Committee. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as our policies and procedures. Management ’s continuing evaluation of all known relevant quantitative and qualitative internal and external risk factors provides the foundation for the three 1 450, 450” 2 450 3 310, 310” three may not not no not may Our loan portfolio is evaluated by general loan class including commercial, commercial real estate (which includes construction and other real estate), residential real estate (which includes 1 4 450, General valuation allowances, as prescribed by ASC 450," id="sjs-B4">NOTE 5. Outstanding loan balances consist of the following at December 31, 2017, December 31, 2016. As of (Amounts in thousands) December 31, Loan Portfolio 2017 2016 Commercial $ 149,088 $ 153,844 Commercial real estate: Real estate – construction and land development 15,902 36,792 Real estate – commercial non-owner occupied 377,668 292,615 Real estate – commercial owner occupied 185,340 167,335 Residential real estate: Real estate – residential - Individual Tax Identification Number ("ITIN") 41,188 45,566 Real estate – residential - 1-4 family mortgage 30,377 20,425 Real estate – residential - equity lines 30,347 35,953 Consumer and other 49,925 51,681 Gross loans 879,835 804,211 Deferred fees and costs 1,710 1,324 Loans, net of deferred fees and costs 881,545 805,535 Allowance for loan and lease losses (11,925 ) (11,544 ) Net loans $ 869,620 $ 793,991 Past Due Loans When we purchase loans they are typically purchased at a discount to enhance yield and compensate for credit risk. Gross loan balances in the table above include net purchase discounts of $2.8 $2.9 December 31, 2017, December 31, 2016, An age analysis of past due loans (gross), segregated by loan portfolio, as of December 31, 2017, December 31, 2016, Greater Recorded (Amounts in thousands) 30-59 60-89 Than 90 Investment > Past Due Loans at Days Past Days Past Days Past Total Past 90 Days and December 31, 2017 Due Due Due Due Current Total Accruing Commercial $ — $ — $ — $ — $ 149,088 $ 149,088 $ — Commercial real estate: Real estate - construction and land development — — — — 15,902 15,902 — Real estate - commercial non-owner occupied — — — — 377,668 377,668 — Real estate - commercial owner occupied 142 — — 142 185,198 185,340 — Residential real estate: Real estate - residential - ITIN 555 122 462 1,139 40,049 41,188 — Real estate - residential - 1-4 family mortgage 290 173 — 463 29,914 30,377 — Real estate - residential - equity lines 141 — — 141 30,206 30,347 — Consumer and other 281 123 — 404 49,521 49,925 — Total $ 1,409 $ 418 $ 462 $ 2,289 $ 877,546 $ 879,835 $ — Greater Recorded (Amounts in thousands) 30-59 60-89 Than 90 Investment > Past Due Loans at Days Past Days Past Days Past Total Past 90 Days and December 31, 2016 Due Due Due Due Current Total Accruing Commercial $ 51 $ — $ — $ 51 $ 153,793 $ 153,844 $ — Commercial real estate: Real estate - construction and land development — — — — 36,792 36,792 — Real estate - commercial non-owner occupied — — 1,196 1,196 291,419 292,615 — Real estate - commercial owner occupied — — 114 114 167,221 167,335 — Residential real estate: Real estate - residential - ITIN 567 80 1,149 1,796 43,770 45,566 — Real estate - residential - 1-4 family mortgage 147 — 856 1,003 19,422 20,425 — Real estate - residential - equity lines 68 36 48 152 35,801 35,953 — Consumer and other 166 70 11 247 51,434 51,681 — Total $ 999 $ 186 $ 3,374 $ 4,559 $ 799,652 $ 804,211 $ — Nonaccrual Loans Nonaccrual loans, segregated by loan portfolio, were as follows as of December 31, 2017 , and December 31, 2016. As of (Amounts in thousands) December 31, Nonaccrual Loans 2017 2016 Commercial $ 1,603 $ 2,749 Commercial real estate: Real estate - commercial non-owner occupied — 1,196 Real estate - commercial owner occupied 600 784 Residential real estate: Real estate - residential - ITIN 2,909 3,576 Real estate - residential - 1-4 family mortgage 606 1,914 Real estate - residential - equity lines 45 917 Consumer and other 36 250 Total $ 5,799 $ 11,386 Had nonaccrual loans performed in accordance with their contractual terms, we would have recognized additional interest income, net of tax, of approximately $226 $353 $228 December 31, 2017, 2016, 2015, Impaired Loans The following tables summarize impaired loans by loan portfolio as of December 31, 2017, December 31, 2016. As of December 31, 2017 Unpaid (Amounts in thousands) Recorded Principal Related Impaired Loans Investment Balance Allowance With no related allowance recorded: Commercial $ 672 $ 1,205 $ — Commercial real estate: Real estate - commercial non-owner occupied — — — Real estate - commercial owner-occupied 600 665 — Residential real estate: Real estate - residential - ITIN 5,895 7,516 — Real estate - residential - 1-4 family mortgage 414 897 — Real estate - residential - equity lines 45 49 — Consumer and other — — — Total with no related allowance recorded $ 7,626 $ 10,332 $ — With an allowance recorded: Commercial $ 2,482 $ 2,540 $ 690 Commercial real estate: Real estate - commercial non-owner occupied 803 803 77 Real estate - commercial owner-occupied — — — Residential real estate: Real estate - residential - ITIN 1,628 1,678 199 Real estate - residential - 1-4 family mortgage 192 226 2 Real estate - residential - equity lines 380 380 190 Consumer and other 36 36 11 Total with an allowance recorded $ 5,521 $ 5,663 $ 1,169 By loan portfolio: Commercial $ 3,154 $ 3,745 $ 690 Commercial real estate 1,403 1,468 77 Residential real estate 8,554 10,746 391 Consumer and other 36 36 11 Total impaired loans $ 13,147 $ 15,995 $ 1,169 As of December 31, 2016 Unpaid (Amounts in thousands) Recorded Principal Related Impaired Loans Investment Balance Allowance With no related allowance recorded: Commercial $ 1,573 $ 2,438 $ — Commercial real estate: Real estate - commercial non-owner occupied 1,196 1,196 — Real estate - commercial owner-occupied 784 $ 841 — Residential real estate: Real estate - residential - ITIN 6,047 7,685 — Real estate - residential - 1-4 family mortgage 1,914 2,722 — Real estate - residential - equity lines 917 1,342 — Consumer and other 210 216 — Total with no related allowance recorded $ 12,641 $ 16,440 $ — With an allowance recorded: Commercial $ 1,952 $ 1,957 $ 641 Commercial real estate: Real estate - commercial non-owner occupied 808 808 21 Real estate - commercial owner-occupied 337 337 64 Residential real estate: Real estate - residential - ITIN 2,562 2,617 494 Real estate - residential - equity lines 454 454 227 Consumer and other 40 40 14 Total with an allowance recorded $ 6,153 $ 6,213 $ 1,461 By loan portfolio: Commercial $ 3,525 $ 4,395 $ 641 Commercial real estate 3,125 3,182 85 Residential real estate 11,894 14,820 721 Consumer and other 250 256 14 Total impaired loans $ 18,794 $ 22,653 $ 1,461 The following table summarizes average recorded investment and interest income recognized on impaired loans by loan portfolio for the years ended December 31, 2017, 2016 2015. 2017 2016 2015 Average Interest Average Interest Average Interest (Amounts in thousands) Recorded Income Recorded Income Recorded Income Average Recorded Investment and Interest Income Investment Recognized Investment Recognized Investment Recognized Commercial $ 3,211 $ 46 $ 2,605 $ 23 $ 3,533 $ 22 Commercial real estate: Real estate - commercial non-owner occupied 1,548 46 2,013 47 7,306 49 Real estate - commercial owner- occupied 670 2 1,281 25 2,212 59 Residential real estate: Real estate - residential - ITIN 7,961 162 8,939 165 9,679 141 Real estate - residential - 1-4 family mortgage 1,019 — 1,788 — 1,786 — Real estate - residential - equity lines 1,104 19 1,535 26 750 27 Consumer and other 72 — 162 — 33 — Total $ 15,585 $ 275 $ 18,323 $ 286 $ 25,299 $ 298 The impaired loans on which these interest income amounts were recognized are primarily accruing troubled debt restructured loans. Loans are reported as troubled debt restructurings when we grant a concession(s) to a borrower experiencing financial difficulties that we would not not Troubled Debt Restructurings At December 31, 2017 December 31, 2016, d loans of $7.3 $7.1 For a restructured loan to be on accrual status, the loan ’s collateral coverage must generally be greater than or equal to 100% December 31, 2017, one $33 no December 31, 2016. As of December 31, 2017, $10.9 $12.1 December 31, 2016. December 31, 2017, 116 110 1.24% December 31, 2017, 1.50% December 31, 2016. The types of modifications offered can generally be described in the following categories: Rate – A modification in which the interest rate is changed. Maturity – A modification in which the maturity date is changed. Payment deferral – A modification in which a portion of the principal is deferred. Principal r eduction The following tables present the period ended balances of newly restructured loans and the types of modifications that occurred during the years ended December 31, 2017, 2016 2015. For The Year Ended December 31, 2017 Rate & (Amounts in thousands) Rate & Principal Payment Payment Troubled Debt Restructuring Modification Types Maturity Reduction Deferral Maturity Deferral Total Residential real estate: Real estate - residential - ITIN $ — $ — $ 60 $ — $ — $ 60 Total $ — $ — $ 60 $ — $ — $ 60 For The Year Ended December 31, 2016 Rate & (Amounts in thousands) Rate & Principal Payment Payment Troubled Debt Restructuring Modification Types Maturity Reduction Deferral Maturity Deferral Total Commercial $ 905 $ — $ — $ 1,120 $ — $ 2,025 Residential real estate: Real estate - residential - ITIN — 81 — — 197 278 Real estate - residential - 1-4 family mortgage 144 — — — — 144 Total $ 1,049 $ 81 $ — $ 1,120 $ 197 $ 2,447 For The Year Ended December 31, 2015 Rate & (Amounts in thousands) Rate & Payment Payment Troubled Debt Restructuring Modification Types Rate Maturity Deferral Maturity Deferral Total Commercial $ — $ 39 $ — $ — $ 708 $ 747 Residential real estate: Real estate - residential - ITIN 115 — 264 — 379 758 Total $ 115 $ 39 $ 264 $ — $ 1,087 $ 1,505 For the years ended December 31, 2017, 2016, 2015, 2017 Pre-Modification Post-Modification (Amounts in thousands) Number of Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Contracts Investment Investment Residential real estate: Real estate - residential - ITIN 1 $ 81 $ 61 Total 1 $ 81 $ 61 2016 Pre-Modification Post-Modification (Amounts in thousands) Number of Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Contracts Investment Investment Commercial 4 $ 2,244 $ 2,266 Residential real estate: Real estate - residential - ITIN 3 372 342 Real estate - residential - 1-4 family mortgage 1 144 144 Total 8 $ 2,760 $ 2,752 2015 Pre-Modification Post-Modification (Amounts in thousands) Number of Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Contracts Investment Investment Commercial 2 $ 872 $ 872 Residential real estate: Real estate - residential - ITIN 11 1,237 1,023 Total 13 $ 2,109 $ 1,895 There were no 12 months ended December 31, 2017, 2016 2015, twelve December 31, 2017, 2016 2015, Per forming and Nonperforming Loans We define a performing loan as a loan where any installment of principal or interest is not 90 may 90 not Performing and nonperforming loans, segregated by loan portfolio, are as follows at December 31, 2017 2016. (Amounts in thousands) December 31, 2017 Performing and Nonperforming Loans Performing Nonperforming Total Commercial $ 147,485 $ 1,603 $ 149,088 Commercial real estate: Real estate - construction and land development 15,902 — 15,902 Real estate - commercial non-owner occupied 377,668 — 377,668 Real estate - commercial owner occupied 184,740 600 185,340 Residential real estate: Real estate - residential - ITIN 38,279 2,909 41,188 Real estate - residential - 1-4 family mortgage 29,771 606 30,377 Real estate - residential - equity lines 30,302 45 30,347 Consumer and other 49,889 36 49,925 Total $ 874,036 $ 5,799 $ 879,835 (Amounts in thousands) December 31, 2016 Performing and Nonperforming Loans Performing Nonperforming Total Commercial $ 151,095 $ 2,749 $ 153,844 Commercial real estate: Real estate - construction and land development 36,792 — 36,792 Real estate - commercial non-owner occupied 291,419 1,196 292,615 Real estate - commercial owner occupied 166,551 784 167,335 Residential real estate: Real estate - residential - ITIN 41,990 3,576 45,566 Real estate - residential - 1-4 family mortgage 18,511 1,914 20,425 Real estate - residential - equity lines 35,036 917 35,953 Consumer and other 51,431 250 51,681 Total $ 792,825 $ 11,386 $ 804,211 Credit Quality Ratings Management assigns a credit quality rating (risk grade) to each loan. The foundation or primary factor in determining the appropriate credit quality rating is the degree of a debtor ’s willingness and ability to perform as agreed. In conjunction with evaluating the performing versus nonperforming nature of our loan portfolio, management evaluates the following credit risk and other relevant factors in determining the appropriate credit quality indicator (rating) for each loan portfolio: Pass Grade: A Pass loan is a strong credit with no may ● Strong Cash Flows – borrower’s cash flows must meet or exceed our minimum debt service coverage ratio. ● Collateral Margin – generally, the borrower must have pledged an acceptable collateral class with an adequate collateral margin. ● Qualitative Factors – in addition to meeting our minimum cash flow and collateral requirements, a number of other qualitative factors are also factored into assigning a Pass Grade including the borrower’s level of leverage (debt to equity), prospects, history and experience in their industry, credit history, and any other relevant factors including a borrower’s character. Those borrowers who qualify for unsecured loans must fully demonstrate above average cash flows and strong secondary sources of repayment to mitigate the lack of unpledged collateral. Watch Grade: The credit is acceptable but the borrower has experienced a temporary setback or adverse information has been received, and may one not ● The primary source of repayment may ● The primary source of repayment is adequate, but the secondary source of repayment is insufficient ● In-depth financial analysis would compare to the lower quartile in two ● Volatile or deteriorating collateral ● Management decisions may ● Delinquencies in bank credits or other financial/trade creditors ● Frequent overdrafts ● Significant change in management/ownership Special Mention Grade: Credits in this grade are potentially weak and deserve management's close attention. If left uncorrected, these potential weaknesses may not not not ● Inadequate or incomplete loan documentation or perfection of collateral, or any other deviation from prudent lending practices ● Credit is structured in a manner in which the timing of the repayment source does not ● Current economic or market conditions exist which may ● Adverse trends in the borrower's operations or continued deterioration in the borrower ’s financial condition that has not ● The borrower is less than cooperative or unable to produce current and adequate financial information Substandard Grade: A Substandard credit is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Substandard credits have a well-defined weakness or weaknesses that jeopardize the liquidation or timely collection of the debt. Substandard credits are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not not may may not The following represents, but is not not ● Sustained or substantial deteriorating financial trends, ● Unresolved management problems, ● Collateral is insufficient to repay debt; collateral is not ● Improper perfection of lien position, which is not ● Unanticipated and severe decline in market values, ● High reliance on secondary source of repayment, ● Legal proceedings, such as bankruptcy or a divorce, which has substantially decreased the borrower ’s capacity to repay the debt, ● Fraud committed by the borrower, ● IRS liens that take precedence, ● Forfeiture statutes for assets involved in criminal activities, ● Protracted repayment terms outside of policy that are for longer than the same type of credit in our portfolio, ● Any other relevant quantitative or qualitative factor that negatively affects the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Doubtful Grade: A Doubtful loan has all the weaknesses inherent in one may may may not ● Proposed merger(s), ● Acquisition or liquidation procedures, ● Capital injection, ● Perfecting liens on additional collateral, ● Refinancing plans. Generally, a Doubtful Grade does not six six The following table summarizes loans by internal risk grades and by loan portfolio as of December 31, 2017, December 31, 2016 December 31, 2017 Special (Amounts in thousands) Pass Watch Mention Substandard Doubtful Total Commercial $ 117,087 $ 28,896 $ 40 $ 3,065 $ — $ 149,088 Commercial real estate: Real estate - construction and land development 14,762 — 1,140 — — 15,902 Real estate - commercial non-owner occupied 364,230 9,160 2,900 1,378 — 377,668 Real estate - commercial owner occupied 171,005 8,515 3,907 1,913 — 185,340 Residential real estate: Real estate - residential - ITIN 34,923 — — 6,265 — 41,188 Real estate - residential - 1-4 family mortgage 28,981 791 — 605 — 30,377 Real estate - residential - equity lines 28,457 1,501 63 326 — 30,347 Consumer and other 49,887 — 2 36 — 49,925 Total $ 809,332 $ 48,863 $ 8,052 $ 13,588 $ — $ 879,835 December 31, 2016 Special (Amounts in thousands) Pass Watch Mention Substandard Doubtful Total Commercial $ 124,089 $ 21,684 $ 4,570 $ 3,501 $ — $ 153,844 Commercial real estate: Real estate - construction and land development 36,782 10 — — — 36,792 Real estate - commercial non-owner occupied 284,099 5,398 1,321 1,797 — 292,615 Real estate - commercial owner occupied 157,064 7,301 496 2,474 — 167,335 Residential real estate: Real estate - residential - ITIN 38,279 — — 7,287 — 45,566 Real estate - residential - 1-4 family mortgage 17,696 815 — 1,914 — 20,425 Real estate - residential - equity lines 33,828 858 — 1,267 — 35,953 Consumer and other 51,398 2 — 281 — 51,681 Total $ 743,235 $ 36,068 $ 6,387 $ 18,521 $ — $ 804,211 The recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure was $530 December 31, 2017. Allowance for Loan and Lease Losses The following tables below summarize the ALLL by loan portfolio for the years ended December 31, 2017, 2016, 2015. As of December 31, 2017 (Amounts in thousands) Commercial Residential ALLL by Loan Portfolio Commercial Real Estate Real Estate Consumer Unallocated Total Beginning balance $ 2,849 $ 5,578 $ 1,716 $ 955 $ 446 $ 11,544 Charge-offs (51 ) — (483 ) (968 ) — (1,502 ) Recoveries 512 27 178 216 — 933 Provision (818 ) 814 (242 ) 1,232 (36 ) 950 Ending balance $ 2,492 $ 6,419 $ 1,169 $ 1,435 $ 410 $ 11,925 As of December 31, 2016 (Amounts in thousands) Commercial Residential ALLL by Loan Portfolio Commercial Real Estate Real Estate Consumer Unallocated Total Beginning balance $ 2,493 $ 5,784 $ 1,577 $ 770 $ 556 $ 11,180 Charge-offs (1,106 ) (37 ) (829 ) (812 ) — (2,784 ) Recoveries 427 2,480 114 127 — 3,148 Provision 1,035 (2,649 ) 854 870 (110 ) — Ending balance $ 2,849 $ 5,578 $ 1,716 $ 955 $ 446 $ 11,544 As of December 31, 2015 (Amounts in thousands) Commercial Residential ALLL by Loan Portfolio Commercial Real Estate Real Estate Consumer Unallocated Total Beginning balance $ 3,503 $ 4,875 $ 1,670 $ 450 $ 322 $ 10,820 Charge-offs (700 ) (428 ) (749 ) (499 ) — (2,376 ) Recoveries 1,692 771 273 — — 2,736 Provision (2,002 ) 566 383 819 234 — Ending balance $ 2,493 $ 5,784 $ 1,577 $ 770 $ 556 $ 11,180 The following tables summarize the ALLL and the recorded investment in loans and leases as of December 31, 2017, 2016 2015 As of December 31, 2017 Commercial Residential (Amounts in thousands) Commercial Real Estate Real Estate Consumer Unallocated Total ALLL: Individually evaluated for impairment $ 690 $ 77 $ 391 $ 11 $ — $ 1,169 Collectively evaluated for impairment 1,802 6,342 778 1,424 410 10,756 Total 2,492 6,419 1,169 1,435 410 11,925 Gross loans: Individually evaluated for impairment $ 3,154 $ 1,403 $ 8,554 $ 36 $ — $ 13,147 Collectively evaluated for impairment 145,934 577,507 93,358 49,889 — 866,688 Total gross loans $ 149,088 $ 578,910 $ 101,912 $ 49,925 $ — $ 879,835 As of December 31, 2016 Commercial Residential (Amounts in thousands) Commercial Real Estate Real Estate Consumer Unallocated Total ALLL: Individually evaluated for impairment $ 641 $ 85 $ 721 $ 14 $ — $ 1,461 Collectively evaluated for impairment 2,208 5,493 995 941 446 10,083 Total 2,849 5,578 1,716 955 446 11,544 Gross loans: Individually evaluated for impairment $ 3,525 $ 3,125 $ 11,894 $ 250 $ — $ 18,794 Collectively evaluated for impairment 150,319 493,617 90,050 51,431 — 785,417 Total gross loans $ 153,844 $ 496,742 $ 101,944 $ 51,681 $ — $ 804,211 As of December 31, 2015 Commercial Residential (Amounts in thousands) Commercial Real Estate Real Estate Consumer Unallocated Total ALLL: Individually evaluated for impairment $ 122 $ 97 $ 600 $ 13 $ — $ 832 Collectively evaluated for impairment 2,371 5,687 977 757 556 10,348 Total 2,493 5,784 1,577 770 556 11,180 Gross loans: Individually evaluated for impairment $ 2,043 $ 7,733 $ 11,582 $ 32 $ — $ 21,390 Collectively evaluated for impairment 130,762 420,259 94,387 49,841 — 695,249 Total gross loans $ 132,805 $ 427,992 $ 105,969 $ 49,873 $ — $ 716,639 The ALLL totaled $11.9 1.36% December 31, 2017 $11.5 1.44% December 31, 2016. December 31, 2017 December 31, 2016, $227.7 $229.4 Other Liabilities Consolidated Balance Sheets December 31, 2017 2016 $695 The ALLL is based upon estimates of future loan and lease losses and is maintained at a level considered adequate to provide for probable losses inherent in the outstanding loan portfolio. Our ALLL methodology incorporates management ’s current judgments, and reflects management’s estimate of future loan and lease losses and risks inherent in the loan portfolio in accordance with ASC Topic 450 Contingencies 310 Receivables. The allowance is increased by provisions charged to expense and reduced by net charge-offs. In periodic evaluations of the adequacy of the allowance balance, management considers past loan and lease loss experience by type of credit, known and inherent risks in the portfolio, adverse situations that may ’s ability to repay, the estimated value of any underlying collateral, current economic conditions and other factors. We formally assess the adequacy of the ALLL on a monthly basis. These assessments include the periodic re-grading of classified loans based on changes in their individual credit characteristics including delinquency, seasoning, recent financial performance of the borrower, economic factors, changes in the interest rate environment and other factors as warranted. Loans are initially rated when originated. They are reviewed as they are renewed, when there is a new loan to the same borrower and/or when identified facts demonstrate heightened risk of default. Confirmation of the quality of our grading process is obtained by independent reviews conducted by outside consultants specifically hired for this purpose and by periodic examination by various bank regulatory agencies. Management monitors delinquent loans continuously and identifies problem loans to be evaluated individually for impairment testing. For loans that are determined impaired, a formal impairment measurement is performed at least quarterly on a loan-by-loan basis. Our method for assessing the appropriateness of the allowance includes specific allowances for identified problem loans, an allowance factor for categories of credits and allowances for changing environmental factors (e.g., portfolio trends, concentration of credit, growth, economic factors). Allowances for identified problem loans are based on specific analysis of individual credits. Loss estimation factors for loan categories are based on analysis of local economic factors applicable to each loan category. Allowances for changing environmental factors are management ’s best estimate of the probable impact these changes have had on the loan portfolio as a whole. We believe that the ALLL was adequate as of December 31, 2017. no not may As of December 31, 2017, 77% may may may Impaired loans are individually evaluated for impairment. If the measurement of each impaired loans ’ value is less than the recorded investment in the loan, we recognize this impairment and adjust the carrying value of the loan to fair value through the ALLL. For collateral dependent loans, this can be accomplished by charging off the impaired portion of the loan based on the underlying value of the collateral. For non-collateral dependent loans, we establish a specific component within the ALLL based on the present value of the future cash flows. If we determine the sources of repayment will not The unallocated portion of the ALLL provides for coverage of credit losses inherent in the loan portfolio but not December 31, 2017, 3% 4% December 31, 2016. While the ALLL composition is an indication of specific amounts or loan categories in which future charge-offs may may We have lending policies and procedures in place with the objective of optimizing loan income within an accepted risk tolerance level. We review and approve these policies and procedures annually. Monitoring and reporting systems supplement the review process with regular frequency as related to loan production, loan quality, concentrations of credit, potential problem loans, loan delinquencies, and nonperforming loans. The following is a brief summary, by loan type, of management ’s evaluation of the general risk characteristics and underwriting standards: Commercial Loans – Commercial loans are underwritten after evaluating the borrower’s financial ability to maintain profitability including future expansion objectives. In addition, the borrower’s qualitative qualities are evaluated, such as management skills and experience, ethical traits, and overall business acumen. Commercial loans are primarily extended based on the cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The borrower’s cash flow may may Most commercial loans are generally secured by the assets being financed and other business assets such as accounts receivable or inventory. Management may may may Commercial Real Estate (“CRE”) Loans – CRE loans are subject to similar underwriting standards and processes as commercial loans. CRE loans are viewed predominantly as cash flow loans and secondarily as loans collateralized by real estate. Generally, CRE lending involves larger principal amounts with repayment largely dependent on the successful operation of the property securing the loan or the business conducted on the collateralized property. CRE loans tend to be more adversely affected by conditions in the real estate markets or by general economic conditions. The properties securing the CRE portfolio are diverse in terms of type and primary source of repayment. This diversity helps reduce our exposure to adverse economic events that affect any single industry. We monitor and evaluate CRE loans based on occupancy status (investor versus owner occupied), collateral, geography, and risk grade criteria. Generally, CRE loans are made to developers and builders that are secured by non-owner occupied properties require the borrower to have had an existing relationship with the Company and a proven record of success. Construction loans are underwritten utilizing feasibility studies, sensitivity analysis of absorption and lease rates, and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of cost and value associated with the complete project (as-is value). These estimates may may Residential Real Estate Loans – We do not We originate some single family residence construction loans. The loan amounts are no $1 12 may Consumer Loans – Our consumer loan originations are generally limited to home equity loans with nominal originations in unsecured personal loans. The portfolio also includes unsecured consumer home improvement loans and residential solar panel loans secured by UCC filings. We are highly dependent on third not 80%, one We maintain an independent loan review program that reviews and validates the credit risk program on a periodic basis. Results of these reviews are presented to the Board of Directors and Audit Committee. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as our policies and procedures. Management ’s continuing evaluation of all known relevant quantitative and qualitative internal and external risk factors provides the foundation for the three 1 450, 450” 2 450 3 310, 310” three may not not no not may Our loan portfolio is evaluated by general loan class including commercial, commercial real estate (which includes construction and other real estate), residential real estate (which includes 1 4 450, General valuation allowances, as prescribed by ASC 450, |
Note 6 - Purchase of Financial
Note 6 - Purchase of Financial Assets | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Transfers and Servicing of Financial Assets [Text Block] | NOTE 6. We have an ongoing agreement to purchase a maximum par value of $50.0 third $50.0 May 12, 2014 December 31, 2017, $118.3 $71.9 $46.4 |
Note 7 - Premises and Equipment
Note 7 - Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 7. The following table presents the major components of premises and equipment at December 31, 2017 2016. (Amounts in thousands) Premises and Equipment 2017 2016 Land $ 2,063 $ 2,063 Land improvements 241 223 Bank buildings 12,976 12,931 Furniture, fixtures and equipment 12,639 12,130 Software 1,634 1,637 Assets not yet placed in service 337 429 Total premises and equipment 29,890 29,413 Less: accumulated depreciation and amortization (15,142 ) (13,187 ) Premises and equipment, net $ 14,748 $ 16,226 We record depreciation expense on a straight-line basis for all depreciable assets. Depreciation expense totaled $2.1 $1.9 $1.5 December 31, 2017, 2016 2015, 1 5, Commitments and Contingencies Notes to Consolidated Financial Statements |
Note 8 - Other Real Estate Owne
Note 8 - Other Real Estate Owned (OREO) | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Real Estate Owned [Text Block] | NOTE 8. (OREO) OREO represents real estate to which we have taken legal title in partial or full satisfaction of loans and properties originally acquired for branch expansion but no noninterest expense Consolidated Statements of Income The following table presents the changes in OREO for the years ended December 31, 2017, 2016, 2015. (Amounts in thousands) Years Ended December 31, OREO 2017 2016 2015 Balance at beginning of year $ 759 $ 1,423 $ 502 Additions 1,071 189 4,059 Dispositions (1,743 ) (745 ) (3,138 ) Valuation adjustments (52 ) (108 ) — Total $ 35 $ 759 $ 1,423 For the year ended December 31, 2017, seven $981 $90 eleven $1.7 $368 one $52 December 31, 2017 one 1 4 $35 |
Note 9 - Intangible Assets
Note 9 - Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | NOTE 9. INTANGIBLE ASSETS In March 2016, $1.8 $665 The core deposit intangible is being amortized on a straight-line basis over the estimated useful life of the deposits, which is eight no is being amortized over 15 As of December 31, 2017, (Amounts in thousands) December 31, Intangibles 2017 Gross carrying amount $ 1,772 Accumulated amortization (407 ) Core deposit intangible, net $ 1,365 The following table sets forth, as of December 31, 2017, (Amounts in thousands) For the year ended December 31, Amount 2018 $ 221 2019 221 2020 221 2021 221 2022 221 2023 and thereafter 260 Total $ 1,365 Goodwill is calculated as the amount of cash paid in excess of the fair value of the net assets acquired in the transaction. Goodwill is not No 2017 is being amortized over 15 25 |
Note 10 - Other Assets
Note 10 - Other Assets | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Other Assets Disclosure [Text Block] | NOTE 1 0 . OTHER ASSETS Other assets consist of the following at December 31, 2017 2016. (Amounts in thousands) 2017 2016 Qualified Zone Academy Bonds $ 4,740 $ 4,740 Federal Home Loan Bank of San Francisco stock 4,537 4,465 Interest receivable 4,462 4,044 Investments in affordable housing partnerships 3,529 4,217 Prepaid expenses 1,132 772 Loan servicing receivables 643 841 Investment in Bank of Commerce Holdings Trust II 310 310 SBA payments in process 179 50 Other 129 917 Total $ 19,661 $ 20,356 |
Note 11 - Deposits
Note 11 - Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Deposit Liabilities Disclosures [Text Block] | NOTE 1 1 . DEPOSITS The following table presents the major types of interest-bearing deposits at December 31, 2017 2016. (Amounts in thousands) As of December 31, Interest-bearing deposits 2017 2016 Interest-bearing demand $ 260,221 $ 198,328 Money market 236,769 207,241 Savings 110,837 113,309 Certificates of deposit, less than $250,000 130,681 159,092 Certificates of deposit, $250,000 and over 58,574 56,298 Total interest-bearing deposits $ 797,082 $ 734,268 The following table presents interest expense for the major types of interest-bearing deposits for the years ended December 31, 2017, 2016 2015. (Amounts in thousands) For the year ended December 31, Deposit Interest Expense 2017 2016 2015 Interest-bearing demand $ 274 $ 201 $ 228 Money market 470 322 232 Savings 200 174 213 Certificates of deposit, less than $250,000 1,429 1,537 1,744 Certificates of deposit, $250,000 and over 759 642 612 Total interest-bearing deposits $ 3,132 $ 2,876 $ 3,029 The following table presents the scheduled maturities of all certificates of deposit as of December 31, 2017. (Amounts in thousands) Amounts due in: 2018 $ 105,219 2019 37,248 2020 23,394 2021 12,925 2022 10,380 Thereafter 89 Total certificates of deposit $ 189,255 The following table presents the scheduled maturities of certificates of deposit of $250 December 31, 2017. (Amounts in thousands) Amounts due in: Three months or less $ 7,872 Over three months through six months 8,268 Over six months through twelve months 8,725 Over twelve months 33,709 Total certificates of deposit of $250 thousand or more $ 58,574 |
Note 12 - Term Debt
Note 12 - Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | NOTE 1 2 . TERM DEBT Term debt at December 31, 2017 2016 (Amounts in thousands) 2017 2016 Senior debt $ 7,096 $ 8,917 Unamortized debt issuance costs (6 ) (12 ) Subordinated debt 10,000 10,000 Unamortized debt issuance costs (132 ) (172 ) Net term debt $ 16,958 $ 18,733 Future contractual maturities of term debt at December 31, 2017 (Amounts in thousands) 2018 2019 2020 2021 2022 Thereafter Total Senior debt $ 1,000 $ 1,000 $ 5,096 $ — $ — $ — $ 7,096 Subordinated debt — — — — — 10,000 10,000 Total future maturities $ 1,000 $ 1,000 $ 5,096 $ — $ — $ 10,000 $ 17,096 Federal Home Loan Bank of San Francisco borrowings The average balance outstanding on Federal Home Loan Bank of San Francisco term advances during the year ended December 31, 2017 December 31, 2016 $302 $18.0 December 31, 2017 December 31, 2016 $10.0 $80.0 no December 31, 2017 December 31, 2016. Senior Debt In December 2015, $10.0 . The original loan terms required monthly principal installments of $83 January 1, 2016, December 10, 2020 $5.0 December 10, 2020. may three 400 December 2015, $15 Subordinated Debt In December 2015, $10.0 Subordinated Notes due in 2025. 6.88% five three 526 December 2015, $210 five The Subordinated Debt is subordinate and junior in right of payment to the prior payment in full of all existing and future claims of creditors and depositors of the Holding Company and its subsidiaries, whether now outstanding or subsequently created. The Subordinated Debt ranks equally with all other unsecured subordinated debt, except any which by its terms is expressly stated to be subordinated to the Subordinated Debt. The Subordinated Debt ranks senior to all future junior subordinated debt obligations, preferred stock and common stock of the Holding Company. The Subordinated Debt is recorded as term debt on the Holding Company’s balance sheet; however, for regulatory purposes, it is treated as Tier 2 The Subordinated Debt will mature on December 10, 2025 may five no |
Note 13 - Junior Subordinated D
Note 13 - Junior Subordinated Debentures | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Capital Requirements on Trust Assets [Text Block] | NOTE 1 3 . JUNIOR SUBORDINATED DEBENTURES As of December 31, 2017 2016, one 2005 . The following table presents information about the Trust as of December 31, 2017 2016. (Amounts in thousands) Issued Effective Redemption Trust Name Issue Date Amount Rate Rate Maturity Date Date Bank of Commerce Holdings Trust II July 29, 2005 $ 10,310 Floating (2) (1) September 15, 2035 (3) ( 1 Effective rate as of December 31, 2017 2016 3.17% 2.54%, ( 2 Contractual interest rate of junior subordinated debentures based on three 1.58% ( 3 Redeemable at the Company’s option on any March 15, June 15, September 15, December 15. The $10.3 December 31, 2017 2016, Consolidated Balance Sheets $310 O ther A ssets Consolidated Balance Sheets December 31, 2017 2016. 1 December 31, 2017 2016, |
Note 14 - Other Liabilities
Note 14 - Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Other Liabilities Disclosure [Text Block] | NOTE 1 4 . OTHER LIABILITIES Other liabilities consist of the following at December 31, 2017 and 2016. (Amounts in thousands) 2017 2016 Deferred compensation – directors fees $ 3,823 $ 3,753 Salary continuation 3,387 3,410 Severance payable 790 820 Accrued employee incentives 1,170 1,109 Reserve for unfunded commitments 695 695 Dividend payable on common stock 486 401 Delayed equity contributions - affordable housing tax credit partnerships 361 485 Deferred income 315 520 Other loan servicing liabilities 235 576 Other 895 1,408 Total $ 12,157 $ 13,177 |
Note 15 - Commitments and Conti
Note 15 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 1 5 . COMMITMENTS AND CONTINGENCIES Lease Commitments – We lease nine one The following table sets forth rent expense and rent income for the years ended December 31, 2017 2016. December 31, (Amounts in thousands) 2017 2016 Rent income (1) $ 46 $ 78 Rent expense 841 707 Net rent expense $ 795 $ 629 ( 1 Rental income is derived from OREO properties The following table sets forth, as of December 31, 2017, (Amounts in thousands) Amounts due in: 2018 $ 845 2019 866 2020 884 2021 899 2022 807 Thereafter 1,367 Total $ 5,668 Financial Instruments with Off-Balance Sheet Risk Our consolidated financial statements do not Consolidated Balance Sheets The following table presents a summary of our commitments and contingent liabilities at December 31. (Amounts in thousands) 2017 2016 Commitments to extend credit $ 217,714 $ 224,082 Standby letters of credit 6,692 1,967 Affordable housing grants 3,338 3,338 Total commitments and contingent liabilities $ 227,744 $ 229,387 We were not December 31, 2017 2016, December 31, 2017, $1.3 one $5.4 Affordable Housing Grants In fulfilling our CRA responsibilities, we are a sponsor for various nonprofit organizations that receive cash grants from the Federal Home Loan Bank of San Francisco. Those grants require the nonprofit organization to comply with stipulated conditions of the grant over specified periods of time which typically vary from 10 15 not Reserve for Unfunded Commitments The reserve for unfunded commitments, which is included in Other Liabilities Consolidated Balance Sheets $695 December 31, 2017 2016. Consolidated Statements of Income. Death Benefit Agreement The Company has entered into agreements with certain employees to pay a cash benefit to designated beneficiaries following the death of the employee. The payment will be made only if, at the time of death, the deceased employee was employed by the Bank and the Bank owned a life insurance policy on the employee’s life. Depending on specific facts and circumstances, the payment amount can vary up to a maximum of $225,000 may Legal Proceedings We are involved in various pending and threatened legal actions arising in the ordinary course of business. We maintain reserves for losses from legal actions, which are both probable and estimable. In our opinion, the disposition of claims currently pending will not Concentrations of Credit Risk We grant real estate construction, commercial, and installment loans to customers throughout northern California. In our judgment, a concentration exists in real estate related loans, which represented approximately 77% 75% December 31, 2017 December 31, 2016, Commercial real estate concentrations are managed to assure wide geographic and business diversity. Although management believes such concentrations have no We recognize the credit risks inherent in dealing with other depository institutions. Accordingly, to prevent excessive exposure to other depository institutions in aggregate or to any single correspondent, we have established general standards for selecting correspondent banks as well as internal limits for allowable exposure to other depository institutions in aggregate or to any single correspondent. In addition, we have an investment policy that sets forth limitations that apply to all investments with respect to credit rating and concentrations with an issuer. |
Note 16 - Employee Benefits and
Note 16 - Employee Benefits and Retirement Plans | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE 16. IREMENT PLANS Profit sharing plan – In 1985, 401 402 100% first 3% 50% 2% $494 $457 $396 December 31, 2017, 2016 2015, No three Salary continuation plan – In April 2001, Benefits under the salary continuation plan differ by participating executive and include a benefit generally payable commencing upon a designated retirement date for a fixed period of ten twenty The Company accrues for these future benefits from the effective date of the agreements until the executives ’ expected final payment date. The amount of accrued benefits approximates the present value of the benefits expected to be provided at retirement. Compensation expense under the salary continuation plan totaled $577 $551 $726 December 31, 2017, 2016 2015, December 31, 2017, 2016 2015, $3.4 $3.4 $3.5 Directors deferred fee compensation – On December 19, 2013, “2013 January 1, 1993 ( “1993 $500 The interest rate in the 2013 20 not two 2013 not No thirty 30 may not 120 Although deferrals under the 1993 1993 1993 3. 00% 10%. may not 180 Deferred compensation expense recorded in other noninterest expense totaled $292 $281 $274 December 31, 2017, 2016, 2015, December 31, 2017, 2016 2015, Other Liabilities Consolidated Balance Sheets $3.8 $3.8 $3.7 |
Note 17 - Federal Funds Purchas
Note 17 - Federal Funds Purchased and Lines of Credit | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Banking and Thrift Disclosure [Text Block] | NOTE 1 7. At December 31, 2017 2016, no no The Bank had the following lines of credit: Federal Funds We have entered into nonbinding federal funds line of credit agreements with three 35.0 December 31, 2017 1.64% 2.29%. may Federal Reserve Bank We have an available line of credit with the Federal Reserve Bank totaling $28.5 Federal Home Loan Bank of San Francisco We have an available line of credit with the Federal Home Loan Bank of San Francisco of $ 334.9 As of December 31, 2017, $4.5 Other Assets Consolidated Balance Sheets 320 321. We have pledged $ 378.3 December 31, 2017, $28.3 |
Note 18 - Shareholders' Equity
Note 18 - Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 1 8. On May 10, 2017, 2,738,096 $10.50 $26.8 e, or repay certain borrowings. On December 11, 2015, ’s preferred stock designated as Senior Non-Cumulative Perpetual Preferred Stock, Series B (the “Series B Preferred Stock”), held by the US Treasury Department under the Small Business Lending Fund Program. The Holding Company paid $20.0 $39 $10.0 6.88% 2025 $10.0 2020 three 400 Stock Plans – The 2008 May 15, 2007 ( 2010 May 18, 2010. May 15, 2012. may 422 1986, may not 100% may December 31, 2017, 198 We recognized $53 $245 December 31, 2017. $10 $156 December 31, 2016 2015, Stock Option Activity The following tables summarize information about stock option activity for the years ended December 31, 2017, 2016 2015. Weighted Weighted Average Average Aggregate Remaining Number Exercise Intrinsic Contractual of Shares Price Value Term Options outstanding December 31, 2015 234,100 $ 5.77 $ 319,483 5.87 Exercised (1,900 ) $ 5.29 $ 4,789 3.33 Forfeited (43,300 ) $ 8.81 $ n/a n/a Options outstanding December 31, 2016 188,900 $ 5.08 $ 834,625 5.66 Exercised (51,900 ) $ 4.73 $ 245,450 4.42 Forfeited (2,500 ) $ 4.05 $ n/a n/a Options outstanding December 31, 2017 134,500 $ 5.24 $ 704,350 4.76 Exercisable at December 31, 2017 118,920 $ 5.13 $ 609,596 4.51 For the Years Ended December 31, (Amounts in thousands, except per share information) 2017 2016 2015 Stock option expense $ 23 $ 24 $ 42 Stock option awards weighted average grant date fair value per share $ — $ — $ 1.33 At December 31, 2017 2016 2015 Unrecognized compensation costs related to non-vested stock option payments $ 17 $ 29 $ 55 Number of exercisable shares 119 157 163 Generally, stock options vest at 20% The unrecognized compensation costs are expected to be recognized over a weighted average period of two Restricted Stock Activity The following tables summarize information about unvested restricted shares and restricted shares granted for the years ended December 31, 2017, 2016 2015. Weighted Weighted Average Average Aggregate Remaining Number Grant Intrinsic Contractual of Shares Price Value Term Unvested restricted shares December 31, 2015 42,676 $ 5.95 $ 285,076 2.49 Granted 65,736 $ 5.74 $ 254,816 1.07 Vested (38,148 ) $ 5.79 $ 229,198 n/a Forfeited (3,084 ) 5.75 n/a n/a Unvested restricted shares December 31, 2016 67,180 $ 5.84 $ 638,210 1.38 Granted 45,070 $ 10.35 $ 466,328 1.32 Vested (37,761 ) $ 5.79 $ 218,600 n/a Unvested restricted shares December 31, 2017 74,489 $ 8.60 $ 640,255 1.03 For the Years Ended December 31, (Amounts in thousands, except per share information) 2017 2016 2015 Restricted stock compensation expense $ 196 $ 215 $ 89 Restricted stock awards weighted average grant date fair value per share $ 10.35 $ 5.74 $ 5.90 At December 31, 2017 2016 2015 Unrecognized compensation costs related to non-vested restricted stock payments $ 811 $ 205 $ 181 Restricted shares vest over a three five no The unrecognized compensation costs are expected to be recognized over a weighted average period of two Stock Grant Activity The following tables summarize information about shares granted as employee compensation for the year ended December 31, 2017. Weighted Stock Average Grant Number Grant Compensation of Shares Price Expense Shares Granted during the year ended December 31, 2017 4,868 $ 10.05 $ 48,923 |
Note 19 - Accumulated Other Com
Note 19 - Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Accumulated Other Comprehensive Income Loss [Text Block] | NOTE 19. The following table presents the components of accumulated other comprehensive loss and the ending balances at December 31, 2017, 2016, 2015, Unrealized Unrealized Accumulated Other Gains (Losses) (Losses) Comprehensive (Amounts in thousands) On Securities On Derivatives Loss Accumulated other comprehensive loss as of December 31, 2015 $ 1,142 $ (1,396 ) $ (254 ) Accumulated other comprehensive loss as of December 31, 2016 $ (659 ) $ — $ (659 ) Accumulated other comprehensive loss as of December 31, 2017 $ (266 ) $ — $ (266 ) Accumulated other comprehensive loss in the table above is reported net of tax. Detailed tax information on the individual components of comprehensive income are presented in the Consolidated Statements of Comprehensive Income |
Note 20 - Regulatory Capital
Note 20 - Regulatory Capital | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | NOTE 2 0. The Holding Company and the Bank are subject to various regulatory capital requirements administered by federal and state 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 our Consolidated Financial Statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. On July 2, 2013, January 1, 2015 d “Common equity tier 1,” 1 1 4.5 2.5 2.5 2016 2019. The new capital rules require the Bank to meet the capital conservation buffer requirement by 2019 When the new capital rule is fully phased in, the minimum capital requirements plus the conservation buffer will exceed the well-capitalized thresholds. This 0.5 percentage-point cushion allows institutions to dip into a portion of their capital conservation buffer before reaching a status that is considered less than well capitalized for prompt corrective action purposes. The capital amounts and the Bank ’s prompt corrective action classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not December 31, 2017 As of December 31, 2017, no ’s capital rating category. The Holding Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2017 2016 Well Minimum Applicable Minimum Capital Capitalized Capital 2017 Capital Ratio plus Capital Capital Actual Requirement Requirement Conservation Conservation Buffer (Amounts in thousands) Amount Ratio Amount Ratio Amount Ratio Buffer Amount Ratio At December 31, 2017: Company Common equity tier 1 capital ratio $ 125,745 12.26 % n/a n/a $ 46,169 4.50 % 1.25 % $ 58,994 5.750 % Tier 1 capital ratio $ 135,745 13.23 % n/a n/a $ 61,559 6.00 % 1.25 % $ 74,384 7.250 % Total capital ratio $ 158,365 15.44 % n/a n/a $ 82,079 8.00 % 1.25 % $ 94,903 9.250 % Tier 1 leverage ratio $ 135,745 10.86 % n/a n/a $ 50,008 4.00 % n/a n/a n/a Bank Common equity tier 1 capital ratio $ 129,139 12.58 % $ 66,703 6.50 % $ 46,179 4.50 % 1.25 % $ 59,006 5.750 % Tier 1 capital ratio $ 129,139 12.58 % $ 82,096 8.00 % $ 61,572 6.00 % 1.25 % $ 74,399 7.250 % Total capital ratio $ 141,760 13.81 % $ 102,620 10.00 % $ 82,096 8.00 % 1.25 % $ 94,923 9.250 % Tier 1 leverage ratio $ 129,139 10.33 % $ 62,486 5.00 % $ 49,989 4.00 % n/a n/a n/a At December 31, 2016: Company Common equity tier 1 capital ratio $ 92,757 9.43 % n/a n/a $ 44,266 4.50 % 0.625 % $ 50,414 5.125 % Tier 1 capital ratio $ 102,496 10.42 % n/a n/a $ 59,021 6.00 % 0.625 % $ 65,169 6.625 % Total capital ratio $ 124,735 12.68 % n/a n/a $ 78,695 8.00 % 0.625 % $ 84,843 8.625 % Tier 1 leverage ratio $ 102,496 9.13 % n/a n/a $ 44,905 4.00 % n/a n/a n/a Bank Common equity tier 1 capital ratio $ 121,098 12.31 % $ 63,962 6.50 % $ 44,281 4.50 % 0.625 % $ 50,432 5.125 % Tier 1 capital ratio $ 121,098 12.31 % $ 78,722 8.00 % $ 59,042 6.00 % 0.625 % $ 65,192 6.625 % Total capital ratio $ 133,337 13.55 % $ 98,403 10.00 % $ 78,722 8.00 % 0.625 % $ 84,873 8.625 % Tier 1 leverage ratio $ 121,098 10.80 % $ 56,043 5.00 % $ 44,835 4.00 % n/a n/a n/a We currently hold $24.0 May 2017 principal source of cash has been dividends received from the Bank, which are subject to government regulation and limitations on the Bank’s ability to pay dividends. We also have trust preferred securities, senior debt and subordinated debt agreements have provisions that may The Bank is subject to certain restrictions under the Federal Reserve Act, including restrictions on the extension of credit to affiliates. In particular, it is prohibited from lending to an affiliated company unless the loans are secured by specific types of collateral. Such secured loans and other advances from the subsidiaries are limited to 10% 1 2 no three December 31, 2017. |
Note 21 - Derivatives
Note 21 - Derivatives | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | NOTE 2 1. During March 2016, $75.0 ) and terminated all of our interest rate swaps (active and forward starting). Prior to the time of termination, a $2.3 Other Liabilities Consolidated Balance Sheets For derivative financial instruments accounted for as hedging instruments, we formally designate and document, at incepti on, the financial instrument as a hedge of a specific underlying exposure, the risk management objective, and the manner in which the effectiveness of the hedge will be assessed. We formally assess both at inception and at each reporting period thereafter, whether the derivative financial instruments used in hedging transactions are effective in offsetting changes in cash flows of the related underlying exposures. Any ineffective portion of the changes in cash flow of the instruments is recognized immediately into earnings. ASC 815 10, Derivatives and Hedging 815” 815, No Classification of the gain or loss in the Consolidated Statements of Income 1 no 2 3 no no two . The following table summarizes the losses recorded during the years ended December 31, 2016 2015 Consolidated Statements of Income . (Amounts in thousands) Description Consolidated Statement of Operations 2016 2015 Interest rate swap (1) Interest on term debt $ 396 $ 1,435 Forward starting interest rate swap - terminated (2) Other noninterest expense 2,325 — Total $ 2,721 $ 1,435 ( 1 Losses represent tax effected amounts reclassified from accumulated other comprehensive income (loss) pertaining to net settlement recorded during the period on active interest rate swaps. ( 2 The following table summarizes the losses on all derivative instruments (active and forward starting) designated as cash flow hedges recorded in accumulated other comprehensive income (loss) and reclassified into earnings during the years ended December 31, 2016 2015. (Amounts in thousands) December 31, Description 2016 2015 Interest rate swaps $ (1,601 ) $ (843 ) |
Note 22 - Fair Values
Note 22 - Fair Values | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | NOTE 2 2. The following table presents estimated fair values of our financial instruments as of December 31, 2017 2016, not Non-financial assets and non-financial liabilities defined by the FASB ASC 820, not 825, (Amounts in thousands) Carrying Fair Value Measurements Using December 31, 2017 Amounts Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 66,970 $ 66,970 $ — $ — Securities available-for-sale $ 267,954 $ — $ 267,954 $ — Net loans $ 869,620 $ — $ — $ 873,660 Federal Home Loan Bank of San Francisco stock $ 4,536 $ 4,536 $ — $ — Financial liabilities Deposits $ 1,102,732 $ — $ 1,101,523 $ — Term Debt $ 16,958 $ — $ 16,918 $ — Junior subordinated debenture $ 10,310 $ — $ 10,206 $ — (Amounts in thousands) Carrying Fair Value Measurements Using December 31, 2016 Amounts Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 68,407 $ 68,407 $ — $ — Securities available-for-sale $ 175,174 $ — $ 175,174 $ — Securities held-to-maturity $ 31,187 $ — $ 31,374 $ — Net loans $ 793,991 $ — $ — $ 797,144 Federal Home Loan Bank of San Francisco stock $ 4,465 $ 4,465 $ — $ — Financial liabilities Deposits $ 1,004,666 $ — $ 1,004,429 $ — Term Debt $ 18,733 $ — $ 18,726 $ — Junior subordinated debenture $ 10,310 $ — $ 9,077 $ — Fair Value Hierarchy Level 1 valuations utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Level 2 valuations utilize inputs other than quoted prices included in Level 1 2 Level 3 valuations are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. Valuation is generated from model-based techniques that use significant assumptions not In certain cases, the inputs used to measure fair value may We maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practical to estimate that value: Cash and Cash Equivalents – The carrying amounts reported in the Consolidated Balance Sheet 1 Securities – Investment securities fair values are based on quoted market prices, where available, and are classified as Level 1. not 2. Net Loans – For variable rate loans that re-price frequently and with no not 3 Federal Home Loan Bank of San Francisco stock – The carrying value of Federal Home Loan Bank of San Francisco stock approximates fair value as the shares can only be redeemed by the issuing institution at par. We measure the fair value of Federal Home Loan Bank of San Francisco stock using Level 1 Deposits – We measure fair value of maturing deposits using Level 2 2 no Term Debt – For variable rate term debt, the carrying value approximates fair value. The fair value of fixed rate term debt is estimated by discounting the future cash flows using market rates at the reporting date, of which similar debt would be issued with similar credit ratings as ours and similar remaining maturities. At December 31, 2017, 7.29%. 2 Junior subordinated debenture – The fair value of the junior subordinated debenture is estimated by discounting the future cash flows using market rates at the reporting date, of which similar debentures would be issued with similar credit ratings as ours and similar remaining maturities. At December 31, 2017, 3.34%. 2 Commitments – Loan commitments and standby letters of credit generate ongoing fees, which are recognized over the term of the commitment period. In situations where the borrower’s credit quality has declined, we record a reserve for these unfunded commitments. Given the uncertainty in the likelihood and timing of a commitment being drawn upon, a reasonable estimate of the fair value of these commitments is the carrying value of the related unamortized loan fees plus the reserve, which is not no We use fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Available-for-sale securities are recorded at fair value on a recurring basis. From time to time, we may , core deposit intangibles or goodwill. These nonrecurring fair value adjustments involve the application of lower of cost or fair value accounting or write-downs of individual assets. The following table presents information about our assets and liabilities measured at fair value on a recurring basis, and indicate the fair value hierarchy of the valuation techniques we utilized to determine such fair value, as of December 31 , 2017 December 31, 2016. (Amounts in thousands) Fair Value at December 31, 2017 Recurring Basis Total Level 1 Level 2 Level 3 Available-for-sale securities U.S. government and agencies $ 40,369 $ — $ 40,369 $ — Obligations of states and political subdivisions 78,844 — 78,844 — Residential mortgage-backed securities and collateralized mortgage obligations 114,592 — 114,592 — Corporate securities 4,992 — 4,992 — Commercial mortgage-backed securities 26,641 — 26,641 — Other investment securities (1) 2,516 — 2,516 — Total assets measured at fair value $ 267,954 $ — $ 267,954 $ — ( 1 (Amounts in thousands) Fair Value at December 31, 2016 Recurring Basis Total Level 1 Level 2 Level 3 Available-for-sale securities U.S. government and agencies $ 10,354 $ — $ 10,354 $ — Obligations of states and political subdivisions 59,428 — 59,428 — Residential mortgage-backed securities and collateralized mortgage obligations 69,604 — 69,604 — Corporate securities 16,116 — 16,116 — Commercial mortgage-backed securities 15,514 — 15,514 — Other investment securities (1) 4,158 — 4,158 — Total assets measured at fair value $ 175,174 $ — $ 175,174 $ — ( 1 Recurring Items Investment Securities – may 2 Transfers Between Fair Value Hierarchy Levels Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstance that caused the transfer. There were no transfers between levels of the fair value hierarchy during the years ended December 31, 2017 2016. Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis We may three December 31, 2017 December 31, 2016 The amounts disclosed below present the fair values at the time the nonrecurring fair value measurements were made, and not (Amounts in thousands) Fair Value at December 31, 2017 Nonrecurring basis Total Level 1 Level 2 Level 3 Collateral dependent impaired loans $ 60 $ — $ — $ 60 Other real estate owned 35 — — 35 Total assets measured at fair value $ 95 $ — $ — $ 95 (Amounts in thousands) Fair Value at December 31, 2016 Nonrecurring basis Total Level 1 Level 2 Level 3 Collateral dependent impaired loans $ 1,587 $ — $ — $ 1,587 Other real estate owned 219 — — 219 Total assets measured at fair value $ 1,806 $ — $ — $ 1,806 The following table presents the losses resulting from nonrecurring fair value adjustments for the years ended December 31, 2017, 2016 2015 December 31, 2017, 2016, 2015. (Amounts in thousands) December 31, Fair value adjustments 2017 2016 2015 Collateral dependent impaired loans $ 20 $ 1,183 $ 476 Other real estate owned 38 77 197 Total $ 58 $ 1,260 $ 673 For the year ended December 31, 2017 $80 $60 $20 For the year ended December 31, 2017, one $73 $35 $38 The loan amounts above represent impaired, collateral dependent loans that have been adjusted to fair value during the respective reporting period. When we identify a collateral dependent loan as impaired, we measure the impairment using the current fair value of the collateral, less selling costs. Depending on the characteristics of a loan, the fair value of collateral is generally estimated by obtaining external appraisals. If we determine that the value of the impaired loan is less than the recorded investment in the loan, we recognize this impairment and adjust the carrying value of the loan to fair value through the ALLL. The loss represents charge-offs or impairments on collateral dependent loans for fair value adjustments based on the fair value of collateral less estimated selling costs. The carrying value of loans fully charged off is zero no 3. The OREO amount above represents impaired real estate that has been adjusted to fair value during the respective reporting period. The loss represents impairments on OREO for fair value adjustments based on the fair value of the real estate. The determination of fair value is based on recent appraisals of the foreclosed properties, which take into account recent sales prices adjusted for unobservable inputs, such as opinions provided by local real estate brokers and other real estate experts. OREO fair values are adjusted for estimated selling costs between 8% 34%. 3. Limitations – Fair value estimates are made at a specific point in time, based on relevant market information and other information about the financial instrument. These estimates do not one no Fair value estimates are based on current on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not not |
Note 23 - Income Taxes
Note 23 - Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 23. The following table presents components of income tax expense included in the Consolidated Statements of Income three (Amounts in thousands) Current Deferred Total Year ended December 31, 2017: Federal $ 2,005 $ 2,837 $ 4,842 State 1,474 (76 ) 1,398 Affordable housing partnership amortization 688 — 688 $ 4,167 $ 2,761 $ 6,928 Year ended December 31, 2016: Federal $ 283 $ 409 $ 692 State 582 86 668 Affordable housing partnership amortization 598 — 598 $ 1,463 $ 495 $ 1,958 Year ended December 31, 2015: Federal $ 1,183 $ 509 $ 1,692 State 981 75 1,056 Affordable housing partnership amortization 714 — 714 Total $ 2,878 $ 584 $ 3,462 Our effective tax rate is derived from provision for income taxes divided by income before provision for income taxes. Income tax expense attributable to income before income taxes differed from the amounts computed by applying the U.S. federal income tax rate of 34% The following table presents a reconciliation of income taxes computed at the federal statutory rate to the actual effective rate for the years ended December 31, 2017, 2016, 2015. 2017 2016 2015 Income tax at the federal statutory rate 34.00 % 34.00 % 34.00 % Deferred tax asset write-down 17.45 % 5.02 % — % State franchise tax, net of federal tax benefit 6.46 % 6.11 % 5.79 % Amortization of affordable housing credit partnerships 4.82 % 8.11 % 5.91 % Officer life insurance (2.50 %) (2.89 %) (1.81 %) Tax-exempt interest (5.23 %) (10.85 %) (8.02 %) Affordable housing credits and benefits (5.68 %) (11.69 %) (6.42 %) Other (0.78 %) (0.68 %) (0.71 %) Effective Tax Rate 48.54 % 27.13 % 28.74 % For the year ended December 31, 2017, 6.9 $14.3 48.5%. $2.5 $4.4 $14.3 30.8% $2.5 35% 21% December 22, 2017. The following table reflects the effects of temporary differences that give rise to the components of the net deferred tax asset as of December 31, 2017 2016. (Amounts in thousands) 2017 2016 Deferred tax assets: Loan and lease loss reserves $ 3,526 $ 4,751 Deferred compensation 2,365 3,285 State franchise taxes 291 260 Branch acquisition costs 274 366 Unrealized losses other comprehensive income 134 553 Non accrued interest 105 341 Federal tax credits — 525 Other 484 1,093 Total deferred tax assets 7,179 11,174 Deferred tax liabilities: Deferred loan origination costs (619 ) (904 ) Unrealized gains other comprehensive income — (92 ) Basis difference in fixed assets — (164 ) Other (55 ) (472 ) Total deferred tax liabilities (674 ) (1,632 ) Net deferred tax asset $ 6,505 $ 9,542 We have determined that we are not not of $7.2 $11.2 December 31, 2017 2016, We have investments in Qualified Zone Academy Bonds (“QZAB ”) of $4.7 December 31, 2017 2016 Other Assets Consolidated Balance Sheets . $1.0 December 31, 2017 Securities available-for-sale Consolidated Balance Sheets 2031, 2033 2046. For the year s ended December 31, 2017 2016, $53 2020. See Note 24 Qualified Affordable Housing Partnership Investments Notes to Consolidated Financial Statements In September 2016, 2011, 2012, 2013, 2014. $41 December 31, 2017 Additionally, we have no December 31, 2017 2016. We file income tax returns in the U.S. federal jurisdiction, and the State of California. Income tax returns filed are subject to examination by the U.S. federal, state, and local income tax authorities. While no no 2014 2013 In September 2016, 2011, 2012, 2013, 2014. 2011 2013, 2011 2014. he IRS rejected the 2011 $988 2011 December 31, 2017 100% 2011 not, not 2014 September 2018, not $988 The following table presents our uncertain tax position at December 31, 2017 2016. (Amounts in thousands) 2017 2016 Balance, beginning of period $ 988 $ — Additions for tax positions related to prior years — 988 balance, end of period $ 988 $ 988 |
Note 24 - Qualified Affordable
Note 24 - Qualified Affordable Housing Partnership Investments | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Qualified Affordable Housing Project Investments [Text Block] | NOTE 2 4 . QUALIFIED AFFORDABLE HOUSING PARTNERSHIP INVESTMENTS Our investments in Qualified Affordable Housing Partnerships that generate Low Income Housing Tax Credits (“LIHTC”) and deductible operating losses totaled $3.5 December 31, 2017. These investments are recorded in Other Assets $361 Other Liabilities Consolidated Balance Sheets four 18 None 3% 6%. Consolidated Statements of Income The following table presents our original investment in LIHTC partnerships, the current recorded investment balance, and the unfunded liability balance of each investment at December 31, 2017 December 31, 2016. December 31, 2017 2016. At December 31, 2017 For the year ended December 31, 2017 Original Current Unfunded Tax Credits Amortization Net (Amounts in thousands) Investment Recorded Liability and of Income Tax Qualified Affordable Housing Partnerships Value Investment Obligation Benefits Investments Benefit Raymond James California Housing Opportunities Fund II $ 2,000 $ 1,182 $ 20 $ 224 $ 179 $ 45 WNC Institutional Tax Credit Fund 38, L.P. 1,000 589 — 139 108 31 Merritt Community Capital Corporation Fund XV, L.P. 2,500 1,476 341 271 237 34 California Affordable Housing Fund 2,454 282 — 176 164 12 Total $ 7,954 $ 3,529 $ 361 $ 810 $ 688 $ 122 At December 31, 2016 For the year ended December 31, 2016 Original Current Unfunded Tax Credits Amortization Net (Amounts in thousands) Investment Recorded Liability and of Income Tax Qualified Affordable Housing Partnerships Value Investment Obligation Benefits Investments Benefit Raymond James California Housing Opportunities Fund II $ 2,000 $ 1,361 $ 45 $ 237 $ 192 $ 45 WNC Institutional Tax Credit Fund 38, L.P. 1,000 698 73 143 100 43 Merritt Community Capital Corporation Fund XV, L.P. 2,500 1,713 367 266 106 160 California Affordable Housing Fund 2,454 445 — 205 200 5 Total $ 7,954 $ 4,217 $ 485 $ 851 $ 598 $ 253 The following table presents our generated tax credits and tax benefits from investments in qualified affordable housing partnerships for the years ended December 31, 2017, 2016 2015. For the Years Ended December 31, 2017 2016 2015 (Amounts in thousands) Generated Tax Benefits from Generated Tax Benefits from Generated Tax Benefits from Qualified Affordable Housing Partnerships Tax Credits Taxable Losses Tax Credits Taxable Losses Tax Credits Taxable Losses Raymond James California Housing Opportunities Fund II $ 176 $ 48 $ 184 $ 53 $ 168 $ 62 WNC Institutional Tax Credit Fund 38, L.P. 113 26 107 36 93 27 Merritt Community Capital Corporation Fund XV, L.P. 215 56 206 60 214 58 California Affordable Housing Fund 126 50 158 47 158 43 Total $ 630 $ 180 $ 655 $ 196 633 $ 190 The tax credits and benefits were partially offset by the amortization of the principal investment balances of $688 $598 $712 December 31, 2017, 2016 2015, The following table reflects the anticipated net income tax benefit at December 31, 2017, and has been updated to reflect the change in tax rate in the Tax Cuts and Jobs Act enacted on December 22, 2017. (Amounts in thousands) Raymond James Merritt Community California Qualified Affordable Housing Partnerships: California Housing WNC Institutional Capital Affordable Total Anticipated income tax benefit, net less Opportunities Tax Credit Corporation Housing Income Tax amortization of investments Fund II Fund 38, L.P. Fund XV, L.P Fund Benefit, Net 2018 $ 23 $ 21 $ 3 $ (17 ) $ 30 2019 23 17 4 (14 ) 30 2020 22 17 4 (14 ) 29 2021 23 16 3 (14 ) 28 2022 and thereafter 61 42 9 (43 ) 69 Total $ 152 $ 113 $ 23 $ (102 ) $ 186 |
Note 25 - Branch Acquisition
Note 25 - Branch Acquisition | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | NOTE 2 5 . BRANCH ACQUISITION On March 11, 2016, five three $6.7 $155.2 $149.2 The transaction provided a new source of low cost core deposits and allowed us to execute our plan to reconfigure our balance sheet. On March 14, 2016, $75.0 $17.5 The transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the acquisition date. The Bank engaged third The contribution of the acquired operations of the five s is deemed neither practical nor meaningful. Additionally, the acquired operation was not Branch acquisition costs recorded during the year ended December 31, 2016 2015 580 $347 Fair Value and As Recorded by Other Merger Bank of Related As Recorded by (Amounts in thousands) America Adjustments the Company Consideration paid: Cash paid $ 6,656 Total consideration $ 6,656 Assets acquired: Cash and cash equivalents $ 149,067 $ — $ 149,067 Premises and equipment, net 1,835 2,355 4,190 Other assets 201 — 201 Core deposit intangible — 1,772 1,772 Total assets acquired $ 151,103 $ 4,127 $ 155,230 Liabilities assumed: Deposits $ 149,047 $ — $ 149,047 Other liabilities 20 172 192 Total liabilities assumed $ 149,067 $ 172 $ 149,239 Net identifiable assets acquired over liabilities assumed $ 2,036 $ 3,955 $ 5,991 Goodwill $ 665 |
Note 26 - Earnings Per Common S
Note 26 - Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 2 6 . EARNINGS PER COMMON SHARE The following table presents a computation of basic and diluted earnings per share for the years ended December 31, 2017, 2016 2015. (Amounts in thousands, except per share information) Earnings Per Share 2017 2016 2015 Numerators: Net income $ 7,344 $ 5,259 $ 8,586 Less: Preferred stock extinguishment costs — — 102 Preferred stock dividends — — 189 Net income available to common shareholders $ 7,344 $ 5,259 $ 8,295 Denominators: Weighted average number of common shares outstanding - basic (1) 15,207 13,367 13,331 Effect of potentially dilutive common shares (2) 103 58 34 Weighted average number of common shares outstanding - diluted 15,310 13,425 13,365 Earnings per common share: Basic $ 0.48 $ 0.39 $ 0.62 Diluted $ 0.48 $ 0.39 $ 0.62 Anti-dilutive options not included in earnings per share calculation — 45 121 Anti-dilutive restricted shares not included in diluted earnings per share calculation 7 — 41 ( 1 Excludes unvested restricted shares because they do not ( 2 Represents the effects of the assumed exercise of stock options and vesting of non-participating restricted shares. On May 10, 2017, $10.50 2,738,096 $26.8 |
Note 27 - Related Party Transac
Note 27 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | NOTE 2 7 . RELATED PARTY TRANSACTIONS Some of the directors and executive officers (and their associated or affiliated companies) were customers of and had banking transactions with us in the ordinary course of our business and we expect to have such transactions in the future. All deposits, loans and commitments to fund loans included in such transactions were made in compliance with the applicable laws on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons of similar creditworthiness. The following table presents a summary of aggregate activity involving related party borrowers for the years ended December 31, 2017 2016. (Amounts in thousands) 2017 2016 Balance at beginning of year $ 13,424 $ 13,707 Advances on existing lines of credit 29,166 24,447 Principal repayments (29,360 ) (24,730 ) Balance at end of year $ 13,230 $ 13,424 At December 31, 2017 2016, $6.7 $6.0 December 31, 2017 2016, no December 31, 2017 2016 $12.4 $8.8 not |
Note 28 - Parent Company Financ
Note 28 - Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | NOTE 2 8 . PARENT COMPANY FINANCIAL STATEMENTS Condensed Balance Sheets Year ended December 31, (Amounts in thousands) 2017 2016 Assets: Cash $ 23,984 $ 493 Investment in: Redding Bank of Commerce 130,658 122,707 Bank of Commerce Mortgage (64 ) (64 ) Bank of Commerce Holdings Trust II 310 310 Other assets 169 124 Total Assets $ 155,057 $ 123,570 Liabilities and shareholders' equity: Term debt: Senior debt, net $ 7,090 $ 8,904 Subordinated debt, net 9,868 9,829 Junior subordinated debentures 10,310 10,310 Other liabilities 525 421 Total liabilities 27,793 29,464 Shareholders ’ equity 127,264 94,106 Total liabilities and shareholders ’ equity $ 155,057 $ 123,570 Condensed Statements of Income Year Ended December 31, (Amounts in thousands) 2017 2016 2015 Income: Other income $ 9 $ 7 $ 6 Dividends from subsidiaries 2,200 4,200 2,850 Total income 2,209 4,207 2,856 Expenses: Management fees paid to subsidiaries 278 259 229 Interest expense 1,452 1,409 267 Noninterest expense 474 345 337 Total expenses 2,204 2,013 833 Income before income taxes and equity in undistributed net income of subsidiaries 5 2,194 2,023 Income tax expense 1 1 1 Income before equity in undistributed net income of subsidiaries 4 2,193 2,022 Equity in undistributed net income of subsidiaries 7,340 3,066 6,564 Net income $ 7,344 $ 5,259 $ 8,586 Less: Preferred stock extinguishment costs — — 102 Less: Preferred dividends — — 189 Income available to common shareholders $ 7,344 $ 5,259 $ 8,295 Condensed Statements of Cash Flows Year Ended December 31, (Amounts in thousands) 2017 2016 2015 Cash flows from operating activities: Net income $ 7,344 $ 5,259 $ 8,586 Adjustments to reconcile net income to net cash provided by operating activities: Compensation associated with stock options — — 1 Equity in undistributed net income of subsidiaries (7,340 ) (3,066 ) (6,564 ) Amortization of debt issuance costs 44 40 — Provision for depreciation and amortization 6 — — Decrease in other assets 32 6 371 Increase (decrease) in other liabilities 59 (137 ) 229 Net cash provided by operating activities 145 2,102 2,623 Cash flows from investing activities: Purchases of premises and equipment (82 ) — — Net cash (used) by investing activities (82 ) — — Cash flows from financing activities: Advances on term debt — — 20,000 Repayment of term debt (1,819 ) (1,001 ) (83 ) Debt issuance costs paid — — (223 ) Redemption of preferred stock — — (20,000 ) Preferred stock extinguishment costs — — (33 ) Cash dividends paid on preferred stock — — (189 ) Cash dividends paid on common stock (1,776 ) (1,603 ) (1,601 ) Proceeds from stock options exercised 245 10 156 Net proceeds from issuance of common stock 26,778 — — Net cash provided by (used in) financing activities 23,428 (2,594 ) (1,973 ) Net increase (decrease) in cash and cash equivalents 23,491 (492 ) 650 Cash and cash equivalents at the beginning of year 493 985 335 Cash and cash equivalents at the end of year $ 23,984 $ 493 $ 985 Supplemental disclosures of non cash financing activities: Stock compensation grants $ 41 $ — $ — Common stock issued under employee plans $ — $ 84 $ 36 |
Note 29 - Quarterly Financial I
Note 29 - Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | NOTE 29 . QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The following tables present the summary of results for the eight December 31, 2017. 2017 March 31, June 30, September 30, December 31, Four (Amounts in thousands, except for share information) 2017 2017 2017 2017 Quarters Net interest income $ 9,734 $ 10,175 $ 10,584 $ 10,869 $ 41,362 Provision for loan and lease losses 200 300 — 450 950 Noninterest income 1,471 995 1,076 1,282 4,824 Noninterest expense 7,990 7,726 7,357 7,891 30,964 Income before provision for income tax 3,015 3,144 4,303 3,810 14,272 Provision for income tax 763 935 1,427 3,803 6,928 Income available to common shareholders $ 2,252 $ 2,209 $ 2,876 $ 7 $ 7,344 Earnings per share - basic $ 0.17 $ 0.15 $ 0.18 $ — $ 0.48 Weighted average shares - basic 13,416 15,014 16,191 16,195 15,207 Earnings per share - diluted $ 0.17 $ 0.15 $ 0.18 $ — $ 0.48 Weighted average shares - diluted 13,521 15,113 16,288 16,306 15,310 2016 March 31, June 30, September 30, December 31, Four (Amounts in thousands, except for share information) 2016 2016 2016 2016 Quarters Net interest income $ 8,304 $ 9,217 $ 9,276 $ 9,434 $ 36,231 Provision for loan and lease losses — — — — — Noninterest income 824 412 990 1,260 3,486 Noninterest expense 9,876 7,643 7,156 7,825 32,500 (Loss) income before provision for income tax (748 ) 1,986 3,110 2,869 7,217 Provision for income tax 212 430 744 572 1,958 (Loss) income available to common shareholders $ (960 ) $ 1,556 $ 2,366 $ 2,297 $ 5,259 (Loss) earnings per share - basic $ (0.07 ) $ 0.11 $ 0.18 $ 0.17 $ 0.39 Weighted average shares - basic 13,360 13,367 13,369 13,370 13,367 (Loss) earnings per share - diluted $ (0.07 ) $ 0.11 $ 0.18 $ 0.17 $ 0.39 Weighted average shares - diluted 13,403 13,425 13,439 13,476 13,425 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Financial Statement Presentation - not no |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation - The accompanying Consolidated Financial Statements include the accounts of the Holding Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. As of December 31, 2017 2016, one 2005 not 810, Consolidation 810” not Consolidated Balance Sheets |
Adoption of New Accounting Pronouncement [Policy Text Block] | Application of new accounting guidance - January 2017, No. 2016 09, 718 2016 09, no not |
Subsequent Events, Policy [Policy Text Block] | Subsequent events – We have evaluated events and transactions subsequent to December 31, 2017 |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents – For purposes of reporting cash flows, cash and cash equivalents include amounts due from correspondent banks including interest-bearing deposits in correspondent banks and the Federal Reserve Bank.. |
Investment, Policy [Policy Text Block] | Investment Securities – Securities are classified as held-to-maturity if we have both the intent and ability to hold those securities to maturity regardless of changes in market conditions, liquidity needs or changes in general economic conditions. These securities are carried at cost adjusted for amortization of premium and accretion of discount, computed by the effective interest method over their contractual lives. Unrealized holding gains or losses are excluded from other comprehensive income (loss). Realized gains or losses, determined on the basis of the cost of specific securities sold or called, are included in earnings. Dividend and interest income are recognized when earned. Securities are classified as available-for-sale if we intend and have the ability to hold those securities for an indefinite period of time, but not Transfers of securities from available-for-sale to held-to-maturity are accounted for at fair value as of the date of the transfer. The difference between the fair value and the amortized cost at the date of transfer is considered a premium or discount and is accounted for accordingly. Any unrealized gain or loss at the date of the transfer is reported in other comprehensive income (loss), and is amortized over the estimated remaining life of the security as an adjustment of yield in a manner consistent with the amortization of any premium or discount, and will offset or mitigate the effect on interest income of the amortization of the premium or discount for that held-to-maturity security. Transfers of securities from held-to-maturity to available-for-sale to are accounted for at fair value at the date of the reclassification. Any remaining unamortized fair value adjustments are reclassified from other comprehensive income (loss) and the unrealized holding gain (loss) at the date of transfer is recorded in other comprehensive income net of tax. We review investment securities on an ongoing basis for the presence of other-than-temporary impairment or permanent impairment, taking into consideration current market conditions, fair value in relationship to cost, extent and nature of the change in fair value, issuer rating changes and trends, whether we intend to sell a security or if it is more likely than not may not not not not not not |
Loan Commitments, Policy [Policy Text Block] | Loans – Loans are stated at the principal amounts outstanding, net of deferred loan fees, deferred loan costs, and the ALLL. Interest on loans is accrued daily based on the principal outstanding. Loan origination and commitment fees and certain origination costs are deferred and the net amount is amortized or accreted over the contractual life of the loans as an adjustment of their yield. A loan is impaired when, based on current information and events, management believes it is probable that we will not not Our practice is to place an asset on nonaccrual status when one 1 90 ’s opinion the loan is well-secured and in the process of collection), ( 2 3 90 90 90 not not Nonperforming loans are loans which may 90 Restructured loans are those loans where concessions in terms have been granted because of the borrower ’s financial or legal difficulties. Interest is generally accrued on such loans in accordance with the new terms, after a period of sustained performance by the borrower. |
Loans and Leases Receivable, Valuation, Policy [Policy Text Block] | Purchased Loans -Purchased loans are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an ALLL is not None |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Allowance for Loan and Lease Losses – The adequacy of the ALLL is monitored on a regular basis and is based on management’s evaluation of numerous factors. These factors include the quality of the current loan portfolio; the trend in the loan portfolio’s risk ratings; current economic conditions; loan concentrations; loan growth rates; past-due and non-performing trends; evaluation of specific loss estimates for all impaired loans; historical charge-off and recovery experience; and other pertinent information. We perform regular credit reviews of the loan portfolio to determine the credit quality of the portfolio and the adherence to underwriting standards. When loans are originated, they are assigned a risk rating that is reassessed periodically during the term of the loan through the credit review process. Our risk rating methodology assigns risk ratings ranging from 1 8, 8 We have divided the loan portfolio into sub-categories of similar type loans. Each category is assigned an historical loss factor and additional qualitative factors. The sub-categories are also further segmented by risk rating. Each risk rating is assigned an additional loss factor to account for the additional risk in those loans with higher risk levels. Regular credit reviews of the portfolio also identify loans that are considered potentially impaired. Potentially impaired loans are referred to the CCO who reviews and approves designated loans as impaired. A loan is considered impaired when , based on current information and events, we determine that it is probable that we will not We may may not 4% may As adjustments to the ALLL become necessary, they are reported in earnings in the periods in which they become known as a charge or credit to the provision for loan and lease losses. Loans, or portions thereof, deemed uncollectible are charged to the ALLL. Recoveries on loans previously charged-off, are added to the ALLL. We believe that the ALLL was adequate as of December 31, 2017. no not may 77% may |
Reserve for Unfunded Commitments [Policy Text Block] | Reserve for Unfunded Commitments – A reserve for unfunded commitments is maintained at a level that, in our opinion, is adequate to absorb probable losses associated with our commitment to lend funds under existing agreements such as letters or lines of credit. We determine the adequacy of the reserve for unfunded commitments based upon the category of loan, current economic conditions, the risk characteristics of the various categories of commitments and other relevant factors. The reserve is based on estimates, and ultimate losses may These estimates are evaluated on a regular basis and, as adjustments become necessary, they are reported in earnings in the periods in which they become known. Draws on unfunded commitments that are considered uncollectible at the time funds are advanced are charged to the reserve for unfunded commitments. Provisions for unfunded commitment losses, and recoveries on loan and lease commitments previously charged off, are added to the reserve for unfunded commitments, which is included in the Other Liabilities Consolidated Balance Sheets. 15, Commitment s and Contingencies Notes to Consolidated Financial Statements |
Property, Plant and Equipment, Policy [Policy Text Block] | Pr emises and Equipment – three seven 39 other noninterest income other noninterest expense Consolidated Statements of Income |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangibles - not non-interest expense Consolidated Statements of Income |
Other Real Estate Owned [Policy Text Block] | Other Real Estate Owned – other expenses Consolidated Statements of Income noninterest income noninterest expense Consolidated Statements of Income |
Income Tax, Policy [Policy Text Block] | Income Taxes – Income taxes reported in the Consolidated Financial Statements not In projecting future taxable income, management develops assumptions including the amount of future state and federal pre -tax operating income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates being used to manage the underlying business. We file consolidated federal and combined state income tax returns. We recognize the financial statement effect of a tax position when it is more likely than not, not may fifty We believe that all of our tax positions taken meet the more likely than not 23, Income Taxes Notes to Consolidated Financial Statements |
Derivatives, Policy [Policy Text Block] | Derivative Financial Instruments and Hedging Activities – Prior to March 2016, not, Consolidated Balance Sheets 22, Derivatives Notes to Consolidated Financial Statements At the inception of a hedging relationship, we designate each qualifying derivative financial instrument as either a hedge of the fair value of a specifically identified asset or liability (fair value hedge) or; as a hedge of the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). We formally document all relationships between hedging instruments and hedged items and risk management objectives for undertaking various hedge transactions. Both at the hedge’s inception and on an ongoing basis, we formally assess whether the derivatives that are used in hedging relationships are highly effective in offsetting changes in fair values or cash flows of hedged items. Changes in the fair value of derivative financial instruments that are designated and qualify as fair value hedges along with the gain or loss on the hedged asset or liability attributable to the hedged risk, are recorded in the current period earnings. For qualifying cash flow hedges, the effective portion of the change in the fair value of the derivative financial instruments is recorded in accumulated other comprehensive income (loss), as a component of equity, and recognized in the Consolidated Statements of Income The hedge accounting treatment described herein is no no to the hedged asset or liability remain as part of the basis of the asset or liability and are recognized into income over the remaining life of the asset or liability. For terminated cash flow hedges, unless it is probable that the forecasted cash flows will not |
Segment Reporting, Policy [Policy Text Block] | Operating Segments – Public enterprises are required to report certain information about their operating segments in a complete set of financial statements to shareholders. They are also required to report certain enterprise-wide information about their products and services, their activities in different geographic areas, and their reliance on major customers. The basis for determining operating segments is the manner in which management operates the business. As of December 31, 2017, one |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Share Based Payments – We have one 2008 May 15, 2007 ( 2010 May 18, 2010. May 15, 2012. The Plan provides for awards to key personnel, including directors of incentive and nonqualified stock options, restricted stock units and restricted stock, which may 422 1986, may not 100% no 85% no ten five three five no 18, Share holders’ Equity , Notes to the Consolidated Financial Statements. In accordance with FASB ASC 718, Stock Compensation, Consolidated Statements of Income The fair value of each option grant is estimated as of the grant date using the Black-Scholes option-pricing model using the following assumptions: ● Volatility represents the historical volatility in the Holding Company’s common stock price, for a period consistent with the expected life of the option. ● Risk free rate was derived from the U.S. Treasury rate at the time of the grant, which coincides with the expected life of the option. ● Expected dividend yield is based on dividend trends and the market value of the Holding Company’s common stock at the time of grant. ● Annual dividend rate is the ratio of the expected annual dividends to the Holding Company ’s common stock price on the grant date. ● Assumed forfeiture rate based on expected forfeiture rates. ● Expected life is estimated based on the history of the Holding Company ’s stock option holders and expectations regarding future forfeitures giving consideration to the contractual terms and vesting schedules, and represents the period of time that options granted are expected to be outstanding. The following weighted average assumptions were used to determine the fair value of stock option grants as of the grant date to determine compensation cost for the years ended December 31, 2015. no 2017 2016. 2015 Volatility 26.44 % Risk free interest rate 1.64 % Expected dividends $ 0.12 Annual dividend rate 2.05 % Assumed forfeiture rate — Expected life (in years) 7 |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Share - dilution Basic earnings per share excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period, excluding unvested restricted stock awards which do not not We present both basic and diluted earnings per share on the face of the Consolidated Statements of Income 26, Earnings Per Common Share Notes to Consolidated Financial Statements. |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs – For the years ended December 31, 2017, 2016, 2015, $61 $171 $64 |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value Measurements – FASB ASC 820, Fair Value Measurements and Disclosures, 820 three 1 2 1 2 3 may |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements ASU No. 2 016 13 Description - In June 2016, No. 2016 13 , Financial Instruments – Credit Losses (Topic 326 Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. The ASU requires enhanced disclosures to help investors and other financial statement users to better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization ’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. In addition, the ASU amends the accounting guidance for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. Methods and timing of adoption – The amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. December 15, 2018. Expected financial statement impact – We are currently evaluating the provisions of the ASU and have formed a committee for the purpose of developing a model that is compliant with the requirements under the ASU. The committee is also gathering pertinent data, consulting with outside professionals and evaluating our IT systems. Management expects to recognize a one–time cumulative effect adjustment to the allowance for loan and lease losses as of the first one not ASU No. 2016 02 Description - In February 2016, No. 2016 02, Leases (Topic 812 842 is that a lessee should recognize the assets and liabilities that arise from leases. All leases create an asset and a liability for the lessee in accordance with FASB Concepts Statement No. 6, not Methods and timing of adoption – For public companies, the amendments in this update are effective for fiscal years beginning after December 15, 2018, Expected financial statement impact – The Company has performed an initial analysis of our existing leases and expects a significant new lease asset and related lease liability on the balance sheet due to the number of leased properties the Company currently has that are accounted for under current operating lease guidance. ASU No. 2016 01 Description - In January 2016, No. 2016 01, – Overall (Subtopic 825 10 Methods and timing of adoption – ASU No. 2016 01 December 15, 2017, Expected financial statement impact – The Company has evaluated the potential impact of this ASU on the Company's consolidated financial statements and we do not ASU No. 2014 09 Description - In May 2014, No. 2014 09, 606 605, 606 Methods and timing of adoption – The standard is effective for public entities for interim and annual periods beginning after December 15, 2017 No. 2015 14; not No. 2014 09 January 1, 2018 Expected financial statement impact – Since the guidance does not not not |
Note 2 - Summary of Significa39
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2015 Volatility 26.44 % Risk free interest rate 1.64 % Expected dividends $ 0.12 Annual dividend rate 2.05 % Assumed forfeiture rate — Expected life (in years) 7 |
Note 4 - Securities (Tables)
Note 4 - Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | As of December 31, 2017 Gross Gross Amortized Unrealized Unrealized Estimated (Amounts in thousands) Costs Gains Losses Fair Value Available-for-sale securities: U.S. government & agencies $ 40,319 $ 196 $ (146 ) $ 40,369 Obligations of state and political subdivisions 77,412 1,910 (478 ) 78,844 Residential mortgage-backed securities and collateralized mortgage obligations 116,061 69 (1,538 ) 114,592 Corporate securities 5,079 18 (105 ) 4,992 Commercial mortgage-backed securities 26,995 24 (378 ) 26,641 Other asset-backed securities 2,540 4 (28 ) 2,516 Total $ 268,406 $ 2,221 $ (2,673 ) $ 267,954 As of December 31, 2016 Gross Gross Amortized Unrealized Unrealized Estimated (Amounts in thousands) Costs Gains Losses Fair Value Available-for-sale securities: U.S. government & agencies $ 10,427 $ 10 $ (83 ) $ 10,354 Obligations of state and political subdivisions 58,847 1,001 (420 ) 59,428 Residential mortgage-backed securities and collateralized mortgage obligations 71,068 33 (1,497 ) 69,604 Corporate securities 16,153 103 (140 ) 16,116 Commercial mortgage-backed securities 15,786 9 (281 ) 15,514 Other asset-backed securities 4,237 8 (87 ) 4,158 Total $ 176,518 $ 1,164 $ (2,508 ) $ 175,174 Held-to-maturity securities: Obligations of state and political subdivisions $ 31,187 $ 710 $ (523 ) $ 31,374 |
Amortized Cost and Estimated Fair Value Available for Sale Securities [Table Text Block] | Available-For-Sale (Amounts in thousands) Amortized Cost Fair Value Amounts maturing in: One year or less $ 1,425 $ 1,430 One year through five years 87,888 87,424 Five years through ten years 83,450 83,430 After ten years 95,643 95,670 Total $ 268,406 $ 267,954 |
Schedule of Realized Gain (Loss) [Table Text Block] | For Years Ended December 31, (Amounts in thousands) 2017 2016 2015 Proceeds from sales of securities $ 64,349 $ 51,025 $ 71,277 Gross realized gains on sales of securities: U.S. government & agencies $ — $ 25 $ 16 Obligations of state and political subdivisions 161 188 97 Residential mortgage-backed securities and collateralized mortgage obligations 52 17 142 Corporate securities 79 105 161 Commercial mortgage-backed securities 3 4 14 Other asset-backed securities 20 13 126 Total gross realized gains on sales of securities 315 352 556 Gross realized losses on sales of securities U.S. government & agencies — (13 ) (33 ) Obligations of state and political subdivisions (102 ) (3 ) (29 ) Residential mortgage-backed securities and collateralized mortgage obligations (56 ) (64 ) (12 ) Corporate securities (3 ) (27 ) (14 ) Commercial mortgage-backed securities (17 ) (1 ) — Other asset-backed securities — — (25 ) Total gross realized losses on sales of securities (178 ) (108 ) (113 ) Gain on investment securities, net $ 137 $ 244 $ 443 |
Schedule of Unrealized Loss on Investments [Table Text Block] | As of December 31, 2017 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Amounts in thousands) Value Losses Value Losses Value Losses Available-for-sale securities: U.S. government & agencies $ 18,140 $ (102 ) $ 2,131 $ (44 ) $ 20,271 $ (146 ) Obligations of states and political subdivisions 15,030 (255 ) 8,368 (223 ) 23,398 (478 ) Residential mortgage-backed securities and collateralized mortgage obligations 75,323 (827 ) 31,036 (711 ) 106,359 (1,538 ) Corporate securities — — 2,934 (105 ) 2,934 (105 ) Commercial mortgage-backed securities 11,162 (151 ) 10,026 (227 ) 21,188 (378 ) Other asset-backed securities 2,167 (28 ) — — 2,167 (28 ) Total temporarily impaired securities $ 121,822 $ (1,363 ) $ 54,495 $ (1,310 ) $ 176,317 $ (2,673 ) As of December 31, 2016 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Amounts in thousands) Value Losses Value Losses Value Losses Available-for-sale securities: U.S. government & agencies $ 9,139 $ (83 ) $ — $ — $ 9,139 $ (83 ) Obligations of states and political subdivisions 20,329 (420 ) — — 20,329 (420 ) Residential mortgage-backed securities and collateralized mortgage obligations 52,345 (1,396 ) 4,108 (101 ) 56,453 (1,497 ) Corporate securities 8,908 (140 ) — — 8,908 (140 ) Commercial mortgage-backed securities 12,041 (191 ) 2,849 (90 ) 14,890 (281 ) Other asset-backed securities 2,280 (28 ) 1,346 (59 ) 3,626 (87 ) Total temporarily impaired securities $ 105,042 $ (2,258 ) $ 8,303 $ (250 ) $ 113,345 $ (2,508 ) Held-to-maturity securities: Obligations of states and political subdivisions $ 11,639 $ (425 ) $ 933 $ (98 ) $ 12,572 $ (523 ) |
Note 5 - Loans (Tables)
Note 5 - Loans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Outstanding Loan Balances [Table Text Block] | As of (Amounts in thousands) December 31, Loan Portfolio 2017 2016 Commercial $ 149,088 $ 153,844 Commercial real estate: Real estate – construction and land development 15,902 36,792 Real estate – commercial non-owner occupied 377,668 292,615 Real estate – commercial owner occupied 185,340 167,335 Residential real estate: Real estate – residential - Individual Tax Identification Number ("ITIN") 41,188 45,566 Real estate – residential - 1-4 family mortgage 30,377 20,425 Real estate – residential - equity lines 30,347 35,953 Consumer and other 49,925 51,681 Gross loans 879,835 804,211 Deferred fees and costs 1,710 1,324 Loans, net of deferred fees and costs 881,545 805,535 Allowance for loan and lease losses (11,925 ) (11,544 ) Net loans $ 869,620 $ 793,991 |
Past Due Financing Receivables [Table Text Block] | Greater Recorded (Amounts in thousands) 30-59 60-89 Than 90 Investment > Past Due Loans at Days Past Days Past Days Past Total Past 90 Days and December 31, 2017 Due Due Due Due Current Total Accruing Commercial $ — $ — $ — $ — $ 149,088 $ 149,088 $ — Commercial real estate: Real estate - construction and land development — — — — 15,902 15,902 — Real estate - commercial non-owner occupied — — — — 377,668 377,668 — Real estate - commercial owner occupied 142 — — 142 185,198 185,340 — Residential real estate: Real estate - residential - ITIN 555 122 462 1,139 40,049 41,188 — Real estate - residential - 1-4 family mortgage 290 173 — 463 29,914 30,377 — Real estate - residential - equity lines 141 — — 141 30,206 30,347 — Consumer and other 281 123 — 404 49,521 49,925 — Total $ 1,409 $ 418 $ 462 $ 2,289 $ 877,546 $ 879,835 $ — Greater Recorded (Amounts in thousands) 30-59 60-89 Than 90 Investment > Past Due Loans at Days Past Days Past Days Past Total Past 90 Days and December 31, 2016 Due Due Due Due Current Total Accruing Commercial $ 51 $ — $ — $ 51 $ 153,793 $ 153,844 $ — Commercial real estate: Real estate - construction and land development — — — — 36,792 36,792 — Real estate - commercial non-owner occupied — — 1,196 1,196 291,419 292,615 — Real estate - commercial owner occupied — — 114 114 167,221 167,335 — Residential real estate: Real estate - residential - ITIN 567 80 1,149 1,796 43,770 45,566 — Real estate - residential - 1-4 family mortgage 147 — 856 1,003 19,422 20,425 — Real estate - residential - equity lines 68 36 48 152 35,801 35,953 — Consumer and other 166 70 11 247 51,434 51,681 — Total $ 999 $ 186 $ 3,374 $ 4,559 $ 799,652 $ 804,211 $ — |
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent [Table Text Block] | As of (Amounts in thousands) December 31, Nonaccrual Loans 2017 2016 Commercial $ 1,603 $ 2,749 Commercial real estate: Real estate - commercial non-owner occupied — 1,196 Real estate - commercial owner occupied 600 784 Residential real estate: Real estate - residential - ITIN 2,909 3,576 Real estate - residential - 1-4 family mortgage 606 1,914 Real estate - residential - equity lines 45 917 Consumer and other 36 250 Total $ 5,799 $ 11,386 |
Impaired Financing Receivables [Table Text Block] | As of December 31, 2017 Unpaid (Amounts in thousands) Recorded Principal Related Impaired Loans Investment Balance Allowance With no related allowance recorded: Commercial $ 672 $ 1,205 $ — Commercial real estate: Real estate - commercial non-owner occupied — — — Real estate - commercial owner-occupied 600 665 — Residential real estate: Real estate - residential - ITIN 5,895 7,516 — Real estate - residential - 1-4 family mortgage 414 897 — Real estate - residential - equity lines 45 49 — Consumer and other — — — Total with no related allowance recorded $ 7,626 $ 10,332 $ — With an allowance recorded: Commercial $ 2,482 $ 2,540 $ 690 Commercial real estate: Real estate - commercial non-owner occupied 803 803 77 Real estate - commercial owner-occupied — — — Residential real estate: Real estate - residential - ITIN 1,628 1,678 199 Real estate - residential - 1-4 family mortgage 192 226 2 Real estate - residential - equity lines 380 380 190 Consumer and other 36 36 11 Total with an allowance recorded $ 5,521 $ 5,663 $ 1,169 By loan portfolio: Commercial $ 3,154 $ 3,745 $ 690 Commercial real estate 1,403 1,468 77 Residential real estate 8,554 10,746 391 Consumer and other 36 36 11 Total impaired loans $ 13,147 $ 15,995 $ 1,169 As of December 31, 2016 Unpaid (Amounts in thousands) Recorded Principal Related Impaired Loans Investment Balance Allowance With no related allowance recorded: Commercial $ 1,573 $ 2,438 $ — Commercial real estate: Real estate - commercial non-owner occupied 1,196 1,196 — Real estate - commercial owner-occupied 784 $ 841 — Residential real estate: Real estate - residential - ITIN 6,047 7,685 — Real estate - residential - 1-4 family mortgage 1,914 2,722 — Real estate - residential - equity lines 917 1,342 — Consumer and other 210 216 — Total with no related allowance recorded $ 12,641 $ 16,440 $ — With an allowance recorded: Commercial $ 1,952 $ 1,957 $ 641 Commercial real estate: Real estate - commercial non-owner occupied 808 808 21 Real estate - commercial owner-occupied 337 337 64 Residential real estate: Real estate - residential - ITIN 2,562 2,617 494 Real estate - residential - equity lines 454 454 227 Consumer and other 40 40 14 Total with an allowance recorded $ 6,153 $ 6,213 $ 1,461 By loan portfolio: Commercial $ 3,525 $ 4,395 $ 641 Commercial real estate 3,125 3,182 85 Residential real estate 11,894 14,820 721 Consumer and other 250 256 14 Total impaired loans $ 18,794 $ 22,653 $ 1,461 |
Average Recorded Investment and Interest Income Recognized on Impaired Loans by Loan Class [Table Text Block] | 2017 2016 2015 Average Interest Average Interest Average Interest (Amounts in thousands) Recorded Income Recorded Income Recorded Income Average Recorded Investment and Interest Income Investment Recognized Investment Recognized Investment Recognized Commercial $ 3,211 $ 46 $ 2,605 $ 23 $ 3,533 $ 22 Commercial real estate: Real estate - commercial non-owner occupied 1,548 46 2,013 47 7,306 49 Real estate - commercial owner- occupied 670 2 1,281 25 2,212 59 Residential real estate: Real estate - residential - ITIN 7,961 162 8,939 165 9,679 141 Real estate - residential - 1-4 family mortgage 1,019 — 1,788 — 1,786 — Real estate - residential - equity lines 1,104 19 1,535 26 750 27 Consumer and other 72 — 162 — 33 — Total $ 15,585 $ 275 $ 18,323 $ 286 $ 25,299 $ 298 |
Newly Restructured Loans [Table Text Block] | For The Year Ended December 31, 2017 Rate & (Amounts in thousands) Rate & Principal Payment Payment Troubled Debt Restructuring Modification Types Maturity Reduction Deferral Maturity Deferral Total Residential real estate: Real estate - residential - ITIN $ — $ — $ 60 $ — $ — $ 60 Total $ — $ — $ 60 $ — $ — $ 60 For The Year Ended December 31, 2016 Rate & (Amounts in thousands) Rate & Principal Payment Payment Troubled Debt Restructuring Modification Types Maturity Reduction Deferral Maturity Deferral Total Commercial $ 905 $ — $ — $ 1,120 $ — $ 2,025 Residential real estate: Real estate - residential - ITIN — 81 — — 197 278 Real estate - residential - 1-4 family mortgage 144 — — — — 144 Total $ 1,049 $ 81 $ — $ 1,120 $ 197 $ 2,447 For The Year Ended December 31, 2015 Rate & (Amounts in thousands) Rate & Payment Payment Troubled Debt Restructuring Modification Types Rate Maturity Deferral Maturity Deferral Total Commercial $ — $ 39 $ — $ — $ 708 $ 747 Residential real estate: Real estate - residential - ITIN 115 — 264 — 379 758 Total $ 115 $ 39 $ 264 $ — $ 1,087 $ 1,505 |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | 2017 Pre-Modification Post-Modification (Amounts in thousands) Number of Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Contracts Investment Investment Residential real estate: Real estate - residential - ITIN 1 $ 81 $ 61 Total 1 $ 81 $ 61 2016 Pre-Modification Post-Modification (Amounts in thousands) Number of Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Contracts Investment Investment Commercial 4 $ 2,244 $ 2,266 Residential real estate: Real estate - residential - ITIN 3 372 342 Real estate - residential - 1-4 family mortgage 1 144 144 Total 8 $ 2,760 $ 2,752 2015 Pre-Modification Post-Modification (Amounts in thousands) Number of Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Contracts Investment Investment Commercial 2 $ 872 $ 872 Residential real estate: Real estate - residential - ITIN 11 1,237 1,023 Total 13 $ 2,109 $ 1,895 |
Financing Receivable Credit Quality Indicators [Table Text Block] | (Amounts in thousands) December 31, 2017 Performing and Nonperforming Loans Performing Nonperforming Total Commercial $ 147,485 $ 1,603 $ 149,088 Commercial real estate: Real estate - construction and land development 15,902 — 15,902 Real estate - commercial non-owner occupied 377,668 — 377,668 Real estate - commercial owner occupied 184,740 600 185,340 Residential real estate: Real estate - residential - ITIN 38,279 2,909 41,188 Real estate - residential - 1-4 family mortgage 29,771 606 30,377 Real estate - residential - equity lines 30,302 45 30,347 Consumer and other 49,889 36 49,925 Total $ 874,036 $ 5,799 $ 879,835 (Amounts in thousands) December 31, 2016 Performing and Nonperforming Loans Performing Nonperforming Total Commercial $ 151,095 $ 2,749 $ 153,844 Commercial real estate: Real estate - construction and land development 36,792 — 36,792 Real estate - commercial non-owner occupied 291,419 1,196 292,615 Real estate - commercial owner occupied 166,551 784 167,335 Residential real estate: Real estate - residential - ITIN 41,990 3,576 45,566 Real estate - residential - 1-4 family mortgage 18,511 1,914 20,425 Real estate - residential - equity lines 35,036 917 35,953 Consumer and other 51,431 250 51,681 Total $ 792,825 $ 11,386 $ 804,211 |
Financing Receivable Credit Quality Indicator [Table Text Block] | December 31, 2017 Special (Amounts in thousands) Pass Watch Mention Substandard Doubtful Total Commercial $ 117,087 $ 28,896 $ 40 $ 3,065 $ — $ 149,088 Commercial real estate: Real estate - construction and land development 14,762 — 1,140 — — 15,902 Real estate - commercial non-owner occupied 364,230 9,160 2,900 1,378 — 377,668 Real estate - commercial owner occupied 171,005 8,515 3,907 1,913 — 185,340 Residential real estate: Real estate - residential - ITIN 34,923 — — 6,265 — 41,188 Real estate - residential - 1-4 family mortgage 28,981 791 — 605 — 30,377 Real estate - residential - equity lines 28,457 1,501 63 326 — 30,347 Consumer and other 49,887 — 2 36 — 49,925 Total $ 809,332 $ 48,863 $ 8,052 $ 13,588 $ — $ 879,835 December 31, 2016 Special (Amounts in thousands) Pass Watch Mention Substandard Doubtful Total Commercial $ 124,089 $ 21,684 $ 4,570 $ 3,501 $ — $ 153,844 Commercial real estate: Real estate - construction and land development 36,782 10 — — — 36,792 Real estate - commercial non-owner occupied 284,099 5,398 1,321 1,797 — 292,615 Real estate - commercial owner occupied 157,064 7,301 496 2,474 — 167,335 Residential real estate: Real estate - residential - ITIN 38,279 — — 7,287 — 45,566 Real estate - residential - 1-4 family mortgage 17,696 815 — 1,914 — 20,425 Real estate - residential - equity lines 33,828 858 — 1,267 — 35,953 Consumer and other 51,398 2 — 281 — 51,681 Total $ 743,235 $ 36,068 $ 6,387 $ 18,521 $ — $ 804,211 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | As of December 31, 2017 (Amounts in thousands) Commercial Residential ALLL by Loan Portfolio Commercial Real Estate Real Estate Consumer Unallocated Total Beginning balance $ 2,849 $ 5,578 $ 1,716 $ 955 $ 446 $ 11,544 Charge-offs (51 ) — (483 ) (968 ) — (1,502 ) Recoveries 512 27 178 216 — 933 Provision (818 ) 814 (242 ) 1,232 (36 ) 950 Ending balance $ 2,492 $ 6,419 $ 1,169 $ 1,435 $ 410 $ 11,925 As of December 31, 2016 (Amounts in thousands) Commercial Residential ALLL by Loan Portfolio Commercial Real Estate Real Estate Consumer Unallocated Total Beginning balance $ 2,493 $ 5,784 $ 1,577 $ 770 $ 556 $ 11,180 Charge-offs (1,106 ) (37 ) (829 ) (812 ) — (2,784 ) Recoveries 427 2,480 114 127 — 3,148 Provision 1,035 (2,649 ) 854 870 (110 ) — Ending balance $ 2,849 $ 5,578 $ 1,716 $ 955 $ 446 $ 11,544 As of December 31, 2015 (Amounts in thousands) Commercial Residential ALLL by Loan Portfolio Commercial Real Estate Real Estate Consumer Unallocated Total Beginning balance $ 3,503 $ 4,875 $ 1,670 $ 450 $ 322 $ 10,820 Charge-offs (700 ) (428 ) (749 ) (499 ) — (2,376 ) Recoveries 1,692 771 273 — — 2,736 Provision (2,002 ) 566 383 819 234 — Ending balance $ 2,493 $ 5,784 $ 1,577 $ 770 $ 556 $ 11,180 As of December 31, 2017 Commercial Residential (Amounts in thousands) Commercial Real Estate Real Estate Consumer Unallocated Total ALLL: Individually evaluated for impairment $ 690 $ 77 $ 391 $ 11 $ — $ 1,169 Collectively evaluated for impairment 1,802 6,342 778 1,424 410 10,756 Total 2,492 6,419 1,169 1,435 410 11,925 Gross loans: Individually evaluated for impairment $ 3,154 $ 1,403 $ 8,554 $ 36 $ — $ 13,147 Collectively evaluated for impairment 145,934 577,507 93,358 49,889 — 866,688 Total gross loans $ 149,088 $ 578,910 $ 101,912 $ 49,925 $ — $ 879,835 As of December 31, 2016 Commercial Residential (Amounts in thousands) Commercial Real Estate Real Estate Consumer Unallocated Total ALLL: Individually evaluated for impairment $ 641 $ 85 $ 721 $ 14 $ — $ 1,461 Collectively evaluated for impairment 2,208 5,493 995 941 446 10,083 Total 2,849 5,578 1,716 955 446 11,544 Gross loans: Individually evaluated for impairment $ 3,525 $ 3,125 $ 11,894 $ 250 $ — $ 18,794 Collectively evaluated for impairment 150,319 493,617 90,050 51,431 — 785,417 Total gross loans $ 153,844 $ 496,742 $ 101,944 $ 51,681 $ — $ 804,211 As of December 31, 2015 Commercial Residential (Amounts in thousands) Commercial Real Estate Real Estate Consumer Unallocated Total ALLL: Individually evaluated for impairment $ 122 $ 97 $ 600 $ 13 $ — $ 832 Collectively evaluated for impairment 2,371 5,687 977 757 556 10,348 Total 2,493 5,784 1,577 770 556 11,180 Gross loans: Individually evaluated for impairment $ 2,043 $ 7,733 $ 11,582 $ 32 $ — $ 21,390 Collectively evaluated for impairment 130,762 420,259 94,387 49,841 — 695,249 Total gross loans $ 132,805 $ 427,992 $ 105,969 $ 49,873 $ — $ 716,639 |
Note 7 - Premises and Equipme42
Note 7 - Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | (Amounts in thousands) Premises and Equipment 2017 2016 Land $ 2,063 $ 2,063 Land improvements 241 223 Bank buildings 12,976 12,931 Furniture, fixtures and equipment 12,639 12,130 Software 1,634 1,637 Assets not yet placed in service 337 429 Total premises and equipment 29,890 29,413 Less: accumulated depreciation and amortization (15,142 ) (13,187 ) Premises and equipment, net $ 14,748 $ 16,226 |
Note 8 - Other Real Estate Ow43
Note 8 - Other Real Estate Owned (OREO) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Other Real Estate, Roll Forward [Table Text Block] | (Amounts in thousands) Years Ended December 31, OREO 2017 2016 2015 Balance at beginning of year $ 759 $ 1,423 $ 502 Additions 1,071 189 4,059 Dispositions (1,743 ) (745 ) (3,138 ) Valuation adjustments (52 ) (108 ) — Total $ 35 $ 759 $ 1,423 |
Note 9 - Intangible Assets (Tab
Note 9 - Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | (Amounts in thousands) December 31, Intangibles 2017 Gross carrying amount $ 1,772 Accumulated amortization (407 ) Core deposit intangible, net $ 1,365 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | (Amounts in thousands) For the year ended December 31, Amount 2018 $ 221 2019 221 2020 221 2021 221 2022 221 2023 and thereafter 260 Total $ 1,365 |
Note 10 - Other Assets (Tables)
Note 10 - Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Other Assets [Table Text Block] | (Amounts in thousands) 2017 2016 Qualified Zone Academy Bonds $ 4,740 $ 4,740 Federal Home Loan Bank of San Francisco stock 4,537 4,465 Interest receivable 4,462 4,044 Investments in affordable housing partnerships 3,529 4,217 Prepaid expenses 1,132 772 Loan servicing receivables 643 841 Investment in Bank of Commerce Holdings Trust II 310 310 SBA payments in process 179 50 Other 129 917 Total $ 19,661 $ 20,356 |
Note 11 - Deposits (Tables)
Note 11 - Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Summary of Major Types of Interest Bearing Deposits [Table Text Block] | (Amounts in thousands) As of December 31, Interest-bearing deposits 2017 2016 Interest-bearing demand $ 260,221 $ 198,328 Money market 236,769 207,241 Savings 110,837 113,309 Certificates of deposit, less than $250,000 130,681 159,092 Certificates of deposit, $250,000 and over 58,574 56,298 Total interest-bearing deposits $ 797,082 $ 734,268 |
Summary of Interest Expense by Deposit Type [Table Text Block] | (Amounts in thousands) For the year ended December 31, Deposit Interest Expense 2017 2016 2015 Interest-bearing demand $ 274 $ 201 $ 228 Money market 470 322 232 Savings 200 174 213 Certificates of deposit, less than $250,000 1,429 1,537 1,744 Certificates of deposit, $250,000 and over 759 642 612 Total interest-bearing deposits $ 3,132 $ 2,876 $ 3,029 |
Schedule of Scheduled Maturities of Time Deposits By Maturity [Table Text Block] | (Amounts in thousands) Amounts due in: 2018 $ 105,219 2019 37,248 2020 23,394 2021 12,925 2022 10,380 Thereafter 89 Total certificates of deposit $ 189,255 |
Schedule of Contractual Maturities of Time Deposits One Hundred Thousand or More [Table Text Block] | (Amounts in thousands) Amounts due in: Three months or less $ 7,872 Over three months through six months 8,268 Over six months through twelve months 8,725 Over twelve months 33,709 Total certificates of deposit of $250 thousand or more $ 58,574 |
Note 12 - Term Debt (Tables)
Note 12 - Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | (Amounts in thousands) 2017 2016 Senior debt $ 7,096 $ 8,917 Unamortized debt issuance costs (6 ) (12 ) Subordinated debt 10,000 10,000 Unamortized debt issuance costs (132 ) (172 ) Net term debt $ 16,958 $ 18,733 |
Schedule of Maturities of Long-term Debt [Table Text Block] | (Amounts in thousands) 2018 2019 2020 2021 2022 Thereafter Total Senior debt $ 1,000 $ 1,000 $ 5,096 $ — $ — $ — $ 7,096 Subordinated debt — — — — — 10,000 10,000 Total future maturities $ 1,000 $ 1,000 $ 5,096 $ — $ — $ 10,000 $ 17,096 |
Note 13 - Junior Subordinated48
Note 13 - Junior Subordinated Debentures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Summary of Trust Preferred Securities and Related Common Securities of Trust [Table Text Block] | (Amounts in thousands) Issued Effective Redemption Trust Name Issue Date Amount Rate Rate Maturity Date Date Bank of Commerce Holdings Trust II July 29, 2005 $ 10,310 Floating (2) (1) September 15, 2035 (3) |
Note 14 - Other Liabilities (Ta
Note 14 - Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Summary of Components of Other Liabilities [Table Text Block] | (Amounts in thousands) 2017 2016 Deferred compensation – directors fees $ 3,823 $ 3,753 Salary continuation 3,387 3,410 Severance payable 790 820 Accrued employee incentives 1,170 1,109 Reserve for unfunded commitments 695 695 Dividend payable on common stock 486 401 Delayed equity contributions - affordable housing tax credit partnerships 361 485 Deferred income 315 520 Other loan servicing liabilities 235 576 Other 895 1,408 Total $ 12,157 $ 13,177 |
Note 15 - Commitments and Con50
Note 15 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Lessee, Operating Lease, Disclosure [Table Text Block] | December 31, (Amounts in thousands) 2017 2016 Rent income (1) $ 46 $ 78 Rent expense 841 707 Net rent expense $ 795 $ 629 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | (Amounts in thousands) Amounts due in: 2018 $ 845 2019 866 2020 884 2021 899 2022 807 Thereafter 1,367 Total $ 5,668 |
Commitments and Contingent Liabilities [Table Text Block] | (Amounts in thousands) 2017 2016 Commitments to extend credit $ 217,714 $ 224,082 Standby letters of credit 6,692 1,967 Affordable housing grants 3,338 3,338 Total commitments and contingent liabilities $ 227,744 $ 229,387 |
Note 18 - Shareholders' Equity
Note 18 - Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Weighted Weighted Average Average Aggregate Remaining Number Exercise Intrinsic Contractual of Shares Price Value Term Options outstanding December 31, 2015 234,100 $ 5.77 $ 319,483 5.87 Exercised (1,900 ) $ 5.29 $ 4,789 3.33 Forfeited (43,300 ) $ 8.81 $ n/a n/a Options outstanding December 31, 2016 188,900 $ 5.08 $ 834,625 5.66 Exercised (51,900 ) $ 4.73 $ 245,450 4.42 Forfeited (2,500 ) $ 4.05 $ n/a n/a Options outstanding December 31, 2017 134,500 $ 5.24 $ 704,350 4.76 Exercisable at December 31, 2017 118,920 $ 5.13 $ 609,596 4.51 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | For the Years Ended December 31, (Amounts in thousands, except per share information) 2017 2016 2015 Stock option expense $ 23 $ 24 $ 42 Stock option awards weighted average grant date fair value per share $ — $ — $ 1.33 At December 31, 2017 2016 2015 Unrecognized compensation costs related to non-vested stock option payments $ 17 $ 29 $ 55 Number of exercisable shares 119 157 163 For the Years Ended December 31, (Amounts in thousands, except per share information) 2017 2016 2015 Restricted stock compensation expense $ 196 $ 215 $ 89 Restricted stock awards weighted average grant date fair value per share $ 10.35 $ 5.74 $ 5.90 At December 31, 2017 2016 2015 Unrecognized compensation costs related to non-vested restricted stock payments $ 811 $ 205 $ 181 Weighted Stock Average Grant Number Grant Compensation of Shares Price Expense Shares Granted during the year ended December 31, 2017 4,868 $ 10.05 $ 48,923 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Weighted Weighted Average Average Aggregate Remaining Number Grant Intrinsic Contractual of Shares Price Value Term Unvested restricted shares December 31, 2015 42,676 $ 5.95 $ 285,076 2.49 Granted 65,736 $ 5.74 $ 254,816 1.07 Vested (38,148 ) $ 5.79 $ 229,198 n/a Forfeited (3,084 ) 5.75 n/a n/a Unvested restricted shares December 31, 2016 67,180 $ 5.84 $ 638,210 1.38 Granted 45,070 $ 10.35 $ 466,328 1.32 Vested (37,761 ) $ 5.79 $ 218,600 n/a Unvested restricted shares December 31, 2017 74,489 $ 8.60 $ 640,255 1.03 |
Note 19 - Accumulated Other C52
Note 19 - Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Unrealized Unrealized Accumulated Other Gains (Losses) (Losses) Comprehensive (Amounts in thousands) On Securities On Derivatives Loss Accumulated other comprehensive loss as of December 31, 2015 $ 1,142 $ (1,396 ) $ (254 ) Accumulated other comprehensive loss as of December 31, 2016 $ (659 ) $ — $ (659 ) Accumulated other comprehensive loss as of December 31, 2017 $ (266 ) $ — $ (266 ) |
Note 20 - Regulatory Capital (T
Note 20 - Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Well Minimum Applicable Minimum Capital Capitalized Capital 2017 Capital Ratio plus Capital Capital Actual Requirement Requirement Conservation Conservation Buffer (Amounts in thousands) Amount Ratio Amount Ratio Amount Ratio Buffer Amount Ratio At December 31, 2017: Company Common equity tier 1 capital ratio $ 125,745 12.26 % n/a n/a $ 46,169 4.50 % 1.25 % $ 58,994 5.750 % Tier 1 capital ratio $ 135,745 13.23 % n/a n/a $ 61,559 6.00 % 1.25 % $ 74,384 7.250 % Total capital ratio $ 158,365 15.44 % n/a n/a $ 82,079 8.00 % 1.25 % $ 94,903 9.250 % Tier 1 leverage ratio $ 135,745 10.86 % n/a n/a $ 50,008 4.00 % n/a n/a n/a Bank Common equity tier 1 capital ratio $ 129,139 12.58 % $ 66,703 6.50 % $ 46,179 4.50 % 1.25 % $ 59,006 5.750 % Tier 1 capital ratio $ 129,139 12.58 % $ 82,096 8.00 % $ 61,572 6.00 % 1.25 % $ 74,399 7.250 % Total capital ratio $ 141,760 13.81 % $ 102,620 10.00 % $ 82,096 8.00 % 1.25 % $ 94,923 9.250 % Tier 1 leverage ratio $ 129,139 10.33 % $ 62,486 5.00 % $ 49,989 4.00 % n/a n/a n/a At December 31, 2016: Company Common equity tier 1 capital ratio $ 92,757 9.43 % n/a n/a $ 44,266 4.50 % 0.625 % $ 50,414 5.125 % Tier 1 capital ratio $ 102,496 10.42 % n/a n/a $ 59,021 6.00 % 0.625 % $ 65,169 6.625 % Total capital ratio $ 124,735 12.68 % n/a n/a $ 78,695 8.00 % 0.625 % $ 84,843 8.625 % Tier 1 leverage ratio $ 102,496 9.13 % n/a n/a $ 44,905 4.00 % n/a n/a n/a Bank Common equity tier 1 capital ratio $ 121,098 12.31 % $ 63,962 6.50 % $ 44,281 4.50 % 0.625 % $ 50,432 5.125 % Tier 1 capital ratio $ 121,098 12.31 % $ 78,722 8.00 % $ 59,042 6.00 % 0.625 % $ 65,192 6.625 % Total capital ratio $ 133,337 13.55 % $ 98,403 10.00 % $ 78,722 8.00 % 0.625 % $ 84,873 8.625 % Tier 1 leverage ratio $ 121,098 10.80 % $ 56,043 5.00 % $ 44,835 4.00 % n/a n/a n/a |
Note 21 - Derivatives (Tables)
Note 21 - Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Derivative Instruments, Gain (Loss) [Table Text Block] | (Amounts in thousands) Description Consolidated Statement of Operations 2016 2015 Interest rate swap (1) Interest on term debt $ 396 $ 1,435 Forward starting interest rate swap - terminated (2) Other noninterest expense 2,325 — Total $ 2,721 $ 1,435 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | (Amounts in thousands) December 31, Description 2016 2015 Interest rate swaps $ (1,601 ) $ (843 ) |
Note 22 - Fair Values (Tables)
Note 22 - Fair Values (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | (Amounts in thousands) Carrying Fair Value Measurements Using December 31, 2017 Amounts Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 66,970 $ 66,970 $ — $ — Securities available-for-sale $ 267,954 $ — $ 267,954 $ — Net loans $ 869,620 $ — $ — $ 873,660 Federal Home Loan Bank of San Francisco stock $ 4,536 $ 4,536 $ — $ — Financial liabilities Deposits $ 1,102,732 $ — $ 1,101,523 $ — Term Debt $ 16,958 $ — $ 16,918 $ — Junior subordinated debenture $ 10,310 $ — $ 10,206 $ — (Amounts in thousands) Carrying Fair Value Measurements Using December 31, 2016 Amounts Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 68,407 $ 68,407 $ — $ — Securities available-for-sale $ 175,174 $ — $ 175,174 $ — Securities held-to-maturity $ 31,187 $ — $ 31,374 $ — Net loans $ 793,991 $ — $ — $ 797,144 Federal Home Loan Bank of San Francisco stock $ 4,465 $ 4,465 $ — $ — Financial liabilities Deposits $ 1,004,666 $ — $ 1,004,429 $ — Term Debt $ 18,733 $ — $ 18,726 $ — Junior subordinated debenture $ 10,310 $ — $ 9,077 $ — |
Assets and Liabilities Measured at Fair Value on Recurring Basis [Table Text Block] | (Amounts in thousands) Fair Value at December 31, 2017 Recurring Basis Total Level 1 Level 2 Level 3 Available-for-sale securities U.S. government and agencies $ 40,369 $ — $ 40,369 $ — Obligations of states and political subdivisions 78,844 — 78,844 — Residential mortgage-backed securities and collateralized mortgage obligations 114,592 — 114,592 — Corporate securities 4,992 — 4,992 — Commercial mortgage-backed securities 26,641 — 26,641 — Other investment securities (1) 2,516 — 2,516 — Total assets measured at fair value $ 267,954 $ — $ 267,954 $ — (Amounts in thousands) Fair Value at December 31, 2016 Recurring Basis Total Level 1 Level 2 Level 3 Available-for-sale securities U.S. government and agencies $ 10,354 $ — $ 10,354 $ — Obligations of states and political subdivisions 59,428 — 59,428 — Residential mortgage-backed securities and collateralized mortgage obligations 69,604 — 69,604 — Corporate securities 16,116 — 16,116 — Commercial mortgage-backed securities 15,514 — 15,514 — Other investment securities (1) 4,158 — 4,158 — Total assets measured at fair value $ 175,174 $ — $ 175,174 $ — |
Fair Value Measurements, Nonrecurring [Table Text Block] | (Amounts in thousands) Fair Value at December 31, 2017 Nonrecurring basis Total Level 1 Level 2 Level 3 Collateral dependent impaired loans $ 60 $ — $ — $ 60 Other real estate owned 35 — — 35 Total assets measured at fair value $ 95 $ — $ — $ 95 (Amounts in thousands) Fair Value at December 31, 2016 Nonrecurring basis Total Level 1 Level 2 Level 3 Collateral dependent impaired loans $ 1,587 $ — $ — $ 1,587 Other real estate owned 219 — — 219 Total assets measured at fair value $ 1,806 $ — $ — $ 1,806 |
Loss from Nonrecurring Fair Value [Table Text Block] | (Amounts in thousands) December 31, Fair value adjustments 2017 2016 2015 Collateral dependent impaired loans $ 20 $ 1,183 $ 476 Other real estate owned 38 77 197 Total $ 58 $ 1,260 $ 673 |
Note 23 - Income Taxes (Tables)
Note 23 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | (Amounts in thousands) Current Deferred Total Year ended December 31, 2017: Federal $ 2,005 $ 2,837 $ 4,842 State 1,474 (76 ) 1,398 Affordable housing partnership amortization 688 — 688 $ 4,167 $ 2,761 $ 6,928 Year ended December 31, 2016: Federal $ 283 $ 409 $ 692 State 582 86 668 Affordable housing partnership amortization 598 — 598 $ 1,463 $ 495 $ 1,958 Year ended December 31, 2015: Federal $ 1,183 $ 509 $ 1,692 State 981 75 1,056 Affordable housing partnership amortization 714 — 714 Total $ 2,878 $ 584 $ 3,462 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2017 2016 2015 Income tax at the federal statutory rate 34.00 % 34.00 % 34.00 % Deferred tax asset write-down 17.45 % 5.02 % — % State franchise tax, net of federal tax benefit 6.46 % 6.11 % 5.79 % Amortization of affordable housing credit partnerships 4.82 % 8.11 % 5.91 % Officer life insurance (2.50 %) (2.89 %) (1.81 %) Tax-exempt interest (5.23 %) (10.85 %) (8.02 %) Affordable housing credits and benefits (5.68 %) (11.69 %) (6.42 %) Other (0.78 %) (0.68 %) (0.71 %) Effective Tax Rate 48.54 % 27.13 % 28.74 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | (Amounts in thousands) 2017 2016 Deferred tax assets: Loan and lease loss reserves $ 3,526 $ 4,751 Deferred compensation 2,365 3,285 State franchise taxes 291 260 Branch acquisition costs 274 366 Unrealized losses other comprehensive income 134 553 Non accrued interest 105 341 Federal tax credits — 525 Other 484 1,093 Total deferred tax assets 7,179 11,174 Deferred tax liabilities: Deferred loan origination costs (619 ) (904 ) Unrealized gains other comprehensive income — (92 ) Basis difference in fixed assets — (164 ) Other (55 ) (472 ) Total deferred tax liabilities (674 ) (1,632 ) Net deferred tax asset $ 6,505 $ 9,542 |
Schedule of Uncertain Tax Positions Roll Forward [Table Text Block] | (Amounts in thousands) 2017 2016 Balance, beginning of period $ 988 $ — Additions for tax positions related to prior years — 988 balance, end of period $ 988 $ 988 |
Note 24 - Qualified Affordabl57
Note 24 - Qualified Affordable Housing Partnership Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Proportional Amortization Method Investment Qualified Affordable Housing Project [Table Text Block] | At December 31, 2017 For the year ended December 31, 2017 Original Current Unfunded Tax Credits Amortization Net (Amounts in thousands) Investment Recorded Liability and of Income Tax Qualified Affordable Housing Partnerships Value Investment Obligation Benefits Investments Benefit Raymond James California Housing Opportunities Fund II $ 2,000 $ 1,182 $ 20 $ 224 $ 179 $ 45 WNC Institutional Tax Credit Fund 38, L.P. 1,000 589 — 139 108 31 Merritt Community Capital Corporation Fund XV, L.P. 2,500 1,476 341 271 237 34 California Affordable Housing Fund 2,454 282 — 176 164 12 Total $ 7,954 $ 3,529 $ 361 $ 810 $ 688 $ 122 At December 31, 2016 For the year ended December 31, 2016 Original Current Unfunded Tax Credits Amortization Net (Amounts in thousands) Investment Recorded Liability and of Income Tax Qualified Affordable Housing Partnerships Value Investment Obligation Benefits Investments Benefit Raymond James California Housing Opportunities Fund II $ 2,000 $ 1,361 $ 45 $ 237 $ 192 $ 45 WNC Institutional Tax Credit Fund 38, L.P. 1,000 698 73 143 100 43 Merritt Community Capital Corporation Fund XV, L.P. 2,500 1,713 367 266 106 160 California Affordable Housing Fund 2,454 445 — 205 200 5 Total $ 7,954 $ 4,217 $ 485 $ 851 $ 598 $ 253 |
Qualified Affordable Housing Project Investments Tax Credits and Benefits [Table Text Block] | For the Years Ended December 31, 2017 2016 2015 (Amounts in thousands) Generated Tax Benefits from Generated Tax Benefits from Generated Tax Benefits from Qualified Affordable Housing Partnerships Tax Credits Taxable Losses Tax Credits Taxable Losses Tax Credits Taxable Losses Raymond James California Housing Opportunities Fund II $ 176 $ 48 $ 184 $ 53 $ 168 $ 62 WNC Institutional Tax Credit Fund 38, L.P. 113 26 107 36 93 27 Merritt Community Capital Corporation Fund XV, L.P. 215 56 206 60 214 58 California Affordable Housing Fund 126 50 158 47 158 43 Total $ 630 $ 180 $ 655 $ 196 633 $ 190 |
Qualified Affordable Housing Projects Future Income Tax Benefit [Table Text Block] | (Amounts in thousands) Raymond James Merritt Community California Qualified Affordable Housing Partnerships: California Housing WNC Institutional Capital Affordable Total Anticipated income tax benefit, net less Opportunities Tax Credit Corporation Housing Income Tax amortization of investments Fund II Fund 38, L.P. Fund XV, L.P Fund Benefit, Net 2018 $ 23 $ 21 $ 3 $ (17 ) $ 30 2019 23 17 4 (14 ) 30 2020 22 17 4 (14 ) 29 2021 23 16 3 (14 ) 28 2022 and thereafter 61 42 9 (43 ) 69 Total $ 152 $ 113 $ 23 $ (102 ) $ 186 |
Note 25 - Branch Acquisition (T
Note 25 - Branch Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Fair Value and As Recorded by Other Merger Bank of Related As Recorded by (Amounts in thousands) America Adjustments the Company Consideration paid: Cash paid $ 6,656 Total consideration $ 6,656 Assets acquired: Cash and cash equivalents $ 149,067 $ — $ 149,067 Premises and equipment, net 1,835 2,355 4,190 Other assets 201 — 201 Core deposit intangible — 1,772 1,772 Total assets acquired $ 151,103 $ 4,127 $ 155,230 Liabilities assumed: Deposits $ 149,047 $ — $ 149,047 Other liabilities 20 172 192 Total liabilities assumed $ 149,067 $ 172 $ 149,239 Net identifiable assets acquired over liabilities assumed $ 2,036 $ 3,955 $ 5,991 Goodwill $ 665 |
Note 26 - Earnings Per Common59
Note 26 - Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | (Amounts in thousands, except per share information) Earnings Per Share 2017 2016 2015 Numerators: Net income $ 7,344 $ 5,259 $ 8,586 Less: Preferred stock extinguishment costs — — 102 Preferred stock dividends — — 189 Net income available to common shareholders $ 7,344 $ 5,259 $ 8,295 Denominators: Weighted average number of common shares outstanding - basic (1) 15,207 13,367 13,331 Effect of potentially dilutive common shares (2) 103 58 34 Weighted average number of common shares outstanding - diluted 15,310 13,425 13,365 Earnings per common share: Basic $ 0.48 $ 0.39 $ 0.62 Diluted $ 0.48 $ 0.39 $ 0.62 Anti-dilutive options not included in earnings per share calculation — 45 121 Anti-dilutive restricted shares not included in diluted earnings per share calculation 7 — 41 |
Note 27 - Related Party Trans60
Note 27 - Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Aggregate Activity Involving Related Party Borrowers [Table Text Block] | (Amounts in thousands) 2017 2016 Balance at beginning of year $ 13,424 $ 13,707 Advances on existing lines of credit 29,166 24,447 Principal repayments (29,360 ) (24,730 ) Balance at end of year $ 13,230 $ 13,424 |
Note 28 - Parent Company Fina61
Note 28 - Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | (Amounts in thousands) 2017 2016 Assets: Cash $ 23,984 $ 493 Investment in: Redding Bank of Commerce 130,658 122,707 Bank of Commerce Mortgage (64 ) (64 ) Bank of Commerce Holdings Trust II 310 310 Other assets 169 124 Total Assets $ 155,057 $ 123,570 Liabilities and shareholders' equity: Term debt: Senior debt, net $ 7,090 $ 8,904 Subordinated debt, net 9,868 9,829 Junior subordinated debentures 10,310 10,310 Other liabilities 525 421 Total liabilities 27,793 29,464 Shareholders ’ equity 127,264 94,106 Total liabilities and shareholders ’ equity $ 155,057 $ 123,570 |
Condensed Income Statement [Table Text Block] | (Amounts in thousands) 2017 2016 2015 Income: Other income $ 9 $ 7 $ 6 Dividends from subsidiaries 2,200 4,200 2,850 Total income 2,209 4,207 2,856 Expenses: Management fees paid to subsidiaries 278 259 229 Interest expense 1,452 1,409 267 Noninterest expense 474 345 337 Total expenses 2,204 2,013 833 Income before income taxes and equity in undistributed net income of subsidiaries 5 2,194 2,023 Income tax expense 1 1 1 Income before equity in undistributed net income of subsidiaries 4 2,193 2,022 Equity in undistributed net income of subsidiaries 7,340 3,066 6,564 Net income $ 7,344 $ 5,259 $ 8,586 Less: Preferred stock extinguishment costs — — 102 Less: Preferred dividends — — 189 Income available to common shareholders $ 7,344 $ 5,259 $ 8,295 |
Condensed Cash Flow Statement [Table Text Block] | (Amounts in thousands) 2017 2016 2015 Cash flows from operating activities: Net income $ 7,344 $ 5,259 $ 8,586 Adjustments to reconcile net income to net cash provided by operating activities: Compensation associated with stock options — — 1 Equity in undistributed net income of subsidiaries (7,340 ) (3,066 ) (6,564 ) Amortization of debt issuance costs 44 40 — Provision for depreciation and amortization 6 — — Decrease in other assets 32 6 371 Increase (decrease) in other liabilities 59 (137 ) 229 Net cash provided by operating activities 145 2,102 2,623 Cash flows from investing activities: Purchases of premises and equipment (82 ) — — Net cash (used) by investing activities (82 ) — — Cash flows from financing activities: Advances on term debt — — 20,000 Repayment of term debt (1,819 ) (1,001 ) (83 ) Debt issuance costs paid — — (223 ) Redemption of preferred stock — — (20,000 ) Preferred stock extinguishment costs — — (33 ) Cash dividends paid on preferred stock — — (189 ) Cash dividends paid on common stock (1,776 ) (1,603 ) (1,601 ) Proceeds from stock options exercised 245 10 156 Net proceeds from issuance of common stock 26,778 — — Net cash provided by (used in) financing activities 23,428 (2,594 ) (1,973 ) Net increase (decrease) in cash and cash equivalents 23,491 (492 ) 650 Cash and cash equivalents at the beginning of year 493 985 335 Cash and cash equivalents at the end of year $ 23,984 $ 493 $ 985 Supplemental disclosures of non cash financing activities: Stock compensation grants $ 41 $ — $ — Common stock issued under employee plans $ — $ 84 $ 36 |
Note 29 - Quarterly Financial62
Note 29 - Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | March 31, June 30, September 30, December 31, Four (Amounts in thousands, except for share information) 2017 2017 2017 2017 Quarters Net interest income $ 9,734 $ 10,175 $ 10,584 $ 10,869 $ 41,362 Provision for loan and lease losses 200 300 — 450 950 Noninterest income 1,471 995 1,076 1,282 4,824 Noninterest expense 7,990 7,726 7,357 7,891 30,964 Income before provision for income tax 3,015 3,144 4,303 3,810 14,272 Provision for income tax 763 935 1,427 3,803 6,928 Income available to common shareholders $ 2,252 $ 2,209 $ 2,876 $ 7 $ 7,344 Earnings per share - basic $ 0.17 $ 0.15 $ 0.18 $ — $ 0.48 Weighted average shares - basic 13,416 15,014 16,191 16,195 15,207 Earnings per share - diluted $ 0.17 $ 0.15 $ 0.18 $ — $ 0.48 Weighted average shares - diluted 13,521 15,113 16,288 16,306 15,310 March 31, June 30, September 30, December 31, Four (Amounts in thousands, except for share information) 2016 2016 2016 2016 Quarters Net interest income $ 8,304 $ 9,217 $ 9,276 $ 9,434 $ 36,231 Provision for loan and lease losses — — — — — Noninterest income 824 412 990 1,260 3,486 Noninterest expense 9,876 7,643 7,156 7,825 32,500 (Loss) income before provision for income tax (748 ) 1,986 3,110 2,869 7,217 Provision for income tax 212 430 744 572 1,958 (Loss) income available to common shareholders $ (960 ) $ 1,556 $ 2,366 $ 2,297 $ 5,259 (Loss) earnings per share - basic $ (0.07 ) $ 0.11 $ 0.18 $ 0.17 $ 0.39 Weighted average shares - basic 13,360 13,367 13,369 13,370 13,367 (Loss) earnings per share - diluted $ (0.07 ) $ 0.11 $ 0.18 $ 0.17 $ 0.39 Weighted average shares - diluted 13,403 13,425 13,439 13,476 13,425 |
Note 1 - The Business of the 63
Note 1 - The Business of the Company (Details Textual) | Dec. 31, 2017 |
Number Of Bank Branches | 9 |
Note 2 - Summary of Significa64
Note 2 - Summary of Significant Accounting Policies (Details Textual) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) | |
Number Of Wholly Owned Trusts | 1 | 1 | |
Minimum Risk Rating Range for Loan and Lease Losses | 1 | ||
Maximum Risk Rating Range for Loan and Lease Losses | 8 | ||
Percentage of Unallocated Allowance Amount out of Allowance for Loan and Lease Losses | 3.00% | 4.00% | |
Percentage of Portfolio Secured by Real Estate | 77.00% | ||
Recognize Tax Benefit in Percentage | 50.00% | ||
Number of Operating Segments | 1 | ||
Share-based Compensation Share-based Awards Non-Qualified Stock Options Term Maximum | 10 years | ||
Advertising Expense | $ | $ 61 | $ 171 | $ 64 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 0 | 0 | |
The Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 100.00% | ||
The Plan [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Minimum [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Minimum [Member] | The Plan [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Minimum [Member] | Equipment [Member] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Maximum [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Maximum [Member] | The Plan [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Maximum [Member] | Equipment [Member] | |||
Property, Plant and Equipment, Useful Life | 7 years | ||
Maximum [Member] | Building [Member] | |||
Property, Plant and Equipment, Useful Life | 39 years |
Note 2 - Summary of Significa65
Note 2 - Summary of Significant Accounting Policies - Share-based Compensation Fair Value Assumptions (Details) | 12 Months Ended |
Dec. 31, 2015$ / shares | |
Volatility | 26.44% |
Risk free interest rate | 1.64% |
Expected dividends (in dollars per share) | $ 0.12 |
Annual dividend rate | 2.05% |
Assumed forfeiture rate | |
Expected life (in years) (Year) | 7 years |
Note 3 - Restrictions on Cash66
Note 3 - Restrictions on Cash and Due from Banks (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and Securities Segregated under Federal and Other Regulations | $ 450 | $ 450 |
Cash Reserve Deposit Required and Made | $ 1,700 | $ 1,500 |
Note 4 - Securities (Details Te
Note 4 - Securities (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Jun. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | |
Held-to-maturity Securities | $ 31,187 | $ 30,300 | ||||
Held-to-maturity Securities, Fair Value | 31,400 | |||||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | $ 1,200 | |||||
Other Comprehensive Income (Loss), Transfers from Held-to-maturity to Available-for-Sale Securities, before Tax | 167,000 | 1,208 | ||||
Securities Held as Collateral, at Fair Value | $ 62,600 | $ 62,600 | $ 39,200 | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 138 | 138 | 119 | |||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 0 | $ 546 | ||||
Subordinated Debt [Member] | ||||||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 546 | |||||
Residential Mortgage Backed Securities and Collateralized Mortgage Obligations [Member] | ||||||
Available for Sale Securities, Percent of Portfolio Guaranteed | 56.00% | 56.00% | 49.00% | |||
Commercial Mortgage Backed Securities [Member] | ||||||
Available for Sale Securities, Percent of Portfolio Guaranteed | 90.00% | 90.00% | 91.00% |
Note 4 - Securities - Securitie
Note 4 - Securities - Securities Reconciliation (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Available-for-sale securities: | |||
Available-for-sale securities, amortized costs | $ 268,406 | $ 176,518 | |
Available-for-sale securities, gross unrealized gain | 2,221 | 1,164 | |
Available-for-sale securities, gross unrealized loss | (2,673) | (2,508) | |
Securities available-for-sale | 267,954 | 175,174 | |
Held-to-maturity securities: | |||
Securities held-to-maturity, at amortized cost | $ 30,300 | 31,187 | |
Held-to-maturity securities, gross unrealized gain | 1,200 | ||
Held-to-maturity securities, fair value | $ 31,400 | ||
US Government Agencies Debt Securities [Member] | |||
Available-for-sale securities: | |||
Available-for-sale securities, amortized costs | 40,319 | 10,427 | |
Available-for-sale securities, gross unrealized gain | 196 | 10 | |
Available-for-sale securities, gross unrealized loss | (146) | (83) | |
Securities available-for-sale | 40,369 | 10,354 | |
US States and Political Subdivisions Debt Securities [Member] | |||
Available-for-sale securities: | |||
Available-for-sale securities, amortized costs | 77,412 | 58,847 | |
Available-for-sale securities, gross unrealized gain | 1,910 | 1,001 | |
Available-for-sale securities, gross unrealized loss | (478) | (420) | |
Securities available-for-sale | 78,844 | 59,428 | |
Held-to-maturity securities: | |||
Securities held-to-maturity, at amortized cost | 31,187 | ||
Held-to-maturity securities, gross unrealized gain | 710 | ||
Held-to-maturity securities, gross unrealized loss | (523) | ||
Held-to-maturity securities, fair value | 31,374 | ||
Residential Mortgage Backed Securities and Collateralized Mortgage Obligations [Member] | |||
Available-for-sale securities: | |||
Available-for-sale securities, amortized costs | 116,061 | 71,068 | |
Available-for-sale securities, gross unrealized gain | 69 | 33 | |
Available-for-sale securities, gross unrealized loss | (1,538) | (1,497) | |
Securities available-for-sale | 114,592 | 69,604 | |
Corporate Debt Securities [Member] | |||
Available-for-sale securities: | |||
Available-for-sale securities, amortized costs | 5,079 | 16,153 | |
Available-for-sale securities, gross unrealized gain | 18 | 103 | |
Available-for-sale securities, gross unrealized loss | (105) | (140) | |
Securities available-for-sale | 4,992 | 16,116 | |
Commercial Mortgage Backed Securities [Member] | |||
Available-for-sale securities: | |||
Available-for-sale securities, amortized costs | 26,995 | 15,786 | |
Available-for-sale securities, gross unrealized gain | 24 | 9 | |
Available-for-sale securities, gross unrealized loss | (378) | (281) | |
Securities available-for-sale | 26,641 | 15,514 | |
Asset-backed Securities [Member] | |||
Available-for-sale securities: | |||
Available-for-sale securities, amortized costs | 2,540 | 4,237 | |
Available-for-sale securities, gross unrealized gain | 4 | 8 | |
Available-for-sale securities, gross unrealized loss | (28) | (87) | |
Securities available-for-sale | $ 2,516 | $ 4,158 |
Note 4 - Securities - Expected
Note 4 - Securities - Expected Maturities of Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale securities, amortized cost, one year or less | $ 1,425 | |
Available-for-sale securities, fair value, one year or less | 1,430 | |
Available-for-sale securities, amortized cost, One year through five years | 87,888 | |
Available-for-sale securities, fair value, One year through five years | 87,424 | |
Available-for-sale securities, amortized cost, Five years through ten years | 83,450 | |
Available-for-sale securities, fair value, Five years through ten years | 83,430 | |
Available-for-sale securities, amortized cost, after ten years | 95,643 | |
Available-for-sale securities, fair value, after ten years | 95,670 | |
Available-for-sale securities, amortized cost, total | 268,406 | |
Available-for-sale securities, fair value, total | $ 267,954 | $ 175,174 |
Note 4 - Securities - Sales of
Note 4 - Securities - Sales of Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Proceeds from sales of securities | $ 64,349 | $ 51,025 | $ 71,277 |
Gross realized gains on sales of securities | 315 | 352 | 556 |
Gross realized losses on sales of securities | (178) | (108) | (113) |
Gain on investment securities, net | 137 | 244 | 443 |
US Government Agencies Debt Securities [Member] | |||
Proceeds from sales of securities | 64,349 | 51,025 | 71,277 |
Gross realized gains on sales of securities | 25 | 16 | |
Gross realized losses on sales of securities | (13) | (33) | |
US States and Political Subdivisions Debt Securities [Member] | |||
Gross realized gains on sales of securities | 161 | 188 | 97 |
Gross realized losses on sales of securities | (102) | (3) | (29) |
Residential Mortgage Backed Securities and Collateralized Mortgage Obligations [Member] | |||
Gross realized gains on sales of securities | 52 | 17 | 142 |
Gross realized losses on sales of securities | (56) | (64) | (12) |
Corporate Debt Securities [Member] | |||
Gross realized gains on sales of securities | 79 | 105 | 161 |
Gross realized losses on sales of securities | (3) | (27) | (14) |
Commercial Mortgage Backed Securities [Member] | |||
Gross realized gains on sales of securities | 3 | 4 | 14 |
Gross realized losses on sales of securities | (17) | (1) | |
Asset-backed Securities [Member] | |||
Gross realized gains on sales of securities | 20 | 13 | 126 |
Gross realized losses on sales of securities | $ (25) |
Note 4 - Securities - Securit71
Note 4 - Securities - Securities in an Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale securities, less than 12 months, fair value | $ 121,822 | $ 105,042 |
Available-for-sale securities, less than 12 months, unrealized losses | (1,363) | (2,258) |
Available-for-sale securities, 12 months or more, fair value | 54,495 | 8,303 |
Available-for-sale securities, 12 months or more, unrealized losses | (1,310) | (250) |
Available-for-sale securities, fair value | 176,317 | 113,345 |
Available-for-sale securities, unrealized losses | (2,673) | (2,508) |
US Government Agencies Debt Securities [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 18,140 | 9,139 |
Available-for-sale securities, less than 12 months, unrealized losses | (102) | (83) |
Available-for-sale securities, 12 months or more, fair value | 2,131 | |
Available-for-sale securities, 12 months or more, unrealized losses | (44) | |
Available-for-sale securities, fair value | 20,271 | 9,139 |
Available-for-sale securities, unrealized losses | (146) | (83) |
US States and Political Subdivisions Debt Securities [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 15,030 | 20,329 |
Available-for-sale securities, less than 12 months, unrealized losses | (255) | (420) |
Available-for-sale securities, 12 months or more, fair value | 8,368 | |
Available-for-sale securities, 12 months or more, unrealized losses | (223) | |
Available-for-sale securities, fair value | 23,398 | 20,329 |
Available-for-sale securities, unrealized losses | (478) | (420) |
Held-to-maturity securities, less than 12 months, fair value | 11,639 | |
Held-to-maturity securities, less than 12 months, unrealized losses | (425) | |
Held-to-maturity securities, 12 months or more, fair value | 933 | |
Held-to-maturity securities, 12 months or more, unrealized losses | (98) | |
Held-to-maturity securities, fair value | 12,572 | |
Held-to-maturity securities, unrealized losses | (523) | |
Residential Mortgage Backed Securities and Collateralized Mortgage Obligations [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 75,323 | 52,345 |
Available-for-sale securities, less than 12 months, unrealized losses | (827) | (1,396) |
Available-for-sale securities, 12 months or more, fair value | 31,036 | 4,108 |
Available-for-sale securities, 12 months or more, unrealized losses | (711) | (101) |
Available-for-sale securities, fair value | 106,359 | 56,453 |
Available-for-sale securities, unrealized losses | (1,538) | (1,497) |
Corporate Debt Securities [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 8,908 | |
Available-for-sale securities, less than 12 months, unrealized losses | (140) | |
Available-for-sale securities, 12 months or more, fair value | 2,934 | |
Available-for-sale securities, 12 months or more, unrealized losses | (105) | |
Available-for-sale securities, fair value | 2,934 | 8,908 |
Available-for-sale securities, unrealized losses | (105) | (140) |
Commercial Mortgage Backed Securities [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 11,162 | 12,041 |
Available-for-sale securities, less than 12 months, unrealized losses | (151) | (191) |
Available-for-sale securities, 12 months or more, fair value | 10,026 | 2,849 |
Available-for-sale securities, 12 months or more, unrealized losses | (227) | (90) |
Available-for-sale securities, fair value | 21,188 | 14,890 |
Available-for-sale securities, unrealized losses | (378) | (281) |
Asset-backed Securities [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 2,167 | 2,280 |
Available-for-sale securities, less than 12 months, unrealized losses | (28) | (28) |
Available-for-sale securities, 12 months or more, fair value | 1,346 | |
Available-for-sale securities, 12 months or more, unrealized losses | (59) | |
Available-for-sale securities, fair value | 2,167 | 3,626 |
Available-for-sale securities, unrealized losses | $ (28) | $ (87) |
Note 5 - Loans (Details Textual
Note 5 - Loans (Details Textual) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | $ 2,800 | $ 2,900 | |
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 226 | 353 | $ 228 |
Impaired Financing Receivable, Recorded Investment | $ 13,147 | $ 18,794 | |
Percentage of Collateral Coverage to Loan Balance to Consider Restructured Loan to Performing and Accrual Status | 100.00% | ||
Financing Receivable, Modifications, Number of Contracts | 1 | 8 | 13 |
Loans and Leases Receivable, Impaired, Commitment to Lend | $ 33 | $ 0 | |
Financing Receivable, Modifications, Recorded Investment | $ 10,900 | $ 12,100 | |
Financing Receivable, Number of Contracts Qualified as Troubled Debt Restructuring | 116 | ||
Troubled Debt Restructurings Percentage of Gross Portfolio Loans | 1.24% | 1.50% | |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | 0 | 0 |
Doubtful Grade Remaining Outstanding Period, Minimum | 180 days | ||
Mortgage Loans in Process of Foreclosure, Amount | $ 530 | ||
Loans and Leases Receivable, Allowance | $ 11,925 | $ 11,544 | |
Percentage of Allowance for Loan and Lease Losses out of Net Loans | 1.36% | 1.44% | |
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | $ 227,700 | $ 229,400 | |
Reserve for Unfunded Commitments Included in Other Liabilities | $ 695 | $ 695 | |
Percentage of Loan Portfolio Secured by Real Estate | 77.00% | ||
Percentage of Unallocated Allowance Amount out of Allowance for Loan and Lease Losses | 3.00% | 4.00% | |
Maximum Loan to Value, Percentage | 80.00% | ||
Commercial Portfolio Segment [Member] | |||
Impaired Financing Receivable, Recorded Investment | $ 3,154 | $ 3,525 | |
Financing Receivable, Modifications, Number of Contracts | 4 | 2 | |
Commercial Portfolio Segment [Member] | Line of Credit [Member] | |||
Financing Receivable, Modifications, Number of Contracts | 1 | ||
Performing Financial Instruments [Member] | |||
Impaired Financing Receivable, Recorded Investment | $ 7,300 | $ 7,100 | |
Financing Receivable, Number of Contracts Qualified as Troubled Debt Restructuring | 110 |
Note 5 - Loans - Outstanding Lo
Note 5 - Loans - Outstanding Loan Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Gross loans | $ 879,835 | $ 804,211 | $ 716,639 |
Deferred fees and costs | 1,710 | 1,324 | |
Loans, net of deferred fees and costs | 881,545 | 805,535 | |
Allowance for loan and lease losses | (11,925) | (11,544) | |
Net loans | 869,620 | 793,991 | |
Commercial Portfolio Segment [Member] | |||
Gross loans | 149,088 | 153,844 | 132,805 |
Commercial Real Estate Portfolio Segment [Member] | |||
Gross loans | 578,910 | 496,742 | 427,992 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Gross loans | 15,902 | 36,792 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | |||
Gross loans | 377,668 | 292,615 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | |||
Gross loans | 185,340 | 167,335 | |
Residential Portfolio Segment [Member] | |||
Gross loans | 101,912 | 101,944 | 105,969 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | |||
Gross loans | 41,188 | 45,566 | |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | |||
Gross loans | 30,377 | 20,425 | |
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | |||
Gross loans | 30,347 | 35,953 | |
Consumer Portfolio Segment [Member] | |||
Gross loans | $ 49,925 | $ 51,681 | $ 49,873 |
Note 5 - Loans - Age Analysis o
Note 5 - Loans - Age Analysis of Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans, past due | $ 2,289 | $ 4,559 | |
Loans, current | 877,546 | 799,652 | |
Gross loans | 879,835 | 804,211 | $ 716,639 |
Recorded investment greater than 90 days and accruing | |||
Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans, past due | 1,409 | 999 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans, past due | 418 | 186 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans, past due | 462 | 3,374 | |
Commercial Portfolio Segment [Member] | |||
Loans, past due | 51 | ||
Loans, current | 149,088 | 153,793 | |
Gross loans | 149,088 | 153,844 | 132,805 |
Recorded investment greater than 90 days and accruing | |||
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans, past due | 51 | ||
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans, past due | |||
Commercial Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans, past due | |||
Commercial Real Estate Portfolio Segment [Member] | |||
Gross loans | 578,910 | 496,742 | 427,992 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Loans, past due | |||
Loans, current | 15,902 | 36,792 | |
Gross loans | 15,902 | 36,792 | |
Recorded investment greater than 90 days and accruing | |||
Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | |||
Loans, past due | 1,196 | ||
Loans, current | 377,668 | 291,419 | |
Gross loans | 377,668 | 292,615 | |
Recorded investment greater than 90 days and accruing | |||
Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | |||
Loans, past due | 142 | 114 | |
Loans, current | 185,198 | 167,221 | |
Gross loans | 185,340 | 167,335 | |
Recorded investment greater than 90 days and accruing | |||
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Construction Loans [Member] | |||
Loans, past due | |||
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Non-owner Occupied [Member] | |||
Loans, past due | |||
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Owner Occupied Loan [Member] | |||
Loans, past due | 142 | ||
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Construction Loans [Member] | |||
Loans, past due | |||
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Non-owner Occupied [Member] | |||
Loans, past due | |||
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Owner Occupied Loan [Member] | |||
Loans, past due | |||
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Construction Loans [Member] | |||
Loans, past due | |||
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Non-owner Occupied [Member] | |||
Loans, past due | 1,196 | ||
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Owner Occupied Loan [Member] | |||
Loans, past due | 114 | ||
Residential Portfolio Segment [Member] | |||
Gross loans | 101,912 | 101,944 | 105,969 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | |||
Loans, past due | 1,139 | 1,796 | |
Loans, current | 40,049 | 43,770 | |
Gross loans | 41,188 | 45,566 | |
Recorded investment greater than 90 days and accruing | |||
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | |||
Loans, past due | 463 | 1,003 | |
Loans, current | 29,914 | 19,422 | |
Gross loans | 30,377 | 20,425 | |
Recorded investment greater than 90 days and accruing | |||
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | |||
Loans, past due | 141 | 152 | |
Loans, current | 30,206 | 35,801 | |
Gross loans | 30,347 | 35,953 | |
Recorded investment greater than 90 days and accruing | |||
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | |||
Loans, past due | 555 | 567 | |
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | |||
Loans, past due | 290 | 147 | |
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Home Equity Loan [Member] | |||
Loans, past due | 141 | 68 | |
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | |||
Loans, past due | 122 | 80 | |
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | |||
Loans, past due | 173 | ||
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Home Equity Loan [Member] | |||
Loans, past due | 36 | ||
Residential Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | |||
Loans, past due | 462 | 1,149 | |
Residential Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | |||
Loans, past due | 856 | ||
Residential Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Home Equity Loan [Member] | |||
Loans, past due | 48 | ||
Consumer Portfolio Segment [Member] | |||
Loans, past due | 404 | 247 | |
Loans, current | 49,521 | 51,434 | |
Gross loans | 49,925 | 51,681 | $ 49,873 |
Recorded investment greater than 90 days and accruing | |||
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans, past due | 281 | 166 | |
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans, past due | 123 | 70 | |
Consumer Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans, past due | $ 11 |
Note 5 - Loans - Nonaccrual Loa
Note 5 - Loans - Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Nonaccrual loans | $ 5,799 | $ 11,386 |
Commercial Portfolio Segment [Member] | ||
Nonaccrual loans | 1,603 | 2,749 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | ||
Nonaccrual loans | 1,196 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | ||
Nonaccrual loans | 600 | 784 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | ||
Nonaccrual loans | 2,909 | 3,576 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | ||
Nonaccrual loans | 606 | 1,914 |
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Nonaccrual loans | 45 | 917 |
Consumer Portfolio Segment [Member] | ||
Nonaccrual loans | $ 36 | $ 250 |
Note 5 - Loans - Impaired Loans
Note 5 - Loans - Impaired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Recorded investment with no related allowance recorded | $ 7,626 | $ 12,641 |
Unpaid principal balance with no related allowance recorded | 10,332 | 16,440 |
Recorded investment with related allowance recorded | 5,521 | 6,153 |
Unpaid principal balance with related allowance recorded | 5,663 | 6,213 |
Related allowance | 1,169 | 1,461 |
Recorded investment | 13,147 | 18,794 |
Unpaid principle balance | 15,995 | 22,653 |
Commercial Portfolio Segment [Member] | ||
Recorded investment with no related allowance recorded | 672 | 1,573 |
Unpaid principal balance with no related allowance recorded | 1,205 | 2,438 |
Recorded investment with related allowance recorded | 2,482 | 1,952 |
Unpaid principal balance with related allowance recorded | 2,540 | 1,957 |
Related allowance | 690 | 641 |
Recorded investment | 3,154 | 3,525 |
Unpaid principle balance | 3,745 | 4,395 |
Commercial Real Estate Portfolio Segment [Member] | ||
Related allowance | 77 | 85 |
Recorded investment | 1,403 | 3,125 |
Unpaid principle balance | 1,468 | 3,182 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | ||
Recorded investment with no related allowance recorded | 1,196 | |
Unpaid principal balance with no related allowance recorded | 1,196 | |
Recorded investment with related allowance recorded | 803 | 808 |
Unpaid principal balance with related allowance recorded | 803 | 808 |
Related allowance | 77 | 21 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | ||
Recorded investment with no related allowance recorded | 600 | 784 |
Unpaid principal balance with no related allowance recorded | 665 | 841 |
Recorded investment with related allowance recorded | 337 | |
Unpaid principal balance with related allowance recorded | 337 | |
Related allowance | 64 | |
Residential Portfolio Segment [Member] | ||
Related allowance | 391 | 721 |
Recorded investment | 8,554 | 11,894 |
Unpaid principle balance | 10,746 | 14,820 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | ||
Recorded investment with no related allowance recorded | 5,895 | 6,047 |
Unpaid principal balance with no related allowance recorded | 7,516 | 7,685 |
Recorded investment with related allowance recorded | 1,628 | 2,562 |
Unpaid principal balance with related allowance recorded | 1,678 | 2,617 |
Related allowance | 199 | 494 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | ||
Recorded investment with no related allowance recorded | 414 | 1,914 |
Unpaid principal balance with no related allowance recorded | 897 | 2,722 |
Recorded investment with related allowance recorded | 192 | |
Unpaid principal balance with related allowance recorded | 226 | |
Related allowance | 2 | |
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Recorded investment with no related allowance recorded | 45 | 917 |
Unpaid principal balance with no related allowance recorded | 49 | 1,342 |
Recorded investment with related allowance recorded | 380 | 454 |
Unpaid principal balance with related allowance recorded | 380 | 454 |
Related allowance | 190 | 227 |
Consumer Portfolio Segment [Member] | ||
Recorded investment with no related allowance recorded | 210 | |
Unpaid principal balance with no related allowance recorded | 216 | |
Recorded investment with related allowance recorded | 36 | 40 |
Unpaid principal balance with related allowance recorded | 36 | 40 |
Related allowance | 11 | 14 |
Recorded investment | 36 | 250 |
Unpaid principle balance | $ 36 | $ 256 |
Note 5 - Loans - Average Record
Note 5 - Loans - Average Recorded Investment and Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Average recorded investment | $ 15,585 | $ 18,323 | $ 25,299 |
Interest income recognized | 275 | 286 | 298 |
Commercial Portfolio Segment [Member] | |||
Average recorded investment | 3,211 | 2,605 | 3,533 |
Interest income recognized | 46 | 23 | 22 |
Commercial Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | |||
Interest income recognized | 2 | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | |||
Average recorded investment | 1,548 | 2,013 | 7,306 |
Interest income recognized | 46 | 47 | 49 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | |||
Average recorded investment | 670 | 1,281 | 2,212 |
Interest income recognized | 25 | 59 | |
Residential Portfolio Segment [Member] | Individual Tax Identification Number Loan [Member] | |||
Average recorded investment | 7,961 | 8,939 | 9,679 |
Interest income recognized | 162 | 165 | 141 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | |||
Average recorded investment | 1,019 | 1,788 | 1,786 |
Interest income recognized | |||
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | |||
Average recorded investment | 1,104 | 1,535 | 750 |
Interest income recognized | 19 | 26 | 27 |
Consumer Portfolio Segment [Member] | |||
Average recorded investment | 72 | 162 | 33 |
Interest income recognized |
Note 5 - Loans - Newly Restruct
Note 5 - Loans - Newly Restructured Loans and Types of Modifications (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing receivable modifications | $ 60,000 | $ 2,447,000 | $ 1,505,000 |
Contractual Interest Rate Reduction [Member] | |||
Financing receivable modifications | 1,049,000 | 115,000 | |
Interest Rate Reduction and Extension of Maturity [Member] | |||
Financing receivable modifications | 81,000 | 39,000 | |
Principal Forgiveness [Member] | |||
Financing receivable modifications | |||
Rate Reduction and Payment Deferral [Member] | |||
Financing receivable modifications | 60,000 | 264,000 | |
Extended Maturity [Member] | |||
Financing receivable modifications | 1,120,000 | ||
Payment Deferral [Member] | |||
Financing receivable modifications | 197,000 | 1,087,000 | |
Commercial Portfolio Segment [Member] | |||
Financing receivable modifications | 2,025,000 | 747,000 | |
Commercial Portfolio Segment [Member] | Contractual Interest Rate Reduction [Member] | |||
Financing receivable modifications | 905,000 | ||
Commercial Portfolio Segment [Member] | Interest Rate Reduction and Extension of Maturity [Member] | |||
Financing receivable modifications | 39,000 | ||
Commercial Portfolio Segment [Member] | Rate Reduction and Payment Deferral [Member] | |||
Financing receivable modifications | |||
Commercial Portfolio Segment [Member] | Extended Maturity [Member] | |||
Financing receivable modifications | 1,120,000 | ||
Commercial Portfolio Segment [Member] | Payment Deferral [Member] | |||
Financing receivable modifications | 708,000 | ||
Residential Portfolio Segment [Member] | Individual Tax Identification Number Loan [Member] | Real Estate Loan [Member] | |||
Financing receivable modifications | 60,000 | 278,000 | 758,000 |
Residential Portfolio Segment [Member] | Mortgage Receivable [Member] | Real Estate Loan [Member] | |||
Financing receivable modifications | 144 | ||
Residential Portfolio Segment [Member] | Contractual Interest Rate Reduction [Member] | Individual Tax Identification Number Loan [Member] | Real Estate Loan [Member] | |||
Financing receivable modifications | 115,000 | ||
Residential Portfolio Segment [Member] | Contractual Interest Rate Reduction [Member] | Mortgage Receivable [Member] | Real Estate Loan [Member] | |||
Financing receivable modifications | 144 | ||
Residential Portfolio Segment [Member] | Interest Rate Reduction and Extension of Maturity [Member] | Individual Tax Identification Number Loan [Member] | Real Estate Loan [Member] | |||
Financing receivable modifications | 81,000 | ||
Residential Portfolio Segment [Member] | Interest Rate Reduction and Extension of Maturity [Member] | Mortgage Receivable [Member] | Real Estate Loan [Member] | |||
Financing receivable modifications | |||
Residential Portfolio Segment [Member] | Principal Forgiveness [Member] | Individual Tax Identification Number Loan [Member] | Real Estate Loan [Member] | |||
Financing receivable modifications | |||
Residential Portfolio Segment [Member] | Rate Reduction and Payment Deferral [Member] | Individual Tax Identification Number Loan [Member] | Real Estate Loan [Member] | |||
Financing receivable modifications | 60,000 | 264,000 | |
Residential Portfolio Segment [Member] | Rate Reduction and Payment Deferral [Member] | Mortgage Receivable [Member] | Real Estate Loan [Member] | |||
Financing receivable modifications | |||
Residential Portfolio Segment [Member] | Extended Maturity [Member] | Individual Tax Identification Number Loan [Member] | Real Estate Loan [Member] | |||
Financing receivable modifications | |||
Residential Portfolio Segment [Member] | Extended Maturity [Member] | Mortgage Receivable [Member] | Real Estate Loan [Member] | |||
Financing receivable modifications | |||
Residential Portfolio Segment [Member] | Payment Deferral [Member] | Individual Tax Identification Number Loan [Member] | Real Estate Loan [Member] | |||
Financing receivable modifications | 197,000 | $ 379,000 | |
Residential Portfolio Segment [Member] | Payment Deferral [Member] | Mortgage Receivable [Member] | Real Estate Loan [Member] | |||
Financing receivable modifications |
Note 5 - Loans - Troubled Debt
Note 5 - Loans - Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Number of contracts | 1 | 8 | 13 |
Pre-modification outstanding recorded investment | $ 81 | $ 2,760 | $ 2,109 |
Post-modification outstanding recorded investment | $ 61 | $ 2,752 | $ 1,895 |
Commercial Portfolio Segment [Member] | |||
Number of contracts | 4 | 2 | |
Pre-modification outstanding recorded investment | $ 2,244 | $ 872 | |
Post-modification outstanding recorded investment | $ 2,266 | $ 872 | |
Residential Portfolio Segment [Member] | Individual Tax Identification Number Loan [Member] | Real Estate Loan [Member] | |||
Number of contracts | 1 | 3 | 11 |
Pre-modification outstanding recorded investment | $ 81 | $ 372 | $ 1,237 |
Post-modification outstanding recorded investment | $ 61 | $ 342 | $ 1,023 |
Note 5 - Loans - Performing and
Note 5 - Loans - Performing and Nonperforming Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Gross loans | $ 879,835 | $ 804,211 | $ 716,639 |
Commercial Portfolio Segment [Member] | |||
Gross loans | 149,088 | 153,844 | 132,805 |
Commercial Real Estate Portfolio Segment [Member] | |||
Gross loans | 578,910 | 496,742 | 427,992 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Gross loans | 15,902 | 36,792 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | |||
Gross loans | 377,668 | 292,615 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | |||
Gross loans | 185,340 | 167,335 | |
Residential Portfolio Segment [Member] | |||
Gross loans | 101,912 | 101,944 | 105,969 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | |||
Gross loans | 41,188 | 45,566 | |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | |||
Gross loans | 30,377 | 20,425 | |
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | |||
Gross loans | 30,347 | 35,953 | |
Consumer Portfolio Segment [Member] | |||
Gross loans | 49,925 | 51,681 | $ 49,873 |
Performing Financial Instruments [Member] | |||
Gross loans | 874,036 | 792,825 | |
Performing Financial Instruments [Member] | Commercial Portfolio Segment [Member] | |||
Gross loans | 147,485 | 151,095 | |
Performing Financial Instruments [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Gross loans | 15,902 | 36,792 | |
Performing Financial Instruments [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | |||
Gross loans | 377,668 | 291,419 | |
Performing Financial Instruments [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | |||
Gross loans | 184,740 | 166,551 | |
Performing Financial Instruments [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | |||
Gross loans | 38,279 | 41,990 | |
Performing Financial Instruments [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | |||
Gross loans | 29,771 | 18,511 | |
Performing Financial Instruments [Member] | Residential Portfolio Segment [Member] | Home Equity Loan [Member] | |||
Gross loans | 30,302 | 35,036 | |
Performing Financial Instruments [Member] | Consumer Portfolio Segment [Member] | |||
Gross loans | 49,889 | 51,431 | |
Nonperforming Financial Instruments [Member] | |||
Gross loans | 5,799 | 11,386 | |
Nonperforming Financial Instruments [Member] | Commercial Portfolio Segment [Member] | |||
Gross loans | 1,603 | 2,749 | |
Nonperforming Financial Instruments [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Gross loans | |||
Nonperforming Financial Instruments [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | |||
Gross loans | 1,196 | ||
Nonperforming Financial Instruments [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | |||
Gross loans | 600 | 784 | |
Nonperforming Financial Instruments [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | |||
Gross loans | 2,909 | 3,576 | |
Nonperforming Financial Instruments [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | |||
Gross loans | 606 | 1,914 | |
Nonperforming Financial Instruments [Member] | Residential Portfolio Segment [Member] | Home Equity Loan [Member] | |||
Gross loans | 45 | 917 | |
Nonperforming Financial Instruments [Member] | Consumer Portfolio Segment [Member] | |||
Gross loans | $ 36 | $ 250 |
Note 5 - Loans - Internal Risk
Note 5 - Loans - Internal Risk Rating by Loan Class (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Gross loans | $ 879,835 | $ 804,211 | $ 716,639 |
Commercial Portfolio Segment [Member] | |||
Gross loans | 149,088 | 153,844 | 132,805 |
Commercial Real Estate Portfolio Segment [Member] | |||
Gross loans | 578,910 | 496,742 | 427,992 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Gross loans | 15,902 | 36,792 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | |||
Gross loans | 377,668 | 292,615 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | |||
Gross loans | 185,340 | 167,335 | |
Residential Portfolio Segment [Member] | |||
Gross loans | 101,912 | 101,944 | 105,969 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | |||
Gross loans | 41,188 | 45,566 | |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | |||
Gross loans | 30,377 | 20,425 | |
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | |||
Gross loans | 30,347 | 35,953 | |
Consumer Portfolio Segment [Member] | |||
Gross loans | 49,925 | 51,681 | $ 49,873 |
Pass [Member] | |||
Gross loans | 809,332 | 743,235 | |
Pass [Member] | Commercial Portfolio Segment [Member] | |||
Gross loans | 117,087 | 124,089 | |
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Gross loans | 14,762 | 36,782 | |
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | |||
Gross loans | 364,230 | 284,099 | |
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | |||
Gross loans | 171,005 | 157,064 | |
Pass [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | |||
Gross loans | 34,923 | 38,279 | |
Pass [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | |||
Gross loans | 28,981 | 17,696 | |
Pass [Member] | Residential Portfolio Segment [Member] | Home Equity Loan [Member] | |||
Gross loans | 28,457 | 33,828 | |
Pass [Member] | Consumer Portfolio Segment [Member] | |||
Gross loans | 49,887 | 51,398 | |
Watch [Member] | |||
Gross loans | 48,863 | 36,068 | |
Watch [Member] | Commercial Portfolio Segment [Member] | |||
Gross loans | 28,896 | 21,684 | |
Watch [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Gross loans | 10 | ||
Watch [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | |||
Gross loans | 9,160 | 5,398 | |
Watch [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | |||
Gross loans | 8,515 | 7,301 | |
Watch [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | |||
Gross loans | |||
Watch [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | |||
Gross loans | 791 | 815 | |
Watch [Member] | Residential Portfolio Segment [Member] | Home Equity Loan [Member] | |||
Gross loans | 1,501 | 858 | |
Watch [Member] | Consumer Portfolio Segment [Member] | |||
Gross loans | 2 | ||
Special Mention [Member] | |||
Gross loans | 8,052 | 6,387 | |
Special Mention [Member] | Commercial Portfolio Segment [Member] | |||
Gross loans | 40 | 4,570 | |
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Gross loans | 1,140 | ||
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | |||
Gross loans | 2,900 | 1,321 | |
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | |||
Gross loans | 3,907 | 496 | |
Special Mention [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | |||
Gross loans | |||
Special Mention [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | |||
Gross loans | |||
Special Mention [Member] | Residential Portfolio Segment [Member] | Home Equity Loan [Member] | |||
Gross loans | 63 | ||
Special Mention [Member] | Consumer Portfolio Segment [Member] | |||
Gross loans | 2 | ||
Substandard [Member] | |||
Gross loans | 13,588 | 18,521 | |
Substandard [Member] | Commercial Portfolio Segment [Member] | |||
Gross loans | 3,065 | 3,501 | |
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Gross loans | |||
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | |||
Gross loans | 1,378 | 1,797 | |
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | |||
Gross loans | 1,913 | 2,474 | |
Substandard [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | |||
Gross loans | 6,265 | 7,287 | |
Substandard [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | |||
Gross loans | 605 | 1,914 | |
Substandard [Member] | Residential Portfolio Segment [Member] | Home Equity Loan [Member] | |||
Gross loans | 326 | 1,267 | |
Substandard [Member] | Consumer Portfolio Segment [Member] | |||
Gross loans | 36 | 281 | |
Doubtful [Member] | |||
Gross loans | |||
Doubtful [Member] | Commercial Portfolio Segment [Member] | |||
Gross loans | |||
Doubtful [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Gross loans | |||
Doubtful [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Non-owner Occupied [Member] | |||
Gross loans | |||
Doubtful [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Owner Occupied Loan [Member] | |||
Gross loans | |||
Doubtful [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Individual Tax Identification Number Loan [Member] | |||
Gross loans | |||
Doubtful [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Mortgage Receivable [Member] | |||
Gross loans | |||
Doubtful [Member] | Residential Portfolio Segment [Member] | Home Equity Loan [Member] | |||
Gross loans | |||
Doubtful [Member] | Consumer Portfolio Segment [Member] | |||
Gross loans |
Note 5 - Loans - Allowance for
Note 5 - Loans - Allowance for Credit Losses and Recorded Investment in Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Balance | $ 11,544 | $ 11,180 | $ 10,820 | |||
Charge-offs | (1,502) | (2,784) | (2,376) | |||
Recoveries | 933 | 3,148 | 2,736 | |||
Provision | 950 | |||||
Balance | 11,925 | 11,544 | 11,180 | |||
Individually evaluated for impairment | $ 1,169 | $ 1,461 | $ 832 | |||
Collectively evaluated for impairment | 10,756 | 10,083 | 10,348 | |||
Total | 11,544 | 11,544 | 11,180 | 11,925 | 11,544 | 11,180 |
Individually evaluated for impairment | 13,147 | 18,794 | 21,390 | |||
Collectively evaluated for impairment | 866,688 | 785,417 | 695,249 | |||
Total gross loans | 879,835 | 804,211 | 716,639 | |||
Commercial Portfolio Segment [Member] | ||||||
Balance | 2,849 | 2,493 | 3,503 | |||
Charge-offs | (51) | (1,106) | (700) | |||
Recoveries | 512 | 427 | 1,692 | |||
Provision | (818) | 1,035 | (2,002) | |||
Balance | 2,492 | 2,849 | 2,493 | |||
Individually evaluated for impairment | 690 | 641 | 122 | |||
Collectively evaluated for impairment | 1,802 | 2,208 | 2,371 | |||
Total | 2,849 | 2,849 | 2,493 | 2,492 | 2,849 | 2,493 |
Individually evaluated for impairment | 3,154 | 3,525 | 2,043 | |||
Collectively evaluated for impairment | 145,934 | 150,319 | 130,762 | |||
Total gross loans | 149,088 | 153,844 | 132,805 | |||
Commercial Real Estate Portfolio Segment [Member] | ||||||
Balance | 5,578 | 5,784 | 4,875 | |||
Charge-offs | (37) | (428) | ||||
Recoveries | 27 | 2,480 | 771 | |||
Provision | 814 | (2,649) | 566 | |||
Balance | 6,419 | 5,578 | 5,784 | |||
Individually evaluated for impairment | 77 | 85 | 97 | |||
Collectively evaluated for impairment | 6,342 | 5,493 | 5,687 | |||
Total | 5,578 | 5,578 | 5,784 | 6,419 | 5,578 | 5,784 |
Individually evaluated for impairment | 1,403 | 3,125 | 7,733 | |||
Collectively evaluated for impairment | 577,507 | 493,617 | 420,259 | |||
Total gross loans | 578,910 | 496,742 | 427,992 | |||
Residential Portfolio Segment [Member] | ||||||
Balance | 1,716 | 1,577 | 1,670 | |||
Charge-offs | (483) | (829) | (749) | |||
Recoveries | 178 | 114 | 273 | |||
Provision | (242) | 854 | 383 | |||
Balance | 1,169 | 1,716 | 1,577 | |||
Individually evaluated for impairment | 391 | 721 | 600 | |||
Collectively evaluated for impairment | 778 | 995 | 977 | |||
Total | 1,716 | 1,716 | 1,577 | 1,169 | 1,716 | 1,577 |
Individually evaluated for impairment | 8,554 | 11,894 | 11,582 | |||
Collectively evaluated for impairment | 93,358 | 90,050 | 94,387 | |||
Total gross loans | 101,912 | 101,944 | 105,969 | |||
Consumer Portfolio Segment [Member] | ||||||
Balance | 955 | 770 | 450 | |||
Charge-offs | (968) | (812) | (499) | |||
Recoveries | 216 | 127 | ||||
Provision | 1,232 | 870 | 819 | |||
Balance | 1,435 | 955 | 770 | |||
Individually evaluated for impairment | 11 | 14 | 13 | |||
Collectively evaluated for impairment | 1,424 | 941 | 757 | |||
Total | 955 | 955 | 770 | 1,435 | 955 | 770 |
Individually evaluated for impairment | 36 | 250 | 32 | |||
Collectively evaluated for impairment | 49,889 | 51,431 | 49,841 | |||
Total gross loans | 49,925 | 51,681 | 49,873 | |||
Unallocated Financing Receivables [Member] | ||||||
Balance | 446 | 556 | 322 | |||
Charge-offs | ||||||
Recoveries | ||||||
Provision | (36) | (110) | 234 | |||
Balance | 410 | 446 | 556 | |||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 410 | 446 | 556 | |||
Total | $ 446 | $ 446 | $ 556 | 410 | 446 | 556 |
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | ||||||
Total gross loans |
Note 6 - Purchase of Financia83
Note 6 - Purchase of Financial Assets (Details Textual) - USD ($) $ in Millions | 12 Months Ended | 44 Months Ended |
Dec. 31, 2017 | Dec. 31, 2017 | |
Loan Purchase Agreement Financial Asset for Which Transfer Is Accounted as a Purchase Total Commitment to Purchase | $ 50 | |
Loan Purchase Agreement Financial Asset for Which Transfer is Accounted as a Purchase Par Value Purchased | $ 118.3 | |
Loan Purchase Agreement Financial Asset for Which Transfer Is Accounted as a Purchase Net Discount Premium | 71.9 | |
Payments for Loans | $ 46.4 |
Note 7 - Premises and Equipme84
Note 7 - Premises and Equipment (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Depreciation | $ 2.1 | $ 1.9 | $ 1.5 |
Note 7 - Premises and Equipme85
Note 7 - Premises and Equipment - Components of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Premises and equipment | $ 29,890 | $ 29,413 |
Less: accumulated depreciation and amortization | (15,142) | (13,187) |
Premises and equipment, net | 14,748 | 16,226 |
Land [Member] | ||
Premises and equipment | 2,063 | 2,063 |
Land Improvements [Member] | ||
Premises and equipment | 241 | 223 |
Bank Buildings [Member] | ||
Premises and equipment | 12,976 | 12,931 |
Furniture, Fixtures and Equipment [Member] | ||
Premises and equipment | 12,639 | 12,130 |
Software and Software Development Costs [Member] | ||
Premises and equipment | 1,634 | 1,637 |
Assets Not Yet Placed in Service [Member] | ||
Premises and equipment | $ 337 | $ 429 |
Note 8 - Other Real Estate Ow86
Note 8 - Other Real Estate Owned (OREO) (Details Textual) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Number of Loans Transferred to OREO | 7 | ||
Real Estate Owned, Transfer to Real Estate Owned | $ 981 | $ 147 | $ 3,888 |
Other Real Estate Owned, Costs Capitalized | $ 90 | ||
Number of Real Estate Properties Sold | 11 | ||
Sales of Real Estate | $ 1,700 | ||
Gains (Losses) on Sales of Other Real Estate | $ 368 | $ (109) | $ 13 |
Number of Writedown Real Estate Properties | 1 | ||
Impairment of Real Estate | $ 52 | ||
Residential One to Four Family [Member] | |||
Number of Real Estate Properties | 1 | ||
Real Estate Acquired Through Foreclosure | $ 35 |
Note 8 - Other Real Estate Ow87
Note 8 - Other Real Estate Owned - Changes in OREO (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Balance at beginning of year | $ 759 | $ 1,423 | $ 502 |
Additions | 1,071 | 189 | 4,059 |
Dispositions | (1,743) | (745) | (3,138) |
Valuation adjustments | (52) | (108) | |
Balance at ending of year | $ 35 | $ 759 | $ 1,423 |
Note 9 - Intangible Assets (Det
Note 9 - Intangible Assets (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2017 | Mar. 11, 2016 | |
Goodwill, Amortization period | 15 years | ||
Core Deposits [Member] | |||
Finite-Lived Intangible Asset, Useful Life | 8 years | ||
Acquired Finite-lived Intangible Asset, Residual Value | $ 0 | ||
Finite-Lived Intangible Asset, Amortization Period | 15 years | ||
Bank of America Branches [Member] | |||
Goodwill | $ 665 | $ 665 | |
Bank of America Branches [Member] | Core Deposits [Member] | |||
Finite-lived Intangible Assets Acquired | $ 1,800 |
Note 9 - Intangible Assets - Co
Note 9 - Intangible Assets - Core Deposit Intangible (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Core deposit intangible, net | $ 1,365 |
Core Deposits [Member] | |
Gross carrying amount | 1,772 |
Accumulated amortization | (407) |
Core deposit intangible, net | $ 1,365 |
Note 9 - Intangible Assets - Es
Note 9 - Intangible Assets - Estimated Amortization of Intangible Assets (Details) $ in Thousands | Dec. 31, 2017USD ($) |
2,018 | $ 221 |
2,019 | 221 |
2,020 | 221 |
2,021 | 221 |
2,022 | 221 |
2023 and thereafter | 260 |
Core deposit intangible, net | $ 1,365 |
Note 10 - Other Assets - Other
Note 10 - Other Assets - Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Qualified Zone Academy Bonds | $ 4,740 | $ 4,740 |
Federal Home Loan Bank of San Francisco stock | 4,537 | 4,465 |
Interest receivable | 4,462 | 4,044 |
Investments in affordable housing partnerships | 3,529 | 4,217 |
Prepaid expenses | 1,132 | 772 |
Loan servicing receivables | 643 | 841 |
Investment in Bank of Commerce Holdings Trust II | 310 | 310 |
SBA payments in process | 179 | 50 |
Other | 129 | 917 |
Total | $ 19,661 | $ 20,356 |
Note 11 - Deposits - Major Type
Note 11 - Deposits - Major Types of Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Savings | $ 110,837 | $ 113,309 |
Certificates of deposit, $250,000 and over | 58,574 | |
Total interest-bearing deposits | 496,990 | 405,569 |
Interest-bearing Deposits [Member] | ||
Interest-bearing demand | 260,221 | 198,328 |
Money market | 236,769 | 207,241 |
Savings | 110,837 | 113,309 |
Certificates of deposit, less than $250,000 | 130,681 | 159,092 |
Certificates of deposit, $250,000 and over | 58,574 | 56,298 |
Total interest-bearing deposits | $ 797,082 | $ 734,268 |
Note 11 - Deposits - Interest E
Note 11 - Deposits - Interest Expense for Each Deposit Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest-bearing demand | $ 744 | $ 523 | $ 460 |
Savings | 200 | 174 | 213 |
Interest Expense [Member] | |||
Interest-bearing demand | 274 | 201 | 228 |
Money market | 470 | 322 | 232 |
Savings | 200 | 174 | 213 |
Certificates of deposit, less than $250,000 | 1,429 | 1,537 | 1,744 |
Certificates of deposit, $250,000 and over | 759 | 642 | 612 |
Total interest-bearing deposits | $ 3,132 | $ 2,876 | $ 3,029 |
Note 11 - Deposits - Scheduled
Note 11 - Deposits - Scheduled Maturities of All Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
2,018 | $ 105,219 | |
2,019 | 37,248 | |
2,020 | 23,394 | |
2,021 | 12,925 | |
2,022 | 10,380 | |
Thereafter | 89 | |
Total certificates of deposit | $ 189,255 | $ 215,390 |
Note 11 - Deposits - Schedule95
Note 11 - Deposits - Scheduled Maturities of Time Deposits of $250 Thousand or More (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Three months or less | $ 7,872 |
Over three months through six months | 8,268 |
Over six months through twelve months | 8,725 |
Over twelve months | 33,709 |
Total certificates of deposit of $250 thousand or more | $ 58,574 |
Note 12 - Term Debt (Details Te
Note 12 - Term Debt (Details Textual) - USD ($) $ in Thousands | Dec. 11, 2015 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 |
Proceeds from Issuance of Senior Long-term Debt | $ 10,000 | |||
Proceeds from Issuance of Subordinated Long-term Debt | $ 10,000 | 10,000 | ||
Senior Notes [Member] | ||||
Debt Instrument, Periodic Payment | 83 | |||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 5,000 | |||
Debt Issuance Costs, Gross | $ 15 | |||
Senior Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 4.00% | |||
Subordinated Debt [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.88% | |||
Subordinated Debt [Member] | Fixed to Floating Interest Rate [Member] | ||||
Debt Issuance Costs, Gross | $ 210 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.88% | |||
Debt Fixed Interest Term | 5 years | |||
Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 4.00% | |||
Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | Fixed to Floating Interest Rate [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 5.26% | |||
Federal Home Loan Bank of San Francisco [Member] | ||||
Federal Home Loan Bank, Advances, Activity for Year, Average Balance of Agreements Outstanding | $ 302 | $ 18,000 | ||
Federal Home Loan Bank, Advances, Activity for Year, Maximum Outstanding at any Month End | 10,000 | 80,000 | ||
Advances from Federal Home Loan Banks | $ 0 | $ 0 |
Note 12 - Term Debt - Term Debt
Note 12 - Term Debt - Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Unamortized debt issuance costs | $ (138) | $ (184) |
Net term debt | 16,958 | 18,733 |
Senior Notes [Member] | ||
Long-term debt, gross | 7,096 | 8,917 |
Unamortized debt issuance costs | (6) | (12) |
Subordinated Debt [Member] | ||
Long-term debt, gross | 10,000 | 10,000 |
Unamortized debt issuance costs | $ (132) | $ (172) |
Note 12 - Term Debt - Future Co
Note 12 - Term Debt - Future Contractual Maturities of Term Debt (Details) $ in Thousands | Dec. 31, 2017USD ($) |
2,018 | $ 1,000 |
2,019 | 1,000 |
2,020 | 5,096 |
2,021 | |
2,022 | |
Thereafter | 10,000 |
Total future maturities | 17,096 |
Senior Notes [Member] | |
2,018 | 1,000 |
2,019 | 1,000 |
2,020 | 5,096 |
2,021 | |
2,022 | |
Thereafter | |
Total future maturities | 7,096 |
Subordinated Debt [Member] | |
2,018 | |
2,019 | |
2,020 | |
2,021 | |
2,022 | |
Thereafter | 10,000 |
Total future maturities | $ 10,000 |
Note 13 - Junior Subordinated99
Note 13 - Junior Subordinated Debentures (Details Textual) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Number Of Wholly Owned Trusts | 1 | 1 |
Junior Subordinated Notes | $ 10,310 | $ 10,310 |
Bank of Commerce Holdings Trust II [Member] | ||
Common Stock Held in Trust | $ 310 | $ 310 |
Junior Subordinated Debt [Member] | Bank of Commerce Holdings Trust II [Member] | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.17% | 2.54% |
Debt Instrument, Basis Spread on Variable Rate | 1.58% | |
Junior Subordinated Notes | $ 10,310 |
Note 13 - Junior Subordinate100
Note 13 - Junior Subordinated Debentures - Trusts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Junior subordinated debentures | $ 10,310 | $ 10,310 |
Bank of Commerce Holdings Trust II [Member] | Junior Subordinated Debt [Member] | ||
Bank of Commerce Holdings Trust II | Jul. 29, 2005 | |
Junior subordinated debentures | $ 10,310 | |
Bank of Commerce Holdings Trust II | Sep. 15, 2035 |
Note 14 - Other Liabilities - O
Note 14 - Other Liabilities - Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred compensation – directors fees | $ 3,823 | $ 3,753 | |
Salary continuation | 3,387 | 3,410 | |
Severance payable | 790 | 820 | |
Accrued employee incentives | 1,170 | 1,109 | |
Reserve for unfunded commitments | 695 | 695 | |
Cash dividend declared on common stock and payable after period-end | 486 | 401 | $ 400 |
Delayed equity contributions - affordable housing tax credit partnerships | 361 | 485 | |
Deferred income | 315 | 520 | |
Other loan servicing liabilities | 235 | 576 | |
Other | 895 | 1,408 | |
Total | $ 12,157 | $ 13,177 |
Note 15 - Commitments and Co102
Note 15 - Commitments and Contingencies (Details Textual) | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Number of Operating Leases Sites | 9 | |
Expiry of Standby Letters of Credit Within One Year | $ 1,300,000 | |
Expiry of Standby Letter of Credit Thereafter | 5,400,000 | |
Reserve for Unfunded Commitments Included in Other Liabilities | $ 695,000 | $ 695,000 |
Real Estate Related Loans Representing Lease Portfolio | 77.00% | 75.00% |
Insurance Claims [Member] | Maximum [Member] | ||
Loss Contingency, Estimate of Possible Loss | $ 225,000 | |
Other Liabilities [Member] | ||
Reserve for Unfunded Commitments Included in Other Liabilities | $ 695,000 | $ 695,000 |
Note 15 - Commitments and Co103
Note 15 - Commitments and Contingencies - Rent Expense and Rent Income (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Rent income(1) | [1] | $ 46 | $ 78 |
Rent expense | 841 | 707 | |
Net rent expense | $ 795 | $ 629 | |
[1] | Rental income is derived from OREO properties |
Note 15 - Commitments and Co104
Note 15 - Commitments and Contingencies - Future Minimum Lease Payments Under Non-cancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2017USD ($) |
2,018 | $ 845 |
2,019 | 866 |
2,020 | 884 |
2,021 | 899 |
2,022 | 807 |
Thereafter | 1,367 |
Total | $ 5,668 |
Note 15 - Commitments and Co105
Note 15 - Commitments and Contingencies - Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Commitments | $ 227,744 | $ 229,387 |
Standby Letters of Credit [Member] | ||
Commitments | 6,692 | 1,967 |
Federal Home Loan Bank of San Francisco Affordable Housing Grant Sponsorships [Member] | ||
Commitments | 3,338 | 3,338 |
Commitments to Extend Credit [Member] | ||
Commitments | $ 217,714 | $ 224,082 |
Note 16 - Employee Benefits 106
Note 16 - Employee Benefits and Retirement Plans (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Defined Contribution Plan Employer Matching Contribution Percentage of Deferred Salar | 100.00% | |||
Defined Contribution Plan Maximum Annual Employee Contribution Percentage of Deferred Salar | 3.00% | |||
Defined Contribution Plan Employer Matching Contribution Percentage of Deferred Salary One | 50.00% | |||
Defined Contribution Plan Maximum Annual Employee Contribution Percentage of Deferred Salary One | 2.00% | |||
Defined Contribution Plan, Cost | $ 494 | $ 457 | $ 396 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0 | |||
Deferred Compensation Plan Balance Maximum | 500 | 500 | ||
Director [Member] | ||||
Deferred Compensation Arrangement with Individual, Compensation Expense | 292 | 281 | 274 | |
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 3,800 | 3,800 | 3,700 | 3,800 |
The 2013 Plan [Member] | ||||
Deferred Compensation Period | 30 days | |||
Deferred Compensation Arrangement Monthly Installment Period | 10 years | |||
The 1993 Plan [Member] | Director [Member] | ||||
Deferred Compensation Arrangement Monthly Installment Period | 15 years | |||
Deferred Compensation Arrangement with Individual Compensation Interest Rate | 10.00% | |||
The 1993 Plan [Member] | Director [Member] | Prime Rate [Member] | ||||
Deferred Compensation Arrangement with Individual Compensation Interest Rate | 3.00% | |||
Supplemental Employee Retirement Plan [Member] | ||||
Defined Benefit Plan Compensation Expense | $ 577 | 551 | 726 | |
Defined Benefit Plan, Benefit Obligation | $ 3,400 | $ 3,400 | $ 3,500 | $ 3,400 |
Minimum [Member] | ||||
Defined Benefit Plan Designated Payment Period | 10 years | |||
Maximum [Member] | ||||
Defined Benefit Plan Designated Payment Period | 20 years |
Note 17 - Federal Funds Purc107
Note 17 - Federal Funds Purchased and Lines of Credit (Details Textual) $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Federal Funds Purchased | $ 0 | $ 0 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 0 | 0 |
Line of Credit Facility Number of Lenders | 3 | |
Federal Home Loan Bank Stock | $ 4,537 | $ 4,465 |
Federal Home Loan Bank of San Francisco [Member] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available | 334,900 | |
Federal Home Loan Bank Stock | 4,500 | |
Federal Home Loan Bank of San Francisco [Member] | Real Estate [Member] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 378,300 | |
Federal Home Loan Bank of San Francisco [Member] | Equity Securities [Member] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 28,300 | |
Federal Funds Purchased [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 35,000 | |
Federal Funds Purchased [Member] | Minimum [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.64% | |
Federal Funds Purchased [Member] | Maximum [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.29% | |
Federal Reserve Bank Advances [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 28,500 |
Note 18 - Shareholders' Equi108
Note 18 - Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | May 10, 2017 | Dec. 11, 2015 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Stock Issued During Period, Shares, New Issues | 26,778,000 | |||||
Proceeds from Issuance of Common Stock | $ 26,778 | |||||
Payments for Repurchase of Redeemable Preferred Stock | 20,000 | |||||
Proceeds from Issuance of Subordinated Long-term Debt | $ 10,000 | $ 10,000 | ||||
Fair Market Value Percentage Under Incentive Option Plan | 100.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 198,000 | |||||
Proceeds from Stock Options Exercised | $ 245 | $ 10 | $ 156 | |||
Restricted Stock [Member] | ||||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 53 | |||||
Restricted Stock [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
Restricted Stock [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage Per Year | 20.00% | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years | |||||
Subordinated Debt [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.88% | |||||
Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 4.00% | |||||
Series B Preferred Stock [Member] | ||||||
Payments for Repurchase of Redeemable Preferred Stock | $ 20,000 | |||||
Payments of Dividends | $ 39 | |||||
Public Offering [Member] | ||||||
Stock Issued During Period, Shares, New Issues | 2,738,096 | |||||
Share Price | $ 10.50 | |||||
Proceeds from Issuance of Common Stock | $ 26,800 |
Note 18 - Shareholders' Equi109
Note 18 - Shareholders' Equity - Stock Option Activity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Options outstanding (in shares) | 188,900 | 234,100 | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 5.08 | $ 5.77 | |
Options outstanding, aggregate intrinsic value | $ 704,350 | $ 834,625 | $ 319,483 |
Options outstanding, weighted average remaining contractual term (Year) | 4 years 277 days | 5 years 240 days | 5 years 317 days |
Exercised (in shares) | (51,900) | (1,900) | |
Exercised, weighted average exercise price (in dollars per share) | $ 4.73 | $ 5.29 | |
Exercised, aggregate intrinsic value | $ 245,450 | $ 4,789 | |
Exercised, weighted average remaining contractual term (Year) (Year) | 4 years 153 days | 3 years 120 days | |
Forfeited (in shares) | (2,500) | (43,300) | |
Forfeited, weighted average exercise price (in dollars per share) | $ 4.05 | $ 8.81 | |
Options outstanding (in shares) | 134,500 | 188,900 | 234,100 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 5.24 | $ 5.08 | $ 5.77 |
Exercisable at December 31, 2017 (in shares) | 118,920 | ||
Exercisable at December 31, 2017 (in dollars per share) | $ 5.13 | ||
Exercisable at December 31, 2017 | $ 609,596 | ||
Exercisable at December 31, 2017 (Year) | 4 years 186 days |
Note 18 - Shareholders' Equi110
Note 18 - Shareholders' Equity - Additional Compensation Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of exercisable shares (in shares) | 118,920 | ||
Restricted stock awards weighted average grant date fair value per share (in dollars per share) | $ 10.35 | ||
Number of shares granted (in shares) | 4,868 | ||
Grant price (in dollars per share) | $ 10.05 | ||
Compensation expense | $ 48,923 | ||
Employee Stock Option [Member] | |||
Stock compensation expense | $ 23,000 | $ 24,000 | $ 42,000 |
Stock option awards weighted average grant date fair value per share (in dollars per share) | $ 1.33 | ||
Unrecognized compensation costs related to non-vested stock option payments | $ 17,000 | $ 29,000 | $ 55,000 |
Number of exercisable shares (in shares) | 119,000 | 157,000 | 163,000 |
Restricted Stock [Member] | |||
Stock compensation expense | $ 196,000 | $ 215,000 | $ 89,000 |
Restricted stock awards weighted average grant date fair value per share (in dollars per share) | $ 10.35 | $ 5.74 | $ 5.90 |
Unrecognized compensation costs related to non-vested restricted stock payments | $ 811,000 | $ 205,000 | $ 181,000 |
Note 18 - Shareholders' Equi111
Note 18 - Shareholders' Equity - Unvested Restricted Shares (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Granted (in shares) | 45,070 | ||
Restricted stock awards weighted average grant date fair value per share (in dollars per share) | $ 10.35 | ||
Granted aggregate intrinsic value | $ 466,328 | ||
Granted remaining contractual term (Year) | 1 year 116 days | ||
Forfeited (in shares) | (3,084) | ||
Forfeited weighted average grant price (in dollars per share) | $ 5.75 | ||
Restricted Stock [Member] | |||
Unvested restricted shares outstanding (in shares) | 67,180 | 42,676 | |
Unvested restricted shares weighted average grant price (in dollars per share) | $ 5.84 | $ 5.95 | |
Unvested restricted shares aggregate intrinsic value | $ 640,255 | $ 638,210 | $ 285,076 |
Unvested restricted shares remaining contractual term (Year) | 1 year 10 days | 1 year 138 days | 2 years 178 days |
Granted (in shares) | 65,736 | ||
Restricted stock awards weighted average grant date fair value per share (in dollars per share) | $ 10.35 | $ 5.74 | $ 5.90 |
Granted aggregate intrinsic value | $ 254,816 | ||
Granted remaining contractual term (Year) | 1 year 25 days | ||
Vested (in shares) | (37,761) | (38,148) | |
Vested weighted average grant price (in dollars per share) | $ 5.79 | $ 5.79 | |
Vested aggregate intrinsic value | $ 218,600 | $ 229,198 | |
Unvested restricted shares outstanding (in shares) | 74,489 | 67,180 | 42,676 |
Unvested restricted shares weighted average grant price (in dollars per share) | $ 8.60 | $ 5.84 | $ 5.95 |
Note 19 - Accumulated Other 112
Note 19 - Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Accumulated other comprehensive loss | $ 127,264 | [1] | $ 94,106 | [1] | $ 90,522 | [1] | $ 103,602 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||||||
Accumulated other comprehensive loss | (266) | (659) | 1,142 | ||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||||
Accumulated other comprehensive loss | (1,396) | ||||||
AOCI Attributable to Parent [Member] | |||||||
Accumulated other comprehensive loss | $ (266) | [1] | $ (659) | [1] | $ (254) | [1] | $ (87) |
[1] | Excludes 43 unvested restricted shares |
Note 20 - Regulatory Capital (D
Note 20 - Regulatory Capital (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | |||
Captial Conversion Buffer | 2.50% | |||
Common Equity Tier One Risk Based Capital with Conversion Buffer, Exceeding Thresholds | 0.50% | |||
Cash and Cash Equivalents, at Carrying Value | $ 66,970 | $ 68,407 | $ 51,192 | $ 58,422 |
Advances from Subsidiaries Limited to as Percentage of Bank Tier One and Two Capital | 10.00% | |||
Public Offering [Member] | ||||
Cash and Cash Equivalents, at Carrying Value | $ 24,000 |
Note 20 - Regulatory Capital -
Note 20 - Regulatory Capital - Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Common Equity Tier One Risk Based Capital Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | |
Subtotal Bank of Commerce Holdings [Member] | ||
Common Equity Tier One Risk Based Capital | $ 125,745 | $ 92,757 |
Common Equity Tier One Risk Based Capital to Risk Weighted Assets | 12.26% | 9.43% |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy | $ 46,169 | $ 44,266 |
Common Equity Tier One Risk Based Capital Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | 4.50% |
Applicable capital conservation buffer, common equity tier 1 capital | 1.25% | 0.625% |
Common Equity Tier One, Capital Adequacy Plus Capital Conservation Buffer | $ 58,994 | $ 50,414 |
Common Equity Tier One Capital Adequacy Plus Capital Conservation Buffer to Risk Weighted Assets | 5.75% | 5.125% |
Tier 1 capital ratio | $ 135,745 | $ 102,496 |
Tier One Risk Based Capital to Risk Weighted Assets | 13.23% | 10.42% |
Tier One Risk Based Capital Required for Capital Adequacy | $ 61,559 | $ 59,021 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 6.00% |
Applicable capital conservation buffer, Tier 1 capital ratio | 1.25% | 0.625% |
Tier One Risk Based Capital Required to be Well Capitalized, Capital Adequacy Plus Capital Conservation Buffer | $ 74,384 | $ 65,169 |
Tier One Risk Based Capital Capital Adequacy Plus Capital Conservation Buffer to Risk Weighted Assets | 7.25% | 6.625% |
Capital | $ 158,365 | $ 124,735 |
Capital to Risk Weighted Assets | 15.44% | 12.68% |
Capital Required for Capital Adequacy | $ 82,079 | $ 78,695 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Applicable capital conservation buffer, Total capital ratio | 1.25% | 0.625% |
Capital Required to be Well Capitalized, Capital Adequacy Plus Capital Conservation Buffer | $ 94,903 | $ 84,843 |
Capital Adequacy Plus Capital Conservation Buffer to Risk Weighted Assets | 9.25% | 8.625% |
Tier One Leverage Capital | $ 135,745 | $ 102,496 |
Tier One Leverage Capital to Average Assets | 10.86% | 9.13% |
Tier One Leverage Capital Required for Capital Adequacy | $ 50,008 | $ 44,905 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Commercial Banking [Member] | ||
Common Equity Tier One Risk Based Capital | $ 129,139 | $ 121,098 |
Common Equity Tier One Risk Based Capital to Risk Weighted Assets | 12.58% | 12.31% |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy | $ 46,179 | $ 44,281 |
Common Equity Tier One Risk Based Capital Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | 4.50% |
Applicable capital conservation buffer, common equity tier 1 capital | 1.25% | 0.625% |
Common Equity Tier One, Capital Adequacy Plus Capital Conservation Buffer | $ 59,006 | $ 50,432 |
Common Equity Tier One Capital Adequacy Plus Capital Conservation Buffer to Risk Weighted Assets | 5.75% | 5.125% |
Tier 1 capital ratio | $ 129,139 | $ 121,098 |
Tier One Risk Based Capital to Risk Weighted Assets | 12.58% | 12.31% |
Tier One Risk Based Capital Required for Capital Adequacy | $ 61,572 | $ 59,042 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 6.00% |
Applicable capital conservation buffer, Tier 1 capital ratio | 1.25% | 0.625% |
Tier One Risk Based Capital Required to be Well Capitalized, Capital Adequacy Plus Capital Conservation Buffer | $ 74,399 | $ 65,192 |
Tier One Risk Based Capital Capital Adequacy Plus Capital Conservation Buffer to Risk Weighted Assets | 7.25% | 6.625% |
Capital | $ 141,760 | $ 133,337 |
Capital to Risk Weighted Assets | 13.81% | 13.55% |
Capital Required for Capital Adequacy | $ 82,096 | $ 78,722 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Applicable capital conservation buffer, Total capital ratio | 1.25% | 0.625% |
Capital Required to be Well Capitalized, Capital Adequacy Plus Capital Conservation Buffer | $ 94,923 | $ 84,873 |
Capital Adequacy Plus Capital Conservation Buffer to Risk Weighted Assets | 9.25% | 8.625% |
Tier One Leverage Capital | $ 129,139 | $ 121,098 |
Tier One Leverage Capital to Average Assets | 10.33% | 10.80% |
Tier One Leverage Capital Required for Capital Adequacy | $ 49,989 | $ 44,835 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Common Equity Tier One Risk Based Capital Required to Be Well Capitalized | $ 66,703 | $ 63,962 |
Common Equity Tier One Risk Based Capital Required to Be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% |
Tier One Risk Based Capital Required to be Well Capitalized | $ 82,096 | $ 78,722 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% |
Capital Required to be Well Capitalized | $ 102,620 | $ 98,403 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Tier One Leverage Capital Required to be Well Capitalized | $ 62,486 | $ 56,043 |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Note 21 - Derivatives (Details
Note 21 - Derivatives (Details Textual) - USD ($) $ in Thousands | Mar. 14, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | $ (2,325) | ||||
Federal Home Loan Bank of San Francisco [Member] | |||||
Repayments of Federal Home Loan Bank Borrowings | $ 75,000 | ||||
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | $ (2,300) | ||||
Federal Home Loan Bank of San Francisco [Member] | Designated as Hedging Instrument [Member] | |||||
Repayments of Federal Home Loan Bank Borrowings | $ 75,000 |
Note 21 - Derivatives - Gains (
Note 21 - Derivatives - Gains (Losses) on Derivatives and Location on Income Statement (Details) - Reclassification out of Accumulated Other Comprehensive Income [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Interest Rate Swap [Member] | Interest on FHLB [Member] | |||
Derivative gains (losses) | [1] | $ 396 | $ 1,435 |
Forward Starting Interest Rate Swaps [Member] | |||
Derivative gains (losses) | 2,721 | 1,435 | |
Forward Starting Interest Rate Swaps [Member] | Interest on FHLB [Member] | |||
Derivative gains (losses) | [2] | $ 2,325 | |
[1] | Losses represent tax effected amounts reclassified from accumulated other comprehensive income (loss) pertaining to net settlement recorded during the period on active interest rate swaps. | ||
[2] | Losses represent tax effected amounts reclassified from accumulated other comprehensive income (loss) pertaining to the terminated active and forward starting interest rate swaps. |
Note 21 - Derivatives - Reclass
Note 21 - Derivatives - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification of losses on derivatives | $ 2,721 | $ 1,435 | |
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||
Reclassification of losses on derivatives | $ (1,601) | $ (843) |
Note 22 - Fair Values (Details
Note 22 - Fair Values (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Future Cash Flows Discounted | 7.29% | |
Carrying Value of Loans Fully Charged off | $ 0 | |
Minimum [Member] | ||
Other Real Estate Owned Fair Value Adjustments Estimated Selling Costs Percentage | 8.00% | |
Maximum [Member] | ||
Other Real Estate Owned Fair Value Adjustments Estimated Selling Costs Percentage | 34.00% | |
Collateral Impaired Loans [Member] | ||
Collateral Dependent Impaired Loans Carrying Amount | $ 80 | |
Fair Value Written Down | 60 | |
Allowance for Loan and Lease Losses, Adjustments, Other | 20 | |
Other Real Estate Owned [Member] | ||
Allowance for Loan and Lease Losses, Adjustments, Other | $ 38 | |
Number of Real Estate Properties | 1 | |
OREO Carrying Amount | $ 35 | $ 73 |
Junior Subordinated Debt [Member] | ||
Future Cash Flows Discounted | 3.34% |
Note 22 - Fair Values - Fair Va
Note 22 - Fair Values - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Securities available-for-sale | $ 267,954 | $ 175,174 | |
Securities held-to-maturity | $ 31,400 | ||
Reported Value Measurement [Member] | |||
Cash and cash equivalents | 66,970 | 68,407 | |
Securities available-for-sale | 267,954 | 175,174 | |
Net loans | 869,620 | 793,991 | |
Federal Home Loan Bank of San Francisco stock | 4,536 | 4,465 | |
Deposits | 1,102,732 | 1,004,666 | |
Term Debt | 16,958 | 18,733 | |
Junior subordinated debenture | 10,310 | 10,310 | |
Securities held-to-maturity | 31,187 | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Cash and cash equivalents | 66,970 | 68,407 | |
Securities available-for-sale | |||
Net loans | |||
Federal Home Loan Bank of San Francisco stock | 4,536 | 4,465 | |
Deposits | |||
Term Debt | |||
Junior subordinated debenture | |||
Securities held-to-maturity | |||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Cash and cash equivalents | |||
Securities available-for-sale | 267,954 | 175,174 | |
Net loans | |||
Federal Home Loan Bank of San Francisco stock | |||
Deposits | 1,101,523 | 1,004,429 | |
Term Debt | 16,918 | 18,726 | |
Junior subordinated debenture | 10,206 | 9,077 | |
Securities held-to-maturity | 31,374 | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Cash and cash equivalents | |||
Securities available-for-sale | |||
Net loans | 873,660 | 797,144 | |
Federal Home Loan Bank of San Francisco stock | |||
Deposits | |||
Term Debt | |||
Junior subordinated debenture | |||
Securities held-to-maturity |
Note 22 - Fair Values - Assets
Note 22 - Fair Values - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets measured at fair value | $ 267,954 | $ 175,174 | |
Fair Value, Inputs, Level 1 [Member] | |||
Assets measured at fair value | |||
Fair Value, Inputs, Level 2 [Member] | |||
Assets measured at fair value | 267,954 | 175,174 | |
Fair Value, Inputs, Level 3 [Member] | |||
Assets measured at fair value | |||
US Government Agencies Debt Securities [Member] | |||
Assets measured at fair value | 40,369 | 10,354 | |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets measured at fair value | |||
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets measured at fair value | 40,369 | 10,354 | |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Assets measured at fair value | |||
US States and Political Subdivisions Debt Securities [Member] | |||
Assets measured at fair value | 78,844 | 59,428 | |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets measured at fair value | |||
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets measured at fair value | 78,844 | 59,428 | |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Assets measured at fair value | |||
Residential Mortgage Backed Securities [Member] | |||
Assets measured at fair value | 114,592 | 69,604 | |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets measured at fair value | |||
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets measured at fair value | 114,592 | 69,604 | |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Assets measured at fair value | |||
Corporate Debt Securities [Member] | |||
Assets measured at fair value | 4,992 | 16,116 | |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets measured at fair value | |||
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets measured at fair value | 4,992 | 16,116 | |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Assets measured at fair value | |||
Commercial Mortgage Backed Securities [Member] | |||
Assets measured at fair value | 26,641 | 15,514 | |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets measured at fair value | |||
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets measured at fair value | 26,641 | 15,514 | |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Assets measured at fair value | |||
Other Investment Securities [Member] | |||
Assets measured at fair value | [1] | 2,516 | 4,158 |
Other Investment Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets measured at fair value | [1] | ||
Other Investment Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets measured at fair value | [1] | 2,516 | 4,158 |
Other Investment Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Assets measured at fair value | [1] | ||
[1] | Principally consists of asset backed securities and CRA qualified mutual fund investments. |
Note 22 - Fair Values - Fair121
Note 22 - Fair Values - Fair Value of Assets Measured on a Non-recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets measured at fair value | $ 267,954 | $ 175,174 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets measured at fair value | ||
Fair Value, Inputs, Level 2 [Member] | ||
Assets measured at fair value | 267,954 | 175,174 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets measured at fair value | ||
Fair Value, Measurements, Nonrecurring [Member] | ||
Assets measured at fair value | 95 | 1,806 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets measured at fair value | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets measured at fair value | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets measured at fair value | 95 | 1,806 |
Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Impaired Loans [Member] | ||
Assets measured at fair value | 60 | 1,587 |
Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets measured at fair value | ||
Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets measured at fair value | ||
Fair Value, Measurements, Nonrecurring [Member] | Collateral Dependent Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets measured at fair value | 60 | 1,587 |
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | ||
Assets measured at fair value | 35 | 219 |
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets measured at fair value | ||
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets measured at fair value | ||
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets measured at fair value | $ 35 | $ 219 |
Note 22 - Fair Values - Losses
Note 22 - Fair Values - Losses Resulting from Non-recurring Fair Value Adjustments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Losses resulting from nonrecurring fair value adjustments | $ 58 | $ 1,260 | $ 673 |
Collateral Dependent Impaired Loans [Member] | |||
Losses resulting from nonrecurring fair value adjustments | 20 | 1,183 | 476 |
Other Real Estate Owned [Member] | |||
Losses resulting from nonrecurring fair value adjustments | $ 38 | $ 77 | $ 197 |
Note 23 - Income Taxes (Details
Note 23 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% | 34.00% | |||||||||
Income Tax Expense (Benefit) | $ 3,803 | $ 1,427 | $ 935 | $ 763 | $ 572 | $ 744 | $ 430 | $ 212 | $ 6,928 | $ 1,958 | $ 3,462 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 3,810 | $ 4,303 | $ 3,144 | $ 3,015 | 2,869 | $ 3,110 | $ 1,986 | $ (748) | $ 14,272 | $ 7,217 | $ 12,048 | |
Effective Income Tax Rate Reconciliation, Percent | 48.54% | 27.13% | 28.74% | |||||||||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 2,490 | $ 363 | ||||||||||
Income Tax Expense (Benefit), Before Deferred Tax Write Down | $ 4,400 | |||||||||||
Effective Income Tax Rate, Continuing Operations, Before Deferred Tax Asset Write Down | 30.80% | |||||||||||
Deferred Tax Assets, Net of Valuation Allowance | 7,179 | 11,174 | $ 7,179 | 11,174 | ||||||||
Qualified Zone Academy Bonds | 4,740 | 4,740 | 4,740 | 4,740 | ||||||||
Unrecognized Tax Benefits | 0 | 0 | 0 | 0 | ||||||||
State and Local Jurisdiction [Member] | ||||||||||||
Income Tax Examination, Interest Expense | 41 | |||||||||||
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||||||||||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | 988 | $ 988 | ||||||||||
Percentage of Deferred Tax Liability Recognized Related to Amended Tax Returns | 100.00% | |||||||||||
Capital Loss Carryforward [Member] | ||||||||||||
Tax Credit Carryforward, Amount | 53 | 53 | $ 53 | 53 | ||||||||
Other Assets [Member] | ||||||||||||
Qualified Zone Academy Bonds | 4,700 | $ 4,700 | 4,700 | $ 4,700 | ||||||||
Securities Available-for-sale [Member] | ||||||||||||
Qualified Zone Academy Bonds | $ 1,000 | $ 1,000 | ||||||||||
Scenario, Forecast [Member] | ||||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Note 23 - Income Taxes - Income
Note 23 - Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Federal income tax expense, current | $ 2,005 | $ 283 | $ 1,183 |
Federal income tax expense, deferred | 2,837 | 409 | 509 |
Federal income tax expense, total | 4,842 | 692 | 1,692 |
State income tax expense, current | 1,474 | 582 | 981 |
State income tax expense, deferred | (76) | 86 | 75 |
State income tax expense, total | 1,398 | 668 | 1,056 |
Affordable housing partnership amortization, current | 688 | 598 | 714 |
Income tax expense, current | 4,167 | 1,463 | 2,878 |
Income tax expense, deferred | 2,761 | 495 | 584 |
Income tax expense, total | $ 6,928 | $ 1,958 | $ 3,462 |
Note 23 - Income Taxes - Reconc
Note 23 - Income Taxes - Reconciliation of Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income tax at the federal statutory rate | 34.00% | 34.00% | 34.00% |
Deferred tax asset write-down | 17.45% | 5.02% | |
State franchise tax, net of federal tax benefit | 6.46% | 6.11% | 5.79% |
Amortization of affordable housing credit partnerships | 4.82% | 8.11% | 5.91% |
Officer life insurance | (2.50%) | (2.89%) | (1.81%) |
Tax-exempt interest | (5.23%) | (10.85%) | (8.02%) |
Affordable housing credits and benefits | (5.68%) | (11.69%) | (6.42%) |
Other | (0.78%) | (0.68%) | (0.71%) |
Effective Tax Rate | 48.54% | 27.13% | 28.74% |
Note 23 - Income Taxes - Deferr
Note 23 - Income Taxes - Deferred Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Loan and lease loss reserves | $ 3,526 | $ 4,751 |
Deferred compensation | 2,365 | 3,285 |
State franchise taxes | 291 | 260 |
Branch acquisition costs | 274 | 366 |
Unrealized losses other comprehensive income | 134 | 553 |
Non accrued interest | 105 | 341 |
Federal tax credits | 525 | |
Other | 484 | 1,093 |
Total deferred tax assets | 7,179 | 11,174 |
Deferred tax liabilities: | ||
Deferred loan origination costs | (619) | (904) |
Unrealized gains other comprehensive income | (92) | |
Basis difference in fixed assets | (164) | |
Other | (55) | (472) |
Total deferred tax liabilities | (674) | (1,632) |
Net deferred tax asset | $ 6,505 | $ 9,542 |
Note 23 - Income Taxes - Uncert
Note 23 - Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Balance, beginning of period | $ 988 | |
Additions for tax positions related to prior years | 988 | |
balance, end of period | $ 988 | $ 988 |
Note 24 - Qualified Affordab128
Note 24 - Qualified Affordable Housing Partnership Investments (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Proportional Amortization Method Qualified Affordable Housing Project Investments | $ 3,529 | $ 4,217 | |
Proportional Amortization Method Qualified Affordable Housing Project Investments Unfunded Liability Obligation | $ 361 | 485 | |
Qualified Affordable Housing Project Investments Term | 18 years | ||
Proportional Amortization Method Qualified Affordable Housing Project Investments Amortization | $ 688 | $ 598 | $ 712 |
Minimum [Member] | |||
Qualified Affordable Housing Project Investments Return Rate | 3.00% | ||
Maximum [Member] | |||
Qualified Affordable Housing Project Investments Return Rate | 6.00% |
Note 24 - Qualified Affordab129
Note 24 - Qualified Affordable Housing Partnership Investments - Original Investment in LIHTC Projects (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Original Investment | $ 7,954 | $ 7,954 | |
Current Recorded Investment | 3,529 | 4,217 | |
Unfunded Liability Obligation | 361 | 485 | |
Tax Credits and Benefits | 810 | 851 | |
Amortization of Investments | 688 | 598 | $ 712 |
Net Income Tax Benefit | 122 | 253 | |
Raymond James California Housing Opportunities Fund II [Member] | |||
Original Investment | 2,000 | 2,000 | |
Current Recorded Investment | 1,182 | 1,361 | |
Unfunded Liability Obligation | 20 | 45 | |
Tax Credits and Benefits | 224 | 237 | |
Amortization of Investments | 179 | 192 | |
Net Income Tax Benefit | 45 | 45 | |
WNC Institutional Tax Credit Fun 38 L.P. [Member] | |||
Original Investment | 1,000 | 1,000 | |
Current Recorded Investment | 589 | 698 | |
Unfunded Liability Obligation | 73 | ||
Tax Credits and Benefits | 139 | 143 | |
Amortization of Investments | 108 | 100 | |
Net Income Tax Benefit | 31 | 43 | |
Merritt Community Capital Corporation Fund XV, L.P. [Member] | |||
Original Investment | 2,500 | 2,500 | |
Current Recorded Investment | 1,476 | 1,713 | |
Unfunded Liability Obligation | 341 | 367 | |
Tax Credits and Benefits | 271 | 266 | |
Amortization of Investments | 237 | 106 | |
Net Income Tax Benefit | 34 | 160 | |
California Affordable Housing Fund [Member] | |||
Original Investment | 2,454 | 2,454 | |
Current Recorded Investment | 282 | 445 | |
Unfunded Liability Obligation | |||
Tax Credits and Benefits | 176 | 205 | |
Amortization of Investments | 164 | 200 | |
Net Income Tax Benefit | $ 12 | $ 5 |
Note 24 - Qualified Affordab130
Note 24 - Qualified Affordable Housing Partnership Investments - Generated Tax Credits and Benefits From Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Generated tax credits | $ 630 | $ 655 | $ 633 |
Tax benefits from taxable losses | 180 | 196 | 190 |
Raymond James California Housing Opportunities Fund II [Member] | |||
Generated tax credits | 176 | 184 | 168 |
Tax benefits from taxable losses | 48 | 53 | 62 |
WNC Institutional Tax Credit Fun 38 L.P. [Member] | |||
Generated tax credits | 113 | 107 | 93 |
Tax benefits from taxable losses | 26 | 36 | 27 |
Merritt Community Capital Corporation Fund XV, L.P. [Member] | |||
Generated tax credits | 215 | 206 | 214 |
Tax benefits from taxable losses | 56 | 60 | 58 |
California Affordable Housing Fund [Member] | |||
Generated tax credits | 126 | 158 | 158 |
Tax benefits from taxable losses | $ 50 | $ 47 | $ 43 |
Note 24 - Qualified Affordab131
Note 24 - Qualified Affordable Housing Partnership Investments - Anticipated Net Income Tax Benefit (Details) $ in Thousands | Dec. 31, 2017USD ($) |
2,018 | $ 30 |
2,019 | 30 |
2,020 | 29 |
2,021 | 28 |
2022 and thereafter | 69 |
Total | 186 |
Raymond James California Housing Opportunities Fund II [Member] | |
2,018 | 23 |
2,019 | 23 |
2,020 | 22 |
2,021 | 23 |
2022 and thereafter | 61 |
Total | 152 |
WNC Institutional Tax Credit Fun 38 L.P. [Member] | |
2,018 | 21 |
2,019 | 17 |
2,020 | 17 |
2,021 | 16 |
2022 and thereafter | 42 |
Total | 113 |
Merritt Community Capital Corporation Fund XV, L.P. [Member] | |
2,018 | 3 |
2,019 | 4 |
2,020 | 4 |
2,021 | 3 |
2022 and thereafter | 9 |
Total | 23 |
California Affordable Housing Fund [Member] | |
2,018 | (17) |
2,019 | (14) |
2,020 | (14) |
2,021 | (14) |
2022 and thereafter | (43) |
Total | $ (102) |
Note 25 - Branch Acquisition (D
Note 25 - Branch Acquisition (Details Textual) $ in Thousands | Mar. 14, 2016USD ($) | Mar. 11, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Combination, Acquisition Related Costs | $ 580 | $ 347 | ||
Federal Home Loan Bank of San Francisco [Member] | ||||
Repayments of Federal Home Loan Bank Borrowings | $ 75,000 | |||
Bank of America Branches [Member] | ||||
Number of Branches Acquired | 5 | |||
Number of Offsite ATM Location Acquired | 3 | |||
Payments to Acquire Businesses, Gross | $ 6,656 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 155,230 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 149,239 | |||
Brokered Time Deposits Redeemed | $ 17,500 |
Note 25 - Branch Acquisition -
Note 25 - Branch Acquisition - Assessment of Consideration Transferred, Assets Purchased, and Liabilities Assumed (Details) - Bank of America Branches [Member] - USD ($) $ in Thousands | Mar. 11, 2016 | Mar. 31, 2016 |
Cash paid | $ 6,656 | |
Total consideration | 6,656 | |
Cash and cash equivalents | 149,067 | |
Premises and equipment, net | 4,190 | |
Other assets | 201 | |
Core deposit intangible | 1,772 | |
Total assets acquired | 155,230 | |
Deposits | 149,047 | |
Other liabilities | 192 | |
Total liabilities assumed | 149,239 | |
Net identifiable assets acquired over liabilities assumed | 5,991 | |
Goodwill | 665 | $ 665 |
Portion at Other than Fair Value Measurement [Member] | ||
Cash paid | ||
Total consideration | ||
Cash and cash equivalents | 149,067 | |
Premises and equipment, net | 1,835 | |
Other assets | 201 | |
Core deposit intangible | ||
Total assets acquired | 151,103 | |
Deposits | 149,047 | |
Other liabilities | 20 | |
Total liabilities assumed | 149,067 | |
Net identifiable assets acquired over liabilities assumed | 2,036 | |
Goodwill | ||
Changes Measurement [Member] | ||
Cash paid | ||
Total consideration | ||
Cash and cash equivalents | ||
Premises and equipment, net | 2,355 | |
Other assets | ||
Core deposit intangible | 1,772 | |
Total assets acquired | 4,127 | |
Deposits | ||
Other liabilities | 172 | |
Total liabilities assumed | 172 | |
Net identifiable assets acquired over liabilities assumed | 3,955 | |
Goodwill |
Note 26 - Earnings Per Commo134
Note 26 - Earnings Per Common Share (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | May 10, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Stock Issued During Period, Shares, New Issues | 26,778,000 | |||
Proceeds from Issuance of Common Stock | $ 26,778 | |||
Public Offering [Member] | ||||
Share Price | $ 10.50 | |||
Stock Issued During Period, Shares, New Issues | 2,738,096 | |||
Proceeds from Issuance of Common Stock | $ 26,800 |
Note 26 - Earnings Per Commo135
Note 26 - Earnings Per Common Share - Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Net income | $ 7,344 | $ 5,259 | $ 8,586 | ||||||||||||
Less: Preferred stock extinguishment costs | 102 | ||||||||||||||
Less: Preferred stock dividends | 189 | ||||||||||||||
Income available to common shareholders | $ 7 | $ 2,876 | $ 2,209 | $ 2,252 | $ 2,297 | $ 2,366 | $ 1,556 | $ (960) | $ 7,344 | $ 5,259 | $ 8,295 | ||||
Weighted average shares - basic (in shares) | 16,195 | 16,191 | 15,014 | 13,416 | 13,370 | 13,369 | 13,367 | 13,360 | 15,207 | [1] | 13,367 | [1] | 13,331 | [1] | |
Effect of potentially dilutive common shares (2) (in shares) | [2] | 103 | 58 | 34 | |||||||||||
Weighted average number of common shares outstanding - diluted (in shares) | 16,306 | 16,288 | 15,113 | 13,521 | 13,476 | 13,439 | 13,425 | 13,403 | 15,310 | 13,425 | 13,365 | ||||
Earnings per share - basic (in dollars per share) | $ 0.48 | $ 0.39 | $ 0.62 | ||||||||||||
Earnings per share - diluted (in dollars per share) | $ 0.48 | $ 0.39 | $ 0.62 | ||||||||||||
Employee Stock Option [Member] | |||||||||||||||
Anti-dilutive securities not included in earnings per share calculation (in shares) | 45 | 121 | |||||||||||||
Restricted Stock [Member] | |||||||||||||||
Anti-dilutive securities not included in earnings per share calculation (in shares) | 7 | 41 | |||||||||||||
[1] | Excludes unvested restricted shares because they do not have dividend or voting rights. | ||||||||||||||
[2] | Represents the effects of the assumed exercise of stock options and vesting of non-participating restricted shares. |
Note 27 - Related Party Tran136
Note 27 - Related Party Transactions (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Deposit Liabilities | $ 6,700 | $ 6,000 |
Related Party Transaction, Due from (to) Related Party | 0 | 0 |
Related Parties Outstanding Loan Commitments | $ 12,400 | $ 8,800 |
Note 27 - Related Party Tran137
Note 27 - Related Party Transactions - Aggregate Activity Involving Related Party Borrowers (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Balance at beginning of year | $ 13,424 | $ 13,707 |
Advances on existing lines of credit | 29,166 | 24,447 |
Principal repayments | (29,360) | (24,730) |
Balance at end of year | $ 13,230 | $ 13,424 |
Note 28 - Parent Company Fin138
Note 28 - Parent Company Financial Statements - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash | $ 66,970 | $ 68,407 | $ 51,192 | $ 58,422 |
Investment in Bank of Commerce Holdings Trust II | 310 | 310 | ||
Other assets | 19,661 | 20,356 | ||
Total assets | 1,269,421 | 1,140,992 | ||
Junior subordinated debentures | 10,310 | 10,310 | ||
Other liabilities | 12,157 | 13,177 | ||
Total liabilities | 1,142,157 | 1,046,886 | ||
Total liabilities and shareholders’ equity | 1,269,421 | 1,140,992 | ||
Parent Company [Member] | ||||
Cash | 23,984 | 493 | ||
Redding Bank of Commerce | 130,658 | 122,707 | ||
Bank of Commerce Mortgage | (64) | (64) | ||
Investment in Bank of Commerce Holdings Trust II | 310 | 310 | ||
Other assets | 169 | 124 | ||
Total assets | 155,057 | 123,570 | ||
Senior debt, net | 7,090 | 8,904 | ||
Subordinated debt, net | 9,868 | 9,829 | ||
Junior subordinated debentures | 10,310 | 10,310 | ||
Other liabilities | 525 | 421 | ||
Total liabilities | 27,793 | 29,464 | ||
Shareholders’ equity | 127,264 | 94,106 | ||
Total liabilities and shareholders’ equity | $ 155,057 | $ 123,570 |
Note 28 - Parent Company Fin139
Note 28 - Parent Company Financial Statements - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other income | $ 461 | $ 636 | $ 314 | ||||||||
Total income | $ 1,282 | $ 1,076 | $ 995 | $ 1,471 | $ 1,260 | $ 990 | $ 412 | $ 824 | 4,824 | 3,486 | 3,183 |
Interest expense | 4,587 | 4,778 | 4,983 | ||||||||
Noninterest expense | 7,891 | 7,357 | 7,726 | 7,990 | 7,825 | 7,156 | 7,643 | 9,876 | 30,964 | 32,500 | 24,905 |
Income before income taxes and equity in undistributed net income of subsidiaries | 3,810 | 4,303 | 3,144 | 3,015 | 2,869 | 3,110 | 1,986 | (748) | 14,272 | 7,217 | 12,048 |
Income tax expense | 3,803 | 1,427 | 935 | 763 | 572 | 744 | 430 | 212 | 6,928 | 1,958 | 3,462 |
Net income | 7,344 | 5,259 | 8,586 | ||||||||
Less: Preferred stock extinguishment costs | 102 | ||||||||||
Income available to common shareholders | $ 7 | $ 2,876 | $ 2,209 | $ 2,252 | $ 2,297 | $ 2,366 | $ 1,556 | $ (960) | 7,344 | 5,259 | 8,295 |
Parent Company [Member] | |||||||||||
Other income | 9 | 7 | 6 | ||||||||
Dividends from subsidiaries | 2,200 | 4,200 | 2,850 | ||||||||
Total income | 2,209 | 4,207 | 2,856 | ||||||||
Management fees paid to subsidiaries | 278 | 259 | 229 | ||||||||
Interest expense | 1,452 | 1,409 | 267 | ||||||||
Noninterest expense | 474 | 345 | 337 | ||||||||
Total expenses | 2,204 | 2,013 | 833 | ||||||||
Income before income taxes and equity in undistributed net income of subsidiaries | 5 | 2,194 | 2,023 | ||||||||
Income tax expense | 1 | 1 | 1 | ||||||||
Income before equity in undistributed net income of subsidiaries | 4 | 2,193 | 2,022 | ||||||||
Equity in undistributed net income of subsidiaries | 7,340 | 3,066 | 6,564 | ||||||||
Net income | 7,344 | 5,259 | 8,586 | ||||||||
Less: Preferred stock extinguishment costs | 102 | ||||||||||
Less: Preferred dividends | 189 | ||||||||||
Income available to common shareholders | $ 7,344 | $ 5,259 | $ 8,295 |
Note 28 - Parent Company Fin140
Note 28 - Parent Company Financial Statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of debt issuance costs | $ 45 | $ 40 | $ 4 |
Provision for depreciation and amortization | 2,061 | 1,908 | 1,524 |
Decrease in other assets | 863 | 118 | 538 |
(Decrease) increase in other liabilities | (961) | 306 | (1,219) |
Net cash provided by operating activities | 13,554 | 11,884 | 10,336 |
Cash flows from investing activities: | |||
Purchase of premises and equipment | (584) | (2,873) | (705) |
Net cash (used) by investing activities | (136,484) | 31,212 | (30,293) |
Cash flows from financing activities: | |||
Debt issuance costs paid | (223) | ||
Redemption of preferred stock | (20,000) | ||
Preferred stock extinguishment costs | (33) | ||
Cash dividends paid on preferred stock | (189) | ||
Cash dividends paid on common stock | (1,776) | (1,603) | (1,601) |
Proceeds from stock options exercised | 245 | 10 | 156 |
Net proceeds from issuance of common stock | 26,778 | ||
Net cash provided by (used in) financing activities | 121,493 | (25,881) | 12,727 |
Net increase (decrease) in cash and cash equivalents | (1,437) | 17,215 | (7,230) |
Supplemental disclosures of non cash financing activities: | |||
Stock compensation grants for the 2016 compensation plan | 41 | ||
Vested and granted restricted stock issued under employee plans | 84 | 36 | |
Parent Company [Member] | |||
Cash flows from operating activities: | |||
Net income | 7,344 | 5,259 | 8,586 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Compensation associated with stock options | 1 | ||
Equity in undistributed net income of subsidiaries | (7,340) | (3,066) | (6,564) |
Amortization of debt issuance costs | 44 | 40 | |
Provision for depreciation and amortization | 6 | ||
Decrease in other assets | 32 | 6 | 371 |
(Decrease) increase in other liabilities | 59 | (137) | 229 |
Net cash provided by operating activities | 145 | 2,102 | 2,623 |
Cash flows from investing activities: | |||
Purchase of premises and equipment | (82) | ||
Net cash (used) by investing activities | (82) | ||
Cash flows from financing activities: | |||
Advances on term debt | 20,000 | ||
Repayment of term debt | (1,819) | (1,001) | (83) |
Debt issuance costs paid | (223) | ||
Redemption of preferred stock | (20,000) | ||
Preferred stock extinguishment costs | (33) | ||
Cash dividends paid on preferred stock | (189) | ||
Cash dividends paid on common stock | (1,776) | (1,603) | (1,601) |
Proceeds from stock options exercised | 245 | 10 | 156 |
Net proceeds from issuance of common stock | 26,778 | ||
Net cash provided by (used in) financing activities | 23,428 | (2,594) | (1,973) |
Net increase (decrease) in cash and cash equivalents | 23,491 | (492) | 650 |
Cash and cash equivalents at the beginning of year | 493 | 985 | 335 |
Cash and cash equivalents at the end of year | 23,984 | 493 | 985 |
Supplemental disclosures of non cash financing activities: | |||
Stock compensation grants for the 2016 compensation plan | 41 | ||
Vested and granted restricted stock issued under employee plans | $ 84 | $ 36 |
Note 29 - Quarterly Financia141
Note 29 - Quarterly Financial Information (Unaudited) - Quarterly Financial Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Net interest income | $ 10,869 | $ 10,584 | $ 10,175 | $ 9,734 | $ 9,434 | $ 9,276 | $ 9,217 | $ 8,304 | $ 41,362 | $ 36,231 | $ 33,770 | |||
Provision for loan and lease losses | 450 | 300 | 200 | 950 | ||||||||||
Total income | 1,282 | 1,076 | 995 | 1,471 | 1,260 | 990 | 412 | 824 | 4,824 | 3,486 | 3,183 | |||
Noninterest expense | 7,891 | 7,357 | 7,726 | 7,990 | 7,825 | 7,156 | 7,643 | 9,876 | 30,964 | 32,500 | 24,905 | |||
Income before income taxes and equity in undistributed net income of subsidiaries | 3,810 | 4,303 | 3,144 | 3,015 | 2,869 | 3,110 | 1,986 | (748) | 14,272 | 7,217 | 12,048 | |||
Income tax expense | 3,803 | 1,427 | 935 | 763 | 572 | 744 | 430 | 212 | 6,928 | 1,958 | 3,462 | |||
Income available to common shareholders | $ 7 | $ 2,876 | $ 2,209 | $ 2,252 | $ 2,297 | $ 2,366 | $ 1,556 | $ (960) | $ 7,344 | $ 5,259 | $ 8,295 | |||
Earnings per share - basic (in dollars per share) | $ 0.18 | $ 0.15 | $ 0.17 | $ 0.17 | $ 0.18 | $ 0.11 | $ (0.07) | $ 0.48 | $ 0.39 | |||||
Weighted average shares - basic (in shares) | 16,195 | 16,191 | 15,014 | 13,416 | 13,370 | 13,369 | 13,367 | 13,360 | 15,207 | [1] | 13,367 | [1] | 13,331 | [1] |
Earnings per share - diluted (in dollars per share) | $ 0.18 | $ 0.15 | $ 0.17 | $ 0.17 | $ 0.18 | $ 0.11 | $ (0.07) | $ 0.48 | $ 0.39 | |||||
Weighted average shares - diluted (in shares) | 16,306 | 16,288 | 15,113 | 13,521 | 13,476 | 13,439 | 13,425 | 13,403 | 15,310 | 13,425 | 13,365 | |||
[1] | Excludes unvested restricted shares because they do not have dividend or voting rights. |