Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 13, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FXNC | |
Entity Registrant Name | FIRST NATIONAL CORP /VA/ | |
Entity Central Index Key | 719,402 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 4,924,539 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | [1] |
Assets | |||
Cash and due from banks | $ 10,250 | $ 8,247 | |
Interest-bearing deposits in banks | 29,077 | 31,087 | |
Securities available for sale, at fair value | 99,019 | 105,559 | |
Securities held to maturity, at carrying value (fair value, 2016, $65,568; 2015, $66,438) | 64,963 | 66,519 | |
Restricted securities, at cost | 1,548 | 1,391 | |
Loans held for sale | 523 | 323 | |
Loans, net of allowance for loan losses, 2016, $5,520; 2015, $5,524 | 448,556 | 433,475 | |
Other real estate owned, net of valuation allowance, 2016, $154; 2015, $224 | 2,112 | 2,679 | |
Premises and equipment, net | 21,366 | 21,389 | |
Accrued interest receivable | 1,741 | 1,661 | |
Bank owned life insurance | 13,828 | 11,742 | |
Core deposit intangibles, net | 2,115 | 2,322 | |
Other assets | 5,945 | 5,927 | |
Total assets | 701,043 | 692,321 | |
Deposits: | |||
Noninterest-bearing demand deposits | 161,783 | 157,070 | |
Savings and interest-bearing demand deposits | 334,599 | 328,945 | |
Time deposits | 136,736 | 141,101 | |
Total deposits | 633,118 | 627,116 | |
Subordinated debt | 4,917 | 4,913 | |
Junior subordinated debt | 9,279 | 9,279 | |
Accrued interest payable and other liabilities | 6,029 | 5,060 | |
Total liabilities | 653,343 | 646,368 | |
Shareholders' Equity | |||
Common stock, par value $1.25 per share; authorized 8,000,000 shares; issued and outstanding, 2016, 4,924,539 shares; 2015, 4,916,130 shares | 6,156 | 6,145 | |
Surplus | 6,996 | 6,956 | |
Retained earnings | 35,391 | 34,440 | |
Accumulated other comprehensive loss, net | (843) | (1,588) | |
Total shareholders' equity | 47,700 | 45,953 | |
Total liabilities and shareholders' equity | $ 701,043 | $ 692,321 | |
[1] | Derived from audited consolidated financial statements. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | [1] |
Statement of Financial Position [Abstract] | |||
Securities held to maturity, at fair value | $ 65,568 | $ 66,438 | |
Allowance for loan losses | 5,520 | 5,524 | |
Other real estate owned, valuation allowance | $ 154 | $ 224 | |
Common stock, par value | $ 1.25 | $ 1.25 | |
Common stock, shares authorized | 8,000,000 | 8,000,000 | |
Common stock, shares issued | 4,924,539 | 4,916,130 | |
Common stock, shares outstanding | 4,924,539 | 4,916,130 | |
[1] | Derived from audited consolidated financial statements. |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest and Dividend Income | ||
Interest and fees on loans | $ 5,236 | $ 4,540 |
Interest on deposits in banks | 48 | 5 |
Interest and dividends on securities available for sale: | ||
Taxable interest | 741 | 358 |
Tax-exempt interest | 147 | 64 |
Dividends | 19 | 21 |
Total interest and dividend income | 6,191 | 4,988 |
Interest Expense | ||
Interest on deposits | 333 | 300 |
Interest on federal funds purchased | 3 | 1 |
Interest on subordinated debt | 90 | |
Interest on junior subordinated debt | 61 | 54 |
Interest on other borrowings | 5 | 1 |
Total interest expense | 492 | 356 |
Net interest income | 5,699 | 4,632 |
Provision for loan losses | 0 | 0 |
Net interest income after provision for loan losses | 5,699 | 4,632 |
Noninterest Income | ||
Service charges on deposit accounts | 780 | 547 |
ATM and check card fees | 488 | 349 |
Wealth management fees | 336 | 503 |
Fees for other customer services | 147 | 107 |
Income from bank owned life insurance | 86 | 74 |
Net gains (losses) on calls and sales of securities available for sale | 6 | (52) |
Net gains on sale of loans | 21 | 55 |
Other operating income | 79 | 8 |
Total noninterest income | 1,943 | 1,591 |
Noninterest Expense | ||
Salaries and employee benefits | 3,444 | 3,125 |
Occupancy | 424 | 317 |
Equipment | 432 | 281 |
Marketing | 107 | 97 |
Supplies | 101 | 345 |
Legal and professional fees | 311 | 212 |
ATM and check card fees | 205 | 155 |
FDIC assessment | 122 | 67 |
Bank franchise tax | 103 | 122 |
Telecommunications expense | 114 | 85 |
Data processing expense | 128 | 187 |
Postage expense | 69 | 117 |
Amortization expense | 207 | 4 |
Other real estate owned income, net | (72) | (36) |
Other operating expense | 422 | 409 |
Total noninterest expense | 6,117 | 5,487 |
Income before income taxes | 1,525 | 736 |
Income tax expense | 426 | 192 |
Net income | 1,099 | 544 |
Effective dividend on preferred stock | 329 | |
Net income available to common shareholders | $ 1,099 | $ 215 |
Earnings per common share | ||
Basic | $ 0.22 | $ 0.04 |
Diluted | $ 0.22 | $ 0.04 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,099 | $ 544 |
Other comprehensive income, net of tax, | ||
Unrealized holding gains on available for sale securities, net of tax $387 and $294, respectively | 749 | 570 |
Reclassification adjustment for (gains) losses included in net income, net of tax ($2) and $18, respectively | (4) | 34 |
Total other comprehensive income | 745 | 604 |
Total comprehensive income | $ 1,844 | $ 1,148 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized holding gains on available for sale securities, tax | $ 387 | $ 294 |
Reclassification adjustment for losses included in net income, tax | $ (2) | $ 18 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flows from Operating Activities | ||
Net income | $ 1,099 | $ 544 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 334 | 238 |
Amortization of core deposit intangibles | 207 | 4 |
Amortization of debt issuance costs | 4 | |
Origination of loans held for sale | (1,506) | (2,210) |
Proceeds from sale of loans held for sale | 1,327 | 2,593 |
Net gains on sales of loans held for sale | (21) | (55) |
Net (gains) losses on sale of securities available for sale | (6) | 52 |
Net gains on sale of other real estate owned | (94) | (57) |
Income from bank owned life insurance | (86) | (74) |
Accretion of discounts and amortization of premiums on securities, net | 219 | 148 |
Accretion of premium on time deposits | (51) | |
Stock-based compensation | 40 | 43 |
Deferred income tax benefit | (76) | (2) |
Changes in assets and liabilities: | ||
(Increase) decrease in interest receivable | (80) | 5 |
Increase in other assets | (45) | (5) |
Increase in other liabilities | 688 | 151 |
Net cash provided by operating activities | 1,953 | 1,375 |
Cash Flows from Investing Activities | ||
Proceeds from maturities, calls, principal payments, and sales of securities available for sale | 7,531 | 3,668 |
Proceeds from maturities, calls, and principal payments of securities held to maturity | 1,481 | |
Purchase of securities available for sale | (10,515) | |
Net purchase of restricted securities | (157) | (633) |
Purchase of premises and equipment | (311) | (410) |
Proceeds from sale of other real estate owned | 698 | 224 |
Purchase of bank owned life insurance | (2,000) | |
Net increase in loans | (15,118) | (20,282) |
Net cash used in investing activities | (7,876) | (27,948) |
Cash Flows from Financing Activities | ||
Net increase (decrease) in demand deposits and savings accounts | 10,367 | (792) |
Net decrease in time deposits | (4,314) | (4,760) |
Net increase in other borrowings | 14,994 | |
Cash dividends paid on common stock, net of reinvestment | (137) | (114) |
Cash dividends paid on preferred stock | (329) | |
Increase in federal funds purchased | 1,903 | |
Net cash provided by financing activities | 5,916 | 10,902 |
Decrease in cash and cash equivalents | (7) | (15,671) |
Cash and Cash Equivalents | ||
Cash and cash equivalents, beginning of period | 39,334 | 24,845 |
Cash and cash equivalents, end of period | 39,327 | 9,174 |
Cash payments for: | ||
Interest | 550 | 371 |
Income Taxes | 271 | 363 |
Supplemental Disclosures of Noncash Investing and Financing Activities | ||
Unrealized gains on securities available for sale | 1,130 | 916 |
Transfer from loans to other real estate owned | 37 | 228 |
Issuance of common stock, dividend reinvestment plan | $ 11 | $ 8 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | |
Beginning Balance at Dec. 31, 2014 | $ 59,564 | $ 14,595 | $ 6,131 | $ 6,835 | $ 33,557 | $ (1,554) | |
Net income | 544 | 544 | |||||
Other comprehensive income | 604 | 604 | |||||
Cash dividends on common stock | (123) | (123) | |||||
Stock-based compensation | 43 | 43 | |||||
Issuance of common stock, dividend reinvestment plan | 9 | 1 | 8 | ||||
Issuance of common stock, stock incentive plan | 5 | (5) | |||||
Cash dividends on preferred stock | (329) | (329) | |||||
Ending Balance at Mar. 31, 2015 | 60,312 | $ 14,595 | 6,137 | 6,881 | 33,649 | (950) | |
Beginning Balance at Dec. 31, 2015 | 45,953 | [1] | 6,145 | 6,956 | 34,440 | (1,588) | |
Net income | 1,099 | 1,099 | |||||
Other comprehensive income | 745 | 745 | |||||
Cash dividends on common stock | (148) | (148) | |||||
Stock-based compensation | 40 | 40 | |||||
Issuance of common stock, dividend reinvestment plan | 11 | 2 | 9 | ||||
Issuance of common stock, stock incentive plan | 9 | (9) | |||||
Ending Balance at Mar. 31, 2016 | $ 47,700 | $ 6,156 | $ 6,996 | $ 35,391 | $ (843) | ||
[1] | Derived from audited consolidated financial statements. |
Consolidated Statements of Cha9
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash dividends on common stock, per share | $ 0.03 | $ 0.025 |
Issuance of common stock dividend reinvestment plan, shares | 1,185 | 955 |
Issuance of common stock incentive plan, shares | 4,182 | |
Common Stock [Member] | ||
Cash dividends on common stock, per share | $ 0.03 | $ 0.025 |
Issuance of common stock dividend reinvestment plan, shares | 1,185 | 955 |
Issuance of common stock incentive plan, shares | 7,224 | 4,182 |
General
General | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
General | Note 1. General The accompanying unaudited consolidated financial statements of First National Corporation (the Company) and its subsidiaries, including First Bank (the Bank), have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP. All significant intercompany balances and transactions have been eliminated. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments and reclassifications of a normal and recurring nature considered necessary to present fairly the financial positions at March 31, 2016 and December 31, 2015, the results of operations and comprehensive income for the three months ended March 31, 2016 and 2015 and the cash flows and changes in shareholders’ equity for the three months ended March 31, 2016 and 2015. The statements should be read in conjunction with the consolidated financial statements and related notes included in the Annual Report on Form 10-K for the year ended December 31, 2015. Operating results for the three month period ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. Recent Accounting Pronouncements In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This update is intended to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management is required under the new guidance to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued when preparing financial statements for each interim and annual reporting period. If conditions or events are identified, the ASU specifies the process that must be followed by management and also clarifies the timing and content of going concern footnote disclosures in order to reduce diversity in practice. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have an impact on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendments in ASU 2016-01, among other things: 1) Requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. 2) Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. 3) Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). 4) Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently assessing the impact that ASU 2016-01 will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently assessing the impact that ASU 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, “Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” Among other things, the amendments in ASU 2016-07, eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Early adoption is permitted. The Company does not expect the adoption of ASU 2016-07 to have a material impact on its consolidated financial statements. During March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The amendments in this ASU simplify several aspects of the accounting for share-based payment award transactions including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The amendments are effective for public companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently assessing the impact that ASU 2016-09 will have on its consolidated financial statements. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Note 2. Securities The Company invests in U.S. agency and mortgage-backed securities, obligations of state and political subdivisions and corporate equity securities. Amortized costs and fair values of securities at March 31, 2016 and December 31, 2015 were as follows (in thousands): March 31, 2016 Amortized Gross Gross Fair Securities available for sale: U.S. agency and mortgage-backed securities $ 83,151 $ 694 $ (205 ) $ 83,640 Obligations of states and political subdivisions 15,029 355 (16 ) 15,368 Corporate equity securities 1 10 — 11 Total securities available for sale $ 98,181 $ 1,059 $ (221 ) $ 99,019 Securities held to maturity: U.S. agency and mortgage-backed securities $ 48,126 $ 308 $ (53 ) $ 48,381 Obligations of states and political subdivisions 15,337 316 (4 ) 15,649 Corporate debt securities 1,500 38 — 1,538 Total securities held to maturity $ 64,963 $ 662 $ (57 ) $ 65,568 Total securities $ 163,144 $ 1,721 $ (278 ) $ 164,587 December 31, 2015 Amortized Gross Gross Fair Securities available for sale: U.S. agency and mortgage-backed securities $ 89,919 $ 261 $ (843 ) $ 89,337 Obligations of states and political subdivisions 15,931 333 (50 ) 16,214 Corporate equity securities 1 7 — 8 Total securities available for sale $ 105,851 $ 601 $ (893 ) $ 105,559 Securities held to maturity: U.S. agency and mortgage-backed securities $ 49,662 $ 36 $ (326 ) $ 49,372 Obligations of states and political subdivisions 15,357 228 (19 ) 15,566 Corporate debt securities 1,500 — — 1,500 Total securities held to maturity $ 66,519 $ 264 $ (345 ) $ 66,438 Total securities $ 172,370 $ 865 $ (1,238 ) $ 171,997 At March 31, 2016 and December 31, 2015, investments in an unrealized loss position that were temporarily impaired were as follows (in thousands): March 31, 2016 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value (Loss) Fair Value (Loss) Fair Value (Loss) Securities available for sale: U.S. agency and mortgage-backed securities $ 12,958 $ (36 ) $ 11,779 $ (169 ) $ 24,737 $ (205 ) Obligations of states and political subdivisions 551 (1 ) 517 (15 ) 1,068 (16 ) Total securities available for sale $ 13,509 $ (37 ) $ 12,296 $ (184 ) $ 25,805 $ (221 ) Securities held to maturity: U.S. agency and mortgage-backed securities $ 8,935 $ (53 ) $ — $ — $ 8,935 $ (53 ) Obligations of states and political subdivisions 1,848 (4 ) — — 1,848 (4 ) Total securities held to maturity $ 10,783 $ (57 ) $ — $ — $ 10,783 $ (57 ) Total securities $ 24,292 $ (94 ) $ 12,296 $ (184 ) $ 36,588 $ (278 ) December 31, 2015 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value (Loss) Fair Value (Loss) Fair Value (Loss) Securities available for sale: U.S. agency and mortgage-backed securities $ 50,185 $ (464 ) $ 13,409 $ (379 ) $ 63,594 $ (843 ) Obligations of states and political subdivisions 2,395 (15 ) 1,053 (35 ) 3,448 (50 ) Total securities available for sale $ 52,580 $ (479 ) $ 14,462 $ (414 ) $ 67,042 $ (893 ) Securities held to maturity: U.S. agency and mortgage-backed securities $ 32,791 $ (326 ) $ — $ — $ 32,791 $ (326 ) Obligations of states and political subdivisions 3,052 (19 ) — — 3,052 (19 ) Total securities held to maturity $ 35,843 $ (345 ) $ — $ — $ 35,843 $ (345 ) Total securities $ 88,423 $ (824 ) $ 14,462 $ (414 ) $ 102,885 $ (1,238 ) The tables above provide information about securities that have been in an unrealized loss position for less than twelve consecutive months and securities that have been in an unrealized loss position for twelve consecutive months or more. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Impairment is considered to be other-than-temporary if the Company (1) intends to sell the security, (2) more likely than not will be required to sell the security before recovering its cost, or (3) does not expect to recover the security’s entire amortized cost basis. Presently, the Company does not intend to sell any of these securities, does not expect to be required to sell these securities, and expects to recover the entire amortized cost of all the securities. At March 31, 2016, there were twenty-one U.S. agency and mortgage-backed securities and six obligations of state and political subdivisions in an unrealized loss position. One hundred percent of the Company’s investment portfolio is considered investment grade. The weighted-average re-pricing term of the portfolio was 4.2 years at March 31, 2016. At December 31, 2015, there were fifty-two U.S. agency and mortgage-backed securities and thirteen obligations of states and political subdivisions in an unrealized loss position. One hundred percent of the Company’s investment portfolio was considered investment grade at December 31, 2015. The weighted-average re-pricing term of the portfolio was 4.6 years at December 31, 2015. The unrealized losses at March 31, 2016 in the U.S. agency and mortgage-backed securities portfolio and the obligation of states and political subdivisions portfolio were related to changes in market interest rates and not credit concerns of the issuers. The amortized cost and fair value of securities available for sale at March 31, 2016 by contractual maturity are shown below (in thousands). Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. Corporate equity securities are not included in the maturity categories in the following maturity summary because they do not have a stated maturity date. Available for Sale Held to Maturity Amortized Fair Amortized Fair Cost Value Cost Value Due within one year $ 375 $ 376 $ — $ — Due after one year through five years 9,661 9,737 631 638 Due after five years through ten years 13,684 13,931 19,490 19,786 Due after ten years 74,460 74,964 44,842 45,144 Corporate equity securities 1 11 — — $ 98,181 $ 99,019 $ 64,963 $ 65,568 Federal Home Loan Bank, Federal Reserve Bank and Community Bankers’ Bank stock are generally viewed as long-term investments and as restricted securities, which are carried at cost, because there is a minimal market for the stock. Therefore, when evaluating restricted securities for impairment, their value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider these investments to be other-than-temporarily impaired at March 31, 2016, and no impairment has been recognized. The composition of restricted securities at March 31, 2016 and December 31, 2015 was as follows (in thousands): March 31, December 31, Federal Home Loan Bank stock $ 623 $ 466 Federal Reserve Bank stock 875 875 Community Bankers’ Bank stock 50 50 $ 1,548 $ 1,391 |
Loans
Loans | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Loans | Note 3. Loans Loans at March 31, 2016 and December 31, 2015 are summarized as follows (in thousands): March 31, December 31, Real estate loans: Construction and land development $ 31,505 $ 33,135 Secured by 1-4 family residential 196,165 189,286 Other real estate loans 191,306 181,447 Commercial and industrial loans 24,215 24,048 Consumer and other loans 10,885 11,083 Total loans $ 454,076 $ 438,999 Allowance for loan losses (5,520 ) (5,524 ) Loans, net $ 448,556 $ 433,475 Net deferred loan costs included in the above loan categories were $2 thousand and $54 thousand at March 31, 2016 and December 31, 2015, respectively. Consumer and other loans included $312 thousand and $257 thousand of demand deposit overdrafts at March 31, 2016 and December 31, 2015, respectively. Risk characteristics of each loan portfolio class that are considered by the Company include: • 1-4 family residential mortgage loans carry risks associated with the continued creditworthiness of the borrower and changes in the value of the collateral. • Real estate construction and land development loans carry risks that the project may not be finished according to schedule, the project may not be finished according to budget and the value of the collateral may, at any point in time, be less than the principal amount of the loan. Construction loans also bear the risk that the general contractor, who may or may not be a loan customer, may be unable to finish the construction project as planned because of financial pressure or other factors unrelated to the project. • Other real estate loans carry risks associated with the successful operation of a business or a real estate project, in addition to other risks associated with the ownership of real estate, because repayment of these loans may be dependent upon the profitability and cash flows of the business or project. • Commercial and industrial loans carry risks associated with the successful operation of a business because repayment of these loans may be dependent upon the profitability and cash flows of the business. In addition, there is risk associated with the value of collateral other than real estate which may depreciate over time and cannot be appraised with as much reliability. • Consumer and other loans carry risk associated with the continued creditworthiness of the borrower and the value of the collateral, i.e. rapidly depreciating assets such as automobiles, or lack thereof. Consumer loans are likely to be immediately adversely affected by job loss, divorce, illness or personal bankruptcy, or other changes in circumstances. The following tables provide a summary of loan classes and an aging of past due loans as of March 31, 2016 and December 31, 2015 (in thousands): March 31, 2016 30-59 60-89 > 90 Total Current Total Non-accrual 90 Days Real estate loans: Construction and land development $ 55 $ 101 $ 32 $ 188 $ 31,317 $ 31,505 $ 1,333 $ 32 1-4 family residential 709 154 295 1,158 195,007 196,165 375 — Other real estate loans 167 714 125 1,006 190,300 191,306 2,461 — Commercial and industrial 170 — 92 262 23,953 24,215 89 92 Consumer and other loans 15 — — 15 10,870 10,885 — — Total $ 1,116 $ 969 $ 544 $ 2,629 $ 451,447 $ 454,076 $ 4,258 $ 124 December 31, 2015 30-59 60-89 > 90 Total Current Total Non-accrual 90 Days Real estate loans: Construction and land development $ — $ — $ — $ — $ 33,135 $ 33,135 $ 1,269 $ — 1-4 family residential 635 18 264 917 188,369 189,286 346 — Other real estate loans 387 358 790 1,535 179,912 181,447 2,145 — Commercial and industrial — — 92 92 23,956 24,048 94 92 Consumer and other loans 20 — — 20 11,063 11,083 — — Total $ 1,042 $ 376 $ 1,146 $ 2,564 $ 436,435 $ 438,999 $ 3,854 $ 92 Credit Quality Indicators As part of the ongoing monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to the risk grading of specified classes of loans. The Company utilizes a risk grading matrix to assign a rating to each of its loans. The loan ratings are summarized into the following categories: pass, special mention, substandard, doubtful and loss. Pass rated loans include all risk rated credits other than those included in special mention, substandard or doubtful. Loans classified as loss are charged-off. Loan officers assign risk grades to loans at origination and as renewals arise. The Bank’s Credit Administration department reviews risk grades for accuracy on a quarterly basis and as credit issues arise. In addition, a certain amount of loans are reviewed each year through the Company’s internal and external loan review process. A description of the general characteristics of the loan grading categories is as follows: Pass – Special Mention – Substandard – Doubtful – Loss – The following tables provide an analysis of the credit risk profile of each loan class as of March 31, 2016 and December 31, 2015 (in thousands): March 31, 2016 Pass Special Substandard Doubtful Total Real estate loans: Construction and land development $ 25,288 $ 2,139 $ 4,078 $ — $ 31,505 Secured by 1-4 family residential 190,069 2,843 3,253 — 196,165 Other real estate loans 176,371 8,393 6,542 — 191,306 Commercial and industrial 23,538 421 256 — 24,215 Consumer and other loans 10,885 — — — 10,885 Total $ 426,151 $ 13,796 $ 14,129 $ — $ 454,076 December 31, 2015 Pass Special Substandard Doubtful Total Real estate loans: Construction and land development $ 26,371 $ 2,587 $ 4,177 $ — $ 33,135 Secured by 1-4 family residential 182,595 3,376 3,315 — 189,286 Other real estate loans 165,310 9,977 6,160 — 181,447 Commercial and industrial 23,351 432 265 — 24,048 Consumer and other loans 11,083 — — — 11,083 Total $ 408,710 $ 16,372 $ 13,917 $ — $ 438,999 |
Allowance for Loan Losses
Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Note 4. Allowance for Loan Losses The following tables present, as of March 31, 2016, December 31, 2015 and March 31, 2015, the total allowance for loan losses, the allowance by impairment methodology and loans by impairment methodology (in thousands): March 31, 2016 Construction Secured by Other Real Commercial Consumer Total Allowance for loan losses: Beginning Balance, December 31, 2015 $ 1,532 $ 939 $ 2,534 $ 306 $ 213 $ 5,524 Charge-offs — (2 ) — — (118 ) (120 ) Recoveries 1 9 — 3 103 116 Provision for (recovery of) loan losses (163 ) 38 117 (12 ) 20 — Ending Balance, March 31, 2016 $ 1,370 $ 984 $ 2,651 $ 297 $ 218 $ 5,520 Ending Balance: Individually evaluated for impairment 222 22 190 — — 434 Collectively evaluated for impairment 1,148 962 2,461 297 218 5,086 Loans: Ending Balance 31,505 196,165 191,306 24,215 10,885 454,076 Individually evaluated for impairment 2,675 2,062 2,990 89 — 7,816 Collectively evaluated for impairment 28,830 194,103 188,316 24,126 10,885 446,260 December 31, 2015 Construction Secured by Other Real Commercial Consumer Total Allowance for loan losses: Beginning Balance, December 31, 2014 $ 1,403 $ 1,204 $ 3,658 $ 310 $ 143 $ 6,718 Charge-offs — (142 ) (1,125 ) (59 ) (512 ) (1,838 ) Recoveries 4 373 2 72 293 744 Provision for (recovery of) loan losses 125 (496 ) (1 ) (17 ) 289 (100 ) Ending Balance, December 31, 2015 $ 1,532 $ 939 $ 2,534 $ 306 $ 213 $ 5,524 Ending Balance: Individually evaluated for impairment 326 23 195 — — 544 Collectively evaluated for impairment 1,206 916 2,339 306 213 4,980 Loans: Ending Balance 33,135 189,286 181,447 24,048 11,083 438,999 Individually evaluated for impairment 2,544 2,044 3,023 94 — 7,705 Collectively evaluated for impairment 30,591 187,242 178,424 23,954 11,083 431,294 March 31, 2015 Construction Secured by Other Real Commercial Consumer Total Allowance for loan losses: Beginning Balance, December 31, 2014 $ 1,403 $ 1,204 $ 3,658 $ 310 $ 143 $ 6,718 Charge-offs — (47 ) — — (65 ) (112 ) Recoveries 1 34 1 60 69 165 Provision for (recovery of) loan losses 197 (239 ) 137 (82 ) (13 ) — Ending Balance, March 31, 2015 $ 1,601 $ 952 $ 3,796 $ 288 $ 134 $ 6,771 Ending Balance: Individually evaluated for impairment 341 85 1,447 28 — 1,901 Collectively evaluated for impairment 1,260 867 2,349 260 134 4,870 Loans: Ending Balance 33,344 172,874 158,896 21,420 11,983 398,517 Individually evaluated for impairment 3,071 2,747 7,103 113 — 13,034 Collectively evaluated for impairment 30,273 170,127 151,793 21,307 11,983 385,483 Impaired loans and the related allowance at March 31, 2016, December 31, 2015 and March 31, 2015, were as follows (in thousands): March 31, 2016 Unpaid Recorded Recorded Total Related Average Interest Real estate loans: Construction and land development $ 2,897 $ 2,253 $ 422 $ 2,675 $ 222 $ 2,593 $ 16 Secured by 1-4 family 2,136 2,040 22 2,062 22 2,059 24 Other real estate loans 3,549 2,436 554 2,990 190 3,069 8 Commercial and industrial 104 89 — 89 — 92 — Consumer and other loans — — — — — — — Total $ 8,686 $ 6,818 $ 998 $ 7,816 $ 434 $ 7,813 $ 48 December 31, 2015 Unpaid Recorded Recorded Total Related Average Interest Real estate loans: Construction and land development $ 2,741 $ 2,206 $ 338 $ 2,544 $ 326 $ 2,967 $ 60 Secured by 1-4 family 2,116 2,021 23 2,044 23 2,526 107 Other real estate loans 3,492 2,463 560 3,023 195 4,933 58 Commercial and industrial 107 94 — 94 — 118 — Consumer and other loans — — — — — — — Total $ 8,456 $ 6,784 $ 921 $ 7,705 $ 544 $ 10,544 $ 225 March 31, 2015 Unpaid Recorded Recorded Total Related Average Interest Real estate loans: Construction and land development $ 3,198 $ 2,196 $ 875 $ 3,071 $ 341 $ 3,171 $ 16 Secured by 1-4 family 3,672 2,509 238 2,747 85 3,149 29 Other real estate loans 7,559 4,119 2,984 7,103 1,447 7,149 34 Commercial and industrial 122 3 110 113 28 118 — Consumer and other loans — — — — — — — Total $ 14,551 $ 8,827 $ 4,207 $ 13,034 $ 1,901 $ 13,587 $ 79 The “Recorded Investment” amounts in the table above represent the outstanding principal balance on each loan represented in the table. The “Unpaid Principal Balance” represents the outstanding principal balance on each loan represented in the table plus any amounts that have been charged off on each loan and/or payments that have been applied towards principal on non-accrual loans. As of March 31, 2016, one loan totaling $663 thousand was classified as a troubled debt restructuring (TDR) and included in impaired loans in the disclosure above. At March 31, 2016, the loan classified as a TDR was not performing under the restructured terms and was considered a non-performing asset. There were $982 thousand in TDRs at December 31, 2015, $317 thousand of which were performing under the restructured terms. Modified terms under TDRs may include rate reductions, extension of terms that are considered to be below market, conversion to interest only, and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. There were no loans modified under TDRs during the three month periods ended March 31, 2016 and 2015. For the three months ended March 31, 2016 and 2015, there were no troubled debt restructurings that subsequently defaulted within twelve months of the loan modification. Management defines default as over ninety days past due or the foreclosure and repossession of the collateral or charge-off of the loan during the twelve month period subsequent to the modification. |
Other Real Estate Owned (OREO)
Other Real Estate Owned (OREO) | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Other Real Estate Owned (OREO) | Note 5. Other Real Estate Owned (OREO) OREO was primarily comprised of raw land and residential properties, and are located primarily in the Commonwealth of Virginia. Changes in the balance for OREO are as follows (in thousands): For the three For the year March 31, December 31, 2016 2015 Balance at the beginning of year, gross $ 2,903 $ 2,263 Transfers in 37 1,664 Charge-offs (70 ) (381 ) Sales proceeds (698 ) (717 ) Gain on disposition 94 74 Balance at the end of period, gross $ 2,266 $ 2,903 Less: valuation allowance (154 ) (224 ) Balance at the end of period, net $ 2,112 $ 2,679 At March 31, 2016, the carrying amount of residential real estate properties included in OREO was $506 thousand. The carrying amount of residential real estate properties included in OREO at December 31, 2015 was $627 thousand. The Bank did not have any consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process as of March 31, 2016. Changes in the valuation allowance are as follows (in thousands): For the three months ended For the year March 31, March 31, December 31, 2016 2015 2015 Balance at beginning of year $ 224 $ 375 $ 375 Provision for losses — — 230 Charge-offs, net (70 ) (250 ) (381 ) Balance at end of period $ 154 $ 125 $ 224 Net expenses applicable to OREO, other than the provision for losses, were $22 thousand and $21 thousand for the three months ended March 31, 2016 and 2015, respectively and $196 thousand for the year ended December 31, 2015. |
Other Borrowings
Other Borrowings | 3 Months Ended |
Mar. 31, 2016 | |
Text Block [Abstract] | |
Other Borrowings | Note 6. Other Borrowings The Bank had unused lines of credit totaling $124.6 million and $128.1 million available with non-affiliated banks at March 31, 2016 and December 31, 2015, respectively. These amounts primarily consist of a blanket floating lien agreement with the Federal Home Loan Bank of Atlanta (FHLB) in which the Bank can borrow up to 19% of its total assets. The unused line of credit with FHLB totaled $80.4 million at March 31, 2016. The Bank had collateral pledged on the borrowing line at March 31, 2016 and December 31, 2015 including real estate loans totaling $102.3 million and $105.1 million, respectively, and Federal Home Loan Bank stock with a book value of $623 thousand and $466 thousand, respectively. The Bank did not have borrowings from the FHLB at March 31, 2016 and December 31, 2015. |
Capital Requirements
Capital Requirements | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Capital Requirements | Note 7. Capital Requirements The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk-weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. The final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective January 1, 2015, with full compliance of all the requirements being phased in over a multi-year schedule, and becoming fully phased in by January 1, 2019. As part of the new requirements, the common equity Tier 1 capital ratio is calculated and utilized in the assessment of capital for all institutions. The final rules also established a “capital conservation buffer” above the new regulatory minimum capital requirements. The capital conservation buffer is being phased-in over four years beginning on January 1, 2016. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of total (as defined in the regulations), Tier 1 (as defined), and common equity Tier 1 capital (as defined) to risk-weighted assets (as defined), and of Tier 1 capital to average assets. Management believes, as of March 31, 2016 and December 31, 2015, that the Bank met all capital adequacy requirements to which it is subject. As of March 31, 2016, the most recent notification from the Federal Reserve Bank categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum risk-based capital and leverage ratios as set forth in the following table. There are no conditions or events since that notification that management believes have changed the Bank’s category. A comparison of the capital of the Bank at March 31, 2016 and December 31, 2015 with the minimum regulatory guidelines were as follows (dollars in thousands): Actual Minimum Capital Minimum Amount Ratio Amount Ratio Amount Ratio March 31, 2016: Total Capital (to Risk-Weighted Assets) $ 62,440 13.50 % $ 37,006 8.00 % $ 46,258 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 56,920 12.30 % $ 27,755 6.00 % $ 37,006 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 56,920 12.30 % $ 20,816 4.50 % $ 30,068 6.50 % Tier 1 Capital (to Average Assets) $ 56,920 8.22 % $ 27,693 4.00 % $ 34,617 5.00 % December 31, 2015: Total Capital (to Risk-Weighted Assets) $ 61,513 13.86 % $ 35,497 8.00 % $ 44,372 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 55,989 12.62 % $ 26,623 6.00 % $ 35,497 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 55,989 12.62 % $ 19,967 4.50 % $ 28,842 6.50 % Tier 1 Capital (to Average Assets) $ 55,989 8.12 % $ 27,571 4.00 % $ 34,464 5.00 % |
Subordinated Debt
Subordinated Debt | 3 Months Ended |
Mar. 31, 2016 | |
Brokers and Dealers [Abstract] | |
Subordinated Debt | Note 8. Subordinated Debt On October 30, 2015, the Company entered into a Subordinated Loan Agreement (the Agreement) pursuant to which the Company issued an interest only subordinated term note due 2025 in the aggregate principal amount of $5.0 million (the Note). The Note bears interest at a fixed rate of 6.75% per annum. The Note qualifies as Tier 2 capital for regulatory capital purposes and at March 31, 2016, the total amount of subordinated debt issued was included in the Company’s Tier 2 capital. The Note has a maturity date of October 1, 2025. Subject to regulatory approval, the Company may prepay the Note, in part or in full, beginning on October 30, 2020. The Note is an unsecured, subordinated obligation of the Company and ranks junior in right of payment to the Company’s senior indebtedness and to the Company’s obligations to its general creditors. The Note ranks equally with all other unsecured subordinated debt, except any which by its terms is expressly stated to be subordinated to the Note. The Note ranks senior to all current and future junior subordinated debt obligations, preferred stock and common stock of the Company. The Note is not convertible into common stock or preferred stock. The Agreement contains customary events of default such as the bankruptcy of the Company and the non-payment of principal or interest when due. The holder of the Note may accelerate the repayment of the Note only in the event of bankruptcy or similar proceedings and not for any other event of default. |
Junior Subordinated Debt
Junior Subordinated Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Junior Subordinated Debt | Note 9. Junior Subordinated Debt On June 8, 2004, First National (VA) Statutory Trust II (Trust II), a wholly-owned subsidiary of the Company, was formed for the purpose of issuing redeemable capital securities, commonly known as trust preferred securities. On June 17, 2004, $5.0 million of trust preferred securities were issued through a pooled underwriting. The securities have a LIBOR-indexed floating rate of interest. The interest rate at March 31, 2016 and December 31, 2015 was 3.24% and 3.13%, respectively. The securities have a mandatory redemption date of June 17, 2034, and were subject to varying call provisions that began September 17, 2009. The principal asset of Trust II is $5.2 million of the Company’s junior subordinated debt with maturities and interest rates comparable to the trust preferred securities. The Trust’s obligations under the trust preferred securities are fully and unconditionally guaranteed by the Company. The Company is current on its interest payments on the junior subordinated debt. On July 24, 2006, First National (VA) Statutory Trust III (Trust III), a wholly-owned subsidiary of the Company, was formed for the purpose of issuing redeemable capital securities. On July 31, 2006, $4.0 million of trust preferred securities were issued through a pooled underwriting. The securities have a LIBOR-indexed floating rate of interest. The interest rate at March 31, 2016 and December 31, 2015 was 2.21% and 1.93%, respectively. The securities have a mandatory redemption date of October 1, 2036, and were subject to varying call provisions that began October 1, 2011. The principal asset of Trust III is $4.1 million of the Company’s junior subordinated debt with maturities and interest rates comparable to the trust preferred securities. The Trust’s obligations under the trust preferred securities are fully and unconditionally guaranteed by the Company. The Company is current on its interest payments on the junior subordinated debt. While these securities are debt obligations of the Company, they are included in capital for regulatory capital ratio calculations. Under present regulations, the junior subordinated debt may be included in Tier 1 capital for regulatory capital adequacy purposes as long as their amount does not exceed 25% of Tier 1 capital, including total junior subordinated debt. The portion of the junior subordinated debt not considered as Tier 1 capital, if any, may be included in Tier 2 capital. At March 31, 2016 and December 31, 2015, the total amount of junior subordinated debt issued by the Trusts was included in the Company’s Tier 1 capital. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | Note 10. Benefit Plans The Bank has a noncontributory, defined benefit pension plan for all full-time employees over 21 years of age with at least one year of credited service and hired prior to May 1, 2011. Effective May 1, 2011, the plan was frozen to new participants. Only individuals employed on or before April 30, 2011 were eligible to become participants in the plan upon satisfaction of the eligibility requirements. Benefits are generally based upon years of service and average compensation for the five highest-paid consecutive years of service. The Bank’s funding practice has been to make at least the minimum required annual contribution permitted by the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended. Components of the net periodic benefit cost of the plan for the three months ended March 31, 2016 and 2015 were as follows (in thousands): For the three months 2016 2015 Service cost $ 102 $ 111 Interest cost 83 76 Expected return on plan assets (74 ) (79 ) Amortization of net loss 21 22 Net periodic benefit cost $ 132 $ 130 The Company previously disclosed in its consolidated financial statements in its Annual Report on Form 10-K for the year ended December 31, 2015, that it expected to make no contribution to its pension plan during the year ended December 31, 2016. There was no minimum annual contribution required. In addition to the defined benefit pension plan, the Company maintains a 401(k) plan and an employee stock ownership plan (ESOP) for eligible employees. See Note 13 of the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 for additional information about the Company’s benefit plans. |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Note 11. Earnings per Common Share Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. The following table presents the computation of basic and diluted earnings per share for the three months ended March 31, 2016 and 2015 (dollars in thousands, except per share data): For the three months ended March 31, March 31, 2016 2015 (Numerator): Net income $ 1,099 $ 544 Effective dividend on preferred stock — 329 Net income available to common shareholders $ 1,099 $ 215 (Denominator): Weighted average shares outstanding – basic 4,920,315 4,906,981 Potentially dilutive common shares – restricted stock units 2,802 4,063 Weighted average shares outstanding – diluted 4,923,117 4,911,044 Income per common share Basic $ 0.22 $ 0.04 Diluted $ 0.22 $ 0.04 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 12. Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the “Fair Value Measurement and Disclosures” topic of FASB ASC, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. Fair Value Hierarchy In accordance with this guidance, the Company groups its assets and liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 – Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 – Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires a significant management judgment or estimation. An instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a recurring basis in the financial statements: Securities available for sale Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2). The following tables present the balances of assets measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015 (in thousands). Fair Value Measurements at March 31, 2016 Description Balance as of Quoted Significant Significant Securities available for sale U.S. agency and mortgage-backed securities $ 83,640 $ — $ 83,640 $ — Obligations of states and political subdivisions 15,368 — 15,368 — Corporate equity securities 11 11 — — $ 99,019 $ 11 $ 99,008 $ — Fair Value Measurements at December 31, 2015 Description Balance as of Quoted Significant Significant Securities available for sale U.S. agency and mortgage-backed securities $ 89,337 $ — $ 89,337 $ — Obligations of states and political subdivisions 16,214 — 16,214 — Corporate equity securities 8 8 — — $ 105,559 $ 8 $ 105,551 $ — Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets. The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements: Loans held for sale Loans held for sale are carried at the lower of cost or market value. These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. Fair value is based on the price secondary markets are currently offering for similar loans using observable market data which is not materially different than cost due to the short duration between origination and sale (Level 2). As such, the Company records any fair value adjustments on a nonrecurring basis. No nonrecurring fair value adjustments were recorded on loans held for sale during three months ended March 31, 2016 and the year ended December 31, 2015. Impaired Loans Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreements will not be collected. The measurement of loss associated with impaired loans can be based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the observable market price of the loan, or the fair value of the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the Company’s collateral is real estate. The value of real estate collateral is determined utilizing a market valuation approach based on an appraisal conducted by an independent, licensed appraiser using observable market data (Level 2) within the last twelve months. However, if the collateral is a house or building in the process of construction or if an appraisal of the property is more than one year old and not solely based on observable market comparables or management determines the fair value of the collateral is further impaired below the appraised value, then a Level 3 valuation is considered to measure the fair value. The value of business equipment is based upon an outside appraisal, of one year or less, if deemed significant, or the net book value on the applicable business’s financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Impaired loans allocated to the allowance for loan losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Consolidated Statements of Income. Other real estate owned Loans are transferred to other real estate owned when the collateral securing them is foreclosed on or acquired through a deed in lieu of foreclosure. The measurement of loss associated with other real estate owned is based on the appraisal documents and assessed the same way as impaired loans described above. Any fair value adjustments are recorded in the period incurred as other real estate owned expense on the Consolidated Statements of Income. The following tables summarize the Company’s assets that were measured at fair value on a nonrecurring basis during the periods (dollars in thousands): Fair Value Measurements at March 31, 2016 Description Balance as of Quoted Significant Significant Impaired loans, net $ 564 $ — $ — $ 564 Other real estate owned, net 2,112 — — 2,112 Fair Value Measurements at December 31, 2015 Description Balance as of Quoted Significant Significant Impaired loans, net $ 377 $ — $ — $ 377 Other real estate owned, net 2,679 — — 2,679 Quantitative information about Level 3 Fair Value Measurements for March 31, 2016 Fair Value Valuation Technique Unobservable Input Range(Weighted- Impaired loans, net $ 564 Property appraisals Selling cost 1-10% (4%) Other real estate owned, net $ 2,112 Property appraisals Selling cost 7% Quantitative information about Level 3 Fair Value Measurements for December 31, 2015 Fair Value Valuation Technique Unobservable Input Range(Weighted- Impaired loans, net $ 377 Property appraisals Selling cost 2-10% (5%) Other real estate owned, net $ 2,679 Property appraisals Selling cost 7% Accounting guidance requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. The methodologies for other financial assets and financial liabilities are discussed below: Cash and Cash Equivalents and Federal Funds Sold The carrying amounts of cash and short-term instruments approximate fair values. Securities Held to Maturity Certain debt securities that management has the positive intent and ability to hold until maturity are recorded at amortized cost. Fair values are determined in a manner that is consistent with securities available for sale. Restricted Securities The carrying value of restricted securities approximates fair value based on redemption. Loans For variable-rate loans that re-price frequently and with no significant change in credit risk, fair values are based on carrying values. Fair values for all other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Fair values for non-performing loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. Deposit Liabilities The fair value of demand deposits, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-rate certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities. Accrued Interest Accrued interest receivable and payable were estimated to equal the carrying value due to the short-term nature of these financial instruments. Borrowings and Federal Funds Purchased The carrying amounts of federal funds purchased and other short-term borrowings maturing within ninety days approximate their fair values. Fair values of all other borrowings are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Bank Owned Life Insurance Bank owned life insurance represents insurance policies on officers, directors, and past directors of the Company. The cash values of these policies are estimates using information provided by insurance carriers. These policies are carried at their cash surrender value, which approximates the fair value. Commitments and Unfunded Credits The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of stand-by letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. At March 31, 2016 and December 31, 2015, fair value of loan commitments and standby letters of credit was immaterial. The carrying values and estimated fair values of the Company’s financial instruments at March 31, 2016 and December 31, 2015 are as follows (in thousands): Fair Value Measurements at March 31, 2016 Using Carrying Quoted Significant Significant Fair Value Financial Assets Cash and short-term investments $ 39,327 $ 39,327 $ — $ — $ 39,327 Securities available for sale 99,019 11 99,008 — 99,019 Securities held to maturity 64,963 — 64,030 1,538 65,568 Restricted securities 1,548 — 1,548 — 1,548 Loans held for sale 523 — 523 — 523 Loans, net 448,556 — — 456,263 456,263 Bank owned life insurance 13,828 — 13,828 — 13,828 Accrued interest receivable 1,741 — 1,741 — 1,741 Financial Liabilities Deposits $ 633,118 $ — $ 496,382 $ 136,654 $ 633,036 Subordinated debt 4,917 — — 5,001 5,001 Junior subordinated debt 9,279 — — 8,578 8,578 Accrued interest payable 111 — 111 — 111 Fair Value Measurements at December 31, 2015 Using Carrying Quoted Significant Significant Fair Value Financial Assets Cash and short-term investments $ 39,334 $ 39,334 $ — $ — $ 39,334 Securities available for sale 105,559 8 105,551 — 105,559 Securities held to maturity 66,519 — 64,938 1,500 66,438 Restricted securities 1,391 — 1,391 — 1,391 Loans held for sale 323 — 323 — 323 Loans, net 433,475 — — 438,392 438,392 Bank owned life insurance 11,742 — 11,742 — 11,742 Accrued interest receivable 1,661 — 1,661 — 1,661 Financial Liabilities Deposits $ 627,116 $ — $ 486,015 $ 140,306 $ 626,321 Subordinated debt 4,913 — — 4,913 4,913 Junior subordinated debt 9,279 — — 8,141 8,141 Accrued interest payable 117 — 117 — 117 The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk. |
Preferred Stock
Preferred Stock | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Preferred Stock | Note 13. Preferred Stock On November 6, 2015, the Company redeemed all 13,900 outstanding shares of its Fixed Rate Perpetual Preferred Stock, Series A at par for $13.9 million and all 695 outstanding shares of its Fixed Rate Perpetual Preferred Stock, Series B at par for $695 thousand. Prior to redemption, the Company had (i) 13,900 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, with a par value of $1.25 per share and liquidation preference of $1,000 per share (the Preferred Stock) and (ii) 695 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series B, with a par value of $1.25 per share and liquidation preference of $1,000 per share (the Warrant Preferred Stock). The Preferred Stock paid cumulative dividends at a rate of 5% per annum until May 14, 2014, and thereafter at a rate of 9% per annum. The Warrant Preferred Stock paid cumulative dividends at a rate of 9% per annum from the date of issuance. The discount on the Preferred Stock was fully amortized over a five year period through March 12, 2014, using the constant effective yield method. |
Stock Compensation Plans
Stock Compensation Plans | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plans | Note 14. Stock Compensation Plans On May 13, 2014, the Company’s shareholders approved the First National Corporation 2014 Stock Incentive Plan, which makes available up to 240,000 shares of common stock for the granting of stock options, restricted stock awards, stock appreciation rights and other stock-based awards. Awards are made at the discretion of the Board of Directors and compensation cost equal to the fair value of the award is recognized over the vesting period. Restricted Stock Units Restricted stock units are an award of units that correspond in number and value to a specified number of shares of employer stock which the recipient receives according to a vesting plan and distribution schedule after achieving required performance milestones or upon remaining with the employer for a particular length of time. Each restricted stock unit that vests entitles the recipient to receive one share of common stock on a specified issuance date. In the first quarter of 2016, 9,130 restricted stock units were granted to employees, with 3,047 units vesting immediately and 6,083 units subject to a two year vesting schedule with one half of the units vesting each year on the grant date anniversary. The recipient does not have any stockholder rights, including voting, dividend or liquidation rights, with respect to the shares underlying awarded restricted stock units until vesting has occurred and the recipient becomes the record holder of those shares. The unvested restricted stock units will vest on the established schedule if the employees remain employed by the Company on future vesting dates. A summary of the activity for the Company’s restricted stock units for the period indicated is presented in the following table: March 31, 2016 Shares Weighted Unvested, beginning of period 8,353 $ 9.00 Granted 9,130 8.80 Vested (7,224 ) 8.92 Forfeited — — Unvested, end of period 10,259 $ 8.88 At March 31, 2016, based on restricted stock unit awards outstanding at that time, the total unrecognized pre-tax compensation expense related to unvested restricted stock unit awards was $82 thousand. This expense is expected to be recognized through 2018. Compensation expense related to restricted stock unit awards recognized for the three months ended March 31, 2016 and 2015 totaled $40 thousand and $43 thousand, respectively. As of March 31, 2016, the Company does not expect the forfeiture of any unvested restricted stock units. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 15. Accumulated Other Comprehensive Loss Changes in each component of accumulated other comprehensive loss were as follows (in thousands): Net Adjustments Accumulated Balance at December 31, 2014 $ (133 ) $ (1,421 ) $ (1,554 ) Unrealized holding gains (net of tax, $294) 570 — 570 Reclassification adjustment (net of tax, ($18)) 34 — 34 Change during period 604 — 604 Balance at March 31, 2015 $ 471 $ (1,421 ) $ (950 ) Balance at December 31, 2015 $ (192 ) $ (1,396 ) $ (1,588 ) Unrealized holding gains (net of tax, $387) 749 — 749 Reclassification adjustment (net of tax, $2) (4 ) — (4 ) Change during period 745 — 745 Balance at March 31, 2016 $ 553 $ (1,396 ) $ (843 ) The following tables present information related to reclassifications from accumulated other comprehensive loss for the three month periods ended March 31, 2016 and 2015 (in thousands): Details About Accumulated Other Comprehensive Loss Amount Reclassified from Affected Line Item in the Consolidated Statements of Income For the three months 2016 2015 Securities available for sale: Net securities (gains) losses reclassified into earnings $ (6 ) $ 52 Net gains (losses) on calls and sales of securities available for sale Related income tax expense (benefit) 2 (18 ) Income tax expense Total reclassifications $ (4 ) $ 34 Net of tax |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisition | Note 16. Acquisition On April 17, 2015, the Bank completed its acquisition of six branch banking operations located in Virginia from Bank of America, National Association (the Acquisition). The Bank paid cash of $6.6 million for the deposits and premises and equipment. The Bank acquired all related premises and equipment valued at $4.5 million and assumed $186.8 million of deposit liabilities. No loans were acquired in the transaction. 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. Fair values are preliminary and subject to refinement for up to one year after the closing date of the Acquisition as additional information regarding the closing date fair values becomes available. The Bank engaged third party specialists to assist in valuing certain assets, including the real estate, core deposit intangible, and goodwill (bargain purchase gain) that resulted from the Acquisition. The following table provides a preliminary assessment of the consideration transferred, assets purchased, and the liabilities assumed (in thousands): As Recorded Fair Value and As Recorded Consideration paid: Cash paid $ 6,618 Total consideration $ 6,618 Assets acquired: Cash and cash equivalents $ 186,119 $ — $ 186,119 Premises and equipment, net 2,165 2,330 4,495 Other assets 114 — 114 Core deposit intangibles — 2,910 2,910 Total assets acquired $ 188,398 $ 5,240 $ 193,638 Liabilities assumed: Deposits $ 186,119 $ 683 $ 186,802 Other liabilities 17 — 17 Total liabilities assumed $ 186,136 $ 683 $ 186,819 Net identifiable assets acquired over liabilities assumed $ 2,262 $ 4,557 $ 6,819 Goodwill (bargain purchase gain) $ (201 ) The bargain purchase gain from the transaction may have resulted from Bank of America’s decision to no longer operate bank branches in certain markets and their willingness to sell the related premises and equipment lower than fair value. |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This update is intended to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management is required under the new guidance to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued when preparing financial statements for each interim and annual reporting period. If conditions or events are identified, the ASU specifies the process that must be followed by management and also clarifies the timing and content of going concern footnote disclosures in order to reduce diversity in practice. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have an impact on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendments in ASU 2016-01, among other things: 1) Requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. 2) Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. 3) Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). 4) Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently assessing the impact that ASU 2016-01 will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently assessing the impact that ASU 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, “Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” Among other things, the amendments in ASU 2016-07, eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Early adoption is permitted. The Company does not expect the adoption of ASU 2016-07 to have a material impact on its consolidated financial statements. During March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The amendments in this ASU simplify several aspects of the accounting for share-based payment award transactions including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The amendments are effective for public companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently assessing the impact that ASU 2016-09 will have on its consolidated financial statements. |
Fair Value Measurement and Disclosures | The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the “Fair Value Measurement and Disclosures” topic of FASB ASC, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Costs and Fair Values of Securities | Amortized costs and fair values of securities at March 31, 2016 and December 31, 2015 were as follows (in thousands): March 31, 2016 Amortized Gross Gross Fair Securities available for sale: U.S. agency and mortgage-backed securities $ 83,151 $ 694 $ (205 ) $ 83,640 Obligations of states and political subdivisions 15,029 355 (16 ) 15,368 Corporate equity securities 1 10 — 11 Total securities available for sale $ 98,181 $ 1,059 $ (221 ) $ 99,019 Securities held to maturity: U.S. agency and mortgage-backed securities $ 48,126 $ 308 $ (53 ) $ 48,381 Obligations of states and political subdivisions 15,337 316 (4 ) 15,649 Corporate debt securities 1,500 38 — 1,538 Total securities held to maturity $ 64,963 $ 662 $ (57 ) $ 65,568 Total securities $ 163,144 $ 1,721 $ (278 ) $ 164,587 December 31, 2015 Amortized Gross Gross Fair Securities available for sale: U.S. agency and mortgage-backed securities $ 89,919 $ 261 $ (843 ) $ 89,337 Obligations of states and political subdivisions 15,931 333 (50 ) 16,214 Corporate equity securities 1 7 — 8 Total securities available for sale $ 105,851 $ 601 $ (893 ) $ 105,559 Securities held to maturity: U.S. agency and mortgage-backed securities $ 49,662 $ 36 $ (326 ) $ 49,372 Obligations of states and political subdivisions 15,357 228 (19 ) 15,566 Corporate debt securities 1,500 — — 1,500 Total securities held to maturity $ 66,519 $ 264 $ (345 ) $ 66,438 Total securities $ 172,370 $ 865 $ (1,238 ) $ 171,997 |
Summary of Investments in an Unrealized Loss Position that were Temporarily Impaired | At March 31, 2016 and December 31, 2015, investments in an unrealized loss position that were temporarily impaired were as follows (in thousands): March 31, 2016 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value (Loss) Fair Value (Loss) Fair Value (Loss) Securities available for sale: U.S. agency and mortgage-backed securities $ 12,958 $ (36 ) $ 11,779 $ (169 ) $ 24,737 $ (205 ) Obligations of states and political subdivisions 551 (1 ) 517 (15 ) 1,068 (16 ) Total securities available for sale $ 13,509 $ (37 ) $ 12,296 $ (184 ) $ 25,805 $ (221 ) Securities held to maturity: U.S. agency and mortgage-backed securities $ 8,935 $ (53 ) $ — $ — $ 8,935 $ (53 ) Obligations of states and political subdivisions 1,848 (4 ) — — 1,848 (4 ) Total securities held to maturity $ 10,783 $ (57 ) $ — $ — $ 10,783 $ (57 ) Total securities $ 24,292 $ (94 ) $ 12,296 $ (184 ) $ 36,588 $ (278 ) December 31, 2015 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value (Loss) Fair Value (Loss) Fair Value (Loss) Securities available for sale: U.S. agency and mortgage-backed securities $ 50,185 $ (464 ) $ 13,409 $ (379 ) $ 63,594 $ (843 ) Obligations of states and political subdivisions 2,395 (15 ) 1,053 (35 ) 3,448 (50 ) Total securities available for sale $ 52,580 $ (479 ) $ 14,462 $ (414 ) $ 67,042 $ (893 ) Securities held to maturity: U.S. agency and mortgage-backed securities $ 32,791 $ (326 ) $ — $ — $ 32,791 $ (326 ) Obligations of states and political subdivisions 3,052 (19 ) — — 3,052 (19 ) Total securities held to maturity $ 35,843 $ (345 ) $ — $ — $ 35,843 $ (345 ) Total securities $ 88,423 $ (824 ) $ 14,462 $ (414 ) $ 102,885 $ (1,238 ) |
Amortized Cost and Fair Value of Securities | The amortized cost and fair value of securities available for sale at March 31, 2016 by contractual maturity are shown below (in thousands). Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. Corporate equity securities are not included in the maturity categories in the following maturity summary because they do not have a stated maturity date. Available for Sale Held to Maturity Amortized Fair Amortized Fair Cost Value Cost Value Due within one year $ 375 $ 376 $ — $ — Due after one year through five years 9,661 9,737 631 638 Due after five years through ten years 13,684 13,931 19,490 19,786 Due after ten years 74,460 74,964 44,842 45,144 Corporate equity securities 1 11 — — $ 98,181 $ 99,019 $ 64,963 $ 65,568 |
Composition of Restricted Securities | The composition of restricted securities at March 31, 2016 and December 31, 2015 was as follows (in thousands): March 31, December 31, Federal Home Loan Bank stock $ 623 $ 466 Federal Reserve Bank stock 875 875 Community Bankers’ Bank stock 50 50 $ 1,548 $ 1,391 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Summary of Loans | Loans at March 31, 2016 and December 31, 2015 are summarized as follows (in thousands): March 31, December 31, Real estate loans: Construction and land development $ 31,505 $ 33,135 Secured by 1-4 family residential 196,165 189,286 Other real estate loans 191,306 181,447 Commercial and industrial loans 24,215 24,048 Consumer and other loans 10,885 11,083 Total loans $ 454,076 $ 438,999 Allowance for loan losses (5,520 ) (5,524 ) Loans, net $ 448,556 $ 433,475 |
Summary of Loan Classes and an Aging of Past Due Loans | The following tables provide a summary of loan classes and an aging of past due loans as of March 31, 2016 and December 31, 2015 (in thousands): March 31, 2016 30-59 60-89 > 90 Total Current Total Non-accrual 90 Days Real estate loans: Construction and land development $ 55 $ 101 $ 32 $ 188 $ 31,317 $ 31,505 $ 1,333 $ 32 1-4 family residential 709 154 295 1,158 195,007 196,165 375 — Other real estate loans 167 714 125 1,006 190,300 191,306 2,461 — Commercial and industrial 170 — 92 262 23,953 24,215 89 92 Consumer and other loans 15 — — 15 10,870 10,885 — — Total $ 1,116 $ 969 $ 544 $ 2,629 $ 451,447 $ 454,076 $ 4,258 $ 124 December 31, 2015 30-59 60-89 > 90 Total Current Total Non-accrual 90 Days Real estate loans: Construction and land development $ — $ — $ — $ — $ 33,135 $ 33,135 $ 1,269 $ — 1-4 family residential 635 18 264 917 188,369 189,286 346 — Other real estate loans 387 358 790 1,535 179,912 181,447 2,145 — Commercial and industrial — — 92 92 23,956 24,048 94 92 Consumer and other loans 20 — — 20 11,063 11,083 — — Total $ 1,042 $ 376 $ 1,146 $ 2,564 $ 436,435 $ 438,999 $ 3,854 $ 92 |
Analysis of the Credit Risk Profile of Each Loan Class | The following tables provide an analysis of the credit risk profile of each loan class as of March 31, 2016 and December 31, 2015 (in thousands): March 31, 2016 Pass Special Substandard Doubtful Total Real estate loans: Construction and land development $ 25,288 $ 2,139 $ 4,078 $ — $ 31,505 Secured by 1-4 family residential 190,069 2,843 3,253 — 196,165 Other real estate loans 176,371 8,393 6,542 — 191,306 Commercial and industrial 23,538 421 256 — 24,215 Consumer and other loans 10,885 — — — 10,885 Total $ 426,151 $ 13,796 $ 14,129 $ — $ 454,076 December 31, 2015 Pass Special Substandard Doubtful Total Real estate loans: Construction and land development $ 26,371 $ 2,587 $ 4,177 $ — $ 33,135 Secured by 1-4 family residential 182,595 3,376 3,315 — 189,286 Other real estate loans 165,310 9,977 6,160 — 181,447 Commercial and industrial 23,351 432 265 — 24,048 Consumer and other loans 11,083 — — — 11,083 Total $ 408,710 $ 16,372 $ 13,917 $ — $ 438,999 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Allowance by Impairment Methodology and Loans by Impairment Methodology | The following tables present, as of March 31, 2016, December 31, 2015 and March 31, 2015, the total allowance for loan losses, the allowance by impairment methodology and loans by impairment methodology (in thousands): March 31, 2016 Construction Secured by Other Real Commercial Consumer Total Allowance for loan losses: Beginning Balance, December 31, 2015 $ 1,532 $ 939 $ 2,534 $ 306 $ 213 $ 5,524 Charge-offs — (2 ) — — (118 ) (120 ) Recoveries 1 9 — 3 103 116 Provision for (recovery of) loan losses (163 ) 38 117 (12 ) 20 — Ending Balance, March 31, 2016 $ 1,370 $ 984 $ 2,651 $ 297 $ 218 $ 5,520 Ending Balance: Individually evaluated for impairment 222 22 190 — — 434 Collectively evaluated for impairment 1,148 962 2,461 297 218 5,086 Loans: Ending Balance 31,505 196,165 191,306 24,215 10,885 454,076 Individually evaluated for impairment 2,675 2,062 2,990 89 — 7,816 Collectively evaluated for impairment 28,830 194,103 188,316 24,126 10,885 446,260 December 31, 2015 Construction Secured by Other Real Commercial Consumer Total Allowance for loan losses: Beginning Balance, December 31, 2014 $ 1,403 $ 1,204 $ 3,658 $ 310 $ 143 $ 6,718 Charge-offs — (142 ) (1,125 ) (59 ) (512 ) (1,838 ) Recoveries 4 373 2 72 293 744 Provision for (recovery of) loan losses 125 (496 ) (1 ) (17 ) 289 (100 ) Ending Balance, December 31, 2015 $ 1,532 $ 939 $ 2,534 $ 306 $ 213 $ 5,524 Ending Balance: Individually evaluated for impairment 326 23 195 — — 544 Collectively evaluated for impairment 1,206 916 2,339 306 213 4,980 Loans: Ending Balance 33,135 189,286 181,447 24,048 11,083 438,999 Individually evaluated for impairment 2,544 2,044 3,023 94 — 7,705 Collectively evaluated for impairment 30,591 187,242 178,424 23,954 11,083 431,294 March 31, 2015 Construction Secured by Other Real Commercial Consumer Total Allowance for loan losses: Beginning Balance, December 31, 2014 $ 1,403 $ 1,204 $ 3,658 $ 310 $ 143 $ 6,718 Charge-offs — (47 ) — — (65 ) (112 ) Recoveries 1 34 1 60 69 165 Provision for (recovery of) loan losses 197 (239 ) 137 (82 ) (13 ) — Ending Balance, March 31, 2015 $ 1,601 $ 952 $ 3,796 $ 288 $ 134 $ 6,771 Ending Balance: Individually evaluated for impairment 341 85 1,447 28 — 1,901 Collectively evaluated for impairment 1,260 867 2,349 260 134 4,870 Loans: Ending Balance 33,344 172,874 158,896 21,420 11,983 398,517 Individually evaluated for impairment 3,071 2,747 7,103 113 — 13,034 Collectively evaluated for impairment 30,273 170,127 151,793 21,307 11,983 385,483 |
Impaired Loans and Related Allowance | Impaired loans and the related allowance at March 31, 2016, December 31, 2015 and March 31, 2015, were as follows (in thousands): March 31, 2016 Unpaid Recorded Recorded Total Related Average Interest Real estate loans: Construction and land development $ 2,897 $ 2,253 $ 422 $ 2,675 $ 222 $ 2,593 $ 16 Secured by 1-4 family 2,136 2,040 22 2,062 22 2,059 24 Other real estate loans 3,549 2,436 554 2,990 190 3,069 8 Commercial and industrial 104 89 — 89 — 92 — Consumer and other loans — — — — — — — Total $ 8,686 $ 6,818 $ 998 $ 7,816 $ 434 $ 7,813 $ 48 December 31, 2015 Unpaid Recorded Recorded Total Related Average Interest Real estate loans: Construction and land development $ 2,741 $ 2,206 $ 338 $ 2,544 $ 326 $ 2,967 $ 60 Secured by 1-4 family 2,116 2,021 23 2,044 23 2,526 107 Other real estate loans 3,492 2,463 560 3,023 195 4,933 58 Commercial and industrial 107 94 — 94 — 118 — Consumer and other loans — — — — — — — Total $ 8,456 $ 6,784 $ 921 $ 7,705 $ 544 $ 10,544 $ 225 March 31, 2015 Unpaid Recorded Recorded Total Related Average Interest Real estate loans: Construction and land development $ 3,198 $ 2,196 $ 875 $ 3,071 $ 341 $ 3,171 $ 16 Secured by 1-4 family 3,672 2,509 238 2,747 85 3,149 29 Other real estate loans 7,559 4,119 2,984 7,103 1,447 7,149 34 Commercial and industrial 122 3 110 113 28 118 — Consumer and other loans — — — — — — — Total $ 14,551 $ 8,827 $ 4,207 $ 13,034 $ 1,901 $ 13,587 $ 79 |
Other Real Estate Owned (OREO)
Other Real Estate Owned (OREO) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Summary of Changes in the Balance for OREO | Changes in the balance for OREO are as follows (in thousands): For the three For the year Balance at the beginning of year, gross $ 2,903 $ 2,263 Transfers in 37 1,664 Charge-offs (70 ) (381 ) Sales proceeds (698 ) (717 ) Gain on disposition 94 74 Balance at the end of period, gross $ 2,266 $ 2,903 Less: valuation allowance (154 ) (224 ) Balance at the end of period, net $ 2,112 $ 2,679 |
Summary of Changes in the Valuation Allowance | Changes in the valuation allowance are as follows (in thousands): For the three months ended For the year March 31, March 31, December 31, 2016 2015 2015 Balance at beginning of year $ 224 $ 375 $ 375 Provision for losses — — 230 Charge-offs, net (70 ) (250 ) (381 ) Balance at end of period $ 154 $ 125 $ 224 |
Capital Requirements (Tables)
Capital Requirements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Comparison of Capital of Company and Bank with Minimum Regulatory Guidelines | A comparison of the capital of the Bank at March 31, 2016 and December 31, 2015 with the minimum regulatory guidelines were as follows (dollars in thousands): Actual Minimum Capital Minimum Amount Ratio Amount Ratio Amount Ratio March 31, 2016: Total Capital (to Risk-Weighted Assets) $ 62,440 13.50 % $ 37,006 8.00 % $ 46,258 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 56,920 12.30 % $ 27,755 6.00 % $ 37,006 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 56,920 12.30 % $ 20,816 4.50 % $ 30,068 6.50 % Tier 1 Capital (to Average Assets) $ 56,920 8.22 % $ 27,693 4.00 % $ 34,617 5.00 % December 31, 2015: Total Capital (to Risk-Weighted Assets) $ 61,513 13.86 % $ 35,497 8.00 % $ 44,372 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 55,989 12.62 % $ 26,623 6.00 % $ 35,497 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 55,989 12.62 % $ 19,967 4.50 % $ 28,842 6.50 % Tier 1 Capital (to Average Assets) $ 55,989 8.12 % $ 27,571 4.00 % $ 34,464 5.00 % |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | Components of the net periodic benefit cost of the plan for the three months ended March 31, 2016 and 2015 were as follows (in thousands): For the three months 2016 2015 Service cost $ 102 $ 111 Interest cost 83 76 Expected return on plan assets (74 ) (79 ) Amortization of net loss 21 22 Net periodic benefit cost $ 132 $ 130 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table presents the computation of basic and diluted earnings per share for the three months ended March 31, 2016 and 2015 (dollars in thousands, except per share data): For the three months ended March 31, March 31, 2016 2015 (Numerator): Net income $ 1,099 $ 544 Effective dividend on preferred stock — 329 Net income available to common shareholders $ 1,099 $ 215 (Denominator): Weighted average shares outstanding – basic 4,920,315 4,906,981 Potentially dilutive common shares – restricted stock units 2,802 4,063 Weighted average shares outstanding – diluted 4,923,117 4,911,044 Income per common share Basic $ 0.22 $ 0.04 Diluted $ 0.22 $ 0.04 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Balances of Assets Measured at Fair Value on a Recurring Basis | The following tables present the balances of assets measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015 (in thousands). Fair Value Measurements at March 31, 2016 Description Balance as of Quoted Significant Significant Securities available for sale U.S. agency and mortgage-backed securities $ 83,640 $ — $ 83,640 $ — Obligations of states and political subdivisions 15,368 — 15,368 — Corporate equity securities 11 11 — — $ 99,019 $ 11 $ 99,008 $ — Fair Value Measurements at December 31, 2015 Description Balance as of Quoted Significant Significant Securities available for sale U.S. agency and mortgage-backed securities $ 89,337 $ — $ 89,337 $ — Obligations of states and political subdivisions 16,214 — 16,214 — Corporate equity securities 8 8 — — $ 105,559 $ 8 $ 105,551 $ — |
Summary of Assets Measured at Fair Value on a Nonrecurring Basis | The following tables summarize the Company’s assets that were measured at fair value on a nonrecurring basis during the periods (dollars in thousands): Fair Value Measurements at March 31, 2016 Description Balance as of Quoted Significant Significant Impaired loans, net $ 564 $ — $ — $ 564 Other real estate owned, net 2,112 — — 2,112 Fair Value Measurements at December 31, 2015 Description Balance as of Quoted Significant Significant Impaired loans, net $ 377 $ — $ — $ 377 Other real estate owned, net 2,679 — — 2,679 |
Quantitative Information about Level 3 Fair Value Measurements | Quantitative information about Level 3 Fair Value Measurements for March 31, 2016 Fair Value Valuation Technique Unobservable Input Range(Weighted- Impaired loans, net $ 564 Property appraisals Selling cost 1-10% (4%) Other real estate owned, net $ 2,112 Property appraisals Selling cost 7% Quantitative information about Level 3 Fair Value Measurements for December 31, 2015 Fair Value Valuation Technique Unobservable Input Range(Weighted- Impaired loans, net $ 377 Property appraisals Selling cost 2-10% (5%) Other real estate owned, net $ 2,679 Property appraisals Selling cost 7% |
Carrying Values and Estimated Fair Values of Company's Financial Instruments | The carrying values and estimated fair values of the Company’s financial instruments at March 31, 2016 and December 31, 2015 are as follows (in thousands): Fair Value Measurements at March 31, 2016 Using Carrying Quoted Significant Significant Fair Value Financial Assets Cash and short-term investments $ 39,327 $ 39,327 $ — $ — $ 39,327 Securities available for sale 99,019 11 99,008 — 99,019 Securities held to maturity 64,963 — 64,030 1,538 65,568 Restricted securities 1,548 — 1,548 — 1,548 Loans held for sale 523 — 523 — 523 Loans, net 448,556 — — 456,263 456,263 Bank owned life insurance 13,828 — 13,828 — 13,828 Accrued interest receivable 1,741 — 1,741 — 1,741 Financial Liabilities Deposits $ 633,118 $ — $ 496,382 $ 136,654 $ 633,036 Subordinated debt 4,917 — — 5,001 5,001 Junior subordinated debt 9,279 — — 8,578 8,578 Accrued interest payable 111 — 111 — 111 Fair Value Measurements at December 31, 2015 Using Carrying Quoted Significant Significant Fair Value Financial Assets Cash and short-term investments $ 39,334 $ 39,334 $ — $ — $ 39,334 Securities available for sale 105,559 8 105,551 — 105,559 Securities held to maturity 66,519 — 64,938 1,500 66,438 Restricted securities 1,391 — 1,391 — 1,391 Loans held for sale 323 — 323 — 323 Loans, net 433,475 — — 438,392 438,392 Bank owned life insurance 11,742 — 11,742 — 11,742 Accrued interest receivable 1,661 — 1,661 — 1,661 Financial Liabilities Deposits $ 627,116 $ — $ 486,015 $ 140,306 $ 626,321 Subordinated debt 4,913 — — 4,913 4,913 Junior subordinated debt 9,279 — — 8,141 8,141 Accrued interest payable 117 — 117 — 117 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Restricted Stock Units | A summary of the activity for the Company’s restricted stock units for the period indicated is presented in the following table: March 31, 2016 Shares Weighted Unvested, beginning of period 8,353 $ 9.00 Granted 9,130 8.80 Vested (7,224 ) 8.92 Forfeited — — Unvested, end of period 10,259 $ 8.88 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of Changes in Component of Accumulated Other Comprehensive Loss | Changes in each component of accumulated other comprehensive loss were as follows (in thousands): Net Adjustments Accumulated Balance at December 31, 2014 $ (133 ) $ (1,421 ) $ (1,554 ) Unrealized holding gains (net of tax, $294) 570 — 570 Reclassification adjustment (net of tax, ($18)) 34 — 34 Change during period 604 — 604 Balance at March 31, 2015 $ 471 $ (1,421 ) $ (950 ) Balance at December 31, 2015 $ (192 ) $ (1,396 ) $ (1,588 ) Unrealized holding gains (net of tax, $387) 749 — 749 Reclassification adjustment (net of tax, $2) (4 ) — (4 ) Change during period 745 — 745 Balance at March 31, 2016 $ 553 $ (1,396 ) $ (843 ) |
Reclassifications from Accumulated Other Comprehensive Loss | The following tables present information related to reclassifications from accumulated other comprehensive loss for the three month periods ended March 31, 2016 and 2015 (in thousands): Details About Accumulated Other Comprehensive Loss Amount Reclassified from Affected Line Item in the Consolidated Statements of Income For the three months 2016 2015 Securities available for sale: Net securities (gains) losses reclassified into earnings $ (6 ) $ 52 Net gains (losses) on calls and sales of securities available for sale Related income tax expense (benefit) 2 (18 ) Income tax expense Total reclassifications $ (4 ) $ 34 Net of tax |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Preliminary Assessment of Consideration Transferred, Assets Purchased and Liabilities Assumed | The following table provides a preliminary assessment of the consideration transferred, assets purchased, and the liabilities assumed (in thousands): As Recorded Fair Value and As Recorded Consideration paid: Cash paid $ 6,618 Total consideration $ 6,618 Assets acquired: Cash and cash equivalents $ 186,119 $ — $ 186,119 Premises and equipment, net 2,165 2,330 4,495 Other assets 114 — 114 Core deposit intangibles — 2,910 2,910 Total assets acquired $ 188,398 $ 5,240 $ 193,638 Liabilities assumed: Deposits $ 186,119 $ 683 $ 186,802 Other liabilities 17 — 17 Total liabilities assumed $ 186,136 $ 683 $ 186,819 Net identifiable assets acquired over liabilities assumed $ 2,262 $ 4,557 $ 6,819 Goodwill (bargain purchase gain) $ (201 ) |
Securities - Summary of Amortiz
Securities - Summary of Amortized Costs and Fair Values of Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Available-for-sale Securities, Debt and Equity, Amortized Cost Basis, Total | $ 98,181 | $ 105,851 | |
Securities available for sale, Gross Unrealized Gains | 1,059 | 601 | |
Securities available for sale, Gross Unrealized (Losses) | (221) | (893) | |
Securities available for sale, Fair Value | 99,019 | 105,559 | [1] |
Securities held to maturity, Amortized Cost | 64,963 | 66,519 | |
Securities held to maturity, Gross Unrealized Gains | 662 | 264 | |
Securities held to maturity, Gross Unrealized (Losses) | (57) | (345) | |
Securities held to maturity, Fair Value | 65,568 | 66,438 | [1] |
Total securities, Amortized Cost | 163,144 | 172,370 | |
Total securities, Gross Unrealized Gains | 1,721 | 865 | |
Total securities, Gross Unrealized (Losses) | (278) | (1,238) | |
Total securities, Fair Value | 164,587 | 171,997 | |
U.S. Agency and Mortgage-Backed Securities [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Available-for-sale Securities, Debt and Equity, Amortized Cost Basis, Total | 83,151 | 89,919 | |
Securities available for sale, Gross Unrealized Gains | 694 | 261 | |
Securities available for sale, Gross Unrealized (Losses) | (205) | (843) | |
Securities available for sale, Fair Value | 83,640 | 89,337 | |
Securities held to maturity, Amortized Cost | 48,126 | 49,662 | |
Securities held to maturity, Gross Unrealized Gains | 308 | 36 | |
Securities held to maturity, Gross Unrealized (Losses) | (53) | (326) | |
Securities held to maturity, Fair Value | 48,381 | 49,372 | |
Obligations of States and Political Subdivisions [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Available-for-sale Securities, Debt and Equity, Amortized Cost Basis, Total | 15,029 | 15,931 | |
Securities available for sale, Gross Unrealized Gains | 355 | 333 | |
Securities available for sale, Gross Unrealized (Losses) | (16) | (50) | |
Securities available for sale, Fair Value | 15,368 | 16,214 | |
Securities held to maturity, Amortized Cost | 15,337 | 15,357 | |
Securities held to maturity, Gross Unrealized Gains | 316 | 228 | |
Securities held to maturity, Gross Unrealized (Losses) | (4) | (19) | |
Securities held to maturity, Fair Value | 15,649 | 15,566 | |
Corporate Equity Securities [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Available-for-sale Securities, Debt and Equity, Amortized Cost Basis, Total | 1 | 1 | |
Securities available for sale, Gross Unrealized Gains | 10 | 7 | |
Securities available for sale, Fair Value | 11 | 8 | |
Corporate Debt Securities [Member] | |||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | |||
Securities held to maturity, Amortized Cost | 1,500 | 1,500 | |
Securities held to maturity, Gross Unrealized Gains | 38 | ||
Securities held to maturity, Fair Value | $ 1,538 | $ 1,500 | |
[1] | Derived from audited consolidated financial statements. |
Securities - Summary of Investm
Securities - Summary of Investments in an Unrealized Loss Position that were Temporarily Impaired (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Less than 12 months - Fair Value | $ 13,509 | $ 52,580 |
Securities available for sale, 12 months or more - Fair Value | 12,296 | 14,462 |
Securities available for sale, Total - Fair Value | 25,805 | 67,042 |
Securities available for sale, Less than 12 months - Unrealized (Loss) | (37) | (479) |
Securities available for sale, 12 months or more - Unrealized (Loss) | (184) | (414) |
Total Unrealized (Loss) | (221) | (893) |
Securities held to maturity, Less than 12 months - Fair Value | 10,783 | 35,843 |
Securities held to maturity, 12 months or more - Fair Value | 0 | 0 |
Securities held to maturity, Total - Fair Value | 10,783 | 35,843 |
Securities held to maturity, Less than 12 months - Unrealized (Loss) | (57) | (345) |
Securities held to maturity, 12 months or more - Unrealized (Loss) | 0 | 0 |
Total Unrealized (Loss) | (57) | (345) |
Total securities, Less than 12 months - Fair Value | 24,292 | 88,423 |
Total securities, 12 months or more - Fair Value | 12,296 | 14,462 |
Total securities, Total - Fair Value | 36,588 | 102,885 |
Total securities, Less than 12 months - Unrealized (Loss) | (94) | (824) |
Total securities, 12 months or more - Unrealized (Loss) | (184) | (414) |
Total Unrealized (Loss) | (278) | (1,238) |
U.S. Agency and Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Less than 12 months - Fair Value | 12,958 | 50,185 |
Securities available for sale, 12 months or more - Fair Value | 11,779 | 13,409 |
Securities available for sale, Total - Fair Value | 24,737 | 63,594 |
Securities available for sale, Less than 12 months - Unrealized (Loss) | (36) | (464) |
Securities available for sale, 12 months or more - Unrealized (Loss) | (169) | (379) |
Total Unrealized (Loss) | (205) | (843) |
Securities held to maturity, Less than 12 months - Fair Value | 8,935 | 32,791 |
Securities held to maturity, 12 months or more - Fair Value | 0 | 0 |
Securities held to maturity, Total - Fair Value | 8,935 | 32,791 |
Securities held to maturity, Less than 12 months - Unrealized (Loss) | (53) | (326) |
Securities held to maturity, 12 months or more - Unrealized (Loss) | 0 | 0 |
Total Unrealized (Loss) | (53) | (326) |
Obligations of States and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Less than 12 months - Fair Value | 551 | 2,395 |
Securities available for sale, 12 months or more - Fair Value | 517 | 1,053 |
Securities available for sale, Total - Fair Value | 1,068 | 3,448 |
Securities available for sale, Less than 12 months - Unrealized (Loss) | (1) | (15) |
Securities available for sale, 12 months or more - Unrealized (Loss) | (15) | (35) |
Total Unrealized (Loss) | (16) | (50) |
Securities held to maturity, Less than 12 months - Fair Value | 1,848 | 3,052 |
Securities held to maturity, 12 months or more - Fair Value | 0 | 0 |
Securities held to maturity, Total - Fair Value | 1,848 | 3,052 |
Securities held to maturity, Less than 12 months - Unrealized (Loss) | (4) | (19) |
Securities held to maturity, 12 months or more - Unrealized (Loss) | 0 | 0 |
Total Unrealized (Loss) | $ (4) | $ (19) |
Securities - Additional Informa
Securities - Additional Information (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016USD ($)SecuritiesObligation | Dec. 31, 2015SecuritiesObligation | |
Amortized Cost and Fair Value Debt Securities [Abstract] | ||
Number of U.S. agency and mortgage-backed securities | Securities | 21 | 52 |
Number of obligations of state and political subdivisions in an unrealized loss position | Obligation | 6 | 13 |
Percentage of investment portfolio | 100.00% | 100.00% |
Weighted-average period of re-pricing of portfolio | 4 years 2 months 12 days | 4 years 7 months 6 days |
Impairment recognized | $ | $ 0 |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value of Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Amortized Cost and Fair Value Debt Securities [Abstract] | |||
Due within one year, Available for Sale Amortized Cost | $ 375 | ||
Due after one year through five years, Available for Sale Amortized Cost | 9,661 | ||
Due after five years through ten years, Available for Sale Amortized Cost | 13,684 | ||
Due after ten years, Available for Sale Amortized Cost | 74,460 | ||
Corporate equity securities, Available for Sale Amortized Cost | 1 | ||
Available-for-sale Securities, Debt and Equity, Amortized Cost Basis, Total | 98,181 | $ 105,851 | |
Due within one year, Available for Sale Fair Value | 376 | ||
Due after one year through five years, Available for Sale Fair Value | 9,737 | ||
Due after five years through ten years, Available for Sale Fair Value | 13,931 | ||
Due after ten years, Available for Sale Fair Value | 74,964 | ||
Corporate equity securities, Available for Sale Fair Value | 11 | ||
Available for Sale Securities, Debt and Equity, Fair Value, Total | 99,019 | 105,559 | [1] |
Due within one year, Held to Maturity Amortized Cost | 0 | ||
Due after one year through five years, Held to Maturity Amortized Cost | 631 | ||
Due after five years through ten years, Held to Maturity Amortized Cost | 19,490 | ||
Due after ten years, Held to Maturity Amortized Cost | 44,842 | ||
Corporate equity securities, Held to Maturity Amortized Cost | 0 | ||
Held to Maturity Amortized Cost, Total | 64,963 | 66,519 | [1] |
Due within one year, Held to Maturity Fair Value | 0 | ||
Due after one year through five years, Held to Maturity Fair Value | 638 | ||
Due after five years through ten years, Held to Maturity Fair Value | 19,786 | ||
Due after ten years, Held to Maturity Fair Value | 45,144 | ||
Corporate equity securities, Held to Maturity Fair Value | 0 | ||
Held to Maturity Fair Value, Total | $ 65,568 | $ 66,438 | [1] |
[1] | Derived from audited consolidated financial statements. |
Securities - Composition of Res
Securities - Composition of Restricted Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Federal Home Loan Bank Stock and Federal Reserve Bank Stock [Abstract] | |||
Federal Home Loan Bank stock | $ 623 | $ 466 | |
Federal Reserve Bank stock | 875 | 875 | |
Community Bankers' Bank stock | 50 | 50 | |
Total Restricted Securities | $ 1,548 | $ 1,391 | [1] |
[1] | Derived from audited consolidated financial statements. |
Loans - Summary of Loans (Detai
Loans - Summary of Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Real estate loans: | |||||
Commercial and industrial loans | $ 24,215 | $ 24,048 | |||
Consumer and other loans | 10,885 | 11,083 | |||
Loans | 454,076 | 438,999 | $ 398,517 | ||
Allowance for loan losses | (5,520) | (5,524) | [1] | (6,771) | $ (6,718) |
Loans, net | 448,556 | 433,475 | [1] | ||
Construction and Land Development [Member] | |||||
Real estate loans: | |||||
Loans | 31,505 | 33,135 | 33,344 | ||
Allowance for loan losses | (1,370) | (1,532) | (1,601) | (1,403) | |
Secured by 1-4 Family Residential [Member] | |||||
Real estate loans: | |||||
Loans | 196,165 | 189,286 | 172,874 | ||
Allowance for loan losses | (984) | (939) | $ (952) | $ (1,204) | |
Other Real Estate Loans [Member] | |||||
Real estate loans: | |||||
Loans | $ 191,306 | $ 181,447 | |||
[1] | Derived from audited consolidated financial statements. |
Loans - Additional Information
Loans - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | |||
Net deferred loan fees | $ 2 | $ 54 | |
Total loans | 454,076 | 438,999 | $ 398,517 |
Consumer and Other Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 10,885 | 11,083 | $ 11,983 |
Consumer and Other Loans [Member] | Demand Deposit Overdrafts [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 312 | $ 257 |
Loans - Summary of Loan Classes
Loans - Summary of Loan Classes and an Aging of Past Due Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | $ 2,629 | $ 2,564 | |
Current | 451,447 | 436,435 | |
Total loans | 454,076 | 438,999 | $ 398,517 |
Non- Accrual Loans | 4,258 | 3,854 | |
90 Days or More Past Due and Accruing | 124 | 92 | |
Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | 188 | ||
Current | 31,317 | 33,135 | |
Total loans | 31,505 | 33,135 | 33,344 |
Non- Accrual Loans | 1,333 | 1,269 | |
90 Days or More Past Due and Accruing | 32 | ||
Secured by 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | 1,158 | 917 | |
Current | 195,007 | 188,369 | |
Total loans | 196,165 | 189,286 | 172,874 |
Non- Accrual Loans | 375 | 346 | |
Other Real Estate Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | 1,006 | 1,535 | |
Current | 190,300 | 179,912 | |
Total loans | 191,306 | 181,447 | |
Non- Accrual Loans | 2,461 | 2,145 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | 262 | 92 | |
Current | 23,953 | 23,956 | |
Total loans | 24,215 | 24,048 | 21,420 |
Non- Accrual Loans | 89 | 94 | |
90 Days or More Past Due and Accruing | 92 | 92 | |
Consumer and Other Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | 15 | 20 | |
Current | 10,870 | 11,063 | |
Total loans | 10,885 | 11,083 | $ 11,983 |
30 - 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | 1,116 | 1,042 | |
30 - 59 Days Past Due [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | 55 | ||
30 - 59 Days Past Due [Member] | Secured by 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | 709 | 635 | |
30 - 59 Days Past Due [Member] | Other Real Estate Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | 167 | 387 | |
30 - 59 Days Past Due [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | 170 | ||
30 - 59 Days Past Due [Member] | Consumer and Other Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | 15 | 20 | |
60 - 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | 969 | 376 | |
60 - 89 Days Past Due [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | 101 | ||
60 - 89 Days Past Due [Member] | Secured by 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | 154 | 18 | |
60 - 89 Days Past Due [Member] | Other Real Estate Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | 714 | 358 | |
> 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | 544 | 1,146 | |
> 90 Days Past Due [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | 32 | ||
> 90 Days Past Due [Member] | Secured by 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | 295 | 264 | |
> 90 Days Past Due [Member] | Other Real Estate Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | 125 | 790 | |
> 90 Days Past Due [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Past Due | $ 92 | $ 92 |
Loans - Analysis of the Credit
Loans - Analysis of the Credit Risk Profile of Each Loan Class (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total | $ 454,076 | $ 438,999 | $ 398,517 |
Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 31,505 | 33,135 | 33,344 |
Secured by 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 196,165 | 189,286 | 172,874 |
Other Real Estate Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 191,306 | 181,447 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 24,215 | 24,048 | 21,420 |
Consumer and Other Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 10,885 | 11,083 | $ 11,983 |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 426,151 | 408,710 | |
Pass [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 25,288 | 26,371 | |
Pass [Member] | Secured by 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 190,069 | 182,595 | |
Pass [Member] | Other Real Estate Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 176,371 | 165,310 | |
Pass [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 23,538 | 23,351 | |
Pass [Member] | Consumer and Other Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 10,885 | 11,083 | |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 13,796 | 16,372 | |
Special Mention [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 2,139 | 2,587 | |
Special Mention [Member] | Secured by 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 2,843 | 3,376 | |
Special Mention [Member] | Other Real Estate Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 8,393 | 9,977 | |
Special Mention [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 421 | 432 | |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 14,129 | 13,917 | |
Substandard [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 4,078 | 4,177 | |
Substandard [Member] | Secured by 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 3,253 | 3,315 | |
Substandard [Member] | Other Real Estate Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 6,542 | 6,160 | |
Substandard [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | $ 256 | $ 265 |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance by Impairment Methodology and Loans by Impairment Methodology (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |||
Allowance for loan losses: | |||||
Beginning Balance | $ 5,524 | [1] | $ 6,718 | $ 6,718 | |
Charge-offs | (120) | (112) | (1,838) | ||
Recoveries | 116 | 165 | 744 | ||
Provision for (recovery of) loan losses | 0 | 0 | (100) | ||
Ending Balance | 5,520 | 6,771 | 5,524 | [1] | |
Ending Balance: | |||||
Allowance for loan losses, Individually evaluated for impairment | 434 | 1,901 | 544 | ||
Allowance for loan losses, Collectively evaluated for impairment | 5,086 | 4,870 | 4,980 | ||
Loans: | |||||
Ending Balance | 454,076 | 398,517 | 438,999 | ||
Loans, Individually evaluated for impairment | 7,816 | 13,034 | 7,705 | ||
Loans, Collectively evaluated for impairment | 446,260 | 385,483 | 431,294 | ||
Construction and Land Development [Member] | |||||
Allowance for loan losses: | |||||
Beginning Balance | 1,532 | 1,403 | 1,403 | ||
Recoveries | 1 | 1 | 4 | ||
Provision for (recovery of) loan losses | 163 | 197 | 125 | ||
Ending Balance | 1,370 | 1,601 | 1,532 | ||
Ending Balance: | |||||
Allowance for loan losses, Individually evaluated for impairment | 222 | 341 | 326 | ||
Allowance for loan losses, Collectively evaluated for impairment | 1,148 | 1,260 | 1,206 | ||
Loans: | |||||
Ending Balance | 31,505 | 33,344 | 33,135 | ||
Loans, Individually evaluated for impairment | 2,675 | 3,071 | 2,544 | ||
Loans, Collectively evaluated for impairment | 28,830 | 30,273 | 30,591 | ||
Secured by 1-4 Family Residential [Member] | |||||
Allowance for loan losses: | |||||
Beginning Balance | 939 | 1,204 | 1,204 | ||
Charge-offs | (2) | (47) | (142) | ||
Recoveries | 9 | 34 | 373 | ||
Provision for (recovery of) loan losses | (38) | (239) | (496) | ||
Ending Balance | 984 | 952 | 939 | ||
Ending Balance: | |||||
Allowance for loan losses, Individually evaluated for impairment | 22 | 85 | 23 | ||
Allowance for loan losses, Collectively evaluated for impairment | 962 | 867 | 916 | ||
Loans: | |||||
Ending Balance | 196,165 | 172,874 | 189,286 | ||
Loans, Individually evaluated for impairment | 2,062 | 2,747 | 2,044 | ||
Loans, Collectively evaluated for impairment | 194,103 | 170,127 | 187,242 | ||
Other Real Estate [Member] | |||||
Allowance for loan losses: | |||||
Beginning Balance | 2,534 | 3,658 | 3,658 | ||
Charge-offs | (1,125) | ||||
Recoveries | 1 | 2 | |||
Provision for (recovery of) loan losses | (117) | 137 | (1) | ||
Ending Balance | 2,651 | 3,796 | 2,534 | ||
Ending Balance: | |||||
Allowance for loan losses, Individually evaluated for impairment | 190 | 1,447 | 195 | ||
Allowance for loan losses, Collectively evaluated for impairment | 2,461 | 2,349 | 2,339 | ||
Loans: | |||||
Ending Balance | 191,306 | 158,896 | 181,447 | ||
Loans, Individually evaluated for impairment | 2,990 | 7,103 | 3,023 | ||
Loans, Collectively evaluated for impairment | 188,316 | 151,793 | 178,424 | ||
Commercial and Industrial [Member] | |||||
Allowance for loan losses: | |||||
Beginning Balance | 306 | 310 | 310 | ||
Charge-offs | (59) | ||||
Recoveries | 3 | 60 | 72 | ||
Provision for (recovery of) loan losses | 12 | (82) | (17) | ||
Ending Balance | 297 | 288 | 306 | ||
Ending Balance: | |||||
Allowance for loan losses, Individually evaluated for impairment | 28 | ||||
Allowance for loan losses, Collectively evaluated for impairment | 297 | 260 | 306 | ||
Loans: | |||||
Ending Balance | 24,215 | 21,420 | 24,048 | ||
Loans, Individually evaluated for impairment | 89 | 113 | 94 | ||
Loans, Collectively evaluated for impairment | 24,126 | 21,307 | 23,954 | ||
Consumer and Other Loans [Member] | |||||
Allowance for loan losses: | |||||
Beginning Balance | 213 | 143 | 143 | ||
Charge-offs | (118) | (65) | (512) | ||
Recoveries | 103 | 69 | 293 | ||
Provision for (recovery of) loan losses | (20) | (13) | 289 | ||
Ending Balance | 218 | 134 | 213 | ||
Ending Balance: | |||||
Allowance for loan losses, Collectively evaluated for impairment | 218 | 134 | 213 | ||
Loans: | |||||
Ending Balance | 10,885 | 11,983 | 11,083 | ||
Loans, Collectively evaluated for impairment | $ 10,885 | $ 11,983 | $ 11,083 | ||
[1] | Derived from audited consolidated financial statements. |
Allowance for Loan losses - Imp
Allowance for Loan losses - Impaired Loans and Related Allowance (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | $ 8,686 | $ 14,551 | $ 8,456 |
Recorded Investment with No Allowance | 6,818 | 8,827 | 6,784 |
Recorded Investment with Allowance | 998 | 4,207 | 921 |
Total Recorded Investment | 7,816 | 13,034 | 7,705 |
Related Allowance | 434 | 1,901 | 544 |
Average Recorded Investment | 7,813 | 13,587 | 10,544 |
Interest Income Recognized | 48 | 79 | 225 |
Construction and Land Development [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 2,897 | 3,198 | 2,741 |
Recorded Investment with No Allowance | 2,253 | 2,196 | 2,206 |
Recorded Investment with Allowance | 422 | 875 | 338 |
Total Recorded Investment | 2,675 | 3,071 | 2,544 |
Related Allowance | 222 | 341 | 326 |
Average Recorded Investment | 2,593 | 3,171 | 2,967 |
Interest Income Recognized | 16 | 16 | 60 |
Secured by 1-4 Family Residential [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 2,136 | 3,672 | 2,116 |
Recorded Investment with No Allowance | 2,040 | 2,509 | 2,021 |
Recorded Investment with Allowance | 22 | 238 | 23 |
Total Recorded Investment | 2,062 | 2,747 | 2,044 |
Related Allowance | 22 | 85 | 23 |
Average Recorded Investment | 2,059 | 3,149 | 2,526 |
Interest Income Recognized | 24 | 29 | 107 |
Other Real Estate Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 3,549 | 7,559 | 3,492 |
Recorded Investment with No Allowance | 2,436 | 4,119 | 2,463 |
Recorded Investment with Allowance | 554 | 2,984 | 560 |
Total Recorded Investment | 2,990 | 7,103 | 3,023 |
Related Allowance | 190 | 1,447 | 195 |
Average Recorded Investment | 3,069 | 7,149 | 4,933 |
Interest Income Recognized | 8 | 34 | 58 |
Commercial and Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 104 | 122 | 107 |
Recorded Investment with No Allowance | 89 | 3 | 94 |
Recorded Investment with Allowance | 110 | ||
Total Recorded Investment | 89 | 113 | 94 |
Related Allowance | 28 | ||
Average Recorded Investment | $ 92 | $ 118 | $ 118 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2016USD ($)Contract | Mar. 31, 2015USD ($)Contract | Dec. 31, 2015USD ($) | |
Allowance For Loan Losses [Line Items] | |||
TDRs performing under the restructured terms | $ 663,000 | $ 982,000 | |
Loans modified under TDRs | Contract | 0 | 0 | |
Troubled debt restructuring loan subsequent default | $ 0 | $ 0 | |
Troubled debt restructuring loan subsequent default period | 90 days | ||
Performing Financing Receivable [Member] | |||
Allowance For Loan Losses [Line Items] | |||
TDRs performing under the restructured terms | $ 317,000 |
Other Real Estate Owned (OREO50
Other Real Estate Owned (OREO) - Summary of Changes in the Balance for OREO (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | ||
Real Estate [Abstract] | |||
Balance at the beginning of year, gross | $ 2,903 | $ 2,263 | |
Transfers in | 37 | 1,664 | |
Charge-offs | (70) | (381) | |
Sales proceeds | (698) | (717) | |
Gain on disposition | 94 | 74 | |
Balance at the end of period, gross | 2,266 | 2,903 | |
Less: valuation allowance | (154) | (224) | |
Balance at the end of period, net | $ 2,112 | $ 2,679 | [1] |
[1] | Derived from audited consolidated financial statements. |
Other Real Estate Owned (OREO51
Other Real Estate Owned (OREO) - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Real Estate [Line Items] | ||||
Residential real estate carrying amount included in OREO | $ 2,266,000 | $ 2,903,000 | $ 2,263,000 | |
Net expenses applicable to other real estate owned | 22,000 | $ 21,000 | 196,000 | |
Residential Real Estate Properties [Member] | ||||
Other Real Estate [Line Items] | ||||
Residential real estate carrying amount included in OREO | 506,000 | $ 627,000 | ||
Mortgage loans foreclosed | $ 0 |
Other Real Estate Owned (OREO52
Other Real Estate Owned (OREO) - Summary of Changes in the Valuation Allowance (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |||
Real Estate [Abstract] | |||||
Balance at beginning of year | $ 224 | [1] | $ 375 | $ 375 | |
Provision for losses | 230 | ||||
Charge-offs, net | (70) | (250) | (381) | ||
Balance at end of period | $ 154 | $ 125 | $ 224 | [1] | |
[1] | Derived from audited consolidated financial statements. |
Other Borrowings - Additional I
Other Borrowings - Additional Information (Detail) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Unused lines of credit | $ 124,600,000 | $ 128,100,000 |
Blanket floating lien agreement | 19.00% | |
Collateral pledged on borrowings including real estate loans | $ 102,300,000 | 105,100,000 |
FHLB stock book value | 623,000 | 466,000 |
Borrowings from FHLB | 0 | $ 0 |
FHLB [Member] | ||
Debt Instrument [Line Items] | ||
Unused lines of credit | $ 80,400,000 |
Capital Requirements - Addition
Capital Requirements - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Capital conservation buffer period | 4 years |
Capital Requirements - Comparis
Capital Requirements - Comparison of Capital of Company and Bank with Minimum Regulatory Guidelines (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Regulatory Capital Requirements [Abstract] | ||
Actual Amount Total Capital (to Risk Weighted Assets) | $ 62,440 | $ 61,513 |
Actual Ratio Total Capital (to Risk Weighted Assets) | 13.50% | 13.86% |
Minimum Capital Requirement Amount Total Capital (to Risk Weighted Assets) | $ 37,006 | $ 35,497 |
Minimum Capital Requirement Ratio Total Capital (to Risk Weighted Assets) | 8.00% | 8.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Total Capital (to Risk Weighted Assets) | $ 46,258 | $ 44,372 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio Total Capital (to Risk Weighted Assets) | 10.00% | 10.00% |
Actual Amount Tier 1 Capital (to Risk Weighted Assets) | $ 56,920 | $ 55,989 |
Actual Ratio Tier 1 Capital (to Risk Weighted Assets) | 12.30% | 12.62% |
Minimum Capital Requirement Amount Tier 1 Capital (to Risk Weighted Assets) | $ 27,755 | $ 26,623 |
Minimum Capital Requirement Ratio Tier 1 Capital (to Risk Weighted Assets) | 6.00% | 6.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Tier 1 Capital (to Risk Weighted Assets) | $ 37,006 | $ 35,497 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio Tier 1 Capital (to Risk Weighted Assets) | 8.00% | 8.00% |
Actual Amount Common Equity Tier 1 Capital (to Risk Weighted Assets) | $ 56,920 | $ 55,989 |
Actual Ratio Common Equity Tier 1 Capital (to Risk Weighted Assets) | 12.30% | 12.62% |
Minimum Capital Requirement Amount Common Equity Tier 1 Capital (to Risk Weighted Assets) | $ 20,816 | $ 19,967 |
Minimum Capital Requirement Ratio Common Equity Tier 1 Capital (to Risk Weighted Assets) | 4.50% | 4.50% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Common Equity Tier 1 Capital (to Risk Weighted Assets) | $ 30,068 | $ 28,842 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio Common Equity Tier 1 Capital (to Risk Weighted Assets) | 6.50% | 6.50% |
Actual Amount Tier 1 Capital (to Average Assets) | $ 56,920 | $ 55,989 |
Actual Ratio Tier 1 Capital (to Average Assets) | 8.22% | 8.12% |
Minimum Capital Requirement Amount Tier 1 Capital (to Average Assets) | $ 27,693 | $ 27,571 |
Minimum Capital Requirement Ratio Tier 1 Capital (to Average Assets) | 4.00% | 4.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Tier 1 Capital (to Average Assets) | $ 34,617 | $ 34,464 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio Tier 1 Capital (to Average Assets) | 5.00% | 5.00% |
Subordinated Debt - Additional
Subordinated Debt - Additional Information (Detail) $ in Millions | Oct. 30, 2015USD ($) |
6.75% Fixed Interest Subordinate Term Note [Member] | |
Subordinated Borrowing [Line Items] | |
Aggregate principal amount | $ 5 |
Fixed interest rate | 6.75% |
Unsecured Debt [Member] | |
Subordinated Borrowing [Line Items] | |
Debt instrument maturity date | Oct. 1, 2025 |
Debt instrument prepay date | Oct. 30, 2020 |
Junior Subordinated Debt - Addi
Junior Subordinated Debt - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
First National (VA) Statutory Trust III [Member] | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Formation of wholly-owned subsidiary | Jul. 24, 2006 | |
Preferred securities issued through pooled underwriting date | Jul. 31, 2006 | |
Issuance of trust preferred securities | $ 4 | |
LIBOR-indexed floating rate of interest | 2.21% | 1.93% |
Junior subordinated debt | $ 4.1 | |
Securities mandatory redemption date | Oct. 1, 2036 | |
Maximum capital required for capital adequacy | 25.00% | |
First National (VA) Statutory Trust II [Member] | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Formation of wholly-owned subsidiary | Jun. 8, 2004 | |
Preferred securities issued through pooled underwriting date | Jun. 17, 2004 | |
Issuance of trust preferred securities | $ 5 | |
LIBOR-indexed floating rate of interest | 3.24% | 3.13% |
Junior subordinated debt | $ 5.2 | |
Securities mandatory redemption date | Jun. 17, 2034 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Number of highest-paid consecutive years for benefits | 5 years | |
Defined Benefit Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Minimum eligibility for full-time employees, age | 21 years | |
Amount contributed to pension plan | $ 0 | |
Defined Benefit Pension Plan [Member] | Scenario, Forecast [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amount of expected contribution to pension plan in current fiscal year | $ 0 | |
Defined Benefit Pension Plan [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Period of service credit by employee | 1 year |
Benefit Plans - Components of N
Benefit Plans - Components of Net Periodic Benefit Cost (Detail) - Defined Benefit Pension Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 102 | $ 111 |
Interest cost | 83 | 76 |
Expected return on plan assets | (74) | (79) |
Amortization of net loss | 21 | 22 |
Net periodic benefit cost | $ 132 | $ 130 |
Earnings per Common Share - Com
Earnings per Common Share - Computation of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
(Numerator): | ||
Net income | $ 1,099 | $ 544 |
Effective dividend on preferred stock | 329 | |
Net income available to common shareholders | $ 1,099 | $ 215 |
(Denominator): | ||
Weighted average shares outstanding - basic | 4,920,315 | 4,906,981 |
Potentially dilutive common shares - restricted stock units | 2,802 | 4,063 |
Weighted average shares outstanding - diluted | 4,923,117 | 4,911,044 |
Income per common share | ||
Basic | $ 0.22 | $ 0.04 |
Diluted | $ 0.22 | $ 0.04 |
Fair Value Measurements - Balan
Fair Value Measurements - Balances of Assets Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale Securities, Fair Value | $ 99,019 | $ 105,559 | [1] |
U.S. Agency and Mortgage-Backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale Securities, Fair Value | 83,640 | 89,337 | |
Obligations of States and Political Subdivisions [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale Securities, Fair Value | 15,368 | 16,214 | |
Corporate Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale Securities, Fair Value | 11 | 8 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale Securities, Fair Value | 99,019 | 105,559 | |
Fair Value, Measurements, Recurring [Member] | U.S. Agency and Mortgage-Backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale Securities, Fair Value | 83,640 | 89,337 | |
Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale Securities, Fair Value | 15,368 | 16,214 | |
Fair Value, Measurements, Recurring [Member] | Corporate Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale Securities, Fair Value | 11 | 8 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale Securities, Fair Value | 11 | 8 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale Securities, Fair Value | 11 | 8 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale Securities, Fair Value | 99,008 | 105,551 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Agency and Mortgage-Backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale Securities, Fair Value | 83,640 | 89,337 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale Securities, Fair Value | $ 15,368 | $ 16,214 | |
[1] | Derived from audited consolidated financial statements. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Period of maturity as classifies as short-term borrowings | 90 days | |
Fair value of loan commitments and standby letters of credit | $ 0 | $ 0 |
Loans Held For Sale [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non recurring fair value adjustments on loans held for sale | $ 0 | $ 0 |
Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Period under consideration for valuation of real estate collateral | 12 months | |
Period under consideration for valuation of business equipment | 1 year | |
Minimum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Period under consideration for valuation of house or building in the process of construction | 1 year |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets Measured at Fair Value on a Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other real estate owned, net | $ 2,112 | $ 2,679 | [1] |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans, net | 564 | 377 | |
Other real estate owned, net | 2,112 | 2,679 | |
Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans, net | 564 | 377 | |
Other real estate owned, net | $ 2,112 | $ 2,679 | |
[1] | Derived from audited consolidated financial statements. |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information about Level 3 Fair Value Measurements (Detail) - Fair Value, Measurements, Nonrecurring [Member] - Significant Unobservable Inputs (Level 3) [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Impaired Loans Asset, Net [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value assets | $ 564 | $ 377 |
Fair Value Measurements, Valuation Techniques | Property appraisals | |
Selling cost | 4.00% | 5.00% |
Other Real Estate Owned, Net [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value assets | $ 2,112 | $ 2,679 |
Fair Value Measurements, Valuation Techniques | Property appraisals | |
Selling cost | 7.00% | 7.00% |
Minimum [Member] | Impaired Loans Asset, Net [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Selling cost | 1.00% | 2.00% |
Maximum [Member] | Impaired Loans Asset, Net [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Selling cost | 10.00% | 10.00% |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Values and Estimated Fair Values of Company's Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Financial Assets | |||
Securities available for sale | $ 99,019 | $ 105,559 | [1] |
Securities held to maturity | 64,963 | 66,519 | [1] |
Restricted securities | 1,548 | 1,391 | [1] |
Bank owned life insurance | 13,828 | 11,742 | [1] |
Accrued interest receivable | 1,741 | 1,661 | [1] |
Carrying Amount [Member] | |||
Financial Assets | |||
Cash and short-term investments | 39,327 | 39,334 | |
Securities available for sale | 99,019 | 105,559 | |
Securities held to maturity | 64,963 | 66,519 | |
Restricted securities | 1,548 | 1,391 | |
Loans held for sale | 523 | 323 | |
Loans, net | 448,556 | 433,475 | |
Bank owned life insurance | 13,828 | 11,742 | |
Accrued interest receivable | 1,741 | 1,661 | |
Financial Liabilities | |||
Deposits | 633,118 | 627,116 | |
Subordinated debt | 4,917 | 4,913 | |
Junior subordinated debt | 9,279 | 9,279 | |
Accrued interest payable | 111 | 117 | |
Fair Value [Member] | |||
Financial Assets | |||
Cash and short-term investments | 39,327 | 39,334 | |
Securities available for sale | 99,019 | 105,559 | |
Securities held to maturity | 65,568 | 66,438 | |
Restricted securities | 1,548 | 1,391 | |
Loans held for sale | 523 | 323 | |
Loans, net | 456,263 | 438,392 | |
Bank owned life insurance | 13,828 | 11,742 | |
Accrued interest receivable | 1,741 | 1,661 | |
Financial Liabilities | |||
Deposits | 633,036 | 626,321 | |
Subordinated debt | 5,001 | 4,913 | |
Junior subordinated debt | 8,578 | 8,141 | |
Accrued interest payable | 111 | 117 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member] | |||
Financial Assets | |||
Cash and short-term investments | 39,327 | 39,334 | |
Securities available for sale | 11 | 8 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member] | |||
Financial Assets | |||
Securities available for sale | 99,008 | 105,551 | |
Securities held to maturity | 64,030 | 64,938 | |
Restricted securities | 1,548 | 1,391 | |
Loans held for sale | 523 | 323 | |
Bank owned life insurance | 13,828 | 11,742 | |
Accrued interest receivable | 1,741 | 1,661 | |
Financial Liabilities | |||
Deposits | 496,382 | 486,015 | |
Accrued interest payable | 111 | 117 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member] | |||
Financial Assets | |||
Securities held to maturity | 1,538 | 1,500 | |
Loans, net | 456,263 | 438,392 | |
Financial Liabilities | |||
Deposits | 136,654 | 140,306 | |
Subordinated debt | 5,001 | 4,913 | |
Junior subordinated debt | $ 8,578 | $ 8,141 | |
[1] | Derived from audited consolidated financial statements. |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Nov. 06, 2015 | |
Class of Stock [Line Items] | ||
Discount on preferred stock amortized period | 5 years | |
Fixed Rate Cumulative Perpetual Preferred Stock, Series A [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, shares outstanding | 13,900 | |
Preferred Stock, redemption amount | $ 13,900 | |
Preferred stock, shares issued | 13,900 | |
Par value | $ 1.25 | |
Preferred stock, liquidation preference | 1,000 | |
Fixed Rate Cumulative Perpetual Preferred Stock, Series B [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, shares outstanding | 695 | |
Preferred Stock, redemption amount | $ 695 | |
Par value | 1.25 | |
Preferred stock, liquidation preference | $ 1,000 | |
Number of shares | 695 | |
Cumulative dividends of warrant preferred stock | 9.00% | |
Purchase Agreement [Member] | ||
Class of Stock [Line Items] | ||
Cumulative dividends percentage until May 14, 2014 | 5.00% | |
Cumulative dividend thereafter | 9.00% |
Stock Compensation Plans - Addi
Stock Compensation Plans - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | May. 13, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 40 | $ 43 | ||
2014 Stock Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant | 240,000 | |||
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units, granted | 9,130 | |||
Restricted stock units, vested | 7,224 | |||
Restricted stock units, nonvested | 10,259 | 8,353 | ||
Vesting period | 2 years | |||
Percentage of units vesting each year | 50.00% | |||
Total unrecognized pre-tax compensation expense related to unvested restricted stock unit awards | $ 82 | |||
Stock-based compensation | $ 40 | $ 43 | ||
Restricted Stock Units [Member] | Vesting Immediately [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units, vested | 3,047 | |||
Restricted Stock Units [Member] | Vesting Within Two Year [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units, nonvested | 6,083 |
Stock Compensation Plans - Summ
Stock Compensation Plans - Summary of Restricted Stock Units (Detail) - Restricted Stock Units [Member] | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Unvested, beginning of period | shares | 8,353 |
Shares, Granted | shares | 9,130 |
Shares, Vested | shares | (7,224) |
Shares, Forfeited | shares | 0 |
Shares , Unvested, end of period | shares | 10,259 |
Weighted Average Grant Date Fair Value, Balance Balance | $ / shares | $ 9 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 8.80 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 8.92 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 8.88 |
Accumulated Other Comprehensi69
Accumulated Other Comprehensive Loss - Schedule of Changes in Component of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss, Beginning Balance | $ (1,588) | [1] | $ (1,554) |
Unrealized holding gains (losses), net of tax | 749 | 570 | |
Reclassification adjustment, net of tax | (4) | 34 | |
Change during period | 745 | 604 | |
Accumulated other comprehensive loss, Ending Balance | (843) | (950) | |
Securities Available for Sale [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss, Beginning Balance | (192) | (133) | |
Unrealized holding gains (losses), net of tax | 749 | 570 | |
Reclassification adjustment, net of tax | (4) | 34 | |
Change during period | 745 | 604 | |
Accumulated other comprehensive loss, Ending Balance | 553 | 471 | |
Adjustments Related to Pension Benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss, Beginning Balance | (1,396) | (1,421) | |
Accumulated other comprehensive loss, Ending Balance | $ (1,396) | $ (1,421) | |
[1] | Derived from audited consolidated financial statements. |
Accumulated Other Comprehensi70
Accumulated Other Comprehensive Loss - Schedule of Changes in Component of Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Equity [Abstract] | ||
Unrealized holding gains (losses), tax | $ 387 | $ 294 |
Reclassification adjustment, tax | $ 2 | $ (18) |
Accumulated Other Comprehensi71
Accumulated Other Comprehensive Loss - Reclassifications from Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net securities (gains) losses reclassified into earnings | $ (6) | $ 52 |
Related income tax expense (benefit) | 426 | 192 |
Total reclassifications | (1,099) | (544) |
Amount Reclassified from Accumulated Other Comprehensive Loss [Member] | Securities Available for Sale [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net securities (gains) losses reclassified into earnings | (6) | 52 |
Related income tax expense (benefit) | 2 | (18) |
Total reclassifications | $ (4) | $ 34 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) | Apr. 17, 2015USD ($)Branches |
Business Acquisition [Line Items] | |
Cash paid for deposits, premises and equipment | $ 6,618,000 |
Amount for acquisition of premises and equipment | 4,495,000 |
Total deposits liabilities assumed | 186,819,000 |
Bank of America [Member] | |
Business Acquisition [Line Items] | |
Amount for acquisition of premises and equipment | 2,165,000 |
Total deposits liabilities assumed | 186,136,000 |
Loans acquired | $ 0 |
Bank of America [Member] | Virginia [Member] | |
Business Acquisition [Line Items] | |
Number of acquired branches | Branches | 6 |
Acquisition - Preliminary Asses
Acquisition - Preliminary Assessment of Consideration Transferred, Assets Purchased and Liabilities Assumed (Detail) $ in Thousands | Apr. 17, 2015USD ($) |
Consideration paid: | |
Cash paid | $ 6,618 |
Total consideration | 6,618 |
Assets acquired: | |
Cash and cash equivalents | 186,119 |
Premises and equipment, net | 4,495 |
Other assets | 114 |
Core deposit intangibles | 2,910 |
Total assets acquired | 193,638 |
Liabilities assumed: | |
Deposits | 186,802 |
Other liabilities | 17 |
Total liabilities assumed | 186,819 |
Net identifiable assets acquired over liabilities assumed | 6,819 |
Goodwill (bargain purchase gain) | (201) |
Bank of America [Member] | |
Assets acquired: | |
Cash and cash equivalents | 186,119 |
Premises and equipment, net | 2,165 |
Other assets | 114 |
Total assets acquired | 188,398 |
Liabilities assumed: | |
Deposits | 186,119 |
Other liabilities | 17 |
Total liabilities assumed | 186,136 |
Net identifiable assets acquired over liabilities assumed | 2,262 |
Fair Value and Other Merger Related Adjustments [Member] | |
Assets acquired: | |
Premises and equipment, net | 2,330 |
Core deposit intangibles | 2,910 |
Total assets acquired | 5,240 |
Liabilities assumed: | |
Deposits | 683 |
Total liabilities assumed | 683 |
Net identifiable assets acquired over liabilities assumed | $ 4,557 |