Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 05, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AMERICAN NATIONAL BANKSHARES INC. | |
Entity Central Index Key | 741,516 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 8,696,418 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | [1] |
Assets | |||
Cash and due from banks | $ 24,548 | $ 29,272 | |
Interest-bearing deposits in other banks | 50,758 | 38,031 | |
Federal funds sold | 408 | 0 | |
Securities available for sale, at fair value | 355,595 | 344,716 | |
Restricted stock, at cost | 5,329 | 4,367 | |
Loans held for sale | 2,720 | 616 | |
Loans, net of unearned income | 982,905 | 840,925 | |
Less allowance for loan losses | (12,793) | (12,427) | |
Net loans | 970,112 | 828,498 | |
Premises and equipment, net | 24,182 | 23,025 | |
Other real estate owned, net of valuation allowance $363 in 2015 and $2,971 in 2014 | 2,113 | 2,119 | |
Goodwill | 44,210 | 39,043 | |
Core deposit intangibles, net | 3,283 | 2,045 | |
Bank owned life insurance | 17,376 | 15,193 | |
Accrued interest receivable and other assets | 23,722 | 19,567 | |
Total assets | 1,524,356 | 1,346,492 | |
Liabilities | |||
Demand deposits -- noninterest bearing | 294,342 | 254,458 | |
Demand deposits -- interest bearing | 239,582 | 193,432 | |
Money market deposits | 190,799 | 174,000 | |
Savings deposits | 109,732 | 90,130 | |
Time deposits | 399,563 | 363,817 | |
Total deposits | 1,234,018 | 1,075,837 | |
Customer repurchase agreements | 50,123 | 53,480 | |
Long-term borrowings | 9,947 | 9,935 | |
Trust preferred capital notes | 27,571 | 27,521 | |
Accrued interest payable and other liabilities | 7,814 | 5,939 | |
Total liabilities | 1,329,473 | 1,172,712 | |
Shareholders' equity | |||
Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding | 0 | 0 | |
Common stock, $1 par, 20,000,000 shares authorized, 8,688,480 shares outstanding at June 30, 2015 and 7,873,474 shares outstanding at December 31, 2014 | 8,671 | 7,872 | |
Capital in excess of par value | 76,826 | 57,650 | |
Retained earnings | 106,984 | 104,594 | |
Accumulated other comprehensive income, net | 2,402 | 3,664 | |
Total shareholders' equity | 194,883 | 173,780 | |
Total liabilities and shareholders' equity | $ 1,524,356 | $ 1,346,492 | |
[1] | Derived from audited consolidated financial statements. |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Valuation allowance | $ 363 | $ 2,971 |
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares outstanding (in shares) | 8,688,480 | 7,873,474 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest and Dividend Income: | ||||
Interest and fees on loans | $ 11,767 | $ 9,687 | $ 23,537 | $ 19,534 |
Interest on federal funds sold | 1 | 0 | 5 | 0 |
Interest and dividends on securities: | ||||
Taxable | 994 | 968 | 1,969 | 1,932 |
Tax-exempt | 940 | 1,016 | 1,900 | 2,051 |
Dividends | 85 | 74 | 167 | 149 |
Other interest income | 50 | 35 | 98 | 68 |
Total interest and dividend income | 13,837 | 11,780 | 27,676 | 23,734 |
Interest Expense: | ||||
Interest on deposits | 1,184 | 1,161 | 2,378 | 2,390 |
Interest on short-term borrowings | 2 | 2 | 5 | 4 |
Interest on long-term borrowings | 81 | 81 | 161 | 161 |
Interest on trust preferred capital notes | 188 | 185 | 372 | 369 |
Total interest expense | 1,455 | 1,429 | 2,916 | 2,924 |
Net Interest Income | 12,382 | 10,351 | 24,760 | 20,810 |
Provision for Loan Losses | 100 | 150 | 700 | 150 |
Net Interest Income After Provision for Loan Losses | 12,282 | 10,201 | 24,060 | 20,660 |
Noninterest Income: | ||||
Trust fees | 1,005 | 1,017 | 1,957 | 2,139 |
Service charges on deposit accounts | 525 | 431 | 1,022 | 844 |
Other fees and commissions | 607 | 493 | 1,195 | 937 |
Mortgage banking income | 389 | 275 | 611 | 538 |
Gains on sales of securities | 237 | 150 | 547 | 189 |
Other | 495 | 334 | 1,082 | 756 |
Total noninterest income | 3,258 | 2,700 | 6,414 | 5,403 |
Noninterest Expense: | ||||
Salaries | 4,308 | 3,638 | 8,455 | 7,176 |
Employee benefits | 1,111 | 847 | 2,186 | 1,822 |
Occupancy and equipment | 1,024 | 910 | 2,196 | 1,846 |
FDIC assessment | 195 | 165 | 380 | 329 |
Bank franchise tax | 220 | 231 | 455 | 453 |
Core deposit intangible amortization | 300 | 330 | 601 | 661 |
Data processing | 483 | 345 | 945 | 693 |
Software | 277 | 235 | 560 | 497 |
Other real estate owned, net | 133 | (9) | 186 | 7 |
Acquisition related expense | 1,502 | 0 | 1,861 | 0 |
Other | 2,089 | 1,673 | 3,864 | 3,304 |
Total noninterest expense | 11,642 | 8,365 | 21,689 | 16,788 |
Income Before Income Taxes | 3,898 | 4,536 | 8,785 | 9,275 |
Income Taxes | 1,018 | 1,303 | 2,390 | 2,592 |
Net Income | $ 2,880 | $ 3,233 | $ 6,395 | $ 6,683 |
Net Income Per Common Share: | ||||
Basic (in dollars per share) | $ 0.33 | $ 0.41 | $ 0.73 | $ 0.85 |
Diluted (in dollars per share) | $ 0.33 | $ 0.41 | $ 0.73 | $ 0.85 |
Weighted Average Common Shares Outstanding: | ||||
Basic (in shares) | 8,707,504 | 7,872,079 | 8,713,528 | 7,886,232 |
Diluted (in shares) | 8,715,934 | 7,879,854 | 8,722,266 | 7,896,541 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,880 | $ 3,233 | $ 6,395 | $ 6,683 |
Other comprehensive income (loss): | ||||
Unrealized gains (losses) on securities available for sale | (2,628) | 2,422 | (1,394) | 4,231 |
Income tax (expense) benefit | 920 | (848) | 488 | (1,481) |
Reclassification adjustment for gains on sales of securities | (237) | (150) | (547) | (189) |
Income tax expense | 82 | 52 | 191 | 66 |
Other comprehensive income (loss) | (1,863) | 1,476 | (1,262) | 2,627 |
Comprehensive income | $ 1,017 | $ 4,709 | $ 5,133 | $ 9,310 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | |
Beginning Balance at Dec. 31, 2013 | $ 167,551 | $ 7,891 | $ 58,050 | $ 99,090 | $ 2,520 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 6,683 | 6,683 | ||||
Other comprehensive income (loss) | 2,627 | 2,627 | ||||
Stock repurchased and retired | (1,500) | (70) | (1,430) | |||
Equity based compensation | 343 | 19 | 324 | |||
Cash dividends declared ($0.46 per share) | (3,621) | (3,621) | ||||
Ending Balance at Jun. 30, 2014 | 172,083 | 7,840 | 56,944 | 102,152 | 5,147 | |
Beginning Balance at Dec. 31, 2014 | 173,780 | [1] | 7,872 | 57,650 | 104,594 | 3,664 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 6,395 | 6,395 | ||||
Other comprehensive income (loss) | (1,262) | (1,262) | ||||
Issuance of common stock | 20,483 | 826 | 19,657 | |||
Stock repurchased and retired | (1,175) | (52) | (1,123) | |||
Stock options exercised | 265 | 15 | 250 | |||
Equity based compensation | 402 | 10 | 392 | |||
Cash dividends declared ($0.46 per share) | (4,005) | (4,005) | ||||
Ending Balance at Jun. 30, 2015 | $ 194,883 | $ 8,671 | $ 76,826 | $ 106,984 | $ 2,402 | |
[1] | Derived from audited consolidated financial statements. |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends paid (in dollars per share) | $ 0.46 | $ 0.46 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows from Operating Activities: | ||
Net income | $ 6,395 | $ 6,683 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 700 | 150 |
Depreciation | 882 | 857 |
Net accretion of purchase accounting adjustments | (1,957) | (1,500) |
Core deposit intangible amortization | 601 | 661 |
Net amortization (accretion) of securities | 1,369 | 1,303 |
Net gains on sale or call of securities | (547) | (189) |
Net gain on sale of loans held for sale | (481) | (426) |
Proceeds from sales of loans held for sale | 25,601 | 26,239 |
Originations of loans held for sale | (27,224) | (23,171) |
Net gain on other real estate owned | (10) | (152) |
Valuation allowance on other real estate owned | 63 | 46 |
Net gain on sale of premises and equipment | (5) | 0 |
Equity based compensation expense | 402 | 343 |
Net change in bank owned life insurance | (228) | (199) |
Deferred income tax expense | 83 | 212 |
Net change in interest receivable | 391 | 168 |
Net change in other assets | (350) | (871) |
Net change in interest payable | (40) | (20) |
Net change in other liabilities | (1,161) | (467) |
Net cash provided by operating activities | 4,484 | 9,667 |
Cash Flows from Investing Activities: | ||
Proceeds from sales of securities available for sale | 7,429 | 6,477 |
Proceeds from maturities, calls and paydowns of securities available for sale | 57,846 | 35,795 |
Purchases of securities available for sale | (60,117) | (42,939) |
Net change in restricted stock | (224) | (175) |
Net increase in loans | (26,465) | (17,197) |
Proceeds from sale of premises and equipment | 42 | 0 |
Purchases of premises and equipment | (601) | (266) |
Proceeds from sales of other real estate owned | 1,047 | 1,292 |
Cash paid in bank acquisition | (5,935) | 0 |
Cash acquired in bank acquisition | 18,173 | 0 |
Net cash used in investing activities | (8,805) | (17,013) |
Cash Flows from Financing Activities: | ||
Net change in demand, money market, and savings deposits | 39,984 | 3,840 |
Net change in time deposits | (18,980) | (25,715) |
Net change in customer repurchase agreements | (3,357) | (1,058) |
Net change in other short-term borrowings | 0 | 12,000 |
Net change in long-term borrowings | 0 | (38) |
Common stock dividends paid | (4,005) | (3,621) |
Repurchase of stock | (1,175) | (1,500) |
Proceeds from exercise of stock options | 265 | 0 |
Net cash provided by (used in) financing activities | 12,732 | (16,092) |
Net Increase (Decrease) in Cash and Cash Equivalents | 8,411 | (23,438) |
Cash and Cash Equivalents at Beginning of Period | 67,303 | 67,681 |
Cash and Cash Equivalents at End of Period | $ 75,714 | $ 44,243 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies The consolidated financial statements include the accounts of American National Bankshares Inc. (the "Company") and its wholly owned subsidiary, American National Bank and Trust Company (the "Bank"). The Bank offers a wide variety of retail, commercial, secondary market mortgage lending, and trust and investment services which also include non-deposit products such as mutual funds and insurance policies. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of foreclosed real estate, goodwill and intangible assets, the valuation of deferred tax assets, other-than-temporary impairments of securities, and acquired loans with specific credit-related deterioration. All significant inter-company transactions and accounts are eliminated in consolidation, with the exception of the AMNB Trust and the MidCarolina Trusts, as detailed in Note 9. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the results of the interim periods. The results of operations for the interim periods are not necessarily indicative of the results that may occur for the year ending December 31, 2015 . Certain reclassifications have been made to prior period balances to conform to the current period presentation. These reclassifications did not have an impact on net income and were considered immaterial. These statements should be read in conjunction with the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 . Recent Accounting Pronouncements In June 2014, the Financial Accounting Standards Board (the" FASB") issued Accounting Standards Update ("ASU") No. 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” This ASU aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. The new guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. The amendments in the ASU also require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. Additional disclosures will be required for the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The amendments in this ASU are effective for the first interim or annual period beginning after December 15, 2014; however, the disclosure for transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. Early adoption is not permitted. The adoption of the new guidance did not have a material impact on the Company’s consolidated financial statements. In June 2014, the FASB issued ASU No. 2014-12, “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” The new guidance applies to reporting entities that grant employees share-based payments in which the terms of the award allow a performance target to be achieved after the requisite service period. The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Existing guidance in “Compensation - Stock Compensation (Topic 718),” should be applied to account for these types of awards. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted and reporting entities may choose to apply the amendments in the ASU either on a prospective or retrospective basis. The Company is currently assessing the impact that ASU 2014-12 will have on the Company’s consolidated financial statements. 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 a material impact on its consolidated financial statements. In November 2014, the FASB issued ASU No. 2014-16, “Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity.” The amendments in this ASU do not change the current criteria in GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. The amendments clarify how current GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. The amendments in this ASU also clarify that, in evaluating the nature of a host contract, an entity should assess the substance of the relevant terms and features (i.e., the relative strength of the debt-like or equity-like terms and features given the facts and circumstances) when considering how to weight those terms and features. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption, including adoption in an interim period, is permitted. The Company does not expect the adoption of ASU 2014-16 to have a material impact on its consolidated financial statements. In January 2015, the FASB issued ASU No. 2015-01, “Income Statement-Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” The amendments in this ASU eliminate from GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of ASU 2015-01 to have a material impact on its consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” The amendments in this ASU are intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB Accounting Standards Codification and improves current GAAP by placing more emphasis on risk of loss when determining a controlling financial interest, reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity ("VIE"), and changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. ASU 2015-02 may be applied retrospectively in previously issued financial statements for one or more years with a cumulative-effect adjustment to retained earnings as of the beginning of the first year restated. The Company does not expect the adoption of ASU 2015-02 to have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The amendments in this ASU are intended to simplify the presentation of debt issuance costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The amendments in this ASU are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of ASU 2015-03 to have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” The amendments in this ASU provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments do not change the accounting for a customer’s accounting for service contracts. As a result of the amendments, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. The amendments in this ASU are effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. An entity can elect to adopt the amendments either: (1) prospectively to all arrangements entered into or materially modified after the effective date; or (2) retrospectively. The Company is currently assessing the impact that ASU 2015-05 will have on its consolidated financial statements. In May 2015, the FASB issued ASU No. 2015-08, “Business Combinations (Topic 805): Pushdown Accounting - Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115.” The amendments in ASU 2015-08 amend various Securities and Exchange Commission ("SEC") paragraphs pursuant to the issuance of Staff Accounting Bulletin No. 115, Topic 5: Miscellaneous Accounting, regarding various pushdown accounting issues, and did not have a material impact on the Company’s consolidated financial statements. |
Acquisition of MainStreet
Acquisition of MainStreet | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisition of MainStreet | Acquisition of MainStreet On January 1, 2015, the Company completed its acquisition of MainStreet BankShares, Inc. ("MainStreet"). The merger of MainStreet with and into the Company was effected pursuant to the terms and conditions of the Agreement and Plan of Reorganization, dated as of August 24, 2014, between the Company and MainStreet, and a related Plan of Merger. Immediately after the merger, Franklin Community Bank, N.A., MainStreet's wholly owned bank subsidiary, merged with and into the Bank. Pursuant to the MainStreet merger agreement, holders of shares of MainStreet common stock received $3.46 in cash and 0.482 shares of the Company's common stock for each share of MainStreet common stock held immediately prior to the effective date of the merger, plus cash in lieu of fractional shares. Each option to purchase shares of MainStreet common stock that was outstanding immediately prior to the effective date of the merger vested upon the merger and was converted into an option to purchase shares of the Company's common stock, adjusted based on a 0.643 exchange ratio. Each share of the Company's common stock outstanding immediately prior to the merger remained outstanding and was unaffected by the merger. The cash portion of the merger consideration was funded through a cash dividend of $6,000,000 from the Bank to the Company, and no borrowing was incurred by the Company or the Bank in connection with the merger. Replacement stock option awards representing 43,086 shares of the Company's common stock were granted in conjunction with the MainStreet acquisition. The value of the consideration transferred with the replacement awards was not determined as of June 30, 2015 ; therefore, the amounts of the consideration transferred and goodwill recorded in connection with the merger will be adjusted for the value of the replacement awards in the third quarter of 2015. 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. In connection with the merger, the consideration paid, and the fair value of identifiable assets acquired and liabilities assumed as of the merger date are summarized in the following table (dollars in thousands): Consideration Paid: Common shares issued (825,586) $ 20,483 Cash paid to shareholders 5,935 Value of consideration 26,418 Assets acquired: Cash and cash equivalents 18,173 Investment securities 18,800 Restricted stock 738 Loans 114,902 Premises and equipment 1,475 Deferred income taxes 2,683 Core deposit intangible 1,839 Other real estate owned 168 Banked owned life insurance 1,955 Other assets 917 Total assets 161,650 Liabilities assumed: Deposits 137,323 Other liabilities 3,076 Total liabilities 140,399 Net assets acquired 21,251 Goodwill resulting from merger with MainStreet $ 5,167 In many cases, the fair values of assets acquired and liabilities assumed were determined by estimating the cash flows expected to result from those assets and liabilities and discounting them at appropriate market rates. The most significant category of assets for which this procedure was used was that of acquired loans. The Company acquired the $122,300,000 loan portfolio at a fair value discount of $7,400,000 . The estimated fair value of the performing portion of the portfolio was $105,800,000 . The excess of expected cash flows above the fair value of the performing portion of loans will be accreted to interest income over the remaining lives of the loans in accordance with FASB Accounting Standards Codification ("ASC") 310-20. Certain loans, those for which specific credit-related deterioration since origination was identified, are recorded at fair value, reflecting the present value of the amounts expected to be collected. Income recognition on these loans is based on reasonable expectations about the timing and amount of cash flows to be collected. Acquired loans deemed impaired and considered collateral dependent, with the timing of the sale of loan collateral indeterminate, remain on non-accrual status and have no accretable yield. The following table details the acquired loans that are accounted for in accordance with FASB ASC 310-30 as of January 1, 2015 (dollars in thousands): Contractually required principal and interest at acquisition $ 13,504 Contractual cash flows not expected to be collected (nonaccretable difference) 3,298 Expected cash flows at acquisition 10,206 Interest component of expected cash flows (accretable yield) 1,208 Fair value of acquired loans accounted for under FASB ASC 310-30 $ 8,998 In accordance with GAAP, there was no carryover of the allowance for loan losses that had been previously recorded by MainStreet. In connection with the acquisition of MainStreet, the Company acquired an investment portfolio with a fair value of $18,800,000 . The fair value of the investment portfolio was determined by taking into account market prices obtained from independent valuation sources. In connection with the acquisition of MainStreet, the Company recorded a deferred income tax asset of $2,683,000 related to tax attributes of MainStreet, along with the effects of fair value adjustments resulting from applying the acquisition method of accounting. In connection with the acquisition of MainStreet, the Company acquired other real estate owned with a fair value of $168,000 . Other real estate owned was measured at fair value less estimated cost to sell. In connection with acquisition of with MainStreet, the Company acquired premises and equipment with a fair value of $1,475,000 . The fair value of savings and transaction deposit accounts acquired from MainStreet was assumed to approximate their carrying value as these accounts have no stated maturity and are payable on demand. Certificates of deposit accounts were valued by comparing the contractual cost of the portfolio to an identical portfolio bearing current market rates. The portfolio was segregated into pools based on segments: retail, individual retirement accounts, and brokered. For each segment, the projected cash flows from maturing certificates were then calculated based on contractual rates and prevailing market rates. The valuation adjustment for each segment is equal to the present value of the difference of these two cash flows, discounted at the assumed market rate for a certificate with a corresponding maturity. This valuation adjustment of $290,000 will be accreted to reduce interest expense over the average remaining maturities of the respective pools, which is estimated to be 12 months . A core deposit intangible of $1,839,000 was recognized in connection with the acquisition of MainStreet. This intangible will be amortized over a 10 year period on an accelerated cost recovery basis. Direct costs related to the acquisition were expensed as incurred. During 2015, the Company incurred $1,861,000 in merger and acquisition expenses. The following table presents unaudited pro forma information as if the acquisition of MainStreet had occurred on January 1, 2014. This pro forma information gives effect to certain adjustments, including acquisition accounting fair value adjustments, amortization of core deposit intangible and related income tax effects. The pro forma information does not necessarily reflect the results of operations that would have occurred had the merger with MainStreet occurred in 2014. In particular, expected operational cost savings are not reflected in the pro forma amounts (dollars in thousands). Pro forma June 30, 2015 June 30, 2014 Net interest income $ 25,268 $ 24,791 Provision for loan loss (700 ) (150 ) Non-interest income 6,414 5,851 Non-interest expense and income taxes (24,477 ) (22,777 ) Net income $ 6,505 $ 7,715 Pro forma June 30, 2015 June 30, 2014 Net interest income $ 12,698 $ 12,370 Provision for loan loss (100 ) (150 ) Non-interest income 3,258 2,937 Non-interest expense and income taxes (12,950 ) (11,338 ) Net income $ 2,906 $ 3,819 |
Securities
Securities | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The amortized cost and fair value of investments in debt and equity securities at June 30, 2015 and December 31, 2014 were as follows (dollars in thousands): June 30, 2015 Amortized Unrealized Unrealized Securities available for sale: Federal agencies and GSEs $ 96,520 $ 295 $ 449 $ 96,366 Mortgage-backed and CMOs 59,462 1,114 175 60,401 State and municipal 182,771 6,074 176 188,669 Corporate 8,790 37 38 8,789 Equity securities 1,000 370 — 1,370 Total securities available for sale $ 348,543 $ 7,890 $ 838 $ 355,595 December 31, 2014 Amortized Unrealized Unrealized Securities available for sale: Federal agencies and GSEs $ 81,958 $ 252 $ 104 $ 82,106 Mortgage-backed and CMOs 56,289 1,248 112 57,425 State and municipal 188,060 7,523 90 195,493 Corporate 8,416 16 53 8,379 Equity securities 1,000 313 — 1,313 Total securities available for sale $ 335,723 $ 9,352 $ 359 $ 344,716 Restricted Stock Due to restrictions placed upon the Bank's common stock investment in the Federal Reserve Bank of Richmond ("FRB") and Federal Home Loan Bank of Atlanta ("FHLB"), these securities have been classified as restricted equity securities and carried at cost. The restricted securities are not subject to the investment security classification and are included as a separate line item on the Company's balance sheet. The FRB requires the Bank to maintain stock with a par value equal to 6.0% of its common stock and paid-in surplus. One-half of this amount is paid to the FRB and the remaining half is subject to call when deemed necessary by the Board of Governors of the Federal Reserve System. The FHLB requires the Bank to maintain stock in an amount equal to a specific percentage of the Bank's total assets and 4.5% of outstanding borrowings. The cost of restricted stock at June 30, 2015 and December 31, 2014 were as follows (dollars in thousands): June 30, December 31, FRB stock $ 3,527 $ 2,742 FHLB stock 1,802 1,625 Total restricted stock $ 5,329 $ 4,367 Temporarily Impaired Securities The following table shows fair value and gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2015 . The reference point for determining when securities are in an unrealized loss position is month-end. Therefore, it is possible that a security's market value exceeded its amortized cost on other days during the past twelve-month period (dollars in thousands). Total Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized Fair Unrealized Federal agencies and GSEs $ 39,979 $ 449 $ 37,881 $ 447 $ 2,098 $ 2 Mortgage-backed and CMOs 14,115 175 11,646 133 2,469 42 State and municipal 24,998 176 24,998 176 — — Corporate 2,735 38 1,143 10 1,592 28 Total $ 81,827 $ 838 $ 75,668 $ 766 $ 6,159 $ 72 Federal Agencies and GSE debt securities: The unrealized losses on the Company's investment in 15 government sponsored entities ("GSE") were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at June 30, 2015 . Mortgage-backed securities and CMOs: The unrealized losses on the Company's investment in 23 GSE mortgage-backed securities and collateralized mortgage obligations ("CMOs") were caused by interest rate increases. The contractual cash flows of those investments are guaranteed by an agency of the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost basis of the Company's investments. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at June 30, 2015 . State and municipal securities : The unrealized losses on 32 state and municipal securities were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at June 30, 2015 . Corporate securities : The unrealized losses on three investments in corporate securities were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at June 30, 2015 . Restricted stock: When evaluating restricted stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The company does not consider restricted stock to be other-than-temporarily impaired at June 30, 2015 , and no impairment has been recognized. The table below shows gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position, at December 31, 2014 (dollars in thousands): Total Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized Fair Unrealized Federal agencies and GSEs $ 28,979 $ 104 $ 21,449 $ 35 $ 7,530 $ 69 Mortgage-backed and CMOs 7,182 112 1,171 13 6,011 99 State and municipal 20,542 90 15,836 60 4,706 30 Corporate 5,032 53 2,273 4 2,759 49 Total $ 61,735 $ 359 $ 40,729 $ 112 $ 21,006 $ 247 Other-Than-Temporary-Impaired Securities As of June 30, 2015 and December 31, 2014 , there were no securities classified as having other-than-temporary impairment. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Loans | Loans Segments Loans, excluding loans held for sale, as of June 30, 2015 and December 31, 2014 , were comprised of the following (dollars in thousands): June 30, December 31, 2014 Commercial $ 159,015 $ 126,981 Commercial real estate: Construction and land development 66,543 50,863 Commercial real estate 432,315 391,472 Residential real estate: Residential 220,778 175,293 Home equity 97,866 91,075 Consumer 6,388 5,241 Total loans $ 982,905 $ 840,925 Acquired Loans Interest income, including accretion income of $1,872,000 , on loans acquired from MidCarolina Financial Corporation ("MidCarolina") and MainStreet for the six months ended June 30, 2015 was approximately $8,122,000 . The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheets at June 30, 2015 and December 31, 2014 are as follows (dollars in thousands): June 30, December 31, 2014 Outstanding principal balance $ 173,907 $ 84,892 Carrying amount 161,904 78,111 The outstanding principal balance and related carrying amount of acquired impaired loans, for which the Company applies FASB ASC 310-30, to account for interest earned, at June 30, 2015 and December 31, 2014 are as follows (dollars in thousands): June 30, December 31, 2014 Outstanding principal balance $ 26,840 $ 18,357 Carrying amount 20,751 14,933 The following table presents changes in the accretable yield on acquired impaired loans, for which the Company applies FASB ASC 310-30, for the six months ended June 30, 2015 (dollars in thousands): Accretable Yield Balance at December 31, 2014 $ 1,440 Additions from merger with MainStreet 1,208 Accretion (428 ) Reclassification from nonaccretable difference 3,237 Balance at June 30, 2015 $ 5,457 Past Due Loans The following table shows an analysis by portfolio segment of the Company's past due loans at June 30, 2015 (dollars in thousands): 30- 59 Days 60-89 Days 90 Days + Non- Total Current Total Commercial $ 68 $ — $ — $ 254 $ 322 $ 158,693 $ 159,015 Commercial real estate: Construction and land development — — — 276 276 66,267 66,543 Commercial real estate 593 355 — 1,937 2,885 429,430 432,315 Residential: Residential 454 551 — 582 1,587 219,191 220,778 Home equity 11 198 — 711 920 96,946 97,866 Consumer 38 1 — 12 51 6,337 6,388 Total $ 1,164 $ 1,105 $ — $ 3,772 $ 6,041 $ 976,864 $ 982,905 The following table shows an analysis by portfolio segment of the Company's past due loans at December 31, 2014 (dollars in thousands): 30- 59 Days 60-89 Days 90 Days + Non- Total Current Total Commercial $ 114 $ 165 $ — $ — $ 279 $ 126,702 $ 126,981 Commercial real estate: Construction and land development 44 269 — 279 592 50,271 50,863 Commercial real estate 257 — — 3,010 3,267 388,205 391,472 Residential: Residential 390 325 — 560 1,275 174,018 175,293 Home equity 223 60 — 262 545 90,530 91,075 Consumer 1 42 — 1 44 5,197 5,241 Total $ 1,029 $ 861 $ — $ 4,112 $ 6,002 $ 834,923 $ 840,925 Impaired Loans The following table presents the Company's impaired loan balances by portfolio segment, excluding loans acquired with deteriorated credit quality, at June 30, 2015 (dollars in thousands): Recorded Unpaid Related Average Interest With no related allowance recorded: Commercial $ 259 $ 261 $ — $ 197 $ 5 Commercial real estate: Construction and land development 260 313 — 448 — Commercial real estate 254 522 — 1,146 — Residential: Residential 353 353 — 413 — Home equity 661 661 — 637 — Consumer 1 1 — 29 — $ 1,788 $ 2,111 $ — $ 2,870 $ 5 With a related allowance recorded: Commercial — — — — — Commercial real estate: Construction and land development 415 415 1 519 15 Commercial real estate 929 973 8 871 12 Residential Residential 509 511 23 429 6 Home equity — — — — — Consumer 14 14 — 15 — $ 1,867 $ 1,913 $ 32 $ 1,834 $ 33 Total: Commercial $ 259 $ 261 $ — $ 197 $ 5 Commercial real estate: Construction and land development 675 728 1 967 15 Commercial real estate 1,183 1,495 8 2,017 12 Residential: Residential 862 864 23 842 6 Home equity 661 661 — 637 — Consumer 15 15 — 44 — $ 3,655 $ 4,024 $ 32 $ 4,704 $ 38 The following table presents the Company's impaired loan balances by portfolio segment, excluding loans acquired with deteriorated credit quality, at December 31, 2014 (dollars in thousands): Recorded Unpaid Related Average Interest With no related allowance recorded: Commercial $ 7 $ 7 $ — $ 12 $ 1 Commercial real estate: Construction and land development 280 325 — 448 — Commercial real estate 1,520 1,797 — 1,844 — Residential: Residential 603 603 — 723 8 Home equity 256 256 — 316 — Consumer 1 1 — 2 — $ 2,667 $ 2,989 $ — $ 3,345 $ 9 With a related allowance recorded: Commercial $ — $ — $ — $ — $ — Commercial real estate: Construction and land development 576 577 12 593 34 Commercial real estate 1,275 1,422 149 1,297 8 Residential: Residential 4 4 1 4 — Home equity — — — — — Consumer 15 15 3 17 1 $ 1,870 $ 2,018 $ 165 $ 1,911 $ 43 Total: Commercial $ 7 $ 7 $ — $ 12 $ 1 Commercial real estate: Construction and land development 856 902 12 1,041 34 Commercial real estate 2,795 3,219 149 3,141 8 Residential: Residential 607 607 1 727 8 Home equity 256 256 — 316 — Consumer 16 16 3 19 1 $ 4,537 $ 5,007 $ 165 $ 5,256 $ 52 The following tables show the detail of loans modified as troubled debt restructurings ("TDRs") during the three and six months ended June 30, 2015 included in the impaired loan balances (dollars in thousands). Loans Modified as a TDR for the Three Months Ended June 30, 2015 Loan Type Number of Contracts Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate 2 249 249 Construction and land development — — — Home Equity — — — Residential real estate 2 51 51 Consumer — — — Total 4 $ 300 $ 300 Loans Modified as a TDR for the Six Months Ended June 30, 2015 Loan Type Number of Contracts Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate 3 256 255 Construction and land development — — — Home Equity — — — Residential real estate 4 394 389 Consumer — — — Total 7 $ 650 $ 644 The following tables show the detail of loans modified as TDRs d uring the three and six months ended June 30, 2014 included in the impaired loan balances (dollars in thousands): Loans Modified as a TDR for the Three Months Ended June 30, 2014 Loan Type Number of Contracts Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate 1 182 182 Construction and land development — — — Home Equity 1 8 8 Residential real estate 2 117 117 Consumer 1 4 4 Total 5 $ 311 $ 311 Loans Modified as a TDR for the Six Months Ended June 30, 2014 Loan Type Number of Contracts Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate 1 182 182 Construction and land development — — — Home Equity 1 8 8 Residential real estate 2 117 117 Consumer 1 4 4 Total 5 $ 311 $ 311 During the three and six months ended June 30, 2015 and June 30, 2014 , the Company had no loans that subsequently defaulted within twelve months of modification as a TDR. The Company defines defaults as one or more payments that occur more than 90 days past the due date, charge-off or foreclosure subsequent to modification. Residential Real Estate in Process of Foreclosure The Company had $511,000 in residential real estate in the process of foreclosure and $181,000 in other real estate owned. Risk Grades The following table shows the Company's loan portfolio broken down by internal risk grading as of June 30, 2015 (dollars in thousands): Commercial and Consumer Credit Exposure Credit Risk Profile by Internally Assigned Grade Commercial Commercial Commercial Residential Home Pass $ 156,136 $ 60,595 $ 418,858 $ 198,952 $ 95,341 Special Mention 2,606 2,363 7,103 17,570 1,478 Substandard 273 3,585 6,354 4,256 1,047 Doubtful — — — — — Total $ 159,015 $ 66,543 $ 432,315 $ 220,778 $ 97,866 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Consumer Performing $ 6,337 Nonperforming 51 Total $ 6,388 The following table shows the Company's loan portfolio broken down by internal risk grading as of December 31, 2014 (dollars in thousands): Commercial and Consumer Credit Exposure Credit Risk Profile by Internally Assigned Grade Commercial Commercial Real Estate Construction Commercial Real Estate Other Residential Home Equity Pass $ 125,405 $ 45,534 $ 382,607 $ 165,367 $ 88,646 Special Mention 1,569 569 4,889 6,709 1,801 Substandard 7 4,760 3,976 3,217 628 Doubtful — — — — — Total $ 126,981 $ 50,863 $ 391,472 $ 175,293 $ 91,075 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Consumer Performing $ 5,240 Nonperforming 1 Total $ 5,241 Loans classified in the Pass category typically are fundamentally sound and risk factors are reasonable and acceptable. Loans classified in the Special Mention category typically have been criticized internally, by loan review or the loan officer, or by external regulators under the current credit policy regarding risk grades. Loans classified in the Substandard category typically have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are typically characterized by the possibility that the Bank will sustain some loss if the deficiencies are not corrected. Loans classified in the Doubtful category typically have all the weaknesses inherent in loans classified as substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. However, these loans are not yet rated as loss because certain events may occur that may salvage the debt. Consumer loans are classified as performing or nonperforming. A loan is nonperforming when payments of interest and principal are past due 90 days or more, or payments are less than 90 days past due, but there are other good reasons to doubt that payment will be made in full. |
Allowance for Loan Losses and R
Allowance for Loan Losses and Reserve for Unfunded Lending Commitments | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Allowance for Loan Losses and Reserve for Unfunded Lending Commitments | Allowance for Loan Losses and Reserve for Unfunded Lending Commitments Changes in the allowance for loan losses and the reserve for unfunded lending commitments as of the indicated dates and periods are presented below (dollars in thousands). The reserve for unfunded loan commitments is included in other liabilities. Six Months Ended Year Ended December 31, Six Months Ended Allowance for Loan Losses Balance, beginning of period $ 12,427 $ 12,600 $ 12,600 Provision for loan losses 700 400 150 Charge-offs (630 ) (964 ) (168 ) Recoveries 296 391 181 Balance, end of period $ 12,793 $ 12,427 $ 12,763 Reserve for Unfunded Lending Commitments Balance, beginning of period $ 163 $ 210 $ 210 Provision for (recovery of) loan losses 13 (47 ) (51 ) Charge-offs — — — Balance, end of period $ 176 $ 163 $ 159 The following table presents the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment at June 30, 2015 (dollars in thousands): Commercial Commercial Residential Consumer Unallocated Total Allowance for Loan Losses Balance as of December 31, 2014: $ 1,818 $ 6,814 $ 3,715 $ 80 $ — $ 12,427 Charge-offs — (473 ) (32 ) (125 ) — (630 ) Recoveries 21 105 102 68 — 296 Provision for loan losses 147 364 152 37 — 700 Balance as of June 30, 2015: $ 1,986 $ 6,810 $ 3,937 $ 60 $ — $ 12,793 Balance as of June 30, 2015: Allowance for Loan Losses Individually evaluated for impairment $ — $ 9 $ 23 $ — $ — $ 32 Collectively evaluated for impairment 1,984 6,401 3,387 60 — 11,832 Loans acquired with deteriorated credit quality 2 400 527 — — 929 Total $ 1,986 $ 6,810 $ 3,937 $ 60 $ — $ 12,793 Loans Individually evaluated for impairment $ 259 $ 1,858 $ 1,523 $ 15 $ — $ 3,655 Collectively evaluated for impairment 158,423 484,195 309,728 6,153 — 958,499 Loans acquired with deteriorated credit quality 333 12,805 7,393 220 — 20,751 Total $ 159,015 $ 498,858 $ 318,644 $ 6,388 $ — $ 982,905 The following table presents the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment at December 31, 2014 (dollars in thousands): Commercial Commercial Residential Consumer Unallocated Total Allowance for Loan Losses Balance as of December 31, 2013: $ 1,810 $ 6,819 $ 3,690 $ 99 $ 182 $ 12,600 Charge-offs (101 ) (510 ) (258 ) (95 ) — (964 ) Recoveries 51 66 191 83 — 391 Provision for loan losses 58 439 92 (7 ) (182 ) 400 Balance as of December 31, 2014: $ 1,818 $ 6,814 $ 3,715 $ 80 $ — $ 12,427 Balance as of December 31, 2014: Allowance for Loan Losses Individually evaluated for impairment $ — $ 161 $ 1 $ 3 $ — $ 165 Collectively evaluated for impairment 1,815 6,400 3,424 77 — 11,716 Loans acquired with deteriorated credit quality 3 253 290 — — 546 Total $ 1,818 $ 6,814 $ 3,715 $ 80 $ — $ 12,427 Loans Individually evaluated for impairment $ 7 $ 3,651 $ 863 $ 16 $ — $ 4,537 Collectively evaluated for impairment 126,774 429,660 259,796 5,225 — 821,455 Loans acquired with deteriorated credit quality 200 9,024 5,709 — — 14,933 Total $ 126,981 $ 442,335 $ 266,368 $ 5,241 $ — $ 840,925 The allowance for loan losses is allocated to loan segments based upon historical loss factors, risk grades on individual loans, portfolio analysis of smaller balance, homogenous loans, and qualitative factors. Qualitative factors include trends in delinquencies, nonaccrual loans, and loss rates; trends in volume and terms of loans, effects of changes in risk selection, underwriting standards, and lending policies; experience of lending officers and other lending staff; national, regional, and local economic trends and conditions; legal, regulatory and collateral factors; and concentrations of credit. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company records as goodwill the excess of the purchase price over the fair value of the identifiable net assets acquired. Impairment testing is performed annually, as well as when an event triggering impairment may have occurred. The Company performs its annual analysis as of June 30 each fiscal year. Accounting guidance permits preliminary assessment of qualitative factors to determine whether more substantial impairment testing is required. The Company chose to bypass the preliminary assessment and utilized a two-step process for impairment testing of goodwill. The first step tests for impairment, while the second step, if necessary, measures the impairment. No indicators of impairment were identified as of June 30, 2015 . Core deposit intangibles resulting from the MidCarolina acquisition in July 2011 were $3,112,000 and are being amortized on an accelerated basis over 120 months . Core deposit intangibles resulting from the MainStreet acquisition in January 2015 were $1,839,000 and are being amortized on an accelerated basis over 120 months . The changes in the carrying amount of goodwill and intangibles for the six months ended June 30, 2015 , are as follows (dollars in thousands): Goodwill Intangibles Balance as of December 31, 2014 $ 39,043 $ 2,045 Additions 5,167 1,839 Amortization — (601 ) Impairment — — Balance as of June 30, 2015 $ 44,210 $ 3,283 |
Short-term Borrowings
Short-term Borrowings | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings | Short-term Borrowings Short-term borrowings consist of customer repurchase agreements, overnight borrowings from the FHLB, and Federal Funds purchased. Customer repurchase agreements are collateralized by securities of the U.S. Government or its agencies or GSEs. They mature daily. The interest rates may be changed at the discretion of the Company. The securities underlying these agreements remain under the Company's control. Other short-term borrowings consist of overnight advances which contain floating interest rates that may change daily at the discretion of the FHLB. Federal Funds purchased are unsecured overnight borrowings from other financial institutions. There were no customer repurchase agreements acquired in the MainStreet acquisition. Short-term borrowings consisted of the following at June 30, 2015 and December 31, 2014 (dollars in thousands): June 30, 2015 December 31, 2014 Customer repurchase agreements $ 50,123 $ 53,480 $ 50,123 $ 53,480 |
Long-term Borrowings
Long-term Borrowings | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Borrowings | Long-term Borrowings Under the terms of its collateral agreement with the FHLB, the Company provides a blanket lien covering all of its residential first mortgage loans, second mortgage loans, home equity lines of credit, and commercial real estate loans. In addition, the Company pledges as collateral its capital stock in the FHLB and deposits with the FHLB. The Company has a line of credit with the FHLB equal to 30% of the Company's assets, subject to the amount of collateral pledged. As of June 30, 2015 , $418,277,000 in eligible collateral was pledged under the blanket floating lien agreement which covers both short-term and long-term borrowings. Long-term borrowings consisted of the following fixed rate, long-term advances as of June 30, 2015 and December 31, 2014 (dollars in thousands): June 30, 2015 December 31, 2014 Due by Advance Amount Weighted Due by Advance Amount Weighted November 2017 9,947 2.98 % November 2017 9,935 2.98 % $ 9,947 2.98 % $ 9,935 2.98 % The advance due in November 2017 is net of a fair value discount of $53,000 . The original discount recorded on July 1, 2011, was a result of the merger with MidCarolina. The adjustment to the face value is being amortized into interest expense over the life of the borrowing. There were no long-term borrowings acquired in the MainStreet acquisition and no borrowings were incurred to fund the acquisition. In the regular course of conducting its business, the Company takes deposits from political subdivisions of the states of Virginia and North Carolina. At June 30, 2015 , the Bank's public deposits totaled $140,950,000 . The Company is required to provide collateral to secure the deposits that exceed the insurance coverage provided by the Federal Deposit Insurance Corporation. This collateral can be provided in the form of certain types of government or agency bonds or letters of credit from the FHLB. At June 30, 2015 , the Company had $70,000,000 in letters of credit with the FHLB outstanding, as well as $132,382,000 in agency, state, and municipal securities pledged to provide collateral for such deposits. |
Trust Preferred Capital Notes
Trust Preferred Capital Notes | 6 Months Ended |
Jun. 30, 2015 | |
Trust Preferred Capital Notes [Abstract] | |
Trust Preferred Capital Notes | Trust Preferred Capital Notes On April 7, 2006, AMNB Statutory Trust I (the "AMNB Trust I"), a Delaware statutory trust and a wholly owned subsidiary of the Company, issued $ 20,000,000 of preferred securities (the "Trust Preferred Securities") in a private placement pursuant to an applicable exemption from registration. The Trust Preferred Securities mature on June 30, 2036 , but may be redeemed at the Company's option (which option became effective beginning on September 30, 2011). Initially, the securities required quarterly distributions by the AMNB Trust I to the holder of the Trust Preferred Securities at a fixed rate of 6.66% . Effective September 30, 2011, the rate resets quarterly at the three-month LIBOR plus 1.35% . Distributions are cumulative and will accrue from the date of original issuance, but may be deferred by the Company from time to time for up to 20 consecutive quarterly periods. The Company has guaranteed the payment of all required distributions on the Trust Preferred Securities. The proceeds of the Trust Preferred Securities received by the AMNB Trust I, along with proceeds of $ 619,000 received by the trust from the issuance of common securities by the trust to the Company, were used to purchase $20,619,000 of the Company's junior subordinated debt securities (the "Trust Preferred Capital Notes"), issued pursuant to junior subordinated debentures entered into between the Company and Wilmington Trust Company, as trustee. The proceeds of the Trust Preferred Capital Notes were used to fund the cash portion of the merger consideration to the former shareholders of Community First in connection with the Company's acquisition of that company, and for general corporate purposes. On July 1, 2011, in connection with the MidCarolina merger, the Company assumed $8,764,000 in junior subordinated debentures to MidCarolina Trust I and MidCarolina Trust II, two separate Delaware statutory trusts (the "MidCarolina Trusts"), to fully and unconditionally guarantee the preferred securities issued by the MidCarolina Trusts. These long-term obligations, which currently qualify as Tier 1 capital, constitute a full and unconditional guarantee by the Company of the MidCarolina Trusts' obligations. Neither the AMNB Trust I nor the MidCarolina Trusts were consolidated in the Company's financial statements. In accordance with FASB ASC 810-10-15-14, the Company did not eliminate through consolidation the Company's $619,000 equity investment in AMNB Trust I or the $264,000 equity investment in the MidCarolina Trusts. Instead, the Company reflected this equity investment in the "Accrued interest receivable and other assets" line item in the consolidated balance sheets. A description of the junior subordinated debt securities outstanding payable to the trusts is shown below as of June 30, 2015 and December 31, 2014 (dollars in thousands): Issuing Entity Date Issued Interest Rate Maturity Date Principal Amount June 30, 2015 December 31, 2014 AMNB Trust I 4/7/2006 Libor plus 6/30/2036 $ 20,619 $ 20,619 1.35 % MidCarolina Trust I 10/29/2002 Libor plus 11/7/2032 4,182 4,154 3.45 % MidCarolina Trust II 12/3/2003 Libor plus 10/7/2033 2,770 2,748 2.95 % $ 27,571 $ 27,521 The principal amounts reflected above for the MidCarolina Trusts (I and II) are net of fair value adjustments of $973,000 and $839,000 , respectively at June 30, 2015 . The original fair value adjustments of $1,197,000 and $1,021,000 were recorded as a result of the merger with MidCarolina on July 1, 2011, and are being amortized into interest expense over the remaining lives of the respective borrowings. |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation The Company's 2008 Stock Incentive Plan ("2008 Plan") was adopted by the Board of Directors of the Company on February 19, 2008, and approved by shareholders on April 22, 2008, at the Company's 2008 Annual Meeting of Shareholders. The 2008 Plan provides for the granting of restricted stock awards and incentive and non-statutory options to employees and directors on a periodic basis, at the discretion of the Board of Directors or a Board designated committee. The 2008 Plan authorizes the issuance of up to 500,000 shares of common stock. The 2008 Plan replaced the Company's stock option plan that was approved by the shareholders at the 1997 Annual Meeting. The prior stock option plan was terminated in 2006. Stock Options Accounting guidance requires that compensation cost relating to share-based payment transactions be recognized in the financial statements with measurement based upon the fair value of the equity or liability instruments issued. A summary of stock option transactions for the six months ended June 30, 2015 is as follows: Option Weighted Weighted Aggregate Outstanding at December 31, 2014 110,947 $ 26.08 Acquired in acquisition 43,086 20.02 Granted — — Exercised 14,642 18.07 Forfeited — — Expired — $ — Outstanding at June 30, 2015 139,391 25.05 1.89 years $ 219 Exercisable at June 30, 2015 139,391 $ 25.05 1.89 years $ 219 Replacement stock option awards representing 43,086 shares of the Company's common stock were granted in conjunction with the MainStreet acquisition. The value of the consideration transferred with the replacement awards was not determined as of June 30, 2015 ; therefore, the amounts of the consideration transferred and goodwill recorded in connection with the merger will be adjusted for the value of the replacement awards in the third quarter of 2015. The fair value of options is estimated at the date of grant using the Black-Scholes option pricing model and expensed over the options' vesting period. As of June 30, 2015 , there was no unrecognized compensation expenses related to nonvested stock option grants. Restricted Stock The Company from time-to-time grants shares of restricted stock to key employees and non-employee directors. These awards help align the interests of these employees and directors with the interests of the shareholders of the Company by providing economic value directly related to increases in the value of the Company's common stock. The value of the stock awarded is established as the fair market value of the stock at the time of the grant. The Company recognizes expense, equal to the total value of such awards, ratably over the vesting period of the stock grants. Restricted stock granted cliff vests over 24 to 36 months based on the term of the award. Nonvested restricted stock activity for the six months ended June 30, 2015 is summarized in the following table. Restricted Stock Shares Weighted Average Grant Date Value Nonvested at December 31, 2014 41,562 $ 21.39 Granted 16,649 12.92 Vested 15,536 19.51 Forfeited — — Nonvested at June 30, 2015 42,675 $ 18.77 As of June 30, 2015 and December 31, 2014 there was $515,000 and $327,000 in unrecognized compensation cost related to nonvested restricted stock granted under the 2008 Plan. The weighted average period over which this cost is expected to be recognized is 1.52 years . The share based compensation expense for nonvested restricted stock was $173,000 and $194,000 during the first six months of 2015 and 2014 , respectively . Starting in 2010, the Company began offering its outside directors alternatives with respect to director compensation. The regular monthly board retainer can be received in the form of either (i) $1,000 in cash or (ii) shares of immediately vested, but restricted stock with a market value of $1,563 . Monthly meeting fees can also be received as $600 per meeting in cash or $750 in immediately vested, but restricted stock. For 2015 , all 13 outside directors have elected to receive stock in lieu of cash for either all or part of their quarterly retainer or meeting fees. Only outside directors receive board fees. The Company issued 10,111 and 6,517 shares and recognized share based compensation expense of $229,000 and $149,000 during the first six months of 2015 and 2014 , respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following shows the weighted average number of shares used in computing earnings per common share and the effect on weighted average number of shares of potentially dilutive common stock. Potentially dilutive common stock had no effect on income available to common shareholders. The following tables present basic and diluted earnings per share for the three and six months period ended June 30, 2015 and 2014 . Three Months Ended June 30, 2015 2014 Shares Per Shares Per Basic 8,707,504 $ 0.33 7,872,079 $ 0.41 Effect of dilutive securities - stock options 8,430 — 7,775 — Diluted 8,715,934 $ 0.33 7,879,854 $ 0.41 Six Months Ended June 30, 2015 2014 Shares Per Shares Per Basic 8,713,528 0.73 7,886,232 0.85 Effect of dilutive securities - stock options 8,738 — 10,309 — Diluted 8,722,266 0.73 7,896,541 0.85 Stock options on common stock which were not included in computing diluted earnings per share for the six month periods ended June 30, 2015 and 2014 , because their effects were anti-dilutive, averaged 79,726 and 125,145 shares, respectively. Nonvested restricted stock is included in calculating basic earnings per share because the holder has voting rights and shares in non-forfeitable dividends during the vesting period. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The following information for the six months ended June 30, 2015 and June 30, 2014 pertains to the Company's non-contributory defined benefit pension plan which was frozen in 2009. If lump sum payments exceed the service cost plus interest cost, an additional settlement charge will apply (dollars in thousands): Components of Net Periodic Benefit Cost Six Months Ended June 30, 2015 2014 Service cost $ — $ — Interest cost 148 152 Expected return on plan assets (230 ) (234 ) Recognized net actuarial loss 308 36 Net periodic (benefit) cost $ 226 $ (46 ) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Determination of Fair Value 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 measurements and disclosures topic of FASB ASC 820, "Fair Value Measurement and Disclosures", the fair value of an 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 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 and liabilities. Level 2 – Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. Level 3 – Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. The following describes the valuation techniques used by the Company to measure certain assets and liabilities 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). If no observable market data is available, valuations are based upon third party model based techniques (Level 3). The following table presents the balances of assets and liabilities measured at fair value on a recurring basis at the dates indicated (dollars in thousands): Fair Value Measurements at June 30, 2015 Using Balance at June 30, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2015 Level 1 Level 2 Level 3 Assets: Securities available for sale: Federal agencies and GSEs $ 96,366 $ — $ 96,366 $ — Mortgage-backed and CMOs 60,401 — 60,401 — State and municipal 188,669 — 188,669 — Corporate 8,789 — 8,789 — Equity 1,370 — — 1,370 Total $ 355,595 $ — $ 354,225 $ 1,370 Fair Value Measurements at December 31, 2014 Using Balance at December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2014 Level 1 Level 2 Level 3 Assets: Securities available for sale: Federal agencies and GSEs $ 82,106 $ 2,995 $ 79,111 $ — Mortgage-backed and CMOs 57,425 — 57,425 — State and municipal 195,493 1,172 194,321 — Corporate 8,379 — 8,379 — Equity 1,313 — — 1,313 Total $ 344,716 $ 4,167 $ 339,236 $ 1,313 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Total Realized / Unrealized Gains Balances as of January 1, 2015 Net Income Other Comprehensive Income Purchases, Sales, Issuances and Settlements, Net Transfer In (Out) of Level 3 Balances as of June 30, 2015 Securities available for sale: Equity $ 1,313 $ — $ 57 $ — $ — $ 1,370 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 estimated fair 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 the six month period ended June 30, 2015 or the year ended December 31, 2014 . Gains and losses on the sale of loans are recorded within mortgage banking income on the Consolidated Statements of Income. 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. In addition, the impairment of a loan may be measured using a present value of future cash flows analysis (Level 3). 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, of one year or less, conducted by an independent, licensed appraiser using observable market data (Level 2). 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 receivable 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 : Measurement for fair values for other real estate owned are the same as real estate collateral discussed with impaired loans. The following table summarizes the Company's assets that were measured at fair value on a nonrecurring basis at the dates indicated (dollars in thousands): Fair Value Measurements at June 30, 2015 Using Balance at June 30, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2015 Level 1 Level 2 Level 3 Assets: Loans held for sale $ 2,720 $ — $ 2,720 $ — Impaired loans, net of valuation allowance 1,835 — — 1,835 Other real estate owned 2,113 — — 2,113 Fair Value Measurements at December 31, 2014 Using Balance at December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2014 Level 1 Level 2 Level 3 Assets: Loans held for sale $ 616 $ — $ 616 $ — Impaired loans, net of valuation allowance 1,705 — — 1,705 Other real estate owned 2,119 — — 2,119 The following tables summarize the Company's quantitative information about Level 3 fair value measurements at the dates indicated: Quantitative Information About Level 3 Fair Value Measurements for June 30, 2015 Assets Valuation Technique Unobservable Input Weighted Securities available for sale Consideration of equity conversion options Stock price in different rate environments 37 % Impaired loans Discounted appraised value Selling cost 6 % Discounted cash flows Market rate for borrower (discount rate) 6 % Other real estate owned Discounted appraised value Selling cost 6 % Quantitative Information About Level 3 Fair Value Measurements for December 31, 2014 Assets Valuation Technique Unobservable Input Weighted Securities available for sale Consideration of equity conversion options Stock price in different rate environments 31 % Impaired loans Discounted appraised value Selling cost 6 % Discounted cash flows Market rate for borrower (discount rate) 4 % Other real estate owned Discounted appraised value Selling cost 6 % The carrying values and estimated fair values of the Company's financial instruments at June 30, 2015 are as follows (dollars in thousands): Fair Value Measurements at June 30, 2015 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Carrying Value Level 1 Level 2 Level 3 Balance Financial Assets: Cash and cash equivalents $ 75,714 $ 75,714 $ — $ — $ 75,714 Securities available for sale 355,595 — 354,225 1,370 355,595 Restricted stock 5,329 — 5,329 — 5,329 Loans held for sale 2,720 — 2,720 — 2,720 Loans, net of allowance 970,112 — — 976,220 976,220 Bank owned life insurance 17,376 — 17,376 — 17,376 Accrued interest receivable 4,562 — 4,562 — 4,562 Financial Liabilities: Deposits $ 1,234,018 $ — $ 834,455 $ 400,782 $ 1,235,237 Repurchase agreements 50,123 — 50,123 — 50,123 Other borrowings 9,947 — — 40,425 40,425 Trust preferred capital notes 27,571 — — 21,353 21,353 Accrued interest payable 598 — 598 — 598 The carrying values and estimated fair values of the Company's financial instruments at December 31, 2014 are as follows (dollars in thousands): Fair Value Measurements at December 31, 2014 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Carrying Value Level 1 Level 2 Level 3 Balance Financial Assets: Cash and cash equivalents $ 67,303 $ 67,303 $ — $ — $ 67,303 Securities available for sale 344,716 4,167 339,236 1,313 344,716 Restricted stock 4,367 — 4,367 — 4,367 Loans held for sale 616 — 616 — 616 Loans, net of allowance 828,498 — — 832,708 832,708 Bank owned life insurance 15,193 — 15,193 — 15,193 Accrued interest receivable 4,534 — 4,534 — 4,534 Financial Liabilities: Deposits $ 1,075,837 $ — $ 712,019 $ 365,310 $ 1,077,329 Repurchase agreements 53,480 — 53,480 — 53,480 Other borrowings 9,935 — — 10,432 10,432 Trust preferred capital notes 27,521 — — 22,009 22,009 Accrued interest payable 587 — 587 — 587 The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments: Cash and cash equivalents . The carrying amount is a reasonable estimate of fair value. Securities . Fair values are based on quoted market prices or dealer quotes. Loans held for sale . The carrying amount is a reasonable estimate of fair value. Loans . For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair values for fixed-rate loans are estimated based upon discounted cash flow analysis, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Fair values for nonperforming loans are estimated using discounted cash flow analysis or underlying collateral values, where applicable. Bank owned life insurance . Bank owned life insurance represents insurance policies on officers, directors, and past directors of the Company. The cash values of the policies are estimates using information provided by insurance carriers. These policies are carried at their cash surrender value, which approximates the fair value. Accrued interest receivable . The carrying amount is a reasonable estimate of fair value. Deposits . The fair value of demand deposits, savings deposits, and money market deposits equals the carrying value. The fair value of fixed-rate certificates of deposit is estimated by discounting the future cash flows using the current rates at which similar deposit instruments would be offered to depositors for the same remaining maturities. Repurchase agreements . The carrying amount is a reasonable estimate of fair value. Other borrowings . The fair values of other borrowings are estimated using discounted cash flow analyses based on the interest rates for similar types of borrowing arrangements. Trust preferred capital notes . Fair value is calculated by discounting the future cash flows using the estimated current interest rates at which similar securities would be issued. Accrued interest payable . The carrying amount is a reasonable estimate of fair value. Off-balance sheet instruments . The fair value of 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 June 30, 2015 and December 31, 2014 , the fair value of off-balance sheet instruments was deemed immaterial, and therefore was not included in the previous table. The Company assumes interest rate risk (the risk that interest rates will change) in its normal operations. As a result, the fair values of the Company's financial instruments will change when interest rates change and that change may be either favorable or unfavorable to the Company. |
Segment and Related Information
Segment and Related Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment and Related Information | Segment and Related Information The Company has two reportable segments, (i) community banking and (ii) trust and investment services. Community banking involves making loans to and generating deposits from individuals and businesses. All assets and liabilities of the Company are allocated to community banking. Investment income from securities is also allocated to the community banking segment. Loan fee income, service charges from deposit accounts, and non-deposit fees such as automated teller machine fees and insurance commissions generate additional income for the community banking segment. Trust and investment services include estate planning, trust account administration, investment management, and retail brokerage. Investment management services include purchasing equity, fixed income, and mutual fund investments for customer accounts. The trust and investment services segment receives fees for investment and administrative services. Amounts shown in the "Other" column includes activities of the Company which are primarily debt service on trust preferred securities and corporate items. Intersegment eliminations primarily consist of the Company's investment in the Bank. Segment information as of and for the three and six months ended June 30, 2015 and 2014 (unaudited), is shown in the following tables (dollars in thousands): Three Months Ended June 30, 2015 Community Trust and Other Intersegment Total Interest income $ 13,822 $ — $ 15 $ — $ 13,837 Interest expense 1,267 — 188 — 1,455 Noninterest income 2,038 1,215 5 — 3,258 Income (loss) before income taxes 3,647 573 (322 ) — 3,898 Net income (loss) 2,671 422 (213 ) — 2,880 Depreciation and amortization 739 3 — — 742 Total assets 1,522,208 — 222,526 (220,378 ) 1,524,356 Goodwill 44,210 — — — 44,210 Capital expenditures 232 21 — — 253 Three Months Ended June 30, 2014 Community Trust and Other Intersegment Total Interest income $ 11,765 $ — $ 15 $ — $ 11,780 Interest expense 1,244 — 185 — 1,429 Noninterest income 1,539 1,156 5 — 2,700 Income (loss) before income taxes 4,079 777 (320 ) — 4,536 Net income (loss) 2,891 553 (211 ) — 3,233 Depreciation and amortization 751 2 — — 753 Total assets 1,298,664 — 199,621 (197,637 ) 1,300,648 Goodwill 39,043 — — — 39,043 Capital expenditures 147 — — — 147 Six Months Ended June 30, 2015 Community Trust and Other Intersegment Total Interest income $ 27,646 $ — $ 30 $ — $ 27,676 Interest expense 2,544 — 372 — 2,916 Noninterest income 4,021 2,383 10 — 6,414 Income (loss) before income taxes 8,154 1,223 (592 ) — 8,785 Net income (loss) 5,896 890 (391 ) — 6,395 Depreciation and amortization 1,477 6 — — 1,483 Total assets 1,522,208 — 222,526 (220,378 ) 1,524,356 Goodwill 44,210 — — — 44,210 Capital expenditures 580 21 — — 601 Six Months Ended June 30, 2014 Community Trust and Other Intersegment Total Interest income $ 23,704 $ — $ 30 $ — $ 23,734 Interest expense 2,555 — 369 — 2,924 Noninterest income 2,970 2,423 10 — 5,403 Income (loss) before income taxes 8,150 1,651 (526 ) — 9,275 Net income (loss) 5,840 1,190 (347 ) — 6,683 Depreciation and amortization 1,513 5 — — 1,518 Total assets 1,298,664 — 199,621 (197,637 ) 1,300,648 Goodwill 39,043 — — — 39,043 Capital expenditures 266 — — — 266 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Six Months Ended 2015 2014 Supplemental Schedule of Cash and Cash Equivalents: Cash and due from banks $ 24,548 $ 21,295 Interest-bearing deposits in other banks 50,758 22,948 Federal funds sold 408 — Cash and Cash Equivalents $ 75,714 $ 44,243 Supplemental Disclosure of Cash Flow Information: Cash paid for: Interest on deposits and borrowed funds $ 2,905 $ 2,943 Income taxes 2,415 2,439 Noncash investing and financing activities: Transfer of loans to other real estate owned 1,047 386 Unrealized gain (loss) on securities available for sale (1,941 ) 4,042 Non-cash transactions related to acquisitions: Assets acquired: Investment securities 18,800 — Restricted stock 738 — Loans 114,902 — Premises and equipment 1,475 — Deferred income taxes 2,683 — Core deposit intangible 1,839 — Other real estate owned 168 — Bank owned life insurance 1,955 — Other assets 917 — Liabilities assumed: Deposits 137,323 — Other liabilities 3,076 — Consideration: Issuance of common stock 20,483 — Fair value of replacement stock options — — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Changes in each component of accumulated other comprehensive income ("AOCI") for the three and six months ended June 30, 2015 and 2014 (unaudited) were as follows (dollars in thousands): For the Three Month Period Net Unrealized Gains (Losses) on Securities Adjustments Related to Pension Benefits Accumulated Other Comprehensive Income Balance at March 31, 2014 $ 4,729 $ (1,058 ) $ 3,671 Net unrealized gains on securities available for sale, net of tax, $848 1,574 — 1,574 Reclassification adjustment for gains on securities, net of tax, $(52) (98 ) — (98 ) Balance at June 30, 2014 $ 6,205 $ (1,058 ) $ 5,147 Balance at March 31, 2015 $ 6,446 $ (2,181 ) $ 4,265 Net unrealized losses on securities available for sale, net of tax, $(920) (1,708 ) — (1,708 ) Reclassification adjustment for gains on securities, net of tax, $(82) (155 ) — (155 ) Balance at June 30, 2015 $ 4,583 $ (2,181 ) $ 2,402 For the Six Month Period Net Unrealized Gains (Losses) on Securities Adjustments Related to Pension Benefits Accumulated Other Comprehensive Income December 31, 2013 $ 3,578 $ (1,058 ) $ 2,520 Net unrealized gains on securities available for sale, net of tax, $1,481 2,750 — 2,750 Reclassification adjustment for gains on securities, net of tax, $(66) (123 ) — (123 ) Balance at June 30, 2014 $ 6,205 $ (1,058 ) $ 5,147 Balance at December 31, 2014 $ 5,845 $ (2,181 ) $ 3,664 Net unrealized losses on securities available for sale, net of tax, $(488) (906 ) — (906 ) Reclassification adjustment for gains on securities, net of tax, $(191) (356 ) — (356 ) Balance at June 30, 2015 $ 4,583 $ (2,181 ) $ 2,402 Reclassifications Out of Accumulated Other Comprehensive Income For the three and six month periods ending June 30, 2015 (dollars in thousands) For the Three Month Period Ended June 30, 2015 Amount Reclassified from AOCI Affected Line Item in the Statement of Where Net Income is Presented Details about AOCI Components Available for sale securities: Realized gain on sale of securities $ 237 Securities gains, net (82 ) Income tax expense Total reclassifications $ 155 Net of tax For the Six Month Period Ended June 30, 2015 Amount Reclassified from AOCI Affected Line Item in the Statement of Where Net Income is Presented Details about AOCI Components Available for sale securities: Realized gain on sale of securities $ 547 Securities gains, net (191 ) Income tax expense Total reclassifications $ 356 Net of tax |
Accounting Policies - (Policies
Accounting Policies - (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2014, the Financial Accounting Standards Board (the" FASB") issued Accounting Standards Update ("ASU") No. 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” This ASU aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. The new guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. The amendments in the ASU also require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. Additional disclosures will be required for the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The amendments in this ASU are effective for the first interim or annual period beginning after December 15, 2014; however, the disclosure for transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. Early adoption is not permitted. The adoption of the new guidance did not have a material impact on the Company’s consolidated financial statements. In June 2014, the FASB issued ASU No. 2014-12, “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” The new guidance applies to reporting entities that grant employees share-based payments in which the terms of the award allow a performance target to be achieved after the requisite service period. The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Existing guidance in “Compensation - Stock Compensation (Topic 718),” should be applied to account for these types of awards. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted and reporting entities may choose to apply the amendments in the ASU either on a prospective or retrospective basis. The Company is currently assessing the impact that ASU 2014-12 will have on the Company’s consolidated financial statements. 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 a material impact on its consolidated financial statements. In November 2014, the FASB issued ASU No. 2014-16, “Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity.” The amendments in this ASU do not change the current criteria in GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. The amendments clarify how current GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. The amendments in this ASU also clarify that, in evaluating the nature of a host contract, an entity should assess the substance of the relevant terms and features (i.e., the relative strength of the debt-like or equity-like terms and features given the facts and circumstances) when considering how to weight those terms and features. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption, including adoption in an interim period, is permitted. The Company does not expect the adoption of ASU 2014-16 to have a material impact on its consolidated financial statements. In January 2015, the FASB issued ASU No. 2015-01, “Income Statement-Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” The amendments in this ASU eliminate from GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of ASU 2015-01 to have a material impact on its consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” The amendments in this ASU are intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB Accounting Standards Codification and improves current GAAP by placing more emphasis on risk of loss when determining a controlling financial interest, reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity ("VIE"), and changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. ASU 2015-02 may be applied retrospectively in previously issued financial statements for one or more years with a cumulative-effect adjustment to retained earnings as of the beginning of the first year restated. The Company does not expect the adoption of ASU 2015-02 to have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The amendments in this ASU are intended to simplify the presentation of debt issuance costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The amendments in this ASU are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of ASU 2015-03 to have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” The amendments in this ASU provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments do not change the accounting for a customer’s accounting for service contracts. As a result of the amendments, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. The amendments in this ASU are effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. An entity can elect to adopt the amendments either: (1) prospectively to all arrangements entered into or materially modified after the effective date; or (2) retrospectively. The Company is currently assessing the impact that ASU 2015-05 will have on its consolidated financial statements. In May 2015, the FASB issued ASU No. 2015-08, “Business Combinations (Topic 805): Pushdown Accounting - Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115.” The amendments in ASU 2015-08 amend various Securities and Exchange Commission ("SEC") paragraphs pursuant to the issuance of Staff Accounting Bulletin No. 115, Topic 5: Miscellaneous Accounting, regarding various pushdown accounting issues, and did not have a material impact on the Company’s consolidated financial statements. |
Acquisition of MainStreet (Tabl
Acquisition of MainStreet (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of consideration paid, and the fair value of identifiable assets acquired and liabilities assumed | In connection with the merger, the consideration paid, and the fair value of identifiable assets acquired and liabilities assumed as of the merger date are summarized in the following table (dollars in thousands): Consideration Paid: Common shares issued (825,586) $ 20,483 Cash paid to shareholders 5,935 Value of consideration 26,418 Assets acquired: Cash and cash equivalents 18,173 Investment securities 18,800 Restricted stock 738 Loans 114,902 Premises and equipment 1,475 Deferred income taxes 2,683 Core deposit intangible 1,839 Other real estate owned 168 Banked owned life insurance 1,955 Other assets 917 Total assets 161,650 Liabilities assumed: Deposits 137,323 Other liabilities 3,076 Total liabilities 140,399 Net assets acquired 21,251 Goodwill resulting from merger with MainStreet $ 5,167 |
Schedule of acquired loans | The following table details the acquired loans that are accounted for in accordance with FASB ASC 310-30 as of January 1, 2015 (dollars in thousands): Contractually required principal and interest at acquisition $ 13,504 Contractual cash flows not expected to be collected (nonaccretable difference) 3,298 Expected cash flows at acquisition 10,206 Interest component of expected cash flows (accretable yield) 1,208 Fair value of acquired loans accounted for under FASB ASC 310-30 $ 8,998 |
Schedule of Pro Forma information | In particular, expected operational cost savings are not reflected in the pro forma amounts (dollars in thousands). Pro forma June 30, 2015 June 30, 2014 Net interest income $ 25,268 $ 24,791 Provision for loan loss (700 ) (150 ) Non-interest income 6,414 5,851 Non-interest expense and income taxes (24,477 ) (22,777 ) Net income $ 6,505 $ 7,715 Pro forma June 30, 2015 June 30, 2014 Net interest income $ 12,698 $ 12,370 Provision for loan loss (100 ) (150 ) Non-interest income 3,258 2,937 Non-interest expense and income taxes (12,950 ) (11,338 ) Net income $ 2,906 $ 3,819 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and estimated fair value of investments in debt securities | The amortized cost and fair value of investments in debt and equity securities at June 30, 2015 and December 31, 2014 were as follows (dollars in thousands): June 30, 2015 Amortized Unrealized Unrealized Securities available for sale: Federal agencies and GSEs $ 96,520 $ 295 $ 449 $ 96,366 Mortgage-backed and CMOs 59,462 1,114 175 60,401 State and municipal 182,771 6,074 176 188,669 Corporate 8,790 37 38 8,789 Equity securities 1,000 370 — 1,370 Total securities available for sale $ 348,543 $ 7,890 $ 838 $ 355,595 December 31, 2014 Amortized Unrealized Unrealized Securities available for sale: Federal agencies and GSEs $ 81,958 $ 252 $ 104 $ 82,106 Mortgage-backed and CMOs 56,289 1,248 112 57,425 State and municipal 188,060 7,523 90 195,493 Corporate 8,416 16 53 8,379 Equity securities 1,000 313 — 1,313 Total securities available for sale $ 335,723 $ 9,352 $ 359 $ 344,716 |
Cost of restricted stock | The cost of restricted stock at June 30, 2015 and December 31, 2014 were as follows (dollars in thousands): June 30, December 31, FRB stock $ 3,527 $ 2,742 FHLB stock 1,802 1,625 Total restricted stock $ 5,329 $ 4,367 |
Schedule of fair value and gross unrealized losses by investment category and length of time | The table below shows gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position, at December 31, 2014 (dollars in thousands): Total Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized Fair Unrealized Federal agencies and GSEs $ 28,979 $ 104 $ 21,449 $ 35 $ 7,530 $ 69 Mortgage-backed and CMOs 7,182 112 1,171 13 6,011 99 State and municipal 20,542 90 15,836 60 4,706 30 Corporate 5,032 53 2,273 4 2,759 49 Total $ 61,735 $ 359 $ 40,729 $ 112 $ 21,006 $ 247 The following table shows fair value and gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2015 . The reference point for determining when securities are in an unrealized loss position is month-end. Therefore, it is possible that a security's market value exceeded its amortized cost on other days during the past twelve-month period (dollars in thousands). Total Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized Fair Unrealized Federal agencies and GSEs $ 39,979 $ 449 $ 37,881 $ 447 $ 2,098 $ 2 Mortgage-backed and CMOs 14,115 175 11,646 133 2,469 42 State and municipal 24,998 176 24,998 176 — — Corporate 2,735 38 1,143 10 1,592 28 Total $ 81,827 $ 838 $ 75,668 $ 766 $ 6,159 $ 72 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Schedule of loans, excluding loans held for sale | Loans, excluding loans held for sale, as of June 30, 2015 and December 31, 2014 , were comprised of the following (dollars in thousands): June 30, December 31, 2014 Commercial $ 159,015 $ 126,981 Commercial real estate: Construction and land development 66,543 50,863 Commercial real estate 432,315 391,472 Residential real estate: Residential 220,778 175,293 Home equity 97,866 91,075 Consumer 6,388 5,241 Total loans $ 982,905 $ 840,925 |
Schedule stating outstanding principal balance and the carrying amount of loan acquired | The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheets at June 30, 2015 and December 31, 2014 are as follows (dollars in thousands): June 30, December 31, 2014 Outstanding principal balance $ 173,907 $ 84,892 Carrying amount 161,904 78,111 The outstanding principal balance and related carrying amount of acquired impaired loans, for which the Company applies FASB ASC 310-30, to account for interest earned, at June 30, 2015 and December 31, 2014 are as follows (dollars in thousands): June 30, December 31, 2014 Outstanding principal balance $ 26,840 $ 18,357 Carrying amount 20,751 14,933 |
Schedule of changes in the accretable yield on acquired impaired loans | The following table presents changes in the accretable yield on acquired impaired loans, for which the Company applies FASB ASC 310-30, for the six months ended June 30, 2015 (dollars in thousands): Accretable Yield Balance at December 31, 2014 $ 1,440 Additions from merger with MainStreet 1,208 Accretion (428 ) Reclassification from nonaccretable difference 3,237 Balance at June 30, 2015 $ 5,457 |
Schedule of analysis by portfolio segment of the entity's past due loans | The following table shows an analysis by portfolio segment of the Company's past due loans at June 30, 2015 (dollars in thousands): 30- 59 Days 60-89 Days 90 Days + Non- Total Current Total Commercial $ 68 $ — $ — $ 254 $ 322 $ 158,693 $ 159,015 Commercial real estate: Construction and land development — — — 276 276 66,267 66,543 Commercial real estate 593 355 — 1,937 2,885 429,430 432,315 Residential: Residential 454 551 — 582 1,587 219,191 220,778 Home equity 11 198 — 711 920 96,946 97,866 Consumer 38 1 — 12 51 6,337 6,388 Total $ 1,164 $ 1,105 $ — $ 3,772 $ 6,041 $ 976,864 $ 982,905 The following table shows an analysis by portfolio segment of the Company's past due loans at December 31, 2014 (dollars in thousands): 30- 59 Days 60-89 Days 90 Days + Non- Total Current Total Commercial $ 114 $ 165 $ — $ — $ 279 $ 126,702 $ 126,981 Commercial real estate: Construction and land development 44 269 — 279 592 50,271 50,863 Commercial real estate 257 — — 3,010 3,267 388,205 391,472 Residential: Residential 390 325 — 560 1,275 174,018 175,293 Home equity 223 60 — 262 545 90,530 91,075 Consumer 1 42 — 1 44 5,197 5,241 Total $ 1,029 $ 861 $ — $ 4,112 $ 6,002 $ 834,923 $ 840,925 |
Schedule of impaired loan balances by portfolio segment | The following table presents the Company's impaired loan balances by portfolio segment, excluding loans acquired with deteriorated credit quality, at June 30, 2015 (dollars in thousands): Recorded Unpaid Related Average Interest With no related allowance recorded: Commercial $ 259 $ 261 $ — $ 197 $ 5 Commercial real estate: Construction and land development 260 313 — 448 — Commercial real estate 254 522 — 1,146 — Residential: Residential 353 353 — 413 — Home equity 661 661 — 637 — Consumer 1 1 — 29 — $ 1,788 $ 2,111 $ — $ 2,870 $ 5 With a related allowance recorded: Commercial — — — — — Commercial real estate: Construction and land development 415 415 1 519 15 Commercial real estate 929 973 8 871 12 Residential Residential 509 511 23 429 6 Home equity — — — — — Consumer 14 14 — 15 — $ 1,867 $ 1,913 $ 32 $ 1,834 $ 33 Total: Commercial $ 259 $ 261 $ — $ 197 $ 5 Commercial real estate: Construction and land development 675 728 1 967 15 Commercial real estate 1,183 1,495 8 2,017 12 Residential: Residential 862 864 23 842 6 Home equity 661 661 — 637 — Consumer 15 15 — 44 — $ 3,655 $ 4,024 $ 32 $ 4,704 $ 38 The following table presents the Company's impaired loan balances by portfolio segment, excluding loans acquired with deteriorated credit quality, at December 31, 2014 (dollars in thousands): Recorded Unpaid Related Average Interest With no related allowance recorded: Commercial $ 7 $ 7 $ — $ 12 $ 1 Commercial real estate: Construction and land development 280 325 — 448 — Commercial real estate 1,520 1,797 — 1,844 — Residential: Residential 603 603 — 723 8 Home equity 256 256 — 316 — Consumer 1 1 — 2 — $ 2,667 $ 2,989 $ — $ 3,345 $ 9 With a related allowance recorded: Commercial $ — $ — $ — $ — $ — Commercial real estate: Construction and land development 576 577 12 593 34 Commercial real estate 1,275 1,422 149 1,297 8 Residential: Residential 4 4 1 4 — Home equity — — — — — Consumer 15 15 3 17 1 $ 1,870 $ 2,018 $ 165 $ 1,911 $ 43 Total: Commercial $ 7 $ 7 $ — $ 12 $ 1 Commercial real estate: Construction and land development 856 902 12 1,041 34 Commercial real estate 2,795 3,219 149 3,141 8 Residential: Residential 607 607 1 727 8 Home equity 256 256 — 316 — Consumer 16 16 3 19 1 $ 4,537 $ 5,007 $ 165 $ 5,256 $ 52 |
Schedule of detail of loans modified as troubled debt restructurings | The following tables show the detail of loans modified as troubled debt restructurings ("TDRs") during the three and six months ended June 30, 2015 included in the impaired loan balances (dollars in thousands). Loans Modified as a TDR for the Three Months Ended June 30, 2015 Loan Type Number of Contracts Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate 2 249 249 Construction and land development — — — Home Equity — — — Residential real estate 2 51 51 Consumer — — — Total 4 $ 300 $ 300 Loans Modified as a TDR for the Six Months Ended June 30, 2015 Loan Type Number of Contracts Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate 3 256 255 Construction and land development — — — Home Equity — — — Residential real estate 4 394 389 Consumer — — — Total 7 $ 650 $ 644 The following tables show the detail of loans modified as TDRs d uring the three and six months ended June 30, 2014 included in the impaired loan balances (dollars in thousands): Loans Modified as a TDR for the Three Months Ended June 30, 2014 Loan Type Number of Contracts Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate 1 182 182 Construction and land development — — — Home Equity 1 8 8 Residential real estate 2 117 117 Consumer 1 4 4 Total 5 $ 311 $ 311 Loans Modified as a TDR for the Six Months Ended June 30, 2014 Loan Type Number of Contracts Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate 1 182 182 Construction and land development — — — Home Equity 1 8 8 Residential real estate 2 117 117 Consumer 1 4 4 Total 5 $ 311 $ 311 |
Schedule of commercial loan portfolio broken down by internal risk grading | The following table shows the Company's loan portfolio broken down by internal risk grading as of June 30, 2015 (dollars in thousands): Commercial and Consumer Credit Exposure Credit Risk Profile by Internally Assigned Grade Commercial Commercial Commercial Residential Home Pass $ 156,136 $ 60,595 $ 418,858 $ 198,952 $ 95,341 Special Mention 2,606 2,363 7,103 17,570 1,478 Substandard 273 3,585 6,354 4,256 1,047 Doubtful — — — — — Total $ 159,015 $ 66,543 $ 432,315 $ 220,778 $ 97,866 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Consumer Performing $ 6,337 Nonperforming 51 Total $ 6,388 The following table shows the Company's loan portfolio broken down by internal risk grading as of December 31, 2014 (dollars in thousands): Commercial and Consumer Credit Exposure Credit Risk Profile by Internally Assigned Grade Commercial Commercial Real Estate Construction Commercial Real Estate Other Residential Home Equity Pass $ 125,405 $ 45,534 $ 382,607 $ 165,367 $ 88,646 Special Mention 1,569 569 4,889 6,709 1,801 Substandard 7 4,760 3,976 3,217 628 Doubtful — — — — — Total $ 126,981 $ 50,863 $ 391,472 $ 175,293 $ 91,075 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Consumer Performing $ 5,240 Nonperforming 1 Total $ 5,241 |
Allowance for Loan Losses and29
Allowance for Loan Losses and Reserve for Unfunded Lending Commitments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Schedule of changes in the allowance for loan losses | Changes in the allowance for loan losses and the reserve for unfunded lending commitments as of the indicated dates and periods are presented below (dollars in thousands). The reserve for unfunded loan commitments is included in other liabilities. Six Months Ended Year Ended December 31, Six Months Ended Allowance for Loan Losses Balance, beginning of period $ 12,427 $ 12,600 $ 12,600 Provision for loan losses 700 400 150 Charge-offs (630 ) (964 ) (168 ) Recoveries 296 391 181 Balance, end of period $ 12,793 $ 12,427 $ 12,763 Reserve for Unfunded Lending Commitments Balance, beginning of period $ 163 $ 210 $ 210 Provision for (recovery of) loan losses 13 (47 ) (51 ) Charge-offs — — — Balance, end of period $ 176 $ 163 $ 159 The following table presents the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment at June 30, 2015 (dollars in thousands): Commercial Commercial Residential Consumer Unallocated Total Allowance for Loan Losses Balance as of December 31, 2014: $ 1,818 $ 6,814 $ 3,715 $ 80 $ — $ 12,427 Charge-offs — (473 ) (32 ) (125 ) — (630 ) Recoveries 21 105 102 68 — 296 Provision for loan losses 147 364 152 37 — 700 Balance as of June 30, 2015: $ 1,986 $ 6,810 $ 3,937 $ 60 $ — $ 12,793 Balance as of June 30, 2015: Allowance for Loan Losses Individually evaluated for impairment $ — $ 9 $ 23 $ — $ — $ 32 Collectively evaluated for impairment 1,984 6,401 3,387 60 — 11,832 Loans acquired with deteriorated credit quality 2 400 527 — — 929 Total $ 1,986 $ 6,810 $ 3,937 $ 60 $ — $ 12,793 Loans Individually evaluated for impairment $ 259 $ 1,858 $ 1,523 $ 15 $ — $ 3,655 Collectively evaluated for impairment 158,423 484,195 309,728 6,153 — 958,499 Loans acquired with deteriorated credit quality 333 12,805 7,393 220 — 20,751 Total $ 159,015 $ 498,858 $ 318,644 $ 6,388 $ — $ 982,905 The following table presents the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment at December 31, 2014 (dollars in thousands): Commercial Commercial Residential Consumer Unallocated Total Allowance for Loan Losses Balance as of December 31, 2013: $ 1,810 $ 6,819 $ 3,690 $ 99 $ 182 $ 12,600 Charge-offs (101 ) (510 ) (258 ) (95 ) — (964 ) Recoveries 51 66 191 83 — 391 Provision for loan losses 58 439 92 (7 ) (182 ) 400 Balance as of December 31, 2014: $ 1,818 $ 6,814 $ 3,715 $ 80 $ — $ 12,427 Balance as of December 31, 2014: Allowance for Loan Losses Individually evaluated for impairment $ — $ 161 $ 1 $ 3 $ — $ 165 Collectively evaluated for impairment 1,815 6,400 3,424 77 — 11,716 Loans acquired with deteriorated credit quality 3 253 290 — — 546 Total $ 1,818 $ 6,814 $ 3,715 $ 80 $ — $ 12,427 Loans Individually evaluated for impairment $ 7 $ 3,651 $ 863 $ 16 $ — $ 4,537 Collectively evaluated for impairment 126,774 429,660 259,796 5,225 — 821,455 Loans acquired with deteriorated credit quality 200 9,024 5,709 — — 14,933 Total $ 126,981 $ 442,335 $ 266,368 $ 5,241 $ — $ 840,925 |
Goodwill and Other Intangible30
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in carrying amount of goodwill and intangibles | The changes in the carrying amount of goodwill and intangibles for the six months ended June 30, 2015 , are as follows (dollars in thousands): Goodwill Intangibles Balance as of December 31, 2014 $ 39,043 $ 2,045 Additions 5,167 1,839 Amortization — (601 ) Impairment — — Balance as of June 30, 2015 $ 44,210 $ 3,283 |
Short-term Borrowings (Tables)
Short-term Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of short-term borrowings | Short-term borrowings consisted of the following at June 30, 2015 and December 31, 2014 (dollars in thousands): June 30, 2015 December 31, 2014 Customer repurchase agreements $ 50,123 $ 53,480 $ 50,123 $ 53,480 |
Long-term Borrowings (Tables)
Long-term Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of long-term borrowings | Long-term borrowings consisted of the following fixed rate, long-term advances as of June 30, 2015 and December 31, 2014 (dollars in thousands): June 30, 2015 December 31, 2014 Due by Advance Amount Weighted Due by Advance Amount Weighted November 2017 9,947 2.98 % November 2017 9,935 2.98 % $ 9,947 2.98 % $ 9,935 2.98 % |
Trust Preferred Capital Notes (
Trust Preferred Capital Notes (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Trust Preferred Capital Notes [Abstract] | |
Schedule of junior subordinated debt securities outstanding payable | A description of the junior subordinated debt securities outstanding payable to the trusts is shown below as of June 30, 2015 and December 31, 2014 (dollars in thousands): Issuing Entity Date Issued Interest Rate Maturity Date Principal Amount June 30, 2015 December 31, 2014 AMNB Trust I 4/7/2006 Libor plus 6/30/2036 $ 20,619 $ 20,619 1.35 % MidCarolina Trust I 10/29/2002 Libor plus 11/7/2032 4,182 4,154 3.45 % MidCarolina Trust II 12/3/2003 Libor plus 10/7/2033 2,770 2,748 2.95 % $ 27,571 $ 27,521 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of summary of stock option transactions | A summary of stock option transactions for the six months ended June 30, 2015 is as follows: Option Weighted Weighted Aggregate Outstanding at December 31, 2014 110,947 $ 26.08 Acquired in acquisition 43,086 20.02 Granted — — Exercised 14,642 18.07 Forfeited — — Expired — $ — Outstanding at June 30, 2015 139,391 25.05 1.89 years $ 219 Exercisable at June 30, 2015 139,391 $ 25.05 1.89 years $ 219 |
Schedule of nonvested restricted stock activity | Nonvested restricted stock activity for the six months ended June 30, 2015 is summarized in the following table. Restricted Stock Shares Weighted Average Grant Date Value Nonvested at December 31, 2014 41,562 $ 21.39 Granted 16,649 12.92 Vested 15,536 19.51 Forfeited — — Nonvested at June 30, 2015 42,675 $ 18.77 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share | The following tables present basic and diluted earnings per share for the three and six months period ended June 30, 2015 and 2014 . Three Months Ended June 30, 2015 2014 Shares Per Shares Per Basic 8,707,504 $ 0.33 7,872,079 $ 0.41 Effect of dilutive securities - stock options 8,430 — 7,775 — Diluted 8,715,934 $ 0.33 7,879,854 $ 0.41 Six Months Ended June 30, 2015 2014 Shares Per Shares Per Basic 8,713,528 0.73 7,886,232 0.85 Effect of dilutive securities - stock options 8,738 — 10,309 — Diluted 8,722,266 0.73 7,896,541 0.85 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of components of net periodic benefit cost | If lump sum payments exceed the service cost plus interest cost, an additional settlement charge will apply (dollars in thousands): Components of Net Periodic Benefit Cost Six Months Ended June 30, 2015 2014 Service cost $ — $ — Interest cost 148 152 Expected return on plan assets (230 ) (234 ) Recognized net actuarial loss 308 36 Net periodic (benefit) cost $ 226 $ (46 ) |
Fair Value of Financial Instr37
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value assets and liabilities measured on recurring basis | The following table presents the balances of assets and liabilities measured at fair value on a recurring basis at the dates indicated (dollars in thousands): Fair Value Measurements at June 30, 2015 Using Balance at June 30, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2015 Level 1 Level 2 Level 3 Assets: Securities available for sale: Federal agencies and GSEs $ 96,366 $ — $ 96,366 $ — Mortgage-backed and CMOs 60,401 — 60,401 — State and municipal 188,669 — 188,669 — Corporate 8,789 — 8,789 — Equity 1,370 — — 1,370 Total $ 355,595 $ — $ 354,225 $ 1,370 Fair Value Measurements at December 31, 2014 Using Balance at December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2014 Level 1 Level 2 Level 3 Assets: Securities available for sale: Federal agencies and GSEs $ 82,106 $ 2,995 $ 79,111 $ — Mortgage-backed and CMOs 57,425 — 57,425 — State and municipal 195,493 1,172 194,321 — Corporate 8,379 — 8,379 — Equity 1,313 — — 1,313 Total $ 344,716 $ 4,167 $ 339,236 $ 1,313 |
Schedule of fair value measurements using significant unobservable inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Total Realized / Unrealized Gains Balances as of January 1, 2015 Net Income Other Comprehensive Income Purchases, Sales, Issuances and Settlements, Net Transfer In (Out) of Level 3 Balances as of June 30, 2015 Securities available for sale: Equity $ 1,313 $ — $ 57 $ — $ — $ 1,370 |
Schedule of assets that were measured at fair value on a nonrecurring basis | The following table summarizes the Company's assets that were measured at fair value on a nonrecurring basis at the dates indicated (dollars in thousands): Fair Value Measurements at June 30, 2015 Using Balance at June 30, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2015 Level 1 Level 2 Level 3 Assets: Loans held for sale $ 2,720 $ — $ 2,720 $ — Impaired loans, net of valuation allowance 1,835 — — 1,835 Other real estate owned 2,113 — — 2,113 Fair Value Measurements at December 31, 2014 Using Balance at December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2014 Level 1 Level 2 Level 3 Assets: Loans held for sale $ 616 $ — $ 616 $ — Impaired loans, net of valuation allowance 1,705 — — 1,705 Other real estate owned 2,119 — — 2,119 |
Schedule of quantitative information of assets measured at Level 3 | The following tables summarize the Company's quantitative information about Level 3 fair value measurements at the dates indicated: Quantitative Information About Level 3 Fair Value Measurements for June 30, 2015 Assets Valuation Technique Unobservable Input Weighted Securities available for sale Consideration of equity conversion options Stock price in different rate environments 37 % Impaired loans Discounted appraised value Selling cost 6 % Discounted cash flows Market rate for borrower (discount rate) 6 % Other real estate owned Discounted appraised value Selling cost 6 % Quantitative Information About Level 3 Fair Value Measurements for December 31, 2014 Assets Valuation Technique Unobservable Input Weighted Securities available for sale Consideration of equity conversion options Stock price in different rate environments 31 % Impaired loans Discounted appraised value Selling cost 6 % Discounted cash flows Market rate for borrower (discount rate) 4 % Other real estate owned Discounted appraised value Selling cost 6 % |
Schedule of carrying values and estimated fair values of the entity's financial instruments | The carrying values and estimated fair values of the Company's financial instruments at June 30, 2015 are as follows (dollars in thousands): Fair Value Measurements at June 30, 2015 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Carrying Value Level 1 Level 2 Level 3 Balance Financial Assets: Cash and cash equivalents $ 75,714 $ 75,714 $ — $ — $ 75,714 Securities available for sale 355,595 — 354,225 1,370 355,595 Restricted stock 5,329 — 5,329 — 5,329 Loans held for sale 2,720 — 2,720 — 2,720 Loans, net of allowance 970,112 — — 976,220 976,220 Bank owned life insurance 17,376 — 17,376 — 17,376 Accrued interest receivable 4,562 — 4,562 — 4,562 Financial Liabilities: Deposits $ 1,234,018 $ — $ 834,455 $ 400,782 $ 1,235,237 Repurchase agreements 50,123 — 50,123 — 50,123 Other borrowings 9,947 — — 40,425 40,425 Trust preferred capital notes 27,571 — — 21,353 21,353 Accrued interest payable 598 — 598 — 598 The carrying values and estimated fair values of the Company's financial instruments at December 31, 2014 are as follows (dollars in thousands): Fair Value Measurements at December 31, 2014 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Carrying Value Level 1 Level 2 Level 3 Balance Financial Assets: Cash and cash equivalents $ 67,303 $ 67,303 $ — $ — $ 67,303 Securities available for sale 344,716 4,167 339,236 1,313 344,716 Restricted stock 4,367 — 4,367 — 4,367 Loans held for sale 616 — 616 — 616 Loans, net of allowance 828,498 — — 832,708 832,708 Bank owned life insurance 15,193 — 15,193 — 15,193 Accrued interest receivable 4,534 — 4,534 — 4,534 Financial Liabilities: Deposits $ 1,075,837 $ — $ 712,019 $ 365,310 $ 1,077,329 Repurchase agreements 53,480 — 53,480 — 53,480 Other borrowings 9,935 — — 10,432 10,432 Trust preferred capital notes 27,521 — — 22,009 22,009 Accrued interest payable 587 — 587 — 587 |
Segment and Related Informati38
Segment and Related Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Segment information as of and for the three and six months ended June 30, 2015 and 2014 (unaudited), is shown in the following tables (dollars in thousands): Three Months Ended June 30, 2015 Community Trust and Other Intersegment Total Interest income $ 13,822 $ — $ 15 $ — $ 13,837 Interest expense 1,267 — 188 — 1,455 Noninterest income 2,038 1,215 5 — 3,258 Income (loss) before income taxes 3,647 573 (322 ) — 3,898 Net income (loss) 2,671 422 (213 ) — 2,880 Depreciation and amortization 739 3 — — 742 Total assets 1,522,208 — 222,526 (220,378 ) 1,524,356 Goodwill 44,210 — — — 44,210 Capital expenditures 232 21 — — 253 Three Months Ended June 30, 2014 Community Trust and Other Intersegment Total Interest income $ 11,765 $ — $ 15 $ — $ 11,780 Interest expense 1,244 — 185 — 1,429 Noninterest income 1,539 1,156 5 — 2,700 Income (loss) before income taxes 4,079 777 (320 ) — 4,536 Net income (loss) 2,891 553 (211 ) — 3,233 Depreciation and amortization 751 2 — — 753 Total assets 1,298,664 — 199,621 (197,637 ) 1,300,648 Goodwill 39,043 — — — 39,043 Capital expenditures 147 — — — 147 Six Months Ended June 30, 2015 Community Trust and Other Intersegment Total Interest income $ 27,646 $ — $ 30 $ — $ 27,676 Interest expense 2,544 — 372 — 2,916 Noninterest income 4,021 2,383 10 — 6,414 Income (loss) before income taxes 8,154 1,223 (592 ) — 8,785 Net income (loss) 5,896 890 (391 ) — 6,395 Depreciation and amortization 1,477 6 — — 1,483 Total assets 1,522,208 — 222,526 (220,378 ) 1,524,356 Goodwill 44,210 — — — 44,210 Capital expenditures 580 21 — — 601 Six Months Ended June 30, 2014 Community Trust and Other Intersegment Total Interest income $ 23,704 $ — $ 30 $ — $ 23,734 Interest expense 2,555 — 369 — 2,924 Noninterest income 2,970 2,423 10 — 5,403 Income (loss) before income taxes 8,150 1,651 (526 ) — 9,275 Net income (loss) 5,840 1,190 (347 ) — 6,683 Depreciation and amortization 1,513 5 — — 1,518 Total assets 1,298,664 — 199,621 (197,637 ) 1,300,648 Goodwill 39,043 — — — 39,043 Capital expenditures 266 — — — 266 |
Supplemental Cash Flow Inform39
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of supplemental disclosure of cash flow information | Six Months Ended 2015 2014 Supplemental Schedule of Cash and Cash Equivalents: Cash and due from banks $ 24,548 $ 21,295 Interest-bearing deposits in other banks 50,758 22,948 Federal funds sold 408 — Cash and Cash Equivalents $ 75,714 $ 44,243 Supplemental Disclosure of Cash Flow Information: Cash paid for: Interest on deposits and borrowed funds $ 2,905 $ 2,943 Income taxes 2,415 2,439 Noncash investing and financing activities: Transfer of loans to other real estate owned 1,047 386 Unrealized gain (loss) on securities available for sale (1,941 ) 4,042 Non-cash transactions related to acquisitions: Assets acquired: Investment securities 18,800 — Restricted stock 738 — Loans 114,902 — Premises and equipment 1,475 — Deferred income taxes 2,683 — Core deposit intangible 1,839 — Other real estate owned 168 — Bank owned life insurance 1,955 — Other assets 917 — Liabilities assumed: Deposits 137,323 — Other liabilities 3,076 — Consideration: Issuance of common stock 20,483 — Fair value of replacement stock options — — |
Accumulated Other Comprehensi40
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Component of accumulated other comprehensive income (loss) | Changes in each component of accumulated other comprehensive income ("AOCI") for the three and six months ended June 30, 2015 and 2014 (unaudited) were as follows (dollars in thousands): For the Three Month Period Net Unrealized Gains (Losses) on Securities Adjustments Related to Pension Benefits Accumulated Other Comprehensive Income Balance at March 31, 2014 $ 4,729 $ (1,058 ) $ 3,671 Net unrealized gains on securities available for sale, net of tax, $848 1,574 — 1,574 Reclassification adjustment for gains on securities, net of tax, $(52) (98 ) — (98 ) Balance at June 30, 2014 $ 6,205 $ (1,058 ) $ 5,147 Balance at March 31, 2015 $ 6,446 $ (2,181 ) $ 4,265 Net unrealized losses on securities available for sale, net of tax, $(920) (1,708 ) — (1,708 ) Reclassification adjustment for gains on securities, net of tax, $(82) (155 ) — (155 ) Balance at June 30, 2015 $ 4,583 $ (2,181 ) $ 2,402 For the Six Month Period Net Unrealized Gains (Losses) on Securities Adjustments Related to Pension Benefits Accumulated Other Comprehensive Income December 31, 2013 $ 3,578 $ (1,058 ) $ 2,520 Net unrealized gains on securities available for sale, net of tax, $1,481 2,750 — 2,750 Reclassification adjustment for gains on securities, net of tax, $(66) (123 ) — (123 ) Balance at June 30, 2014 $ 6,205 $ (1,058 ) $ 5,147 Balance at December 31, 2014 $ 5,845 $ (2,181 ) $ 3,664 Net unrealized losses on securities available for sale, net of tax, $(488) (906 ) — (906 ) Reclassification adjustment for gains on securities, net of tax, $(191) (356 ) — (356 ) Balance at June 30, 2015 $ 4,583 $ (2,181 ) $ 2,402 |
Reclassification out of accumulated other comprehensive income | Reclassifications Out of Accumulated Other Comprehensive Income For the three and six month periods ending June 30, 2015 (dollars in thousands) For the Three Month Period Ended June 30, 2015 Amount Reclassified from AOCI Affected Line Item in the Statement of Where Net Income is Presented Details about AOCI Components Available for sale securities: Realized gain on sale of securities $ 237 Securities gains, net (82 ) Income tax expense Total reclassifications $ 155 Net of tax For the Six Month Period Ended June 30, 2015 Amount Reclassified from AOCI Affected Line Item in the Statement of Where Net Income is Presented Details about AOCI Components Available for sale securities: Realized gain on sale of securities $ 547 Securities gains, net (191 ) Income tax expense Total reclassifications $ 356 Net of tax |
Acquisition of MainStreet - Nar
Acquisition of MainStreet - Narrative (Details) - USD ($) | Jan. 01, 2015 | Jun. 30, 2015 | Dec. 31, 2011 |
Business Combinations [Abstract] | |||
Shares received by acquiree entity in exchange of acquirer entity's common stock (in dollars per share) | $ 3.46 | ||
Shares received by acquiree entity in exchange of acquirer entity's common stock (in shares) | 0.482 | ||
Shares exchange ratio on acquisition | 64.30% | ||
Cash dividends received for purchase of acquisition | $ 6,000,000 | ||
Amount of loan taken to fund merger | $ 0 | ||
Number of shares granted in conjunction with the acquisition | 43,086 | 43,086 | |
Amount of acquired loan portfolio | $ 122,300,000 | ||
Acquired loan portfolio, at a fair value discount | 7,400,000 | ||
Estimated fair value of performing portion of the portfolio | 105,800,000 | ||
Deferred income taxes | 2,683,000 | ||
Premises and equipment | 1,475,000 | $ 1,475,000 | |
Valuation adjustment due to acquisition | $ 290,000 | ||
Period valuation adjustment recognized over | 12 months | ||
Core deposits intangibles recognized due to the acquisition | $ 1,839,000 | ||
Amortization period of core deposit | 10 years | ||
Merger and acquisition expenses | $ 1,861,000 |
Acquisition of MainStreet - Con
Acquisition of MainStreet - Consideration Paid and Fair Value of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jan. 01, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | [1] |
Consideration Paid: | |||||
Common shares issued | $ 20,483 | $ 20,483 | $ 0 | ||
Cash paid to shareholders | 5,935 | ||||
Value of consideration | 26,418 | ||||
Assets acquired: | |||||
Cash and cash equivalents | 18,173 | ||||
Investment securities | 18,800 | 18,800 | 0 | ||
Restricted stock | 738 | 738 | 0 | ||
Loans | 114,902 | 114,902 | 0 | ||
Premises and equipment | 1,475 | 1,475 | |||
Deferred income taxes | 2,683 | ||||
Core deposit intangible | 1,839 | 1,839 | 0 | ||
Other real estate owned | 168 | 168 | 0 | ||
Bank owned life insurance | 1,955 | 1,955 | 0 | ||
Other assets | 917 | 917 | 0 | ||
Total assets | 161,650 | ||||
Liabilities assumed: | |||||
Deposits | 137,323 | 137,323 | 0 | ||
Other liabilities | 3,076 | 3,076 | 0 | ||
Total liabilities | 140,399 | ||||
Net assets acquired | 21,251 | ||||
Goodwill resulting from merger with MainStreet | $ 5,167 | $ 44,210 | $ 39,043 | $ 39,043 | |
Number of additional common stock issued in connection with merger (in shares) | 825,586 | ||||
[1] | Derived from audited consolidated financial statements. |
Acquisition of MainStreet - Acq
Acquisition of MainStreet - Acquired Loans (Details) $ in Thousands | Jan. 01, 2015USD ($) |
Business Combinations [Abstract] | |
Contractually required principal and interest at acquisition | $ 13,504 |
Contractual cash flows not expected to be collected (nonaccretable difference) | 3,298 |
Expected cash flows at acquisition | 10,206 |
Interest component of expected cash flows (accretable yield) | 1,208 |
Fair value of acquired loans accounted for under FASB ASC 310-30 | $ 8,998 |
Acquisition of MainStreet - Una
Acquisition of MainStreet - Unaudited Pro Forma (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Business Combinations [Abstract] | ||||
Net interest income | $ 12,698 | $ 12,370 | $ 25,268 | $ 24,791 |
Provision for loan loss | (100) | (150) | (700) | (150) |
Non-interest income | 3,258 | 2,937 | 6,414 | 5,851 |
Non-interest expense and income taxes | (12,950) | (11,338) | (24,477) | (22,777) |
Net income | $ 2,906 | $ 3,819 | $ 6,505 | $ 7,715 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Fair Value of Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Securities available for sale: | |||
Amortized Cost | $ 348,543 | $ 335,723 | |
Unrealized Gains | 7,890 | 9,352 | |
Unrealized Losses | 838 | 359 | |
Securities available for sale | 355,595 | 344,716 | [1] |
Federal agencies and GSEs [Member] | |||
Securities available for sale: | |||
Amortized Cost | 96,520 | 81,958 | |
Unrealized Gains | 295 | 252 | |
Unrealized Losses | 449 | 104 | |
Securities available for sale | 96,366 | 82,106 | |
Mortgage-backed and CMOs [Member] | |||
Securities available for sale: | |||
Amortized Cost | 59,462 | 56,289 | |
Unrealized Gains | 1,114 | 1,248 | |
Unrealized Losses | 175 | 112 | |
Securities available for sale | 60,401 | 57,425 | |
State and municipal [Member] | |||
Securities available for sale: | |||
Amortized Cost | 182,771 | 188,060 | |
Unrealized Gains | 6,074 | 7,523 | |
Unrealized Losses | 176 | 90 | |
Securities available for sale | 188,669 | 195,493 | |
Corporate [Member] | |||
Securities available for sale: | |||
Amortized Cost | 8,790 | 8,416 | |
Unrealized Gains | 37 | 16 | |
Unrealized Losses | 38 | 53 | |
Securities available for sale | 8,789 | 8,379 | |
Equity securities [Member] | |||
Securities available for sale: | |||
Amortized Cost | 1,000 | 1,000 | |
Unrealized Gains | 370 | 313 | |
Unrealized Losses | 0 | 0 | |
Securities available for sale | $ 1,370 | $ 1,313 | |
[1] | Derived from audited consolidated financial statements. |
Securities - Narrative (Details
Securities - Narrative (Details) - Jun. 30, 2015 - Investment | Total |
Investments, Debt and Equity Securities [Abstract] | |
Par value of restricted stock out of outstanding capital required by FRB | 6.00% |
Percentage of restricted stock outstanding capital paid to FRB | 50.00% |
Percentage restricted stock outstanding capital subject to call | 50.00% |
Par value of restricted stock out of outstanding borrowings required by FHLB | 4.50% |
Federal agencies and GSEs [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Number of securities with unrealized losses | 15 |
Mortgage-backed and CMOs [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Number of securities with unrealized losses | 23 |
State and municipal [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Number of securities with unrealized losses | 32 |
Corporate securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Number of securities with unrealized losses | 3 |
Securities - Cost of Restricted
Securities - Cost of Restricted Stock (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Investments [Line Items] | |||
Total restricted stock | $ 5,329 | $ 4,367 | [1] |
FRB Stock [Member] | |||
Schedule of Investments [Line Items] | |||
Total restricted stock | 3,527 | 2,742 | |
FHLB Stock [Member] | |||
Schedule of Investments [Line Items] | |||
Total restricted stock | $ 1,802 | $ 1,625 | |
[1] | Derived from audited consolidated financial statements. |
Securities - Fair Value and Gro
Securities - Fair Value and Gross Unrealized Losses by Investment Category and Length of Time (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total Fair Value | $ 81,827 | $ 61,735 |
Available-for-sale Securities, Total Unrealized Loss | 838 | 359 |
Available-for-sale Securities, Fair Value Less than 12 Months | 75,668 | 40,729 |
Available-for-sale Securities, Unrealized Loss Less than 12 Months | 766 | 112 |
Available-for-sale Securities, Fair Value 12 Months or More | 6,159 | 21,006 |
Available-for-sale Securities, Unrealized Loss 12 Months or Longer | 72 | 247 |
Federal agencies and GSEs [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total Fair Value | 39,979 | 28,979 |
Available-for-sale Securities, Total Unrealized Loss | 449 | 104 |
Available-for-sale Securities, Fair Value Less than 12 Months | 37,881 | 21,449 |
Available-for-sale Securities, Unrealized Loss Less than 12 Months | 447 | 35 |
Available-for-sale Securities, Fair Value 12 Months or More | 2,098 | 7,530 |
Available-for-sale Securities, Unrealized Loss 12 Months or Longer | 2 | 69 |
Mortgage-backed and CMOs [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total Fair Value | 14,115 | 7,182 |
Available-for-sale Securities, Total Unrealized Loss | 175 | 112 |
Available-for-sale Securities, Fair Value Less than 12 Months | 11,646 | 1,171 |
Available-for-sale Securities, Unrealized Loss Less than 12 Months | 133 | 13 |
Available-for-sale Securities, Fair Value 12 Months or More | 2,469 | 6,011 |
Available-for-sale Securities, Unrealized Loss 12 Months or Longer | 42 | 99 |
State and municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total Fair Value | 24,998 | 20,542 |
Available-for-sale Securities, Total Unrealized Loss | 176 | 90 |
Available-for-sale Securities, Fair Value Less than 12 Months | 24,998 | 15,836 |
Available-for-sale Securities, Unrealized Loss Less than 12 Months | 176 | 60 |
Available-for-sale Securities, Fair Value 12 Months or More | 0 | 4,706 |
Available-for-sale Securities, Unrealized Loss 12 Months or Longer | 0 | 30 |
Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Total Fair Value | 2,735 | 5,032 |
Available-for-sale Securities, Total Unrealized Loss | 38 | 53 |
Available-for-sale Securities, Fair Value Less than 12 Months | 1,143 | 2,273 |
Available-for-sale Securities, Unrealized Loss Less than 12 Months | 10 | 4 |
Available-for-sale Securities, Fair Value 12 Months or More | 1,592 | 2,759 |
Available-for-sale Securities, Unrealized Loss 12 Months or Longer | $ 28 | $ 49 |
Loans - Schedule of Loans Exclu
Loans - Schedule of Loans Excluding Loans Held for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 982,905 | $ 840,925 | [1] |
Commercial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 159,015 | 126,981 | |
Construction and land development [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 66,543 | 50,863 | |
Commercial real estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 432,315 | 391,472 | |
Residential [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 220,778 | 175,293 | |
Home equity [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 97,866 | 91,075 | |
Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 6,388 | $ 5,241 | |
[1] | Derived from audited consolidated financial statements. |
Loans - Outstanding Principal a
Loans - Outstanding Principal and Carrying Amount of Acquired Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Outstanding principal balance and the carrying amount of loan acquired [Abstract] | ||
Accretion income included in interest income | $ 1,872 | |
Interest income, including accretion, on loans | 8,122 | |
Outstanding principal balance | 173,907 | $ 84,892 |
Carrying amount | 161,904 | 78,111 |
Outstanding principal balance and the carrying amount of loan acquired, impaired [Abstract] | ||
Outstanding principal balance | 26,840 | 18,357 |
Carrying amount | $ 20,751 | $ 14,933 |
Loans - Accretable Yield on Acq
Loans - Accretable Yield on Acquired Impaired Loans (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Changes in the accretable discount on acquired loans [Abstract] | |
Balance at December 31, 2014 | $ 1,440 |
Additions from merger with MainStreet | 1,208 |
Accretion | (428) |
Reclassification from nonaccretable difference | 3,237 |
Balance at June 30, 2015 | $ 5,457 |
Loans - Past Due (Details)
Loans - Past Due (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
30- 59 Days Past Due | $ 1,164 | $ 1,029 | |
60-89 Days Past Due | 1,105 | 861 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
Non- Accrual Loans | 3,772 | 4,112 | |
Total Past Due | 6,041 | 6,002 | |
Current | 976,864 | 834,923 | |
Total Loans | 982,905 | 840,925 | [1] |
Commercial [Member] | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
30- 59 Days Past Due | 68 | 114 | |
60-89 Days Past Due | 0 | 165 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
Non- Accrual Loans | 254 | 0 | |
Total Past Due | 322 | 279 | |
Current | 158,693 | 126,702 | |
Total Loans | 159,015 | 126,981 | |
Construction and land development [Member] | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
30- 59 Days Past Due | 0 | 44 | |
60-89 Days Past Due | 0 | 269 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
Non- Accrual Loans | 276 | 279 | |
Total Past Due | 276 | 592 | |
Current | 66,267 | 50,271 | |
Total Loans | 66,543 | 50,863 | |
Commercial real estate [Member] | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
30- 59 Days Past Due | 593 | 257 | |
60-89 Days Past Due | 355 | 0 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
Non- Accrual Loans | 1,937 | 3,010 | |
Total Past Due | 2,885 | 3,267 | |
Current | 429,430 | 388,205 | |
Total Loans | 432,315 | 391,472 | |
Residential [Member] | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
30- 59 Days Past Due | 454 | 390 | |
60-89 Days Past Due | 551 | 325 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
Non- Accrual Loans | 582 | 560 | |
Total Past Due | 1,587 | 1,275 | |
Current | 219,191 | 174,018 | |
Total Loans | 220,778 | 175,293 | |
Home equity [Member] | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
30- 59 Days Past Due | 11 | 223 | |
60-89 Days Past Due | 198 | 60 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
Non- Accrual Loans | 711 | 262 | |
Total Past Due | 920 | 545 | |
Current | 96,946 | 90,530 | |
Total Loans | 97,866 | 91,075 | |
Consumer [Member] | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
30- 59 Days Past Due | 38 | 1 | |
60-89 Days Past Due | 1 | 42 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
Non- Accrual Loans | 12 | 1 | |
Total Past Due | 51 | 44 | |
Current | 6,337 | 5,197 | |
Total Loans | $ 6,388 | $ 5,241 | |
[1] | Derived from audited consolidated financial statements. |
Loans - Impaired Loan Balances
Loans - Impaired Loan Balances By Portfolio Segment (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Recorded Investment [Abstract] | ||
Impaired loan, with no related allowance, recorded investment | $ 1,788 | $ 2,667 |
Impaired loan, with an related allowance, recorded investment | 1,867 | 1,870 |
Impaired loan, total, recorded investment | 3,655 | 4,537 |
Unpaid Principal Balance [Abstract] | ||
Impaired loan, with no related allowance, unpaid principal balance | 2,111 | 2,989 |
Impaired loan, with an related allowance, unpaid principal balance | 1,913 | 2,018 |
Impaired loan, total, unpaid principal balance | 4,024 | 5,007 |
Impaired loan, total, related allowance | 32 | 165 |
Average Recorded Investment [Abstract] | ||
Impaired loan, with no related allowance, average recorded investment | 2,870 | 3,345 |
Impaired loan, with related allowance, average recorded investment | 1,834 | 1,911 |
Impaired loan, total, average recorded investment | 4,704 | 5,256 |
Interest Income Recognized [Abstract] | ||
Impaired loan, with no related allowance, interest income recognized | 5 | 9 |
Impaired loan, with related allowance, interest income recognized | 33 | 43 |
Impaired loan, total, interest income recognized | 38 | 52 |
Commercial [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loan, with no related allowance, recorded investment | 259 | 7 |
Impaired loan, with an related allowance, recorded investment | 0 | 0 |
Impaired loan, total, recorded investment | 259 | 7 |
Unpaid Principal Balance [Abstract] | ||
Impaired loan, with no related allowance, unpaid principal balance | 261 | 7 |
Impaired loan, with an related allowance, unpaid principal balance | 0 | 0 |
Impaired loan, total, unpaid principal balance | 261 | 7 |
Impaired loan, total, related allowance | 0 | 0 |
Average Recorded Investment [Abstract] | ||
Impaired loan, with no related allowance, average recorded investment | 197 | 12 |
Impaired loan, with related allowance, average recorded investment | 0 | 0 |
Impaired loan, total, average recorded investment | 197 | 12 |
Interest Income Recognized [Abstract] | ||
Impaired loan, with no related allowance, interest income recognized | 5 | 1 |
Impaired loan, with related allowance, interest income recognized | 0 | 0 |
Impaired loan, total, interest income recognized | 5 | 1 |
Construction and land development [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loan, with no related allowance, recorded investment | 260 | 280 |
Impaired loan, with an related allowance, recorded investment | 415 | 576 |
Impaired loan, total, recorded investment | 675 | 856 |
Unpaid Principal Balance [Abstract] | ||
Impaired loan, with no related allowance, unpaid principal balance | 313 | 325 |
Impaired loan, with an related allowance, unpaid principal balance | 415 | 577 |
Impaired loan, total, unpaid principal balance | 728 | 902 |
Impaired loan, total, related allowance | 1 | 12 |
Average Recorded Investment [Abstract] | ||
Impaired loan, with no related allowance, average recorded investment | 448 | 448 |
Impaired loan, with related allowance, average recorded investment | 519 | 593 |
Impaired loan, total, average recorded investment | 967 | 1,041 |
Interest Income Recognized [Abstract] | ||
Impaired loan, with no related allowance, interest income recognized | 0 | 0 |
Impaired loan, with related allowance, interest income recognized | 15 | 34 |
Impaired loan, total, interest income recognized | 15 | 34 |
Commercial real estate [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loan, with no related allowance, recorded investment | 254 | 1,520 |
Impaired loan, with an related allowance, recorded investment | 929 | 1,275 |
Impaired loan, total, recorded investment | 1,183 | 2,795 |
Unpaid Principal Balance [Abstract] | ||
Impaired loan, with no related allowance, unpaid principal balance | 522 | 1,797 |
Impaired loan, with an related allowance, unpaid principal balance | 973 | 1,422 |
Impaired loan, total, unpaid principal balance | 1,495 | 3,219 |
Impaired loan, total, related allowance | 8 | 149 |
Average Recorded Investment [Abstract] | ||
Impaired loan, with no related allowance, average recorded investment | 1,146 | 1,844 |
Impaired loan, with related allowance, average recorded investment | 871 | 1,297 |
Impaired loan, total, average recorded investment | 2,017 | 3,141 |
Interest Income Recognized [Abstract] | ||
Impaired loan, with no related allowance, interest income recognized | 0 | 0 |
Impaired loan, with related allowance, interest income recognized | 12 | 8 |
Impaired loan, total, interest income recognized | 12 | 8 |
Residential [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loan, with no related allowance, recorded investment | 353 | 603 |
Impaired loan, with an related allowance, recorded investment | 509 | 4 |
Impaired loan, total, recorded investment | 862 | 607 |
Unpaid Principal Balance [Abstract] | ||
Impaired loan, with no related allowance, unpaid principal balance | 353 | 603 |
Impaired loan, with an related allowance, unpaid principal balance | 511 | 4 |
Impaired loan, total, unpaid principal balance | 864 | 607 |
Impaired loan, total, related allowance | 23 | 1 |
Average Recorded Investment [Abstract] | ||
Impaired loan, with no related allowance, average recorded investment | 413 | 723 |
Impaired loan, with related allowance, average recorded investment | 429 | 4 |
Impaired loan, total, average recorded investment | 842 | 727 |
Interest Income Recognized [Abstract] | ||
Impaired loan, with no related allowance, interest income recognized | 0 | 8 |
Impaired loan, with related allowance, interest income recognized | 6 | 0 |
Impaired loan, total, interest income recognized | 6 | 8 |
Home equity [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loan, with no related allowance, recorded investment | 661 | 256 |
Impaired loan, with an related allowance, recorded investment | 0 | 0 |
Impaired loan, total, recorded investment | 661 | 256 |
Unpaid Principal Balance [Abstract] | ||
Impaired loan, with no related allowance, unpaid principal balance | 661 | 256 |
Impaired loan, with an related allowance, unpaid principal balance | 0 | 0 |
Impaired loan, total, unpaid principal balance | 661 | 256 |
Impaired loan, total, related allowance | 0 | 0 |
Average Recorded Investment [Abstract] | ||
Impaired loan, with no related allowance, average recorded investment | 637 | 316 |
Impaired loan, with related allowance, average recorded investment | 0 | 0 |
Impaired loan, total, average recorded investment | 637 | 316 |
Interest Income Recognized [Abstract] | ||
Impaired loan, with no related allowance, interest income recognized | 0 | 0 |
Impaired loan, with related allowance, interest income recognized | 0 | 0 |
Impaired loan, total, interest income recognized | 0 | 0 |
Consumer [Member] | ||
Recorded Investment [Abstract] | ||
Impaired loan, with no related allowance, recorded investment | 1 | 1 |
Impaired loan, with an related allowance, recorded investment | 14 | 15 |
Impaired loan, total, recorded investment | 15 | 16 |
Unpaid Principal Balance [Abstract] | ||
Impaired loan, with no related allowance, unpaid principal balance | 1 | 1 |
Impaired loan, with an related allowance, unpaid principal balance | 14 | 15 |
Impaired loan, total, unpaid principal balance | 15 | 16 |
Impaired loan, total, related allowance | 0 | 3 |
Average Recorded Investment [Abstract] | ||
Impaired loan, with no related allowance, average recorded investment | 29 | 2 |
Impaired loan, with related allowance, average recorded investment | 15 | 17 |
Impaired loan, total, average recorded investment | 44 | 19 |
Interest Income Recognized [Abstract] | ||
Impaired loan, with no related allowance, interest income recognized | 0 | 0 |
Impaired loan, with related allowance, interest income recognized | 0 | 1 |
Impaired loan, total, interest income recognized | $ 0 | $ 1 |
Loans - Loans Modified for Trou
Loans - Loans Modified for Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)contract | Jun. 30, 2014USD ($)contract | Jun. 30, 2015USD ($)contract | Jun. 30, 2014USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 4 | 5 | 7 | 5 |
Pre-Modification Outstanding Recorded Investment | $ 300 | $ 311 | $ 650 | $ 311 |
Post-Modification Outstanding Recorded Investment | $ 300 | $ 311 | $ 644 | $ 311 |
Commercial [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial real estate [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 2 | 1 | 3 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 249 | $ 182 | $ 256 | $ 182 |
Post-Modification Outstanding Recorded Investment | $ 249 | $ 182 | $ 255 | $ 182 |
Construction and land development [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Home equity [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 1 | 0 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 8 | $ 0 | $ 8 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 8 | $ 0 | $ 8 |
Residential Real Estate [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 2 | 2 | 4 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 51 | $ 117 | $ 394 | $ 117 |
Post-Modification Outstanding Recorded Investment | $ 51 | $ 117 | $ 389 | $ 117 |
Consumer [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 1 | 0 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 4 | $ 0 | $ 4 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 4 | $ 0 | $ 4 |
Loans - Residential Real Estate
Loans - Residential Real Estate in Process of Foreclosures (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Receivables [Abstract] | |
Residential real estate in process of foreclosure | $ 511 |
Other real estate owned | $ 181 |
Loans - Loans Portfolio by Inte
Loans - Loans Portfolio by Internal Risk Grading (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | $ 982,905 | $ 840,925 | [1] |
Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 159,015 | 126,981 | |
Commercial Real Estate Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 66,543 | 50,863 | |
Commercial Real Estate Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 432,315 | 391,472 | |
Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 220,778 | 175,293 | |
Home equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 97,866 | 91,075 | |
Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 6,388 | 5,241 | |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 125,405 | ||
Pass [Member] | Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 156,136 | ||
Pass [Member] | Commercial Real Estate Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 60,595 | 45,534 | |
Pass [Member] | Commercial Real Estate Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 418,858 | 382,607 | |
Pass [Member] | Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 198,952 | 165,367 | |
Pass [Member] | Home equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 95,341 | 88,646 | |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,569 | ||
Special Mention [Member] | Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 2,606 | ||
Special Mention [Member] | Commercial Real Estate Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 2,363 | 569 | |
Special Mention [Member] | Commercial Real Estate Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 7,103 | 4,889 | |
Special Mention [Member] | Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 17,570 | 6,709 | |
Special Mention [Member] | Home equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,478 | 1,801 | |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 7 | ||
Substandard [Member] | Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 273 | ||
Substandard [Member] | Commercial Real Estate Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 3,585 | 4,760 | |
Substandard [Member] | Commercial Real Estate Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 6,354 | 3,976 | |
Substandard [Member] | Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 4,256 | 3,217 | |
Substandard [Member] | Home equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,047 | 628 | |
Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | ||
Doubtful [Member] | Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | ||
Doubtful [Member] | Commercial Real Estate Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
Doubtful [Member] | Commercial Real Estate Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
Doubtful [Member] | Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
Doubtful [Member] | Home equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
Performing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 6,337 | 5,240 | |
Nonperforming [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | $ 51 | $ 1 | |
[1] | Derived from audited consolidated financial statements. |
Allowance for Loan Losses and57
Allowance for Loan Losses and Reserve for Unfunded Lending Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | ||||
Allowance for Loan Losses | |||||||||
Balance, beginning of period | $ 12,427 | [1] | $ 12,600 | $ 12,600 | |||||
Provision for loan losses | $ 100 | $ 150 | 700 | 150 | 400 | ||||
Charge-offs | (630) | (168) | (964) | ||||||
Recoveries | 296 | 181 | 391 | ||||||
Balance, end of period | 12,793 | 12,763 | 12,793 | 12,763 | 12,427 | [1] | |||
Reserve for Unfunded Lending Commitments | |||||||||
Balance, beginning of period | 163 | 210 | 210 | ||||||
Provision for (recovery of) loan losses | 13 | (51) | (47) | ||||||
Charge-offs | 0 | 0 | 0 | ||||||
Balance, end of period | 176 | 159 | 176 | 159 | 163 | ||||
Allowance for Loan Losses | |||||||||
Individually evaluated for impairment | 32 | $ 165 | |||||||
Collectively evaluated for impairment | 11,832 | 11,716 | |||||||
Loans acquired with deteriorated credit quality | 929 | 546 | |||||||
Total | 12,793 | $ 12,763 | 12,427 | [1] | 12,600 | 12,600 | 12,427 | [1] | |
Loans | |||||||||
Individually evaluated for impairment | 3,655 | 4,537 | |||||||
Collectively evaluated for impairment | 958,499 | 821,455 | |||||||
Loans acquired with deteriorated credit quality | 20,751 | 14,933 | |||||||
Total Loans | 982,905 | 840,925 | [1] | ||||||
Commercial [Member] | |||||||||
Allowance for Loan Losses | |||||||||
Balance, beginning of period | 1,818 | 1,810 | 1,810 | ||||||
Provision for loan losses | 147 | 58 | |||||||
Charge-offs | 0 | (101) | |||||||
Recoveries | 21 | 51 | |||||||
Balance, end of period | 1,986 | 1,986 | 1,818 | ||||||
Allowance for Loan Losses | |||||||||
Individually evaluated for impairment | 0 | 0 | |||||||
Collectively evaluated for impairment | 1,984 | 1,815 | |||||||
Loans acquired with deteriorated credit quality | 2 | 3 | |||||||
Total | 1,986 | 1,818 | 1,810 | 1,810 | 1,818 | ||||
Loans | |||||||||
Individually evaluated for impairment | 259 | 7 | |||||||
Collectively evaluated for impairment | 158,423 | 126,774 | |||||||
Loans acquired with deteriorated credit quality | 333 | 200 | |||||||
Total Loans | 159,015 | 126,981 | |||||||
Commercial Real Estate [Member] | |||||||||
Allowance for Loan Losses | |||||||||
Balance, beginning of period | 6,814 | 6,819 | 6,819 | ||||||
Provision for loan losses | 364 | 439 | |||||||
Charge-offs | (473) | (510) | |||||||
Recoveries | 105 | 66 | |||||||
Balance, end of period | 6,810 | 6,810 | 6,814 | ||||||
Allowance for Loan Losses | |||||||||
Individually evaluated for impairment | 9 | 161 | |||||||
Collectively evaluated for impairment | 6,401 | 6,400 | |||||||
Loans acquired with deteriorated credit quality | 400 | 253 | |||||||
Total | 6,810 | 6,814 | 6,819 | 6,819 | 6,814 | ||||
Loans | |||||||||
Individually evaluated for impairment | 1,858 | 3,651 | |||||||
Collectively evaluated for impairment | 484,195 | 429,660 | |||||||
Loans acquired with deteriorated credit quality | 12,805 | 9,024 | |||||||
Total Loans | 498,858 | 442,335 | |||||||
Residential Real Estate [Member] | |||||||||
Allowance for Loan Losses | |||||||||
Balance, beginning of period | 3,715 | 3,690 | 3,690 | ||||||
Provision for loan losses | 152 | 92 | |||||||
Charge-offs | (32) | (258) | |||||||
Recoveries | 102 | 191 | |||||||
Balance, end of period | 3,937 | 3,937 | 3,715 | ||||||
Allowance for Loan Losses | |||||||||
Individually evaluated for impairment | 23 | 1 | |||||||
Collectively evaluated for impairment | 3,387 | 3,424 | |||||||
Loans acquired with deteriorated credit quality | 527 | 290 | |||||||
Total | 3,937 | 3,715 | 3,690 | 3,690 | 3,715 | ||||
Loans | |||||||||
Individually evaluated for impairment | 1,523 | 863 | |||||||
Collectively evaluated for impairment | 309,728 | 259,796 | |||||||
Loans acquired with deteriorated credit quality | 7,393 | 5,709 | |||||||
Total Loans | 318,644 | 266,368 | |||||||
Consumer [Member] | |||||||||
Allowance for Loan Losses | |||||||||
Balance, beginning of period | 80 | 99 | 99 | ||||||
Provision for loan losses | 37 | (7) | |||||||
Charge-offs | (125) | (95) | |||||||
Recoveries | 68 | 83 | |||||||
Balance, end of period | 60 | 60 | 80 | ||||||
Allowance for Loan Losses | |||||||||
Individually evaluated for impairment | 0 | 3 | |||||||
Collectively evaluated for impairment | 60 | 77 | |||||||
Loans acquired with deteriorated credit quality | 0 | 0 | |||||||
Total | 60 | 80 | 99 | 99 | 80 | ||||
Loans | |||||||||
Individually evaluated for impairment | 15 | 16 | |||||||
Collectively evaluated for impairment | 6,153 | 5,225 | |||||||
Loans acquired with deteriorated credit quality | 220 | 0 | |||||||
Total Loans | 6,388 | 5,241 | |||||||
Unallocated [Member] | |||||||||
Allowance for Loan Losses | |||||||||
Balance, beginning of period | 0 | 182 | 182 | ||||||
Provision for loan losses | 0 | (182) | |||||||
Charge-offs | 0 | 0 | |||||||
Recoveries | 0 | 0 | |||||||
Balance, end of period | 0 | 0 | 0 | ||||||
Allowance for Loan Losses | |||||||||
Individually evaluated for impairment | 0 | 0 | |||||||
Collectively evaluated for impairment | 0 | 0 | |||||||
Loans acquired with deteriorated credit quality | 0 | 0 | |||||||
Total | 0 | $ 0 | $ 182 | $ 182 | 0 | ||||
Loans | |||||||||
Individually evaluated for impairment | 0 | 0 | |||||||
Collectively evaluated for impairment | 0 | 0 | |||||||
Loans acquired with deteriorated credit quality | 0 | 0 | |||||||
Total Loans | $ 0 | $ 0 | |||||||
[1] | Derived from audited consolidated financial statements. |
Goodwill and Other Intangible58
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 01, 2015 | Jan. 31, 2015 | Jul. 31, 2011 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Core deposit intangible | $ 1,839 | $ 1,839 | $ 0 | $ 1,839 | $ 0 | |||
Amortization period of intangible | 10 years | |||||||
Changes in the carrying amount of goodwill [Roll Forward] | ||||||||
Goodwill, Balance as of December 31, 2014 | [1] | $ 39,043 | $ 39,043 | 39,043 | ||||
Goodwill, Additions | 5,167 | |||||||
Goodwill, Amortization | 0 | |||||||
Goodwill, Impairment | 0 | |||||||
Goodwill, Balance as of June 30, 2015 | 5,167 | 44,210 | 39,043 | 44,210 | 39,043 | |||
Finite-lived Intangible Assets [Roll Forward] | ||||||||
Intangibles, Balance as of December 31, 2104 | $ 2,045 | 2,045 | 2,045 | |||||
Intangibles, Additions | 1,839 | |||||||
Intangibles, Amortization | (300) | $ (330) | (601) | $ (661) | ||||
Intangibles, Impairment | 0 | |||||||
Intangibles, Balance as of June 30, 2015 | $ 3,283 | $ 3,283 | ||||||
MidCarolina [Member] | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Core deposit intangible | $ 3,112 | |||||||
Amortization period of intangible | 120 months | |||||||
MainStreet BankShares, Inc. [Member] | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Core deposit intangible | $ 1,839 | |||||||
Amortization period of intangible | 120 months | |||||||
[1] | Derived from audited consolidated financial statements. |
Short-term Borrowings (Details)
Short-term Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |||
Customer repurchase agreements | $ 50,123 | $ 53,480 | [1] |
Short-term borrowings | $ 50,123 | $ 53,480 | |
[1] | Derived from audited consolidated financial statements. |
Long-term Borrowings (Details)
Long-term Borrowings (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | ||
Debt Disclosure [Abstract] | |||
Percentage of entity's assets equal to line of credit facility | 30.00% | ||
Collateral pledged under blanket floating lien agreement | $ 418,277 | ||
Long term advances with federal home loan bank [Abstract] | |||
Advance Amount | $ 9,947 | $ 9,935 | [1] |
Weighted Average Rate | 2.98% | 2.98% | |
Advances due, net of fair value discount | $ 53 | ||
Public deposit accounts | $ 140,950 | ||
November 2017 [Member] | |||
Long term advances with federal home loan bank [Abstract] | |||
Due by | Nov. 30, 2017 | Nov. 30, 2017 | |
Advance Amount | $ 9,947 | $ 9,935 | |
Weighted Average Rate | 2.98% | 2.98% | |
Federal Home Loan Bank Advances [Member] | |||
Long term advances with federal home loan bank [Abstract] | |||
Outstanding letters of credit | $ 70,000 | ||
US government and agency securities [Member] | |||
Long term advances with federal home loan bank [Abstract] | |||
Outstanding letters of credit | $ 132,382 | ||
[1] | Derived from audited consolidated financial statements. |
Trust Preferred Capital Notes61
Trust Preferred Capital Notes (Details) $ in Thousands | Apr. 07, 2006USD ($) | Sep. 30, 2011 | Jun. 30, 2015USD ($)quarter | Jul. 01, 2011USD ($)trust |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Proceeds from issuance of trust preferred securities | $ 20,000 | |||
Number of consecutive quarterly periods (up to 20 quarterly periods) | quarter | 20 | |||
Principal Amount | $ 20,619 | |||
Proceeds from issuance of common securities | $ 619 | |||
Trust Preferred Securities [Member] | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Fixed interest rate | 6.66% | |||
Mid Carolina Trust [Member] | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Principal Amount | $ 8,764 | |||
Number of Trusts | trust | 2 | |||
LIBOR [Member] | Trust Preferred Securities [Member] | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Basis Spread on Variable Rate | 1.35% | |||
AMNB Statutory Trust I [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | $ 619 | |||
Mid Carolina Trust [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | $ 264 |
Trust Preferred Capital Notes -
Trust Preferred Capital Notes - Junior Subordinated Debt Securities Outstanding (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | Jul. 01, 2011 | |
Debt Instrument [Line Items] | |||
Principal Amount | $ 20,619 | ||
MidCarolina I [Member] | |||
Debt Instrument [Line Items] | |||
Valuation allowance associated with junior subordinated debenture | 973 | $ 1,197 | |
MidCarolina II [Member] | |||
Debt Instrument [Line Items] | |||
Valuation allowance associated with junior subordinated debenture | 839 | $ 1,021 | |
Junior Subordinated Debt Securities [Member] | |||
Debt Instrument [Line Items] | |||
Principal Amount | 27,571 | $ 27,521 | |
Junior Subordinated Debt Securities [Member] | AMNB Trust I [Member] | |||
Debt Instrument [Line Items] | |||
Principal Amount | 20,619 | 20,619 | |
Junior Subordinated Debt Securities [Member] | MidCarolina I [Member] | |||
Debt Instrument [Line Items] | |||
Principal Amount | 4,182 | 4,154 | |
Junior Subordinated Debt Securities [Member] | MidCarolina II [Member] | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 2,770 | $ 2,748 | |
LIBOR [Member] | Junior Subordinated Debt Securities [Member] | AMNB Trust I [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 1.35% | ||
LIBOR [Member] | Junior Subordinated Debt Securities [Member] | MidCarolina I [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 3.45% | ||
LIBOR [Member] | Junior Subordinated Debt Securities [Member] | MidCarolina II [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 2.95% |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Options Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2015 | Jun. 30, 2015 |
Option Shares [Abstract] | ||
Outstanding at beginning of period (in shares) | 110,947 | 110,947 |
Acquired in acquisition | 43,086 | 43,086 |
Granted (in shares) | 0 | |
Exercised (in shares) | 14,642 | |
Forfeited (in shares) | 0 | |
Expired (in shares) | 0 | |
Outstanding at end of period (in shares) | 139,391 | |
Exercisable at end of period (in shares) | 139,391 | |
Weighted Average Exercise Price [Abstract] | ||
Outstanding at beginning of period (in dollars per share) | $ 26.08 | $ 26.08 |
Business Combination Options Acquired (per share) | 20.02 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 18.07 | |
Forfeited (in dollars per share) | 0 | |
Expired (in dollars per share) | 0 | |
Outstanding at end of period (in dollars per share) | 25.05 | |
Exercisable at end of period (in dollars per share) | $ 25.05 | |
Weighted Average Remaining Contractual Term [Abstract] | ||
Outstanding at end of period | 1 year 10 months 21 days | |
Exercisable at end of period | 1 year 10 months 21 days | |
Aggregate Intrinsic Value [Abstract] | ||
Outstanding at end of period | $ 219 | |
Exercisable at end of period | $ 219 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) | 6 Months Ended | ||
Jun. 30, 2015USD ($)directorshares | Jun. 30, 2014USD ($)shares | Dec. 31, 2014USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Maximum number of common stock authorizes for issuance (in shares) (up to 500,000) | shares | 500,000 | ||
Unrecognized compensation expense | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Regular monthly board retainer director could receive in cash | 1,000 | ||
Regular monthly board retainer if restricted stock vested | 1,563 | ||
Monthly meeting fees a director could receive in cash | 600 | ||
Monthly meeting fees a director could receive if restricted stock vested | $ 750 | ||
Number of directors elected to receive stock in lieu of cash | director | 13 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 515,000 | $ 327,000 | |
Weighted average period for recognition of unrecognized compensation cost | 1 year 6 months 7 days | ||
Share based compensation expense | $ 173,000 | $ 194,000 | |
Number of shares issued (in shares) | shares | 10,111 | 6,517 | |
Recognized share based compensation expense | $ 229,000 | $ 149,000 | |
Restricted Stock [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum vesting period of granted restricted stock | 24 months | ||
Restricted Stock [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum vesting period of granted restricted stock | 36 months |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Activity (Details) - 6 months ended Jun. 30, 2015 - Restricted Stock [Member] - $ / shares | Total |
Shares [Roll Forward] | |
Nonvested at December 31, 2015 (in shares) | 41,562 |
Granted (in shares) | 16,649 |
Vested (in shares) | 15,536 |
Forfeited (in shares) | 0 |
Nonvested at June 30, 2015 (in shares) | 42,675 |
Weighted Average Grant Date Fair Value [Roll Forward] | |
Nonvested at December 31, 2015 (in dollars per share) | $ 21.39 |
Granted (in dollars per share) | 12.92 |
Vested (in dollars per share) | 19.51 |
Forfeited (in dollars per share) | 0 |
Nonvested at June 30, 2015 (in dollars per share) | $ 18.77 |
Earnings Per Share (Details)
Earnings Per Share (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Shares [Abstract] | ||||
Basic earnings per share (in shares) | 8,707,504 | 7,872,079 | 8,713,528 | 7,886,232 |
Effect of dilutive securities - stock options (in shares) | 8,430 | 7,775 | 8,738 | 10,309 |
Diluted earnings per share (in shares) | 8,715,934 | 7,879,854 | 8,722,266 | 7,896,541 |
Per Share Amount [Abstract] | ||||
Basic earnings per share (in dollars per share) | $ 0.33 | $ 0.41 | $ 0.73 | $ 0.85 |
Effect of dilutive securities - stock options (in dollars per share) | 0 | 0 | 0 | 0 |
Diluted earnings per share (in dollars per share) | $ 0.33 | $ 0.41 | $ 0.73 | $ 0.85 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities not included in computation of earning per share (in shares) | 79,726 | 125,145 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Components of Net Periodic Benefit Cost | ||
Service cost | $ 0 | $ 0 |
Interest cost | 148 | 152 |
Expected return on plan assets | (230) | (234) |
Recognized net actuarial loss | 308 | 36 |
Net periodic (benefit) cost | $ 226 | $ (46) |
Fair Value of Financial Instr68
Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Assets | |||
Securities available for sale, at fair value | $ 355,595 | $ 344,716 | [1] |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 0 | 4,167 | |
Significant Other Observable Inputs Level 2 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 354,225 | 339,236 | |
Significant Unobservable Inputs Level 3 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 1,370 | 1,313 | |
Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Securities available for sale, at fair value | 355,595 | 344,716 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 0 | 4,167 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 354,225 | 339,236 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 1,370 | 1,313 | |
Federal agencies and GSEs [Member] | |||
Assets | |||
Securities available for sale, at fair value | 96,366 | 82,106 | |
Federal agencies and GSEs [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Securities available for sale, at fair value | 96,366 | 82,106 | |
Federal agencies and GSEs [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 0 | 2,995 | |
Federal agencies and GSEs [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 96,366 | 79,111 | |
Federal agencies and GSEs [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 0 | 0 | |
Mortgage-backed and CMOs [Member] | |||
Assets | |||
Securities available for sale, at fair value | 60,401 | 57,425 | |
Mortgage-backed and CMOs [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Securities available for sale, at fair value | 60,401 | 57,425 | |
Mortgage-backed and CMOs [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 0 | 0 | |
Mortgage-backed and CMOs [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 60,401 | 57,425 | |
Mortgage-backed and CMOs [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 0 | 0 | |
State and municipal [Member] | |||
Assets | |||
Securities available for sale, at fair value | 188,669 | 195,493 | |
State and municipal [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Securities available for sale, at fair value | 188,669 | 195,493 | |
State and municipal [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 0 | 1,172 | |
State and municipal [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 188,669 | 194,321 | |
State and municipal [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 0 | 0 | |
Corporate [Member] | |||
Assets | |||
Securities available for sale, at fair value | 8,789 | 8,379 | |
Corporate [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Securities available for sale, at fair value | 8,789 | 8,379 | |
Corporate [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 0 | 0 | |
Corporate [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 8,789 | 8,379 | |
Corporate [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 0 | 0 | |
Equity [Member] | |||
Assets | |||
Securities available for sale, at fair value | 1,370 | 1,313 | |
Equity [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Securities available for sale, at fair value | 1,370 | 1,313 | |
Equity [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 0 | 0 | |
Equity [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | |||
Assets | |||
Securities available for sale, at fair value | 0 | 0 | |
Equity [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | |||
Assets | |||
Securities available for sale, at fair value | $ 1,370 | $ 1,313 | |
[1] | Derived from audited consolidated financial statements. |
Fair Value of Financial Instr69
Fair Value of Financial Instruments - Level 3 Fair Value Measurements (Details) - Equity [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balances as of January 31, 2015 | $ 1,313 |
Total Realized / Unrealized Gains (Losses) Included in Net Income | 0 |
Total Realized / Unrealized Gains (Losses) Included in Other Comprehensive Income | 57 |
Total Realized / Unrealized Gains (Losses) Included in Purchases, Sales, Issuances and Settlements, Net | 0 |
Transfer In (Out) of Level 3 | 0 |
Balances as of June 30, 2015 | $ 1,370 |
Fair Value of Financial Instr70
Fair Value of Financial Instruments - Assets Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ||
Assets | ||
Loans held for sale | $ 0 | $ 0 |
Significant Other Observable Inputs Level 2 [Member] | ||
Assets | ||
Loans held for sale | 2,720 | 616 |
Significant Unobservable Inputs Level 3 [Member] | ||
Assets | ||
Loans held for sale | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Assets | ||
Loans held for sale | 2,720 | 616 |
Impaired loans, net of valuation allowance | 1,835 | 1,705 |
Other real estate owned | 2,113 | 2,119 |
Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ||
Assets | ||
Loans held for sale | 0 | 0 |
Impaired loans, net of valuation allowance | 0 | 0 |
Other real estate owned | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs Level 2 [Member] | ||
Assets | ||
Loans held for sale | 2,720 | 616 |
Impaired loans, net of valuation allowance | 0 | 0 |
Other real estate owned | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Assets | ||
Loans held for sale | 0 | 0 |
Impaired loans, net of valuation allowance | 1,835 | 1,705 |
Other real estate owned | $ 2,113 | $ 2,119 |
Fair Value of Financial Instr71
Fair Value of Financial Instruments - Level 3 Quantitative Information (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Securities available-for-sale [Member] | Discounted Appraised Value [Member] | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
Selling cost (in hundredths) | 37.00% | 31.00% |
Impaired Loans [Member] | Discounted Appraised Value [Member] | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
Selling cost (in hundredths) | 6.00% | 6.00% |
Impaired Loans [Member] | Discounted Cash Flow Analysis [Member] | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
Selling cost (in hundredths) | 6.00% | 4.00% |
Other Real Estate Owned [Member] | Discounted Appraised Value [Member] | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
Selling cost (in hundredths) | 6.00% | 6.00% |
Fair Value of Financial Instr72
Fair Value of Financial Instruments - Carrying and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Financial Assets: | |||
Securities available for sale | $ 355,595 | $ 344,716 | [1] |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | |||
Financial Assets: | |||
Cash and cash equivalents | 75,714 | 67,303 | |
Securities available for sale | 0 | 4,167 | |
Restricted stock | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans, net of allowance | 0 | 0 | |
Bank owned life insurance | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Financial Liabilities: | |||
Deposits | 0 | 0 | |
Repurchase agreements | 0 | 0 | |
Other borrowings | 0 | 0 | |
Trust preferred capital notes | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Significant Other Observable Inputs Level 2 [Member] | |||
Financial Assets: | |||
Cash and cash equivalents | 0 | 0 | |
Securities available for sale | 354,225 | 339,236 | |
Restricted stock | 5,329 | 4,367 | |
Loans held for sale | 2,720 | 616 | |
Loans, net of allowance | 0 | 0 | |
Bank owned life insurance | 17,376 | 15,193 | |
Accrued interest receivable | 4,562 | 4,534 | |
Financial Liabilities: | |||
Deposits | 834,455 | 712,019 | |
Repurchase agreements | 50,123 | 53,480 | |
Other borrowings | 0 | 0 | |
Trust preferred capital notes | 0 | 0 | |
Accrued interest payable | 598 | 587 | |
Significant Unobservable Inputs Level 3 [Member] | |||
Financial Assets: | |||
Cash and cash equivalents | 0 | 0 | |
Securities available for sale | 1,370 | 1,313 | |
Restricted stock | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans, net of allowance | 976,220 | 832,708 | |
Bank owned life insurance | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Financial Liabilities: | |||
Deposits | 400,782 | 365,310 | |
Repurchase agreements | 0 | 0 | |
Other borrowings | 40,425 | 10,432 | |
Trust preferred capital notes | 21,353 | 22,009 | |
Accrued interest payable | 0 | 0 | |
Carrying Value [Member] | |||
Financial Assets: | |||
Cash and cash equivalents | 75,714 | 67,303 | |
Securities available for sale | 355,595 | 344,716 | |
Restricted stock | 5,329 | 4,367 | |
Loans held for sale | 2,720 | 616 | |
Loans, net of allowance | 970,112 | 828,498 | |
Bank owned life insurance | 17,376 | 15,193 | |
Accrued interest receivable | 4,562 | 4,534 | |
Financial Liabilities: | |||
Deposits | 1,234,018 | 1,075,837 | |
Repurchase agreements | 50,123 | 53,480 | |
Other borrowings | 9,947 | 9,935 | |
Trust preferred capital notes | 27,571 | 27,521 | |
Accrued interest payable | 598 | 587 | |
Fair Value [Member] | |||
Financial Assets: | |||
Cash and cash equivalents | 75,714 | 67,303 | |
Securities available for sale | 355,595 | 344,716 | |
Restricted stock | 5,329 | 4,367 | |
Loans held for sale | 2,720 | 616 | |
Loans, net of allowance | 976,220 | 832,708 | |
Bank owned life insurance | 17,376 | 15,193 | |
Accrued interest receivable | 4,562 | 4,534 | |
Financial Liabilities: | |||
Deposits | 1,235,237 | 1,077,329 | |
Repurchase agreements | 50,123 | 53,480 | |
Other borrowings | 40,425 | 10,432 | |
Trust preferred capital notes | 21,353 | 22,009 | |
Accrued interest payable | $ 598 | $ 587 | |
[1] | Derived from audited consolidated financial statements. |
Fair Value of Financial Instr73
Fair Value of Financial Instruments - Narrative (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value adjustments | $ 0 | $ 0 |
Segment and Related Informati74
Segment and Related Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)segment | Jun. 30, 2014USD ($) | Jan. 01, 2015USD ($) | Dec. 31, 2014USD ($) | [1] | |
Segment Reporting [Abstract] | |||||||
Number of reportable segments | segment | 2 | ||||||
Segment Reporting Information [Line Items] | |||||||
Interest income | $ 13,837 | $ 11,780 | $ 27,676 | $ 23,734 | |||
Interest expense | 1,455 | 1,429 | 2,916 | 2,924 | |||
Noninterest income | 3,258 | 2,700 | 6,414 | 5,403 | |||
Income (loss) before income taxes | 3,898 | 4,536 | 8,785 | 9,275 | |||
Net income (loss) | 2,880 | 3,233 | 6,395 | 6,683 | |||
Depreciation and amortization | 742 | 753 | 1,483 | 1,518 | |||
Total assets | 1,524,356 | 1,300,648 | 1,524,356 | 1,300,648 | $ 1,346,492 | ||
Goodwill | 44,210 | 39,043 | 44,210 | 39,043 | $ 5,167 | $ 39,043 | |
Capital expenditures | 253 | 147 | 601 | 266 | |||
Community Banking [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Interest income | 13,822 | 11,765 | 27,646 | 23,704 | |||
Interest expense | 1,267 | 1,244 | 2,544 | 2,555 | |||
Noninterest income | 2,038 | 1,539 | 4,021 | 2,970 | |||
Income (loss) before income taxes | 3,647 | 4,079 | 8,154 | 8,150 | |||
Net income (loss) | 2,671 | 2,891 | 5,896 | 5,840 | |||
Depreciation and amortization | 739 | 751 | 1,477 | 1,513 | |||
Total assets | 1,522,208 | 1,298,664 | 1,522,208 | 1,298,664 | |||
Goodwill | 44,210 | 39,043 | 44,210 | 39,043 | |||
Capital expenditures | 232 | 147 | 580 | 266 | |||
Trust and Investment Services [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Interest income | 0 | 0 | 0 | 0 | |||
Interest expense | 0 | 0 | 0 | 0 | |||
Noninterest income | 1,215 | 1,156 | 2,383 | 2,423 | |||
Income (loss) before income taxes | 573 | 777 | 1,223 | 1,651 | |||
Net income (loss) | 422 | 553 | 890 | 1,190 | |||
Depreciation and amortization | 3 | 2 | 6 | 5 | |||
Total assets | 0 | 0 | 0 | 0 | |||
Goodwill | 0 | 0 | 0 | 0 | |||
Capital expenditures | 21 | 0 | 21 | 0 | |||
Other [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Interest income | 15 | 15 | 30 | 30 | |||
Interest expense | 188 | 185 | 372 | 369 | |||
Noninterest income | 5 | 5 | 10 | 10 | |||
Income (loss) before income taxes | (322) | (320) | (592) | (526) | |||
Net income (loss) | (213) | (211) | (391) | (347) | |||
Depreciation and amortization | 0 | 0 | 0 | 0 | |||
Total assets | 222,526 | 199,621 | 222,526 | 199,621 | |||
Goodwill | 0 | 0 | 0 | 0 | |||
Capital expenditures | 0 | 0 | 0 | 0 | |||
Intersegment Eliminations [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Interest income | 0 | 0 | 0 | 0 | |||
Interest expense | 0 | 0 | 0 | 0 | |||
Noninterest income | 0 | 0 | 0 | 0 | |||
Income (loss) before income taxes | 0 | 0 | 0 | 0 | |||
Net income (loss) | 0 | 0 | 0 | 0 | |||
Depreciation and amortization | 0 | 0 | 0 | 0 | |||
Total assets | (220,378) | (197,637) | (220,378) | (197,637) | |||
Goodwill | 0 | 0 | 0 | 0 | |||
Capital expenditures | $ 0 | $ 0 | $ 0 | $ 0 | |||
[1] | Derived from audited consolidated financial statements. |
Supplemental Cash Flow Inform75
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | Jan. 01, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Schedule of Cash and Cash Equivalents: | ||||||
Cash and due from banks | $ 24,548 | $ 21,295 | $ 29,272 | [1] | ||
Interest-bearing deposits in other banks | 50,758 | 22,948 | 38,031 | [1] | ||
Federal funds sold | 408 | 0 | 0 | [1] | ||
Cash and Cash Equivalents | 75,714 | 44,243 | $ 67,303 | $ 67,681 | ||
Cash paid for: | ||||||
Interest on deposits and borrowed funds | 2,905 | 2,943 | ||||
Income taxes | 2,415 | 2,439 | ||||
Noncash investing and financing activities: | ||||||
Transfer of loans to other real estate owned | 1,047 | 386 | ||||
Unrealized gain (loss) on securities available for sale | (1,941) | 4,042 | ||||
Assets acquired: | ||||||
Investment securities | $ 18,800 | 18,800 | 0 | |||
Restricted stock | 738 | 738 | 0 | |||
Loans | 114,902 | 114,902 | 0 | |||
Premises and equipment | 1,475 | 0 | ||||
Deferred income taxes | 2,683 | 0 | ||||
Core deposit intangible | 1,839 | 1,839 | 0 | |||
Other real estate owned | 168 | 168 | 0 | |||
Bank owned life insurance | 1,955 | 1,955 | 0 | |||
Other assets | 917 | 917 | 0 | |||
Liabilities assumed: | ||||||
Deposits | 137,323 | 137,323 | 0 | |||
Other liabilities | 3,076 | 3,076 | 0 | |||
Consideration: | ||||||
Issuance of common stock | $ 20,483 | 20,483 | 0 | |||
Fair value of replacement stock options | $ 0 | $ 0 | ||||
[1] | Derived from audited consolidated financial statements. |
Accumulated Other Comprehensi76
Accumulated Other Comprehensive Income - Components of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Accumulated Other Comprehensive Income, Beginning Balance | $ 4,265 | $ 3,671 | $ 3,664 | [1] | $ 2,520 |
Net unrealized losses on securities available for sale, net of tax, $848, ($920), $1,481, $(488) respectively | (1,708) | 1,574 | (906) | 2,750 | |
Reclassification adjustment for gains on securities, net of tax, $(52), $(82), $(66), and $(191) respectively | (155) | (98) | (356) | (123) | |
Accumulated Other Comprehensive Income, Ending Balance | 2,402 | 5,147 | 2,402 | 5,147 | |
Net unrealized gains (losses) on securities available for sale, tax | (920) | 848 | (488) | 1,481 | |
Reclassification adjustment for gains on securities, tax | (82) | (52) | (191) | (66) | |
Adjustments Related to Pension Benefits [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Accumulated Other Comprehensive Income, Beginning Balance | (2,181) | (1,058) | (2,181) | (1,058) | |
Net unrealized losses on securities available for sale, net of tax, $848, ($920), $1,481, $(488) respectively | 0 | 0 | 0 | 0 | |
Reclassification adjustment for gains on securities, net of tax, $(52), $(82), $(66), and $(191) respectively | 0 | 0 | 0 | 0 | |
Accumulated Other Comprehensive Income, Ending Balance | (2,181) | (1,058) | (2,181) | (1,058) | |
Net Unrealized Gains (Losses) on Securities [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Accumulated Other Comprehensive Income, Beginning Balance | 6,446 | 4,729 | 5,845 | 3,578 | |
Net unrealized losses on securities available for sale, net of tax, $848, ($920), $1,481, $(488) respectively | (1,708) | 1,574 | (906) | 2,750 | |
Reclassification adjustment for gains on securities, net of tax, $(52), $(82), $(66), and $(191) respectively | (155) | (98) | (356) | (123) | |
Accumulated Other Comprehensive Income, Ending Balance | $ 4,583 | $ 6,205 | $ 4,583 | $ 6,205 | |
[1] | Derived from audited consolidated financial statements. |
Accumulated Other Comprehensi77
Accumulated Other Comprehensive Income - Reclassification (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Securities gains, net | $ 237 | $ 150 | $ 547 | $ 189 |
Income tax expense | (1,018) | (1,303) | (2,390) | (2,592) |
Net Income | 2,880 | $ 3,233 | 6,395 | $ 6,683 |
Realized gain on sale of securities [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Securities gains, net | 237 | 547 | ||
Income tax expense | (82) | (191) | ||
Net Income | $ 155 | $ 356 |