Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 02, 2018 | Jun. 30, 2017 | |
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 Public Float | $ 294,857,157 | ||
Entity Common Stock, Shares Outstanding | 8,675,516 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 28,594,000 | $ 20,268,000 |
Interest-bearing deposits in other banks | 23,883,000 | 32,939,000 |
Securities available for sale, at fair value | 321,337,000 | 346,502,000 |
Restricted stock, at cost | 6,110,000 | 6,224,000 |
Loans held for sale | 1,639,000 | 5,996,000 |
Loans, net of unearned income | 1,336,125,000 | 1,164,821,000 |
Less allowance for loan losses | (13,603,000) | (12,801,000) |
Net loans | 1,322,522,000 | 1,152,020,000 |
Premises and equipment, net | 25,901,000 | 25,439,000 |
Other real estate owned, net of valuation allowance of $147 in 2017 and $192 in 2016 | 1,225,000 | 1,328,000 |
Goodwill | 43,872,000 | 43,872,000 |
Core deposit intangibles, net | 1,191,000 | 1,719,000 |
Bank owned life insurance | 18,460,000 | 18,163,000 |
Accrued interest receivable and other assets | 21,344,000 | 24,168,000 |
Total assets | 1,816,078,000 | 1,678,638,000 |
Liabilities: | ||
Demand deposits -- noninterest bearing | 394,344,000 | 378,600,000 |
Demand deposits -- interest bearing | 226,914,000 | 209,430,000 |
Money market deposits | 403,024,000 | 283,035,000 |
Savings deposits | 126,786,000 | 120,720,000 |
Time deposits | 383,658,000 | 378,855,000 |
Total deposits | 1,534,726,000 | 1,370,640,000 |
Short-term borrowings: | ||
Customer repurchase agreements | 10,726,000 | 39,166,000 |
Other short-term borrowings | 24,000,000 | 20,000,000 |
Long-term borrowings | 0 | 9,980,000 |
Junior subordinated debt | 27,826,000 | 27,724,000 |
Accrued interest payable and other liabilities | 10,083,000 | 9,748,000 |
Total liabilities | 1,607,361,000 | 1,477,258,000 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding | 0 | 0 |
Common stock, $1 par, 20,000,000 shares authorized 8,650,574 shares outstanding at December 31, 2017 and 8,618,051 shares outstanding at December 31, 2016 | 8,604,000 | 8,578,000 |
Capital in excess of par value | 76,179,000 | 75,076,000 |
Retained earnings | 127,010,000 | 119,600,000 |
Accumulated other comprehensive loss, net | (3,076,000) | (1,874,000) |
Total shareholders' equity | 208,717,000 | 201,380,000 |
Total liabilities and shareholders' equity | $ 1,816,078,000 | $ 1,678,638,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Other real estate owned, valuation allowance | $ 147 | $ 192 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 |
Preferred stock, authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, outstanding (in shares) | 8,650,574 | 8,618,051 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest and Dividend Income: | |||
Interest and fees on loans | $ 55,276 | $ 47,971 | $ 46,860 |
Interest on federal funds sold | 0 | 0 | 6 |
Interest and dividends on securities: | |||
Taxable | 4,666 | 4,454 | 4,072 |
Tax-exempt | 2,043 | 3,135 | 3,681 |
Dividends | 319 | 334 | 346 |
Other interest income | 734 | 276 | 204 |
Total interest and dividend income | 63,038 | 56,170 | 55,169 |
Interest Expense: | |||
Interest on deposits | 5,794 | 5,103 | 4,811 |
Interest on short-term borrowings | 173 | 10 | 9 |
Interest on long-term borrowings | 296 | 325 | 324 |
Interest on junior subordinated debt | 1,028 | 878 | 760 |
Total interest expense | 7,291 | 6,316 | 5,904 |
Net Interest Income | 55,747 | 49,854 | 49,265 |
Provision for Loan Losses | 1,016 | 250 | 950 |
Net Interest Income after Provision for Loan Losses | 54,731 | 49,604 | 48,315 |
Noninterest Income: | |||
Trust fees | 3,926 | 3,791 | 3,935 |
Service charges on deposit accounts | 2,002 | 2,048 | 2,066 |
Other fees and commissions | 2,895 | 2,680 | 2,377 |
Mortgage banking income | 2,208 | 1,713 | 1,320 |
Securities gains, net | 812 | 836 | 867 |
Brokerage fees | 829 | 843 | 946 |
Income from Small Business Investment Companies | 236 | 463 | 912 |
Gains (losses) on premises and equipment, net | 344 | (9) | 11 |
Other | 975 | 1,140 | 853 |
Total noninterest income | 14,227 | 13,505 | 13,287 |
Noninterest Expense: | |||
Salaries | 19,829 | 17,568 | 16,554 |
Employee benefits | 4,519 | 4,264 | 4,311 |
Occupancy and equipment | 4,487 | 4,246 | 4,425 |
FDIC assessment | 538 | 647 | 750 |
Bank franchise tax | 1,072 | 995 | 898 |
Core deposit intangible amortization | 528 | 964 | 1,201 |
Data processing | 2,014 | 1,828 | 1,725 |
Software | 1,144 | 1,143 | 1,158 |
Other real estate owned, net | 303 | 336 | 99 |
Merger related expenses | 0 | 0 | 1,998 |
Other | 8,449 | 7,810 | 7,424 |
Total noninterest expense | 42,883 | 39,801 | 40,543 |
Income Before Income Taxes | 26,075 | 23,308 | 21,059 |
Income Taxes | 10,826 | 7,007 | 6,020 |
Net Income | $ 15,249 | $ 16,301 | $ 15,039 |
Net Income Per Common Share: | |||
Basic (in dollars per share) | $ 1.76 | $ 1.89 | $ 1.73 |
Diluted (in dollars per share) | $ 1.76 | $ 1.89 | $ 1.73 |
Average Common Shares Outstanding: | |||
Basic (in shares) | 8,641,717 | 8,611,507 | 8,680,502 |
Diluted (in shares) | 8,660,628 | 8,621,241 | 8,688,450 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 15,249 | $ 16,301 | $ 15,039 |
Other comprehensive loss: | |||
Unrealized gains (losses) on securities available for sale | 35 | (5,736) | (1,785) |
Tax effect | (12) | 2,007 | 626 |
Reclassification adjustment for realized gains on securities | (812) | (836) | (867) |
Tax effect | 284 | 293 | 303 |
Change in unfunded pension liability | (234) | 166 | 538 |
Tax effect | (82) | 58 | 189 |
Other comprehensive loss | (657) | (4,164) | (1,374) |
Comprehensive income | $ 14,592 | $ 12,137 | $ 13,665 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | ||
Beginning Balance at Dec. 31, 2014 | $ 173,780 | $ 7,872 | $ 57,650 | $ 104,594 | $ 3,664 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 15,039 | 15,039 | |||||
Other comprehensive loss | (1,374) | (1,374) | |||||
Issuance of common stock | 20,483 | 826 | 19,657 | ||||
Stock repurchased | (3,506) | (151) | (3,355) | ||||
Stock options exercised | 789 | 43 | 746 | ||||
Equity-based compensation | 692 | 15 | 677 | ||||
Cash dividends paid | (8,068) | (8,068) | |||||
Ending Balance at Dec. 31, 2015 | 197,835 | 8,605 | 75,375 | 111,565 | 2,290 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 16,301 | 16,301 | |||||
Other comprehensive loss | (4,164) | (4,164) | |||||
Stock repurchased | (1,292) | (51) | (1,241) | ||||
Stock options exercised | 142 | 6 | 136 | ||||
Vesting of restricted stock | 5 | (5) | |||||
Equity-based compensation | 824 | 13 | 811 | ||||
Cash dividends paid | (8,266) | (8,266) | |||||
Ending Balance at Dec. 31, 2016 | 201,380 | 8,578 | 75,076 | 119,600 | (1,874) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 15,249 | 15,249 | |||||
Other comprehensive loss | (657) | (657) | |||||
Reclass stranded tax effects from tax rate change | (545) | 545 | [1] | (545) | [1] | ||
Stock options exercised | 113 | 5 | 108 | ||||
Vesting of restricted stock | 8 | (8) | |||||
Equity-based compensation | 1,016 | 13 | 1,003 | ||||
Cash dividends paid | (8,384) | (8,384) | |||||
Ending Balance at Dec. 31, 2017 | $ 208,717 | $ 8,604 | $ 76,179 | $ 127,010 | $ (3,076) | ||
[1] | See Note 1 for Adoption of New Accounting Standards |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock repurchased during period (in shares) | 51,384 | 150,656 | |
Stock options exercised (in shares) | 4,950 | 5,784 | 42,680 |
Equity based compensation (in shares) | 27,546 | 41,644 | 15,386 |
Cash dividends paid (in dollars per share) | $ 0.97 | $ 0.96 | $ 0.93 |
Common Stock | |||
Issuance of common stock (in shares) | 825,586 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities: | |||
Net income | $ 15,249 | $ 16,301 | $ 15,039 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 1,016 | 250 | 950 |
Depreciation | 1,877 | 1,892 | 1,833 |
Net accretion of acquisition accounting adjustments | (2,114) | (2,318) | (3,197) |
Core deposit intangible amortization | 528 | 964 | 1,201 |
Net amortization of securities | 1,831 | 2,678 | 2,720 |
Net gain on sale or call of securities | (812) | (836) | (867) |
Gain on sale of loans held for sale | (1,765) | (1,328) | (1,041) |
Proceeds from sales of loans held for sale | 92,733 | 76,928 | 57,421 |
Originations of loans held for sale | (86,611) | (78,330) | (59,030) |
Net loss (gain) on other real estate owned | 22 | 72 | (185) |
Valuation allowance on other real estate owned | 143 | 156 | 86 |
Net loss (gain) on sale of premises and equipment | (344) | 9 | (11) |
Equity based compensation expense | 1,016 | 824 | 692 |
Net change in bank owned life insurance | (297) | (505) | (510) |
Deferred income tax expense | 3,471 | 882 | 1,741 |
Net change in interest receivable | (148) | (967) | 744 |
Net change in other assets | (379) | (1,390) | 1,778 |
Net change in interest payable | 51 | (32) | 16 |
Net change in other liabilities | 284 | 867 | (118) |
Net cash provided by operating activities | 25,751 | 16,117 | 19,262 |
Cash Flows from Investing Activities: | |||
Proceeds from sales of securities available for sale | 55,903 | 13,019 | 15,425 |
Proceeds from maturities, calls and paydowns of securities available for sale | 52,397 | 140,483 | 122,984 |
Purchases of securities available for sale | (84,931) | (168,069) | (120,040) |
Net change in restricted stock | 114 | (912) | (358) |
Net increase in loans | (170,515) | (157,198) | (48,318) |
Proceeds from sale of premises and equipment | 653 | 1 | 44 |
Purchases of premises and equipment | (2,648) | (3,613) | (1,474) |
Proceeds from sales of other real estate owned | 1,171 | 923 | 2,135 |
Cash paid in bank acquisition | 0 | 0 | (5,935) |
Cash acquired in bank acquisition | 0 | 0 | 18,173 |
Net cash used in investing activities | (147,856) | (175,366) | (17,364) |
Cash Flows from Financing Activities: | |||
Net change in demand, money market, and savings deposits | 159,283 | 126,435 | 70,879 |
Net change in time deposits | 4,803 | (18,455) | (21,089) |
Net change in customer repurchase agreements | (28,440) | (1,445) | (12,869) |
Net change in other short-term borrowings | 4,000 | 20,000 | 0 |
Net change in long-term borrowings | (10,000) | 0 | 0 |
Common stock dividends paid | (8,384) | (8,266) | (8,068) |
Repurchase of common stock | 0 | (1,292) | (3,506) |
Proceeds from exercise of stock options | 113 | 142 | 789 |
Net cash provided by financing activities | 121,375 | 117,119 | 26,136 |
Net Increase (Decrease) in Cash and Cash Equivalents | (730) | (42,130) | 28,034 |
Cash and Cash Equivalents at Beginning of Period | 53,207 | 95,337 | 67,303 |
Cash and Cash Equivalents at End of Period | $ 52,477 | $ 53,207 | $ 95,337 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations and Consolidation 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, goodwill and intangible assets, unfunded pension liability, other-than-temporary impairment of securities, accounting for merger and acquisition activity, accounting for acquired loans with specific credit-related deterioration, the valuation of other real estate owned ("OREO"), and the valuation of deferred tax assets and liabilities. In April 2006, AMNB Statutory Trust I, a Delaware statutory trust (the "AMNB Trust") and an unconsolidated wholly owned subsidiary of the Company, was formed for the purpose of issuing preferred securities (the "Trust Preferred Securities") in a private placement pursuant to an applicable exemption from registration. Proceeds from the securities were used to fund the acquisition of Community First Financial Corporation ("Community First") which occurred in April 2006. On July 1, 2011, the Company completed its acquisition of MidCarolina Financial Corporation ("MidCarolina") pursuant to the terms and conditions of the Agreement and Plan of Reorganization, dated December 15, 2010, between the Company and MidCarolina. MidCarolina was headquartered in Burlington, North Carolina, and engaged in banking operations through its subsidiary bank, MidCarolina Bank. The transaction has expanded the Company's footprint in North Carolina, adding eight branches in Alamance and Guilford Counties . In July 2011, and in connection with its acquisition of MidCarolina, the Company assumed liabilities of the MidCarolina Trust I and MidCarolina Trust II, two separate unconsolidated Delaware statutory trusts (the "MidCarolina Trusts"), which were also formed for the purpose of issuing preferred securities. Refer to Note 11 for further details concerning these entities. On January 1, 2015, the Company completed its acquisition of MainStreet BankShares, Inc. ("MainStreet") pursuant to the terms and conditions of the Agreement and Plan of Reorganization, dated as of August 24, 2014, between the Company and MainStreet (the "MainStreet Merger Agreement"). Immediately after the merger of MainStreet into the Company, Franklin Community Bank, N.A., MainStreet's wholly-owned bank subsidiary ("Franklin Bank"), merged with and into the Bank. Franklin Bank provided banking services to its customers from three banking offices located in Rocky Mount, Hardy, and Union Hall, Virginia. 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 11. Cash and Cash Equivalents Cash includes cash on hand, cash with correspondent banks, and cash on deposit at the Federal Reserve Bank of Richmond. Cash equivalents are short-term, highly liquid investments that are readily convertible to cash with original maturities of three months or less and are subject to an insignificant risk of change in value. Cash and cash equivalents are carried at cost. Interest-bearing Deposits in Other Banks Interest-bearing deposits in other banks mature within one year and are carried at cost. Securities Certain debt securities that management has the positive intent and ability to hold to maturity are classified as "held to maturity" and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Securities not classified as held to maturity or trading, including equity securities with readily determinable fair values, are classified as "available for sale" and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company does not currently have any securities in held to maturity or trading and has no plans to add any to either category. Management evaluates securities for other-than-temporary impairment ("OTTI") on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement and, (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. Due to the nature and restrictions placed on the Company's investment in common stock of the Federal Home Loan Bank of Atlanta ("FHLB") and the Federal Reserve Bank of Richmond, these securities have been classified as restricted equity securities and carried at cost. Loans Held for Sale Secondary market mortgage loans are designated as held for sale at the time of their origination. These loans are pre-sold with servicing released and the Company does not retain any interest after the loans are sold. These loans consist primarily of fixed-rate, single-family residential mortgage loans which meet the underwriting characteristics of certain government-sponsored enterprises (conforming loans). In addition, the Company requires a firm purchase commitment from a permanent investor before a loan can be committed, thus limiting interest rate risk. Loans held for sale are carried at fair value. Gains on sales of loans are recognized at the loan closing date and are included in noninterest income. Derivative Loan Commitments The Company enters into mortgage loan commitments whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Mortgage loan commitments are referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. Loan commitments that are derivatives are recognized at fair value on the consolidated balance sheets with net changes in their fair values recorded in other expenses. Derivative loan commitments resulted in no income or loss for 2017 , 2016 or 2015 . The period of time between issuance of a loan commitment and sale of the loan generally ranges from 30 to 60 days . The Company protects itself from changes in interest rates through the use of best efforts forward delivery contracts, by committing to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed the interest rate risk on the loan. As a result, the Company is not generally exposed to significant losses nor will it realize significant gains related to its rate lock commitments due to changes in interest rates. The correlation between the rate lock commitments and the best efforts contracts is very high due to their similarity. The fair value of rate lock commitments and best efforts contracts is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets. The Company determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the estimated value of the underlying assets while taking into consideration the probability that the loan will be funded. Loans The Company makes mortgage, commercial, and consumer loans. A substantial portion of the loan portfolio is secured by real estate. The ability of the Company's debtors to honor their contracts is dependent upon the real estate market and general economic conditions in the Company's market area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off, generally are reported at their outstanding unpaid principal balance adjusted for the allowance for loan losses, and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. The accrual of interest on loans is generally discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Loans are typically charged off when the loan is 120 days past due, unless secured and in process of collection. Loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. Interest accrued but not collected for loans that are placed on nonaccrual status or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash basis or cost recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. A loan is considered past due when a payment of principal or interest or both is due but not paid. Management closely monitors past due loans in timeframes of 30-59 days, 60-89 days, and 90 or more days past due. These policies apply to all loan portfolio classes and segments. Substandard and doubtful risk graded commercial, commercial real estate, and construction loans equal to or greater than $100,000 are reviewed for impairment. All troubled debt restructurings, regardless of dollar amount, are also evaluated for impairment. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment and establishing a specific allowance include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial, commercial real estate, and construction loans by either the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Generally, large groups of smaller balance homogeneous loans (residential real estate and consumer loans) are collectively evaluated for impairment. The Company's policy for recognizing interest income on impaired loans is consistent with its nonaccrual policy. The Company's loan portfolio is organized by major segment. These include: commercial, commercial real estate, residential real estate and consumer loans. Each segment has particular risk characteristics that are specific to the borrower and the generic category of credit. Commercial loan repayments are highly dependent on cash flows associated with the underlying business and its profitability. They can also be impacted by changes in collateral values. Commercial real estate loans share the same general risk characteristics as commercial loans, but are often more dependent on the value of the underlying real estate collateral and, when construction is involved, the ultimate completion of and sale of the project. Residential real estate loans are generally dependent on the value of collateral and the credit worthiness of the underlying borrower. Consumer loans are very similar in risk characteristics to residential real estate. In connection with the MidCarolina and MainStreet mergers, certain loans were acquired which exhibited deteriorated credit quality since origination and for which the Company does not expect to collect all contractual payments. These purchased credit impaired loans are recorded at the amount paid, such that there is no carryover of the seller's allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Such purchased credit impaired loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as, credit score, loan type, and date of origination. The Company estimates the amount and timing of expected cash flows for each loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan's or pool's contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Troubled Debt Restructurings In situations where, for economic or legal reasons related to a borrower's financial condition, management may grant a concession to the borrower that it would not otherwise consider, the related loan is classified as a troubled debt restructuring ("TDRs"). Management strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. The Company has $1,306,000 in loans classified as TDRs as of December 31, 2017 and $2,670,000 as of December 31, 2016 . Allowance for Loan Losses The purpose of the allowance for loan losses ("ALLL") is to provide for probable losses inherent in the loan portfolio. The allowance is increased by the provision for loan losses and by recoveries of previously charged-off loans. Loan charge-offs decrease the allowance. The goal of the Company is to maintain an appropriate, systematic, and consistently applied process to determine the amounts of the ALLL and the provision for loan loss expense. The Company uses certain practices to manage its credit risk. These practices include (1) appropriate lending limits for loan officers, (2) a loan approval process, (3) careful underwriting of loan requests, including analysis of borrowers, cash flows, collateral, and market risks, (4) regular monitoring of the portfolio, including diversification by type and geography, (5) review of loans by the Loan Review department, which operates independently of loan production (the Loan Review function consists of a co-sourced arrangement using both internal personnel and external vendors to provide the Company with a more robust review function of the loan portfolio), (6) regular meetings of the Credit Committees to discuss portfolio and policy changes and make decisions on large or unusual loan requests, and (7) regular meetings of the Asset Quality Committee which reviews the status of individual loans. Risk grades are assigned as part of the loan origination process. From time to time risk grades may be modified as warranted by the facts and circumstances surrounding the credit. Calculation and analysis of the allowance for loan losses is prepared quarterly by the Finance Department. The Company's Credit Committee, Capital Management Committee, Audit Committee, and the Board of Directors review the allowance for adequacy. The Company's allowance for loan losses has two basic components: the formula allowance and the specific allowance. Each of these components is determined based upon estimates and judgments. The formula allowance uses historical loss experience as an indicator of future losses, along with various qualitative factors, including levels and trends in delinquencies, nonaccrual loans, charge-offs and recoveries, trends in volume and terms of loans, effects of changes in underwriting standards, experience of lending staff, economic conditions, and portfolio concentrations. In the formula allowance for commercial and commercial real estate loans, the historical loss rate is combined with the qualitative factors, resulting in an adjusted loss factor for each risk-grade category of loans. The period-end balances for each loan risk-grade category are multiplied by the adjusted loss factor. Allowance calculations for consumer loans are calculated based on historical losses for each product category without regard to risk grade. This loss rate is combined with qualitative factors resulting in an adjusted loss factor for each product category. The specific allowance uses various techniques to arrive at an estimate of loss for specifically identified impaired loans. These include: • The present value of expected future cash flows discounted at the loan's effective interest rate. The effective interest rate on a loan is the rate of return implicit in the loan (that is, the contractual interest rate adjusted for any net deferred loan fees or costs and any premium or discount existing at the origination or acquisition of the loan); • The loan's observable market price, or • The fair value of the collateral, net of estimated costs to dispose, if the loan is collateral dependent. The use of these computed values is inherently subjective and actual losses could be greater or less than the estimates. No single statistic, formula, or measurement determines the adequacy of the allowance. Management makes subjective and complex judgments about matters that are inherently uncertain, and different amounts would be reported under different conditions or using different assumptions. For analytical purposes, management allocates a portion of the allowance to specific loan categories and specific loans. However, the entire allowance is used to absorb credit losses inherent in the loan portfolio, including identified and unidentified losses. The relationships and ratios used in calculating the allowance, including the qualitative factors, may change from period to period as facts and circumstances evolve. Furthermore, management cannot provide assurance that in any particular period the Company will not have sizeable credit losses in relation to the amount reserved. Management may find it necessary to significantly adjust the allowance, considering current factors at the time. Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation and amortization. Premises and equipment are depreciated over their estimated useful lives ranging from three years to thirty-nine years ; leasehold improvements are amortized over the lives of the respective leases or the estimated useful lives of the improvements, whichever is less. Software is generally amortized over three years . Depreciation and amortization are recorded on the straight-line method. Costs of maintenance and repairs are charged to expense as incurred. Costs of replacing structural parts of major units are considered individually and are expensed or capitalized as the facts dictate. Gains and losses on routine dispositions are reflected in current operations. Goodwill and Intangible Assets Goodwill is subject to at least an annual assessment for impairment by applying a fair value based test. Additionally, acquired intangible assets (such as core deposit intangibles) are separately recognized if the benefit of the assets can be sold, transferred, licensed, rented, or exchanged, and amortized over their useful lives. Intangible assets related to branch transactions continued to amortize. The cost of purchased deposit relationships and other intangible assets, based on independent valuation, are being amortized over their estimated lives ranging from eight to ten years. The Company records as goodwill the excess of 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 during the years ended December 31, 2017 , 2016 , or 2015 . Trust Assets Securities and other property held by the trust and investment services segment in a fiduciary or agency capacity are not assets of the Company and are not included in the accompanying consolidated financial statements. Other Real Estate Owned Other real estate owned represents real estate that has been acquired through loan foreclosures or deeds received in lieu of loan payments. Generally, such properties are appraised at the time acquired, and are recorded at fair value less estimated selling costs. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in noninterest expense. Bank Owned Life Insurance The Company has acquired bank owned life insurance ("BOLI") in connection with three acquisitions. The asset is reflected as the cash surrender value of the policies as provided by the insurer on a monthly basis. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Income Taxes The Company uses the balance sheet method to account for deferred income tax assets and liabilities. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company had no liability for unrecognized tax benefits as of December 31, 2017 and 2016 . Stock-Based Compensation Stock compensation accounting guidance Accounting Standards Codification ("ASC") 718, "Compensation – Stock Compensation" requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees' service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Scholes model is used to estimate the fair value of stock options, while the market price of the Company's common stock at the date of grant is used for restricted stock awards. Earnings Per Common Share Basic earnings per common share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflect the impact of additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company consist solely of outstanding stock options, and are determined using the treasury method. Nonvested shares of restricted stock are included in the computation of basic earnings per share because the holder has voting rights and shares in non-forfeitable dividends during the vesting period. Comprehensive Income Comprehensive income is shown in a two statement approach; the first statement presents total net income and its components followed by a second statement that presents all the components of other comprehensive income such as unrealized gains and losses on available for sale securities and changes in the funded status of a defined benefit postretirement plan. In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“AOCI”) . The Company early adopted this new standard in early 2018. ASU 2018-02 requires reclassification from AOCI to retained earnings for "stranded" tax effects resulting from the impact of the newly enacted federal corporate income tax rate on items included in AOCI. The amount of this reclassification in 2017 was $545,000 and is reflected in the Consolidated Statements of Changes in Shareholders' equity. Advertising and Marketing Costs Advertising and marketing costs are expensed as incurred, and were $352,000 , $260,000 , and $356,000 in 2017 , 2016 , and 2015 , respectively. Mergers and Acquisitions Business combinations are accounted for under ASC 805, "Business Combinations", using the acquisition method of accounting. The acquisition method of accounting requires an acquirer to recognize the assets acquired and the liabilities assumed at the acquisition date measured at their fair values as of that date. To determine the fair values, the Company relies on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analyses or other valuation techniques. Under the acquisition method of accounting, the Company identifies the acquirer and the closing date and applies applicable recognition principles and conditions. Acquisition-related costs are costs the Company incurs to effect a business combination. Those costs include advisory, legal, accounting, valuation, and other professional or consulting fees. Some other examples of costs to the Company include systems conversions, integration planning consultants and advertising costs. The Company accounts for acquisition-related costs as expenses in the periods in which the costs are incurred and the services are received, with one exception. The costs to issue debt or equity securities is recognized in accordance with other applicable GAAP. These acquisition-related costs have been and will be included within the Consolidated Statements of Income classified within the noninterest expense caption. Reclassifications Certain reclassifications have been made in prior years financial statements to conform to classifications used in the current year. There were no material reclassifications. Use of Estimates In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and 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, goodwill and intangible assets, unfunded pension liability, other-than-temporary impairment of securities, accounting for merger and acquisition activity, accounting for acquired loans with specific credit-related deterioration, the valuation of other real estate owned, and the valuation of deferred tax assets and liabilities. Adoption of New Accounting Standards During the first quarter of 2017, the Company adopted ASU No. 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employer Share-Based Payment Accounting." This ASU simplifies several aspects of the accounting for share-based payment award transactions, one of which is the recognition of excess tax benefits and deficiencies related to share-based payments, including tax benefits of dividends on share-based payment awards. Prior to the adoption of ASU 2016-09, such tax consequences were recognized as |
Restrictions on Cash
Restrictions on Cash | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Restrictions on Cash | Restrictions on Cash The Company is a member of the Federal Reserve System and is required to maintain certain levels of its cash and cash equivalents as reserves based on regulatory requirements. The gross reserve requirement with the Federal Reserve Bank of Richmond was $2.8 million and $2.3 million at December 31, 2017 and December 31, 2016, respectively. Due to vault cash that exceeded the gross reserve requirement, the balance to be maintained with the Federal Reserve Bank of Richmond was zero at both year ends. The Company maintains cash accounts in other commercial banks. The amount on deposit with correspondent institutions at December 31, 2017 exceeded the insurance limits of the Federal Deposit Insurance Corporation by $239,000 . |
Securities
Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The amortized cost and estimated fair value of investments in securities at December 31, 2017 and 2016 were as follows (dollars in thousands): December 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Securities available for sale: Federal agencies and GSEs $ 114,246 $ 8 $ 2,127 $ 112,127 Mortgage-backed and CMOs 106,163 293 1,140 105,316 State and municipal 92,711 1,262 347 93,626 Corporate 7,842 234 14 8,062 Equity securities 1,383 823 — 2,206 Total securities available for sale $ 322,345 $ 2,620 $ 3,628 $ 321,337 December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Securities available for sale: Federal agencies and GSEs $ 106,379 $ 62 $ 2,387 $ 104,054 Mortgage-backed and CMOs 79,917 514 938 79,493 State and municipal 145,757 2,540 782 147,515 Corporate 13,392 123 23 13,492 Equity securities 1,288 660 — 1,948 Total securities available for sale $ 346,733 $ 3,899 $ 4,130 $ 346,502 The amortized cost and estimated fair value of investments in securities at December 31, 2017 , by contractual maturity, are shown in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Because mortgage-backed securities have both known principal repayment terms as well as unknown principal repayments due to potential borrower pre-payments, it is difficult to accurately predict the final maturity of these investments. Mortgage-backed securities are shown separately (dollars in thousands): Available for Sale Amortized Cost Fair Value Due in one year or less $ 11,540 $ 11,549 Due after one year through five years 102,806 102,982 Due after five years through ten years 73,884 73,072 Due after ten years 26,569 26,212 Mortgage-backed and CMOs 106,163 105,316 Equity securities 1,383 2,206 $ 322,345 $ 321,337 Gross realized gains and losses from the sale of securities available for sale were as follows (dollars in thousands): For the Years Ended December 31, 2017 2016 2015 Realized gains $ 825 $ 844 $ 871 Realized losses (13 ) (8 ) (4 ) Other-than-temporary impairment — — — Securities with a carrying value of approximately $ 166,284,000 and $202,577,000 at December 31, 2017 and 2016 , respectively, were pledged to secure public deposits, repurchase agreements, and for other purposes as required by law. FHLB letters of credit were used as additional collateral in the amounts of $190,700,000 at December 31, 2017 and $130,700,000 at December 31, 2016 . Temporarily Impaired Securities The following table shows estimated 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 December 31, 2017 . 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. Available for sale securities that have been in a continuous unrealized loss position are as follows (dollars in thousands): Total Less than 12 Months 12 Months or More Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Federal agencies and GSEs $ 99,133 $ 2,127 $ 45,474 $ 321 $ 53,659 $ 1,806 Mortgage-backed and CMOs 90,806 1,140 64,449 533 26,357 607 State and municipal 34,550 347 27,442 159 7,108 188 Corporate 1,529 14 495 5 1,034 9 Total $ 226,018 $ 3,628 $ 137,860 $ 1,018 $ 88,158 $ 2,610 Federal agencies and GSEs: The unrealized losses on the Company's investment in 24 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 bases 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 bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2017 . Mortgage-backed securities: The unrealized losses on the Company's investment in 53 GSE mortgage-backed securities were caused by interest rate increases. Sixteen of these securities were in an unrealized loss position for 12 months or more. 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 bases 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 bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2017 . Collateralized Mortgage Obligations: The unrealized loss associated with one private GSE collateralized mortgage obligation ("CMO") is due to normal market fluctuations. This security has been in an unrealized loss position for 12 months or more. 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 bases 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 bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2017 . State and municipal securities : The unrealized losses on 50 state and municipal securities were caused by interest rate increases and not credit deterioration. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases 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 bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2017 . Corporate securities : The unrealized losses on two corporate securities were caused by interest rate increases and not credit deterioration. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases 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 bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2017 . Due to restrictions placed upon the Bank's common stock investment in the Federal Reserve Bank of Richmond and FHLB, these securities have been classified as restricted equity securities and carried at cost. These restricted securities are not subject to the investment security classifications and are included as a separate line item on the Company's Consolidated Balance Sheet. The FHLB requires the Bank to maintain stock in an amount equal to 4.25% of outstanding borrowings and a specific percentage of the Bank's total assets. The Federal Reserve Bank of Richmond requires the Bank to maintain stock with a par value equal to 3.0% of its outstanding capital and an additional 3.0% is on call. Restricted equity securities consist of Federal Reserve Bank of Richmond stock in the amount of $3,587,000 and $3,559,000 as of December 31, 2017 and 2016 and FHLB stock in the amount of $2,523,000 and $2,665,000 as of December 31, 2017 and 2016 , respectively. 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, 2016 (dollars in thousands): Total Less than 12 Months 12 Months or More Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Federal agencies and GSEs $ 89,597 $ 2,387 $ 89,597 $ 2,387 $ — $ — Mortgage-backed and CMOs 57,762 938 56,076 911 1,686 27 State and municipal 47,221 782 47,221 782 — — Corporate 2,895 23 2,895 23 — — Total $ 197,475 $ 4,130 $ 195,789 $ 4,103 $ 1,686 $ 27 Other-Than-Temporary-Impaired Securities As of December 31, 2017 and 2016 , there were no securities classified as other-than-temporary impaired. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans | Loans Loans, excluding loans held for sale, at December 31, 2017 and 2016 were comprised of the following (dollars in thousands): December 31, 2017 2016 Commercial $ 251,666 $ 208,717 Commercial real estate: Construction and land development 123,147 114,258 Commercial real estate 637,701 510,960 Residential real estate: Residential 209,326 215,104 Home equity 109,857 110,751 Consumer 4,428 5,031 Total loans $ 1,336,125 $ 1,164,821 Net deferred loan (fees) costs included in the above loan categories are $463,000 for 2017 and $(176,000) for 2016 . Overdraft deposits were reclassified to consumer loans in the amount of $114,000 and $128,000 for 2017 and 2016 , respectively. Acquired Loans The outstanding principal balance and the carrying amount of these loans, including ASC 310-30, included in the consolidated balance sheets at December 31, 2017 and 2016 are as follows (dollars in thousands): 2017 2016 Outstanding principal balance $ 79,523 $ 104,172 Carrying amount 73,796 96,487 The outstanding principal balance and related carrying amount of acquired impaired loans, for which the Company applies ASC 310-30 to account for interest earned, at December 31, 2017 and 2016 are as follows (dollars in thousands): 2017 2016 Outstanding principal balance $ 27,876 $ 34,378 Carrying amount 23,430 28,669 The following table presents changes in the accretable yield on acquired impaired loans, for which the Company applies ASC 310-30, for the years ended December 31, 2017 , 2016 , and 2015 (dollars in thousands): 2017 2016 2015 Balance at January 1 $ 6,103 $ 7,299 $ 1,440 Additions from merger with MainStreet — — 7,140 Accretion (3,117 ) (3,232 ) (4,313 ) Reclassification from nonaccretable difference 1,006 2,197 238 Other changes, net 898 (161 ) 2,794 Balance at December 31 $ 4,890 $ 6,103 $ 7,299 Past Due Loans The following table shows an analysis by portfolio segment of the Company's past due loans at December 31, 2017 (dollars in thousands): 30- 59 Days 60-89 Days 90 Days + Non- Total Current Total Commercial $ 92 $ — $ — $ 90 $ 182 $ 251,484 $ 251,666 Commercial real estate: Construction and land development — — — 36 36 123,111 123,147 Commercial real estate 86 — 280 489 855 636,846 637,701 Residential: Residential 282 71 79 1,343 1,775 207,551 209,326 Home equity 141 16 — 243 400 109,457 109,857 Consumer 21 5 — — 26 4,402 4,428 Total $ 622 $ 92 $ 359 $ 2,201 $ 3,274 $ 1,332,851 $ 1,336,125 The following table shows an analysis by portfolio segment of the Company's past due loans at December 31, 2016 (dollars in thousands): 30- 59 Days 60-89 Days 90 Days + Non- Total Current Total Commercial $ 50 $ — $ — $ 19 $ 69 $ 208,648 $ 208,717 Commercial real estate: Construction and land development 60 12 — 64 136 114,122 114,258 Commercial real estate — 127 339 773 1,239 509,721 510,960 Residential: Residential 1,280 117 248 1,802 3,447 211,657 215,104 Home equity 229 — — 289 518 110,233 110,751 Consumer 6 5 — 18 29 5,002 5,031 Total $ 1,625 $ 261 $ 587 $ 2,965 $ 5,438 $ 1,159,383 $ 1,164,821 Impaired Loans The following table presents the Company's impaired loan balances by portfolio segment, excluding acquired impaired loans, at December 31, 2017 (dollars in thousands): Recorded Unpaid Related Average Interest With no related allowance recorded: Commercial $ 4 $ 4 $ — $ 19 $ 1 Commercial real estate: Construction and land development — — — 56 4 Commercial real estate 791 789 — 1,069 66 Residential: Residential 717 719 — 575 41 Home equity 142 142 — 109 10 Consumer 5 5 — 6 1 $ 1,659 $ 1,659 $ — $ 1,834 $ 123 With a related allowance recorded: Commercial $ 202 $ 201 $ 154 $ 150 $ 16 Commercial real estate: Construction and land development* 37 37 — 56 — Commercial real estate* 34 32 — 126 11 Residential Residential 1,022 1,022 12 1,174 27 Home equity 263 261 1 251 1 Consumer* — — — 5 — $ 1,558 $ 1,553 $ 167 $ 1,762 $ 55 Total: Commercial $ 206 $ 205 $ 154 $ 169 $ 17 Commercial real estate: Construction and land development 37 37 — 112 4 Commercial real estate 825 821 — 1,195 77 Residential: Residential 1,739 1,741 12 1,749 68 Home equity 405 403 1 360 11 Consumer 5 5 — 11 1 $ 3,217 $ 3,212 $ 167 $ 3,596 $ 178 *Allowance is reported as zero in the table due to presentation in thousands and rounding. In the table above, recorded investment may exceed unpaid principal balance due to acquired loans with a premium and loans where unearned costs exceed unearned fees. The following table presents the Company's impaired loan balances by portfolio segment, excluding acquired impaired loans, at December 31, 2016 (dollars in thousands): Recorded Unpaid Related Average Interest With no related allowance recorded: Commercial $ 24 $ 24 $ — $ 12 $ 2 Commercial real estate: Construction and land development 158 157 — 198 16 Commercial real estate 1,916 1,917 — 1,409 107 Residential: Residential 557 567 — 318 38 Home equity 6 6 — 153 16 Consumer 9 9 — 10 1 $ 2,670 $ 2,680 $ — $ 2,100 $ 180 With a related allowance recorded: Commercial* $ 19 $ 19 $ — $ 78 $ 1 Commercial real estate: Construction and land development* 64 65 — 272 10 Commercial real estate* 48 48 — 286 7 Residential: Residential 1,639 1,639 22 1,593 32 Home equity 386 385 1 345 4 Consumer* 18 18 — 14 — $ 2,174 $ 2,174 $ 23 $ 2,588 $ 54 Total: Commercial $ 43 $ 43 $ — $ 90 $ 3 Commercial real estate: Construction and land development 222 222 — 470 26 Commercial real estate 1,964 1,965 — 1,695 114 Residential: Residential 2,196 2,206 22 1,911 70 Home equity 392 391 1 498 20 Consumer 27 27 — 24 1 $ 4,844 $ 4,854 $ 23 $ 4,688 $ 234 *Allowance is reported as zero in the table due to presentation in thousands and rounding. In the table above, recorded investment may exceed unpaid principal balance due to acquired loans with a premium and loans where unearned costs exceed unearned fees. The following table shows the detail of loans modified as TDRs during the year ended December 31, 2017 , 2016 , and 2015 , included in the impaired loan balances (dollars in thousands): Loans Modified as a TDR for the Year Ended December 31, 2017 Number of Pre-Modification Post-Modification Commercial 5 $ 212 $ 212 Commercial real estate — — — Home equity 2 57 57 Residential real estate 1 36 36 Consumer — — — Total 8 $ 305 $ 305 Loans Modified as a TDR for the Year Ended December 31, 2016 Number of Pre-Modification Post-Modification Commercial 2 $ 24 $ 24 Commercial real estate 2 1,005 1,003 Home equity — — — Residential real estate 4 322 312 Consumer — — — Total 8 $ 1,351 $ 1,339 Loans Modified as a TDR for the Year Ended December 31, 2015 Number of Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate 3 394 394 Home equity 1 107 105 Residential real estate 4 596 583 Consumer — — — Total 8 $ 1,097 $ 1,082 During the year ended December 31, 2017 , there were three commercial loans with a total recorded investment of $109,000 and one residential real estate loan with a recorded investment of $143,000 that defaulted within twelve months of modification. During the years ended December 31, 2016 and 2015 , the Company had no loans that subsequently defaulted within twelve months of modification. The Company defines default as one or more payments that occur more than 90 days past the due date, charge-off or foreclosure subsequent to modification. Any charge-offs resulting in default were adjusted through the allowance for loan losses. The following table summarizes the primary reason certain loan modifications were classified as TDRs and includes newly designated TDRs as well as modifications made to existing TDRs. Rate modifications include TDRs made with below market interest rates that also include modifications of loan structures (dollars in thousands): Year Ended December 31, 2017 2016 2015 Type of Modification ALLL Type of Modification ALLL Type of Modification ALLL Rate Structure Impact Rate Structure Impact Rate Structure Impact Commercial $ — $ 212 $ 137 $ — $ 24 $ — $ — $ — $ — Commercial real estate — — — — 1,003 — — 394 — Home equity — 57 1 — — — 105 — 1 Residential real estate — 36 — — 312 1 — 583 19 Consumer — — — — — — — — — Total $ — $ 305 $ 138 $ — $ 1,339 $ 1 $ 105 $ 977 $ 20 The Company had $463,000 in residential real estate loans in the process of foreclosure at December 31, 2017 and $629,000 and $653,000 in residential OREO at December 31, 2017 and December 31, 2016 , respectively. Risk Ratings The following table shows the Company's loan portfolio broken down by internal risk grading as of December 31, 2017 (dollars in thousands): Commercial and Consumer Credit Exposure Credit Risk Profile by Internally Assigned Grade Commercial Construction and Land Development Commercial Real Estate Residential Real Estate Home Equity Pass $ 248,714 $ 114,502 $ 625,861 $ 200,405 $ 107,705 Special Mention 1,763 7,114 6,914 4,438 1,325 Substandard 1,189 1,531 4,926 4,483 827 Doubtful — — — — — Total $ 251,666 $ 123,147 $ 637,701 $ 209,326 $ 109,857 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Consumer Performing $ 4,415 Nonperforming 13 Total $ 4,428 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 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. The following table shows the Company's loan portfolio broken down by internal risk grading as of December 31, 2016 (dollars in thousands): Commercial and Consumer Credit Exposure Credit Risk Profile by Internally Assigned Grade Commercial Construction and Land Development Commercial Residential Real Estate Home Pass $ 208,098 $ 112,729 $ 501,081 $ 199,278 $ 108,799 Special Mention 592 902 4,859 10,600 1,257 Substandard 27 627 5,020 5,226 695 Doubtful — — — — — Total $ 208,717 $ 114,258 $ 510,960 $ 215,104 $ 110,751 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Consumer Performing $ 5,003 Nonperforming 28 Total $ 5,031 |
Allowance for Loan Losses and R
Allowance for Loan Losses and Reserve for Unfunded Lending Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Provision for Loan and Lease Losses [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 for each of the years in the three-year period ended December 31, 2017 , are presented below (dollars in thousands): Years Ended December 31, 2017 2016 2015 Allowance for Loan Losses Balance, beginning of year $ 12,801 $ 12,601 $ 12,427 Provision for loan losses 1,016 250 950 Charge-offs (690 ) (326 ) (1,200 ) Recoveries 476 276 424 Balance, end of year $ 13,603 $ 12,801 $ 12,601 Years Ended December 31, 2017 2016 2015 Reserve for Unfunded Lending Commitments Balance, beginning of year $ 203 $ 184 $ 163 Provision for unfunded commitments 3 19 21 Charge-offs — — — Balance, end of year $ 206 $ 203 $ 184 The reserve for unfunded loan commitments is included in other liabilities, and the provision for (recovery of) unfunded commitments is included in noninterest expense. The following table presents the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment for the year ended December 31, 2017 (dollars in thousands): Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for Loan Losses Balance at December 31, 2016 $ 2,095 $ 7,355 $ 3,303 $ 48 $ — $ 12,801 Charge-offs (282 ) (93 ) (172 ) (143 ) — (690 ) Recoveries 223 60 85 108 — 476 Provision 377 999 (391 ) 31 — 1,016 Balance at December 31, 2017 $ 2,413 $ 8,321 $ 2,825 $ 44 $ — $ 13,603 Balance at December 31, 2017: Allowance for Loan Losses Individually evaluated for impairment $ 154 $ — $ 13 $ — $ — $ 167 Collectively evaluated for impairment 2,259 8,203 2,645 44 — 13,151 Acquired impaired loans — 118 167 — — 285 Total $ 2,413 $ 8,321 $ 2,825 $ 44 $ — $ 13,603 Loans Individually evaluated for impairment $ 206 $ 862 $ 2,144 $ 5 $ — $ 3,217 Collectively evaluated for impairment 251,185 747,819 306,066 4,408 — 1,309,478 Acquired impaired loans 275 12,167 10,973 15 — 23,430 Total $ 251,666 $ 760,848 $ 319,183 $ 4,428 $ — $ 1,336,125 The following table presents the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment for the year ended December 31, 2016 (dollars in thousands): Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for Loan Losses Balance at December 31, 2015 $ 2,065 $ 6,930 $ 3,546 $ 60 $ — $ 12,601 Charge-offs (40 ) (10 ) (87 ) (189 ) — (326 ) Recoveries 40 32 68 136 — 276 Provision 30 403 (224 ) 41 — 250 Balance at December 31, 2016 $ 2,095 $ 7,355 $ 3,303 $ 48 $ — $ 12,801 Balance at December 31, 2016: Allowance for Loan Losses Individually evaluated for impairment $ — $ — $ 23 $ — $ — $ 23 Collectively evaluated for impairment 2,087 7,248 3,046 48 — 12,429 Acquired impaired loans 8 107 234 — — 349 Total $ 2,095 $ 7,355 $ 3,303 $ 48 $ — $ 12,801 Loans Individually evaluated for impairment $ 43 $ 2,186 $ 2,588 $ 27 $ — $ 4,844 Collectively evaluated for impairment 208,258 610,462 307,600 4,988 — 1,131,308 Acquired impaired loans 416 12,570 15,667 16 — 28,669 Total $ 208,717 $ 625,218 $ 325,855 $ 5,031 $ — $ 1,164,821 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, other lending staff and loan review; national, regional, and local economic trends and conditions; legal, regulatory and collateral factors; and concentrations of credit. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Major classifications of premises and equipment at December 31, 2017 and 2016 are summarized as follows (dollars in thousands): December 31, 2017 2016 Land $ 6,583 $ 6,891 Buildings 26,713 25,616 Leasehold improvements 981 1,078 Furniture and equipment 17,677 16,372 51,954 49,957 Accumulated depreciation (26,053 ) (24,518 ) Premises and equipment, net $ 25,901 $ 25,439 Depreciation expense for the years ended December 31, 2017 , 2016 , and 2015 was $1,877,000 , $1,892,000 , and $1,833,000 , respectively. The Company has entered into operating leases for several of its branch and ATM facilities. The minimum annual rental payments under these leases at December 31, 2017 are as follows (dollars in thousands): Minimum Lease Year Payments 2018 $ 726 2019 215 2020 36 2021 13 2022 7 2023 and after 15 $ 1,012 Lease expense, a component of occupancy and equipment expense, for the years ended December 31, 2017 , 2016 , and 2015 was $961,000 , $897,000 , and $990,000 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company records as goodwill the excess of 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 during the years ended December 31, 2017 , 2016 , or 2015 . Core deposit intangibles resulting from the Community First acquisition in April 2006 were $3,112,000 and were amortized over 99 months ending in 2015. Core deposit intangibles resulting from the MidCarolina acquisition in July 2011 were $6,556,000 and are being amortized on an accelerated basis over 108 months . Core deposit intangibles resulting from the MainStreet acquisition 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 twelve months ended December 31, 2017 , are as follows (dollars in thousands): Goodwill Intangibles Balance at December 31, 2016 $ 43,872 $ 1,719 Amortization — (528 ) Balance at December 31, 2017 $ 43,872 $ 1,191 Goodwill and intangible assets at December 31, 2017 and 2016 are as follow (dollars in thousands): Gross Carrying Value Accumulated Amortization Net Carrying Value December 31, 2017 Core deposit intangibles $ 11,508 $ (10,317 ) $ 1,191 Goodwill 43,872 — 43,872 December 31, 2016 Core deposit intangibles $ 11,508 $ (9,789 ) $ 1,719 Goodwill 43,872 — 43,872 Amortization expense of core deposit intangibles for the years ended December 31, 2017 , 2016 , and 2015 were $528,000 , $964,000 , and $1,201,000 , respectively. As of December 31, 2017 , the estimated future amortization expense of core deposit intangibles is as follows (dollars in thousands): Year Amount 2018 $ 265 2019 219 2020 207 2021 197 2022 155 2023 and after 148 Total $ 1,191 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Deposits | Deposits The aggregate amount of time deposits in denominations of $250,000 or more at December 31, 2017 and 2016 was $162,781,000 and $142,527,000 , respectively. At December 31, 2017 , the scheduled maturities of certificates of deposits (included in "time" deposits on the Consolidated Balance Sheet) were as follows (dollars in thousands): Year Amount 2018 $ 157,040 2019 46,070 2020 33,711 2021 88,504 2022 52,319 2023 and after 6,014 Total $ 383,658 There were no brokered time deposits at December 31, 2017 or December 31, 2016 . Time deposits through the Certificate of Deposit Account Registry Service ("CDARS") program totaled $25,838,000 at December 31, 2017 compared to $23,445,000 at December 31, 2016 . Deposits through the CDARS program are generated from major customers with substantial relationships to the Bank. |
Short-term Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Short-term Debt [Abstract] | |
Short-term Borrowings | Short-term Borrowings Short-term borrowings consist of customer repurchase agreements and overnight borrowings from the FHLB. The Company has federal funds lines of credit established with two correspondent banks in the amounts of $15,000,000 each, and, additionally, has access to the Federal Reserve Bank of Richmond's discount window. Customer repurchase agreements are collateralized by securities of the U.S. Government, its agencies or GSEs. They mature daily. The interest rates are generally fixed but may be changed at the discretion of the Company. The securities underlying these agreements remain under the Company's control. FHLB overnight borrowings contain floating interest rates that may change daily at the discretion of the FHLB. Short-term borrowings consisted solely of the following at December 31, 2017 and 2016 (dollars in thousands): December 31, 2017 December 31, 2016 Amount Weighted Average Rate Amount Weighted Average Rate Customer repurchase agreements $ 10,726 0.01 % $ 39,166 0.01 % Other short-term borrowings 24,000 1.59 % 20,000 0.80 % Total short-term borrowings $ 34,726 $ 59,166 |
Long-term Borrowings
Long-term Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
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 December 31, 2017 , $511,621,000 in eligible collateral was pledged under the blanket floating lien agreement which covers both short-term and long-term borrowings. There were no long-term borrowings as of December 31, 2017 . Long-term borrowings as of December 31, 2016 consisted of the following fixed-rate advance (dollars in thousands): 2016 Due by Advance Amount Weighted Average Rate November 30, 2017 $ 9,980 2.98 % In the regular course of conducting its business, the Company takes deposits from political subdivisions of the states of Virginia and North Carolina. At December 31, 2017 , the Bank's public deposits totaled $265,543,000 . 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 December 31, 2017 , the Company had $190,700,000 in letters of credit with the FHLB outstanding as well as $114,183,000 in agency, state, and municipal securities to provide collateral for such deposits. |
Junior Subordinated Debt
Junior Subordinated Debt | 12 Months Ended |
Dec. 31, 2017 | |
Trust Preferred Capital Notes [Abstract] | |
Junior Subordinated Debt | Junior Subordinated Debt On April 7, 2006, AMNB Statutory Trust I, a Delaware statutory trust and a wholly owned subsidiary of the Company, issued $20,000,000 of 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 beginning on September 30, 2011. Initially, the securities required quarterly distributions by the trust 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 trust, 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 a 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 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. The MidCarolina Trusts are not consolidated in the Company's financial statements. In accordance with ASC 810-10-15-14, "Consolidation – Overall - Scope and Scope Exceptions," the Company did not eliminate through consolidation the Company's $619,000 equity investment in AMNB Statutory 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 (dollars in thousands): Principal Amount As of December 31, Issuing Entity Date Issued Interest Rate Maturity Date 2017 2016 AMNB Trust I 4/7/2006 Libor plus 1.35% 6/30/2036 $ 20,619 $ 20,619 MidCarolina Trust I 10/29/2002 Libor plus 3.45% 11/7/2032 4,322 4,265 MidCarolina Trust II 12/3/2003 Libor plus 2.95% 10/7/2033 2,885 2,840 $ 27,826 $ 27,724 The principal amounts reflected for the MidCarolina Trusts as of December 31, 2017 and 2016 , are net of fair value marks of $833,000 and $724,000 , respectively. The original fair value marks 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 | 12 Months Ended |
Dec. 31, 2017 | |
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. Until its expiration date on February 18, 2018, the 2008 Plan provided for the granting of restricted stock awards, 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 authorized 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, which terminated in 2006. The 2008 Plan terminated in February 2018. The Board will be proposing a 2018 Equity Compensation Plan for shareholder approval at the upcoming Annual Meeting. 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 year ended December 31, 2017 is as follows: Option Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value ($000) Outstanding at December 31, 2016 58,411 $ 24.37 Replacement stock options — — Granted — — Exercised (4,950 ) 22.93 Forfeited (578 ) 23.33 Expired (1,898 ) 36.08 Outstanding at December 31, 2017 50,985 $ 24.09 0.79 years $ 725 Exercisable at December 31, 2017 50,985 $ 24.09 0.79 years $ 725 The aggregate intrinsic value of stock options in the table above represents the total pre-tax intrinsic value (the amount by which the current fair value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2017 . This amount changes based on changes in the fair value of the Company's common stock. The total proceeds of the in-the-money options exercised during the year ended December 31, 2017 , 2016 , and 2015 were $113,000 , $142,000 , and $789,000 , respectively. Total intrinsic value of options exercised during years ended December 31, 2017 , 2016 , and 2015 was $287,000 , $11,000 , and $220,000 , respectively. As of December 31, 2017 , 2016 , and 2015 , there was no recognized or unrecognized compensation expense attributable to the outstanding stock options. The following table summarizes information related to stock options outstanding on December 31, 2017 : Options Outstanding and Exercisable Range of Exercise Prices Number of Outstanding Options Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price $20.00 to $25.00 27,060 1.04 years $ 22.10 $25.01 to $30.00 22,275 0.55 25.82 $30.01 to $41.67 1,650 0.01 33.33 50,985 0.79 years $ 24.09 No stock options were granted in 2017 , 2016 and 2015 . 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 in 2017 cliff vests at the end of a 36 -month period beginning on the date of grant. Nonvested restricted stock activity for the year ended December 31, 2017 is summarized in the following table: Restricted Stock Shares Weighted Average Grant Date Value Nonvested at December 31, 2016 50,822 $ 23.21 Granted 14,453 34.74 Vested (18,774 ) 24.49 Forfeited — — Nonvested at December 31, 2017 46,501 26.28 As of December 31, 2017 , 2016 , and 2015 , there was $538,000 , $568,000 , and $340,000 , respectively, in unrecognized compensation cost related to nonvested restricted stock granted under the 2008 Plan. This cost is expected to be recognized over the next 12 to 36 months . The share based compensation expense for nonvested restricted stock was $532,000 , $444,000 , and $322,000 during 2017 , 2016 , and 2015 , 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 quarterly in the form of either (i) $5,800 in cash or (ii) shares of immediately vested, but restricted stock, with a market value of $6,250 . Monthly meeting fees can also be received as $725 per meeting in cash or $900 in immediately vested, but restricted stock. For 2017 , 11 of the 13 outside directors elected to receive stock in lieu of cash for either all of part of their retainer or meeting fees. Only outside directors receive board fees. The Company issued 13,093 , 13,166 and 11,228 shares and recognized share based compensation expense of $484,000 , $380,000 , and $275,000 during 2017 , 2016 and 2015 , respectively. During 2015, 4,158 shares with a market value of $95,000 were issued to a retired director as payment for cumulative deferred director compensation. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files income tax returns in the U.S. federal jurisdiction and the states of Virginia and North Carolina. With few exceptions, the Company is no longer subject to U.S. federal, state, and local income tax examinations by tax authorities for years prior to 2014. The components of the Company's net deferred tax assets (liabilities) were as follows (dollars in thousands): December 31, 2017 2016 Deferred tax assets: Allowance for loan losses $ 3,047 $ 4,480 Nonaccrual loan interest 444 610 Other real estate owned valuation allowance 150 199 Deferred compensation 835 1,335 Net unrealized losses on securities 226 81 Acquisition accounting adjustments 1,283 3,215 Accrued pension liability 170 100 Other 488 796 Total deferred tax assets 6,643 10,816 Deferred tax liabilities: Depreciation 761 1,030 Accretion of discounts on securities 24 113 Core deposit intangibles 267 602 Trust preferred fair value adjustment 349 581 Other 201 243 Total deferred tax liabilities 1,602 2,569 Net deferred tax assets $ 5,041 $ 8,247 The provision for income taxes consists of the following (dollars in thousands): Years Ended December 31, 2017 2016 2015 Current tax expense $ 7,355 $ 6,125 $ 4,279 Deferred tax expense 724 882 1,741 Deferred tax asset adjustment for tax rate change 2,747 — — Total income tax expense $ 10,826 $ 7,007 $ 6,020 A reconcilement of the "expected" Federal income tax expense to reported income tax expense is as follows (dollars in thousands): Years Ended December 31, 2017 2016 2015 Expected federal tax expense $ 9,126 $ 8,158 $ 7,371 Tax impact from enacted change in tax rate 2,747 — — Nondeductible interest expense 85 94 78 Tax-exempt interest (949 ) (1,265 ) (1,338 ) State income taxes 296 296 222 Other, net (479 ) (276 ) (313 ) Total income tax expense $ 10,826 $ 7,007 $ 6,020 Income tax expense for 2017 includes a downward adjustment of net deferred tax assets in the amount of $2,747,000 , recorded as a result of the enactment of the Tax Reform Act on December 22, 2017. The Tax Reform Act reduced the corporate federal tax rate from 35% to 21% effective January 1, 2018. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common 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. Nonvested restricted shares are included in the computation of basic earnings per share as the holder is entitled to full shareholder benefits during the vesting period including voting rights and sharing in nonforfeitable dividends. Years Ended December 31, 2017 2016 2015 Shares Per Share Amount Shares Per Share Amount Shares Per Share Amount Basic earnings per share 8,641,717 $ 1.76 8,611,507 $ 1.89 8,680,502 $ 1.73 Effect of dilutive securities - stock options 18,911 — 9,734 — 7,948 — Diluted earnings per share 8,660,628 $ 1.76 8,621,241 $ 1.89 8,688,450 $ 1.73 Outstanding stock options on common stock which were not included in computing diluted earnings per share in 2017 , 2016 , and 2015 because their effects were anti-dilutive, averaged 330 shares, 11,397 shares, and 66,238 shares, respectively. |
Off-Balance Sheet Activities
Off-Balance Sheet Activities | 12 Months Ended |
Dec. 31, 2017 | |
Off Balance Sheet Activities [Abstract] | |
Off-Balance Sheet Activities | Off-Balance Sheet Activities The Company is party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company evaluates each customer's credit worthiness on a case-by-case basis. The amount of collateral obtained, if applicable, is based on management's credit evaluation of the customer. The Company's exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. The following off-balance sheet financial instruments whose contract amounts represent credit risk were outstanding at December 31, 2017 and 2016 (dollars in thousands): December 31, 2017 2016 Commitments to extend credit $ 341,760 $ 345,803 Standby letters of credit 13,647 4,088 Mortgage loan rate lock commitments 5,089 12,839 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. These commitments generally consist of unused portions of lines of credit issued to customers. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. At December 31, 2017 , the Company had locked-rate commitments to originate mortgage loans amounting to approximately $5,089,000 and loans held for sale of $1,639,000 . Risks arise from the possible inability of counterparties to meet the terms of their contracts, though the Company has never experienced a failure of one of its counterparties to perform. If a loan becomes past due 90 days within 180 days of sale, the Company would be required to repurchase the loan. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In the ordinary course of business, loans are granted to executive officers, directors, and their related entities. Management believes that all such loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable loans to similar, unrelated borrowers, and do not involve more than a normal risk of collectibility or present other unfavorable features. As of December 31, 2017 and 2016 , none of these loans were restructured, past due, or on nonaccrual status. An analysis of these loans for 2017 is as follows (dollars in thousands): Balance at December 31, 2016 $ 22,078 Additions 24,265 Repayments (20,589 ) Reclassifications (1) (11,533 ) Balance at December 31, 2017 $ 14,221 (1) Includes loans (i) to persons no longer affiliated with the Company and therefore not considered related party loans as of period end or (ii) that were considered related party loans in the prior year but were subsequently not considered related party loans in the current year. Related party deposits totaled $22,077,000 at December 31, 2017 and $22,121,000 at December 31, 2016 . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Benefit Plan The Company previously maintained a non-contributory defined benefit pension plan which covered substantially all employees who were 21 years of age or older and who had at least one year of service. The Company froze its pension plan to new participants and converted its pension plan to a cash balance plan effective December 31, 2009. Each year existing participants will receive, with some adjustments, income based on the yield of the 10 year U.S. Treasury Note in December of the preceding year. Information pertaining to the activity in the plan is as follows (dollars in thousands): As of and for the Years Ended December 31, 2017 2016 2015 Change in Benefit Obligation: Projected benefit obligation at beginning of year $ 7,932 $ 8,453 $ 10,710 Service cost — — — Interest cost 237 269 297 Actuarial (gain) loss 611 352 (100 ) Settlement gain (3 ) (51 ) — Benefits paid (464 ) (1,091 ) (2,454 ) Projected benefit obligation at end of year 8,313 7,932 8,453 Change in Plan Assets: Fair value of plan assets at beginning of year 7,647 8,428 10,949 Actual return on plan assets 373 310 (67 ) Benefits paid (464 ) (1,091 ) (2,454 ) Fair value of plan assets at end of year 7,556 7,647 8,428 Funded Status at End of Year $ (757 ) $ (285 ) $ (25 ) Amounts Recognized in the Consolidated Balance Sheets Other liabilities $ (757 ) $ (285 ) $ (25 ) Amounts Recognized in Accumulated Other Comprehensive Loss Net actuarial loss $ 2,886 $ 2,652 $ 2,818 Deferred income taxes (606 ) (928 ) (986 ) Amount recognized $ 2,280 $ 1,724 $ 1,832 As of and for the Years Ended December 31, 2017 2016 2015 Components of Net Periodic Benefit Cost Service cost $ — $ — $ — Interest cost 237 269 297 Expected return on plan assets (353 ) (385 ) (459 ) Recognized net loss due to settlement 135 315 671 Recognized net actuarial loss 218 228 293 Net periodic benefit cost $ 237 $ 427 $ 802 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss Net actuarial (gain) loss $ 234 $ (166 ) $ (538 ) Amortization of prior service cost — — — Total recognized in other comprehensive (income) loss $ 234 $ (166 ) $ (538 ) Total Recognized in Net Periodic Benefit Cost and Other Comprehensive (Income) Loss $ 471 $ 261 $ 264 The accumulated benefit obligation as of December 31, 2017 , 2016 , and 2015 was $8,313,000 , $7,932,000 , and $8,453,000 , respectively. The rate of compensation increase is no longer applicable since the defined benefit plan was frozen and converted to a cash balance plan. The plan sponsor selected the expected long-term rate-of-return-on-assets assumption in consultation with their investment advisors and actuary. This rate was intended to reflect the average rate of earnings expected to be earned on the funds invested or to be invested to provide plan benefits. Historical performance is reviewed, especially with respect to real rates of return (net of inflation), for the major asset classes held or anticipated to be held by the trust, and for the trust itself. Undue weight is not given to recent experience that may not continue over the measurement period, with higher significance placed on current forecasts of future long-term economic conditions. Because assets are held in a qualified trust, anticipated returns are not reduced for taxes. Further, solely for this purpose, the plan is assumed to continue in force and not terminate during the period in which assets are invested. However, consideration is given to the potential impact of current and future investment policy, cash flow into and out of the trust, and expenses (both investment and non-investment) typically paid from plan assets (to the extent such expenses are not explicitly estimated within periodic cost). Below is a description of the plan's assets. The plan's weighted-average asset allocations by asset category are as follows as of December 31, 2017 and 2016 : Asset Category December 31, 2017 2016 Fixed Income 61.7 % 51.3 % Equity 29.5 % 38.0 % Cash and Accrued Income 8.8 % 10.7 % Total 100.0 % 100.0 % The investment policy and strategy for plan assets can best be described as a growth and income strategy. Diversification is accomplished by limiting the holding of any one equity issuer to no more than 5% of total equities. Exchange traded funds are used to provide diversified exposure to the small capitalization and international equity markets. All fixed income investments are rated as investment grade, with the majority of these assets invested in corporate issues. The assets are managed by the Company's Trust and Investment Services Division. No derivatives are used to manage the assets. Equity securities do not include holdings in the Company. The fair value of the Company's pension plan assets at December 31, 2017 and 2016 , by asset category are as follows (dollars in thousands): Fair Value Measurements at December 31, 2017 using Balance at December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Asset Category 2017 Level 1 Level 2 Level 3 Cash $ 617 $ 617 $ — $ — Fixed income securities Government sponsored entities 1,892 — 1,892 — Municipal bonds and notes 1,931 — 1,931 — Corporate bonds and notes 880 — 880 — Equity securities U.S. companies 1,768 1,768 — — Foreign companies 468 468 — — $ 7,556 $ 2,853 $ 4,703 $ — Fair Value Measurements at December 31, 2016 using Balance at December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Asset Category 2016 Level 1 Level 2 Level 3 Cash $ 780 $ 780 $ — $ — Fixed income securities Government sponsored entities 1,496 — 1,496 — Municipal bonds and notes 1,453 — 1,453 — Corporate bonds and notes 973 — 973 — Equity securities U.S. companies 2,505 2,505 — — Foreign companies 440 440 — — $ 7,647 $ 3,725 $ 3,922 $ — Projected benefit payments for the years 2018 to 2026 are as follows (dollars in thousands): Year Amount 2018 $ 1,248 2019 894 2020 457 2021 673 2022 617 2023-2026 3,519 401(k) Plan The Company maintains a 401(k) plan that covers substantially all full-time employees of the Company. The Company matches a portion of the contribution made by employee participants after at least one year of service. The Company contributed $763,000 , $623,000 , and $602,000 to the 401(k) plan in 2017 , 2016 , and 2015 , respectively. These amounts are included in employee benefits expense for the respective years. Deferred Compensation Arrangements The Company has historically maintained deferred compensation agreements with certain current and former employees providing for annual payments to each ranging from $25,000 to $50,000 per year for ten years upon their retirement. The liabilities under these agreements are being accrued over the officers' remaining periods of employment so that, on the date of their retirement, the then-present value of the annual payments would have been accrued. As of December 31, 2017 , the Company only had one remaining agreement under which payments are being made to a former officer. The liabilities were $350,000 and $397,000 at December 31, 2017 and 2016 , respectively. The expense for these agreements was $ 3,000 , $ 6,000 , and $ 8,000 for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Incentive Arrangements The Company maintains a cash incentive compensation plan for officers based on the Company's performance and individual officer goals. The total amount charged to salary expense for this plan was $1,243,000 , $ 916,000 , and $ 559,000 for the years ended December 31, 2017 , 2016 , and 2015 , respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements 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, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. Fair Value Hierarchy In accordance with this guidance, the Company groups its financial assets and financial 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 financial 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). The following table presents the balances of financial assets measured at fair value on a recurring basis during the period (dollars in thousands): Fair Value Measurements at December 31, 2017 Using Balance as of December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2017 Level 1 Level 2 Level 3 Assets: Securities available for sale: Federal agencies and GSEs $ 112,127 $ — $ 112,127 $ — Mortgage-backed and CMOs 105,316 — 105,316 — State and municipal 93,626 — 93,626 — Corporate 8,062 — 8,062 — Equity securities 2,206 — 2,206 — Total $ 321,337 $ — $ 321,337 $ — Fair Value Measurements at December 31, 2016 Using Balance as of December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2016 Level 1 Level 2 Level 3 Assets: Securities available for sale: Federal agencies and GSEs $ 104,054 $ — $ 104,054 $ — Mortgage-backed and CMOs 79,493 — 79,493 — State and municipal 147,515 — 147,515 — Corporate 13,492 — 13,492 — Equity Securities 1,948 — 1,948 — Total $ 346,502 $ — $ 346,502 $ — 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 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 years ended December 31, 2017 and 2016 . 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 when due. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the Company's collateral is real estate. The value of real estate collateral is determined utilizing a market valuation approach based on an appraisal, 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 comparable or management determines the fair value of the collateral is further impaired below the appraised value, then a Level 3 valuation is considered to measure the fair value. The value of business equipment is based upon an outside appraisal, of one year or less, if deemed significant, or the net book value on the applicable business's financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Impaired loans allocated to the allowance for loan losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Consolidated Statements of Income. Other real estate owned : Measurement for fair values for other real estate owned are the same as impaired loans. Any fair value adjustments are recorded in the period incurred as a valuation allowance against other real estate owned with the associated expense included in other real estate owned expense, net on the Consolidated Statements of Income. The following table summarizes the Company's assets that were measured at fair value on a nonrecurring basis during the period (dollars in thousands): Fair Value Measurements at December 31, 2017 Using Balance as of December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2017 Level 1 Level 2 Level 3 Assets: Loans held for sale $ 1,639 $ — $ 1,639 $ — Impaired loans, net of valuation allowance 1,391 — — 1,391 Other real estate owned, net 1,225 — — 1,225 Fair Value Measurements at December 31, 2016 Using Balance as of December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2016 Level 1 Level 2 Level 3 Assets: Loans held for sale $ 5,996 $ — $ 5,996 $ — Impaired loans, net of valuation allowance 2,151 — — 2,151 Other real estate owned, net 1,328 — — 1,328 Quantitative Information About Level 3 Fair Value Measurements as of December 31, 2017 : Assets Valuation Technique Unobservable Input Rate Impaired loans Discounted appraised value Selling cost 8.00% Impaired loans Discounted cash flow analysis Market rate for borrower (discount rate) 3.25% - 9.80% Other real estate owned Discounted appraised value Selling cost 8.00% Quantitative Information About Level 3 Fair Value Measurements as of December 31, 2016 : Assets Valuation Technique Unobservable Input Rate Impaired loans Discounted appraised value Selling cost 8.00% Other real estate owned Discounted appraised value Selling cost 6.00% ASC 825, "Financial Instruments," requires disclosure about fair value of financial instruments for interim periods and excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. The carrying values and estimated fair values of the Company's financial instruments at December 31, 2017 are as follows (dollars in thousands): Fair Value Measurements at December 31, 2017 Using Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Balance Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 52,477 $ 52,477 $ — $ — $ 52,477 Securities available for sale 321,337 — 321,337 — 321,337 Restricted stock 6,110 — 6,110 — 6,110 Loans held for sale 1,639 — 1,639 — 1,639 Loans, net of allowance 1,322,522 — — 1,317,737 1,317,737 Bank owned life insurance 18,460 — 18,460 — 18,460 Accrued interest receivable 5,231 — 5,231 — 5,231 Financial Liabilities: Deposits $ 1,534,726 $ — $ 1,151,068 $ 376,888 $ 1,527,956 Repurchase agreements 10,726 — 10,726 — 10,726 Other short-term borrowings 24,000 — 24,000 — 24,000 Junior subordinated debt 27,826 — — 28,358 28,358 Accrued interest payable 674 — 674 — 674 The carrying values and estimated fair values of the Company's financial instruments at December 31, 2016 are as follows (dollars in thousands): Fair Value Measurements at December 31, 2016 Using Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Balance Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 53,207 $ 53,207 $ — $ — $ 53,207 Securities available for sale 346,502 — 346,502 — 346,502 Restricted stock 6,224 — 6,224 — 6,224 Loans held for sale 5,996 — 5,996 — 5,996 Loans, net of allowance 1,152,020 — — 1,136,961 1,136,961 Bank owned life insurance 18,163 — 18,163 — 18,163 Accrued interest receivable 5,083 — 5,083 — 5,083 Financial Liabilities: Deposits $ 1,370,640 $ — $ 991,785 $ 374,774 $ 1,366,559 Repurchase agreements 39,166 — 39,166 — 39,166 Other short-term borrowings 20,000 — 20,000 — 20,000 Long-term borrowings 9,980 — — 10,156 10,156 Junior subordinated debt 27,724 — — 24,932 24,932 Accrued interest payable 623 — 623 — 623 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. Restricted stock . The carrying value of restricted stock approximates fair value based on the redemption provisions of the respective entity. Loans held for sale . The carrying amount is at 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 value 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 short-term borrowings. The carrying amount is a reasonable estimate of fair value. Long-term borrowings. The fair values of long-term borrowings are estimated using discounted cash flow analysis based on the interest rates for similar types of borrowing arrangements. Junior subordinated debt. 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 December 31, 2017 and 2016 , the fair value of off balance sheet instruments was deemed immaterial, and therefore was not included in the table above. The various off-balance sheet instruments were discussed in Note 15. 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. |
Dividend Restrictions and Regul
Dividend Restrictions and Regulatory Capital | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
Dividend Restrictions and Regulatory Capital | Dividend Restrictions and Regulatory Capital The approval of the Office of the Comptroller of the Currency is required if the total of all dividends declared by a national bank in any calendar year exceeds the bank's retained net income, as defined, for that year combined with its retained net income for the preceding two calendar years. Under this formula, the Bank can distribute as dividends to the Company, without the approval of the Office of the Comptroller of the Currency, $16,011,000 as of December 31, 2017 . Dividends paid by the Bank to the Company are the only significant source of funding for dividends paid by the Company to its shareholders. Banks and bank holding companies are subject to various regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate certain regulatory action. The final rules implementing Basel Committee on Banking Supervision's capital guidelines for U.S. banks (Basel III rules) became effective for the Company on January 1, 2015 with full compliance with all of the requirements being phased-in over a multi-year schedule, and fully phased-in by January 1, 2019. The net unrealized gain or loss on available for sale securities and unfunded pension liability is included in computing regulatory capital. Management believes as of December 31, 2017 , the Company and Bank meet all capital adequacy requirements to which they are subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year-end 2017 and 2016 , the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank's category. Actual and required capital amounts (in thousands) and ratios are presented below at year-end: Actual Required for Capital Adequacy Purposes* To Be Well Amount Ratio Amount Ratio Amount Ratio December 31, 2017 Common Equity Tier 1 Company $ 166,968 11.50 % $ 83,476 >5.75 % Bank 184,656 12.79 83,024 >5.75 $ 93,854 >6.50 % Tier 1 Capital Company 194,794 13.42 105,253 >7.25 Bank 184,656 12.79 104,683 >7.25 115,512 >8.00 Total Capital Company 208,973 14.39 134,288 >9.25 Bank 198,465 13.75 133,561 >9.25 144,390 >10.00 Leverage Capital Company 194,794 10.95 71,128 >4.00 Bank 184,656 10.43 70,796 >4.00 88,495 >5.00 December 31, 2016 Common Equity Tier 1 Company $ 158,350 11.77 % $ 68,972 >5.125 % Bank 172,927 12.92 68,580 >5.125 $ 86,979 >6.50 % Tier 1 Capital Company 186,074 13.83 89,159 >6.625 Bank 172,927 12.92 88,652 >6.625 107,051 >8.00 Total Capital Company 199,375 14.81 116,075 >8.625 Bank 185,931 13.89 115,415 >8.625 133,814 >10.00 Leverage Capital Company 186,074 11.67 63,761 >4.00 Bank 172,927 10.88 63,571 >4.00 79,464 >5.00 * Except with regard to the Company's and the Bank's leverage capital ratio, includes the current phased-in portion of the Basel III Capital Rules capital conservation buffer which is added to the minimum capital requirements for capital adequacy purposes. The capital conservation buffer requirement began being phased-in effective January 1, 2016, at 0.625% of risk-weighted assets, increasing by the same amount each year until fully implemented at 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of common equity Tier 1 to risk-weighted assets above the minimum but below the conservation buffer will face constraints on dividends, equity repurchases, and compensation based on the amount of the shortfall. |
Segment and Related Information
Segment and Related Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment and Related Information | Segment and Related Information The Company has two reportable segments, community banking and 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 include activities of the Company which are primarily debt service on trust preferred securities and corporate items. Segment information as of and for the years ended December 31, 2017 , 2016 , and 2015 , is shown in the following table (dollars in thousands): 2017 Community Banking Trust and Investment Services Other Intersegment Eliminations Total Interest income $ 62,697 $ — $ 341 $ — $ 63,038 Interest expense 6,263 — 1,028 — 7,291 Noninterest income 9,224 4,756 247 — 14,227 Income (loss) before income taxes 24,828 2,521 (1,274 ) — 26,075 Net income (loss) 14,456 1,486 (693 ) — 15,249 Depreciation and amortization 2,393 12 — — 2,405 Total assets 1,806,647 — 236,644 (227,213 ) 1,816,078 Goodwill 43,872 — — — 43,872 Capital expenditures 2,637 11 — — 2,648 2016 Community Banking Trust and Investment Services Other Intersegment Eliminations Total Interest income $ 56,076 $ — $ 94 $ — $ 56,170 Interest expense 5,438 — 878 — 6,316 Noninterest income 8,848 4,634 23 — 13,505 Income (loss) before income taxes 22,230 2,623 (1,545 ) — 23,308 Net income (loss) 15,486 1,835 (1,020 ) — 16,301 Depreciation and amortization 2,845 11 — — 2,856 Total assets 1,669,629 — 229,241 (220,232 ) 1,678,638 Goodwill 43,872 — — — 43,872 Capital expenditures 3,609 4 — — 3,613 2015 Community Banking Trust and Investment Services Other Intersegment Eliminations Total Interest income $ 55,109 $ — $ 60 $ — $ 55,169 Interest expense 5,144 — 760 — 5,904 Noninterest income 8,386 4,881 20 — 13,287 Income (loss) before income taxes 19,398 2,737 (1,076 ) — 21,059 Net income (loss) 13,793 1,956 (710 ) — 15,039 Depreciation and amortization 3,022 12 — — 3,034 Total assets 1,545,377 — 225,533 (223,311 ) 1,547,599 Goodwill 43,872 — — — 43,872 Capital expenditures 1,453 21 — — 1,474 |
Parent Company Financial Inform
Parent Company Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Financial Information | Parent Company Financial Information Condensed Parent Company financial information is as follows (dollars in thousands): December 31, Condensed Balance Sheets 2017 2016 Cash $ 1,597 $ 4,654 Securities available for sale, at fair value 8,740 8,355 Investment in subsidiaries 226,452 216,340 Due from subsidiaries 46 120 Other assets 31 40 Total Assets $ 236,866 $ 229,509 Trust preferred capital notes $ 27,826 $ 27,724 Other liabilities 323 405 Shareholders' equity 208,717 201,380 Total Liabilities and Shareholders' Equity $ 236,866 $ 229,509 Years Ended December 31, Condensed Statements of Income 2017 2016 2015 Dividends from subsidiary $ 6,000 $ 16,000 $ 11,000 Other income 588 117 80 Expenses 1,862 1,662 1,156 Income tax benefit (581 ) (526 ) (366 ) Income before equity in undistributed earnings of subsidiary 5,307 14,981 10,290 Equity in undistributed earnings of subsidiary 9,942 1,320 4,749 Net Income $ 15,249 $ 16,301 $ 15,039 Years Ended December 31, Condensed Statements of Cash Flows 2017 2016 2015 Cash Flows from Operating Activities: Net income $ 15,249 $ 16,301 $ 15,039 Adjustments to reconcile net income to net cash provided by operating activities: Gain on sale of securities (221 ) — — Equity in (undistributed) distributions of subsidiary (9,942 ) (1,320 ) (4,749 ) Net change in other assets 83 (57 ) 257 Net change in other liabilities (82 ) 163 106 Net cash provided by operating activities 5,087 15,087 10,653 Cash Flows from Investing Activities: Purchases of securities available for sale (373 ) (6,588 ) — Sales of securities available for sale 500 — — Investment in banking subsidiary — — 563 Cash paid in bank acquisition — — (5,935 ) Net cash provided by (used in) investing activities 127 (6,588 ) (5,372 ) Cash Flows from Financing Activities: Common stock dividends paid (8,384 ) (8,266 ) (8,068 ) Repurchase of common stock — (1,292 ) (3,506 ) Proceeds from exercise of stock options 113 142 789 Proceeds from issuance of common stock — — 95 Net cash used in financing activities (8,271 ) (9,416 ) (10,690 ) Net decrease in cash and cash equivalents (3,057 ) (917 ) (5,409 ) Cash and cash equivalents at beginning of period 4,654 5,571 10,980 Cash and cash equivalents at end of period $ 1,597 $ 4,654 $ 5,571 |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk | Concentrations of Credit Risk Substantially all of the Company's loans are made within its market area, which includes Southern and Central Virginia and the northern portion of Central North Carolina. The ultimate collectibility of the Company's loan portfolio and the ability to realize the value of any underlying collateral, if necessary, are impacted by the economic conditions and real estate values of the market area. Loans secured by real estate were $1,080,031,000 , or 80.8% of the loan portfolio at December 31, 2017 , and $951,073,000 , or 81.6% of the loan portfolio at December 31, 2016 . Loans secured by commercial real estate represented the largest portion of loans at $637,701,000 at December 31, 2017 and $510,960,000 at December 31, 2016 , 47.7% and 43.9% , respectively of total loans. There were no concentrations of loans to any individual, group of individuals, business, or industry that exceeded 10% of total loans at December 31, 2017 or 2016 . |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information (dollars in thousands) For the Years ended December 31, 2017 2016 2015 Supplemental Schedule of Cash and Cash Equivalents: Cash and due from banks $ 28,594 $ 20,268 $ 19,352 Interest-bearing deposits in other banks 23,883 32,939 75,985 $ 52,477 $ 53,207 $ 95,337 Supplemental Disclosure of Cash Flow Information: Cash paid for: Interest on deposits and borrowed funds $ 7,240 $ 6,348 $ 5,836 Income taxes 7,653 6,477 3,090 Noncash investing and financing activities: Transfer of loans to other real estate owned 1,233 295 2,101 Unrealized loss on securities available for sale (777 ) (6,572 ) (2,652 ) Change in unfunded pension liability (234 ) 166 538 Non-cash transactions related to acquisitions: Investment securities — — 18,507 Restricted stock — — 587 Loans — — 115,960 Premises and equipment — — 956 Deferred income taxes — — 2,794 Core deposit intangible — — 1,839 Other real estate owned, net — — 168 Bank owned life insurance — — 1,955 Other assets — — 1,049 Liabilities assumed: Demand, MMDA, and savings deposits — — 82,451 Time deposits — — 54,872 Other liabilities — — 3,076 Consideration: Issuance of common stock — — 20,483 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income ("AOCI") | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (AOCI) | Accumulated Other Comprehensive Income ("AOCI") Changes in each component of accumulated other comprehensive income (loss) were as follows (dollars in thousands): Net Unrealized Gains (Losses) on Securities Adjustments Related to Pension Benefits Accumulated Other Comprehensive Income (Loss) Balance at Balance at December 31, 2014 $ 5,845 $ (2,181 ) $ 3,664 Net unrealized losses on securities available for sale, net of tax, $(626) (1,159 ) — (1,159 ) Reclassification adjustment for realized gains on securities, net of tax, $(303) (564 ) — (564 ) Change in unfunded pension liability, net of tax, $189 — 349 349 Balance at December 31, 2015 4,122 (1,832 ) 2,290 Net unrealized losses on securities available for sale, net of tax, $(2,007) (3,729 ) — (3,729 ) Reclassification adjustment for realized gains on securities, net of tax, $(293) (543 ) — (543 ) Change in unfunded pension liability, net of tax, $58 — 108 108 Balance at December 31, 2016 (150 ) (1,724 ) (1,874 ) Net unrealized gains on securities available for sale, net of tax, $12 23 — 23 Reclassification adjustment for realized gains on securities, net of tax, $(284) (528 ) — (528 ) Change in unfunded pension liability, net of tax, $(82) — (152 ) (152 ) Reclassification of stranded tax effects from tax rate change (141 ) (404 ) (545 ) Balance at December 31, 2017 $ (796 ) $ (2,280 ) $ (3,076 ) The following table provides information regarding reclassifications out of accumulated other comprehensive income (loss) (dollars in thousands): Reclassifications Out of Accumulated Other Comprehensive Income (Loss) For the Three Years Ending December 31, 2017 Details about AOCI Components Amount Reclassified from AOCI Affected Line Item in the Statement of Where Net Income is Presented Years Ended December 31, 2017 2016 2015 Available for sale securities: Realized gain on sale of securities $ 812 $ 836 $ 867 Securities gains (losses), net (284 ) (293 ) (303 ) Income taxes $ 528 $ 543 $ 564 Net of tax Reclassification of stranded tax effects from tax rate change 141 — — * Employee benefit plans: Reclassification of stranded tax effects from tax rate change 404 — — * Total reclassifications $ 1,073 $ 543 $ 564 * Reclassification from AOCI to retained earnings for stranded tax effects resulting from the impact of the newly enacted federal corporate income tax rate on items included in AOCI. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Nature of Operations and Consolidation | Nature of Operations and Consolidation 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, goodwill and intangible assets, unfunded pension liability, other-than-temporary impairment of securities, accounting for merger and acquisition activity, accounting for acquired loans with specific credit-related deterioration, the valuation of other real estate owned ("OREO"), and the valuation of deferred tax assets and liabilities. In April 2006, AMNB Statutory Trust I, a Delaware statutory trust (the "AMNB Trust") and an unconsolidated wholly owned subsidiary of the Company, was formed for the purpose of issuing preferred securities (the "Trust Preferred Securities") in a private placement pursuant to an applicable exemption from registration. Proceeds from the securities were used to fund the acquisition of Community First Financial Corporation ("Community First") which occurred in April 2006. On July 1, 2011, the Company completed its acquisition of MidCarolina Financial Corporation ("MidCarolina") pursuant to the terms and conditions of the Agreement and Plan of Reorganization, dated December 15, 2010, between the Company and MidCarolina. MidCarolina was headquartered in Burlington, North Carolina, and engaged in banking operations through its subsidiary bank, MidCarolina Bank. The transaction has expanded the Company's footprint in North Carolina, adding eight branches in Alamance and Guilford Counties . In July 2011, and in connection with its acquisition of MidCarolina, the Company assumed liabilities of the MidCarolina Trust I and MidCarolina Trust II, two separate unconsolidated Delaware statutory trusts (the "MidCarolina Trusts"), which were also formed for the purpose of issuing preferred securities. Refer to Note 11 for further details concerning these entities. On January 1, 2015, the Company completed its acquisition of MainStreet BankShares, Inc. ("MainStreet") pursuant to the terms and conditions of the Agreement and Plan of Reorganization, dated as of August 24, 2014, between the Company and MainStreet (the "MainStreet Merger Agreement"). Immediately after the merger of MainStreet into the Company, Franklin Community Bank, N.A., MainStreet's wholly-owned bank subsidiary ("Franklin Bank"), merged with and into the Bank. Franklin Bank provided banking services to its customers from three banking offices located in Rocky Mount, Hardy, and Union Hall, Virginia. 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 11. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash includes cash on hand, cash with correspondent banks, and cash on deposit at the Federal Reserve Bank of Richmond. Cash equivalents are short-term, highly liquid investments that are readily convertible to cash with original maturities of three months or less and are subject to an insignificant risk of change in value. Cash and cash equivalents are carried at cost. |
Interest-bearing Deposits in Other Banks | Interest-bearing Deposits in Other Banks Interest-bearing deposits in other banks mature within one year and are carried at cost. |
Securities | Securities Certain debt securities that management has the positive intent and ability to hold to maturity are classified as "held to maturity" and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Securities not classified as held to maturity or trading, including equity securities with readily determinable fair values, are classified as "available for sale" and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company does not currently have any securities in held to maturity or trading and has no plans to add any to either category. Management evaluates securities for other-than-temporary impairment ("OTTI") on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement and, (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. Due to the nature and restrictions placed on the Company's investment in common stock of the Federal Home Loan Bank of Atlanta ("FHLB") and the Federal Reserve Bank of Richmond, these securities have been classified as restricted equity securities and carried at cost. |
Loans Held for Sale | Loans Held for Sale Secondary market mortgage loans are designated as held for sale at the time of their origination. These loans are pre-sold with servicing released and the Company does not retain any interest after the loans are sold. These loans consist primarily of fixed-rate, single-family residential mortgage loans which meet the underwriting characteristics of certain government-sponsored enterprises (conforming loans). In addition, the Company requires a firm purchase commitment from a permanent investor before a loan can be committed, thus limiting interest rate risk. Loans held for sale are carried at fair value. Gains on sales of loans are recognized at the loan closing date and are included in noninterest income. |
Derivative Loan Commitments | Derivative Loan Commitments The Company enters into mortgage loan commitments whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Mortgage loan commitments are referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. Loan commitments that are derivatives are recognized at fair value on the consolidated balance sheets with net changes in their fair values recorded in other expenses. Derivative loan commitments resulted in no income or loss for 2017 , 2016 or 2015 . The period of time between issuance of a loan commitment and sale of the loan generally ranges from 30 to 60 days . The Company protects itself from changes in interest rates through the use of best efforts forward delivery contracts, by committing to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed the interest rate risk on the loan. As a result, the Company is not generally exposed to significant losses nor will it realize significant gains related to its rate lock commitments due to changes in interest rates. The correlation between the rate lock commitments and the best efforts contracts is very high due to their similarity. The fair value of rate lock commitments and best efforts contracts is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets. The Company determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the estimated value of the underlying assets while taking into consideration the probability that the loan will be funded. |
Loans | Loans The Company makes mortgage, commercial, and consumer loans. A substantial portion of the loan portfolio is secured by real estate. The ability of the Company's debtors to honor their contracts is dependent upon the real estate market and general economic conditions in the Company's market area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off, generally are reported at their outstanding unpaid principal balance adjusted for the allowance for loan losses, and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. The accrual of interest on loans is generally discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Loans are typically charged off when the loan is 120 days past due, unless secured and in process of collection. Loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. Interest accrued but not collected for loans that are placed on nonaccrual status or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash basis or cost recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. A loan is considered past due when a payment of principal or interest or both is due but not paid. Management closely monitors past due loans in timeframes of 30-59 days, 60-89 days, and 90 or more days past due. These policies apply to all loan portfolio classes and segments. Substandard and doubtful risk graded commercial, commercial real estate, and construction loans equal to or greater than $100,000 are reviewed for impairment. All troubled debt restructurings, regardless of dollar amount, are also evaluated for impairment. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment and establishing a specific allowance include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial, commercial real estate, and construction loans by either the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Generally, large groups of smaller balance homogeneous loans (residential real estate and consumer loans) are collectively evaluated for impairment. The Company's policy for recognizing interest income on impaired loans is consistent with its nonaccrual policy. The Company's loan portfolio is organized by major segment. These include: commercial, commercial real estate, residential real estate and consumer loans. Each segment has particular risk characteristics that are specific to the borrower and the generic category of credit. Commercial loan repayments are highly dependent on cash flows associated with the underlying business and its profitability. They can also be impacted by changes in collateral values. Commercial real estate loans share the same general risk characteristics as commercial loans, but are often more dependent on the value of the underlying real estate collateral and, when construction is involved, the ultimate completion of and sale of the project. Residential real estate loans are generally dependent on the value of collateral and the credit worthiness of the underlying borrower. Consumer loans are very similar in risk characteristics to residential real estate. In connection with the MidCarolina and MainStreet mergers, certain loans were acquired which exhibited deteriorated credit quality since origination and for which the Company does not expect to collect all contractual payments. These purchased credit impaired loans are recorded at the amount paid, such that there is no carryover of the seller's allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Such purchased credit impaired loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as, credit score, loan type, and date of origination. The Company estimates the amount and timing of expected cash flows for each loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan's or pool's contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. |
Troubled Debt Restructurings | Troubled Debt Restructurings In situations where, for economic or legal reasons related to a borrower's financial condition, management may grant a concession to the borrower that it would not otherwise consider, the related loan is classified as a troubled debt restructuring ("TDRs"). Management strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. |
Allowance for Loan Losses | Allowance for Loan Losses The purpose of the allowance for loan losses ("ALLL") is to provide for probable losses inherent in the loan portfolio. The allowance is increased by the provision for loan losses and by recoveries of previously charged-off loans. Loan charge-offs decrease the allowance. The goal of the Company is to maintain an appropriate, systematic, and consistently applied process to determine the amounts of the ALLL and the provision for loan loss expense. The Company uses certain practices to manage its credit risk. These practices include (1) appropriate lending limits for loan officers, (2) a loan approval process, (3) careful underwriting of loan requests, including analysis of borrowers, cash flows, collateral, and market risks, (4) regular monitoring of the portfolio, including diversification by type and geography, (5) review of loans by the Loan Review department, which operates independently of loan production (the Loan Review function consists of a co-sourced arrangement using both internal personnel and external vendors to provide the Company with a more robust review function of the loan portfolio), (6) regular meetings of the Credit Committees to discuss portfolio and policy changes and make decisions on large or unusual loan requests, and (7) regular meetings of the Asset Quality Committee which reviews the status of individual loans. Risk grades are assigned as part of the loan origination process. From time to time risk grades may be modified as warranted by the facts and circumstances surrounding the credit. Calculation and analysis of the allowance for loan losses is prepared quarterly by the Finance Department. The Company's Credit Committee, Capital Management Committee, Audit Committee, and the Board of Directors review the allowance for adequacy. The Company's allowance for loan losses has two basic components: the formula allowance and the specific allowance. Each of these components is determined based upon estimates and judgments. The formula allowance uses historical loss experience as an indicator of future losses, along with various qualitative factors, including levels and trends in delinquencies, nonaccrual loans, charge-offs and recoveries, trends in volume and terms of loans, effects of changes in underwriting standards, experience of lending staff, economic conditions, and portfolio concentrations. In the formula allowance for commercial and commercial real estate loans, the historical loss rate is combined with the qualitative factors, resulting in an adjusted loss factor for each risk-grade category of loans. The period-end balances for each loan risk-grade category are multiplied by the adjusted loss factor. Allowance calculations for consumer loans are calculated based on historical losses for each product category without regard to risk grade. This loss rate is combined with qualitative factors resulting in an adjusted loss factor for each product category. The specific allowance uses various techniques to arrive at an estimate of loss for specifically identified impaired loans. These include: • The present value of expected future cash flows discounted at the loan's effective interest rate. The effective interest rate on a loan is the rate of return implicit in the loan (that is, the contractual interest rate adjusted for any net deferred loan fees or costs and any premium or discount existing at the origination or acquisition of the loan); • The loan's observable market price, or • The fair value of the collateral, net of estimated costs to dispose, if the loan is collateral dependent. The use of these computed values is inherently subjective and actual losses could be greater or less than the estimates. No single statistic, formula, or measurement determines the adequacy of the allowance. Management makes subjective and complex judgments about matters that are inherently uncertain, and different amounts would be reported under different conditions or using different assumptions. For analytical purposes, management allocates a portion of the allowance to specific loan categories and specific loans. However, the entire allowance is used to absorb credit losses inherent in the loan portfolio, including identified and unidentified losses. The relationships and ratios used in calculating the allowance, including the qualitative factors, may change from period to period as facts and circumstances evolve. Furthermore, management cannot provide assurance that in any particular period the Company will not have sizeable credit losses in relation to the amount reserved. Management may find it necessary to significantly adjust the allowance, considering current factors at the time. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation and amortization. Premises and equipment are depreciated over their estimated useful lives ranging from three years to thirty-nine years ; leasehold improvements are amortized over the lives of the respective leases or the estimated useful lives of the improvements, whichever is less. Software is generally amortized over three years . Depreciation and amortization are recorded on the straight-line method. Costs of maintenance and repairs are charged to expense as incurred. Costs of replacing structural parts of major units are considered individually and are expensed or capitalized as the facts dictate. Gains and losses on routine dispositions are reflected in current operations. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is subject to at least an annual assessment for impairment by applying a fair value based test. Additionally, acquired intangible assets (such as core deposit intangibles) are separately recognized if the benefit of the assets can be sold, transferred, licensed, rented, or exchanged, and amortized over their useful lives. Intangible assets related to branch transactions continued to amortize. The cost of purchased deposit relationships and other intangible assets, based on independent valuation, are being amortized over their estimated lives ranging from eight to ten years. The Company records as goodwill the excess of 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. |
Trust Assets | Trust Assets Securities and other property held by the trust and investment services segment in a fiduciary or agency capacity are not assets of the Company and are not included in the accompanying consolidated financial statements. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned represents real estate that has been acquired through loan foreclosures or deeds received in lieu of loan payments. Generally, such properties are appraised at the time acquired, and are recorded at fair value less estimated selling costs. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in noninterest expense. |
Bank Owned Life Insurance | Bank Owned Life Insurance The Company has acquired bank owned life insurance ("BOLI") in connection with three acquisitions. The asset is reflected as the cash surrender value of the policies as provided by the insurer on a monthly basis. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Income Taxes | Income Taxes The Company uses the balance sheet method to account for deferred income tax assets and liabilities. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. |
Stock-Based Compensation | Stock-Based Compensation Stock compensation accounting guidance Accounting Standards Codification ("ASC") 718, "Compensation – Stock Compensation" requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees' service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Scholes model is used to estimate the fair value of stock options, while the market price of the Company's common stock at the date of grant is used for restricted stock awards. |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflect the impact of additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company consist solely of outstanding stock options, and are determined using the treasury method. Nonvested shares of restricted stock are included in the computation of basic earnings per share because the holder has voting rights and shares in non-forfeitable dividends during the vesting period. |
Comprehensive Income | Comprehensive Income Comprehensive income is shown in a two statement approach; the first statement presents total net income and its components followed by a second statement that presents all the components of other comprehensive income such as unrealized gains and losses on available for sale securities and changes in the funded status of a defined benefit postretirement plan. In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“AOCI”) . The Company early adopted this new standard in early 2018. ASU 2018-02 requires reclassification from AOCI to retained earnings for "stranded" tax effects resulting from the impact of the newly enacted federal corporate income tax rate on items included in AOCI. |
Advertising and Marketing Costs | Advertising and Marketing Costs Advertising and marketing costs are expensed as incurred, and were $352,000 , $260,000 , and $356,000 in 2017 , 2016 , and 2015 , respectively. |
Mergers and Acquisitions | Mergers and Acquisitions Business combinations are accounted for under ASC 805, "Business Combinations", using the acquisition method of accounting. The acquisition method of accounting requires an acquirer to recognize the assets acquired and the liabilities assumed at the acquisition date measured at their fair values as of that date. To determine the fair values, the Company relies on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analyses or other valuation techniques. Under the acquisition method of accounting, the Company identifies the acquirer and the closing date and applies applicable recognition principles and conditions. Acquisition-related costs are costs the Company incurs to effect a business combination. Those costs include advisory, legal, accounting, valuation, and other professional or consulting fees. Some other examples of costs to the Company include systems conversions, integration planning consultants and advertising costs. The Company accounts for acquisition-related costs as expenses in the periods in which the costs are incurred and the services are received, with one exception. The costs to issue debt or equity securities is recognized in accordance with other applicable GAAP. These acquisition-related costs have been and will be included within the Consolidated Statements of Income classified within the noninterest expense caption. |
Reclassifications | Reclassifications Certain reclassifications have been made in prior years financial statements to conform to classifications used in the current year. |
Use of Estimates | Use of Estimates In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and 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, goodwill and intangible assets, unfunded pension liability, other-than-temporary impairment of securities, accounting for merger and acquisition activity, accounting for acquired loans with specific credit-related deterioration, the valuation of other real estate owned, and the valuation of deferred tax assets and liabilities. |
Adoption of New Accounting Standards and Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The amendments in ASU 2016-01, among other things: (1) requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (2) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (3) Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables); and (4) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not expect the adoption of ASU 2016-01 to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company has analyzed all leases currently in place and determined the adoption of ASU 2016-02 will not have a material impact on its consolidated financial statements. During June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The amendments in this ASU are effective for Securities and Exchange Commission ("SEC") filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company has formed a committee to address the adoption of the standard and engaged a third party vendor to assist with the data gathering and analysis. The Company is currently assessing the impact that ASU 2016-13 will have on its consolidated financial statements. During August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments", to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The amendments should be applied using a retrospective transition method to each period presented. If retrospective application is impractical for some of the issues addressed by the update, the amendments for those issues would be applied prospectively as of the earliest date practicable. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU 2016-15 to have a material impact on its consolidated financial statements. During January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business". The amendments in this ASU clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Under the current implementation guidance in Topic 805, there are three elements of a business - inputs, processes, and outputs. While an integrated set of assets and activities (collectively referred to as a "set") that is a business usually has outputs, outputs are not required to be present. In addition, all the inputs and processes that a seller uses in operating a set are not required if market participants can acquire the set and continue to produce outputs. The amendments in this ASU provide a screen to determine when a set is not a business. If the screen is not met, the amendments (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. The ASU provides a framework to assist entities in evaluating whether both an input and a substantive process are present. The amendments in this ASU are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The amendments in this ASU should be applied prospectively on or after the effective date. No disclosures are required at transition. The Company does not expect the adoption of ASU 2017-01 to have a material impact on its consolidated financial statements. During January 2017, the FASB issued ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". The amendments in this ASU simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Public business entities that are SEC filers should adopt the amendments in this ASU for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of ASU 2017-04 to have a material impact on its consolidated financial statements. During March 2017, the FASB issued ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The amendments in this ASU require an employer that offers defined benefit pension plans, other postretirement benefit plans, or other types of benefits accounted for under Topic 715 to report the service cost component of net periodic benefit cost in the same line item(s) as other compensation costs arising from services rendered during the period. The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component. If the other components of net periodic benefit cost are not presented on a separate line or lines, the line item(s) used in the income statement must be disclosed. In addition, only the service cost component will be eligible for capitalization as part of an asset, when applicable. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. The Company does not expect the adoption of ASU 2017-07 to have a material impact on its consolidated financial statements. During March 2017, the FASB issued ASU No. 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310‐20), Premium Amortization on Purchased Callable Debt Securities.” The amendments in this ASU shorten the amortization period for certain callable debt securities purchased at a premium. Upon adoption of the standard, premiums on these qualifying callable debt securities will be amortized to the earliest call date. Discounts on purchased debt securities will continue to be accreted to maturity. The amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Upon transition, entities should apply the guidance on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption and provide the disclosures required for a change in accounting principle. The Company is currently assessing the impact that ASU 2017-08 will have on its consolidated financial statements. During May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting.” The amendments provide guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. The amendments are effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for reporting periods for which financial statements have not yet been issued . The Company is currently assessing the impact that ASU 2017-09 will have on its consolidated financial statements. During August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” The amendments in this ASU modify the designation and measurement guidance for hedge accounting as well as provide for increased transparency regarding the presentation of economic results on both the financial statements and related footnotes. Certain aspects of hedge effectiveness assessments will also be simplified upon implementation of this update. The amendments are effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted, including adoption in any interim period. The Company does not expect the adoption of ASU 2017-12 to have a material impact on its consolidated financial statements. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and estimated fair value of investments in securities | The amortized cost and estimated fair value of investments in securities at December 31, 2017 and 2016 were as follows (dollars in thousands): December 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Securities available for sale: Federal agencies and GSEs $ 114,246 $ 8 $ 2,127 $ 112,127 Mortgage-backed and CMOs 106,163 293 1,140 105,316 State and municipal 92,711 1,262 347 93,626 Corporate 7,842 234 14 8,062 Equity securities 1,383 823 — 2,206 Total securities available for sale $ 322,345 $ 2,620 $ 3,628 $ 321,337 December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Securities available for sale: Federal agencies and GSEs $ 106,379 $ 62 $ 2,387 $ 104,054 Mortgage-backed and CMOs 79,917 514 938 79,493 State and municipal 145,757 2,540 782 147,515 Corporate 13,392 123 23 13,492 Equity securities 1,288 660 — 1,948 Total securities available for sale $ 346,733 $ 3,899 $ 4,130 $ 346,502 |
Amortized cost and estimated fair value of investments in securities by contractual maturity | The amortized cost and estimated fair value of investments in securities at December 31, 2017 , by contractual maturity, are shown in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Because mortgage-backed securities have both known principal repayment terms as well as unknown principal repayments due to potential borrower pre-payments, it is difficult to accurately predict the final maturity of these investments. Mortgage-backed securities are shown separately (dollars in thousands): Available for Sale Amortized Cost Fair Value Due in one year or less $ 11,540 $ 11,549 Due after one year through five years 102,806 102,982 Due after five years through ten years 73,884 73,072 Due after ten years 26,569 26,212 Mortgage-backed and CMOs 106,163 105,316 Equity securities 1,383 2,206 $ 322,345 $ 321,337 |
Gross realized gains and losses | Gross realized gains and losses from the sale of securities available for sale were as follows (dollars in thousands): For the Years Ended December 31, 2017 2016 2015 Realized gains $ 825 $ 844 $ 871 Realized losses (13 ) (8 ) (4 ) Other-than-temporary impairment — — — |
Schedule of available for sale securities, continuous unrealized loss position | 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, 2016 (dollars in thousands): Total Less than 12 Months 12 Months or More Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Federal agencies and GSEs $ 89,597 $ 2,387 $ 89,597 $ 2,387 $ — $ — Mortgage-backed and CMOs 57,762 938 56,076 911 1,686 27 State and municipal 47,221 782 47,221 782 — — Corporate 2,895 23 2,895 23 — — Total $ 197,475 $ 4,130 $ 195,789 $ 4,103 $ 1,686 $ 27 Available for sale securities that have been in a continuous unrealized loss position are as follows (dollars in thousands): Total Less than 12 Months 12 Months or More Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Federal agencies and GSEs $ 99,133 $ 2,127 $ 45,474 $ 321 $ 53,659 $ 1,806 Mortgage-backed and CMOs 90,806 1,140 64,449 533 26,357 607 State and municipal 34,550 347 27,442 159 7,108 188 Corporate 1,529 14 495 5 1,034 9 Total $ 226,018 $ 3,628 $ 137,860 $ 1,018 $ 88,158 $ 2,610 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of loans, excluding loans held for sale | Loans, excluding loans held for sale, at December 31, 2017 and 2016 were comprised of the following (dollars in thousands): December 31, 2017 2016 Commercial $ 251,666 $ 208,717 Commercial real estate: Construction and land development 123,147 114,258 Commercial real estate 637,701 510,960 Residential real estate: Residential 209,326 215,104 Home equity 109,857 110,751 Consumer 4,428 5,031 Total loans $ 1,336,125 $ 1,164,821 |
Schedule stating outstanding principal balance and the carrying amount of loan acquired | The outstanding principal balance and the carrying amount of these loans, including ASC 310-30, included in the consolidated balance sheets at December 31, 2017 and 2016 are as follows (dollars in thousands): 2017 2016 Outstanding principal balance $ 79,523 $ 104,172 Carrying amount 73,796 96,487 The outstanding principal balance and related carrying amount of acquired impaired loans, for which the Company applies ASC 310-30 to account for interest earned, at December 31, 2017 and 2016 are as follows (dollars in thousands): 2017 2016 Outstanding principal balance $ 27,876 $ 34,378 Carrying amount 23,430 28,669 |
Schedule of changes in the accretable discount on acquired loans | The following table presents changes in the accretable yield on acquired impaired loans, for which the Company applies ASC 310-30, for the years ended December 31, 2017 , 2016 , and 2015 (dollars in thousands): 2017 2016 2015 Balance at January 1 $ 6,103 $ 7,299 $ 1,440 Additions from merger with MainStreet — — 7,140 Accretion (3,117 ) (3,232 ) (4,313 ) Reclassification from nonaccretable difference 1,006 2,197 238 Other changes, net 898 (161 ) 2,794 Balance at December 31 $ 4,890 $ 6,103 $ 7,299 |
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 December 31, 2017 (dollars in thousands): 30- 59 Days 60-89 Days 90 Days + Non- Total Current Total Commercial $ 92 $ — $ — $ 90 $ 182 $ 251,484 $ 251,666 Commercial real estate: Construction and land development — — — 36 36 123,111 123,147 Commercial real estate 86 — 280 489 855 636,846 637,701 Residential: Residential 282 71 79 1,343 1,775 207,551 209,326 Home equity 141 16 — 243 400 109,457 109,857 Consumer 21 5 — — 26 4,402 4,428 Total $ 622 $ 92 $ 359 $ 2,201 $ 3,274 $ 1,332,851 $ 1,336,125 The following table shows an analysis by portfolio segment of the Company's past due loans at December 31, 2016 (dollars in thousands): 30- 59 Days 60-89 Days 90 Days + Non- Total Current Total Commercial $ 50 $ — $ — $ 19 $ 69 $ 208,648 $ 208,717 Commercial real estate: Construction and land development 60 12 — 64 136 114,122 114,258 Commercial real estate — 127 339 773 1,239 509,721 510,960 Residential: Residential 1,280 117 248 1,802 3,447 211,657 215,104 Home equity 229 — — 289 518 110,233 110,751 Consumer 6 5 — 18 29 5,002 5,031 Total $ 1,625 $ 261 $ 587 $ 2,965 $ 5,438 $ 1,159,383 $ 1,164,821 |
Schedule of impaired loan balances by portfolio segment | The following table presents the Company's impaired loan balances by portfolio segment, excluding acquired impaired loans, at December 31, 2017 (dollars in thousands): Recorded Unpaid Related Average Interest With no related allowance recorded: Commercial $ 4 $ 4 $ — $ 19 $ 1 Commercial real estate: Construction and land development — — — 56 4 Commercial real estate 791 789 — 1,069 66 Residential: Residential 717 719 — 575 41 Home equity 142 142 — 109 10 Consumer 5 5 — 6 1 $ 1,659 $ 1,659 $ — $ 1,834 $ 123 With a related allowance recorded: Commercial $ 202 $ 201 $ 154 $ 150 $ 16 Commercial real estate: Construction and land development* 37 37 — 56 — Commercial real estate* 34 32 — 126 11 Residential Residential 1,022 1,022 12 1,174 27 Home equity 263 261 1 251 1 Consumer* — — — 5 — $ 1,558 $ 1,553 $ 167 $ 1,762 $ 55 Total: Commercial $ 206 $ 205 $ 154 $ 169 $ 17 Commercial real estate: Construction and land development 37 37 — 112 4 Commercial real estate 825 821 — 1,195 77 Residential: Residential 1,739 1,741 12 1,749 68 Home equity 405 403 1 360 11 Consumer 5 5 — 11 1 $ 3,217 $ 3,212 $ 167 $ 3,596 $ 178 *Allowance is reported as zero in the table due to presentation in thousands and rounding. In the table above, recorded investment may exceed unpaid principal balance due to acquired loans with a premium and loans where unearned costs exceed unearned fees. The following table presents the Company's impaired loan balances by portfolio segment, excluding acquired impaired loans, at December 31, 2016 (dollars in thousands): Recorded Unpaid Related Average Interest With no related allowance recorded: Commercial $ 24 $ 24 $ — $ 12 $ 2 Commercial real estate: Construction and land development 158 157 — 198 16 Commercial real estate 1,916 1,917 — 1,409 107 Residential: Residential 557 567 — 318 38 Home equity 6 6 — 153 16 Consumer 9 9 — 10 1 $ 2,670 $ 2,680 $ — $ 2,100 $ 180 With a related allowance recorded: Commercial* $ 19 $ 19 $ — $ 78 $ 1 Commercial real estate: Construction and land development* 64 65 — 272 10 Commercial real estate* 48 48 — 286 7 Residential: Residential 1,639 1,639 22 1,593 32 Home equity 386 385 1 345 4 Consumer* 18 18 — 14 — $ 2,174 $ 2,174 $ 23 $ 2,588 $ 54 Total: Commercial $ 43 $ 43 $ — $ 90 $ 3 Commercial real estate: Construction and land development 222 222 — 470 26 Commercial real estate 1,964 1,965 — 1,695 114 Residential: Residential 2,196 2,206 22 1,911 70 Home equity 392 391 1 498 20 Consumer 27 27 — 24 1 $ 4,844 $ 4,854 $ 23 $ 4,688 $ 234 *Allowance is reported as zero in the table due to presentation in thousands and rounding. |
Schedule of detail of loans modified as troubled debt restructurings | The following table shows the detail of loans modified as TDRs during the year ended December 31, 2017 , 2016 , and 2015 , included in the impaired loan balances (dollars in thousands): Loans Modified as a TDR for the Year Ended December 31, 2017 Number of Pre-Modification Post-Modification Commercial 5 $ 212 $ 212 Commercial real estate — — — Home equity 2 57 57 Residential real estate 1 36 36 Consumer — — — Total 8 $ 305 $ 305 Loans Modified as a TDR for the Year Ended December 31, 2016 Number of Pre-Modification Post-Modification Commercial 2 $ 24 $ 24 Commercial real estate 2 1,005 1,003 Home equity — — — Residential real estate 4 322 312 Consumer — — — Total 8 $ 1,351 $ 1,339 Loans Modified as a TDR for the Year Ended December 31, 2015 Number of Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate 3 394 394 Home equity 1 107 105 Residential real estate 4 596 583 Consumer — — — Total 8 $ 1,097 $ 1,082 |
Schedule of primary reason for troubled debt modifications | The following table summarizes the primary reason certain loan modifications were classified as TDRs and includes newly designated TDRs as well as modifications made to existing TDRs. Rate modifications include TDRs made with below market interest rates that also include modifications of loan structures (dollars in thousands): Year Ended December 31, 2017 2016 2015 Type of Modification ALLL Type of Modification ALLL Type of Modification ALLL Rate Structure Impact Rate Structure Impact Rate Structure Impact Commercial $ — $ 212 $ 137 $ — $ 24 $ — $ — $ — $ — Commercial real estate — — — — 1,003 — — 394 — Home equity — 57 1 — — — 105 — 1 Residential real estate — 36 — — 312 1 — 583 19 Consumer — — — — — — — — — Total $ — $ 305 $ 138 $ — $ 1,339 $ 1 $ 105 $ 977 $ 20 |
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 December 31, 2016 (dollars in thousands): Commercial and Consumer Credit Exposure Credit Risk Profile by Internally Assigned Grade Commercial Construction and Land Development Commercial Residential Real Estate Home Pass $ 208,098 $ 112,729 $ 501,081 $ 199,278 $ 108,799 Special Mention 592 902 4,859 10,600 1,257 Substandard 27 627 5,020 5,226 695 Doubtful — — — — — Total $ 208,717 $ 114,258 $ 510,960 $ 215,104 $ 110,751 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Consumer Performing $ 5,003 Nonperforming 28 Total $ 5,031 The following table shows the Company's loan portfolio broken down by internal risk grading as of December 31, 2017 (dollars in thousands): Commercial and Consumer Credit Exposure Credit Risk Profile by Internally Assigned Grade Commercial Construction and Land Development Commercial Real Estate Residential Real Estate Home Equity Pass $ 248,714 $ 114,502 $ 625,861 $ 200,405 $ 107,705 Special Mention 1,763 7,114 6,914 4,438 1,325 Substandard 1,189 1,531 4,926 4,483 827 Doubtful — — — — — Total $ 251,666 $ 123,147 $ 637,701 $ 209,326 $ 109,857 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Consumer Performing $ 4,415 Nonperforming 13 Total $ 4,428 |
Allowance for Loan Losses and36
Allowance for Loan Losses and Reserve for Unfunded Lending Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Provision for Loan and Lease Losses [Abstract] | |
Schedule of changes in the allowance for loan losses | Changes in the allowance for loan losses and the reserve for unfunded lending commitments for each of the years in the three-year period ended December 31, 2017 , are presented below (dollars in thousands): Years Ended December 31, 2017 2016 2015 Allowance for Loan Losses Balance, beginning of year $ 12,801 $ 12,601 $ 12,427 Provision for loan losses 1,016 250 950 Charge-offs (690 ) (326 ) (1,200 ) Recoveries 476 276 424 Balance, end of year $ 13,603 $ 12,801 $ 12,601 Years Ended December 31, 2017 2016 2015 Reserve for Unfunded Lending Commitments Balance, beginning of year $ 203 $ 184 $ 163 Provision for unfunded commitments 3 19 21 Charge-offs — — — Balance, end of year $ 206 $ 203 $ 184 The following table presents the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment for the year ended December 31, 2017 (dollars in thousands): Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for Loan Losses Balance at December 31, 2016 $ 2,095 $ 7,355 $ 3,303 $ 48 $ — $ 12,801 Charge-offs (282 ) (93 ) (172 ) (143 ) — (690 ) Recoveries 223 60 85 108 — 476 Provision 377 999 (391 ) 31 — 1,016 Balance at December 31, 2017 $ 2,413 $ 8,321 $ 2,825 $ 44 $ — $ 13,603 Balance at December 31, 2017: Allowance for Loan Losses Individually evaluated for impairment $ 154 $ — $ 13 $ — $ — $ 167 Collectively evaluated for impairment 2,259 8,203 2,645 44 — 13,151 Acquired impaired loans — 118 167 — — 285 Total $ 2,413 $ 8,321 $ 2,825 $ 44 $ — $ 13,603 Loans Individually evaluated for impairment $ 206 $ 862 $ 2,144 $ 5 $ — $ 3,217 Collectively evaluated for impairment 251,185 747,819 306,066 4,408 — 1,309,478 Acquired impaired loans 275 12,167 10,973 15 — 23,430 Total $ 251,666 $ 760,848 $ 319,183 $ 4,428 $ — $ 1,336,125 The following table presents the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment for the year ended December 31, 2016 (dollars in thousands): Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for Loan Losses Balance at December 31, 2015 $ 2,065 $ 6,930 $ 3,546 $ 60 $ — $ 12,601 Charge-offs (40 ) (10 ) (87 ) (189 ) — (326 ) Recoveries 40 32 68 136 — 276 Provision 30 403 (224 ) 41 — 250 Balance at December 31, 2016 $ 2,095 $ 7,355 $ 3,303 $ 48 $ — $ 12,801 Balance at December 31, 2016: Allowance for Loan Losses Individually evaluated for impairment $ — $ — $ 23 $ — $ — $ 23 Collectively evaluated for impairment 2,087 7,248 3,046 48 — 12,429 Acquired impaired loans 8 107 234 — — 349 Total $ 2,095 $ 7,355 $ 3,303 $ 48 $ — $ 12,801 Loans Individually evaluated for impairment $ 43 $ 2,186 $ 2,588 $ 27 $ — $ 4,844 Collectively evaluated for impairment 208,258 610,462 307,600 4,988 — 1,131,308 Acquired impaired loans 416 12,570 15,667 16 — 28,669 Total $ 208,717 $ 625,218 $ 325,855 $ 5,031 $ — $ 1,164,821 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Classifications of premises and equipment | Major classifications of premises and equipment at December 31, 2017 and 2016 are summarized as follows (dollars in thousands): December 31, 2017 2016 Land $ 6,583 $ 6,891 Buildings 26,713 25,616 Leasehold improvements 981 1,078 Furniture and equipment 17,677 16,372 51,954 49,957 Accumulated depreciation (26,053 ) (24,518 ) Premises and equipment, net $ 25,901 $ 25,439 |
Minimum annual rental payments under leases | The Company has entered into operating leases for several of its branch and ATM facilities. The minimum annual rental payments under these leases at December 31, 2017 are as follows (dollars in thousands): Minimum Lease Year Payments 2018 $ 726 2019 215 2020 36 2021 13 2022 7 2023 and after 15 $ 1,012 |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill and intangibles | The changes in the carrying amount of goodwill and intangibles for the twelve months ended December 31, 2017 , are as follows (dollars in thousands): Goodwill Intangibles Balance at December 31, 2016 $ 43,872 $ 1,719 Amortization — (528 ) Balance at December 31, 2017 $ 43,872 $ 1,191 |
Goodwill and intangible assets | Goodwill and intangible assets at December 31, 2017 and 2016 are as follow (dollars in thousands): Gross Carrying Value Accumulated Amortization Net Carrying Value December 31, 2017 Core deposit intangibles $ 11,508 $ (10,317 ) $ 1,191 Goodwill 43,872 — 43,872 December 31, 2016 Core deposit intangibles $ 11,508 $ (9,789 ) $ 1,719 Goodwill 43,872 — 43,872 |
Estimated future amortization expense of core deposit intangibles | As of December 31, 2017 , the estimated future amortization expense of core deposit intangibles is as follows (dollars in thousands): Year Amount 2018 $ 265 2019 219 2020 207 2021 197 2022 155 2023 and after 148 Total $ 1,191 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Scheduled maturities of certificates of deposits | At December 31, 2017 , the scheduled maturities of certificates of deposits (included in "time" deposits on the Consolidated Balance Sheet) were as follows (dollars in thousands): Year Amount 2018 $ 157,040 2019 46,070 2020 33,711 2021 88,504 2022 52,319 2023 and after 6,014 Total $ 383,658 |
Short-term Borrowings (Tables)
Short-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Short-term Debt [Abstract] | |
Schedule of short-term borrowings | Short-term borrowings consisted solely of the following at December 31, 2017 and 2016 (dollars in thousands): December 31, 2017 December 31, 2016 Amount Weighted Average Rate Amount Weighted Average Rate Customer repurchase agreements $ 10,726 0.01 % $ 39,166 0.01 % Other short-term borrowings 24,000 1.59 % 20,000 0.80 % Total short-term borrowings $ 34,726 $ 59,166 |
Long-term Borrowings (Tables)
Long-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long term advances with federal home loan bank | There were no long-term borrowings as of December 31, 2017 . Long-term borrowings as of December 31, 2016 consisted of the following fixed-rate advance (dollars in thousands): 2016 Due by Advance Amount Weighted Average Rate November 30, 2017 $ 9,980 2.98 % |
Junior Subordinated Debt (Table
Junior Subordinated Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 (dollars in thousands): Principal Amount As of December 31, Issuing Entity Date Issued Interest Rate Maturity Date 2017 2016 AMNB Trust I 4/7/2006 Libor plus 1.35% 6/30/2036 $ 20,619 $ 20,619 MidCarolina Trust I 10/29/2002 Libor plus 3.45% 11/7/2032 4,322 4,265 MidCarolina Trust II 12/3/2003 Libor plus 2.95% 10/7/2033 2,885 2,840 $ 27,826 $ 27,724 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of summary of stock option transactions | A summary of stock option transactions for the year ended December 31, 2017 is as follows: Option Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value ($000) Outstanding at December 31, 2016 58,411 $ 24.37 Replacement stock options — — Granted — — Exercised (4,950 ) 22.93 Forfeited (578 ) 23.33 Expired (1,898 ) 36.08 Outstanding at December 31, 2017 50,985 $ 24.09 0.79 years $ 725 Exercisable at December 31, 2017 50,985 $ 24.09 0.79 years $ 725 |
Schedule of summary of information related to stock options outstanding | The following table summarizes information related to stock options outstanding on December 31, 2017 : Options Outstanding and Exercisable Range of Exercise Prices Number of Outstanding Options Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price $20.00 to $25.00 27,060 1.04 years $ 22.10 $25.01 to $30.00 22,275 0.55 25.82 $30.01 to $41.67 1,650 0.01 33.33 50,985 0.79 years $ 24.09 |
Schedule of Nonvested restricted stock activity | Nonvested restricted stock activity for the year ended December 31, 2017 is summarized in the following table: Restricted Stock Shares Weighted Average Grant Date Value Nonvested at December 31, 2016 50,822 $ 23.21 Granted 14,453 34.74 Vested (18,774 ) 24.49 Forfeited — — Nonvested at December 31, 2017 46,501 26.28 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of entity's net deferred tax assets (liabilities) | The components of the Company's net deferred tax assets (liabilities) were as follows (dollars in thousands): December 31, 2017 2016 Deferred tax assets: Allowance for loan losses $ 3,047 $ 4,480 Nonaccrual loan interest 444 610 Other real estate owned valuation allowance 150 199 Deferred compensation 835 1,335 Net unrealized losses on securities 226 81 Acquisition accounting adjustments 1,283 3,215 Accrued pension liability 170 100 Other 488 796 Total deferred tax assets 6,643 10,816 Deferred tax liabilities: Depreciation 761 1,030 Accretion of discounts on securities 24 113 Core deposit intangibles 267 602 Trust preferred fair value adjustment 349 581 Other 201 243 Total deferred tax liabilities 1,602 2,569 Net deferred tax assets $ 5,041 $ 8,247 |
Provision for income taxes | The provision for income taxes consists of the following (dollars in thousands): Years Ended December 31, 2017 2016 2015 Current tax expense $ 7,355 $ 6,125 $ 4,279 Deferred tax expense 724 882 1,741 Deferred tax asset adjustment for tax rate change 2,747 — — Total income tax expense $ 10,826 $ 7,007 $ 6,020 |
Reconciliation of the expected Federal income tax expense to reported income tax expense | A reconcilement of the "expected" Federal income tax expense to reported income tax expense is as follows (dollars in thousands): Years Ended December 31, 2017 2016 2015 Expected federal tax expense $ 9,126 $ 8,158 $ 7,371 Tax impact from enacted change in tax rate 2,747 — — Nondeductible interest expense 85 94 78 Tax-exempt interest (949 ) (1,265 ) (1,338 ) State income taxes 296 296 222 Other, net (479 ) (276 ) (313 ) Total income tax expense $ 10,826 $ 7,007 $ 6,020 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of weighted average number of shares used in computing 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. Nonvested restricted shares are included in the computation of basic earnings per share as the holder is entitled to full shareholder benefits during the vesting period including voting rights and sharing in nonforfeitable dividends. Years Ended December 31, 2017 2016 2015 Shares Per Share Amount Shares Per Share Amount Shares Per Share Amount Basic earnings per share 8,641,717 $ 1.76 8,611,507 $ 1.89 8,680,502 $ 1.73 Effect of dilutive securities - stock options 18,911 — 9,734 — 7,948 — Diluted earnings per share 8,660,628 $ 1.76 8,621,241 $ 1.89 8,688,450 $ 1.73 |
Off-Balance Sheet Activities (T
Off-Balance Sheet Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Off Balance Sheet Activities [Abstract] | |
Off-balance sheet financial instruments outstanding | The following off-balance sheet financial instruments whose contract amounts represent credit risk were outstanding at December 31, 2017 and 2016 (dollars in thousands): December 31, 2017 2016 Commitments to extend credit $ 341,760 $ 345,803 Standby letters of credit 13,647 4,088 Mortgage loan rate lock commitments 5,089 12,839 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Activity of loans to related parties | An analysis of these loans for 2017 is as follows (dollars in thousands): Balance at December 31, 2016 $ 22,078 Additions 24,265 Repayments (20,589 ) Reclassifications (1) (11,533 ) Balance at December 31, 2017 $ 14,221 (1) Includes loans (i) to persons no longer affiliated with the Company and therefore not considered related party loans as of period end or (ii) that were considered related party loans in the prior year but were subsequently not considered related party loans in the current year. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefit Plan [Abstract] | |
Schedule of components of net periodic benefit cost | Information pertaining to the activity in the plan is as follows (dollars in thousands): As of and for the Years Ended December 31, 2017 2016 2015 Change in Benefit Obligation: Projected benefit obligation at beginning of year $ 7,932 $ 8,453 $ 10,710 Service cost — — — Interest cost 237 269 297 Actuarial (gain) loss 611 352 (100 ) Settlement gain (3 ) (51 ) — Benefits paid (464 ) (1,091 ) (2,454 ) Projected benefit obligation at end of year 8,313 7,932 8,453 Change in Plan Assets: Fair value of plan assets at beginning of year 7,647 8,428 10,949 Actual return on plan assets 373 310 (67 ) Benefits paid (464 ) (1,091 ) (2,454 ) Fair value of plan assets at end of year 7,556 7,647 8,428 Funded Status at End of Year $ (757 ) $ (285 ) $ (25 ) Amounts Recognized in the Consolidated Balance Sheets Other liabilities $ (757 ) $ (285 ) $ (25 ) Amounts Recognized in Accumulated Other Comprehensive Loss Net actuarial loss $ 2,886 $ 2,652 $ 2,818 Deferred income taxes (606 ) (928 ) (986 ) Amount recognized $ 2,280 $ 1,724 $ 1,832 As of and for the Years Ended December 31, 2017 2016 2015 Components of Net Periodic Benefit Cost Service cost $ — $ — $ — Interest cost 237 269 297 Expected return on plan assets (353 ) (385 ) (459 ) Recognized net loss due to settlement 135 315 671 Recognized net actuarial loss 218 228 293 Net periodic benefit cost $ 237 $ 427 $ 802 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss Net actuarial (gain) loss $ 234 $ (166 ) $ (538 ) Amortization of prior service cost — — — Total recognized in other comprehensive (income) loss $ 234 $ (166 ) $ (538 ) Total Recognized in Net Periodic Benefit Cost and Other Comprehensive (Income) Loss $ 471 $ 261 $ 264 |
Weighted-average asset allocations by asset category | Below is a description of the plan's assets. The plan's weighted-average asset allocations by asset category are as follows as of December 31, 2017 and 2016 : Asset Category December 31, 2017 2016 Fixed Income 61.7 % 51.3 % Equity 29.5 % 38.0 % Cash and Accrued Income 8.8 % 10.7 % Total 100.0 % 100.0 % |
Fair value of pension plan assets by asset category | The fair value of the Company's pension plan assets at December 31, 2017 and 2016 , by asset category are as follows (dollars in thousands): Fair Value Measurements at December 31, 2017 using Balance at December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Asset Category 2017 Level 1 Level 2 Level 3 Cash $ 617 $ 617 $ — $ — Fixed income securities Government sponsored entities 1,892 — 1,892 — Municipal bonds and notes 1,931 — 1,931 — Corporate bonds and notes 880 — 880 — Equity securities U.S. companies 1,768 1,768 — — Foreign companies 468 468 — — $ 7,556 $ 2,853 $ 4,703 $ — Fair Value Measurements at December 31, 2016 using Balance at December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Asset Category 2016 Level 1 Level 2 Level 3 Cash $ 780 $ 780 $ — $ — Fixed income securities Government sponsored entities 1,496 — 1,496 — Municipal bonds and notes 1,453 — 1,453 — Corporate bonds and notes 973 — 973 — Equity securities U.S. companies 2,505 2,505 — — Foreign companies 440 440 — — $ 7,647 $ 3,725 $ 3,922 $ — |
Projected benefit payments | Projected benefit payments for the years 2018 to 2026 are as follows (dollars in thousands): Year Amount 2018 $ 1,248 2019 894 2020 457 2021 673 2022 617 2023-2026 3,519 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value assets and liabilities measured on recurring basis | The following table presents the balances of financial assets measured at fair value on a recurring basis during the period (dollars in thousands): Fair Value Measurements at December 31, 2017 Using Balance as of December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2017 Level 1 Level 2 Level 3 Assets: Securities available for sale: Federal agencies and GSEs $ 112,127 $ — $ 112,127 $ — Mortgage-backed and CMOs 105,316 — 105,316 — State and municipal 93,626 — 93,626 — Corporate 8,062 — 8,062 — Equity securities 2,206 — 2,206 — Total $ 321,337 $ — $ 321,337 $ — Fair Value Measurements at December 31, 2016 Using Balance as of December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2016 Level 1 Level 2 Level 3 Assets: Securities available for sale: Federal agencies and GSEs $ 104,054 $ — $ 104,054 $ — Mortgage-backed and CMOs 79,493 — 79,493 — State and municipal 147,515 — 147,515 — Corporate 13,492 — 13,492 — Equity Securities 1,948 — 1,948 — Total $ 346,502 $ — $ 346,502 $ — |
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 during the period (dollars in thousands): Fair Value Measurements at December 31, 2017 Using Balance as of December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2017 Level 1 Level 2 Level 3 Assets: Loans held for sale $ 1,639 $ — $ 1,639 $ — Impaired loans, net of valuation allowance 1,391 — — 1,391 Other real estate owned, net 1,225 — — 1,225 Fair Value Measurements at December 31, 2016 Using Balance as of December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2016 Level 1 Level 2 Level 3 Assets: Loans held for sale $ 5,996 $ — $ 5,996 $ — Impaired loans, net of valuation allowance 2,151 — — 2,151 Other real estate owned, net 1,328 — — 1,328 |
Schedule of quantitative information of assets measured at Level 3 | Quantitative Information About Level 3 Fair Value Measurements as of December 31, 2017 : Assets Valuation Technique Unobservable Input Rate Impaired loans Discounted appraised value Selling cost 8.00% Impaired loans Discounted cash flow analysis Market rate for borrower (discount rate) 3.25% - 9.80% Other real estate owned Discounted appraised value Selling cost 8.00% Quantitative Information About Level 3 Fair Value Measurements as of December 31, 2016 : Assets Valuation Technique Unobservable Input Rate Impaired loans Discounted appraised value Selling cost 8.00% Other real estate owned Discounted appraised value Selling cost 6.00% |
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 December 31, 2017 are as follows (dollars in thousands): Fair Value Measurements at December 31, 2017 Using Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Balance Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 52,477 $ 52,477 $ — $ — $ 52,477 Securities available for sale 321,337 — 321,337 — 321,337 Restricted stock 6,110 — 6,110 — 6,110 Loans held for sale 1,639 — 1,639 — 1,639 Loans, net of allowance 1,322,522 — — 1,317,737 1,317,737 Bank owned life insurance 18,460 — 18,460 — 18,460 Accrued interest receivable 5,231 — 5,231 — 5,231 Financial Liabilities: Deposits $ 1,534,726 $ — $ 1,151,068 $ 376,888 $ 1,527,956 Repurchase agreements 10,726 — 10,726 — 10,726 Other short-term borrowings 24,000 — 24,000 — 24,000 Junior subordinated debt 27,826 — — 28,358 28,358 Accrued interest payable 674 — 674 — 674 The carrying values and estimated fair values of the Company's financial instruments at December 31, 2016 are as follows (dollars in thousands): Fair Value Measurements at December 31, 2016 Using Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Balance Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 53,207 $ 53,207 $ — $ — $ 53,207 Securities available for sale 346,502 — 346,502 — 346,502 Restricted stock 6,224 — 6,224 — 6,224 Loans held for sale 5,996 — 5,996 — 5,996 Loans, net of allowance 1,152,020 — — 1,136,961 1,136,961 Bank owned life insurance 18,163 — 18,163 — 18,163 Accrued interest receivable 5,083 — 5,083 — 5,083 Financial Liabilities: Deposits $ 1,370,640 $ — $ 991,785 $ 374,774 $ 1,366,559 Repurchase agreements 39,166 — 39,166 — 39,166 Other short-term borrowings 20,000 — 20,000 — 20,000 Long-term borrowings 9,980 — — 10,156 10,156 Junior subordinated debt 27,724 — — 24,932 24,932 Accrued interest payable 623 — 623 — 623 |
Dividend Restrictions and Reg50
Dividend Restrictions and Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
Summary information regarding regulatory capital | Actual and required capital amounts (in thousands) and ratios are presented below at year-end: Actual Required for Capital Adequacy Purposes* To Be Well Amount Ratio Amount Ratio Amount Ratio December 31, 2017 Common Equity Tier 1 Company $ 166,968 11.50 % $ 83,476 >5.75 % Bank 184,656 12.79 83,024 >5.75 $ 93,854 >6.50 % Tier 1 Capital Company 194,794 13.42 105,253 >7.25 Bank 184,656 12.79 104,683 >7.25 115,512 >8.00 Total Capital Company 208,973 14.39 134,288 >9.25 Bank 198,465 13.75 133,561 >9.25 144,390 >10.00 Leverage Capital Company 194,794 10.95 71,128 >4.00 Bank 184,656 10.43 70,796 >4.00 88,495 >5.00 December 31, 2016 Common Equity Tier 1 Company $ 158,350 11.77 % $ 68,972 >5.125 % Bank 172,927 12.92 68,580 >5.125 $ 86,979 >6.50 % Tier 1 Capital Company 186,074 13.83 89,159 >6.625 Bank 172,927 12.92 88,652 >6.625 107,051 >8.00 Total Capital Company 199,375 14.81 116,075 >8.625 Bank 185,931 13.89 115,415 >8.625 133,814 >10.00 Leverage Capital Company 186,074 11.67 63,761 >4.00 Bank 172,927 10.88 63,571 >4.00 79,464 >5.00 * Except with regard to the Company's and the Bank's leverage capital ratio, includes the current phased-in portion of the Basel III Capital Rules capital conservation buffer which is added to the minimum capital requirements for capital adequacy purposes. The capital conservation buffer requirement began being phased-in effective January 1, 2016, at 0.625% of risk-weighted assets, increasing by the same amount each year until fully implemented at 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of common equity Tier 1 to risk-weighted assets above the minimum but below the conservation buffer will face constraints on dividends, equity repurchases, and compensation based on the amount of the shortfall. |
Segment and Related Informati51
Segment and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Segment information as of and for the years ended December 31, 2017 , 2016 , and 2015 , is shown in the following table (dollars in thousands): 2017 Community Banking Trust and Investment Services Other Intersegment Eliminations Total Interest income $ 62,697 $ — $ 341 $ — $ 63,038 Interest expense 6,263 — 1,028 — 7,291 Noninterest income 9,224 4,756 247 — 14,227 Income (loss) before income taxes 24,828 2,521 (1,274 ) — 26,075 Net income (loss) 14,456 1,486 (693 ) — 15,249 Depreciation and amortization 2,393 12 — — 2,405 Total assets 1,806,647 — 236,644 (227,213 ) 1,816,078 Goodwill 43,872 — — — 43,872 Capital expenditures 2,637 11 — — 2,648 2016 Community Banking Trust and Investment Services Other Intersegment Eliminations Total Interest income $ 56,076 $ — $ 94 $ — $ 56,170 Interest expense 5,438 — 878 — 6,316 Noninterest income 8,848 4,634 23 — 13,505 Income (loss) before income taxes 22,230 2,623 (1,545 ) — 23,308 Net income (loss) 15,486 1,835 (1,020 ) — 16,301 Depreciation and amortization 2,845 11 — — 2,856 Total assets 1,669,629 — 229,241 (220,232 ) 1,678,638 Goodwill 43,872 — — — 43,872 Capital expenditures 3,609 4 — — 3,613 2015 Community Banking Trust and Investment Services Other Intersegment Eliminations Total Interest income $ 55,109 $ — $ 60 $ — $ 55,169 Interest expense 5,144 — 760 — 5,904 Noninterest income 8,386 4,881 20 — 13,287 Income (loss) before income taxes 19,398 2,737 (1,076 ) — 21,059 Net income (loss) 13,793 1,956 (710 ) — 15,039 Depreciation and amortization 3,022 12 — — 3,034 Total assets 1,545,377 — 225,533 (223,311 ) 1,547,599 Goodwill 43,872 — — — 43,872 Capital expenditures 1,453 21 — — 1,474 |
Parent Company Financial Info52
Parent Company Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets | Condensed Parent Company financial information is as follows (dollars in thousands): December 31, Condensed Balance Sheets 2017 2016 Cash $ 1,597 $ 4,654 Securities available for sale, at fair value 8,740 8,355 Investment in subsidiaries 226,452 216,340 Due from subsidiaries 46 120 Other assets 31 40 Total Assets $ 236,866 $ 229,509 Trust preferred capital notes $ 27,826 $ 27,724 Other liabilities 323 405 Shareholders' equity 208,717 201,380 Total Liabilities and Shareholders' Equity $ 236,866 $ 229,509 |
Condensed Statements of Income | Years Ended December 31, Condensed Statements of Income 2017 2016 2015 Dividends from subsidiary $ 6,000 $ 16,000 $ 11,000 Other income 588 117 80 Expenses 1,862 1,662 1,156 Income tax benefit (581 ) (526 ) (366 ) Income before equity in undistributed earnings of subsidiary 5,307 14,981 10,290 Equity in undistributed earnings of subsidiary 9,942 1,320 4,749 Net Income $ 15,249 $ 16,301 $ 15,039 |
Condensed Statements of Cash Flows | Years Ended December 31, Condensed Statements of Cash Flows 2017 2016 2015 Cash Flows from Operating Activities: Net income $ 15,249 $ 16,301 $ 15,039 Adjustments to reconcile net income to net cash provided by operating activities: Gain on sale of securities (221 ) — — Equity in (undistributed) distributions of subsidiary (9,942 ) (1,320 ) (4,749 ) Net change in other assets 83 (57 ) 257 Net change in other liabilities (82 ) 163 106 Net cash provided by operating activities 5,087 15,087 10,653 Cash Flows from Investing Activities: Purchases of securities available for sale (373 ) (6,588 ) — Sales of securities available for sale 500 — — Investment in banking subsidiary — — 563 Cash paid in bank acquisition — — (5,935 ) Net cash provided by (used in) investing activities 127 (6,588 ) (5,372 ) Cash Flows from Financing Activities: Common stock dividends paid (8,384 ) (8,266 ) (8,068 ) Repurchase of common stock — (1,292 ) (3,506 ) Proceeds from exercise of stock options 113 142 789 Proceeds from issuance of common stock — — 95 Net cash used in financing activities (8,271 ) (9,416 ) (10,690 ) Net decrease in cash and cash equivalents (3,057 ) (917 ) (5,409 ) Cash and cash equivalents at beginning of period 4,654 5,571 10,980 Cash and cash equivalents at end of period $ 1,597 $ 4,654 $ 5,571 |
Supplemental Cash Flow Inform53
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of supplemental disclosure of cash flow information | (dollars in thousands) For the Years ended December 31, 2017 2016 2015 Supplemental Schedule of Cash and Cash Equivalents: Cash and due from banks $ 28,594 $ 20,268 $ 19,352 Interest-bearing deposits in other banks 23,883 32,939 75,985 $ 52,477 $ 53,207 $ 95,337 Supplemental Disclosure of Cash Flow Information: Cash paid for: Interest on deposits and borrowed funds $ 7,240 $ 6,348 $ 5,836 Income taxes 7,653 6,477 3,090 Noncash investing and financing activities: Transfer of loans to other real estate owned 1,233 295 2,101 Unrealized loss on securities available for sale (777 ) (6,572 ) (2,652 ) Change in unfunded pension liability (234 ) 166 538 Non-cash transactions related to acquisitions: Investment securities — — 18,507 Restricted stock — — 587 Loans — — 115,960 Premises and equipment — — 956 Deferred income taxes — — 2,794 Core deposit intangible — — 1,839 Other real estate owned, net — — 168 Bank owned life insurance — — 1,955 Other assets — — 1,049 Liabilities assumed: Demand, MMDA, and savings deposits — — 82,451 Time deposits — — 54,872 Other liabilities — — 3,076 Consideration: Issuance of common stock — — 20,483 |
Accumulated Other Comprehensi54
Accumulated Other Comprehensive Income ("AOCI") (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Component of accumulated other comprehensive income (loss) | Changes in each component of accumulated other comprehensive income (loss) were as follows (dollars in thousands): Net Unrealized Gains (Losses) on Securities Adjustments Related to Pension Benefits Accumulated Other Comprehensive Income (Loss) Balance at Balance at December 31, 2014 $ 5,845 $ (2,181 ) $ 3,664 Net unrealized losses on securities available for sale, net of tax, $(626) (1,159 ) — (1,159 ) Reclassification adjustment for realized gains on securities, net of tax, $(303) (564 ) — (564 ) Change in unfunded pension liability, net of tax, $189 — 349 349 Balance at December 31, 2015 4,122 (1,832 ) 2,290 Net unrealized losses on securities available for sale, net of tax, $(2,007) (3,729 ) — (3,729 ) Reclassification adjustment for realized gains on securities, net of tax, $(293) (543 ) — (543 ) Change in unfunded pension liability, net of tax, $58 — 108 108 Balance at December 31, 2016 (150 ) (1,724 ) (1,874 ) Net unrealized gains on securities available for sale, net of tax, $12 23 — 23 Reclassification adjustment for realized gains on securities, net of tax, $(284) (528 ) — (528 ) Change in unfunded pension liability, net of tax, $(82) — (152 ) (152 ) Reclassification of stranded tax effects from tax rate change (141 ) (404 ) (545 ) Balance at December 31, 2017 $ (796 ) $ (2,280 ) $ (3,076 ) |
Reclassification out of accumulated other comprehensive income (loss) | The following table provides information regarding reclassifications out of accumulated other comprehensive income (loss) (dollars in thousands): Reclassifications Out of Accumulated Other Comprehensive Income (Loss) For the Three Years Ending December 31, 2017 Details about AOCI Components Amount Reclassified from AOCI Affected Line Item in the Statement of Where Net Income is Presented Years Ended December 31, 2017 2016 2015 Available for sale securities: Realized gain on sale of securities $ 812 $ 836 $ 867 Securities gains (losses), net (284 ) (293 ) (303 ) Income taxes $ 528 $ 543 $ 564 Net of tax Reclassification of stranded tax effects from tax rate change 141 — — * Employee benefit plans: Reclassification of stranded tax effects from tax rate change 404 — — * Total reclassifications $ 1,073 $ 543 $ 564 * Reclassification from AOCI to retained earnings for stranded tax effects resulting from the impact of the newly enacted federal corporate income tax rate on items included in AOCI. |
Summary of Significant Accoun55
Summary of Significant Accounting Policies (Details) | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2011trust | Dec. 31, 2017USD ($)acquisition | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jan. 01, 2015bank | Jul. 01, 2011bank | |
Interest-bearing Deposits in Other Banks [Abstract] | ||||||
Maturity period of interest bearing deposits in other banks | 1 year | |||||
Derivative Loan Commitments [Abstract] | ||||||
Derivative loan commitments income | $ 0 | $ 0 | $ 0 | |||
Period of time between issuance and sale of loan commitment, minimum | 30 days | |||||
Period of time between issuance and sale of loan commitment, maximum | 60 days | |||||
Loans [Abstract] | ||||||
Period to discontinued interest accrual on delinquent loans | 90 days | |||||
Past due period when loans are charged off | 120 days | |||||
Substandard and doubtful risk graded loan on unsecured basis | $ 100,000 | |||||
Troubled Debt Restructurings [Abstract] | ||||||
Loans classified as TDR | $ 1,306,000 | 2,670,000 | ||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Bank owned life insurance, number of acquisitions over the past decade | acquisition | 3 | |||||
Income Taxes [Abstract] | ||||||
Percentage of tax benefit that is being realized for settlement (in hundredths) | 50.00% | |||||
Unrecognized tax benefits | $ 0 | 0 | ||||
Advertising and Marketing Costs [Abstract] | ||||||
Advertising and marketing costs | 352,000 | 260,000 | 356,000 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Excess tax benefit attributable to ASU 2016-09 | $ 17,000 | $ 13,000 | ||||
Reclassification of stranded tax effects from tax rate change | $ (545,000) | |||||
Franklin Community Bank | ||||||
Business Acquisition [Line Items] | ||||||
Number of banking offices | bank | 3 | |||||
Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful lives | 3 years | |||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization period of intangible | 8 years | |||||
Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful lives | 39 years | |||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization period of intangible | 10 years | |||||
Software | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful lives | 3 years | |||||
MidCarolina | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization period of intangible | 108 months | |||||
MidCarolina | North Carolina | ||||||
Business Acquisition [Line Items] | ||||||
Number of branches added upon completion of acquisition | bank | 8 | |||||
MidCarolina | Delaware | ||||||
Business Acquisition [Line Items] | ||||||
Number of unconsolidated statutory trusts | trust | 2 | |||||
Accounting Standard Update 2018-02 | New Accounting Principles, Early Adoption | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reclassification of stranded tax effects from tax rate change | $ 545,000 |
Restrictions on Cash (Details)
Restrictions on Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents reserve requirement | $ 2,800 | $ 2,300 |
Federal Deposit Insurance Corporation deposit, in excess of insurance limits | $ 239 |
Securities - Amortized Cost and
Securities - Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | $ 322,345 | $ 346,733 |
Unrealized Gains | 2,620 | 3,899 |
Unrealized Losses | 3,628 | 4,130 |
Fair Value | 321,337 | 346,502 |
Federal agencies and GSEs | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 114,246 | 106,379 |
Unrealized Gains | 8 | 62 |
Unrealized Losses | 2,127 | 2,387 |
Fair Value | 112,127 | 104,054 |
Mortgage-backed and CMOs | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 106,163 | 79,917 |
Unrealized Gains | 293 | 514 |
Unrealized Losses | 1,140 | 938 |
Fair Value | 105,316 | 79,493 |
State and municipal | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 92,711 | 145,757 |
Unrealized Gains | 1,262 | 2,540 |
Unrealized Losses | 347 | 782 |
Fair Value | 93,626 | 147,515 |
Corporate | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 7,842 | 13,392 |
Unrealized Gains | 234 | 123 |
Unrealized Losses | 14 | 23 |
Fair Value | 8,062 | 13,492 |
Equity securities | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Amortized Cost | 1,383 | 1,288 |
Unrealized Gains | 823 | 660 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 2,206 | $ 1,948 |
Securities - Amortized Cost a58
Securities - Amortized Cost and Estimated Fair Value by Maturity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amortized Cost | |||
Due in one year or less | $ 11,540 | ||
Due after one year through five years | 102,806 | ||
Due after five years through ten years | 73,884 | ||
Due after ten years | 26,569 | ||
Amortized Cost | 322,345 | ||
Fair Value | |||
Due in one year or less | 11,549 | ||
Due after one year through five years | 102,982 | ||
Due after five years through ten years | 73,072 | ||
Due after ten years | 26,212 | ||
Fair Value | 321,337 | ||
Gross realized gains and losses [Abstract] | |||
Realized gains | 825 | $ 844 | $ 871 |
Realized losses | (13) | (8) | (4) |
Other-than-temporary impairment | 0 | $ 0 | $ 0 |
Mortgage-backed and CMOs | |||
Amortized Cost | |||
Mortgage-backed and CMOs | 106,163 | ||
Fair Value | |||
Mortgage-backed and CMOs | 105,316 | ||
Equity securities | |||
Amortized Cost | |||
Equity securities | 1,383 | ||
Fair Value | |||
Equity securities | $ 2,206 |
Securities - Narrative (Details
Securities - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)security | Dec. 31, 2016USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities pledged to secure public deposits, repurchase agreements and other | $ | $ 166,284,000 | $ 202,577,000 |
FHLB letters of credit used as additional collateral amount | $ | $ 190,700,000 | 130,700,000 |
Federal Home Loan Bank stock requirement, percentage of outstanding borrowings | 4.25% | |
Federal Reserve Bank stock, stock requirement, percentage of outstanding capital | 3.00% | |
Federal Reserve Bank stock, stock requirement, percentage subject to call | 3.00% | |
Federal Reserve Bank Stock | $ | $ 3,587,000 | 3,559,000 |
Investment in FHLB stock | $ | 2,523,000 | 2,665,000 |
Other-than-temporary impairment losses recognized | $ | $ 0 | $ 0 |
Federal agencies and GSEs | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of available for sale securities in unrealized loss positions | 24 | |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of available for sale securities in unrealized loss positions | 53 | |
Number of available for sale securities in unrealized loss positions for 12 months or more | 16 | |
Collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of available for sale securities in unrealized loss positions | 1 | |
State and municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of available for sale securities in unrealized loss positions | 50 | |
Corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of available for sale securities in unrealized loss positions | 2 |
Securities - Summary of Securit
Securities - Summary of Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value | ||
Fair Value | $ 226,018 | $ 197,475 |
Less than 12 Months, Fair Value | 137,860 | 195,789 |
12 Months or More, Fair Value | 88,158 | 1,686 |
Unrealized Loss | ||
Unrealized Loss | 3,628 | 4,130 |
Less than 12 Months, Unrealized Loss | 1,018 | 4,103 |
12 Months or More, Unrealized Loss | 2,610 | 27 |
Federal agencies and GSEs | ||
Fair Value | ||
Fair Value | 99,133 | 89,597 |
Less than 12 Months, Fair Value | 45,474 | 89,597 |
12 Months or More, Fair Value | 53,659 | 0 |
Unrealized Loss | ||
Unrealized Loss | 2,127 | 2,387 |
Less than 12 Months, Unrealized Loss | 321 | 2,387 |
12 Months or More, Unrealized Loss | 1,806 | 0 |
Mortgage-backed and CMOs | ||
Fair Value | ||
Fair Value | 90,806 | 57,762 |
Less than 12 Months, Fair Value | 64,449 | 56,076 |
12 Months or More, Fair Value | 26,357 | 1,686 |
Unrealized Loss | ||
Unrealized Loss | 1,140 | 938 |
Less than 12 Months, Unrealized Loss | 533 | 911 |
12 Months or More, Unrealized Loss | 607 | 27 |
State and municipal | ||
Fair Value | ||
Fair Value | 34,550 | 47,221 |
Less than 12 Months, Fair Value | 27,442 | 47,221 |
12 Months or More, Fair Value | 7,108 | 0 |
Unrealized Loss | ||
Unrealized Loss | 347 | 782 |
Less than 12 Months, Unrealized Loss | 159 | 782 |
12 Months or More, Unrealized Loss | 188 | 0 |
Corporate | ||
Fair Value | ||
Fair Value | 1,529 | 2,895 |
Less than 12 Months, Fair Value | 495 | 2,895 |
12 Months or More, Fair Value | 1,034 | 0 |
Unrealized Loss | ||
Unrealized Loss | 14 | 23 |
Less than 12 Months, Unrealized Loss | 5 | 23 |
12 Months or More, Unrealized Loss | $ 9 | $ 0 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 1,336,125 | $ 1,164,821 | |
Net deferred loan (fees) costs | 463 | (176) | |
Overdraft deposits | 114 | 128 | |
Outstanding principal balance and the carrying amount of loan acquired [Abstract] | |||
Outstanding principal balance | 79,523 | 104,172 | |
Carrying amount | 73,796 | 96,487 | |
Outstanding principal balance and the carrying amount of loan acquired, impaired [Abstract] | |||
Outstanding principal balance | 27,876 | 34,378 | |
Carrying amount | 23,430 | 28,669 | |
Changes in the accretable discount on acquired loans [Abstract] | |||
Balance at January 1 | 6,103 | 7,299 | $ 1,440 |
Additions from merger with MainStreet | 0 | 0 | 7,140 |
Accretion | (3,117) | (3,232) | (4,313) |
Reclassification from nonaccretable difference | 1,006 | 2,197 | 238 |
Other changes, net | 898 | (161) | 2,794 |
Balance at December 31 | 4,890 | 6,103 | $ 7,299 |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 251,666 | 208,717 | |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 760,848 | 625,218 | |
Commercial real estate | Construction and land development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 123,147 | 114,258 | |
Commercial real estate | Real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 637,701 | 510,960 | |
Residential real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 319,183 | 325,855 | |
Residential real estate | Real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 209,326 | 215,104 | |
Residential real estate | Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 109,857 | 110,751 | |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 4,428 | $ 5,031 |
Loans - Receivables Past Due (D
Loans - Receivables Past Due (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | $ 3,274 | $ 5,438 |
90 Days Past Due and Still Accruing | 359 | 587 |
Non- Accrual Loans | 2,201 | 2,965 |
Current | 1,332,851 | 1,159,383 |
Total Loans | 1,336,125 | 1,164,821 |
Commercial | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 182 | 69 |
90 Days Past Due and Still Accruing | 0 | 0 |
Non- Accrual Loans | 90 | 19 |
Current | 251,484 | 208,648 |
Total Loans | 251,666 | 208,717 |
Commercial real estate | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Loans | 760,848 | 625,218 |
Commercial real estate | Construction and land development | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 36 | 136 |
90 Days Past Due and Still Accruing | 0 | 0 |
Non- Accrual Loans | 36 | 64 |
Current | 123,111 | 114,122 |
Total Loans | 123,147 | 114,258 |
Commercial real estate | Real estate | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 855 | 1,239 |
90 Days Past Due and Still Accruing | 280 | 339 |
Non- Accrual Loans | 489 | 773 |
Current | 636,846 | 509,721 |
Total Loans | 637,701 | 510,960 |
Residential | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Loans | 319,183 | 325,855 |
Residential | Real estate | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 1,775 | 3,447 |
90 Days Past Due and Still Accruing | 79 | 248 |
Non- Accrual Loans | 1,343 | 1,802 |
Current | 207,551 | 211,657 |
Total Loans | 209,326 | 215,104 |
Residential | Home equity | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 400 | 518 |
90 Days Past Due and Still Accruing | 0 | 0 |
Non- Accrual Loans | 243 | 289 |
Current | 109,457 | 110,233 |
Total Loans | 109,857 | 110,751 |
Consumer | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 26 | 29 |
90 Days Past Due and Still Accruing | 0 | 0 |
Non- Accrual Loans | 0 | 18 |
Current | 4,402 | 5,002 |
Total Loans | 4,428 | 5,031 |
30- 59 Days Past Due | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 622 | 1,625 |
30- 59 Days Past Due | Commercial | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 92 | 50 |
30- 59 Days Past Due | Commercial real estate | Construction and land development | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 0 | 60 |
30- 59 Days Past Due | Commercial real estate | Real estate | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 86 | 0 |
30- 59 Days Past Due | Residential | Real estate | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 282 | 1,280 |
30- 59 Days Past Due | Residential | Home equity | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 141 | 229 |
30- 59 Days Past Due | Consumer | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 21 | 6 |
60-89 Days Past Due | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 92 | 261 |
60-89 Days Past Due | Commercial | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 Days Past Due | Commercial real estate | Construction and land development | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 0 | 12 |
60-89 Days Past Due | Commercial real estate | Real estate | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 0 | 127 |
60-89 Days Past Due | Residential | Real estate | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 71 | 117 |
60-89 Days Past Due | Residential | Home equity | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 16 | 0 |
60-89 Days Past Due | Consumer | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | $ 5 | $ 5 |
Loans - Impaired Loan (Details)
Loans - Impaired Loan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | $ 1,659 | $ 2,670 |
Impaired loan, with related allowance, recorded investment | 1,558 | 2,174 |
Impaired loan, total, recorded investment | 3,217 | 4,844 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 1,659 | 2,680 |
Impaired loan, with related allowance, unpaid principal balance | 1,553 | 2,174 |
Impaired loan, total, unpaid principal balance | 3,212 | 4,854 |
Impaired loan, total, related allowance | 167 | 23 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 1,834 | 2,100 |
Impaired loan, with related allowance, average recorded investment | 1,762 | 2,588 |
Impaired loan, total, average recorded investment | 3,596 | 4,688 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 123 | 180 |
Impaired loan, with related allowance, interest income recognized | 55 | 54 |
Impaired loan, total, interest income recognized | 178 | 234 |
Commercial | ||
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | 4 | 24 |
Impaired loan, with related allowance, recorded investment | 202 | 19 |
Impaired loan, total, recorded investment | 206 | 43 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 4 | 24 |
Impaired loan, with related allowance, unpaid principal balance | 201 | 19 |
Impaired loan, total, unpaid principal balance | 205 | 43 |
Impaired loan, total, related allowance | 154 | 0 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 19 | 12 |
Impaired loan, with related allowance, average recorded investment | 150 | 78 |
Impaired loan, total, average recorded investment | 169 | 90 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 1 | 2 |
Impaired loan, with related allowance, interest income recognized | 16 | 1 |
Impaired loan, total, interest income recognized | 17 | 3 |
Commercial real estate | Construction and land development | ||
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | 0 | 158 |
Impaired loan, with related allowance, recorded investment | 37 | 64 |
Impaired loan, total, recorded investment | 37 | 222 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 0 | 157 |
Impaired loan, with related allowance, unpaid principal balance | 37 | 65 |
Impaired loan, total, unpaid principal balance | 37 | 222 |
Impaired loan, total, related allowance | 0 | 0 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 56 | 198 |
Impaired loan, with related allowance, average recorded investment | 56 | 272 |
Impaired loan, total, average recorded investment | 112 | 470 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 4 | 16 |
Impaired loan, with related allowance, interest income recognized | 0 | 10 |
Impaired loan, total, interest income recognized | 4 | 26 |
Commercial real estate | Real estate | ||
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | 791 | 1,916 |
Impaired loan, with related allowance, recorded investment | 34 | 48 |
Impaired loan, total, recorded investment | 825 | 1,964 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 789 | 1,917 |
Impaired loan, with related allowance, unpaid principal balance | 32 | 48 |
Impaired loan, total, unpaid principal balance | 821 | 1,965 |
Impaired loan, total, related allowance | 0 | 0 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 1,069 | 1,409 |
Impaired loan, with related allowance, average recorded investment | 126 | 286 |
Impaired loan, total, average recorded investment | 1,195 | 1,695 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 66 | 107 |
Impaired loan, with related allowance, interest income recognized | 11 | 7 |
Impaired loan, total, interest income recognized | 77 | 114 |
Residential | Real estate | ||
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | 717 | 557 |
Impaired loan, with related allowance, recorded investment | 1,022 | 1,639 |
Impaired loan, total, recorded investment | 1,739 | 2,196 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 719 | 567 |
Impaired loan, with related allowance, unpaid principal balance | 1,022 | 1,639 |
Impaired loan, total, unpaid principal balance | 1,741 | 2,206 |
Impaired loan, total, related allowance | 12 | 22 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 575 | 318 |
Impaired loan, with related allowance, average recorded investment | 1,174 | 1,593 |
Impaired loan, total, average recorded investment | 1,749 | 1,911 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 41 | 38 |
Impaired loan, with related allowance, interest income recognized | 27 | 32 |
Impaired loan, total, interest income recognized | 68 | 70 |
Residential | Home equity | ||
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | 142 | 6 |
Impaired loan, with related allowance, recorded investment | 263 | 386 |
Impaired loan, total, recorded investment | 405 | 392 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 142 | 6 |
Impaired loan, with related allowance, unpaid principal balance | 261 | 385 |
Impaired loan, total, unpaid principal balance | 403 | 391 |
Impaired loan, total, related allowance | 1 | 1 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 109 | 153 |
Impaired loan, with related allowance, average recorded investment | 251 | 345 |
Impaired loan, total, average recorded investment | 360 | 498 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 10 | 16 |
Impaired loan, with related allowance, interest income recognized | 1 | 4 |
Impaired loan, total, interest income recognized | 11 | 20 |
Consumer | ||
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | 5 | 9 |
Impaired loan, with related allowance, recorded investment | 0 | 18 |
Impaired loan, total, recorded investment | 5 | 27 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 5 | 9 |
Impaired loan, with related allowance, unpaid principal balance | 0 | 18 |
Impaired loan, total, unpaid principal balance | 5 | 27 |
Impaired loan, total, related allowance | 0 | 0 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 6 | 10 |
Impaired loan, with related allowance, average recorded investment | 5 | 14 |
Impaired loan, total, average recorded investment | 11 | 24 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 1 | 1 |
Impaired loan, with related allowance, interest income recognized | 0 | 0 |
Impaired loan, total, interest income recognized | $ 1 | $ 1 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructuring (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)contract | Dec. 31, 2016USD ($)contract | Dec. 31, 2015USD ($)contract | |
Loans modified as troubled debt restructurings included in impaired loan balances [Abstract] | |||
Number of Contracts | contract | 8 | 8 | 8 |
Pre-Modification Outstanding Recorded Investment | $ 305 | $ 1,351 | $ 1,097 |
Post-Modification Outstanding Recorded Investment | 305 | $ 1,339 | $ 1,082 |
Number of loans that subsequently defaulted within 12 months of modification | contract | 0 | 0 | |
Type of Modification | 305 | $ 1,339 | $ 1,082 |
ALLL impact | 138 | 1 | $ 20 |
Loans in the process of foreclosure | 463 | ||
Residential OREO | $ 629 | $ 653 | |
Commercial | |||
Loans modified as troubled debt restructurings included in impaired loan balances [Abstract] | |||
Number of Contracts | contract | 5 | 2 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 212 | $ 24 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 212 | 24 | 0 |
Number of loans that subsequently defaulted within 12 months of modification | contract | 3 | ||
Loans that defaulted within twelve months of modification | $ 109,000 | ||
Type of Modification | 212 | 24 | 0 |
ALLL impact | $ 137 | $ 0 | $ 0 |
Commercial real estate | Real estate | |||
Loans modified as troubled debt restructurings included in impaired loan balances [Abstract] | |||
Number of Contracts | contract | 0 | 2 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 1,005 | $ 394 |
Post-Modification Outstanding Recorded Investment | 0 | 1,003 | 394 |
Type of Modification | 0 | 1,003 | 394 |
ALLL impact | $ 0 | $ 0 | $ 0 |
Residential | Real estate | |||
Loans modified as troubled debt restructurings included in impaired loan balances [Abstract] | |||
Number of Contracts | contract | 1 | 4 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 36 | $ 322 | $ 596 |
Post-Modification Outstanding Recorded Investment | $ 36 | 312 | 583 |
Number of loans that subsequently defaulted within 12 months of modification | contract | 1 | ||
Loans that defaulted within twelve months of modification | $ 143,000 | ||
Type of Modification | 36 | 312 | 583 |
ALLL impact | $ 0 | $ 1 | $ 19 |
Residential | Home equity | |||
Loans modified as troubled debt restructurings included in impaired loan balances [Abstract] | |||
Number of Contracts | contract | 2 | 0 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 57 | $ 0 | $ 107 |
Post-Modification Outstanding Recorded Investment | 57 | 0 | 105 |
Type of Modification | 57 | 0 | 105 |
ALLL impact | $ 1 | $ 0 | $ 1 |
Consumer | |||
Loans modified as troubled debt restructurings included in impaired loan balances [Abstract] | |||
Number of Contracts | contract | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 |
Type of Modification | 0 | 0 | 0 |
ALLL impact | 0 | 0 | 0 |
Rate | |||
Loans modified as troubled debt restructurings included in impaired loan balances [Abstract] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 105 |
Type of Modification | 0 | 0 | 105 |
Rate | Commercial | |||
Loans modified as troubled debt restructurings included in impaired loan balances [Abstract] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 |
Type of Modification | 0 | 0 | 0 |
Rate | Commercial real estate | Real estate | |||
Loans modified as troubled debt restructurings included in impaired loan balances [Abstract] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 |
Type of Modification | 0 | 0 | 0 |
Rate | Residential | Real estate | |||
Loans modified as troubled debt restructurings included in impaired loan balances [Abstract] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 |
Type of Modification | 0 | 0 | 0 |
Rate | Residential | Home equity | |||
Loans modified as troubled debt restructurings included in impaired loan balances [Abstract] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 105 |
Type of Modification | 0 | 0 | 105 |
Rate | Consumer | |||
Loans modified as troubled debt restructurings included in impaired loan balances [Abstract] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 |
Type of Modification | 0 | 0 | 0 |
Structure | |||
Loans modified as troubled debt restructurings included in impaired loan balances [Abstract] | |||
Post-Modification Outstanding Recorded Investment | 305 | 1,339 | 977 |
Type of Modification | 305 | 1,339 | 977 |
Structure | Commercial | |||
Loans modified as troubled debt restructurings included in impaired loan balances [Abstract] | |||
Post-Modification Outstanding Recorded Investment | 212 | 24 | 0 |
Type of Modification | 212 | 24 | 0 |
Structure | Commercial real estate | Real estate | |||
Loans modified as troubled debt restructurings included in impaired loan balances [Abstract] | |||
Post-Modification Outstanding Recorded Investment | 0 | 1,003 | 394 |
Type of Modification | 0 | 1,003 | 394 |
Structure | Residential | Real estate | |||
Loans modified as troubled debt restructurings included in impaired loan balances [Abstract] | |||
Post-Modification Outstanding Recorded Investment | 36 | 312 | 583 |
Type of Modification | 36 | 312 | 583 |
Structure | Residential | Home equity | |||
Loans modified as troubled debt restructurings included in impaired loan balances [Abstract] | |||
Post-Modification Outstanding Recorded Investment | 57 | 0 | 0 |
Type of Modification | 57 | 0 | 0 |
Structure | Consumer | |||
Loans modified as troubled debt restructurings included in impaired loan balances [Abstract] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 |
Type of Modification | $ 0 | $ 0 | $ 0 |
Loans - Credit exposure (Detail
Loans - Credit exposure (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 1,336,125 | $ 1,164,821 |
Threshold limit to consider loan as nonperforming | 90 days | |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 251,666 | 208,717 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 760,848 | 625,218 |
Commercial real estate | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 123,147 | 114,258 |
Commercial real estate | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 637,701 | 510,960 |
Commercial real estate | Real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 637,701 | 510,960 |
Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 319,183 | 325,855 |
Residential | Real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 209,326 | 215,104 |
Residential | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 109,857 | 110,751 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 4,428 | 5,031 |
Consumer | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 4,415 | 5,003 |
Consumer | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 13 | 28 |
Pass | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 248,714 | 208,098 |
Pass | Commercial real estate | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 114,502 | 112,729 |
Pass | Commercial real estate | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 625,861 | 501,081 |
Pass | Residential | Real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 200,405 | 199,278 |
Pass | Residential | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 107,705 | 108,799 |
Special Mention | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,763 | 592 |
Special Mention | Commercial real estate | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 7,114 | 902 |
Special Mention | Commercial real estate | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 6,914 | 4,859 |
Special Mention | Residential | Real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 4,438 | 10,600 |
Special Mention | Residential | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,325 | 1,257 |
Substandard | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,189 | 27 |
Substandard | Commercial real estate | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,531 | 627 |
Substandard | Commercial real estate | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 4,926 | 5,020 |
Substandard | Residential | Real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 4,483 | 5,226 |
Substandard | Residential | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 827 | 695 |
Doubtful | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Commercial real estate | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Commercial real estate | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Residential | Real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Residential | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 0 | $ 0 |
Allowance for Loan Losses and66
Allowance for Loan Losses and Reserve for Unfunded Lending Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Loan Losses | |||
Balance, beginning of year | $ 12,801 | $ 12,601 | $ 12,427 |
Provision for loan losses | 1,016 | 250 | 950 |
Charge-offs | (690) | (326) | (1,200) |
Recoveries | 476 | 276 | 424 |
Balance, end of year | 13,603 | 12,801 | 12,601 |
Reserve for Unfunded Lending Commitments | |||
Balance, beginning of year | 203 | 184 | 163 |
Provision for unfunded commitments | 3 | 19 | 21 |
Charge-offs | 0 | 0 | 0 |
Balance, end of year | $ 206 | $ 203 | $ 184 |
Allowance for Loan Losses and67
Allowance for Loan Losses and Reserve for Unfunded Lending Commitments - Allowance by Portfolio Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Loan Losses | |||||
Balance, beginning of year | $ 12,801 | $ 12,601 | $ 12,427 | ||
Charge-offs | (690) | (326) | (1,200) | ||
Recoveries | 476 | 276 | 424 | ||
Provision | 1,016 | 250 | 950 | ||
Balance, end of year | 13,603 | 12,801 | 12,601 | ||
Allowance for Loan Losses | |||||
Individually evaluated for impairment | $ 167 | $ 23 | |||
Collectively evaluated for impairment | 13,151 | 12,429 | |||
Total | 12,801 | 12,601 | 12,427 | 13,603 | 12,801 |
Loans | |||||
Individually evaluated for impairment | 3,217 | 4,844 | |||
Collectively evaluated for impairment | 1,309,478 | 1,131,308 | |||
Loans, net of unearned income | 1,336,125 | 1,164,821 | |||
Receivables Acquired with Deteriorated Credit Quality | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 349 | ||||
Balance, end of year | 285 | 349 | |||
Allowance for Loan Losses | |||||
Total | 349 | 349 | 285 | 349 | |
Loans | |||||
Loans, net of unearned income | 23,430 | 28,669 | |||
Commercial | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 2,095 | 2,065 | |||
Charge-offs | (282) | (40) | |||
Recoveries | 223 | 40 | |||
Provision | 377 | 30 | |||
Balance, end of year | 2,413 | 2,095 | 2,065 | ||
Allowance for Loan Losses | |||||
Individually evaluated for impairment | 154 | 0 | |||
Collectively evaluated for impairment | 2,259 | 2,087 | |||
Total | 2,095 | 2,065 | 2,065 | 2,413 | 2,095 |
Loans | |||||
Individually evaluated for impairment | 206 | 43 | |||
Collectively evaluated for impairment | 251,185 | 208,258 | |||
Loans, net of unearned income | 251,666 | 208,717 | |||
Commercial | Receivables Acquired with Deteriorated Credit Quality | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 8 | ||||
Balance, end of year | 0 | 8 | |||
Allowance for Loan Losses | |||||
Total | 8 | 8 | 0 | 8 | |
Loans | |||||
Loans, net of unearned income | 275 | 416 | |||
Commercial real estate | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 7,355 | 6,930 | |||
Charge-offs | (93) | (10) | |||
Recoveries | 60 | 32 | |||
Provision | 999 | 403 | |||
Balance, end of year | 8,321 | 7,355 | 6,930 | ||
Allowance for Loan Losses | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 8,203 | 7,248 | |||
Total | 7,355 | 6,930 | 6,930 | 8,321 | 7,355 |
Loans | |||||
Individually evaluated for impairment | 862 | 2,186 | |||
Collectively evaluated for impairment | 747,819 | 610,462 | |||
Loans, net of unearned income | 760,848 | 625,218 | |||
Commercial real estate | Receivables Acquired with Deteriorated Credit Quality | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 107 | ||||
Balance, end of year | 118 | 107 | |||
Allowance for Loan Losses | |||||
Total | 107 | 107 | 118 | 107 | |
Loans | |||||
Loans, net of unearned income | 12,167 | 12,570 | |||
Residential real estate | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 3,303 | 3,546 | |||
Charge-offs | (172) | (87) | |||
Recoveries | 85 | 68 | |||
Provision | (391) | (224) | |||
Balance, end of year | 2,825 | 3,303 | 3,546 | ||
Allowance for Loan Losses | |||||
Individually evaluated for impairment | 13 | 23 | |||
Collectively evaluated for impairment | 2,645 | 3,046 | |||
Total | 3,303 | 3,546 | 3,546 | 2,825 | 3,303 |
Loans | |||||
Individually evaluated for impairment | 2,144 | 2,588 | |||
Collectively evaluated for impairment | 306,066 | 307,600 | |||
Loans, net of unearned income | 319,183 | 325,855 | |||
Residential real estate | Receivables Acquired with Deteriorated Credit Quality | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 234 | ||||
Balance, end of year | 167 | 234 | |||
Allowance for Loan Losses | |||||
Total | 234 | 234 | 167 | 234 | |
Loans | |||||
Loans, net of unearned income | 10,973 | 15,667 | |||
Consumer | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 48 | 60 | |||
Charge-offs | (143) | (189) | |||
Recoveries | 108 | 136 | |||
Provision | 31 | 41 | |||
Balance, end of year | 44 | 48 | 60 | ||
Allowance for Loan Losses | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 44 | 48 | |||
Total | 48 | 60 | 60 | 44 | 48 |
Loans | |||||
Individually evaluated for impairment | 5 | 27 | |||
Collectively evaluated for impairment | 4,408 | 4,988 | |||
Loans, net of unearned income | 4,428 | 5,031 | |||
Consumer | Receivables Acquired with Deteriorated Credit Quality | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 0 | ||||
Balance, end of year | 0 | 0 | |||
Allowance for Loan Losses | |||||
Total | 0 | 0 | 0 | 0 | |
Loans | |||||
Loans, net of unearned income | 15 | 16 | |||
Unallocated | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 0 | 0 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provision | 0 | 0 | |||
Balance, end of year | 0 | 0 | 0 | ||
Allowance for Loan Losses | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 0 | 0 | |||
Total | 0 | 0 | $ 0 | 0 | 0 |
Loans | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 0 | 0 | |||
Loans, net of unearned income | 0 | 0 | |||
Unallocated | Receivables Acquired with Deteriorated Credit Quality | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 0 | ||||
Balance, end of year | 0 | 0 | |||
Allowance for Loan Losses | |||||
Total | $ 0 | $ 0 | 0 | 0 | |
Loans | |||||
Loans, net of unearned income | $ 0 | $ 0 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Major classifications of premises and equipment [Abstract] | ||
Premises and equipment, gross | $ 51,954 | $ 49,957 |
Accumulated depreciation | (26,053) | (24,518) |
Premises and equipment, net | 25,901 | 25,439 |
Land | ||
Major classifications of premises and equipment [Abstract] | ||
Premises and equipment, gross | 6,583 | 6,891 |
Buildings | ||
Major classifications of premises and equipment [Abstract] | ||
Premises and equipment, gross | 26,713 | 25,616 |
Leasehold improvements | ||
Major classifications of premises and equipment [Abstract] | ||
Premises and equipment, gross | 981 | 1,078 |
Furniture and equipment | ||
Major classifications of premises and equipment [Abstract] | ||
Premises and equipment, gross | $ 17,677 | $ 16,372 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 1,877 | $ 1,892 | $ 1,833 |
Rent expense | $ 961 | $ 897 | $ 990 |
Premises and Equipment - Minimu
Premises and Equipment - Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,018 | $ 726 |
2,019 | 215 |
2,020 | 36 |
2,021 | 13 |
2,022 | 7 |
2023 and after | 15 |
Future minimum payments due | $ 1,012 |
Goodwill and Other Intangible71
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2011 | Apr. 30, 2006 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense | $ 528 | $ 964 | $ 1,201 | ||
Community First | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Core deposit intangible | $ 3,112 | ||||
Amortization period of intangible | 99 months | ||||
MidCarolina | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Core deposit intangible | $ 6,556 | ||||
Amortization period of intangible | 108 months | ||||
MainStreet BankShares, Inc. | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Core deposit intangible | $ 1,839 | ||||
Amortization period of intangible | 120 months |
Goodwill and Other Intangible72
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill | |||
Goodwill, beginning | $ 43,872 | $ 43,872 | |
Amortization | 0 | ||
Goodwill, ending | 43,872 | 43,872 | $ 43,872 |
Intangibles | |||
Intangibles, beginning | 1,719 | ||
Amortization | (528) | (964) | $ (1,201) |
Intangibles, ending | $ 1,191 | $ 1,719 |
Goodwill and Other Intangible73
Goodwill and Other Intangible Assets - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Gross carrying value, core deposit intangibles | $ 11,508 | $ 11,508 | |
Accumulated amortization, core deposit intangibles | (10,317) | (9,789) | |
Net carrying value, core deposit intangibles | 1,191 | 1,719 | |
Gross carrying value, goodwill | 43,872 | 43,872 | |
Accumulated amortization, goodwill | 0 | 0 | |
Net carrying value, goodwill | $ 43,872 | $ 43,872 | $ 43,872 |
Goodwill and Other Intangible74
Goodwill and Other Intangible Assets - Estimated Future Amortization Expense of Core Deposit Intangibles (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,018 | $ 265 | |
2,019 | 219 | |
2,020 | 207 | |
2,021 | 197 | |
2,022 | 155 | |
2023 and after | 148 | |
Total | $ 1,191 | $ 1,719 |
Deposits (Details)
Deposits (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits [Abstract] | ||
Aggregate amount of time deposits, $250,000 or More | $ 162,781,000 | $ 142,527,000 |
Scheduled maturities of certificates of deposits [Abstract] | ||
2,018 | 157,040,000 | |
2,019 | 46,070,000 | |
2,020 | 33,711,000 | |
2,021 | 88,504,000 | |
2,022 | 52,319,000 | |
2023 and after | 6,014,000 | |
Time Deposits | 383,658,000 | |
Brokered time deposits | 0 | 0 |
Time deposits through CDARs program | $ 25,838,000 | $ 23,445,000 |
Short-term Borrowings (Details)
Short-term Borrowings (Details) | Dec. 31, 2017USD ($)bank | Dec. 31, 2016USD ($) |
Short-term Debt [Abstract] | ||
Federal funds line of credit, number of banks | bank | 2 | |
Federal funds line of credit, amount per agreement | $ 15,000,000 | |
Customer repurchase agreements | 10,726,000 | $ 39,166,000 |
Other short-term borrowings | 24,000,000 | 20,000,000 |
Short-term borrowings | $ 34,726,000 | $ 59,166,000 |
Customer repurchase agreements, weighted average rate | 0.01% | 0.01% |
Short-term borrowings, weighted average rate | 1.59% | 0.80% |
Long-term Borrowings (Details)
Long-term Borrowings (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | ||
Percentage of entity's assets equal to line of credit facility (in hundredths) | 30.00% | |
Collateral pledged under blanket floating lien agreement | $ 511,621,000 | |
Long term advances with federal home loan bank [Abstract] | ||
Advance Amount | 0 | $ 9,980,000 |
Public deposit accounts | 265,543,000 | |
November 30, 2017 | ||
Long term advances with federal home loan bank [Abstract] | ||
Advance Amount | $ 9,980,000 | |
November 30, 2017 | Weighted Average | ||
Long term advances with federal home loan bank [Abstract] | ||
Weighted Average Rate | 2.98% | |
Federal Home Loan Bank Advances | ||
Long term advances with federal home loan bank [Abstract] | ||
Collateral for deposits | 190,700,000 | |
US government and agency securities | ||
Long term advances with federal home loan bank [Abstract] | ||
Collateral for deposits | $ 114,183,000 |
Junior Subordinated Debt (Detai
Junior Subordinated Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2011 | Apr. 07, 2006 | Dec. 31, 2017 | Jul. 01, 2011 |
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 for deferral of distributions on Trust Preferred Securities | 5 years | |||
Proceeds from issuance of common securities | $ 619 | |||
Junior subordinated debenture | $ 20,619 | |||
Mid Carolina Trust | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Junior subordinated debenture | $ 8,764 | |||
Equity method investments | $ 264 | |||
AMNB Trust I | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Equity method investments | $ 619 | |||
Trust Preferred Securities | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Fixed interest rate of trust preferred securities | 6.66% | |||
Trust preferred securities, basis spread on variable rate | 1.35% |
Junior Subordinated Debt - Outs
Junior Subordinated Debt - Outstanding Payables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2011 | Jul. 01, 2011 | |
Debt Instrument [Line Items] | ||||
Principal Amount | $ 20,619 | |||
MidCarolina Trust I | ||||
Debt Instrument [Line Items] | ||||
Fair value marks associated with junior subordinated debenture | $ 833 | $ 1,197 | ||
MidCarolina Trust II | ||||
Debt Instrument [Line Items] | ||||
Fair value marks associated with junior subordinated debenture | 724 | $ 1,021 | ||
Junior Subordinated Debt Securities | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 27,826 | $ 27,724 | ||
Junior Subordinated Debt Securities | AMNB Trust I | ||||
Debt Instrument [Line Items] | ||||
Date Issued | Apr. 7, 2006 | |||
Maturity Date | Jun. 30, 2036 | |||
Principal Amount | $ 20,619 | $ 20,619 | ||
Junior Subordinated Debt Securities | AMNB Trust I | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis Spread on Variable Rate | 1.35% | 1.35% | ||
Junior Subordinated Debt Securities | MidCarolina Trust I | ||||
Debt Instrument [Line Items] | ||||
Date Issued | Oct. 29, 2002 | |||
Maturity Date | Nov. 7, 2032 | |||
Principal Amount | $ 4,322 | $ 4,265 | ||
Junior Subordinated Debt Securities | MidCarolina Trust I | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis Spread on Variable Rate | 3.45% | 3.45% | ||
Junior Subordinated Debt Securities | MidCarolina Trust II | ||||
Debt Instrument [Line Items] | ||||
Date Issued | Dec. 3, 2003 | |||
Maturity Date | Oct. 7, 2033 | |||
Principal Amount | $ 2,885 | $ 2,840 | ||
Junior Subordinated Debt Securities | MidCarolina Trust II | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis Spread on Variable Rate | 2.95% | 2.95% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($)directorshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Apr. 22, 2008shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of common stock authorizes for issuance (in shares) | shares | 500,000 | |||
Total proceeds of the in-the-money options exercised | $ 113,000 | $ 142,000 | $ 789,000 | |
Total intrinsic value of options exercised | 287,000 | 11,000 | 220,000 | |
Unrecognized compensation expense | 0 | 0 | 0 | |
Compensation expense related to stock options | $ 0 | $ 0 | $ 0 | |
Stock options granted during period (in shares) | shares | 0 | 0 | 0 | |
Regular monthly board retainer, cash | $ 5,800 | |||
Regular monthly board retainer, market value of restricted stock | 6,250 | |||
Monthly meeting fees a director could receive in cash | 725 | |||
Monthly meeting fees a director could receive if restricted stock vested | $ 900 | |||
Number of directors elected to receive stock in lieu of cash | director | 11 | |||
Number of outside directors | director | 13 | |||
Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issued as payment for deferred compensation (in shares) | shares | 4,158 | |||
Market value of shares issued as payment of deferred compensation | $ 95,000 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum vesting period of granted restricted stock | 36 months | |||
Unrecognized compensation cost | $ 538,000 | $ 568,000 | 340,000 | |
Share based compensation expense | $ 532,000 | $ 444,000 | $ 322,000 | |
Number of shares issued (in shares) | shares | 13,093 | 13,166 | 11,228 | |
Recognized share based compensation expense | $ 484,000 | $ 380,000 | $ 275,000 | |
Restricted Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average period for recognition of unrecognized compensation cost | 12 months | |||
Restricted Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average period for recognition of unrecognized compensation cost | 36 months |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Option Shares | |||
Outstanding at beginning of period (in shares) | 58,411 | ||
Replacement stock options (in shares) | 0 | ||
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (4,950) | (5,784) | (42,680) |
Forfeited (in shares) | (578) | ||
Expired (in shares) | (1,898) | ||
Outstanding at end of period (in shares) | 50,985 | 58,411 | |
Exercisable at end of period (in shares) | 50,985 | ||
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 24.37 | ||
Replacement stock options (in dollars per share) | 0 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 22.93 | ||
Forfeited (in dollars per share) | 23.33 | ||
Expired (in dollars per share) | 36.08 | ||
Outstanding at end of period (in dollars per share) | 24.09 | $ 24.37 | |
Exercisable at end of period (in dollars per share) | $ 24.09 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding at end of period | 8 months 45 days | ||
Exercisable at end of period | 8 months 45 days | ||
Aggregate Intrinsic Value | |||
Outstanding at end of period | $ 725 | ||
Exercisable at end of period | $ 725 |
Stock-Based Compensation - Su82
Stock-Based Compensation - Summary of Options Outstanding and Exercisable by Price Range (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Outstanding Options (in shares) | shares | 50,985 |
Weighted- Average Remaining Contractual Life | 8 months 45 days |
Weighted- Average Exercise Price (in dollars per share) | $ 24.09 |
$20.00 to $25.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, minimum (in dollars per share) | 20 |
Exercise price range, maximum (in dollars per share) | $ 25 |
Number of Outstanding Options (in shares) | shares | 27,060 |
Weighted- Average Remaining Contractual Life | 1 year 15 days |
Weighted- Average Exercise Price (in dollars per share) | $ 22.10 |
$25.01 to $30.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, minimum (in dollars per share) | 25.01 |
Exercise price range, maximum (in dollars per share) | $ 30 |
Number of Outstanding Options (in shares) | shares | 22,275 |
Weighted- Average Remaining Contractual Life | 5 months 50 days |
Weighted- Average Exercise Price (in dollars per share) | $ 25.82 |
$30.01 to $41.67 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, minimum (in dollars per share) | 30.01 |
Exercise price range, maximum (in dollars per share) | $ 41.67 |
Number of Outstanding Options (in shares) | shares | 1,650 |
Weighted- Average Remaining Contractual Life | 5 days |
Weighted- Average Exercise Price (in dollars per share) | $ 33.33 |
Stock-Based Compensation - Su83
Stock-Based Compensation - Summary of Restricted Stock (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Shares | |
Nonvested at beginning of period (in shares) | shares | 50,822 |
Granted (in shares) | shares | 14,453 |
Vested (in shares) | shares | (18,774) |
Forfeited (in shares) | shares | 0 |
Nonvested at end of period (in shares) | shares | 46,501 |
Weighted Average Grant Date Value | |
Nonvested at beginning of period (in dollars per share) | $ / shares | $ 23.21 |
Granted (in dollars per share) | $ / shares | 34.74 |
Vested (in dollars per share) | $ / shares | 24.49 |
Forfeited (in dollars per share) | $ / shares | 0 |
Nonvested at end of period (in dollars per share) | $ / shares | $ 26.28 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for loan losses | $ 3,047 | $ 4,480 |
Nonaccrual loan interest | 444 | 610 |
Other real estate owned valuation allowance | 150 | 199 |
Deferred compensation | 835 | 1,335 |
Net unrealized losses on securities | 226 | 81 |
Acquisition accounting adjustments | 1,283 | 3,215 |
Accrued pension liability | 170 | 100 |
Other | 488 | 796 |
Total deferred tax assets | 6,643 | 10,816 |
Deferred tax liabilities: | ||
Depreciation | 761 | 1,030 |
Accretion of discounts on securities | 24 | 113 |
Core deposit intangibles | 267 | 602 |
Trust preferred fair value adjustment | 349 | 581 |
Other | 201 | 243 |
Total deferred tax liabilities | 1,602 | 2,569 |
Net deferred tax assets | $ 5,041 | $ 8,247 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Current tax expense | $ 7,355 | $ 6,125 | $ 4,279 |
Deferred tax expense | 724 | 882 | 1,741 |
Deferred tax asset adjustment for tax rate change | 2,747 | 0 | 0 |
Total income tax expense | $ 10,826 | $ 7,007 | $ 6,020 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Expected federal tax expense | $ 9,126 | $ 8,158 | $ 7,371 |
Tax impact from enacted change in tax rate | 2,747 | 0 | 0 |
Nondeductible interest expense | 85 | 94 | 78 |
Tax-exempt interest | (949) | (1,265) | (1,338) |
State income taxes | 296 | 296 | 222 |
Other, net | (479) | (276) | (313) |
Total income tax expense | 10,826 | 7,007 | 6,020 |
Downward adjustment of net deferred tax assets | $ 2,747 | $ 0 | $ 0 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | |||
Basic earnings per share (in shares) | 8,641,717 | 8,611,507 | 8,680,502 |
Effect of dilutive securities - stock options (in shares) | 18,911 | 9,734 | 7,948 |
Diluted earnings per share (in shares) | 8,660,628 | 8,621,241 | 8,688,450 |
Per Share Amount | |||
Basic earnings per share (in dollars per share) | $ 1.76 | $ 1.89 | $ 1.73 |
Effect of dilutive securities - stock options (in dollars per share) | 0 | 0 | 0 |
Diluted earnings per share (in dollars per share) | $ 1.76 | $ 1.89 | $ 1.73 |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock options on common stock not included in computing diluted earnings per share (in shares) | 330 | 11,397 | 66,238 |
Off-Balance Sheet Activities (D
Off-Balance Sheet Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loan repurchase requirement, number of days past due | 90 days | |
Loan repurchase requirement, number of days following sale | 180 days | |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instruments outstanding | $ 341,760 | $ 345,803 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instruments outstanding | 13,647 | 4,088 |
Mortgage loan rate lock commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instruments outstanding | 5,089 | $ 12,839 |
Loans held for sale | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instruments outstanding | $ 1,639 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |||
Loans restructured | $ 0 | $ 0 | $ 0 |
Loans past due | 0 | 0 | 0 |
Loans on non-accrual status | 0 | 0 | $ 0 |
Activity of loans to related parties [Roll Forward] | |||
Balance at December 31, 2016 | 22,078,000 | ||
Additions | 24,265,000 | ||
Repayments | (20,589,000) | ||
Reclassifications | (11,533,000) | ||
Balance at December 31, 2017 | 14,221,000 | 22,078,000 | |
Related party deposits | $ 22,077,000 | $ 22,121,000 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)agreement | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan with individual requisite age | 21 years | ||
Defined benefit plan with individual requisite service period | 1 year | ||
Accumulated benefit obligation | $ 8,313,000 | $ 7,932,000 | $ 8,453,000 |
Maximum percentage of limiting equities | 5.00% | ||
Employer matching contribution, service requirement | 1 year | ||
Employee benefits expense | $ 763,000 | 623,000 | 602,000 |
Period of deferred compensation agreements | 10 years | ||
Number of remaining agreements | agreement | 1 | ||
Deferred compensation liability | $ 350,000 | 397,000 | |
Deferred compensation arrangement expense | 3,000 | 6,000 | 8,000 |
Profit sharing and incentive arrangements expense | 1,243,000 | $ 916,000 | $ 559,000 |
Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred compensation arrangement annual payments | 25,000 | ||
Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred compensation arrangement annual payments | $ 50,000 |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Benefit Plan Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in Benefit Obligation: | |||
Projected benefit obligation at beginning of year | $ 7,932 | $ 8,453 | $ 10,710 |
Service cost | 0 | 0 | 0 |
Interest cost | 237 | 269 | 297 |
Actuarial (gain) loss | 611 | 352 | (100) |
Settlement gain | (3) | (51) | 0 |
Benefits paid | (464) | (1,091) | (2,454) |
Projected benefit obligation at end of year | 8,313 | 7,932 | 8,453 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 7,647 | 8,428 | 10,949 |
Actual return on plan assets | 373 | 310 | (67) |
Benefits paid | (464) | (1,091) | (2,454) |
Fair value of plan assets at end of year | 7,556 | 7,647 | 8,428 |
Funded Status at End of Year | (757) | (285) | (25) |
Amounts Recognized in the Consolidated Balance Sheets | |||
Other liabilities | (757) | (285) | (25) |
Amounts Recognized in Accumulated Other Comprehensive Loss | |||
Net actuarial loss | 2,886 | 2,652 | 2,818 |
Deferred income taxes | (606) | (928) | (986) |
Amount recognized | 2,280 | 1,724 | 1,832 |
Components of Net Periodic Benefit Cost | |||
Service cost | 0 | 0 | 0 |
Interest cost | 237 | 269 | 297 |
Expected return on plan assets | (353) | (385) | (459) |
Recognized net loss due to settlement | 135 | 315 | 671 |
Recognized net actuarial loss | 218 | 228 | 293 |
Net periodic benefit cost | $ 237 | $ 427 | $ 802 |
Employee Benefit Plans - Other
Employee Benefit Plans - Other Plan Changes Recognized in Other Comprehensive (Income) Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan [Abstract] | |||
Net actuarial (gain) loss | $ 234 | $ (166) | $ (538) |
Amortization of prior service cost | 0 | 0 | 0 |
Total recognized in other comprehensive (income) loss | 234 | (166) | (538) |
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive (Income) Loss | $ 471 | $ 261 | $ 264 |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted-average Asset Allocation by Asset Category (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Actual asset allocations | 100.00% | 100.00% |
Fixed Income | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Actual asset allocations | 61.70% | 51.30% |
Equity | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Actual asset allocations | 29.50% | 38.00% |
Cash and Accrued Income | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Actual asset allocations | 8.80% | 10.70% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Pension Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 7,556 | $ 7,647 | $ 8,428 | $ 10,949 |
Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 2,853 | 3,725 | ||
Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 4,703 | 3,922 | ||
Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Cash | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 617 | 780 | ||
Cash | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 617 | 780 | ||
Cash | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Cash | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Government sponsored entities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,892 | 1,496 | ||
Government sponsored entities | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Government sponsored entities | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,892 | 1,496 | ||
Government sponsored entities | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Municipal bonds and notes | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,931 | 1,453 | ||
Municipal bonds and notes | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Municipal bonds and notes | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,931 | 1,453 | ||
Municipal bonds and notes | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Corporate bonds and notes | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 880 | 973 | ||
Corporate bonds and notes | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Corporate bonds and notes | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 880 | 973 | ||
Corporate bonds and notes | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. companies | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,768 | 2,505 | ||
U.S. companies | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,768 | 2,505 | ||
U.S. companies | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. companies | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign companies | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 468 | 440 | ||
Foreign companies | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 468 | 440 | ||
Foreign companies | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign companies | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans - Projec
Employee Benefit Plans - Projected Benefit Payments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2,018 | $ 1,248 |
2,019 | 894 |
2,020 | 457 |
2,021 | 673 |
2,022 | 617 |
2023-2026 | $ 3,519 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | $ 321,337 | $ 346,502 |
Federal agencies and GSEs | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 112,127 | 104,054 |
Mortgage-backed and CMOs | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 105,316 | 79,493 |
State and municipal | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 93,626 | 147,515 |
Corporate | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 8,062 | 13,492 |
Equity securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 2,206 | 1,948 |
Level 1 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 0 | 0 |
Level 2 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 321,337 | 346,502 |
Level 3 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 0 | 0 |
Recurring | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 321,337 | 346,502 |
Recurring | Federal agencies and GSEs | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 112,127 | 104,054 |
Recurring | Mortgage-backed and CMOs | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 105,316 | 79,493 |
Recurring | State and municipal | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 93,626 | 147,515 |
Recurring | Corporate | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 8,062 | 13,492 |
Recurring | Equity securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 2,206 | 1,948 |
Recurring | Level 1 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 0 | 0 |
Recurring | Level 1 | Federal agencies and GSEs | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 0 | 0 |
Recurring | Level 1 | Mortgage-backed and CMOs | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 0 | 0 |
Recurring | Level 1 | State and municipal | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 0 | 0 |
Recurring | Level 1 | Corporate | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 0 | 0 |
Recurring | Level 1 | Equity securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 0 | 0 |
Recurring | Level 2 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 321,337 | 346,502 |
Recurring | Level 2 | Federal agencies and GSEs | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 112,127 | 104,054 |
Recurring | Level 2 | Mortgage-backed and CMOs | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 105,316 | 79,493 |
Recurring | Level 2 | State and municipal | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 93,626 | 147,515 |
Recurring | Level 2 | Corporate | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 8,062 | 13,492 |
Recurring | Level 2 | Equity securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 2,206 | 1,948 |
Recurring | Level 3 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 0 | 0 |
Recurring | Level 3 | Federal agencies and GSEs | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 0 | 0 |
Recurring | Level 3 | Mortgage-backed and CMOs | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 0 | 0 |
Recurring | Level 3 | State and municipal | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 0 | 0 |
Recurring | Level 3 | Corporate | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | 0 | 0 |
Recurring | Level 3 | Equity securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Fair Value | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($) | |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value adjustments | $ | $ 0 | $ 0 |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of residential loans originated for sale in secondary markets | 1 | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of residential loans originated for sale in secondary markets | 4 |
Fair Value Measurements - Fin98
Fair Value Measurements - Financial Assets Measured on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | $ 0 | $ 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 1,639 | 5,996 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | 0 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 1,639 | 5,996 |
Impaired loans, net of valuation allowance | 1,391 | 2,151 |
Other real estate owned, net | 1,225 | 1,328 |
Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | 0 |
Impaired loans, net of valuation allowance | 0 | 0 |
Other real estate owned, net | 0 | 0 |
Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 1,639 | 5,996 |
Impaired loans, net of valuation allowance | 0 | 0 |
Other real estate owned, net | 0 | 0 |
Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | 0 |
Impaired loans, net of valuation allowance | 1,391 | 2,151 |
Other real estate owned, net | $ 1,225 | $ 1,328 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Impaired loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Selling cost | 8.00% | 8.00% |
Other real estate owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Selling cost | 8.00% | 6.00% |
Minimum | Impaired loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Market rate for borrower (discount rate) | 3.25% | |
Maximum | Impaired loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Market rate for borrower (discount rate) | 9.80% |
Fair Value Measurements - Balan
Fair Value Measurements - Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Assets: | ||
Securities available for sale | $ 321,337 | $ 346,502 |
Financial Liabilities: | ||
Other short-term borrowings | 24,000 | 20,000 |
Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 52,477 | 53,207 |
Securities available for sale | 0 | 0 |
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 short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | |
Junior subordinated debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 2 | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 321,337 | 346,502 |
Restricted stock | 6,110 | 6,224 |
Loans held for sale | 1,639 | 5,996 |
Loans, net of allowance | 0 | 0 |
Bank owned life insurance | 18,460 | 18,163 |
Accrued interest receivable | 5,231 | 5,083 |
Financial Liabilities: | ||
Deposits | 1,151,068 | 991,785 |
Repurchase agreements | 10,726 | 39,166 |
Other short-term borrowings | 24,000 | 20,000 |
Long-term borrowings | 0 | |
Junior subordinated debt | 0 | 0 |
Accrued interest payable | 674 | 623 |
Level 3 | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 0 | 0 |
Restricted stock | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net of allowance | 1,317,737 | 1,136,961 |
Bank owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial Liabilities: | ||
Deposits | 376,888 | 374,774 |
Repurchase agreements | 0 | 0 |
Other short-term borrowings | 0 | 0 |
Long-term borrowings | 10,156 | |
Junior subordinated debt | 28,358 | 24,932 |
Accrued interest payable | 0 | 0 |
Carrying Value | ||
Financial Assets: | ||
Cash and cash equivalents | 52,477 | 53,207 |
Securities available for sale | 321,337 | 346,502 |
Restricted stock | 6,110 | 6,224 |
Loans held for sale | 1,639 | 5,996 |
Loans, net of allowance | 1,322,522 | 1,152,020 |
Bank owned life insurance | 18,460 | 18,163 |
Accrued interest receivable | 5,231 | 5,083 |
Financial Liabilities: | ||
Deposits | 1,534,726 | 1,370,640 |
Repurchase agreements | 10,726 | 39,166 |
Other short-term borrowings | 24,000 | 20,000 |
Long-term borrowings | 9,980 | |
Junior subordinated debt | 27,826 | 27,724 |
Accrued interest payable | 674 | 623 |
Fair Value Balance | ||
Financial Assets: | ||
Cash and cash equivalents | 52,477 | 53,207 |
Securities available for sale | 321,337 | 346,502 |
Restricted stock | 6,110 | 6,224 |
Loans held for sale | 1,639 | 5,996 |
Loans, net of allowance | 1,317,737 | 1,136,961 |
Bank owned life insurance | 18,460 | 18,163 |
Accrued interest receivable | 5,231 | 5,083 |
Financial Liabilities: | ||
Deposits | 1,527,956 | 1,366,559 |
Repurchase agreements | 10,726 | 39,166 |
Other short-term borrowings | 24,000 | 20,000 |
Long-term borrowings | 10,156 | |
Junior subordinated debt | 28,358 | 24,932 |
Accrued interest payable | $ 674 | $ 623 |
Dividend Restrictions and Re101
Dividend Restrictions and Regulatory Capital - Narrative (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
Amount available for dividend distribution without prior approval from regulatory agency | $ 16,011 |
Dividend Restrictions and Re102
Dividend Restrictions and Regulatory Capital (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Company | ||
Common Equity Tier 1 Capital, Amount [Abstract] | ||
Actual Amount | $ 166,968 | $ 158,350 |
Required for Capital Adequacy Purposes | $ 83,476 | $ 68,972 |
Common Equity Tier 1 Capital, Ratios [Abstract] | ||
Actual Ratio | 11.50% | 11.77% |
Required for Capital Adequacy Purposes | 5.75% | 5.125% |
Tier 1 Capital, Actual Amount [Abstract] | ||
Actual Amount | $ 194,794 | $ 186,074 |
Required for Capital Adequacy Purposes | $ 105,253 | $ 89,159 |
Tier 1 Capital, Ratios [Abstract] | ||
Actual Ratio | 13.42% | 13.83% |
Required for Capital Adequacy Purposes | 7.25% | 6.625% |
Total Capital, Actual Amount [Abstract] | ||
Actual Amount | $ 208,973 | $ 199,375 |
Required for Capital Adequacy Purposes | $ 134,288 | $ 116,075 |
Total Capital, Ratios [Abstract] | ||
Actual Ratio | 14.39% | 14.81% |
Required for Capital Adequacy Purposes | 9.25% | 8.625% |
Leverage Capital, Actual Amount [Abstract] | ||
Actual Amount | $ 194,794 | $ 186,074 |
Required for Capital Adequacy Purposes | $ 71,128 | $ 63,761 |
Leverage Capital, Ratios [Abstract] | ||
Actual Ratio | 10.95% | 11.67% |
Required for Capital Adequacy Purposes | 4.00% | 4.00% |
Bank | ||
Common Equity Tier 1 Capital, Amount [Abstract] | ||
Actual Amount | $ 184,656 | $ 172,927 |
Required for Capital Adequacy Purposes | 83,024 | 68,580 |
To Be Well Capitalized Under Prompt Corrective Action Provisions | $ 93,854 | $ 86,979 |
Common Equity Tier 1 Capital, Ratios [Abstract] | ||
Actual Ratio | 12.79% | 12.92% |
Required for Capital Adequacy Purposes | 5.75% | 5.125% |
To Be Well Capitalized Under Prompt Corrective Action Provisions | 6.50% | 6.50% |
Tier 1 Capital, Actual Amount [Abstract] | ||
Actual Amount | $ 184,656 | $ 172,927 |
Required for Capital Adequacy Purposes | 104,683 | 88,652 |
To Be Well Capitalized Under Prompt Corrective Action Provisions | $ 115,512 | $ 107,051 |
Tier 1 Capital, Ratios [Abstract] | ||
Actual Ratio | 12.79% | 12.92% |
Required for Capital Adequacy Purposes | 7.25% | 6.625% |
To Be Well Capitalized Under Prompt Corrective Action Provisions | 8.00% | 8.00% |
Total Capital, Actual Amount [Abstract] | ||
Actual Amount | $ 198,465 | $ 185,931 |
Required for Capital Adequacy Purposes | 133,561 | 115,415 |
To Be Well Capitalized Under Prompt Corrective Action Provisions | $ 144,390 | $ 133,814 |
Total Capital, Ratios [Abstract] | ||
Actual Ratio | 13.75% | 13.89% |
Required for Capital Adequacy Purposes | 9.25% | 8.625% |
To Be Well Capitalized Under Prompt Corrective Action Provisions | 10.00% | 10.00% |
Leverage Capital, Actual Amount [Abstract] | ||
Actual Amount | $ 184,656 | $ 172,927 |
Required for Capital Adequacy Purposes | 70,796 | 63,571 |
To Be Well Capitalized Under Prompt Corrective Action Provisions | $ 88,495 | $ 79,464 |
Leverage Capital, Ratios [Abstract] | ||
Actual Ratio | 10.43% | 10.88% |
Required for Capital Adequacy Purposes | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions | 5.00% | 5.00% |
Segment and Related Informat103
Segment and Related Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Interest income | $ 63,038 | $ 56,170 | $ 55,169 |
Interest expense | 7,291 | 6,316 | 5,904 |
Noninterest income | 14,227 | 13,505 | 13,287 |
Income (loss) before income taxes | 26,075 | 23,308 | 21,059 |
Net income (loss) | 15,249 | 16,301 | 15,039 |
Depreciation and amortization | 2,405 | 2,856 | 3,034 |
Total assets | 1,816,078 | 1,678,638 | 1,547,599 |
Goodwill | 43,872 | 43,872 | 43,872 |
Capital expenditures | 2,648 | 3,613 | 1,474 |
Operating Segments | Community Banking | |||
Segment Reporting Information [Line Items] | |||
Interest income | 62,697 | 56,076 | 55,109 |
Interest expense | 6,263 | 5,438 | 5,144 |
Noninterest income | 9,224 | 8,848 | 8,386 |
Income (loss) before income taxes | 24,828 | 22,230 | 19,398 |
Net income (loss) | 14,456 | 15,486 | 13,793 |
Depreciation and amortization | 2,393 | 2,845 | 3,022 |
Total assets | 1,806,647 | 1,669,629 | 1,545,377 |
Goodwill | 43,872 | 43,872 | 43,872 |
Capital expenditures | 2,637 | 3,609 | 1,453 |
Operating Segments | Trust and Investment Services | |||
Segment Reporting Information [Line Items] | |||
Interest income | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 |
Noninterest income | 4,756 | 4,634 | 4,881 |
Income (loss) before income taxes | 2,521 | 2,623 | 2,737 |
Net income (loss) | 1,486 | 1,835 | 1,956 |
Depreciation and amortization | 12 | 11 | 12 |
Total assets | 0 | 0 | 0 |
Goodwill | 0 | 0 | 0 |
Capital expenditures | 11 | 4 | 21 |
Other | |||
Segment Reporting Information [Line Items] | |||
Interest income | 341 | 94 | 60 |
Interest expense | 1,028 | 878 | 760 |
Noninterest income | 247 | 23 | 20 |
Income (loss) before income taxes | (1,274) | (1,545) | (1,076) |
Net income (loss) | (693) | (1,020) | (710) |
Depreciation and amortization | 0 | 0 | 0 |
Total assets | 236,644 | 229,241 | 225,533 |
Goodwill | 0 | 0 | 0 |
Capital expenditures | 0 | 0 | 0 |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Interest income | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 |
Noninterest income | 0 | 0 | 0 |
Income (loss) before income taxes | 0 | 0 | 0 |
Net income (loss) | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 |
Total assets | (227,213) | (220,232) | (223,311) |
Goodwill | 0 | 0 | 0 |
Capital expenditures | $ 0 | $ 0 | $ 0 |
Parent Company Financial Inf104
Parent Company Financial Information - Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Consolidated Balance Sheets [Abstract] | ||||
Securities available for sale, at fair value | $ 321,337 | $ 346,502 | ||
Total assets | 1,816,078 | 1,678,638 | $ 1,547,599 | |
Trust preferred capital notes | 27,826 | 27,724 | ||
Shareholders' equity | 208,717 | 201,380 | $ 197,835 | $ 173,780 |
Total liabilities and shareholders' equity | 1,816,078 | 1,678,638 | ||
Parent Company | ||||
Consolidated Balance Sheets [Abstract] | ||||
Cash | 1,597 | 4,654 | ||
Securities available for sale, at fair value | 8,740 | 8,355 | ||
Investment in subsidiaries | 226,452 | 216,340 | ||
Due from subsidiaries | 46 | 120 | ||
Other assets | 31 | 40 | ||
Total assets | 236,866 | 229,509 | ||
Trust preferred capital notes | 27,826 | 27,724 | ||
Other liabilities | 323 | 405 | ||
Shareholders' equity | 208,717 | 201,380 | ||
Total liabilities and shareholders' equity | $ 236,866 | $ 229,509 |
Parent Company Financial Inf105
Parent Company Financial Information - Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||
Dividends from subsidiary | $ 319 | $ 334 | $ 346 |
Income tax benefit | 10,826 | 7,007 | 6,020 |
Net Income | 15,249 | 16,301 | 15,039 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends from subsidiary | 6,000 | 16,000 | 11,000 |
Other income | 588 | 117 | 80 |
Expenses | 1,862 | 1,662 | 1,156 |
Income tax benefit | (581) | (526) | (366) |
Income before equity in undistributed earnings of subsidiary | 5,307 | 14,981 | 10,290 |
Equity in undistributed earnings of subsidiary | 9,942 | 1,320 | 4,749 |
Net Income | $ 15,249 | $ 16,301 | $ 15,039 |
Parent Company Financial Inf106
Parent Company Financial Information - Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | Sep. 30, 2011 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash Flows from Operating Activities: | ||||
Net income | $ 15,249 | $ 16,301 | $ 15,039 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Gain on sale of securities | (812) | (836) | (867) | |
Net change in other assets | (379) | (1,390) | 1,778 | |
Net change in other liabilities | 284 | 867 | (118) | |
Net cash provided by operating activities | 25,751 | 16,117 | 19,262 | |
Cash Flows from Investing Activities: | ||||
Purchases of securities available for sale | (84,931) | (168,069) | (120,040) | |
Proceeds from sales of securities available for sale | 55,903 | 13,019 | 15,425 | |
Cash paid in bank acquisition | 0 | 0 | (5,935) | |
Net cash used in investing activities | (147,856) | (175,366) | (17,364) | |
Cash Flows from Financing Activities: | ||||
Common stock dividends paid | (8,384) | (8,266) | (8,068) | |
Repurchase of common stock | 0 | (1,292) | (3,506) | |
Proceeds from exercise of stock options | 113 | 142 | 789 | |
Proceeds from issuance of common stock | $ 619 | |||
Net cash provided by financing activities | 121,375 | 117,119 | 26,136 | |
Net Increase (Decrease) in Cash and Cash Equivalents | (730) | (42,130) | 28,034 | |
Cash and Cash Equivalents at Beginning of Period | 53,207 | 95,337 | 67,303 | |
Cash and Cash Equivalents at End of Period | 52,477 | 53,207 | 95,337 | |
Parent Company | ||||
Cash Flows from Operating Activities: | ||||
Net income | 15,249 | 16,301 | 15,039 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Gain on sale of securities | (221) | 0 | 0 | |
Equity in (undistributed) distributions of subsidiary | (9,942) | (1,320) | (4,749) | |
Net change in other assets | 83 | (57) | 257 | |
Net change in other liabilities | (82) | 163 | 106 | |
Net cash provided by operating activities | 5,087 | 15,087 | 10,653 | |
Cash Flows from Investing Activities: | ||||
Purchases of securities available for sale | (373) | (6,588) | 0 | |
Proceeds from sales of securities available for sale | 500 | 0 | 0 | |
Investment in banking subsidiary | 0 | 0 | 563 | |
Cash paid in bank acquisition | 0 | 0 | (5,935) | |
Net cash used in investing activities | 127 | (6,588) | (5,372) | |
Cash Flows from Financing Activities: | ||||
Common stock dividends paid | (8,384) | (8,266) | (8,068) | |
Repurchase of common stock | 0 | (1,292) | (3,506) | |
Proceeds from exercise of stock options | 113 | 142 | 789 | |
Proceeds from issuance of common stock | 0 | 0 | 95 | |
Net cash provided by financing activities | (8,271) | (9,416) | (10,690) | |
Net Increase (Decrease) in Cash and Cash Equivalents | (3,057) | (917) | (5,409) | |
Cash and Cash Equivalents at Beginning of Period | 4,654 | 5,571 | 10,980 | |
Cash and Cash Equivalents at End of Period | $ 1,597 | $ 4,654 | $ 5,571 |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | ||
Loans secure to total loans portfolio | $ 1,322,522 | $ 1,152,020 |
Real Estate | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Loans secure to total loans portfolio | $ 1,080,031 | $ 951,073 |
Percentage of loans secure to total loans portfolio | 80.80% | 81.60% |
Commercial Real Estate | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Loans secure to total loans portfolio | $ 637,701 | $ 510,960 |
Percentage of loans secure to total loans portfolio | 47.70% | 43.90% |
Supplemental Cash Flow Infor108
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Schedule of Cash and Cash Equivalents: | ||||
Cash and due from banks | $ 28,594 | $ 20,268 | $ 19,352 | |
Interest-bearing deposits in other banks | 23,883 | 32,939 | 75,985 | |
Cash and cash equivalents | 52,477 | 53,207 | 95,337 | $ 67,303 |
Cash paid for: | ||||
Interest on deposits and borrowed funds | 7,240 | 6,348 | 5,836 | |
Income taxes | 7,653 | 6,477 | 3,090 | |
Noncash investing and financing activities: | ||||
Transfer of loans to other real estate owned | 1,233 | 295 | 2,101 | |
Unrealized loss on securities available for sale | (777) | (6,572) | (2,652) | |
Change in unfunded pension liability | (234) | 166 | 538 | |
Assets assumed: | ||||
Investment securities | 0 | 0 | 18,507 | |
Restricted stock | 0 | 0 | 587 | |
Loans | 0 | 0 | 115,960 | |
Premises and equipment | 0 | 0 | 956 | |
Deferred income taxes | 0 | 0 | 2,794 | |
Core deposit intangible | 0 | 0 | 1,839 | |
Other real estate owned, net | 0 | 0 | 168 | |
Bank owned life insurance | 0 | 0 | 1,955 | |
Other assets | 0 | 0 | 1,049 | |
Liabilities assumed: | ||||
Demand, MMDA, and savings deposits | 0 | 0 | 82,451 | |
Time deposits | 0 | 0 | 54,872 | |
Other liabilities | 0 | 0 | 3,076 | |
Issuance of common stock | $ 0 | $ 0 | $ 20,483 |
Accumulated Other Comprehens109
Accumulated Other Comprehensive Income ("AOCI") (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 201,380 | $ 197,835 | $ 173,780 | |
Net unrealized gains (losses) on securities available for sale, net of tax | 23 | (3,729) | (1,159) | |
Tax effect | 12 | (2,007) | (626) | |
Reclassification adjustment for realized gains on securities, net of tax | (528) | (543) | (564) | |
Change in unfunded pension liability, net of tax | (152) | 108 | 349 | |
Tax effect | (284) | (293) | (303) | |
Reclass stranded tax effects from tax rate change | (545) | |||
Tax effect | 82 | (58) | (189) | |
Ending Balance | 208,717 | 201,380 | 197,835 | |
Net Unrealized Gains (Losses) on Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | (150) | 4,122 | 5,845 | |
Net unrealized gains (losses) on securities available for sale, net of tax | 23 | (3,729) | (1,159) | |
Reclassification adjustment for realized gains on securities, net of tax | (528) | (543) | (564) | |
Reclass stranded tax effects from tax rate change | (141) | |||
Ending Balance | (796) | (150) | 4,122 | |
Adjustments Related to Pension Benefits | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | (1,724) | (1,832) | (2,181) | |
Change in unfunded pension liability, net of tax | (152) | 108 | 349 | |
Reclass stranded tax effects from tax rate change | (404) | |||
Ending Balance | (2,280) | (1,724) | (1,832) | |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | (1,874) | 2,290 | 3,664 | |
Reclass stranded tax effects from tax rate change | [1] | (545) | ||
Ending Balance | $ (3,076) | $ (1,874) | $ 2,290 | |
[1] | See Note 1 for Adoption of New Accounting Standards |
Accumulated Other Comprehens110
Accumulated Other Comprehensive Income ("AOCI") - Reclassifications Out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Securities gains (losses), net | $ 812 | $ 836 | $ 867 |
Income taxes | (10,826) | (7,007) | (6,020) |
Net Income | 15,249 | 16,301 | 15,039 |
Reclassification of stranded tax effects from tax rate change | (545) | ||
Total reclassifications | 528 | 543 | 564 |
Amount Reclassified from AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification of stranded tax effects from tax rate change | 141 | 0 | 0 |
Total reclassifications | 1,073 | 543 | 564 |
Realized gain on sale of securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification of stranded tax effects from tax rate change | (141) | ||
Total reclassifications | 528 | 543 | 564 |
Realized gain on sale of securities | Amount Reclassified from AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Securities gains (losses), net | 812 | 836 | 867 |
Income taxes | (284) | (293) | (303) |
Net Income | 528 | 543 | 564 |
Adjustments Related to Pension Benefits | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification of stranded tax effects from tax rate change | (404) | ||
Adjustments Related to Pension Benefits | Amount Reclassified from AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total reclassifications | $ 404 | $ 0 | $ 0 |