Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 2018 | |
Document Documentand Entity Information [Abstract] | |||
Entity Registrant Name | COMMUNITY FINANCIAL CORP /MD/ | ||
Entity Central Index Key | 855,874 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Accelerated Filer | ||
Trading Symbol | tcfc | ||
Entity Public Float | $ 166,800 | ||
Entity Common Stock Shares Outstanding | 5,581,521 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 24,064 | $ 13,315 |
Federal funds sold | 5,700 | |
Interest-bearing deposits with banks | 3,272 | 2,102 |
Securities available for sale (AFS), at fair value | 119,976 | 68,164 |
Securities held to maturity (HTM), at amortized cost | 96,271 | 99,246 |
Equity securities carried at fair value through income | 4,428 | |
Non-marketable equity securities held in other financial institutions | 209 | 121 |
Federal Home Loan Bank (FHLB) stock - at cost | 3,821 | 7,276 |
Loans receivable | 1,348,105 | 1,151,130 |
Less: allowance for loan losses | (10,976) | (10,515) |
Net loans | 1,337,129 | 1,140,615 |
Goodwill | 10,835 | |
Premises and equipment, net | 22,922 | 21,391 |
Other real estate owned (OREO) | 8,111 | 9,341 |
Accrued interest receivable | 4,957 | 4,511 |
Investment in bank owned life insurance | 36,295 | 29,398 |
Core deposit intangible | 2,806 | |
Net deferred tax assets | 6,693 | 5,922 |
Other assets | 1,738 | 4,559 |
Total Assets | 1,689,227 | 1,405,961 |
Liabilities and Stockholders' Equity | ||
Non-interest-bearing deposits | 209,378 | 159,844 |
Interest-bearing deposits | 1,220,251 | 946,393 |
Total deposits | 1,429,629 | 1,106,237 |
Short-term borrowings | 35,000 | 87,500 |
Long-term debt | 20,436 | 55,498 |
Guaranteed preferred beneficial interest in junior subordinated debentures (TRUPs) | 12,000 | 12,000 |
Subordinated notes - 6.25% | 23,000 | 23,000 |
Accrued expenses and other liabilities | 14,680 | 11,769 |
Total Liabilities | 1,534,745 | 1,296,004 |
Stockholders' Equity | ||
Common stock - par value $.01; authorized - 15,000,000 shares; issued 5,577,559 and 4,649,658 shares, respectively | 56 | 46 |
Additional paid in capital | 84,397 | 48,209 |
Retained earnings | 72,594 | 63,648 |
Accumulated other comprehensive loss | (1,847) | (1,191) |
Unearned ESOP shares | (718) | (755) |
Total Stockholders' Equity | 154,482 | 109,957 |
Total Liabilities and Stockholders' Equity | $ 1,689,227 | $ 1,405,961 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 15,000,000 | 15,000,000 |
Common stock, issued | 5,577,559 | 4,649,658 |
Subordinated Debt [Member] | ||
Subordinated notes interest rate | 6.25% | 6.25% |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest and Dividend Income | |||
Loans, including fees | $ 59,755,000 | $ 49,611,000 | $ 44,919,000 |
Interest and dividends on investment securities | 5,153,000 | 3,906,000 | 3,108,000 |
Interest on deposits with banks | 265,000 | 53,000 | 20,000 |
Total interest and dividend income | 65,173,000 | 53,570,000 | 48,047,000 |
Interest Expense | |||
Deposits | 10,682,000 | 5,946,000 | 4,695,000 |
Short-term borrowings | 767,000 | 1,057,000 | 196,000 |
Long-term debt | 2,837,000 | 3,179,000 | 3,251,000 |
Total interest expense | 14,286,000 | 10,182,000 | 8,142,000 |
Net interest income | 50,887,000 | 43,388,000 | 39,905,000 |
Provision for loan losses | 1,405,000 | 1,010,000 | 2,359,000 |
Net interest income after provision for loan losses | 49,482,000 | 42,378,000 | 37,546,000 |
Noninterest Income | |||
Loan appraisal, credit, and miscellaneous charges | 183,000 | 157,000 | 289,000 |
Gain on sale of assets | 1,000 | 47,000 | 12,000 |
Net gain on sale of investment securities | 175,000 | 31,000 | |
Unrealized loss on equity securities | (81,000) | ||
Income from bank owned life insurance | 902,000 | 773,000 | 789,000 |
Service charges | 3,063,000 | 2,595,000 | 2,675,000 |
Gain on sale of loans held for sale | 294,000 | ||
Total noninterest income | 4,068,000 | 4,041,000 | 3,796,000 |
Noninterest Expense | |||
Salary and employee benefits | 19,548,000 | 16,758,000 | 16,810,000 |
Occupancy expense | 3,116,000 | 2,632,000 | 2,488,000 |
Advertising | 671,000 | 543,000 | 647,000 |
Data processing expense | 3,020,000 | 2,354,000 | 2,267,000 |
Professional fees | 1,513,000 | 1,662,000 | 1,568,000 |
Merger and acquisition costs | 3,625,000 | 829,000 | |
Depreciation of premises and equipment | 810,000 | 786,000 | 812,000 |
Telephone communications | 277,000 | 191,000 | 174,000 |
Office supplies | 149,000 | 119,000 | 136,000 |
FDIC insurance | 654,000 | 638,000 | 739,000 |
OREO valuation allowance and expenses | 657,000 | 703,000 | 1,297,000 |
Core deposit intangible amortization | 784,000 | ||
Other | 3,325,000 | 2,839,000 | 2,657,000 |
Total noninterest expense | 38,149,000 | 30,054,000 | 29,595,000 |
Income before income taxes | 15,401,000 | 16,365,000 | 11,747,000 |
Income tax expense | 4,173,000 | 9,157,000 | 4,416,000 |
Net income | $ 11,228,000 | $ 7,208,000 | $ 7,331,000 |
Earnings Per Common Share | |||
Basic (in dollars per share) | $ 2.02 | $ 1.56 | $ 1.59 |
Diluted (in dollars per share) | 2.02 | 1.56 | 1.59 |
Cash dividends paid per common share (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.40 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 11,228 | $ 7,208 | $ 7,331 |
Net unrealized holding losses arising during period, net of tax benefit of $242, $41 and $433, respectively | (637) | (62) | (662) |
Reclassification adjustment for losses included in net income, net of tax benefit of $0, $3 and $7, respectively | (5) | (15) | |
Comprehensive income | $ 10,591 | $ 7,141 | $ 6,654 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net unrealized holding gains arising during period, tax effect | $ 242 | $ 41 | $ 433 |
Reclassification adjustments, tax effect | $ 0 | $ 3 | $ 7 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Unearned ESOP Shares [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Additional Paid-In Capital [Member] | Common Stock [Member] | Total |
Balance at Dec. 31, 2015 | $ (316) | $ (251) | $ 53,495 | $ 46,809 | $ 46 | $ 99,783 |
Comprehensive Income | ||||||
Net income | 7,331 | 7,331 | ||||
Unrealized holding gain (loss) on investment securities net of tax | (677) | (677) | ||||
Comprehensive income | 6,654 | |||||
Cash dividend at $0.40 per common share | (1,814) | (1,814) | ||||
Dividend reinvestment | 47 | |||||
Adjustments To Additional Paid In Capital Dividends Reinvested | (47) | |||||
Net change in unearned ESOP shares | 147 | 147 | ||||
Repurchase of common stock | (865) | (865) | ||||
Stock based compensation | 489 | 489 | ||||
Tax effect of the ESOP dividend | 32 | 32 | ||||
Balance at Dec. 31, 2016 | (169) | (928) | 58,100 | 47,377 | 46 | 104,426 |
Comprehensive Income | ||||||
Net income | 7,208 | 7,208 | ||||
Unrealized holding gain (loss) on investment securities net of tax | (67) | (67) | ||||
Reclassification due to Accounting Standard Update (ASU 2018-02) | (196) | 196 | ||||
Comprehensive income | 7,141 | |||||
Cash dividend at $0.40 per common share | (1,804) | (1,804) | ||||
Excess of fair market value over cost of leveraged ESOP shares released | 110 | 110 | ||||
Dividend reinvestment | 52 | |||||
Adjustments To Additional Paid In Capital Dividends Reinvested | (52) | |||||
Exercise of stock options | 155 | 155 | ||||
Net change in unearned ESOP shares | (586) | (586) | ||||
Stock based compensation | 515 | 515 | ||||
Balance at Dec. 31, 2017 | (755) | (1,191) | 63,648 | 48,209 | 46 | 109,957 |
Comprehensive Income | ||||||
Net income | 11,228 | 11,228 | ||||
Unrealized holding gain (loss) on investment securities net of tax | (637) | (637) | ||||
Reclassification due to Accounting Standard Update (ASU 2018-02) | (19) | 19 | ||||
Comprehensive income | 10,591 | |||||
Cash dividend at $0.40 per common share | (2,163) | (2,163) | ||||
Excess of fair market value over cost of leveraged ESOP shares released | 34 | 34 | ||||
Dividend reinvestment | 68 | |||||
Adjustments To Additional Paid In Capital Dividends Reinvested | (68) | |||||
Shares issued for County First Merger | 35,612 | 10 | 35,622 | |||
Net change in unearned ESOP shares | 37 | 37 | ||||
Repurchase of common stock | (70) | (70) | ||||
Stock based compensation | 474 | 474 | ||||
Balance at Dec. 31, 2018 | $ (718) | $ (1,847) | $ 72,594 | $ 84,397 | $ 56 | $ 154,482 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Stockholders' Equity [Abstract] | |||
Net unrealized holding gains (losses) arising during period, tax effect | $ 242 | $ 44 | $ 440 |
Common stock, dividends, per share, cash paid | $ 0.40 | $ 0.40 | $ 0.40 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities | |||
Net income | $ 11,228,000 | $ 7,208,000 | $ 7,331,000 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Provision for loan losses | 1,405,000 | 1,010,000 | 2,359,000 |
Depreciation and amortization | 1,679,000 | 1,598,000 | 1,544,000 |
Loans originated for resale | (2,529,000) | ||
Proceeds from sale of loans originated for sale | 2,823,000 | ||
Gain on sale of loans held for sale | (294,000) | ||
Net loss (gains) on the sale of OREO | 8,000 | (43,000) | 436,000 |
Gain on sales of investment securities | (175,000) | (31,000) | |
Unrealized loss on equity securities | 81,000 | ||
Gain on sale of asset | (1,000) | (47,000) | (12,000) |
Net amortization of premium/discount on investment securities | 215,000 | 393,000 | 509,000 |
Net accretion of merger accounting adjustments | (750,000) | ||
Amortization of core deposit intangible | 784,000 | ||
Increase in OREO valuation allowance | 532,000 | 599,000 | 574,000 |
Increase in cash surrender of bank owned life insurance | (898,000) | (773,000) | (789,000) |
(Increase) decrease in deferred income tax benefit | (290,000) | 1,887,000 | (555,000) |
Increase in accrued interest receivable | (34,000) | (532,000) | (761,000) |
Stock based compensation | 474,000 | 515,000 | 489,000 |
Compensation expense due to excess of fair market value over cost of leveraged ESOP shares released | 33,000 | 110,000 | |
Increase in net deferred loan costs | (96,000) | (689,000) | (1,552,000) |
Increase in accrued expenses and other liabilities | 1,360,000 | 322,000 | 1,414,000 |
Decrease (increase) in other assets | 3,670,000 | (1,281,000) | 1,959,000 |
Net Cash Provided by Operating Activities | 19,400,000 | 10,102,000 | 12,915,000 |
Cash Flows from Investing Activities | |||
Purchase of AFS investment securities | (66,137,000) | (26,251,000) | (31,312,000) |
Proceeds from redemption or principal payments of AFS investment securities | 8,881,000 | 7,110,000 | 5,653,000 |
Purchase of HTM investment securities | (11,130,000) | (13,135,000) | (24,504,000) |
Proceeds from maturities or principal payments of HTM investment securities | 16,995,000 | 18,048,000 | 23,564,000 |
Proceeds from sale of HTM investment securities | 4,947,000 | 710,000 | |
Proceeds from sale of AFS investment securities | 34,919,000 | 3,702,000 | 6,546,000 |
Net decrease (increase) of FHLB and FRB stock | 3,659,000 | (41,000) | (303,000) |
Loans originated or acquired | (346,321,000) | (325,155,000) | (411,564,000) |
Principal collected on loans | 289,690,000 | 260,303,000 | 234,587,000 |
Purchase of premises and equipment | (1,777,000) | (779,000) | (3,970,000) |
Proceeds from sale of OREO | 996,000 | 1,300,000 | 3,423,000 |
Acquisition net cash acquired | 32,287,000 | ||
Proceeds from disposal of asset | 1,748,000 | 387,000 | 2,044,000 |
Net Cash Used in Investing Activities | (36,190,000) | (69,564,000) | (195,126,000) |
Cash Flows from Financing Activities | |||
Net increase in deposits | 124,169,000 | 67,412,000 | 131,925,000 |
Proceeds from long-term debt | 20,000,000 | 10,000,000 | 15,000,000 |
Payments of long-term debt | (55,064,000) | (20,061,000) | (5,058,000) |
Net (decrease) increase in short term borrowings | (52,500,000) | 8,500,000 | 43,000,000 |
Exercise of stock options | 155,000 | ||
Dividends paid | (2,163,000) | (1,804,000) | (1,814,000) |
Net change in unearned ESOP shares | 37,000 | (586,000) | 147,000 |
Repurchase of common stock | (70,000) | (865,000) | |
Net Cash Provided by Financing Activities | 34,409,000 | 63,616,000 | 182,335,000 |
Increase in Cash and Cash Equivalents | 17,619,000 | 4,154,000 | 124,000 |
Cash and Cash Equivalents - January 1 | 15,417,000 | 11,263,000 | 11,139,000 |
Cash and Cash Equivalents - December 31 | 33,036,000 | 15,417,000 | 11,263,000 |
Supplemental Disclosures of Cash Flow Information | |||
Interest | 14,246,000 | 10,001,000 | 7,993,000 |
Income taxes | 3,494,000 | 7,435,000 | 5,325,000 |
Supplemental Schedule of Non-Cash Operating Activities | |||
Issuance of common stock for payment of compensation | 387,000 | 203,000 | 575,000 |
Transfer from loans to OREO | 307,000 | 3,634,000 | 3,120,000 |
Financed amount of sale of OREO | $ 200,000 | 2,176,000 | |
Transfer of OREO to premises and equipment | 372,000 | ||
Transfer from premises and equipment to premises and equipment held for sale | $ 345,000 | ||
Business Combination Non-Cash Disclosures | |||
Assets acquired in business combination (net of cash received) | 192,259,000 | ||
Liabilities assumed in business combination | $ 200,660,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Consolidated Financial Statements include the accounts of The Community Financial Corporation and its wholly owned subsidiary Community Bank of the Chesapeake (the “Bank”), and the Bank’s wholly owned subsidiary Community Mortgage Corporation of Tri-County (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America and to general practices within the banking industry. Reclassification Certain items in prior financial statements have been reclassified to conform to the current presentation. Following our adoption of ASU 2016-01 - Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities on January 1, 2018, the Company accounts for its investment in equity securities with a readily determinable fair value with unrealized gains and losses included in earnings. $19,000 was reclassified from Accumulated Other Comprehensive Income (“AOCI”) into Retained Earnings. The Company adopted ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” for the year ended December 31, 2017. In accordance with ASU 2018-02, we elected to reclassify certain income tax effects related to the change in the U.S. statutory federal income tax rate under the Tax Cuts and Jobs Act, which was enacted on December 22, 2017 (see Note 13 - Income Taxes), from accumulated other comprehensive income to retained earnings. Additionally, OREO gains of $43,000 for the year ended December 31, 2017 and OREO losses of $436,000 for the year ended December 31, 2016 were reclassified from noninterest income to noninterest expense. OREO related income and expenses are presented in the OREO valuation allowance and expenses financial statement line. Nature of Operations The Company provides a variety of financial services to individuals and businesses through its offices in Southern Maryland and Annapolis, Maryland, and Fredericksburg, Virginia. Its primary deposit products are demand, savings and time deposits, and its primary lending products are commercial and residential mortgage loans, commercial loans, construction and land development loans, home equity and second mortgages and commercial equipment loans. The Bank is headquartered in Southern Maryland with 12 branches located in Maryland and Virginia. The Bank is a wholly owned subsidiary of The Community Financial Corporation (the “Company”). The Bank’s branches are located in Waldorf ( two branches), Bryans Road, Dunkirk, Leonardtown, La Plata ( two branches), Charlotte Hall, Prince Frederick, Lusby, California, Maryland; and Fredericksburg, Virginia. The Bank has two operation centers located at the main office in Waldorf, Maryland and in Fredericksburg, Virginia. The Company maintains five loan production offices (“LPOs”) in Annapolis, La Plata, Prince Frederick and Leonardtown, Maryland; and Fredericksburg, Virginia. The Leonardtown LPO is co-located with the branch and the Fredericksburg LPO is co-located with the operation center. The Company closed its Central Park Fredericksburg branch during the third quarter of 2017. On January 1, 2018, t he Company completed the acquisition of County First Bank (“County First”) after r egulatory approval and County First shareholder approvals were obtained. The Company’s assets increased to $1.6 billion during the first quarter of 2018. See Note 2 – Business Combination and Goodwill for additional information. Use of Estimates In preparing Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America, 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, the valuation of OREO, the valuation of goodwill and deferred tax assets. Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located in the Fredericksburg area of Virginia and the Southern Maryland counties of Calvert, Charles and St. Mary’s. Notes 6 and 7 discuss the types of securities and loans held by the Company. The Company does not have significant concentration in any one customer or industry. Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of three months or less when purchased to be cash equivalents. Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity (“HTM”) and recorded at amortized cost. Securities purchased and held principally for trading in the near term are classified as “trading securities” and are reported at fair value, with unrealized gains and losses included in earnings. The Company held no trading securities for the years ended December 31, 2018, 2017, and 2016. Securities not classified as held to maturity or trading securities are classified as available for sale (“AFS”) and recorded at estimated fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Equity securities with readily determinable fair values are recorded at fair value with unrealized gains and losses included in noninterest income in the consolidated statements of income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the estimated fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other than temporary impairment losses, management considers: (1) the length of time and the extent to which the fair value has been less than cost; (2) the financial condition and near-term prospects of the issuer; and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Investments in Federal Reserve Bank and Federal Home Loan Bank of Atlanta stocks are recorded at cost and are considered restricted as to marketability. The Bank is required to maintain investments in the Federal Home Loan Bank based upon levels of borrowings. Debt securities are evaluated quarterly to determine whether a decline in their value is other-than-temporary impairment (“OTTI”). The term other-than-temporary is not necessarily intended to indicate a permanent decline in value. It means that the prospects for near term recovery of value are not necessarily favorable, or that there is a lack of evidence to support fair values equal to, or greater than, the carrying value of the investment. Under accounting guidance, for recognition and presentation of other-than-temporary impairments the amount of other-than-temporary impairment that is recognized through earnings for debt securities is determined by comparing the present value of the expected cash flows to the amortized cost of the security. The discount rate used to determine the credit loss is the expected book yield on the security. The Company does not evaluate declines in the value of securities of Government Sponsored Enterprises (“GSEs”) or investments backed by the full faith and credit of the United States government (e.g. US Treasury Bills), for other-than-temporary impairment. Loans Held for Sale Residential mortgage loans intended for sale in the secondary market are carried at the lower of cost or estimated fair value, in the aggregate. Fair value is derived from secondary market quotations for similar instruments. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Residential mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. The carrying value of mortgage loans sold is reduced by the cost allocated to the associated servicing rights. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold, using the specific identification method. The Company exited the residential mortgage origination line of business in April 2015 for individual owner occupied residential first mortgages and established third party sources to supply its residential whole loan portfolio. The Company continues to underwrite loans for non-owner occupied residential rental properties. T he Company may sell certain loans forward into the secondary market at a specified price with a specified date on a best efforts basis. These forward sales are derivative financial instruments. The Company does not recognize gains or losses due to interest rate changes for loans sold forward on a best efforts basis. The Bank had no loans held for sale at December 31, 2018 and 2017, respectively., and sold no 1-4 family residential mortgage loans for the year ended December 31, 2018. Loans Receivable The Company originates real estate mortgages, construction and land development loans, commercial loans and consumer loans. The Company purchases residential owner-occupied first mortgages from established third-parties. A substantial portion of the loan portfolio is comprised of loans throughout Southern Maryland and the Fredericksburg area of Virginia. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in this area. Loans that the Company has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding unpaid principal balances, adjusted for the allowance for loan losses and any deferred fees or premiums. Interest income is accrued on the unpaid principal balance. Loan origination fees and premiums, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered credit impaired. Evidence of credit quality deterioration as of the purchase date may include statistics such as internal risk grade, past due and nonaccrual status, recent borrower credit scores and recent loan-to-value (“LTV”) percentages. Purchased credit-impaired (“PCI”) loans are initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. We estimate the cash flows expected to be collected at acquisition using specific credit review of certain loans, quantitative credit risk, interest rate risk and prepayment risk models, and qualitative economic and environmental assessments, each of which incorporate our best estimate of current key relevant factors, such as property values, default rates, loss severity and prepayment speeds. Under the accounting guidance for PCI loans, the excess of the total cash flows expected to be collected over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan, or pool of loans, in situations where there is a reasonable expectation about the timing and amount of cash flows to be collected. The difference between the contractually required payments and the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the nonaccretable difference and is available to absorb future charge-offs. In addition, subsequent to acquisition, we periodically evaluate our estimate of cash flows expected to be collected. These evaluations require the continued usage of key assumptions and estimates, similar to the initial estimate of fair value. Estimates of cash flows for PCI loans require significant judgment given the impact of property value changes, changing loss severities, prepayment speeds and other relevant factors. Decreases in the expected cash flows will generally result in a charge to the provision for loan losses resulting in an increase to the allowance for loan losses. Significant increases in the expected cash flows will generally result in an increase in interest income over the remaining life of the loan, or pool of loans. Disposals of loans, which may include sales of loans to third parties, receipt of payments in full or part from the borrower or foreclosure of the collateral, result in removal of the loan from the PCI loan portfolio at its carrying amount. Loans are reviewed on a regular basis and are placed on non-accrual status when, in the opinion of management, the collection of additional interest is doubtful. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well secured and in the process of collection. Non-accrual loans include certain loans that are current with all loan payments and are placed on non-accrual status due to customer operating results and cash flows. Non-accrual loans are evaluated for impairment on a loan-by-loan basis in accordance with the Company’s impairment methodology. Interest is recognized on non-accrual loans on a cost recovery or cash-basis. Consumer loans are typically charged-off no later than 90 days past due. Mortgage and commercial loans are fully or partially charged-off when in management’s judgment all reasonable efforts to return a loan to performing status have occurred. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected from loans that are placed on non-accrual 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 principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses and Impaired Loans The allowance for loan losses is established as probable losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes that the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans considering historical experience, the composition and size of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance for loan losses consists of a general and a specific component. The general component is based upon historical loss experience and a review of qualitative risk factors by portfolio segment (See Note 7 for a description of portfolio segments). The historical loss experience factor is tracked over various time horizons for each portfolio segment. The Company considers qualitative factors in addition to the loss experience factor. These include trends by portfolio segment in charge-offs, delinquencies, classified loans, loan concentrations and the rate of portfolio segment growth. Qualitative factors also include an assessment of the current regulatory environment, the quality of credit administration and loan portfolio management and national and local economic trends. The specific component of the allowance for loan losses relates to individual impaired loans with an identified impairment loss. The Company evaluates substandard and doubtful classified loans, loans delinquent 90 days or greater, non-accrual loans and troubled debt restructured loans (“TDRs”) to determine whether a loan is impaired. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration the circumstances surrounding the loan. These circumstances include the length of the delay, the reasons for the delay, the borrower’s payment record and the amount of the shortfall in relation to the principal and interest owed. Loans not impaired are included in the pool of loans evaluated in the general component of the allowance. If a specific loan is deemed to be impaired, it is evaluated for impairment. Impairment is measured on a loan-by-loan basis by the fair value of the collateral, if the loan is collateral dependent. An allowance is established when the collateral value of the impaired loan is lower than carrying value of the loan. TDRs are loans that have been modified to provide for a reduction or a delay in the payment of either interest or principal because of deterioration in the financial condition of the borrower. A loan extended or renewed at a stated interest rate equal to the current interest rate for new debt with similar risk is not considered a TDR. Once an obligation has been classified as a TDR it continues to be considered a TDR until paid in full or until the debt is refinanced and considered unimpaired. All TDRs are considered impaired and are evaluated for impairment on a loan-by-loan basis. The Company does not participate in any specific government or Company-sponsored loan modification programs. All restructured loan agreements are individual contracts negotiated with a borrower. Servicing Servicing assets are recognized as separate assets when rights are acquired through the purchase or sale of financial assets. Generally, purchased servicing rights are capitalized at the cost to acquire the rights. For sales of mortgage loans, a portion of the cost of originating the loan is allocated to the servicing based on relative estimated fair value. Estimated fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the estimated fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranche. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Premises and Equipment Land is carried at cost. Premises, improvements and equipment are carried at cost, less accumulated depreciation and amortization, computed by the straight-line method over the estimated useful lives of the assets, which are as follows: Buildings and Improvements: 10 to 50 years Furniture and Equipment: three to 15 years Automobiles: four to five years Maintenance and repairs are charged to expense as incurred, while improvements that extend the useful life of premises and equipment are capitalized. Other Real Estate Owned (“OREO”) Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the estimated fair value at the date of foreclosure less selling costs, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management, and the assets are carried at the lower of carrying amount or estimated fair value less the cost to sell. Based on updated valuations, the Bank has the ability to reverse a valuation allowance that was recorded subsequent to the initial carrying value up to the amount of the initial recorded carrying value (initial cost basis). Revenues and expenses from operations and changes in the valuation allowance are included in noninterest expense. Gains or losses on disposition are included in noninterest expense. 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; (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. Goodwill and Other Intangible Assets Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. Goodwill is assigned to reporting units and tested for impairment at least annually in the fourth quarter or on an interim basis if an event occurs or circumstances changed that would more likely than not reduce the fair value of the reporting unit below its carrying value. See Note 2 – Business Combinations and Goodwill. Intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. Our intangible assets relate to core deposits. Intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. Intangible assets with indefinite useful lives are not amortized until their lives are determined to be definite. Intangible assets, premises and equipment and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. See Note 2 - Business Combinations and Goodwill. Business Combinations Accounting principles generally accepted in the United States (U.S. GAAP) requires that the acquisition method of accounting be used for all business combinations and that an acquirer be identified for each business combination. Under U.S. GAAP, the acquirer is the entity that obtains control of one or more businesses in the business combination, and the acquisition date is the date the acquirer achieves control. U.S. GAAP requires that the acquirer recognize the fair value of assets acquired, liabilities assumed, and any non-controlling interest in the acquiree at the acquisition date. The Company determines the fair values of loans, core deposit intangible, and deposits with the assistance of a third-party vendor. Loans acquired in business combinations are recorded in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, “Business Combinations.” Accordingly, acquired loans are segregated between purchase credit impaired (“PCI”) loans (ASC 310-30) and Non-PCI loans (ASC-310-20) and are recorded at fair value without the carryover of the related allowance for loan losses. For PCI loans, the excess of expected cash flows above the fair value will be accreted to interest income over the remaining lives of the loans in accordance with FASB ASC 310-30. For Non-PCI loans, the total discount/premium will be accreted to interest income over the remaining lives of the loans in accordance with FASB ASC 310-20. A dvertising Costs The Company expenses advertising costs as incurred. Income Taxes The Company files a consolidated federal income tax return with its subsidiaries. Deferred tax assets and liabilities are determined using the liability (or balance sheet) method. 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 and when it is considered more likely than not that deferred tax assets will be realized. It is the Company’s policy to recognize accrued interest and penalties related to unrecognized tax benefits as a component of tax expense. Off Balance Sheet Credit Related Financial Instruments In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under commercial lines of credit, letters of credit and standby letters of credit. Such financial instruments are recorded when they are funded. Stock-Based Compensation The Company has stock-based incentive arrangements to attract and retain key personnel in order to promote the success of the business. In May 2015, the 2015 Equity Compensation Plan (the “2015 plan”) was approved by shareholders, which authorizes the issuance of restricted stock, stock appreciation rights, stock units and stock options to the Board of Directors and key employees. Compensation cost for all stock-based awards is measured at fair value on date of grant and recognized over the vesting period. Such value is recognized as expense over the service period, net of estimated forfeitures. The estimation of stock awards that ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. The Company considers many factors when estimating expected forfeitures, including types of awards, employee class and historical experience. The Company and the Bank currently maintain incentive compensation plans which provide for payments to be made in cash or other share-based compensation. The Company has accrued the full amounts due under these plans. Earnings Per Common Share (“EPS”) Basic earnings per common share represent income available to common stockholders, divided by the weighted average number of common shares outstanding during the period. Unencumbered shares held by the Employee Stock Ownership Plan (“ESOP”) are treated as outstanding in computing earnings per share. Shares issued to the ESOP but pledged as collateral for loans obtained to provide funds to acquire the shares are not treated as outstanding in computing earnings per share. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential dilutive common shares are determined using the treasury stock method and include incremental shares issuable upon the exercise of stock options and other share-based compensation awards. The Company excludes from the diluted EPS calculation anti-dilutive options, because the exercise price of the options were greater than the average market price of the common shares. Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers.” On January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09 and all subsequent ASUs that modified ASU 2014-09, which have been codified in ASC Topic 606. Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Adoption of the amendments to the revenue recognition principles, did not materially change our accounting policies Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as components of comprehensive income as a separate statement in the Consolidated Statements of Comprehensive Income. Additionally, the Company discloses accumulated other comprehensive income as a separate component in the equity section of the balance sheet. Recent Accounting Pronouncements Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”). ASU 2014-09 - Revenue from Contracts with Customers . In May 2014, the FASB issued ASU 2014-09 which is a new standard related to revenue recognition. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration the entity expects to receive in exchange for those good or services. This new standard supersedes and replaces nearly all existing revenue recognition guidance, establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized over time or at a point in time, provides new and more detailed guidance on specific topics and expands and improves disclosures about revenue. In addition, this new standard specifies the accounting for some costs to obtain or fulfill a contract with a customer. The amendments in this update became effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. Effective January 1, 2018, the Company adopted the new standard. The Company’s revenue streams that are in-scope from the update include: financed OREO sales; service charges on deposit accounts, including ATM fees |
Business Combination and Intang
Business Combination and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination and Intangible Assets | NOTE 2 – BUSINESS COMBINATION AND INTANGBLE ASSETS Business Combinations Generally, acquisitions are accounted for under the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805, “Business Combinations”. Both the purchased assets and liabilities assumed are recorded at their respective acquisition date fair values. Determining the fair value of assets and liabilities, especially the loan portfolio, is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition as additional information regarding the closing date fair values becomes available. County First Bank On January 1, 2018, the Company completed its merger of County First Bank (“County First”) with and into the Bank, with the Bank as the surviving bank (the “Merger”) pursuant to the Agreement and Plan of Merger, dated as of July 31, 2017, by and among the Company, the Bank and County First. Pursuant to the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each share of common stock, par value $1.00 per share, of County First issued and outstanding immediately prior to the Effective Time was converted into the right to receive 0.9543 shares of Company common stock and $2.20 in cash (the “Merger Consideration”). The $2.20 in cash represents the sum of (a) $1.00 in cash consideration (the “Cash Consideration”) plus (b) $1.20 in Contingent Cash Consideration that was determined before the completion of the Merger in accordance with the terms of the Merger Agreement. The aggregate merger consideration consisted of 918,526 shares of the Company’s common stock and $2.1 million in cash. Based upon the $38.78 per share price of the Company’s common stock, the transaction value was $37.7 million. County First had five branch offices in La Plata, Waldorf, New Market, Prince Frederick and California, Maryland. The Bank kept the La Plata branch open and consolidated the remaining four branches with legacy Community Bank of the Chesapeake branch offices in May of 2018. The assets acquired, and liabilities assumed from County First were recorded at their fair value as of the closing date of the merger. Goodwill of $10.3 million was recorded at the time of the acquisition. As a result of refinements to the fair value mark on fixed assets, and deferred taxes, goodwill as indicated below is $10.8 million at December 31, 2018 which is an increase of $558,236 from the goodwill estimated at the time of acquisition. (dollars in thousands) As Recorded by County First Fair Value and Other Merger Related Adjustments As Recorded by the Company Consideration Paid Cash $ 2,122 Common shares issued 35,620 Fair Value of Total Consideration Transferred $ 37,742 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 34,409 $ - $ 34,409 Securities 38,861 (659) 38,202 Loans, net of allowance 142,404 (1,654) 140,750 Premises and equipment 2,980 181 3,161 Core deposit intangibles - 3,590 3,590 Interest receivable 513 (12) 501 Bank owned life insurance 6,275 - 6,275 Deferred tax asset 639 (426) 213 Other assets 586 - 586 Total assets acquired $ 226,667 $ 1,020 $ 227,687 Deposits $ 199,210 $ 18 $ 199,228 Other liabilities 1,449 103 1,552 Total liabilities assumed $ 200,659 $ 121 $ 200,780 Net identifiable assets acquired $ 26,008 $ 899 $ 26,907 Goodwill resulting from acquisition $ 10,835 The Company recognized core deposit intangible assets of $3.6 million with the acquisition of County First Bank. Core deposit intangible is amortized on an accelerated basis over its estimated life of 8 years. Amortization expense related to intangible assets totaled $784,000 for the year ended December 31, 2018. Acquired intangible assets subject to amortization were as follows at year end: As of December 31, 2018 As of December 31, 2017 (dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Intangible Asset Gross Carrying Amount Accumulated Amortization Net Intangible Asset Core deposit intangibles $ 3,590 $ (784) $ 2,806 $ - $ - $ - Estimated amortization expense for each of the next five years: (dollars in thousands) 2019 $ 688 2020 591 2021 495 2022 398 2023 302 $ 2,474 The following table presents certain pro forma information as if County First Bank had been acquired on January 1, 2017. These results combine the historical results of County First in the Company’s consolidated statement of income and, while certain adjustments were made for the estimated impact of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition taken place on January 1, 2017. Merger and acquisition costs of $3.6 million (pre-tax) are included in the Company’s consolidated statements of income for the year ended December 31, 2018. There are no assumptions about what merger related costs would have been in the proforma information below, only actual expenses are included in net income. Furthermore, additional expenses related to systems conversions and other costs of integration were recorded during 2018. Additionally, the Company expects to achieve further operating cost savings and other business synergies as a result of the acquisition which are not reflected in the pro forma amounts below: Proforma Results for the Years Ended December 31, 2017 (dollars in thousands, except per share amounts) The Community Financial Corporation Actual County First Actual Proforma December, 2017 Actual Results Year Ended December 31, 2018 Total revenues (net interest income plus noninterest income) $ 47,429 $ 8,812 $ 56,241 $ 54,955 Net income 7,208 926 8,134 11,228 Basic earnings per common share $ 1.56 $ 1.01 $ 1.47 $ 2.02 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | NOTE 3 - ACCUMULATED OTHER COMPREHENSIVE INCOME The following table presents the components of comprehensive (loss) income for the years ended December 31, 2018, 2017 and 2016. The Company’s comprehensive gains and losses and reclassification adjustments were solely for securities for the years ended December 31, 2018, 2017 and 2016. Reclassification adjustments are recorded in non-interest income. Years Ended December 31, 2018 December 31, 2017 December 31, 2016 (dollars in thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Net unrealized holding gains (losses) arising during period $ (879) $ (242) $ (637) $ (103) $ (41) $ (62) $ (1,095) $ (433) $ (662) Reclassification adjustments - - - (8) (3) (5) (22) (7) (15) Other comprehensive (loss) income $ (879) $ (242) $ (637) $ (111) $ (44) $ (67) $ (1,117) $ (440) $ (677) The following table presents the changes in each component of accumulated other comprehensive (loss) income, net of tax, for the years ended December 31, 2018, 2017 and 2016. Year Ended December 31, 2018 Year Ended December 31, 2017 Year Ended December 31, 2016 (dollars in thousands) Net Unrealized Gains And Losses Net Unrealized Gains And Losses Net Unrealized Gains And Losses Beginning of period $ (1,191) $ (928) $ (251) Other comprehensive gains (losses), net of tax before reclassifications (637) (62) (662) Amounts reclassified from accumulated other comprehensive loss - (5) (15) Net other comprehensive (loss) income (637) (67) (677) Reclassification due to Accounting Standard Updates (ASU 2016-01 & 2018-02) (19) (196) - End of period $ (1,847) $ (1,191) $ (928) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 4 - EARNINGS PER 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 share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may have been issued by the Company related to outstanding stock options and were determined using the treasury stock method. T he Company has not granted any stock options since 2007 and all outstanding options expired on July 17, 2017. As of December 31, 2018, 2017 and 2016 , there were 0 , 0 and 15,081 options , respectively, which were excluded from the calculation as their effect would be anti-dilutive, because the exercise price of the options was greater than the average market price of the common shares. B asic and diluted earnings per share have been computed based on weighted-average common and common equivalent shares outstanding as follows: Years Ended December 31, (dollars in thousands) 2018 2017 2016 Net Income $ 11,228 $ 7,208 $ 7,331 Average number of common shares outstanding 5,550,510 4,627,776 4,599,502 Dilutive effect of common stock equivalents - 1,452 - Average number of shares used to calculate diluted EPS 5,550,510 4,629,228 4,599,502 Earnings Per Common Share Basic $ 2.02 $ 1.56 1.59 Diluted 2.02 1.56 1.59 |
Restrictions on Cash and Amount
Restrictions on Cash and Amounts Due from Banks | 12 Months Ended |
Dec. 31, 2018 | |
Restrictions on Cash and Amounts Due from Banks [Abstract] | |
Restrictions on Cash and Amounts Due from Banks | NOTE 5 -RESTRICTIONS ON CASH AND AMOUNTS DUE FROM BANKS The Bank is required to maintain average balances on hand or with the Federal Reserve Bank. At December 31, 2018 and 2017, these reserve balances amounted to $1.3 million and $915,000 , respectively. . |
Securities
Securities | 12 Months Ended |
Dec. 31, 2018 | |
Securities [Abstract] | |
Securities | NOTE 6 – SECURITIES December 31, 2018 Amortized Gross Unrealized Gross Unrealized Estimated (dollars in thousands) Cost Gains Losses Fair Value Securities available for sale (AFS) Asset-backed securities issued by GSEs and U.S. Agencies Residential Mortgage Backed Securities ("MBS") $ 7,641 $ 1 $ 281 $ 7,361 Residential Collateralized Mortgage Obligations ("CMOs") 102,411 199 1,870 100,740 U.S. Agency 12,472 9 606 11,875 Total securities available for sale $ 122,524 $ 209 $ 2,757 $ 119,976 Securities held to maturity (HTM) Asset-backed securities issued by GSEs and U.S. Agencies Residential MBS $ 25,948 $ 75 $ 756 $ 25,267 Residential CMOs 52,375 64 1,360 51,079 U.S. Agency 10,508 7 404 10,111 Asset-backed securities issued by Others: Residential CMOs 482 - 41 441 Callable GSE Agency Bonds 5,009 - 110 4,899 Certificates of Deposit Fixed 950 - - 950 U.S. government obligations 999 - 1 998 Total securities held to maturity $ 96,271 $ 147 $ 2,672 $ 93,745 Equity securities carried at fair value through income CRA investment fund $ 4,428 $ - $ - $ 4,428 Non-marketable equity securities Other equity securities $ 209 $ - $ - $ 209 December 31, 2017 Amortized Gross Unrealized Gross Unrealized Estimated (dollars in thousands) Cost Gains Losses Fair Value Securities available for sale (AFS) Asset-backed securities issued by GSEs and U.S. Agencies Residential MBS $ 7,265 $ - $ 178 $ 7,087 Residential CMOs 45,283 12 1,158 44,137 U.S. Agency 12,863 - 346 12,517 Bond mutual funds 4,397 26 - 4,423 Total securities available for sale $ 69,808 $ 38 $ 1,682 $ 68,164 Securities held to maturity (HTM) Asset-backed securities issued by GSEs and U.S. Agencies Residential MBS $ 29,113 $ 135 $ 261 $ 28,987 Residential CMOs 54,805 62 845 54,022 U.S. Agency 8,660 - 235 8,425 Asset-backed securities issued by Others: Residential CMOs 651 - 52 599 Callable GSE Agency Bonds 5,017 - 43 4,974 U.S. government obligations 1,000 - - 1,000 Total securities held to maturity $ 99,246 $ 197 $ 1,436 $ 98,007 Non-marketable equity securities Other equity securities $ 121 $ - $ - $ 121 At December 31, 2018, and 2017 securities with an amortized cost of $41.3 million and $31.5 million were pledged to secure certain customer deposits. At December 31, 2018, and 2017 securities with an amortized cost of $3.3 million and $4.0 million were pledged as collateral for advances from the Federal Home Loan Bank (“FHLB”) of Atlanta. At December 31, 2018, and 2017 greater than 99% of the asset-backed securities and agency bond portfolio was rated AAA by Standard & Poor’s or the equivalent credit rating from another major rating agency. AFS asset-backed securities issued by GSEs and U.S. Agencies had an average life of 4.37 years and 4.74 years and average duration of 3.86 years and 4.22 years and are guaranteed by their issuer as to credit risk. HTM asset-backed securities issued by GSEs and U.S. Agencies had an average life of 4.88 years and 4.39 years and average duration of 4.25 years and 4.95 years and are guaranteed by their issuer as to credit risk. Management believes that AFS securities with unrealized losses will either recover in market value or be paid off as agreed. The Company intends to, and has the ability to, hold these securities to maturity. Because our intention is not to sell the investments and it is not more likely than not that the Company will be required to sell the investments, management considers the unrealized losses in the AFS portfolio to be temporary. The Company intends to, and has the ability to, hold the HTM securities with unrealized losses until they mature, at which time the Company will receive full value for the securities. Because our intention is not to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, management considers the unrealized losses in the held-to-maturity portfolio to be temporary. No charges related to other-than-temporary impairment were made during for the years ended December 31, 2018, 2017 and 2016. During the year ended December 31, 2018, there was no sales of securities. During the year ended December 31, 2017, the Company recognized net gains on the sale of securities of $175,000 . The Company sold three AFS securities with aggregate carrying values of $3.7 million and nine HTM securities with aggregate carrying values of $4.8 million, recognizing gains of $9,000 and $166,000 , respectively. During the year ended December 31, 2016 the Company recognized net gains on the sale of securities of $31,000 . The Company sold five AFS securities with aggregate carrying values of $6.5 million and one HTM security with a carrying value of $698,000 , recognizing gains of $23,000 and $8,000 , respectively. The sale of HTM securities was permitted under ASC 320 “Investments - Debt and Equity Securities.” ASC 320 permits the sale of HTM securities for certain changes in circumstances. The Company will dispose of HTM securities using the safe harbor rule that allows for the sale of HTM securities that have principal payments paid down to less than 15% of original purchased par. ASC 320 10-25-15 indicates that a sale of a debt security after a substantial portion of the principal has been collected is equivalent to holding the security to maturity. In addition, the Company may dispose of HTM securities under ASC 320-10-25-6 due to a significant deterioration in the issues’ creditworthiness. AFS Securities Gross unrealized losses and estimated fair value by length of time that the individual AFS securities have been in a continuous unrealized loss position at December 31, 2018 and 2017 were as follows: December 31, 2018 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs and U.S. Agencies $ 30,095 $ 163 $ 54,846 $ 2,594 $ 84,941 $ 2,757 $ 30,095 $ 163 $ 54,846 $ 2,594 $ 84,941 $ 2,757 December 31, 2017 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs and U.S. Agencies $ 24,571 $ 328 $ 38,428 $ 1,354 $ 62,999 $ 1,682 $ 24,571 $ 328 $ 38,428 $ 1,354 $ 62,999 $ 1,682 At December 31, 2018, and 2017 the AFS investment portfolio had an estimated fair value of $120.0 million and $68.3 million, of which $84.9 million and $63.0 million of the securities had some unrealized losses from their amortized cost respectively. AFS asset-backed securities issued by GSEs are guaranteed by the issuer and AFS U.S. government agency securities and bonds are guaranteed by the full faith and credit of the U.S. government. At December 31, 2018, and 2017 total unrealized losses on the portfolio were $2.8 million and $1.7 million of the portfolio amortized cost of $122.5 million and $65.4 million, respectively. AFS asset-backed securities issued by GSEs and U.S. Agencies with unrealized losses had an average life of 4.32 years and 4.71 years and an average duration of 3.83 years and 4.20 years. Management believes that the securities will either recover in market value or be paid off as agreed. HTM Securities Gross unrealized losses and estimated fair value by length of time that the individual HTM securities have been in a continuous unrealized loss position at December 31, 2018 and 2017 were as follows: December 31, 2018 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs and U.S. Agencies $ 6,955 $ 38 $ 70,752 $ 2,483 $ 77,707 $ 2,521 Callable GSE Agency Bonds - - 4,899 110 4,899 110 Asset-backed securities issued by Others - - 441 41 441 41 $ 6,955 $ 38 $ 76,092 $ 2,634 $ 83,047 $ 2,672 December 31, 2017 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs and U.S. Agencies $ 36,607 $ 254 $ 45,119 $ 1,130 $ 81,726 $ 1,384 Asset-backed securities issued by Others - - 599 52 599 52 $ 36,607 $ 254 $ 45,718 $ 1,182 $ 82,325 $ 1,436 At December 31, 2018, and 2017 the HTM investment portfolio had an estimated fair value of $93.7 million and $98.0 million, of which $83.0 million and $82.3 million of the securities had some unrealized losses from their amortized cost, respectively. Of these securities, $82.6 million and $81.7 million were asset-backed securities issued by GSEs and U.S. Agencies, and the remaining $441,000 and $599,000 were asset-backed securities issued by others. HTM asset-backed securities issued by GSEs and GSE agency bonds are guaranteed by the issuer and HTM U.S. government agency securities and bonds are guaranteed by the full faith and credit of the U.S. government. At December 31, 2018, and 2017 total unrealized losses on the portfolio were $2.7 million and $1.4 million of the portfolio amortized cost of $94.8 million and $98.6 million, respectively. The securities with unrealized losses had an average life of 4.88 years and 5.02 years and an average duration of 4.26 years and 4.43 years. Management believes that the securities will either recover in market value or be paid off as agreed. The Company intends to, and has the ability to, hold these securities to maturity. HTM asset-backed securities issued by others are collateralized mortgage obligation securities. The securities have credit support tranches that absorb losses prior to the tranches that the Company owns. The Company reviews credit support positions on its securities regularly. At December 31, 2018, and 2017 total unrealized losses on the asset-backed securities issued by others were $41,000 and $52,000 of the portfolio amortized cost of $482,000 and $651,000 , respectively. HTM asset-backed securities issued by others with unrealized losses had an average life of 3.01 years and 3.20 years and an average duration of 2.33 years and 2.66 years. Maturities The amortized cost and estimated fair value of debt securities at December 31, 2018 by contractual maturity, are shown below. The Company has allocated the asset-backed securities into the four maturity groups listed below using the expected average life of the individual securities based on statistics provided by industry sources. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. December 31, 2018 Available for Sale Held to Maturity (dollars in thousands) Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Within one year U.S. government obligations $ - $ - $ 999 $ 999 Asset-backed securities & U.S. Agencies Within one year 19,719 19,309 19,862 23,965 Over one year through five years 59,732 58,490 41,013 37,408 Over five years through ten years 33,788 33,085 22,422 20,451 After ten years 9,285 9,092 11,975 10,922 Total asset-backed securities 122,524 119,976 95,272 92,746 $ 122,524 $ 119,976 $ 96,271 $ 93,745 Credit Quality of Asset-Backed Securities The tables below present the Standard & Poor’s (“S&P”) or equivalent credit rating from other major rating agencies for AFS and HTM asset-backed securities issued by GSEs and U.S. Agencies and others or bonds issued by GSEs or U.S. government agencies at December 31, 2018 and 2017 by carrying value. The Company considers noninvestment grade securities rated BB+ or lower as classified assets for regulatory and financial reporting. GSE asset-backed securities and GSE agency bonds with S&P AA+ ratings were treated as AAA based on regulatory guidance. December 31, 2018 December 31, 2017 Credit Rating Amount Credit Rating Amount (dollars in thousands) AAA $ 215,764 AAA $ 162,336 BB 483 BB 651 B+ - B+ - Total $ 216,247 Total $ 162,987 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2018 | |
Loans [Abstract] | |
Loans | Loans consist of the following: NOTE 7 – LOANS December 31, 2018 December 31, 2017 (dollars in thousands) PCI All other loans** Total % of Gross Loans Total % of Gross Loans Commercial real estate $ 1,785 $ 876,231 $ 878,016 65.18% $ 727,314 63.25% Residential first mortgages 466 156,243 156,709 11.63% 170,374 14.81% Residential rentals 897 123,401 124,298 9.23% 110,228 9.58% Construction and land development - 29,705 29,705 2.21% 27,871 2.42% Home equity and second mortgages 72 35,489 35,561 2.64% 21,351 1.86% Commercial loans - 71,680 71,680 5.32% 56,417 4.91% Consumer loans - 751 751 0.06% 573 0.05% Commercial equipment - 50,202 50,202 3.73% 35,916 3.12% Gross loans 3,220 1,343,702 1,346,922 100.00% 1,150,044 100.00% Net deferred costs (fees) - 1,183 1,183 0.09% 1,086 0.09% Total loans, net of deferred costs $ 3,220 $ 1,344,885 $ 1,348,105 $ 1,151,130 Less: allowance for loan losses - (10,976) (10,976) -0.81% (10,515) -0.91% Net loans $ 3,220 $ 1,333,909 $ 1,337,129 $ 1,140,615 **All other loans include acquired Non-PCI pools. At December 31, 2018 and 2017, the Bank’s allowance for loan losses totaled $11.0 million and $10.5 million, or 0.81% and 0.91% , respectively, of loan balances. Allowance for loan loss percentage levels decreased in 2018, primarily due to the addition of County First loans, after consummation of the legal merger on January 1, 2018, for which no allowance was provided for in accordance with purchase accounting standards. Management’s determination of the adequacy of the allowance is based on a periodic evaluation of the portfolio with consideration given to the overall loss experience, current economic conditions, size, growth and composition of the loan portfolio, financial condition of the borrowers and other relevant factors that, in management’s judgment, warrant recognition in providing an adequate allowance. Net deferred loan costs of $1.2 million at December 31, 2018 included net deferred fees paid by customers of $3.1 million offset by net deferred costs of $4.3 million, which include premiums paid for the purchase of residential first mortgages and deferred costs recorded in accordance with ASC 310-20 to capture loan origination costs. Net deferred loan costs of $1.1 million at December 31, 2017 included net deferred fees paid by customers of $2.8 million offset by net deferred costs of $3.9 million. Risk Characteristics of Portfolio Segments Concentrations of Credit - Loans are primarily made within the Company’s operating footprint of Southern Maryland, Annapolis, Maryland and the greater Fredericksburg area of Virginia. Real estate loans can be affected by the condition of the local real estate market. Commercial and industrial loans can be affected by the local economic conditions. The commercial loan portfolio has concentrations in business loans secured by real estate and real estate development loans. At December 31, 2018 and 2017, the Company had no loans outstanding with foreign entities. The Company manages its credit products and exposure to credit losses (credit risk) by the following specific portfolio segments (classes), which are levels at which the Company develops and documents its allowance for loan loss methodology. These segments are: Commercial Real Estate (“CRE”) Commercial and other real estate projects include office buildings, retail locations, churches, other special purpose buildings and commercial construction. Commercial construction balances were 5.9% and 6.2% of the CRE portfolio at December 31, 2018 and 2017, respectively. The Bank offers both fixed-rate and adjustable-rate loans under these product lines. The primary security on a commercial real estate loan is the real property and the leases that produce income for the real property. Loans secured by commercial real estate are generally limited to 80% of the lower of the appraised value or sales price at origination and have an initial contractual loan payment period ranging from three to 20 years. Loans secured by commercial real estate are larger and involve greater risks than one-to four-family residential mortgage loans. Because payments on loans secured by such properties are often dependent on the successful operation or management of the properties, repayment of such loans may be subject to a greater extent to adverse conditions in the real estate market or the economy. Residential First Mortgages Residential first mortgage loans are generally long-term loans, amortized on a monthly basis, with principal and interest due each month. The contractual loan payment period for residential loans typically ranges from ten to 30 years. The Bank’s experience indicates that real estate loans remain outstanding for significantly shorter time periods than their contractual terms. Borrowers may refinance or prepay loans at their option, without penalty. The Bank’s residential portfolio has both fixed-rate and adjustable-rate residential first mortgages. During the years ended December 31, 2018 and 2017, the Bank purchased residential first mortgages of $11.0 million and $25.5 million, respectively. The annual and lifetime limitations on interest rate adjustments may limit the increases in interest rates on these loans. There are also credit risks resulting from potential increased costs to the borrower as a result of repricing of adjustable-rate mortgage loans. During periods of rising interest rates, the risk of default on adjustable-rate mortgage loans may increase due to the upward adjustment of interest cost to the borrower. The Bank’s adjustable rate residential first mortgage portfolio was $54.2 million or 4.0% of total gross loans of $1.35 billion at December 31, 2018 compared to $56.9 million or 5.0% of total gross loans of $1.15 billion at December 31, 2017. Residential Rentals Residential rental mortgage loans are amortizing, with principal and interest due each month. The loans are secured by income-producing 1-4 family units and apartments. As of December 31, 2018 and 2017, $96.6 million and $85.0 million, respectively, were 1-4 family units and $27.7 million and $25.2 million, respectively, were apartment buildings or multi-family units. Loans secured by residential rental properties are generally limited to 80% of the lower of the appraised value or sales price at origination and have an initial contractual loan payment period ranging from three to 20 years. The primary security on a residential rental loan is the property and the leases that produce income. During periods of rising interest rates, the risk of default on adjustable-rate mortgage loans may increase due to the upward adjustment of interest cost to the borrower. The Bank’s adjustable rate residential rental portfolio was $97.4 million or 7.2% of total gross loans of $1.35 billion at December 31, 2018 compared to $93.4 million or 8.1% of total gross loans of $1.15 billion at December 31, 2017. Loans secured by residential rental properties involve greater risks than 1-4 family residential mortgage loans. Although, there are similar risk characteristics shared with commercial real estate loans, the balances for the loans secured by residential rental properties are generally smaller. Because payments on loans secured by residential rental properties are often dependent on the successful operation or management of the properties, repayment of these loans may be subject to a greater extent to adverse conditions in the rental real estate market or the economy than similar owner-occupied properties. Construction and Land Development The Bank offers loans for the construction of one-to-four family dwellings. Generally, these loans are secured by the real estate under construction as well as by guarantees of the principals involved. In addition, the Bank offers loans to acquire and develop land, as well as loans on undeveloped, subdivided lots for home building. A decline in demand for new housing might adversely affect the ability of borrowers to repay these loans. Construction and land development loans are inherently riskier than financing owner-occupied real estate. The Bank’s risk of loss is affected by the accuracy of the initial estimate of the market value of the completed project as well as the accuracy of the cost estimates made to complete the project. In addition, the volatility of the real estate market has made it increasingly difficult to ensure that the valuation of land associated with these loans is accurate. During the construction phase, a number of factors could result in delays and cost overruns. If the estimate of construction costs proves to be inaccurate, the Bank may be required to advance funds beyond the amount originally committed to permit completion of the development. If the estimate of value proves to be inaccurate, a project’s value might be insufficient to assure full repayment. As a result of these factors, construction lending often involves the disbursement of substantial funds with repayment dependent, in part, on the success of the project rather than the ability of the borrower or guarantor to repay principal and interest. If the Bank forecloses on a project, there can be no assurance that the Bank will be able to recover all of the unpaid balance of, and accrued interest on, the loan as well as related foreclosure and holding costs. Home Equity and Second Mortgage Loans The Bank maintains a portfolio of home equity and second mortgage loans. These products contain a higher risk of default than residential first mortgages as in the event of foreclosure, the first mortgage would need to be paid off prior to collection of the second mortgage. This risk is heightened as the market value of residential property has not fully returned to pre-financial crisis levels and interest rates began to increase in 2017. Commercial Loans The Bank offers its business customers a variety of commercial loan products including term loans and lines of credit. Such loans are generally made for terms of five years or less. The Bank offers both fixed-rate and adjustable-rate loans under these product lines. When making commercial business loans, the Bank considers the financial condition of the borrower, the borrower’s payment history of both corporate and personal debt, the projected cash flows of the business, the viability of the industry in which the borrower operates, the value of the collateral, and the borrower’s ability to service the debt from income. These loans are primarily secured by equipment, real property, accounts receivable or other security as determined by the Bank. Commercial loans are made on the basis of the borrower’s ability to make repayment from the cash flows of the borrower’s business. As a result, the availability of funds for the repayment of commercial loans may depend substantially on the success of the business itself. Consumer Loans Consumer loans consist of loans secured by automobiles, boats, recreational vehicles and trucks. The Bank also makes home improvement loans and offers both secured and unsecured personal lines of credit. Consumer loans entail greater risk from other loan types due to being secured by rapidly depreciating assets or the reliance on the borrower’s continuing financial stability. Commercial Equipment Loans These loans consist primarily of fixed-rate, short-term loans collateralized by a commercial customer’s equipment or secured by real property, accounts receivable, or other security as determined by the Bank. When making commercial equipment loans, the Bank considers the same factors it considers when underwriting a commercial business loan. Commercial loans are of higher risk and typically are made on the basis of the borrower’s ability to make repayment from the cash flows of the borrower’s business. As a result, the availability of funds for the repayment of commercial loans may depend substantially on the success of the business itself. In the case of business failure, collateral would need to be liquidated to provide repayment for the loan. In many cases, the highly specialized nature of collateral equipment would make full recovery from the sale of collateral problematic. Non-accrual and Aging Analysis of Current and Past Due Loans Non-accrual loans as of December 31, 2018 and 2017 were as follows: December 31, 2018 (dollars in thousands) Non- accrual Delinquent Loans Number of Loans Non-accrual Current Loans Number of Loans Total Non-accrual Loans Total Number of Loans Commercial real estate $ 8,474 11 $ 6,158 6 $ 14,632 17 Residential first mortgages 146 1 1,228 4 1,374 5 Residential rentals 260 2 703 3 963 5 Construction and land development - - - - - - Home equity and second mortgages 147 2 - - 147 2 Commercial loans 866 2 - - 866 2 Consumer loans - - - - - - Commercial equipment 1,259 5 41 2 1,300 7 $ 11,152 23 $ 8,130 15 $ 19,282 38 December 31, 2017 (dollars in thousands) Non- accrual Delinquent Loans Number of Loans Non-accrual Current Loans Number of Loans Total Non-accrual Loans Total Number of Loans Commercial real estate $ 1,148 4 $ 839 3 $ 1,987 7 Residential first mortgages 478 3 507 1 985 4 Residential rentals 84 1 741 3 825 4 Construction and land development - - - - - - Home equity and second mortgages 134 3 123 1 257 4 Commercial loans 172 2 - - 172 2 Consumer loans - - - - - - Commercial equipment 467 3 - - 467 3 $ 2,483 16 $ 2,210 8 $ 4,693 24 Non-accrual loans increased $14.6 million from $4.7 million or 0.41% of total loans at December 31, 2017 to $19.3 million or 1.43% of total loans at December 31, 2018. Non-accrual loans can be current but classified as non-accrual due to customer operating results or payment history. All interest accrued but not collected from loans that are placed on non-accrual or charged-off is reversed against interest income. In accordance with the Company’s policy, interest income is recognized on a cash basis or cost-recovery method, until qualifying for return to accrual status. At December 31, 2018, non-accrual loans of $19.3 million included 38 loans, of which $15.3 million, or 79% represented 13 loans and four customer relationships. At December 31, 2017, non-accrual loans of $4.7 million included 24 loans, of which $3.3 million, or 71% represented 10 loans and five customer relationships. During the year ended December 31, 2018, non-accrual loans increased $14.6 million primarily as a result of one well-secured classified relationship of $10.1 million that was placed on non-accrual during the second quarter of 2018. At December 31, 2018, there were $8.1 million ( 42% ) of non-accrual loans current with all payments of principal and interest with no impairment and $11.2 million ( 58% ) of delinquent non-accrual loans with a total of $978,000 specifically reserved. Non-accrual loans at December 31, 2018 and 2017 included one TDR totaling $29,000 and $769,000 , respectively. These loans were classified solely as non-accrual for the calculation of financial ratios. Loan delinquency (90 days or greater delinquent and 31-89 days delinquent) increased $534,000 from $11.7 million, or 1.02% of loans, at December 31, 2017 to $12.2 million, or 0.91% of loans, at December 31, 2018. Non-accrual loans on which the recognition of interest has been discontinued, which did not have a specific allowance for impairment, amounted to $17.4 million and $3.8 million at December 31, 2018 and 2017, respectively. Interest due but not recognized on these balances at December 31, 2018 and 2017 was $456,000 and $85,000 , respectively. Non-accrual loans with a specific allowance for impairment on which the recognition of interest has been discontinued amounted to $1.9 million and $876,000 at December 31, 2018 and 2017, respectively. Interest due but not recognized on these balances at December 31, 2018 and 2017 was $81,000 and $100,000 , respectively. The Company considers a loan to be past due or delinquent when the terms of the contractual obligation are not met by the borrower. PCI loans are included as a single category in the table below as management believes, regardless of their age, there is a lower likelihood of aggregate loss related to these loan pools. Additionally, PCI loans are discounted to allow for the accretion of income on a level yield basis over the life of the loan based on expected cash flows. Regardless of payment status, as long as cash flows can be reasonably estimated, the associated discount on these loan pools results in income recognition. An analysis of past due loans as of December 31, 2018 and 2017 was as follows: December 31, 2018 (dollars in thousands) 31-60 Days 61-89 Days 90 or Greater Days Total Past Due PCI Loans Current Total Loan Receivables Commercial real estate $ - $ 677 $ 8,474 $ 9,151 $ 1,785 $ 867,080 $ 878,016 Residential first mortgages - 66 146 212 466 156,031 156,709 Residential rentals 13 53 247 313 897 123,088 124,298 Construction and land dev. - - - - - 29,705 29,705 Home equity and second mtg. 266 - 147 413 72 35,076 35,561 Commercial loans - - 866 866 - 70,814 71,680 Consumer loans 1 4 - 5 - 746 751 Commercial equipment 25 29 1,230 1,284 - 48,918 50,202 Total $ 305 $ 829 $ 11,110 $ 12,244 $ 3,220 $ 1,331,458 $ 1,346,922 December 31, 2017 (dollars in thousands) 31-60 Days 61-89 Days 90 or Greater Days Total Past Due PCI Loans Current Total Loan Receivables Commercial real estate $ - $ 6,711 $ 1,148 $ 7,859 $ - $ 719,455 $ 727,314 Residential first mortgages - 68 478 546 - 169,828 170,374 Residential rentals - 207 84 291 - 109,937 110,228 Construction and land dev. - - - - - 27,871 27,871 Home equity and second mtg. 19 18 134 171 - 21,180 21,351 Commercial loans 892 299 172 1,363 - 55,054 56,417 Consumer loans - 1 - 1 - 572 573 Commercial equipment 1,012 - 467 1,479 - 34,437 35,916 Total $ 1,923 $ 7,304 $ 2,483 $ 11,710 $ - $ 1,138,334 $ 1,150,044 There were no loans greater than 90 days still accruing interest at December 31, 2018 and 2017, respectively. Impaired Loans and Troubled Debt Restructures (“TDRs”) Impaired loans, including TDRs, at December 31, 2018 and 2017 were as follows: December 31, 2018 (dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance YTD Average Recorded Investment YTD Interest Income Recognized Commercial real estate $ 27,835 $ 24,515 $ 3,025 $ 27,540 $ 326 $ 27,833 $ 1,275 Residential first mortgages 2,527 2,527 - 2,527 - 2,573 126 Residential rentals 1,745 1,745 - 1,745 - 1,792 85 Construction and land dev. 729 729 - 729 - 729 45 Home equity and second mtg. 294 288 - 288 - 291 13 Commercial loans 2,762 1,888 863 2,751 700 2,804 118 Consumer loans 1 - 1 1 1 1 - Commercial equipment 1,315 1,121 178 1,299 153 1,354 31 Total $ 37,208 $ 32,813 $ 4,067 $ 36,880 $ 1,180 $ 37,377 $ 1,693 December 31, 2017 (dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance YTD Average Recorded Investment YTD Interest Income Recognized Commercial real estate $ 33,180 $ 30,921 $ 2,008 $ 32,929 $ 370 $ 33,575 $ 1,379 Residential first mortgages 2,455 1,978 459 2,437 2 2,479 91 Residential rentals 2,389 1,981 395 2,376 18 2,432 111 Construction and land dev. 729 - 729 729 163 729 26 Home equity and second mtg. 317 317 - 317 - 318 12 Commercial loans 3,010 2,783 168 2,951 168 3,048 137 Commercial equipment 1,538 1,048 467 1,515 303 1,578 73 Total $ 43,618 $ 39,028 $ 4,226 $ 43,254 $ 1,024 $ 44,159 $ 1,829 TDRs, included in the impaired loan schedules above, as of December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 (dollars in thousands) Dollars Number of Loans Dollars Number of Loans Commercial real estate $ 5,612 7 $ 9,273 9 Residential first mortgages 66 1 527 2 Residential rentals 216 1 221 1 Construction and land development 729 2 729 2 Commercial loans 53 1 4 1 Commercial equipment 29 1 36 1 Total TDRs $ 6,705 13 $ 10,790 16 Less: TDRs included in non-accrual loans (29) (1) (769) (1) Total performing accrual TDR loans $ 6,676 12 $ 10,021 15 TDRs decreased $4.1 million from $10.8 million at December 31, 2017 to $6.7 million at December 31, 2018. TDRs that are included in non-accrual are classified solely as non-accrual loans for the calculation of financial ratios. The Company had specific reserves of $165,000 on one TDR totaling $1.6 million at December 31, 2018 and $413,000 on seven TDRs totaling $3.0 million at December 31, 2017. During the year ended December 31, 2018, TDR disposals, which included payoffs and refinancing decreased by three loans totaling $3.9 million. TDR loan principal curtailment was $176,000 for the year ended December 31, 2018. There were no TDRs added during the year ended December 31, 2018. During the year ended December 31, 2017, TDR disposals, which included payoffs and refinancing decreased by seven loans totaling $3.9 million, of which $3.0 million related to the foreclosure of the stalled residential development project. TDR loan principal curtailment was $385,000 for the year ended December 31, 2017. There were no TDRs added during the year ended December 31, 2017. Performing TDRs as a percentage of outstanding TDRs at December 31, 2018 and 2017 were $6.7 million or 99.6% , and $10.0 million or 92.9% , respectively. Interest income in the amount of $348,000 and $327,000 was recognized on outstanding TDR loans for the years ended December 31, 2018 and 2017, respectively. The Bank’s TDRs are performing according to the terms of their agreements at market interest rates appropriate for the level of credit risk of each TDR loan. The average contractual interest rate on performing TDRs at December 31, 2018 and 2017 was 5.08% and 4.83% , respectively. Allowance for Loan Losses The following tables detail activity in the allowance for loan losses at and for the years ended December 31, 2018, 2017 and 2016, respectively. An allocation of the allowance to one category of loans does not prevent the Company from using that allowance to absorb losses in a different category. Year Ended December 31, 2018 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance Commercial real estate $ 6,451 $ (268) $ 10 $ 689 $ 6,882 Residential first mortgages 1,144 (115) - (274) 755 Residential rentals 512 (84) - 70 498 Construction and land development 462 - - (152) 310 Home equity and second mortgages 162 (7) 18 (40) 133 Commercial loans 1,013 (94) 189 374 1,482 Consumer loans 7 (2) - 1 6 Commercial equipment 764 (647) 56 737 910 $ 10,515 $ (1,217) $ 273 $ 1,405 $ 10,976 Purchase Credit Impaired** $ - $ - $ - $ - $ - ** There is no allowance for loan loss on the PCI portfolios. A more detailed rollforward schedule will be presented if an allowance is required. Year Ended December 31, 2017 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance Commercial real estate $ 5,212 $ (217) $ 63 $ 1,393 $ 6,451 Residential first mortgages 1,406 - - (262) 1,144 Residential rentals 362 (42) - 192 512 Construction and land development 941 (26) - (453) 462 Home equity and second mortgages 138 (14) 1 37 162 Commercial loans 794 (13) 1 231 1,013 Consumer loans 3 (2) - 6 7 Commercial equipment 1,004 (168) 62 (134) 764 $ 9,860 $ (482) $ 127 $ 1,010 $ 10,515 Year Ended December 31, 2016 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance Commercial real estate $ 3,465 $ - $ 58 $ 1,689 $ 5,212 Residential first mortgages 584 - - 822 1,406 Residential rentals 538 (14) - (162) 362 Construction and land development 1,103 (526) 1 363 941 Home equity and second mortgages 142 - 5 (9) 138 Commercial loans 1,477 (594) 18 (107) 794 Consumer loans 2 (1) - 2 3 Commercial equipment 1,229 (34) 48 (239) 1,004 $ 8,540 $ (1,169) $ 130 $ 2,359 $ 9,860 The following tables detail loan receivable and allowance balances disaggregated on the basis of the Company’s impairment methodology at December 31, 2018 and 2017, respectively. December 31, 2018 December 31, 2017 (dollars in thousands) Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Purchase Credit Impaired Total Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Total Loan Receivables: Commercial real estate $ 27,540 $ 848,691 $ 1,785 $ 878,016 $ 32,929 $ 694,385 $ 727,314 Residential first mortgages 2,527 153,716 466 156,709 2,437 167,937 170,374 Residential rentals 1,745 121,656 897 124,298 2,376 107,852 110,228 Construction and land development 729 28,976 - 29,705 729 27,142 27,871 Home equity and second mortgages 288 35,201 72 35,561 317 21,034 21,351 Commercial loans 2,751 68,929 - 71,680 2,951 53,466 56,417 Consumer loans 1 750 - 751 - 573 573 Commercial equipment 1,299 48,903 - 50,202 1,515 34,401 35,916 $ 36,880 $ 1,306,822 $ 3,220 $ 1,346,922 $ 43,254 $ 1,106,790 $ 1,150,044 Allowance for loan losses: Commercial real estate $ 326 $ 6,556 $ - $ 6,882 $ 370 $ 6,081 $ 6,451 Residential first mortgages - 755 - 755 2 1,142 1,144 Residential rentals - 498 - 498 18 494 512 Construction and land development - 310 - 310 163 299 462 Home equity and second mortgages - 133 - 133 - 162 162 Commercial loans 700 782 - 1,482 168 845 1,013 Consumer loans 1 5 - 6 - 7 7 Commercial equipment 153 757 - 910 303 461 764 $ 1,180 $ 9,796 $ - $ 10,976 $ 1,024 $ 9,491 $ 10,515 During the fourth quarter of 2016, the Company expanded its factor scoring categories from three levels to five levels to capture additional movements in qualitative factors used to calculate the general allowance of each portfolio segment. No additional qualitative factors were added to the Company’s methodology as part of this change. There were no material changes to the existing allowance for loan losses by portfolio segment or in the aggregate as a result of the change. Credit Quality Indicators Credit quality indicators as of December 31, 2018 and 2017 were as follows: Credit Risk Profile by Internally Assigned Grade Commercial Real Estate Construction and Land Dev. Residential Rentals (dollars in thousands) 12/31/2018 12/31/2017 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Unrated $ 112,280 $ 75,581 $ 2,172 $ 1,775 $ 37,478 $ 28,428 Pass 741,037 619,604 26,805 25,367 85,551 80,279 Special mention - - - - - - Substandard 24,699 32,129 728 729 1,269 1,521 Doubtful - - - - - - Loss - - - - - - Total $ 878,016 $ 727,314 $ 29,705 $ 27,871 $ 124,298 $ 110,228 Commercial Loans Commercial Equipment Total Commercial Portfolios (dollars in thousands) 12/31/2018 12/31/2017 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Unrated $ 19,157 $ 14,356 $ 15,373 $ 10,856 $ 186,460 $ 130,996 Pass 49,828 39,118 33,685 23,581 936,906 787,949 Special mention - - - - - - Substandard 2,695 2,943 1,144 1,479 30,535 38,801 Doubtful - - - - - - Loss - - - - - - Total $ 71,680 $ 56,417 $ 50,202 $ 35,916 $ 1,153,901 $ 957,746 Non-Commercial Portfolios ** Total All Portfolios (dollars in thousands) 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Unrated $ 146,889 $ 152,616 $ 333,349 $ 283,612 Pass 44,441 38,081 981,347 826,030 Special mention - 96 - 96 Substandard 1,691 1,505 32,226 40,306 Doubtful - - - - Loss - - - - Total $ 193,021 $ 192,298 $ 1,346,922 $ 1,150,044 ** Non-commercial portfolios are generally evaluated based on payment activity, but may be risk graded if part of a larger commercial relationship or are credit impaired (e.g., non-accrual loans, TDRs). Credit Risk Profile Based on Payment Activity (Non-Commercial Portfolios) Residential First Mortgages Home Equity and Second Mtg. Consumer Loans (dollars in thousands) 12/31/2018 12/31/2017 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Performing $ 156,563 $ 169,896 $ 35,414 $ 21,217 $ 751 $ 573 Nonperforming 146 478 147 134 - - Total $ 156,709 $ 170,374 $ 35,561 $ 21,351 $ 751 $ 573 A risk grading scale is used to assign grades to commercial relationships, which include commercial real estate, residential rentals, construction and land development, commercial loans and commercial equipment loans. Loans are graded at inception, annually thereafter when financial statements are received and at other times when there is an indication that a credit may have weakened or improved. Only commercial loan relationships with an aggregate exposure to the Bank of $1,000,000 or greater are subject to being risk rated. Home equity and second mortgages and consumer loans are evaluated for creditworthiness in underwriting and are monitored based on borrower payment history. Residential first mortgages are evaluated for creditworthiness during credit due diligence before being purchased. Residential first mortgages, home equity and second mortgages and consumer loans are classified as unrated unless they are part of a larger commercial relationship that requires grading or are TDRs or nonperforming loans with an Other Assets Especially Mentioned (“OAEM”) or higher risk rating due to a delinquent payment history. Management regularly reviews credit quality indicators as part of its individual loan reviews and on a monthly and quarterly basis. The overall quality of the Bank’s loan portfolio is assessed using the Bank’s risk grading scale, the level and trends of net charge-offs, nonperforming loans and delinquencies, the performance of TDRs and the general economic conditions in the Company’s geographical market. This review process is assisted by frequent internal reporting of loan production, loan quality, concentrations of credit, loan delinquencies and nonperforming and potential problem loans. Credit quality indicators and allowance factors are adjusted based on management’s judgment during the monthly and quarterly review process. Loans subject to risk ratings are graded on a scale of one to ten. The Company considers loans rated substandard, doubtful and loss as classified assets for regulatory and financial reporting. Ratings 1 thru 6 - Pass Ratings 1 thru 6 have asset risks ranging from excellent low risk to adequate. The specific rating assigned considers customer history of earnings, cash flows, liquidity, leverage, capitalization, consistency of debt service coverage, the nature and extent of customer relationship and other relevant specific business factors such as the stability of the industry or market area, changes to management, litigation or unexpected events that could have an impact on risks. Rating 7 - OAEM (Other Assets Especially Mentioned) – Special Mention These credits, while protected by the financial strength of the borrowers, guarantors or collateral, have reduced quality due to economic conditions, less than adequate earnings performance or other factors which require the lending officer to direct more than normal attention to the credit. Financing alternatives may be limited and/or command higher risk interest rates. OAEM loans are the first adversely classified assets on our watch list. These relationships will be reviewed at least quarterly. Rating 8 - Substandard Substandard assets are assets that are inadequately protected by the sound worth or paying capacity of the borrower or of the collateral pledged. These assets have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the possibility that the Bank will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard. The loans may have a delinquent history or combination of weak collateral, weak guarantor strength or operating losses. When a loan is assigned to this category the Bank may estimate a specific reserve in the loan loss allowance analysis. These assets listed may include assets with histories of repossessions or some that are non-performing bankruptcies. These relationships will be reviewed at least quarterly. Rating 9 - Doubtful Doubtful assets have many of the same characteristics of Substandard with the exception that the Bank has determined that loss is not on |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2018 | |
Loan Servicing [Abstract] | |
Loan Servicing | NOTE 8 - LOAN SERVICING Loans serviced for others are not reflected in the accompanying balance sheets. The unpaid principal balances of mortgages serviced for others were $38.1 million and $43.7 million at December 31, 2018 and 2017, respectively. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and foreclosure processing. Loan servicing income is recorded on an accrual basis and includes servicing fees from investors and certain charges collected from borrowers, such as late payment fees. The following table presents the activity of the mortgage servicing rights. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Balance, beginning of the year $ 54 $ 128 $ 219 Additions - - - Amortization (36) (74) (91) Balance, end of the year $ 18 $ 54 $ 128 |
Other Real Estate Owned ("OREO"
Other Real Estate Owned ("OREO") | 12 Months Ended |
Dec. 31, 2018 | |
Other Real Estate Owned ("OREO") [Abstract] | |
Other Real Estate Owned ("OREO") | NOTE 9 - OTHER REAL ESTATE OWNED (“OREO”) OREO assets are presented net of the allowance for losses. The Company considers OREO as classified assets for regulatory and financial reporting. OREO carrying amounts reflect management’s estimate of the realizable value of these properties incorporating current appraised values, local real estate market conditions and related costs. An analysis of the activity follows. Years Ended December 31, (dollars in thousands) 2018 2017 Balance at beginning of year $ 9,341 $ 7,763 Additions of underlying property 307 3,634 Disposals of underlying property (1,005) (1,456) Transfers to premises and equipment - - Valuation allowance (532) (600) Balance at end of period $ 8,111 $ 9,341 During the year ended December 31, 201 8 , additions of $ 307,000 consisted of $ 165,000 of capitalized costs to improve a development project and $142,000 for commercial real estate. The Company disposed of commercial real estate for proceeds of $807,000 and gains of $4,000 along with residential lots for proceeds of $ 190,000 and a loss of $12,000 for the year ended December 31, 201 8 . During the year ended December 31, 2017, additions of $3.6 million consisted of $3.0 million related to the foreclosure of a stalled residential development project. The Bank is working with a construction manager to stabilize and market the project. Further, additions included $103,000 for residential lots and $495,000 for a commercial office building. The Company recognized net gains on OREO disposals of $43,000 for the year ended December 31, 201 7 . Disposals consisted of five residential and multiple residential lots totaling $1.5 million . The Bank provided $200,000 in financing for one residential property and the three residential lots during the first quarter of 2017. The transaction qualified for full accrual sales treatment under ASC Topic 360-20-40 “Property Plant and Equipment – Derecognition”. The Company had $122,000 of impaired loans secured by residential real estate for which formal foreclosure proceedings were in process as of December 31, 201 7. There were no loans secured by residential real estate for which formal foreclosure proceedings were in process as of December 31, 201 8. Additions to the valuation allowances of $532,000 , $600,000 and $574,000 were taken to adjust properties to current appraised values for the years ended December 31, 201 8 , 201 7 and 201 6 , respectively. OREO carrying amounts reflect management’s estimate of the realizable value of these properties incorporating current appraised values, local real estate market conditions and related costs. Expenses applicable to OREO assets included the following . Years Ended December 31, (dollars in thousands) 2018 2017 2016 Valuation allowance $ 532 $ 600 $ 574 Losses (gains) on dispositions 8 (43) 436 Operating expenses 117 146 287 $ 657 $ 703 $ 1,297 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | NOTE 10 - PREMISES AND EQUIPMENT A summary of the cost and accumulated depreciation of premises and equipment at December 31, 2018 and 2017 follows: December 31, (dollars in thousands) 2018 2017 Land $ 4,358 $ 4,172 Building and improvements 25,198 23,038 Furniture and equipment 9,715 9,225 Automobiles 303 303 Total cost 39,574 36,738 Less accumulated depreciation 16,652 15,347 Premises and equipment, net $ 22,922 $ 21,391 Certain Bank facilities are leased under various operating leases. Rent expense was $974,000 , $761,000 and $723,000 for the ye ars ended December 31, 2018, 2017 and 2016, respectively. Future minimum rental commitments under non-cancellable operating leases are as follows at December 31, 2018: (dollar in thousands) 2019 $ 663 2020 715 2021 735 2022 668 2023 681 Thereafter 4,488 Total $ 7,950 As of December 31, 2016, the Company had a small office condo under contract held for sale with a fair value of $345,000 that was recorded as a non-recurring Level 2 asset at December 31, 2016. The contract on the property was cancelled during 2017, and the asset was transferred and recorded as a non-recurring Level 3 asset. During 2017, the property was sold for net proceeds of $ 392,000 with a gain on the sale of $47,000 . |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Deposits | NOTE 11 - DEPOSITS Deposits consist of the following: December 31, (dollars in thousands) 2018 2017 Noninterest-bearing demand $ 209,378 $ 159,844 Interest-bearing: Demand 437,169 215,447 Money market deposits 266,160 226,351 Savings 69,893 52,990 Certificates of deposit 447,029 451,605 Total interest-bearing 1,220,251 946,393 Total Deposits $ 1,429,629 $ 1,106,237 As of December 31, 2018, and 2017 , there were $ 7.9 million and $ 9.2 million, respectively in deposit accounts held by executive officers and directors of the Bank and Company. The aggregate amount of certificates of deposit in denominations of $250,000 or more at December 31, 2018, and 2017 was $ 117.2 million and $167.5 million, respectively. At December 31, 2018 the scheduled contractual maturities of certificates of deposit are as follows: (dollars in thousands) December 31, 2018 Within one year $ 278,751 Year 2 130,161 Year 3 14,109 Year 4 16,768 Year 5 7,240 $ 447,029 The FDIC’s examination policies require that the Company monitor all customer deposit concentrations at or above 2% of total deposits. At December 31, 2018, the Bank had one customer deposit relationship that exceeded 2% of total deposits, totaling $158.8 million which represented 11.1% of total deposits of $1,429.6 million. At December 31, 2017, there were no customer deposit concentrations that exceeded 2% of total deposits. At December 31, 2017, the Bank had one customer deposit relationship that exceeded 2% of total deposits, totaling $22.6 million which represented 2.0% of total deposits of $1,106.2 million. |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Short-Term Borrowings and Long-Term Debt [Abstract] | |
Short-Term Borrowings and Long-Term Debt | NOTE 12 - SHORT-TERM BORROWINGS AND LONG-TERM DEBT The Bank’s long-term debt and short-term borrowings consist of advances from the FHLB of Atlanta. The Bank classifies debt based upon original maturity and does not reclassify debt to short-term status during its life. Long-term debt and short-term borrowings include fixed-rate long-term advances, short-term advances, daily advances, fixed-rate convertible advances, and variable-rate convertible advances. Rates and maturities on long-term advances and short-term borrowings were as follows: Fixed- Fixed-Rate Variable Rate Convertible Convertible December 31, 2018 Highest rate 2.92% n/a n/a Lowest rate 1.00% n/a n/a Weighted average rate 2.63% n/a n/a Matures through 2036 n/a n/a December 31, 2017 Highest rate 2.83% 3.47% 4.00% Lowest rate 0.95% 3.47% 4.00% Weighted average rate 1.42% 3.47% 4.00% Matures through 2036 2018 2020 Average rates of long-term debt and short-term borrowings were as follows: At or for the Year Ended December 31, (dollars in thousands) 2018 2017 2016 Long-term debt Long-term debt outstanding at end of period $ 20,436 $ 55,498 $ 65,559 Weighted average rate on outstanding long-term debt 2.84% 2.38% 2.27% Maximum outstanding long-term debt of any month end 55,493 65,554 65,593 Average outstanding long-term debt 35,684 58,704 60,503 Approximate average rate paid on long-term debt 2.39% 2.24% 2.41% Short-term borrowings Short-term borrowings outstanding at end of period $ 35,000 $ 87,500 $ 79,000 Weighted average rate on short-term borrowings 2.51% 1.34% 0.71% Maximum outstanding short-term borrowings at any month end 74,000 109,000 79,000 Average outstanding short-term borrowings 42,286 91,797 39,802 Approximate average rate paid on short-term borrowings 1.81% 1.15% 0.49% The Bank’s fixed-rate debt generally consists of advances with monthly interest payments and principal due at maturity. The Bank’s fixed-rate convertible long-term debt is callable by the issuer, after an initial period ranging from six months to five years. The instruments are callable at the end of the initial period. As of December 31, 2018 and 2017, all fixed-rate convertible debt has passed its call date. All advances have a prepayment penalty, determined based upon prevailing interest rates. Variable convertible advances have an initial variable rate based on a discount to LIBOR. As of December 31, 2018, there were no remaining fixed or variable convertible advances . During the year ended December 31, 2018, the Bank paid off $55.1 million of maturing long-term debt and added two $10.0 million fixed-rate advances maturing in 2020 at 2.81% and 2021 at 2.92% , respectively. During the year ended December 31, 2017, the Bank paid off $ 20.1 million of maturing long-term debt and added one $10.0 million fixed-rate advances maturing in 2018 at 1.38.% . At December 31, 2018 and 2017, $20.4 million or 100% and $55.5 million or 100% , respectively, of the Bank’s long-term debt was fixed for rate and term, as the conversion optionality of the advances have either been exercised or expired. The contractual maturities of long-term debt were as follows at December 31, 2018 and 2017: December 31, 2018 Fixed- Fixed-Rate Variable (dollars in thousands) Rate Convertible Convertible Total Due in 2019 $ - $ - $ - $ - Due in 2020 10,000 - - 10,000 Due in 2021 10,000 - - 10,000 Due in 2022 246 - - 246 Due in 2023 - - - - Thereafter 190 - - 190 $ 20,436 $ - $ - $ 20,436 December 31, 2017 Fixed- Fixed-Rate Variable (dollars in thousands) Rate Convertible Convertible Total Due in 2018 $ 25,000 $ 10,000 $ - $ 35,000 Due in 2019 - - - - Due in 2020 - - 10,000 10,000 Due in 2021 - - - - Due in 2022 10,302 - - 10,302 Thereafter 196 - - 196 $ 35,498 $ 10,000 $ 10,000 $ 55,498 The Bank also has daily advances outstanding and short-term advances with terms of less than one year, which are classified as short-term borrowings. Daily advances are repayable at the Bank’s option at any time and are re-priced daily. There were no daily advances as of December 31, 2018 and $6.0 million in daily advances as of December 31, 2017. The Bank had short-term advances of $35.0 million and $81.5 million, respectively, at December 31, 2018 and 2017. Under the terms of an Agreement for Advances and Security Agreement with Blanket Floating Lien (the “Agreement”), the Bank maintains collateral with the FHLB consisting of one-to four-family residential first mortgage loans, second mortgage loans, commercial real estate and securities. The Agreement limits total advances to 30% of assets, which were $506.2 million and $420.3 million at December 31, 2018 and 2017, respectively. At December 31, 2018, $589.2 million of loans and securities were pledged or in safekeeping at the FHLB. Loans and securities are subject to collateral eligibility rules and are adjusted for market value and collateral value factors to arrive at lendable collateral values. At December 31, 2018, FHLB lendable collateral was valued at $466.0 million. At December 31, 2018, the Bank had total lendable pledged collateral at the FHLB of $298.6 million of which $213.1 million was available to borrow in addition to outstanding advances of $55.4 million and letter of credit of $30.0 million. Unpledged lendable collateral was $167.4 million, bringing total available borrowing capacity to $380.5 million at December 31, 2018. At December 31, 2017, $584.6 million of loans and securities were pledged or in safekeeping at the FHLB. Loans and securities are subject to collateral eligibility rules and are adjusted for market value and collateral value factors to arrive at lendable collateral values. At December 31, 2017, FHLB lendable collateral was valued at $452.6 million. At December 31, 2017, the Bank had total lendable pledged collateral at the FHLB of $330.1 million of which $187.1 million was available to borrow in addition to outstanding advances of $143.0 million. Unpledged lendable collateral was $122.5 million, bringing total available borrowing capacity to $309.6 million at December 31, 2017. The Bank has established a short-term credit facility with the Federal Reserve Bank of Richmond under its Borrower in Custody program. The Bank had segregated collateral sufficient to draw $5.7 million and $7.5 million under this agreement at December 31, 2018 and 2017, respectively. In addition, the Bank has established unsecured short-term credit facilities with other commercial banks totaling $22.0 million at December 31, 2018 and 2017. Additionally, the Bank has a $40.0 million repurchase credit facility. The repurchase facility requires the pledging of securities as collateral. No amounts were outstanding under the Borrower in Custody or the unsecured and secured commercial lines at December 31, 2018 and 2017 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 13 - INCOME TAXES Allocation of federal and state income taxes between current and deferred portions is as follows: Years Ended December 31, 2018 2017 2016 Current Federal $ 2,810 $ 5,584 $ 3,675 State 1,653 1,686 1,296 4,463 7,270 4,971 Deferred Federal (202) 1,894 (460) State (88) (7) (95) (290) 1,887 (555) Income tax expense $ 4,173 $ 9,157 $ 4,416 The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: 2018 2017 2016 Amount Percent of Pre-Tax Income Amount Percent of Pre-Tax Income Amount Percent of Pre-Tax Income Expected income tax expense at federal tax rate $ 3,234 21.00% $ 5,728 35.00% $ 3,994 34.00% State taxes net of federal benefit 1,281 8.32% 1,096 6.70% 796 6.78% Nondeductible expenses 85 0.55% 255 1.56% 37 0.31% Nontaxable income (248) (1.61%) (376) (2.30%) (375) (3.19%) Provisional deferred tax adjustment related to reduction in U.S. federal statutory income tax rate - 0.00% 2,740 16.74% - 0.00% Other (179) (1.16%) (286) (1.75%) (36) (0.31%) $ 4,173 27.10% $ 9,157 55.95% $ 4,416 37.59% Income tax expense for 2017 was impacted by the adjustment of our deferred tax assets and liabilities related to the reduction in the U.S. federal statutory income tax rate to 21% under the Tax Cuts and Jobs Act, which was enacted on December 22, 2017. As a result of the new law, we recognized a provisional net tax expense of $2.7 million. The net deferred tax assets in the accompanying balance sheets include the following components: 2018 2017 Deferred tax assets Allowance for loan losses $ 3,020 $ 2,893 Deferred compensation 2,676 2,142 OREO valuation allowance & expenses 355 337 Unrealized loss on investment securities 724 452 Depreciation - 29 Other 144 178 6,919 6,031 Deferred tax liabilities Fair value adjustments for acquired assets and liabilities 65 - FHLB stock dividends 109 109 Depreciation 52 - 226 109 $ 6,693 $ 5,922 The Tax Cuts and Jobs Act was enacted on December 22, 2017. Among other things, the new law (i) establishes a new, flat corporate federal statutory income tax rate of 21% , (ii) eliminates the corporate alternative minimum tax and allows the use of any such carryforwards to offset regular tax liability for any taxable year, (iii) limits the deduction for net interest expense incurred by U.S. corporations, (iv) allows businesses to immediately expense, for tax purposes, the cost of new investments in certain qualified depreciable assets, (v) eliminates or reduces certain deductions related to meals and entertainment expenses, (vi) modifies the limitation on excessive employee remuneration to eliminate the exception for performance-based compensation and clarifies the definition of a covered employee and (vii) limits the deductibility of deposit insurance premiums. The Tax Cuts and Jobs Act also significantly changes U.S. tax law related to foreign operations, however, such changes do not currently impact the Company. As stated above, as a result of the enactment of the Tax Cuts and Jobs Act on December 22, 2017, we calculated deferred tax assets and liabilities based upon the newly enacted U.S. statutory federal income tax rate of 21% , which is the tax rate at which these assets and liabilities are expected to reverse in the future. We analyzed certain aspects of the new law and refined our calculations based on this analysis and tax positions taken, which could affect the measurement of these assets and liabilities or give rise to new deferred tax amounts. We recognized a provisional net tax expense related to the calculation of our deferred tax assets and liabilities totaling $2.7 million. The FASB issued ASU 2018-02, “Income Statement – Reporting Comprehensive Income,” which allows companies to reclassify stranded tax effects resulting from the Tax Cuts and Jobs Act from AOCI to retained earnings. The Company early adopted this standard for the quarter ended December 31, 2017. See Notes 1 and 2 for further information. On Friday, December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 (SAB 118). SAB 118 indicated that a reporting entity must record a reasonable estimate in the first period in which it is possible to determine a reasonable estimate. Under SAB 118, reasonable estimates are considered “provisional amounts” that have to be updated when additional information becomes available and the evaluation and computation of the additional information is complete. A reporting entity must act in good faith and update provisional amounts as soon as more information becomes available, evaluated and prepared, during a measurement period that cannot exceed one year from the enactment date. Initial reasonable estimates and subsequent changes to provisional amounts should be reported in income tax expense or benefit from continuing operations in the period in which they are determined. Retained earnings at December 31, 2018 and 2017 included approximately $1.2 million of bad debt deductions allowed for federal income tax purposes (the “base year tax reserve”) for which no deferred income tax has been recognized. If, in the future, this portion of retained earnings is used for any purpose other than to absorb bad debt losses, it would create income for tax purposes only and income taxes would be imposed at the then prevailing rates. The unrecorded income tax liability on the above amount was approximately $330,000 at December 31, 2018 and 2017. The Company does not have uncertain tax positions that are deemed material and did not recognize any adjustments for unrecognized tax benefits. The Company’s policy is to recognize interest and penalties on income taxes as a component of tax expense. The Company is no longer subject to U.S. Federal tax examinations by tax authorities for years before 2015. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | NOTE 14 - COMMITMENTS AND CONTINGENCIES The Bank is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit. These instruments may, but do not necessarily, involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized on the balance sheets. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments as it does for on-balance-sheet loans receivable. As of December 31, 2018 and 2017, the Bank had outstanding loan commitments of approximately $56.8 million and $65.6 million, respectively. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. These guarantees are issued primarily to support construction borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank holds cash or a secured interest in real estate as collateral to support those commitments for which collateral is deemed necessary. Standby letters of credit outstanding amounted to $21.2 million and $17.9 million at December 31, 2018 and 2017, respectively. In addition to the commitments noted above, customers had approximately $211.5 million and $162.2 million available under lines of credit at December 31, 2018 and 2017, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 15 - STOCK-BASED COMPENSATION The Company has stock-based incentive arrangements to attract and retain key personnel. In May 2015, the 2015 Equity Compensation Plan (the “2015 plan”) was approved by shareholders, which authorizes the issuance of restricted stock, stock appreciation rights, stock units and stock options to the Board of Directors and key employees. Compensation expense for service-based awards is recognized over the vesting period. Performance-based awards are recognized based on a vesting schedule and the probability of achieving goals specified at the time of the grant. The 2015 plan replaced the 2005 Equity Compensation Plan. Stock-based compensation expense totaled $474,000 , $515,000 and $489,000 for the years ended December 31, 2018, 2017 and 2016, respectively, which consisted of grants of restricted stock and restricted stock units. The Company has not granted any stock options since 2007 and all outstanding options expired on July 17, 2017. The fair value of the Company’s outstanding employee stock options were estimated on the date of grant using the Black-Scholes option pricing model. The Company estimated expected market price volatility and expected term of the options based on historical data and other factors. The exercise price for options granted is set at the discretion of the committee administering the Plan, but is not less than the market value of the shares as of the date of grant. An option’s maximum term is 10 years and the options vest at the discretion of the committee. The following tables below summarize option activity and outstanding and exercisable options at and for the year ended December 31, 2017. Weighted Weighted-Average Average Aggregate Contractual Life Exercise Intrinsic Remaining In (dollars in thousands, except per share amounts) Shares Price Value Years Outstanding at January 1, 2017 15,081 $ 27.70 $ - Exercised (14,231) 27.70 134 Expired (350) 27.70 - Forfeited (500) 27.70 - Outstanding at December 31, 2017 - $ - $ - - Exercisable at December 31, 2017 - $ - $ - - The Company has outstanding restricted stock in accordance with the Plan. As of December 31, 2018 and 2017, unrecognized stock compensation expense was $430,000 and $521,000 , respectively. The following tables summarize the unvested restricted stock awards outstanding at December 31, 2018 and 2017respectively. Restricted Stock Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2018 32,809 $ 22.61 Granted 10,662 36.43 Vested (17,607) 21.85 Cancelled (391) 27.69 Nonvested at December 31, 2018 25,473 $ 28.76 Restricted Stock Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2017 47,881 $ 20.41 Granted 6,752 30.20 Vested (21,738) 20.13 Cancelled (86) 20.75 Nonvested at December 31, 2017 32,809 $ 22.61 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | NOTE 16 - EMPLOYEE BENEFIT PLANS The Company has an Employee Stock Ownership Plan (“ESOP”) that covers substantially all its employees. Employees qualify to participate after one year of service and vest in allocated shares after three years of service. The ESOP acquires stock of The Community Financial Corporation by purchasing shares. Dividends on ESOP shares are recorded as a reduction of retained earnings. Contributions are made at the discretion of the Board of Directors. ESOP contributions recognized for the years ended December 31, 2018, 2017 and 2016 totaled $124,000 , $242,000 and $ 99,000 , respectively. As of December 31, 2018 and 2017, the ESOP held 161,173 and 223,344 allocated shares and 21,091 and 22,908 unallocated shares. The approximate market values of the shares were $ 5.3 million and $9.4 million, respectively as of December 31, 2018 and 2017. The estimated value was determined using the Company’s closing stock price of $ 29.24 and $ 38.30 per share as of December 31, 2018 and 2017, respectively. In addition, salary and employee benefit expense for the years ended December 31, 2018 and December 31, 2017 included $33,000 and $110,000 for the excess of fair market value of leveraged ESOP shares released (allocated). The ESOP has promissory notes with the Company for the purchase of TCFC common stock for the benefit of the participants in the Plan of $718,000 and $755,000 at December 31, 2018 and 2017, respectively. The promissory notes were originated for the purchase of TCFC common stock for the benefit of the participants in the Plan. Loan terms are at prime rate plus one -percentage point and amortize over seven (7) years. As principal is repaid, common shares are allocated to participants based on the participant account allocation rules described in the Plan. The Bank is a guarantor of the ESOP debt with the Company. During the year ended December 31, 2018, $174,000 or 6,061 ESOP shares were allocated with the payment of promissory notes. This was offset by the purchase of 4,244 shares of the Company’s common shares for $137,000 with promissory notes by the ESOP during the third and fourth quarters of 2018. During the year ended December 31, 2017, $237,000 or 10,157 ESOP shares were allocated with the payment of promissory notes. This was offset by the purchase of 23,503 shares of the Company’s common shares for $823,000 with promissory notes by the ESOP during the third quarter of 2017. The Company also has a 401(k) plan. The Company matches a portion of the employee contributions. This ratio is determined annually by the Board of Directors. In 2018, 2017 and 2016, the Company matched one-half of the first 8% of the employee’s contribution. Employees who have completed six months of service are covered under this defined contribution plan. Employee’s vest in the Company’s matching contributions after three years of service. Contributions are determined at the discretion of the Board of Directors. For the years ended December 31, 2018, 2017 and 2016, the expense recorded for this plan totaled $405,000 , $298,000 and $346,000 , respectively. The Company maintains a nonqualified deferred compensation plan for the Board of Directors and certain key employees under which each participant may elect to defer all or any portion of board fees or salary otherwise payable. Deferred amounts under this plan will be distributed to participants following termination of service or on a specified date in either lump sum or over a period of one to ten years, as elected by the participant. As of December 31, 2018 and 2017, the liability related to this plan was $2.1 million and $2.0 million, respectively. The Company has a separate nonqualified retirement plan for non-employee directors. Directors are eligible for a maximum benefit of $3,500 a year for ten years following retirement from the Board of Community Bank of the Chesapeake. The maximum benefit is earned at 15 years of service as a non-employee director. Full vesting occurs after two years of service. Expense recorded for this plan was $35,000 , $29,000 and $20,000 for the years ended December 31, 2018, 2017 and 2016, respectively. In addition, the Company has established individual supplemental retirement plans and life insurance benefits for certain key executives and officers of the Bank. The retirement plans provide retirement income payments for 15 years from the date of the employee’s expected retirement at age 65. The retirement benefit amount for each agreement is set at the discretion of the Board of Directors and vests from the date of the agreement until the expected retirement date. Expense recorded for the plans totaled $1,109,000 , $637,000 and $525,000 for 2018, 2017 and 2016, respectively. |
Guaranteed Preferred Beneficial
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures ("TRUPs") | 12 Months Ended |
Dec. 31, 2018 | |
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures (TRUPs) [Abstract] | |
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures ("TRUPs") | NOTE 17 - GUARANTEED PREFERRED BENEFICIAL INTEREST IN JUNIOR SUBORDINATED DEBENTURES (“TRUPs”) On June 15, 2005, Tri-County Capital Trust II (“Capital Trust II”), a Delaware business trust formed, funded and wholly owned by the Company, issued $5.0 million of variable-rate capital securities in a private pooled transaction. The variable rate is based on the 90-day LIBOR rate plus 1.70% . The Trust used the proceeds from this issuance, along with the $155,000 for Capital Trust II’s common securities, to purchase $5.2 million of the Company’s junior subordinated debentures. The interest rate on the debentures and the trust preferred securities is variable and adjusts quarterly. These capital securities qualify as Tier I capital and are presented in the Consolidated Balance Sheets as “Guaranteed Preferred Beneficial Interests in Junior Subordinated Debentures.” Both the capital securities of Capital Trust II and the junior subordinated debentures are scheduled to mature on June 15, 2035 , unless called by the Company. On July 22, 2004, Tri-County Capital Trust I (“Capital Trust I”), a Delaware business trust formed, funded and wholly owned by the Company, issued $7.0 million of variable-rate capital securities in a private pooled transaction. The variable rate is based on the 90-day LIBOR rate plus 2.60% . The Trust used the proceeds from this issuance, along with the Company’s $217,000 capital contribution for Capital Trust I’s common securities, to purchase $7.2 million of the Company’s junior subordinated debentures. The interest rate on the debentures and the trust preferred securities is variable and adjusts quarterly. These debentures qualify as Tier I capital and are presented in the Consolidated Balance Sheets as “Guaranteed Preferred Beneficial Interests in Junior Subordinated Debentures.” Both the capital securities of Capital Trust I and the junior subordinated debentures are scheduled to mature on July 22, 2034 , unless called by the Company. |
Subordinated Notes
Subordinated Notes | 12 Months Ended |
Dec. 31, 2018 | |
Subordinated Notes [Abstract] | |
Subordinated Notes | NOTE 18 – SUBORDINATED NOTES On February 6, 2015 the Company issued $23.0 million of unsecured 6.25% fixed to floating rate subordinated notes due February 15, 2025 (“subordinated notes”). On February 13, 2015 , the Company used proceeds of the offering to redeem all $20 million of the Company’s outstanding preferred stock issued under the Small Business Lending Fund (“SBLF”) program. The subordinated notes qualify as Tier 2 regulatory capital and replaced SBLF Tier 1 capital. The subordinated notes are not listed on any securities exchange or included in any automated dealer quotation system and there is no market for the notes. The notes are unsecured obligations and are subordinated in right of payment to all existing and future senior debt, whether secured or unsecured. The notes are not guaranteed obligations of any of the Company’s subsidiaries. Interest will accrue at a fixed per annum rate of 6.25% from and including the issue date to but excluding February 15, 2020 . From and including February 15, 2020 to but excluding the maturity date interest will accrue at a floating rate equal to the three-month LIBOR plus 479 basis points. Interest is payable on the notes on February 15 and August 15 of each year, commencing August 15, 2015, through February 15, 2020, and thereafter February 15, May 15, August 15 and November 15 of each year through the maturity date or earlier redemption date. The subordinated notes may be redeemed in whole or in part on February 15, 2020 or on any scheduled interest payment date thereafter and upon the occurrence of certain special events. The redemption price is equal to 100% of the principal amount of the subordinated notes to be redeemed plus accrued and unpaid interest to the date of redemption. Any partial redemption will be made pro rata among all holders of the subordinated notes. The subordinated notes are not subject to repayment at the option of the holders. The subordinated notes may be redeemed at any time, if (1) a change or prospective change in law occurs that could prevent the Company from deducting interest payable on the notes for U.S. federal income tax purposes, (2) a subsequent event occurs that precludes the notes from being recognized as Tier 2 Capital for regulatory capital purposes, or (3) the Company is required to register as an investment company under the Investment Company Act of 1940, as amended. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Capital [Abstract] | |
Regulatory Capital | NOTE 19 - REGULATORY CAPITAL As of December 31, 2015, the Bank was a member of the Federal Reserve System and its primary federal regulator was the Federal Reserve Board. On April 18, 2016, Community Bank of the Chesapeake, cancelled its stock in the Federal Reserve Bank of Richmond. This terminated its status as a member of the Federal Reserve System. As of that date, the Bank’s primary regulator became the Federal Deposit Insurance Corporation (“FDIC”) and is subject to regulation, supervision and regular examination by the Maryland Commissioner of Financial Regulation (the “Commissioner”) and the FDIC. The Company continues to be subject to regulation, examination and supervision by the Federal Reserve Board under the Bank Holding Company Act of 1956, as amended (the “BHCA”), and the regulations of the Federal Reserve Board. On January 1, 2015, the Company and Bank became subject to the new Basel III Capital Rules with full compliance with all of the final rule's requirements phased in over a multi-year schedule, to be fully phased-in by January 1, 2019. In July 2013, the final rules were published (the “Basel III Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations. The rules implement the Basel Committee’s December 2010 framework known as “Basel III” for strengthening international capital standards as well as certain provisions of the Dodd-Frank Act. The Basel III Capital Rules substantially revise the risk-based capital requirements applicable to bank holding companies and depository institutions compared to the previous U.S. risk-based capital rules. The Basel III Capital Rules define the components of capital and address other issues affecting the numerator in banking institutions’ regulatory capital ratios. The Basel III Capital Rules also address risk weights and other issues affecting the denominator in banking institutions’ regulatory capital ratios and replace the existing risk-weighting approach with a more risk-sensitive approach. The Basel III Capital Rules also implement the requirements of Section 939A of the Dodd-Frank Act to remove references to credit ratings from the federal banking agencies’ rules. The rules include a new common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5% , raise the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% , require a minimum ratio (“Min. Ratio”) of Total Capital to risk-weighted assets of 8.0% , and require a minimum Tier 1 leverage ratio of 4.0% . A new capital conservation buffer (“CCB”) is also established above the regulatory minimum capital requirements. This capital conservation buffer began its phase-in period beginning January 1, 2016 at 0.625% of risk-weighted assets and will increase each subsequent year by an additional 0.625% until reaching its final level of 2.5% on January 1, 2019. Strict eligibility criteria for regulatory capital instruments were also implemented under the final rules. The final rules also revise the definition and calculation of Tier 1 capital, Total Capital, and risk-weighted assets. As of December 31, 2018 and 2017, the Company and Bank were well-capitalized under the regulatory framework for prompt corrective action under the new Basel III Capital Rules. Management believes, as of December 31, 2018 and 2017, that the Company and the Bank met all capital adequacy requirements to which they were subject. The Company’s and the Bank’s regulatory capital amounts and ratios are presented in the following table. Regulatory Capital and Ratios The Company The Bank (dollars in thousands) December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Common Equity $ 154,482 $ 109,957 $ 185,073 $ 139,046 Goodwill (10,835) - (10,835) - Core Deposit intangible (net of deferred tax liability) (2,034) - (2,034) - AOCI Losses 1,847 1,191 1,847 1,191 Common Equity Tier 1 Capital 143,460 111,148 174,051 140,237 TRUPs 12,000 12,000 - - Tier 1 Capital 155,460 123,148 174,051 140,237 Allowable Reserve for Credit Losses and Other Tier 2 Adjustments 11,027 10,545 11,027 10,545 Subordinated Notes 23,000 23,000 - - Tier 2 Capital $ 189,487 $ 156,693 $ 185,078 $ 150,782 Risk-Weighted Assets ("RWA") $ 1,384,807 $ 1,169,341 $ 1,383,048 $ 1,164,478 Average Assets ("AA") $ 1,635,594 $ 1,401,741 $ 1,632,846 $ 1,398,001 2019 Regulatory Min. Ratio + CCB (1) Common Tier 1 Capital to RWA 7.00 % 10.36 % 9.51 % 12.58 % 12.04 % Tier 1 Capital to RWA 8.50 11.23 10.53 12.58 12.04 Tier 2 Capital to RWA 10.50 13.68 13.40 13.38 12.95 Tier 1 Capital to AA (Leverage) (2) n/a 9.50 8.79 10.66 10.03 (1) These are the fully phased-in ratios as of January 1, 2019 that include the minimum capital ratio ("Min. Ratio") + the capital conservation buffer ("CCB"). The phase-in period is more fully described in the footnote above. (2) Tier 1 Capital to AA (Leverage) has no capital conservation buffer defined. PCA well capitalized is defined as 5.00% . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | NOTE 20 - FAIR VALUE MEASUREMENTS The Company adopted FASB ASC Topic 820, “Fair Value Measurements” and FASB ASC Topic 825, “The Fair Value Option for Financial Assets and Financial Liabilities” , which provides a framework for measuring and disclosing fair value under generally accepted accounting principles. FASB ASC Topic 820 requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis (for example, available for sale investment securities) or on a nonrecurring basis (for example, impaired loans). FASB ASC Topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC Topic 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company utilizes fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis such as loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Under FASB ASC Topic 820, the Company groups assets and liabilities 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 the fair value. These hierarchy levels are: Level 1 inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Level 2 inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s quarterly valuation process. Transfers in and out of level 3 during a quarter are disclosed. There were no transfers between Level 1 , 2 or 3 during the year ended December 31, 2018. There was one transfer from Level 2 to Level 3 in the fair value hierarchy during the first quarter of 2017 for premises and equipment held for sale. There were no transfers between Level 1 , 2 or 3 in the fair value hierarchy for the remaining nine months of 2017. Following is a description of valuation methodologies used for assets and liabilities recorded at fair value: Securities Available for Sale Investment securities available for sale are recorded at fair value on a recurring basis. Standard inputs include quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by government sponsored entities (“GSEs”), municipal bonds and corporate debt securities. Securities classified as Level 3 include asset-backed securities in less liquid markets. Loans Receivable The Company does not record loans at fair value on a recurring basis, however, from time to time, a loan is considered impaired and an allowance for loan loss is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan are considered impaired. Management estimates the fair value of impaired loans using one of several methods, including the collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. Impaired loans not requiring a specific allowance represent loans for which the fair value of expected repayments or collateral exceed the recorded investment in such loans. At December 31, 2018 and 2017, substantially all impaired loans were evaluated based upon the fair value of the collateral. In accordance with FASB ASC 820, impaired loans where an allowance is established based on the fair value of collateral (loans with impairment) require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price (e.g., contracted sales price), the Company records the loan as nonrecurring Level 2. When the fair value of the impaired loan is derived from an appraisal, the Company records the loan as nonrecurring Level 3. Fair value is re-assessed at least quarterly or more frequently when circumstances occur that indicate a change in the fair value. The fair values of impaired loans that are not measured based on collateral values are measured using discounted cash flows and considered to be Level 3 inputs. Other Real Estate Owned (“OREO”) OREO is adjusted for fair value upon transfer of the loans to foreclosed assets. Subsequently, OREO is carried at the lower of carrying value and fair value. Fair value is based upon independent market prices, appraised value of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price (e.g., contracted sales price), the Company records the foreclosed asset as nonrecurring Level 2. When the fair value is derived from an appraisal, the Company records the foreclosed asset at nonrecurring Level 3. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The tables below present the recorded amount of assets as of December 31, 2018 and December 31, 2017 measured at fair value on a recurring basis. (dollars in thousands) December 31, 2018 Description of Asset Fair Value Level 1 Level 2 Level 3 Available for sale securities Asset-backed securities issued by GSEs and U.S. Agencies CMOs $ 100,740 $ - $ 100,740 $ - MBS 7,361 - 7,361 - U.S. Agency 11,875 - 11,875 - Total available for sale securities $ 119,976 $ - $ 119,976 $ - Equity securities carried at fair value through income CRA investment fund $ 4,428 $ - $ 4,428 $ - (dollars in thousands) December 31, 2017 Description of Asset Fair Value Level 1 Level 2 Level 3 Available for sale securities Asset-backed securities issued by GSEs and U.S. Agencies CMOs $ 44,137 $ - $ 44,137 $ - MBS 7,087 - 7,087 - U.S. Agency 12,517 - 12,517 - Bond mutual funds 4,423 - 4,423 - Total available for sale securities $ 68,164 $ - $ 68,164 $ - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The Company may be required from time to time to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. GAAP. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis as of December 31, 2018 and 2017 are included in the tables below. (dollars in thousands) December 31, 2018 Description of Asset Fair Value Level 1 Level 2 Level 3 Loans with impairment Commercial real estate $ 2,699 $ - $ - $ 2,699 Commercial loans 163 - - 163 Commercial equipment 25 - - 25 Total loans with impairment $ 2,887 $ - $ - $ 2,887 Other real estate owned $ 8,111 $ - $ - $ 8,111 (dollars in thousands) December 31, 2017 Description of Asset Fair Value Level 1 Level 2 Level 3 Loans with impairment Commercial real estate $ 1,638 $ - $ - $ 1,638 Residential first mortgages 457 - - 457 Residential rentals 377 - - 377 Construction and land development 566 - - 566 Commercial equipment 164 - - 164 Total loans with impairment $ 3,202 $ - $ - $ 3,202 Other real estate owned $ 9,341 $ - $ - $ 9,341 Loans with impairment have unpaid principal balances of $4.1 million and $4.2 million at December 31, 2018 and 2017, respectively, and include impaired loans with a specific allowance. The following tables provide information describing the unobservable inputs used in Level 3 fair value measurements. December 31, 2018 (dollars in thousands) Description of Asset Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Loans with impairment $ 2,887 Third party appraisals and in-house real estate evaluations of fair value Management discount for property type and current market conditions 0% - 50% ( 29% ) Other real estate owned $ 8,111 Third party appraisals and in-house real estate evaluations of fair value Management discount for property type and current market conditions 0% - 50% ( 14% ) December 31, 2017 (dollars in thousands) Description of Asset Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Loans with impairment $ 3,202 Third party appraisals and in-house real estate evaluations of fair value Management discount for property type and current market conditions 0% - 50% ( 24% ) Other real estate owned $ 9,341 Third party appraisals and in-house real estate evaluations of fair value Management discount for property type and current market conditions 0% -50% ( 12% ) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | NOTE 21 - FAIR VALUE OF FINANCIAL INSTRUMENTS The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Therefore, any aggregate unrealized gains or losses should not be interpreted as a forecast of future earnings or cash flows. Furthermore, the fair values disclosed should not be interpreted as the aggregate current value of the Company. Valuation Methodology During the three months ended March 31, 2018, the Company implemented “ ASU 2016-01 - Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities .” ASU 2016-01 requires public business entities to use the exit prices when measuring the fair value of financial instruments for disclosure purposes. The other requirements of ASU 2016-01 are described in Note 1. Fair values at December 31, 2018 were measured using an “exit price” notion. Prior to adopting the amendments included in the standard, the Company measured fair value under an entry price notion. The entry price notion previously applied by the Company used a discounted cash flows technique for loans, time deposits and debt, to calculate the present value of expected future cash flows for financial instruments. See the Company’s methodologies disclosed in Note 20 of the Company’s 2017 Form 10-K for the fair value methodologies used as of December 31, 2017. The exit price notion uses a similar approach as the Company’s previous methodology for valuations that used discounted cash flows, but also incorporates other factors, such as enhanced credit risk, illiquidity risk and market factors that sometimes exist in exit prices in dislocated markets. The implementation of ASU 2016-01 was most impactful to the Company’s loan portfolio because the Company’s other financial instruments have one or several other compensating factors (e.g., quoted market prices, lower credit risk, limited liquidity risk, short durations, etc.). As of December 31, 2018, the technique used by the Company to estimate the exit price of the loan portfolio consisted of similar procedures to those used as of December 31, 2017, but with added emphasis on both illiquidity risk and credit risk not captured by the previously applied entry price notion. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. The Company’s loan portfolio is initially fair valued using a segmented approach, using the eight categories as disclosed in Note 7. Loans are considered a Level 3 classification. Investment securities - Fair values are based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. FHLB stock – Fair values are at cost, which is the carrying value of the securities. Accrued Interest Receivable – Carrying amount is the estimated fair value. Investment in bank owned life insurance (“BOLI”) – Fair values are at cash surrender value. Loans receivable – The fair values for non-impaired loans are estimated using discounted cash flow analyses, applying interest rates currently being offered for loans with similar terms and credit quality. Internal prepayment risk models are used to adjust contractual cash flows. Management estimates the fair value of impaired loans using one of several methods, including the collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. After evaluating the underlying collateral, the fair value is determined by allocating specific reserves from the allowance for loan losses to the impaired loans. Deposits - The fair value of checking accounts, saving accounts and money market accounts were the amount payable on demand at the reporting date. Time certificates - The fair value was determined using the discounted cash flow method. The discount rate was equal to the rate currently offered on similar products. Long-term debt and short-term borrowings - These were valued using the discounted cash flow method. The discount rate was equal to the rate currently offered on similar borrowings. Guaranteed preferred beneficial interest in junior subordinated securities (TRUPs) - These were valued using discounted cash flows. The discount rate was equal to the rate currently offered on similar borrowings. Subordinated notes - These were valued using discounted cash flows. The discount rate was equal to the rate currently offered on similar borrowings. Off-balance sheet instruments - The Company charges fees for commitments to extend credit. Interest rates on loans for which these commitments are extended are normally committed for periods of less than one month. Fees charged on standby letters of credit and other financial guarantees are deemed to be immaterial and these guarantees are expected to be settled at face amount or expire unused. It is impractical to assign any fair value to these commitments. The Company’s estimated fair values of financial instruments are presented in the following tables. December 31, 2018 Fair Value Measurements Description of Asset (dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 119,976 $ 119,976 $ - $ 119,976 $ - Investment securities - HTM 96,271 93,745 999 92,746 - Equity securities carried at fair value through income 4,428 4,428 4,428 - Non-marketable equity securities in other financial institutions 209 209 - 209 - FHLB Stock 3,821 3,821 - 3,821 - Loans Receivable 1,337,129 1,298,465 - - 1,298,465 Accrued Interest Receivable 4,957 4,957 - 4,957 Investment in BOLI 36,295 36,295 - 36,295 - Liabilities Savings, NOW and money market accounts $ 982,600 $ 982,600 $ - $ 982,600 $ - Time deposits 447,029 446,683 - 446,683 - Long-term debt 20,436 20,568 - 20,568 - Short term borrowings 35,000 35,016 - 35,016 - TRUPs 12,000 10,924 - 10,924 - Subordinated notes 23,000 23,085 - 23,085 - December 31, 2017 Fair Value Measurements Description of Asset (dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 68,164 $ 68,164 $ - $ 68,164 $ - Investment securities - HTM 99,246 98,007 1,000 97,007 - Non-marketable equity securities in other financial institutions 121 121 121 FHLB Stock 7,276 7,276 - 7,276 - Loans Receivable 1,140,615 1,097,592 - - 1,097,592 Accrued Interest Receivable 4,511 4,511 4,511 Investment in BOLI 29,398 29,398 - 29,398 - Liabilities Savings, NOW and money market accounts $ 654,632 $ 654,632 $ - $ 654,632 $ - Time deposits 451,605 453,644 - 453,644 - Long-term debt 55,498 57,421 - 57,421 - Short term borrowings 87,500 87,208 - 87,208 - TRUPs 12,000 9,400 - 9,400 - Subordinated notes 23,000 22,400 - 22,400 - At December 31, 2018 and 2017, the Company had outstanding loan commitments and standby letters of credit of $47.3 million and $65.6 million, respectively, and $21.2 million and $17.9 million respectively. Additionally, at December 31, 2018 and 2017, customers had $211.5 million and $162.2 million, respectively, available and unused on lines of credit, which include lines of credit for commercial customers, home equity loans as well as builder and construction lines. Based on the short-term lives of these instruments, the Company does not believe that the fair value of these instruments differs significantly from their carrying values. The fair value estimates presented herein are based on pertinent information available to management as of December 31, 2018 and 2017, respectively. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and, therefore, current estimates of fair value may differ significantly from the amount presented herein. |
Condensed Financial Statements
Condensed Financial Statements - Parent Company Only | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Statements - Parent Company Only [Abstract] | |
Condensed Financial Statements - Parent Company Only | NOTE 22 - CONDENSED FINANCIAL STATEMENTS – PARENT COMPANY ONLY Balance Sheets December 31, (dollars in thousands) 2018 2017 Assets Cash - noninterest bearing $ 4,246 $ 2,812 Investment in wholly owned subsidiaries 185,445 139,418 Other assets 1,387 4,491 Total Assets $ 191,078 $ 146,721 Liabilities and Stockholders' Equity Current liabilities $ 1,224 $ 1,392 Guaranteed preferred beneficial interest in junior subordinated debentures 12,372 12,372 Subordinated notes - 6.25% 23,000 23,000 Total Liabilities 36,596 36,764 Stockholders' Equity Common stock 56 46 Additional paid in capital 84,397 48,209 Retained earnings 72,594 63,648 Accumulated other comprehensive loss (1,847) (1,191) Unearned ESOP shares (718) (755) Total Stockholders’ Equity 154,482 109,957 Total Liabilities and Stockholders’ Equity $ 191,078 $ 146,721 Condensed Statements of Income Years Ended December 31, (dollars in thousands) 2018 2017 2016 Interest and Dividend Income Dividends from subsidiary $ 6,000 $ 7,500 $ 5,500 Interest income 65 64 19 Interest expense 1,984 1,865 1,795 Net Interest Income 4,081 5,699 3,724 Miscellaneous expenses (2,818) (2,968) (2,110) Income before income taxes and equity in undistributed net income of subsidiary 1,263 2,731 1,614 Federal and state income tax benefit 1,078 1,583 1,321 Equity in undistributed net income of subsidiary 8,887 2,894 4,396 Net Income $ 11,228 $ 7,208 $ 7,331 Condensed Statements of Cash Flows Years Ended December 31, (dollars in thousands) 2018 2017 2016 Cash Flows from Operating Activities Net income $ 11,228 $ 7,208 $ 7,331 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed earnings of subsidiary (8,887) (2,894) (4,396) Stock based compensation 474 515 489 Decrease (increase) in other assets 3,109 (2,446) (145) (Increase) decrease in deferred income tax benefit (6) (29) 55 Increase (decrease) in current liabilities (168) 327 (157) Net Cash Provided by Operating Activities 5,750 2,681 3,177 Cash Flows from Investing Activities Cash paid to acquire County First Bank (2,120) - - Net Cash Provided by Investing Activities (2,120) - - Cash Flows from Financing Activities Dividends paid (2,163) (1,804) (1,814) Proceeds from public offering - - - Capital (to) from subsidiary - - 180 Exercise of stock options - 155 - Net change in unearned ESOP shares 37 (586) 147 Repurchase of common stock (70) - (865) Net Cash Used in Financing Activities (2,196) (2,235) (2,352) Increase in Cash 1,434 446 825 Cash at Beginning of Year 2,812 2,366 1,541 Cash at End of Year $ 4,246 $ 2,812 $ 2,366 |
Quarterly Financial Comparison
Quarterly Financial Comparison (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Comparison (Unaudited) [Abstract] | |
Quarterly Financial Comparison (Unaudited) | NOTE 23 - QUARTERLY FINANCIAL COMPARISON (Unaudited) 2018 Fourth Third Second First (dollars in thousands) Quarter Quarter Quarter Quarter Interest and dividend income $ 17,043 $ 16,484 $ 15,754 $ 15,892 Interest expense 4,217 3,724 3,343 3,002 Net interest income 12,826 12,760 12,411 12,890 Provision for loan losses 465 40 400 500 Net interest income after provision 12,361 12,720 12,011 12,390 Noninterest income 1,067 1,069 901 1,031 Noninterest expense 8,240 8,491 9,750 11,668 Income before income taxes 5,188 5,298 3,162 1,753 Provision for income taxes 1,371 1,441 828 533 Net Income Available to Common Stockholders $ 3,817 $ 3,857 $ 2,334 $ 1,220 Earnings Per Common Share 1 Basic $ 0.69 $ 0.70 $ 0.42 $ 0.22 Diluted $ 0.69 $ 0.70 $ 0.42 $ 0.22 2017 Fourth Third Second First (dollars in thousands) Quarter Quarter Quarter Quarter Interest and dividend income $ 13,573 $ 13,680 $ 13,395 $ 12,922 Interest expense 2,800 2,672 2,462 2,248 Net interest income 10,773 11,008 10,933 10,674 Provision for loan losses 30 224 376 380 Net interest income after provision 10,743 10,784 10,557 10,294 Noninterest income 993 1,157 1,043 848 Noninterest expense 7,739 7,442 7,521 7,352 Income before income taxes 3,997 4,499 4,079 3,790 Provision for income taxes 4,456 1,717 1,536 1,448 Net (Loss) Income Available to Common Stockholders $ (459) $ 2,782 $ 2,543 $ 2,342 Preferred stock dividends - - - - Earnings Per Common Share 1 Basic $ (0.10) $ 0.60 $ 0.55 $ 0.51 Diluted $ (0.10) $ 0.60 $ 0.55 $ 0.51 2016 Fourth Third Second First (dollars in thousands) Quarter Quarter Quarter Quarter Interest and dividend income $ 12,584 $ 12,223 $ 11,928 $ 11,312 Interest expense 2,111 2,079 2,033 1,919 Net interest income 10,473 10,144 9,895 9,393 Provision for loan losses 670 698 564 427 Net interest income after provision 9,803 9,446 9,331 8,966 Noninterest income 887 839 1,225 845 Noninterest expense 7,312 7,308 7,740 7,235 Income before income taxes 3,378 2,977 2,816 2,576 Provision for income taxes 1,356 1,014 1,078 968 Net Income Available to Common Stockholders $ 2,022 $ 1,963 $ 1,738 $ 1,608 Preferred stock dividends - - - - Earnings Per Common Share 1 Basic $ 0.44 $ 0.43 $ 0.38 $ 0.35 Diluted $ 0.44 $ 0.42 $ 0.38 $ 0.35 (1) Earnings per share are based upon quarterly results and, when added, may not total the annual earnings per share amounts. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of The Community Financial Corporation and its wholly owned subsidiary Community Bank of the Chesapeake (the “Bank”), and the Bank’s wholly owned subsidiary Community Mortgage Corporation of Tri-County (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America and to general practices within the banking industry. |
Reclassification | Reclassification Certain items in prior financial statements have been reclassified to conform to the current presentation. Following our adoption of ASU 2016-01 - Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities on January 1, 2018, the Company accounts for its investment in equity securities with a readily determinable fair value with unrealized gains and losses included in earnings. $19,000 was reclassified from Accumulated Other Comprehensive Income (“AOCI”) into Retained Earnings. The Company adopted ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” for the year ended December 31, 2017. In accordance with ASU 2018-02, we elected to reclassify certain income tax effects related to the change in the U.S. statutory federal income tax rate under the Tax Cuts and Jobs Act, which was enacted on December 22, 2017 (see Note 13 - Income Taxes), from accumulated other comprehensive income to retained earnings. Additionally, OREO gains of $43,000 for the year ended December 31, 2017 and OREO losses of $436,000 for the year ended December 31, 2016 were reclassified from noninterest income to noninterest expense. OREO related income and expenses are presented in the OREO valuation allowance and expenses financial statement line. |
Nature of Operations | Nature of Operations The Company provides a variety of financial services to individuals and businesses through its offices in Southern Maryland and Annapolis, Maryland, and Fredericksburg, Virginia. Its primary deposit products are demand, savings and time deposits, and its primary lending products are commercial and residential mortgage loans, commercial loans, construction and land development loans, home equity and second mortgages and commercial equipment loans. The Bank is headquartered in Southern Maryland with 12 branches located in Maryland and Virginia. The Bank is a wholly owned subsidiary of The Community Financial Corporation (the “Company”). The Bank’s branches are located in Waldorf ( two branches), Bryans Road, Dunkirk, Leonardtown, La Plata ( two branches), Charlotte Hall, Prince Frederick, Lusby, California, Maryland; and Fredericksburg, Virginia. The Bank has two operation centers located at the main office in Waldorf, Maryland and in Fredericksburg, Virginia. The Company maintains five loan production offices (“LPOs”) in Annapolis, La Plata, Prince Frederick and Leonardtown, Maryland; and Fredericksburg, Virginia. The Leonardtown LPO is co-located with the branch and the Fredericksburg LPO is co-located with the operation center. The Company closed its Central Park Fredericksburg branch during the third quarter of 2017. On January 1, 2018, t he Company completed the acquisition of County First Bank (“County First”) after r egulatory approval and County First shareholder approvals were obtained. The Company’s assets increased to $1.6 billion during the first quarter of 2018. See Note 2 – Business Combination and Goodwill for additional information. |
Use of Estimates | Use of Estimates In preparing Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America, 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, the valuation of OREO, the valuation of goodwill and deferred tax assets. |
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located in the Fredericksburg area of Virginia and the Southern Maryland counties of Calvert, Charles and St. Mary’s. Notes 6 and 7 discuss the types of securities and loans held by the Company. The Company does not have significant concentration in any one customer or industry. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of three months or less when purchased to be cash equivalents. |
Securities | Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity (“HTM”) and recorded at amortized cost. Securities purchased and held principally for trading in the near term are classified as “trading securities” and are reported at fair value, with unrealized gains and losses included in earnings. The Company held no trading securities for the years ended December 31, 2018, 2017, and 2016. Securities not classified as held to maturity or trading securities are classified as available for sale (“AFS”) and recorded at estimated fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Equity securities with readily determinable fair values are recorded at fair value with unrealized gains and losses included in noninterest income in the consolidated statements of income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the estimated fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other than temporary impairment losses, management considers: (1) the length of time and the extent to which the fair value has been less than cost; (2) the financial condition and near-term prospects of the issuer; and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Investments in Federal Reserve Bank and Federal Home Loan Bank of Atlanta stocks are recorded at cost and are considered restricted as to marketability. The Bank is required to maintain investments in the Federal Home Loan Bank based upon levels of borrowings. Debt securities are evaluated quarterly to determine whether a decline in their value is other-than-temporary impairment (“OTTI”). The term other-than-temporary is not necessarily intended to indicate a permanent decline in value. It means that the prospects for near term recovery of value are not necessarily favorable, or that there is a lack of evidence to support fair values equal to, or greater than, the carrying value of the investment. Under accounting guidance, for recognition and presentation of other-than-temporary impairments the amount of other-than-temporary impairment that is recognized through earnings for debt securities is determined by comparing the present value of the expected cash flows to the amortized cost of the security. The discount rate used to determine the credit loss is the expected book yield on the security. The Company does not evaluate declines in the value of securities of Government Sponsored Enterprises (“GSEs”) or investments backed by the full faith and credit of the United States government (e.g. US Treasury Bills), for other-than-temporary impairment. |
Loans Held for Sale | Loans Held for Sale Residential mortgage loans intended for sale in the secondary market are carried at the lower of cost or estimated fair value, in the aggregate. Fair value is derived from secondary market quotations for similar instruments. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Residential mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. The carrying value of mortgage loans sold is reduced by the cost allocated to the associated servicing rights. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold, using the specific identification method. The Company exited the residential mortgage origination line of business in April 2015 for individual owner occupied residential first mortgages and established third party sources to supply its residential whole loan portfolio. The Company continues to underwrite loans for non-owner occupied residential rental properties. T he Company may sell certain loans forward into the secondary market at a specified price with a specified date on a best efforts basis. These forward sales are derivative financial instruments. The Company does not recognize gains or losses due to interest rate changes for loans sold forward on a best efforts basis. The Bank had no loans held for sale at December 31, 2018 and 2017, respectively., and sold no 1-4 family residential mortgage loans for the year ended December 31, 2018. |
Loans Receivable | Loans Receivable The Company originates real estate mortgages, construction and land development loans, commercial loans and consumer loans. The Company purchases residential owner-occupied first mortgages from established third-parties. A substantial portion of the loan portfolio is comprised of loans throughout Southern Maryland and the Fredericksburg area of Virginia. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in this area. Loans that the Company has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding unpaid principal balances, adjusted for the allowance for loan losses and any deferred fees or premiums. Interest income is accrued on the unpaid principal balance. Loan origination fees and premiums, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered credit impaired. Evidence of credit quality deterioration as of the purchase date may include statistics such as internal risk grade, past due and nonaccrual status, recent borrower credit scores and recent loan-to-value (“LTV”) percentages. Purchased credit-impaired (“PCI”) loans are initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. We estimate the cash flows expected to be collected at acquisition using specific credit review of certain loans, quantitative credit risk, interest rate risk and prepayment risk models, and qualitative economic and environmental assessments, each of which incorporate our best estimate of current key relevant factors, such as property values, default rates, loss severity and prepayment speeds. Under the accounting guidance for PCI loans, the excess of the total cash flows expected to be collected over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan, or pool of loans, in situations where there is a reasonable expectation about the timing and amount of cash flows to be collected. The difference between the contractually required payments and the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the nonaccretable difference and is available to absorb future charge-offs. In addition, subsequent to acquisition, we periodically evaluate our estimate of cash flows expected to be collected. These evaluations require the continued usage of key assumptions and estimates, similar to the initial estimate of fair value. Estimates of cash flows for PCI loans require significant judgment given the impact of property value changes, changing loss severities, prepayment speeds and other relevant factors. Decreases in the expected cash flows will generally result in a charge to the provision for loan losses resulting in an increase to the allowance for loan losses. Significant increases in the expected cash flows will generally result in an increase in interest income over the remaining life of the loan, or pool of loans. Disposals of loans, which may include sales of loans to third parties, receipt of payments in full or part from the borrower or foreclosure of the collateral, result in removal of the loan from the PCI loan portfolio at its carrying amount. Loans are reviewed on a regular basis and are placed on non-accrual status when, in the opinion of management, the collection of additional interest is doubtful. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well secured and in the process of collection. Non-accrual loans include certain loans that are current with all loan payments and are placed on non-accrual status due to customer operating results and cash flows. Non-accrual loans are evaluated for impairment on a loan-by-loan basis in accordance with the Company’s impairment methodology. Interest is recognized on non-accrual loans on a cost recovery or cash-basis. Consumer loans are typically charged-off no later than 90 days past due. Mortgage and commercial loans are fully or partially charged-off when in management’s judgment all reasonable efforts to return a loan to performing status have occurred. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected from loans that are placed on non-accrual 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 principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for Loan Losses and Impaired Loans | Allowance for Loan Losses and Impaired Loans The allowance for loan losses is established as probable losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes that the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans considering historical experience, the composition and size of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance for loan losses consists of a general and a specific component. The general component is based upon historical loss experience and a review of qualitative risk factors by portfolio segment (See Note 7 for a description of portfolio segments). The historical loss experience factor is tracked over various time horizons for each portfolio segment. The Company considers qualitative factors in addition to the loss experience factor. These include trends by portfolio segment in charge-offs, delinquencies, classified loans, loan concentrations and the rate of portfolio segment growth. Qualitative factors also include an assessment of the current regulatory environment, the quality of credit administration and loan portfolio management and national and local economic trends. The specific component of the allowance for loan losses relates to individual impaired loans with an identified impairment loss. The Company evaluates substandard and doubtful classified loans, loans delinquent 90 days or greater, non-accrual loans and troubled debt restructured loans (“TDRs”) to determine whether a loan is impaired. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration the circumstances surrounding the loan. These circumstances include the length of the delay, the reasons for the delay, the borrower’s payment record and the amount of the shortfall in relation to the principal and interest owed. Loans not impaired are included in the pool of loans evaluated in the general component of the allowance. If a specific loan is deemed to be impaired, it is evaluated for impairment. Impairment is measured on a loan-by-loan basis by the fair value of the collateral, if the loan is collateral dependent. An allowance is established when the collateral value of the impaired loan is lower than carrying value of the loan. TDRs are loans that have been modified to provide for a reduction or a delay in the payment of either interest or principal because of deterioration in the financial condition of the borrower. A loan extended or renewed at a stated interest rate equal to the current interest rate for new debt with similar risk is not considered a TDR. Once an obligation has been classified as a TDR it continues to be considered a TDR until paid in full or until the debt is refinanced and considered unimpaired. All TDRs are considered impaired and are evaluated for impairment on a loan-by-loan basis. The Company does not participate in any specific government or Company-sponsored loan modification programs. All restructured loan agreements are individual contracts negotiated with a borrower. |
Servicing | Servicing Servicing assets are recognized as separate assets when rights are acquired through the purchase or sale of financial assets. Generally, purchased servicing rights are capitalized at the cost to acquire the rights. For sales of mortgage loans, a portion of the cost of originating the loan is allocated to the servicing based on relative estimated fair value. Estimated fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the estimated fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranche. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Premises, improvements and equipment are carried at cost, less accumulated depreciation and amortization, computed by the straight-line method over the estimated useful lives of the assets, which are as follows: Buildings and Improvements: 10 to 50 years Furniture and Equipment: three to 15 years Automobiles: four to five years Maintenance and repairs are charged to expense as incurred, while improvements that extend the useful life of premises and equipment are capitalized. |
Other Real Estate Owned ("OREO") | Other Real Estate Owned (“OREO”) Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the estimated fair value at the date of foreclosure less selling costs, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management, and the assets are carried at the lower of carrying amount or estimated fair value less the cost to sell. Based on updated valuations, the Bank has the ability to reverse a valuation allowance that was recorded subsequent to the initial carrying value up to the amount of the initial recorded carrying value (initial cost basis). Revenues and expenses from operations and changes in the valuation allowance are included in noninterest expense. Gains or losses on disposition are included in noninterest expense. |
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; (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. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. Goodwill is assigned to reporting units and tested for impairment at least annually in the fourth quarter or on an interim basis if an event occurs or circumstances changed that would more likely than not reduce the fair value of the reporting unit below its carrying value. See Note 2 – Business Combinations and Goodwill. Intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. Our intangible assets relate to core deposits. Intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. Intangible assets with indefinite useful lives are not amortized until their lives are determined to be definite. Intangible assets, premises and equipment and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. See Note 2 - Business Combinations and Goodwill. |
Business Combinations | Business Combinations Accounting principles generally accepted in the United States (U.S. GAAP) requires that the acquisition method of accounting be used for all business combinations and that an acquirer be identified for each business combination. Under U.S. GAAP, the acquirer is the entity that obtains control of one or more businesses in the business combination, and the acquisition date is the date the acquirer achieves control. U.S. GAAP requires that the acquirer recognize the fair value of assets acquired, liabilities assumed, and any non-controlling interest in the acquiree at the acquisition date. The Company determines the fair values of loans, core deposit intangible, and deposits with the assistance of a third-party vendor. Loans acquired in business combinations are recorded in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, “Business Combinations.” Accordingly, acquired loans are segregated between purchase credit impaired (“PCI”) loans (ASC 310-30) and Non-PCI loans (ASC-310-20) and are recorded at fair value without the carryover of the related allowance for loan losses. For PCI loans, the excess of expected cash flows above the fair value will be accreted to interest income over the remaining lives of the loans in accordance with FASB ASC 310-30. For Non-PCI loans, the total discount/premium will be accreted to interest income over the remaining lives of the loans in accordance with FASB ASC 310-20. |
Advertising Costs | A dvertising Costs The Company expenses advertising costs as incurred. |
Income Taxes | Income Taxes The Company files a consolidated federal income tax return with its subsidiaries. Deferred tax assets and liabilities are determined using the liability (or balance sheet) method. 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 and when it is considered more likely than not that deferred tax assets will be realized. It is the Company’s policy to recognize accrued interest and penalties related to unrecognized tax benefits as a component of tax expense. |
Off Balance Sheet Credit Related Financial Instruments | Off Balance Sheet Credit Related Financial Instruments In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under commercial lines of credit, letters of credit and standby letters of credit. Such financial instruments are recorded when they are funded. |
Stock-Based Compensation | Stock-Based Compensation The Company has stock-based incentive arrangements to attract and retain key personnel in order to promote the success of the business. In May 2015, the 2015 Equity Compensation Plan (the “2015 plan”) was approved by shareholders, which authorizes the issuance of restricted stock, stock appreciation rights, stock units and stock options to the Board of Directors and key employees. Compensation cost for all stock-based awards is measured at fair value on date of grant and recognized over the vesting period. Such value is recognized as expense over the service period, net of estimated forfeitures. The estimation of stock awards that ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. The Company considers many factors when estimating expected forfeitures, including types of awards, employee class and historical experience. The Company and the Bank currently maintain incentive compensation plans which provide for payments to be made in cash or other share-based compensation. The Company has accrued the full amounts due under these plans. |
Earnings Per Common Share ("EPS") | Earnings Per Common Share (“EPS”) Basic earnings per common share represent income available to common stockholders, divided by the weighted average number of common shares outstanding during the period. Unencumbered shares held by the Employee Stock Ownership Plan (“ESOP”) are treated as outstanding in computing earnings per share. Shares issued to the ESOP but pledged as collateral for loans obtained to provide funds to acquire the shares are not treated as outstanding in computing earnings per share. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential dilutive common shares are determined using the treasury stock method and include incremental shares issuable upon the exercise of stock options and other share-based compensation awards. The Company excludes from the diluted EPS calculation anti-dilutive options, because the exercise price of the options were greater than the average market price of the common shares. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers.” On January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09 and all subsequent ASUs that modified ASU 2014-09, which have been codified in ASC Topic 606. Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Adoption of the amendments to the revenue recognition principles, did not materially change our accounting policies |
Comprehensive Income | Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as components of comprehensive income as a separate statement in the Consolidated Statements of Comprehensive Income. Additionally, the Company discloses accumulated other comprehensive income as a separate component in the equity section of the balance sheet. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”). ASU 2014-09 - Revenue from Contracts with Customers . In May 2014, the FASB issued ASU 2014-09 which is a new standard related to revenue recognition. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration the entity expects to receive in exchange for those good or services. This new standard supersedes and replaces nearly all existing revenue recognition guidance, establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized over time or at a point in time, provides new and more detailed guidance on specific topics and expands and improves disclosures about revenue. In addition, this new standard specifies the accounting for some costs to obtain or fulfill a contract with a customer. The amendments in this update became effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. Effective January 1, 2018, the Company adopted the new standard. The Company’s revenue streams that are in-scope from the update include: financed OREO sales; service charges on deposit accounts, including ATM fees, overdraft fees and wealth management income. Our revenue from customer contracts are fees assessed and collected as the transaction occurs. The adoption of ASC 606 did not result in a change to the accounting for any of the in-scope revenue streams; as such, no cumulative effect adjustment was recorded. ASU 2016-01 - Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (viii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. ASU 2016-01 became effective for us on January 1, 2018. Upon adoption, the new pronouncement did not have a significant impact on our consolidated statements of income as we had only one equity security that was valued at $4.4 million on January 1, 2018. At December 31, 2018, the exit price observations for the loan portfolio were determined with the assistance from an independent third-party using its proprietary valuation model and methodology and may not reflect actual or prospective market valuations. The valuation is based on the probability of default, loss given default, recovery delay, prepayment, and discount rate assumptions. The new methodology is a result of the adoption of ASU 2016-01. ASU 2016-02 - Leases (Topic 842 ). In February 2016, the FASB amended existing guidance that requires lessees 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. Leases will be classified as either finance or operating with classification affecting the pattern of expense recognition in the income statement. Under the new guidance, lessor accounting is largely unchanged. ASU 2016-02 will be effective for us on January 1, 2019 and initially required transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842) – Targeted Improvements,” which, among other things, provides an additional transition method that would allow entities to not apply the guidance in ASU 2016-02 in the comparative periods presented in the financial statements and instead recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In December 2018, the FASB also issued ASU 2018-20, “Leases (Topic 842) - Narrow-Scope Improvements for Lessors,” which provides for certain policy elections and changes lessor accounting for sales and similar taxes and certain lessor costs. Upon adoption of ASU 2016-02, ASU 2018-11 and ASU 2018-20 on January 1, 2019, we expect to recognize right-of-use assets and related lease liabilities of approximately $8 - $11 million. We expect to elect to apply certain practical expedients provided under ASU 2016-02 whereby we will not reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for any existing leases. We also do not expect to apply the recognition requirements of ASU 2016-02 to any short-term leases (as defined by related accounting guidance). We expect to account for lease and non-lease components separately because such amounts are readily determinable under our lease contracts and because we expect this election will result in a lower impact on our balance sheet. We expect to utilize the modified-retrospective transition approach prescribed by ASU 2018-11. ASU 2016-13 – Financial Instruments – Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for Purchase Credit Impaired (“PCI”) debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company has formed a CECL committee with representation from various departments. The committee has selected a third-party vendor solution to assist us in the application of the ASU 2016-13. The committee is currently working through the implementation plan which includes assessment and documentation of processes, internal controls and data sources; model development and documentation; and system configuration, among other things. The adoption of the ASU 2016-13 could result in an increase or decrease in the allowance for loan losses as a result of changing from an “incurred loss” model to an “expected loss” model. Furthermore, ASU 2016-13 will necessitate that we establish an allowance for expected credit losses for certain debt securities and other financial assets. While we are currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption will be significantly influenced by the composition, characteristics, and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date. The committee is continuing to evaluate the provisions of ASU 2016-13 to determine the potential impact the new standard will have on the company’s consolidated financial statements. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019, early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. This new standard will be effective for us beginning January 1, 2020. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective. ASU 2016-15 – Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 is intended to reduce diversity in practice in how eight particular transactions are classified in the statement of cash flows. ASU 2016-15 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, provided that all of the amendments are adopted in the same period. Entities will be required to apply the guidance retrospectively. If it is impracticable to apply the guidance retrospectively for an issue, the amendments related to that issue would be applied prospectively. As this guidance only affects the classification within the statement of cash flows, ASU 2016-15 did not to have a material impact on the company's consolidated financial statements. ASU 2016-16 - Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory. ASU 2016-16 provides guidance stating that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 was effective for us on January 1, 2018 and did not have a significant impact on our financial statements. ASU 2017-01 - Business Combinations (Topic 805) - Clarifying the Definition of a Business. ASU 2017-01 clarifies the definition and provides a more robust framework to use in determining when a set of assets and activities constitutes a business. ASU 2017-01 is intended to provide guidance when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 was effective for us on January 1, 2018 and did not have a significant impact on our financial statements as the transaction to acquire County First Bank was already clearly within the scope of ASC 805 Business Combinations. ASU 2017-04 - Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates Step 2 from the goodwill impairment test which required entities to compute the implied fair value of goodwill. Under ASU 2017-04, 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 should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 will be effective for us on January 1, 2020, with earlier adoption permitted and is not expected to have a significant impact on our financial statements. ASU 2017-05 - Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) - Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. ASU 2017-05 clarifies the scope of Subtopic 610-20 and adds guidance for partial sales of nonfinancial assets, including partial sales of real estate. Historically, U.S. GAAP contained several different accounting models to evaluate whether the transfer of certain assets qualified for sale treatment. ASU 2017-05 reduces the number of potential accounting models that might apply and clarifies which model does apply in various circumstances. ASU 2017-05 was effective for us on January 1, 2018 and did not have a significant impact on our financial statements. ASU 2017-08 - Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) - Premium Amortization on Purchased Callable Debt Securities.” ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium to require such premiums to be amortized to the earliest call date unless applicable guidance related to certain pools of securities is applied to consider estimated prepayments. Under prior guidance, entities were generally required to amortize premiums on individual, non-pooled callable debt securities as a yield adjustment over the contractual life of the security. ASU 2017-08 does not change the accounting for callable debt securities held at a discount. ASU 2017-08 will be effective for us on January 1, 2019, with early adoption permitted. We are currently evaluating the potential impact of ASU 2017-08 on our financial statements. ASU 2017-09 - Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting. ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. Under ASU 2017-09, an entity will not apply modification accounting to a share-based payment award if all of the following are the same immediately before and after the change: (i) the award's fair value, (ii) the award's vesting conditions and (iii) the award's classification as an equity or liability instrument. ASU 2017-09 was effective for us on January 1, 2018 and did not have a significant impact on our financial statements. ASU 2018-02 - Income Statement – Reporting Comprehensive Income (Topic 220) On December 22, 2017, the Tax Cuts and Job Act (Tax Act) was signed into law. Under current U.S. GAAP, deferred tax assets and liabilities are to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the reporting period that includes the enactment date. This accounting treatment resulted in the tax effect of items within accumulated other comprehensive income (loss) not reflecting the appropriate tax rate. This ASU allows stranded tax effects resulting from the Tax Act to be reclassified from accumulated other comprehensive income (loss) to retained earnings. The Company early adopted this guidance during the quarter ended December 31, 2017, resulting in a reclassification of $196,000 from accumulated other comprehensive loss to retained earnings to adjust the tax effect of items within accumulated other comprehensive loss to reflect the newly enacted federal corporate income tax rate. Refer to Note 3, Accumulated Other Comprehensive Income, for additional information. ASU 2018-07 - Compensation-Stock Compensation (Topic 718). The ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is in the process of evaluating the impact of this standard but does not expect this standard to have a material impact on its results of operations, financial position and liquidity. ASU 2018-11 - Leases - Targeted Improvements . This ASU provide entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU No. 2016-02. Specifically, under the amendments in ASU 2018-11: (1) entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments have the same effective date as ASU 2016-02 (January 1, 2019 for the Company). The Company elected both transition options. ASU 2018-13 - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . In August 2018, the FASB issued ASU No. 2018-13. This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. Entities are also allowed to early adopt any eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. As ASU No. 2018-13 only revises disclosure requirements, it will not have a material impact on the Company’s consolidated financial statements. |
Business Combination and Inta_2
Business Combination and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Assets acquired and liabilities assumed recognized at the acquisition date | (dollars in thousands) As Recorded by County First Fair Value and Other Merger Related Adjustments As Recorded by the Company Consideration Paid Cash $ 2,122 Common shares issued 35,620 Fair Value of Total Consideration Transferred $ 37,742 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 34,409 $ - $ 34,409 Securities 38,861 (659) 38,202 Loans, net of allowance 142,404 (1,654) 140,750 Premises and equipment 2,980 181 3,161 Core deposit intangibles - 3,590 3,590 Interest receivable 513 (12) 501 Bank owned life insurance 6,275 - 6,275 Deferred tax asset 639 (426) 213 Other assets 586 - 586 Total assets acquired $ 226,667 $ 1,020 $ 227,687 Deposits $ 199,210 $ 18 $ 199,228 Other liabilities 1,449 103 1,552 Total liabilities assumed $ 200,659 $ 121 $ 200,780 Net identifiable assets acquired $ 26,008 $ 899 $ 26,907 Goodwill resulting from acquisition $ 10,835 |
Schedule of estimated amortization expense | Estimated amortization expense for each of the next five years: (dollars in thousands) 2019 $ 688 2020 591 2021 495 2022 398 2023 302 $ 2,474 |
Schedule of acquired intangible assets | As of December 31, 2018 As of December 31, 2017 (dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Intangible Asset Gross Carrying Amount Accumulated Amortization Net Intangible Asset Core deposit intangibles $ 3,590 $ (784) $ 2,806 $ - $ - $ - |
Proforma Results | Proforma Results for the Years Ended December 31, 2017 (dollars in thousands, except per share amounts) The Community Financial Corporation Actual County First Actual Proforma December, 2017 Actual Results Year Ended December 31, 2018 Total revenues (net interest income plus noninterest income) $ 47,429 $ 8,812 $ 56,241 $ 54,955 Net income 7,208 926 8,134 11,228 Basic earnings per common share $ 1.56 $ 1.01 $ 1.47 $ 2.02 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Comprehensive Income (Loss) | The following table presents the components of comprehensive (loss) income for the years ended December 31, 2018, 2017 and 2016. The Company’s comprehensive gains and losses and reclassification adjustments were solely for securities for the years ended December 31, 2018, 2017 and 2016. Reclassification adjustments are recorded in non-interest income. Years Ended December 31, 2018 December 31, 2017 December 31, 2016 (dollars in thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Net unrealized holding gains (losses) arising during period $ (879) $ (242) $ (637) $ (103) $ (41) $ (62) $ (1,095) $ (433) $ (662) Reclassification adjustments - - - (8) (3) (5) (22) (7) (15) Other comprehensive (loss) income $ (879) $ (242) $ (637) $ (111) $ (44) $ (67) $ (1,117) $ (440) $ (677) |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in each component of accumulated other comprehensive (loss) income, net of tax, for the years ended December 31, 2018, 2017 and 2016. Year Ended December 31, 2018 Year Ended December 31, 2017 Year Ended December 31, 2016 (dollars in thousands) Net Unrealized Gains And Losses Net Unrealized Gains And Losses Net Unrealized Gains And Losses Beginning of period $ (1,191) $ (928) $ (251) Other comprehensive gains (losses), net of tax before reclassifications (637) (62) (662) Amounts reclassified from accumulated other comprehensive loss - (5) (15) Net other comprehensive (loss) income (637) (67) (677) Reclassification due to Accounting Standard Updates (ASU 2016-01 & 2018-02) (19) (196) - End of period $ (1,847) $ (1,191) $ (928) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | B asic and diluted earnings per share have been computed based on weighted-average common and common equivalent shares outstanding as follows: Years Ended December 31, (dollars in thousands) 2018 2017 2016 Net Income $ 11,228 $ 7,208 $ 7,331 Average number of common shares outstanding 5,550,510 4,627,776 4,599,502 Dilutive effect of common stock equivalents - 1,452 - Average number of shares used to calculate diluted EPS 5,550,510 4,629,228 4,599,502 Earnings Per Common Share Basic $ 2.02 $ 1.56 1.59 Diluted 2.02 1.56 1.59 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Securities | December 31, 2018 Amortized Gross Unrealized Gross Unrealized Estimated (dollars in thousands) Cost Gains Losses Fair Value Securities available for sale (AFS) Asset-backed securities issued by GSEs and U.S. Agencies Residential Mortgage Backed Securities ("MBS") $ 7,641 $ 1 $ 281 $ 7,361 Residential Collateralized Mortgage Obligations ("CMOs") 102,411 199 1,870 100,740 U.S. Agency 12,472 9 606 11,875 Total securities available for sale $ 122,524 $ 209 $ 2,757 $ 119,976 Securities held to maturity (HTM) Asset-backed securities issued by GSEs and U.S. Agencies Residential MBS $ 25,948 $ 75 $ 756 $ 25,267 Residential CMOs 52,375 64 1,360 51,079 U.S. Agency 10,508 7 404 10,111 Asset-backed securities issued by Others: Residential CMOs 482 - 41 441 Callable GSE Agency Bonds 5,009 - 110 4,899 Certificates of Deposit Fixed 950 - - 950 U.S. government obligations 999 - 1 998 Total securities held to maturity $ 96,271 $ 147 $ 2,672 $ 93,745 Equity securities carried at fair value through income CRA investment fund $ 4,428 $ - $ - $ 4,428 Non-marketable equity securities Other equity securities $ 209 $ - $ - $ 209 December 31, 2017 Amortized Gross Unrealized Gross Unrealized Estimated (dollars in thousands) Cost Gains Losses Fair Value Securities available for sale (AFS) Asset-backed securities issued by GSEs and U.S. Agencies Residential MBS $ 7,265 $ - $ 178 $ 7,087 Residential CMOs 45,283 12 1,158 44,137 U.S. Agency 12,863 - 346 12,517 Bond mutual funds 4,397 26 - 4,423 Total securities available for sale $ 69,808 $ 38 $ 1,682 $ 68,164 Securities held to maturity (HTM) Asset-backed securities issued by GSEs and U.S. Agencies Residential MBS $ 29,113 $ 135 $ 261 $ 28,987 Residential CMOs 54,805 62 845 54,022 U.S. Agency 8,660 - 235 8,425 Asset-backed securities issued by Others: Residential CMOs 651 - 52 599 Callable GSE Agency Bonds 5,017 - 43 4,974 U.S. government obligations 1,000 - - 1,000 Total securities held to maturity $ 99,246 $ 197 $ 1,436 $ 98,007 Non-marketable equity securities Other equity securities $ 121 $ - $ - $ 121 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of debt securities at December 31, 2018 by contractual maturity, are shown below. The Company has allocated the asset-backed securities into the four maturity groups listed below using the expected average life of the individual securities based on statistics provided by industry sources. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. December 31, 2018 Available for Sale Held to Maturity (dollars in thousands) Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Within one year U.S. government obligations $ - $ - $ 999 $ 999 Asset-backed securities & U.S. Agencies Within one year 19,719 19,309 19,862 23,965 Over one year through five years 59,732 58,490 41,013 37,408 Over five years through ten years 33,788 33,085 22,422 20,451 After ten years 9,285 9,092 11,975 10,922 Total asset-backed securities 122,524 119,976 95,272 92,746 $ 122,524 $ 119,976 $ 96,271 $ 93,745 |
Credit Quality of Asset-Backed Securities and Agency Bonds | The tables below present the Standard & Poor’s (“S&P”) or equivalent credit rating from other major rating agencies for AFS and HTM asset-backed securities issued by GSEs and U.S. Agencies and others or bonds issued by GSEs or U.S. government agencies at December 31, 2018 and 2017 by carrying value. The Company considers noninvestment grade securities rated BB+ or lower as classified assets for regulatory and financial reporting. GSE asset-backed securities and GSE agency bonds with S&P AA+ ratings were treated as AAA based on regulatory guidance. December 31, 2018 December 31, 2017 Credit Rating Amount Credit Rating Amount (dollars in thousands) AAA $ 215,764 AAA $ 162,336 BB 483 BB 651 B+ - B+ - Total $ 216,247 Total $ 162,987 |
Available-For-Sale Securities [Member] | |
Schedule of Unrealized Loss on Investments | AFS Securities Gross unrealized losses and estimated fair value by length of time that the individual AFS securities have been in a continuous unrealized loss position at December 31, 2018 and 2017 were as follows: December 31, 2018 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs and U.S. Agencies $ 30,095 $ 163 $ 54,846 $ 2,594 $ 84,941 $ 2,757 $ 30,095 $ 163 $ 54,846 $ 2,594 $ 84,941 $ 2,757 December 31, 2017 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs and U.S. Agencies $ 24,571 $ 328 $ 38,428 $ 1,354 $ 62,999 $ 1,682 $ 24,571 $ 328 $ 38,428 $ 1,354 $ 62,999 $ 1,682 |
Held-To-Maturity Securities [Member] | |
Schedule of Unrealized Loss on Investments | HTM Securities Gross unrealized losses and estimated fair value by length of time that the individual HTM securities have been in a continuous unrealized loss position at December 31, 2018 and 2017 were as follows: December 31, 2018 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs and U.S. Agencies $ 6,955 $ 38 $ 70,752 $ 2,483 $ 77,707 $ 2,521 Callable GSE Agency Bonds - - 4,899 110 4,899 110 Asset-backed securities issued by Others - - 441 41 441 41 $ 6,955 $ 38 $ 76,092 $ 2,634 $ 83,047 $ 2,672 December 31, 2017 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs and U.S. Agencies $ 36,607 $ 254 $ 45,119 $ 1,130 $ 81,726 $ 1,384 Asset-backed securities issued by Others - - 599 52 599 52 $ 36,607 $ 254 $ 45,718 $ 1,182 $ 82,325 $ 1,436 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Loans [Abstract] | |
Schedule of Loans Receivable | Loans consist of the following: December 31, 2018 December 31, 2017 (dollars in thousands) PCI All other loans** Total % of Gross Loans Total % of Gross Loans Commercial real estate $ 1,785 $ 876,231 $ 878,016 65.18% $ 727,314 63.25% Residential first mortgages 466 156,243 156,709 11.63% 170,374 14.81% Residential rentals 897 123,401 124,298 9.23% 110,228 9.58% Construction and land development - 29,705 29,705 2.21% 27,871 2.42% Home equity and second mortgages 72 35,489 35,561 2.64% 21,351 1.86% Commercial loans - 71,680 71,680 5.32% 56,417 4.91% Consumer loans - 751 751 0.06% 573 0.05% Commercial equipment - 50,202 50,202 3.73% 35,916 3.12% Gross loans 3,220 1,343,702 1,346,922 100.00% 1,150,044 100.00% Net deferred costs (fees) - 1,183 1,183 0.09% 1,086 0.09% Total loans, net of deferred costs $ 3,220 $ 1,344,885 $ 1,348,105 $ 1,151,130 Less: allowance for loan losses - (10,976) (10,976) -0.81% (10,515) -0.91% Net loans $ 3,220 $ 1,333,909 $ 1,337,129 $ 1,140,615 **All other loans include acquired Non-PCI pools. |
Non-accrual loans | Non-accrual loans as of December 31, 2018 and 2017 were as follows: December 31, 2018 (dollars in thousands) Non- accrual Delinquent Loans Number of Loans Non-accrual Current Loans Number of Loans Total Non-accrual Loans Total Number of Loans Commercial real estate $ 8,474 11 $ 6,158 6 $ 14,632 17 Residential first mortgages 146 1 1,228 4 1,374 5 Residential rentals 260 2 703 3 963 5 Construction and land development - - - - - - Home equity and second mortgages 147 2 - - 147 2 Commercial loans 866 2 - - 866 2 Consumer loans - - - - - - Commercial equipment 1,259 5 41 2 1,300 7 $ 11,152 23 $ 8,130 15 $ 19,282 38 December 31, 2017 (dollars in thousands) Non- accrual Delinquent Loans Number of Loans Non-accrual Current Loans Number of Loans Total Non-accrual Loans Total Number of Loans Commercial real estate $ 1,148 4 $ 839 3 $ 1,987 7 Residential first mortgages 478 3 507 1 985 4 Residential rentals 84 1 741 3 825 4 Construction and land development - - - - - - Home equity and second mortgages 134 3 123 1 257 4 Commercial loans 172 2 - - 172 2 Consumer loans - - - - - - Commercial equipment 467 3 - - 467 3 $ 2,483 16 $ 2,210 8 $ 4,693 24 |
Past Due Financing Receivables | An analysis of past due loans as of December 31, 2018 and 2017 was as follows: December 31, 2018 (dollars in thousands) 31-60 Days 61-89 Days 90 or Greater Days Total Past Due PCI Loans Current Total Loan Receivables Commercial real estate $ - $ 677 $ 8,474 $ 9,151 $ 1,785 $ 867,080 $ 878,016 Residential first mortgages - 66 146 212 466 156,031 156,709 Residential rentals 13 53 247 313 897 123,088 124,298 Construction and land dev. - - - - - 29,705 29,705 Home equity and second mtg. 266 - 147 413 72 35,076 35,561 Commercial loans - - 866 866 - 70,814 71,680 Consumer loans 1 4 - 5 - 746 751 Commercial equipment 25 29 1,230 1,284 - 48,918 50,202 Total $ 305 $ 829 $ 11,110 $ 12,244 $ 3,220 $ 1,331,458 $ 1,346,922 December 31, 2017 (dollars in thousands) 31-60 Days 61-89 Days 90 or Greater Days Total Past Due PCI Loans Current Total Loan Receivables Commercial real estate $ - $ 6,711 $ 1,148 $ 7,859 $ - $ 719,455 $ 727,314 Residential first mortgages - 68 478 546 - 169,828 170,374 Residential rentals - 207 84 291 - 109,937 110,228 Construction and land dev. - - - - - 27,871 27,871 Home equity and second mtg. 19 18 134 171 - 21,180 21,351 Commercial loans 892 299 172 1,363 - 55,054 56,417 Consumer loans - 1 - 1 - 572 573 Commercial equipment 1,012 - 467 1,479 - 34,437 35,916 Total $ 1,923 $ 7,304 $ 2,483 $ 11,710 $ - $ 1,138,334 $ 1,150,044 |
Impaired Loans, Including TDRs | Impaired loans, including TDRs, at December 31, 2018 and 2017 were as follows: December 31, 2018 (dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance YTD Average Recorded Investment YTD Interest Income Recognized Commercial real estate $ 27,835 $ 24,515 $ 3,025 $ 27,540 $ 326 $ 27,833 $ 1,275 Residential first mortgages 2,527 2,527 - 2,527 - 2,573 126 Residential rentals 1,745 1,745 - 1,745 - 1,792 85 Construction and land dev. 729 729 - 729 - 729 45 Home equity and second mtg. 294 288 - 288 - 291 13 Commercial loans 2,762 1,888 863 2,751 700 2,804 118 Consumer loans 1 - 1 1 1 1 - Commercial equipment 1,315 1,121 178 1,299 153 1,354 31 Total $ 37,208 $ 32,813 $ 4,067 $ 36,880 $ 1,180 $ 37,377 $ 1,693 December 31, 2017 (dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance YTD Average Recorded Investment YTD Interest Income Recognized Commercial real estate $ 33,180 $ 30,921 $ 2,008 $ 32,929 $ 370 $ 33,575 $ 1,379 Residential first mortgages 2,455 1,978 459 2,437 2 2,479 91 Residential rentals 2,389 1,981 395 2,376 18 2,432 111 Construction and land dev. 729 - 729 729 163 729 26 Home equity and second mtg. 317 317 - 317 - 318 12 Commercial loans 3,010 2,783 168 2,951 168 3,048 137 Commercial equipment 1,538 1,048 467 1,515 303 1,578 73 Total $ 43,618 $ 39,028 $ 4,226 $ 43,254 $ 1,024 $ 44,159 $ 1,829 |
TDRs, Included in Impaired Loans Schedule | December 31, 2018 December 31, 2017 (dollars in thousands) Dollars Number of Loans Dollars Number of Loans Commercial real estate $ 5,612 7 $ 9,273 9 Residential first mortgages 66 1 527 2 Residential rentals 216 1 221 1 Construction and land development 729 2 729 2 Commercial loans 53 1 4 1 Commercial equipment 29 1 36 1 Total TDRs $ 6,705 13 $ 10,790 16 Less: TDRs included in non-accrual loans (29) (1) (769) (1) Total performing accrual TDR loans $ 6,676 12 $ 10,021 15 |
Allowance for Credit Losses on Financing Receivables | The following tables detail activity in the allowance for loan losses at and for the years ended December 31, 2018, 2017 and 2016, respectively. An allocation of the allowance to one category of loans does not prevent the Company from using that allowance to absorb losses in a different category. Year Ended December 31, 2018 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance Commercial real estate $ 6,451 $ (268) $ 10 $ 689 $ 6,882 Residential first mortgages 1,144 (115) - (274) 755 Residential rentals 512 (84) - 70 498 Construction and land development 462 - - (152) 310 Home equity and second mortgages 162 (7) 18 (40) 133 Commercial loans 1,013 (94) 189 374 1,482 Consumer loans 7 (2) - 1 6 Commercial equipment 764 (647) 56 737 910 $ 10,515 $ (1,217) $ 273 $ 1,405 $ 10,976 Purchase Credit Impaired** $ - $ - $ - $ - $ - ** There is no allowance for loan loss on the PCI portfolios. A more detailed rollforward schedule will be presented if an allowance is required. Year Ended December 31, 2017 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance Commercial real estate $ 5,212 $ (217) $ 63 $ 1,393 $ 6,451 Residential first mortgages 1,406 - - (262) 1,144 Residential rentals 362 (42) - 192 512 Construction and land development 941 (26) - (453) 462 Home equity and second mortgages 138 (14) 1 37 162 Commercial loans 794 (13) 1 231 1,013 Consumer loans 3 (2) - 6 7 Commercial equipment 1,004 (168) 62 (134) 764 $ 9,860 $ (482) $ 127 $ 1,010 $ 10,515 Year Ended December 31, 2016 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance Commercial real estate $ 3,465 $ - $ 58 $ 1,689 $ 5,212 Residential first mortgages 584 - - 822 1,406 Residential rentals 538 (14) - (162) 362 Construction and land development 1,103 (526) 1 363 941 Home equity and second mortgages 142 - 5 (9) 138 Commercial loans 1,477 (594) 18 (107) 794 Consumer loans 2 (1) - 2 3 Commercial equipment 1,229 (34) 48 (239) 1,004 $ 8,540 $ (1,169) $ 130 $ 2,359 $ 9,860 |
Loan receivable and allowance balances disaggregated on basis of Company's impairment methodology | The following tables detail loan receivable and allowance balances disaggregated on the basis of the Company’s impairment methodology at December 31, 2018 and 2017, respectively. December 31, 2018 December 31, 2017 (dollars in thousands) Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Purchase Credit Impaired Total Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Total Loan Receivables: Commercial real estate $ 27,540 $ 848,691 $ 1,785 $ 878,016 $ 32,929 $ 694,385 $ 727,314 Residential first mortgages 2,527 153,716 466 156,709 2,437 167,937 170,374 Residential rentals 1,745 121,656 897 124,298 2,376 107,852 110,228 Construction and land development 729 28,976 - 29,705 729 27,142 27,871 Home equity and second mortgages 288 35,201 72 35,561 317 21,034 21,351 Commercial loans 2,751 68,929 - 71,680 2,951 53,466 56,417 Consumer loans 1 750 - 751 - 573 573 Commercial equipment 1,299 48,903 - 50,202 1,515 34,401 35,916 $ 36,880 $ 1,306,822 $ 3,220 $ 1,346,922 $ 43,254 $ 1,106,790 $ 1,150,044 Allowance for loan losses: Commercial real estate $ 326 $ 6,556 $ - $ 6,882 $ 370 $ 6,081 $ 6,451 Residential first mortgages - 755 - 755 2 1,142 1,144 Residential rentals - 498 - 498 18 494 512 Construction and land development - 310 - 310 163 299 462 Home equity and second mortgages - 133 - 133 - 162 162 Commercial loans 700 782 - 1,482 168 845 1,013 Consumer loans 1 5 - 6 - 7 7 Commercial equipment 153 757 - 910 303 461 764 $ 1,180 $ 9,796 $ - $ 10,976 $ 1,024 $ 9,491 $ 10,515 |
Credit Quality Indicators | Credit quality indicators as of December 31, 2018 and 2017 were as follows: Credit Risk Profile by Internally Assigned Grade Commercial Real Estate Construction and Land Dev. Residential Rentals (dollars in thousands) 12/31/2018 12/31/2017 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Unrated $ 112,280 $ 75,581 $ 2,172 $ 1,775 $ 37,478 $ 28,428 Pass 741,037 619,604 26,805 25,367 85,551 80,279 Special mention - - - - - - Substandard 24,699 32,129 728 729 1,269 1,521 Doubtful - - - - - - Loss - - - - - - Total $ 878,016 $ 727,314 $ 29,705 $ 27,871 $ 124,298 $ 110,228 Commercial Loans Commercial Equipment Total Commercial Portfolios (dollars in thousands) 12/31/2018 12/31/2017 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Unrated $ 19,157 $ 14,356 $ 15,373 $ 10,856 $ 186,460 $ 130,996 Pass 49,828 39,118 33,685 23,581 936,906 787,949 Special mention - - - - - - Substandard 2,695 2,943 1,144 1,479 30,535 38,801 Doubtful - - - - - - Loss - - - - - - Total $ 71,680 $ 56,417 $ 50,202 $ 35,916 $ 1,153,901 $ 957,746 Non-Commercial Portfolios ** Total All Portfolios (dollars in thousands) 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Unrated $ 146,889 $ 152,616 $ 333,349 $ 283,612 Pass 44,441 38,081 981,347 826,030 Special mention - 96 - 96 Substandard 1,691 1,505 32,226 40,306 Doubtful - - - - Loss - - - - Total $ 193,021 $ 192,298 $ 1,346,922 $ 1,150,044 ** Non-commercial portfolios are generally evaluated based on payment activity, but may be risk graded if part of a larger commercial relationship or are credit impaired (e.g., non-accrual loans, TDRs). Credit Risk Profile Based on Payment Activity (Non-Commercial Portfolios) Residential First Mortgages Home Equity and Second Mtg. Consumer Loans (dollars in thousands) 12/31/2018 12/31/2017 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Performing $ 156,563 $ 169,896 $ 35,414 $ 21,217 $ 751 $ 573 Nonperforming 146 478 147 134 - - Total $ 156,709 $ 170,374 $ 35,561 $ 21,351 $ 751 $ 573 |
Accounting for Certain Loans and Debt Securities Acquired In Transfer Table | In conjunction with the acquisition of County First, the PCI loan portfolio was accounted for at fair value as follows: (dollars in thousands) January 1, 2018 Contractual principal and interest at acquisition $ 6,126 Nonaccretable difference (1,093) Expected cash flows at acquisition 5,033 Accretable yield (516) Basis in PCI loans at acquisition - estimated fair value $ 4,517 |
Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Table | A summary of changes in the accretable yield for PCI loans for the year ended December 31, 2018 follows: Year Ended (dollars in thousands) December 31, 2018 Accretable yield, beginning of period $ - Additions 516 Accretion (230) Reclassification from (to) nonaccretable difference 134 Other changes, net 313 Accretable yield, end of period $ 734 |
Summary Of Acquired And Non Acquired Loans Table | The following is a summary of acquired and non-acquired loans as of December 31, 2018 and 2017: BY ACQUIRED AND NON-ACQUIRED December 31, 2018 % December 31, 2017 % Acquired loans - performing $ 103,667 7.70% $ - 0.00% Acquired loans - purchase credit impaired ("PCI") 3,220 0.24% - 0.00% Total acquired loans 106,887 7.94% - 0.00% Non-acquired loans** 1,240,035 92.06% 1,150,044 100.00% Gross loans 1,346,922 100.00% 1,150,044 100.00% Net deferred costs (fees) 1,183 0.09% 1,086 0.09% Total loans, net of deferred costs $ 1,348,105 $ 1,151,130 ** Non-acquired loans include loans transferred from acquired pools following release of acquisition accounting FMV adjustments. |
Schedule of Loans Contractual Terms to Maturity | The following table sets forth certain information at December 31, 2018 regarding the dollar amount of loans maturing in the Bank’s portfolio based on their contractual terms to maturity. Demand loans, loans having no stated schedule of repayments and no stated maturity, and overdrafts are reported as due in one year or less. December 31, 2018 Due within one Due after one year Due more than (dollars in thousands) year after through five years from five years from Description of Asset December 31, 2018 December 31, 2018 December 31, 2018 Real Estate Loans Commercial $ 90,152 $ 184,151 $ 603,713 Residential first mortgage 7,895 31,176 117,638 Residential rentals 7,723 30,936 85,639 Construction and land development 18,905 10,800 - Home equity and second mortgage 220 548 34,793 Commercial loans 71,680 - - Consumer loans 297 387 67 Commercial equipment 13,618 25,100 11,484 Total loans $ 210,490 $ 283,098 $ 853,334 |
Schedule of Loans Due After One Year | The following table sets forth the dollar amount of all loans due after one year from December 31, 2018, which have predetermined interest rates and have floating or adjustable interest rates. December 31, 2018 (dollars in thousands) Floating or Description of Asset Fixed Rates Adjustable Rates Total Real Estate Loans Commercial $ 203,383 $ 584,481 $ 787,864 Residential first mortgage 96,009 52,805 148,814 Residential rentals 25,367 91,208 116,575 Construction and land development 9,200 1,600 10,800 Home equity and second mortgage 691 34,650 35,341 Commercial loans - - - Consumer loans 454 - 454 Commercial equipment 33,413 3,171 36,584 $ 368,517 $ 767,915 $ 1,136,432 |
Related Party Loans | Included in loans receivable were loans made to executive officers and directors of the Company. These loans were made in the ordinary course of business at substantially the same terms and conditions as those prevailing at the time for comparable transactions with persons not affiliated with the Bank and are not considered to involve more than the normal risk of collectability. For the years ended December 31, 2018, 2017 and 2016, all loans to directors and executive officers of the Bank performed according to original loan terms. Activity in loans outstanding to executive officers and directors are summarized as follows: At and For the Years Ended December 31, (dollars in thousands) 2018 2017 2016 Balance, beginning of period $ 26,476 $ 26,464 $ 28,105 Loans and additions 46 3,699 2,547 Change in Directors' status 575 - 2,299 Repayments (2,245) (3,687) (6,487) Balance, end of period $ 24,852 $ 26,476 $ 26,464 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Loan Servicing [Abstract] | |
Schedule of Participating Mortgage Loans | The following table presents the activity of the mortgage servicing rights. Years Ended December 31, (dollars in thousands) 2018 2017 2016 Balance, beginning of the year $ 54 $ 128 $ 219 Additions - - - Amortization (36) (74) (91) Balance, end of the year $ 18 $ 54 $ 128 |
Other Real Estate Owned ("ORE_2
Other Real Estate Owned ("OREO") (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Real Estate Owned ("OREO") [Abstract] | |
Analysis of OREO activity | OREO assets are presented net of the allowance for losses. The Company considers OREO as classified assets for regulatory and financial reporting. OREO carrying amounts reflect management’s estimate of the realizable value of these properties incorporating current appraised values, local real estate market conditions and related costs. An analysis of the activity follows. Years Ended December 31, (dollars in thousands) 2018 2017 Balance at beginning of year $ 9,341 $ 7,763 Additions of underlying property 307 3,634 Disposals of underlying property (1,005) (1,456) Transfers to premises and equipment - - Valuation allowance (532) (600) Balance at end of period $ 8,111 $ 9,341 |
Expenses applicable to OREO assets | . Years Ended December 31, (dollars in thousands) 2018 2017 2016 Valuation allowance $ 532 $ 600 $ 574 Losses (gains) on dispositions 8 (43) 436 Operating expenses 117 146 287 $ 657 $ 703 $ 1,297 |
Premises and Equipment and Held
Premises and Equipment and Held for Sale Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Premises and Equipment [Abstract] | |
Property, Plant and Equipment | A summary of the cost and accumulated depreciation of premises and equipment at December 31, 2018 and 2017 follows: December 31, (dollars in thousands) 2018 2017 Land $ 4,358 $ 4,172 Building and improvements 25,198 23,038 Furniture and equipment 9,715 9,225 Automobiles 303 303 Total cost 39,574 36,738 Less accumulated depreciation 16,652 15,347 Premises and equipment, net $ 22,922 $ 21,391 |
Schedule of Future Minimum Rental Payments for Operating Leases | Certain Bank facilities are leased under various operating leases. Rent expense was $974,000 , $761,000 and $723,000 for the ye ars ended December 31, 2018, 2017 and 2016, respectively. Future minimum rental commitments under non-cancellable operating leases are as follows at December 31, 2018: (dollar in thousands) 2019 $ 663 2020 715 2021 735 2022 668 2023 681 Thereafter 4,488 Total $ 7,950 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Schedule of Deposits | Deposits consist of the following: December 31, (dollars in thousands) 2018 2017 Noninterest-bearing demand $ 209,378 $ 159,844 Interest-bearing: Demand 437,169 215,447 Money market deposits 266,160 226,351 Savings 69,893 52,990 Certificates of deposit 447,029 451,605 Total interest-bearing 1,220,251 946,393 Total Deposits $ 1,429,629 $ 1,106,237 |
Schedule of Deposits Maturities | At December 31, 2018 the scheduled contractual maturities of certificates of deposit are as follows: (dollars in thousands) December 31, 2018 Within one year $ 278,751 Year 2 130,161 Year 3 14,109 Year 4 16,768 Year 5 7,240 $ 447,029 |
Short-Term Borrowings and Lon_2
Short-Term Borrowings and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Short-Term Borrowings and Long-Term Debt [Abstract] | |
Schedule Related to the Classification of Debt Interest Rate | Rates and maturities on long-term advances and short-term borrowings were as follows: Fixed- Fixed-Rate Variable Rate Convertible Convertible December 31, 2018 Highest rate 2.92% n/a n/a Lowest rate 1.00% n/a n/a Weighted average rate 2.63% n/a n/a Matures through 2036 n/a n/a December 31, 2017 Highest rate 2.83% 3.47% 4.00% Lowest rate 0.95% 3.47% 4.00% Weighted average rate 1.42% 3.47% 4.00% Matures through 2036 2018 2020 |
Schedule of Debt | Average rates of long-term debt and short-term borrowings were as follows: At or for the Year Ended December 31, (dollars in thousands) 2018 2017 2016 Long-term debt Long-term debt outstanding at end of period $ 20,436 $ 55,498 $ 65,559 Weighted average rate on outstanding long-term debt 2.84% 2.38% 2.27% Maximum outstanding long-term debt of any month end 55,493 65,554 65,593 Average outstanding long-term debt 35,684 58,704 60,503 Approximate average rate paid on long-term debt 2.39% 2.24% 2.41% Short-term borrowings Short-term borrowings outstanding at end of period $ 35,000 $ 87,500 $ 79,000 Weighted average rate on short-term borrowings 2.51% 1.34% 0.71% Maximum outstanding short-term borrowings at any month end 74,000 109,000 79,000 Average outstanding short-term borrowings 42,286 91,797 39,802 Approximate average rate paid on short-term borrowings 1.81% 1.15% 0.49% |
Schedule of Maturities of Long-term Debt | The contractual maturities of long-term debt were as follows at December 31, 2018 and 2017: December 31, 2018 Fixed- Fixed-Rate Variable (dollars in thousands) Rate Convertible Convertible Total Due in 2019 $ - $ - $ - $ - Due in 2020 10,000 - - 10,000 Due in 2021 10,000 - - 10,000 Due in 2022 246 - - 246 Due in 2023 - - - - Thereafter 190 - - 190 $ 20,436 $ - $ - $ 20,436 December 31, 2017 Fixed- Fixed-Rate Variable (dollars in thousands) Rate Convertible Convertible Total Due in 2018 $ 25,000 $ 10,000 $ - $ 35,000 Due in 2019 - - - - Due in 2020 - - 10,000 10,000 Due in 2021 - - - - Due in 2022 10,302 - - 10,302 Thereafter 196 - - 196 $ 35,498 $ 10,000 $ 10,000 $ 55,498 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Schedule of Allocation of Federal and State Income Taxes | Allocation of federal and state income taxes between current and deferred portions is as follows: Years Ended December 31, 2018 2017 2016 Current Federal $ 2,810 $ 5,584 $ 3,675 State 1,653 1,686 1,296 4,463 7,270 4,971 Deferred Federal (202) 1,894 (460) State (88) (7) (95) (290) 1,887 (555) Income tax expense $ 4,173 $ 9,157 $ 4,416 |
Schedule of Effective Income Tax Rate Reconciliation | The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: 2018 2017 2016 Amount Percent of Pre-Tax Income Amount Percent of Pre-Tax Income Amount Percent of Pre-Tax Income Expected income tax expense at federal tax rate $ 3,234 21.00% $ 5,728 35.00% $ 3,994 34.00% State taxes net of federal benefit 1,281 8.32% 1,096 6.70% 796 6.78% Nondeductible expenses 85 0.55% 255 1.56% 37 0.31% Nontaxable income (248) (1.61%) (376) (2.30%) (375) (3.19%) Provisional deferred tax adjustment related to reduction in U.S. federal statutory income tax rate - 0.00% 2,740 16.74% - 0.00% Other (179) (1.16%) (286) (1.75%) (36) (0.31%) $ 4,173 27.10% $ 9,157 55.95% $ 4,416 37.59% |
Schedule of Deferred Tax Assets and Liabilities | The net deferred tax assets in the accompanying balance sheets include the following components: 2018 2017 Deferred tax assets Allowance for loan losses $ 3,020 $ 2,893 Deferred compensation 2,676 2,142 OREO valuation allowance & expenses 355 337 Unrealized loss on investment securities 724 452 Depreciation - 29 Other 144 178 6,919 6,031 Deferred tax liabilities Fair value adjustments for acquired assets and liabilities 65 - FHLB stock dividends 109 109 Depreciation 52 - 226 109 $ 6,693 $ 5,922 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stock-Based Compensation [Abstract] | |
Summarization of outstanding and exercisable options | The following tables below summarize option activity and outstanding and exercisable options at and for the year ended December 31, 2017. Weighted Weighted-Average Average Aggregate Contractual Life Exercise Intrinsic Remaining In (dollars in thousands, except per share amounts) Shares Price Value Years Outstanding at January 1, 2017 15,081 $ 27.70 $ - Exercised (14,231) 27.70 134 Expired (350) 27.70 - Forfeited (500) 27.70 - Outstanding at December 31, 2017 - $ - $ - - Exercisable at December 31, 2017 - $ - $ - - |
Summary of the unvested restricted stock awards outstanding | The Company has outstanding restricted stock in accordance with the Plan. As of December 31, 2018 and 2017, unrecognized stock compensation expense was $430,000 and $521,000 , respectively. The following tables summarize the unvested restricted stock awards outstanding at December 31, 2018 and 2017respectively. Restricted Stock Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2018 32,809 $ 22.61 Granted 10,662 36.43 Vested (17,607) 21.85 Cancelled (391) 27.69 Nonvested at December 31, 2018 25,473 $ 28.76 Restricted Stock Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2017 47,881 $ 20.41 Granted 6,752 30.20 Vested (21,738) 20.13 Cancelled (86) 20.75 Nonvested at December 31, 2017 32,809 $ 22.61 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Capital [Abstract] | |
Regulatory Matters | The Company’s and the Bank’s regulatory capital amounts and ratios are presented in the following table. Regulatory Capital and Ratios The Company The Bank (dollars in thousands) December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Common Equity $ 154,482 $ 109,957 $ 185,073 $ 139,046 Goodwill (10,835) - (10,835) - Core Deposit intangible (net of deferred tax liability) (2,034) - (2,034) - AOCI Losses 1,847 1,191 1,847 1,191 Common Equity Tier 1 Capital 143,460 111,148 174,051 140,237 TRUPs 12,000 12,000 - - Tier 1 Capital 155,460 123,148 174,051 140,237 Allowable Reserve for Credit Losses and Other Tier 2 Adjustments 11,027 10,545 11,027 10,545 Subordinated Notes 23,000 23,000 - - Tier 2 Capital $ 189,487 $ 156,693 $ 185,078 $ 150,782 Risk-Weighted Assets ("RWA") $ 1,384,807 $ 1,169,341 $ 1,383,048 $ 1,164,478 Average Assets ("AA") $ 1,635,594 $ 1,401,741 $ 1,632,846 $ 1,398,001 2019 Regulatory Min. Ratio + CCB (1) Common Tier 1 Capital to RWA 7.00 % 10.36 % 9.51 % 12.58 % 12.04 % Tier 1 Capital to RWA 8.50 11.23 10.53 12.58 12.04 Tier 2 Capital to RWA 10.50 13.68 13.40 13.38 12.95 Tier 1 Capital to AA (Leverage) (2) n/a 9.50 8.79 10.66 10.03 (1) These are the fully phased-in ratios as of January 1, 2019 that include the minimum capital ratio ("Min. Ratio") + the capital conservation buffer ("CCB"). The phase-in period is more fully described in the footnote above. (2) Tier 1 Capital to AA (Leverage) has no capital conservation buffer defined. PCA well capitalized is defined as 5.00% . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The tables below present the recorded amount of assets as of December 31, 2018 and December 31, 2017 measured at fair value on a recurring basis. (dollars in thousands) December 31, 2018 Description of Asset Fair Value Level 1 Level 2 Level 3 Available for sale securities Asset-backed securities issued by GSEs and U.S. Agencies CMOs $ 100,740 $ - $ 100,740 $ - MBS 7,361 - 7,361 - U.S. Agency 11,875 - 11,875 - Total available for sale securities $ 119,976 $ - $ 119,976 $ - Equity securities carried at fair value through income CRA investment fund $ 4,428 $ - $ 4,428 $ - (dollars in thousands) December 31, 2017 Description of Asset Fair Value Level 1 Level 2 Level 3 Available for sale securities Asset-backed securities issued by GSEs and U.S. Agencies CMOs $ 44,137 $ - $ 44,137 $ - MBS 7,087 - 7,087 - U.S. Agency 12,517 - 12,517 - Bond mutual funds 4,423 - 4,423 - Total available for sale securities $ 68,164 $ - $ 68,164 $ - |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | The Company may be required from time to time to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. GAAP. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis as of December 31, 2018 and 2017 are included in the tables below. (dollars in thousands) December 31, 2018 Description of Asset Fair Value Level 1 Level 2 Level 3 Loans with impairment Commercial real estate $ 2,699 $ - $ - $ 2,699 Commercial loans 163 - - 163 Commercial equipment 25 - - 25 Total loans with impairment $ 2,887 $ - $ - $ 2,887 Other real estate owned $ 8,111 $ - $ - $ 8,111 (dollars in thousands) December 31, 2017 Description of Asset Fair Value Level 1 Level 2 Level 3 Loans with impairment Commercial real estate $ 1,638 $ - $ - $ 1,638 Residential first mortgages 457 - - 457 Residential rentals 377 - - 377 Construction and land development 566 - - 566 Commercial equipment 164 - - 164 Total loans with impairment $ 3,202 $ - $ - $ 3,202 Other real estate owned $ 9,341 $ - $ - $ 9,341 |
Unobservable Inputs Used In Level 3 Fair Value Measurements [Table Text Block] | The following tables provide information describing the unobservable inputs used in Level 3 fair value measurements. December 31, 2018 (dollars in thousands) Description of Asset Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Loans with impairment $ 2,887 Third party appraisals and in-house real estate evaluations of fair value Management discount for property type and current market conditions 0% - 50% ( 29% ) Other real estate owned $ 8,111 Third party appraisals and in-house real estate evaluations of fair value Management discount for property type and current market conditions 0% - 50% ( 14% ) December 31, 2017 (dollars in thousands) Description of Asset Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Loans with impairment $ 3,202 Third party appraisals and in-house real estate evaluations of fair value Management discount for property type and current market conditions 0% - 50% ( 24% ) Other real estate owned $ 9,341 Third party appraisals and in-house real estate evaluations of fair value Management discount for property type and current market conditions 0% -50% ( 12% ) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value, by Balance Sheet Grouping | The Company’s estimated fair values of financial instruments are presented in the following tables. December 31, 2018 Fair Value Measurements Description of Asset (dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 119,976 $ 119,976 $ - $ 119,976 $ - Investment securities - HTM 96,271 93,745 999 92,746 - Equity securities carried at fair value through income 4,428 4,428 4,428 - Non-marketable equity securities in other financial institutions 209 209 - 209 - FHLB Stock 3,821 3,821 - 3,821 - Loans Receivable 1,337,129 1,298,465 - - 1,298,465 Accrued Interest Receivable 4,957 4,957 - 4,957 Investment in BOLI 36,295 36,295 - 36,295 - Liabilities Savings, NOW and money market accounts $ 982,600 $ 982,600 $ - $ 982,600 $ - Time deposits 447,029 446,683 - 446,683 - Long-term debt 20,436 20,568 - 20,568 - Short term borrowings 35,000 35,016 - 35,016 - TRUPs 12,000 10,924 - 10,924 - Subordinated notes 23,000 23,085 - 23,085 - December 31, 2017 Fair Value Measurements Description of Asset (dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 68,164 $ 68,164 $ - $ 68,164 $ - Investment securities - HTM 99,246 98,007 1,000 97,007 - Non-marketable equity securities in other financial institutions 121 121 121 FHLB Stock 7,276 7,276 - 7,276 - Loans Receivable 1,140,615 1,097,592 - - 1,097,592 Accrued Interest Receivable 4,511 4,511 4,511 Investment in BOLI 29,398 29,398 - 29,398 - Liabilities Savings, NOW and money market accounts $ 654,632 $ 654,632 $ - $ 654,632 $ - Time deposits 451,605 453,644 - 453,644 - Long-term debt 55,498 57,421 - 57,421 - Short term borrowings 87,500 87,208 - 87,208 - TRUPs 12,000 9,400 - 9,400 - Subordinated notes 23,000 22,400 - 22,400 - |
Condensed Financial Statement_2
Condensed Financial Statements - Parent Company Only (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Statements - Parent Company Only [Abstract] | |
Schedule of Condensed Balance Sheet | Balance Sheets December 31, (dollars in thousands) 2018 2017 Assets Cash - noninterest bearing $ 4,246 $ 2,812 Investment in wholly owned subsidiaries 185,445 139,418 Other assets 1,387 4,491 Total Assets $ 191,078 $ 146,721 Liabilities and Stockholders' Equity Current liabilities $ 1,224 $ 1,392 Guaranteed preferred beneficial interest in junior subordinated debentures 12,372 12,372 Subordinated notes - 6.25% 23,000 23,000 Total Liabilities 36,596 36,764 Stockholders' Equity Common stock 56 46 Additional paid in capital 84,397 48,209 Retained earnings 72,594 63,648 Accumulated other comprehensive loss (1,847) (1,191) Unearned ESOP shares (718) (755) Total Stockholders’ Equity 154,482 109,957 Total Liabilities and Stockholders’ Equity $ 191,078 $ 146,721 |
Schedule of Condensed Income Statement | Condensed Statements of Income Years Ended December 31, (dollars in thousands) 2018 2017 2016 Interest and Dividend Income Dividends from subsidiary $ 6,000 $ 7,500 $ 5,500 Interest income 65 64 19 Interest expense 1,984 1,865 1,795 Net Interest Income 4,081 5,699 3,724 Miscellaneous expenses (2,818) (2,968) (2,110) Income before income taxes and equity in undistributed net income of subsidiary 1,263 2,731 1,614 Federal and state income tax benefit 1,078 1,583 1,321 Equity in undistributed net income of subsidiary 8,887 2,894 4,396 Net Income $ 11,228 $ 7,208 $ 7,331 |
Schedule of Condensed Cash Flow Statement | Condensed Statements of Cash Flows Years Ended December 31, (dollars in thousands) 2018 2017 2016 Cash Flows from Operating Activities Net income $ 11,228 $ 7,208 $ 7,331 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed earnings of subsidiary (8,887) (2,894) (4,396) Stock based compensation 474 515 489 Decrease (increase) in other assets 3,109 (2,446) (145) (Increase) decrease in deferred income tax benefit (6) (29) 55 Increase (decrease) in current liabilities (168) 327 (157) Net Cash Provided by Operating Activities 5,750 2,681 3,177 Cash Flows from Investing Activities Cash paid to acquire County First Bank (2,120) - - Net Cash Provided by Investing Activities (2,120) - - Cash Flows from Financing Activities Dividends paid (2,163) (1,804) (1,814) Proceeds from public offering - - - Capital (to) from subsidiary - - 180 Exercise of stock options - 155 - Net change in unearned ESOP shares 37 (586) 147 Repurchase of common stock (70) - (865) Net Cash Used in Financing Activities (2,196) (2,235) (2,352) Increase in Cash 1,434 446 825 Cash at Beginning of Year 2,812 2,366 1,541 Cash at End of Year $ 4,246 $ 2,812 $ 2,366 |
Quarterly Financial Compariso_2
Quarterly Financial Comparison (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Comparison (Unaudited) [Abstract] | |
Schedule of Quarterly Financial Information | 2018 Fourth Third Second First (dollars in thousands) Quarter Quarter Quarter Quarter Interest and dividend income $ 17,043 $ 16,484 $ 15,754 $ 15,892 Interest expense 4,217 3,724 3,343 3,002 Net interest income 12,826 12,760 12,411 12,890 Provision for loan losses 465 40 400 500 Net interest income after provision 12,361 12,720 12,011 12,390 Noninterest income 1,067 1,069 901 1,031 Noninterest expense 8,240 8,491 9,750 11,668 Income before income taxes 5,188 5,298 3,162 1,753 Provision for income taxes 1,371 1,441 828 533 Net Income Available to Common Stockholders $ 3,817 $ 3,857 $ 2,334 $ 1,220 Earnings Per Common Share 1 Basic $ 0.69 $ 0.70 $ 0.42 $ 0.22 Diluted $ 0.69 $ 0.70 $ 0.42 $ 0.22 2017 Fourth Third Second First (dollars in thousands) Quarter Quarter Quarter Quarter Interest and dividend income $ 13,573 $ 13,680 $ 13,395 $ 12,922 Interest expense 2,800 2,672 2,462 2,248 Net interest income 10,773 11,008 10,933 10,674 Provision for loan losses 30 224 376 380 Net interest income after provision 10,743 10,784 10,557 10,294 Noninterest income 993 1,157 1,043 848 Noninterest expense 7,739 7,442 7,521 7,352 Income before income taxes 3,997 4,499 4,079 3,790 Provision for income taxes 4,456 1,717 1,536 1,448 Net (Loss) Income Available to Common Stockholders $ (459) $ 2,782 $ 2,543 $ 2,342 Preferred stock dividends - - - - Earnings Per Common Share 1 Basic $ (0.10) $ 0.60 $ 0.55 $ 0.51 Diluted $ (0.10) $ 0.60 $ 0.55 $ 0.51 2016 Fourth Third Second First (dollars in thousands) Quarter Quarter Quarter Quarter Interest and dividend income $ 12,584 $ 12,223 $ 11,928 $ 11,312 Interest expense 2,111 2,079 2,033 1,919 Net interest income 10,473 10,144 9,895 9,393 Provision for loan losses 670 698 564 427 Net interest income after provision 9,803 9,446 9,331 8,966 Noninterest income 887 839 1,225 845 Noninterest expense 7,312 7,308 7,740 7,235 Income before income taxes 3,378 2,977 2,816 2,576 Provision for income taxes 1,356 1,014 1,078 968 Net Income Available to Common Stockholders $ 2,022 $ 1,963 $ 1,738 $ 1,608 Preferred stock dividends - - - - Earnings Per Common Share 1 Basic $ 0.44 $ 0.43 $ 0.38 $ 0.35 Diluted $ 0.44 $ 0.42 $ 0.38 $ 0.35 (1) Earnings per share are based upon quarterly results and, when added, may not total the annual earnings per share amounts. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||||
Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2019USD ($) | Mar. 31, 2018USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Gain Loss On Sales Of Loans Net | $ 294,000 | ||||
Reclassification from AOCI to retained earnings | $ 19,000 | ||||
Number of operation centers | item | 2 | ||||
Number of LPOs | item | 5 | ||||
Reclassification of OREO gains losses from noninterest income to noninterest expense | 43,000,000 | $ 436,000,000 | |||
Increase in assets as a result of business combinations | $ 1,600,000,000 | ||||
Trading securities | $ 0 | 0 | $ 0 | ||
Loans held for sale | $ 0 | 0 | |||
Number of mortgage loan sold | item | 0 | ||||
Equity securities | $ 4,428,000 | ||||
Accumulated Other Comprehensive Income Loss, Reclassification Due To Accounting Standard Update Asu 2018 02 | $ 19,000 | 196,000 | |||
Recognition Of Deferred Loss From Sale Of Oreo | $ 43,000 | ||||
Maryland and Virginia | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of branches | item | 12 | ||||
Waldrof | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of branches | item | 2 | ||||
Leonardtown, La Plata | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of branches | item | 2 | ||||
Scenario, Forecast [Member] | Accounting Standards Update 2016-02 [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Right-of-Use Asset | $ 8,000,000 | ||||
Lease liability | $ 11,000,000 | ||||
Building and Building Improvements [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 50 years | ||||
Building and Building Improvements [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 10 years | ||||
Furniture and Fixtures [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 15 years | ||||
Furniture and Fixtures [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 3 years | ||||
Automobiles [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 5 years | ||||
Automobiles [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 4 years |
Business Combination and Inta_3
Business Combination and Intangible Assets (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Jan. 01, 2018USD ($)$ / sharesshares | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |
Merger and acquisition costs | $ 3,625,000 | $ 829,000 | |
Amortization of core deposit intangible | $ 784,000 | ||
Estimated life | 8 years | ||
Goodwill | $ 10,835,000 | ||
Common Class A [Member] | |||
Price per share | $ / shares | $ 38.78 | ||
County First Bank [Member] | |||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | ||
County First Acquisition [Member] | |||
Business Acquisition Stock Conversion Per Common Stock | 0.9543 | ||
Business Acquisition, Share Price | $ / shares | $ 2.20 | ||
Business Acquisition, Share Price, Cash Consideration | $ / shares | 1 | ||
Business Acquisition, Share Price, Contingent Cash Consideration | $ / shares | $ 1.20 | ||
Business Acquisition, Aggregate Merger Consideration Of Company's Common Stock | shares | 918,526 | ||
Payments to Acquire Businesses, Gross | 2,122,000 | ||
Goodwill Above Estimate At Time Of Acquisition | 558,236 | ||
Goodwill | 10,835,000 | $ 10,300,000 | |
Business Combination, Consideration Transferred | $ 37,742,000 |
Business Combination and Inta_4
Business Combination and Intangible Assets (Assets Acquired and Liabilities Assumed Recognized at the Acquisition Date) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Jan. 01, 2018 | |
Recognized amounts of identifiable assets acquired and liabilities assumed | ||
Goodwill | $ 10,835 | |
County First Acquisition [Member] | ||
Consideration Paid | ||
Cash | 2,122 | |
Common shares issued | 35,620 | |
Fair Value of Total Consideration Transferred | 37,742 | |
Recognized amounts of identifiable assets acquired and liabilities assumed | ||
Cash and cash equivalents | 34,409 | |
Securities | 38,202 | |
Loans, net of allowance | 140,750 | |
Premises and equipment | 3,161 | |
Core deposit intangibles | 3,590 | |
Interest receivable | 501 | |
Bank owned life insurance | 6,275 | |
Deferred tax asset | 213 | |
Other assets | 586 | |
Total assets acquired | 227,687 | |
Deposits | 199,228 | |
Other liabilities | 1,552 | |
Total liabilities assumed | 200,780 | |
Net identifiable assets acquired | 26,907 | |
Goodwill | $ 10,835 | $ 10,300 |
County First Acquisition [Member] | Fair Value And Other Merger Related Adjustments [Member] | ||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||
Securities | (659) | |
Loans, net of allowance | (1,654) | |
Premises and equipment | 181 | |
Core deposit intangibles | 3,590 | |
Interest receivable | (12) | |
Deferred tax asset | (426) | |
Total assets acquired | 1,020 | |
Deposits | 18 | |
Other liabilities | 103 | |
Total liabilities assumed | 121 | |
Net identifiable assets acquired | 899 | |
County First Acquisition [Member] | County First Bank [Member] | ||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||
Cash and cash equivalents | 34,409 | |
Securities | 38,861 | |
Loans, net of allowance | 142,404 | |
Premises and equipment | 2,980 | |
Interest receivable | 513 | |
Bank owned life insurance | 6,275 | |
Deferred tax asset | 639 | |
Other assets | 586 | |
Total assets acquired | 226,667 | |
Deposits | 199,210 | |
Other liabilities | 1,449 | |
Total liabilities assumed | 200,659 | |
Net identifiable assets acquired | $ 26,008 |
Business Combination and Inta_5
Business Combination and Intangible Assets - Acquired intangible assets subject to amortization (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total | $ 2,474 |
Core deposit | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 3,590 |
Accumulated Amortization | (784) |
Total | $ 2,806 |
Business Combination and Inta_6
Business Combination and Intangible Assets - Estimated amortization expense (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Estimated amortization expense | |
2,019 | $ 688 |
2,020 | 591 |
2,021 | 495 |
2,022 | 398 |
2,023 | 302 |
Total | $ 2,474 |
Business Combination and Inta_7
Business Combination and Intangible Assets (Proforma Results) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total revenue (net interest income plus noninterest income) | $ 54,955 | $ 47,429 | |||||||||||||||||
Net income | $ 11,228 | $ 7,208 | $ 7,331 | ||||||||||||||||
Basic earnings per common share | $ 0.69 | $ 0.70 | $ 0.42 | $ 0.22 | $ (0.10) | $ 0.60 | $ 0.55 | $ 0.51 | $ 0.44 | $ 0.43 | $ 0.38 | $ 0.35 | $ 2.02 | $ 1.56 | $ 1.59 | ||||
County First Acquisition [Member] | |||||||||||||||||||
Proforma, Total revenue (net interest income plus noninterest income) | $ 56,241 | ||||||||||||||||||
Proforma, Net income | $ 8,134 | ||||||||||||||||||
Proforma, Basic earnings per common share | $ 1.47 | ||||||||||||||||||
County First Bank [Member] | |||||||||||||||||||
Total revenue (net interest income plus noninterest income) | $ 8,812 | ||||||||||||||||||
Net income | $ 926 | ||||||||||||||||||
Basic earnings per common share | $ 1.01 | ||||||||||||||||||
[1] | Earnings per share are based upon quarterly results and, when added, may not total the annual earnings per share amounts. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Schedule of Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |||
Net unrealized holding gains arising during period, before tax | $ (879) | $ (103) | $ (1,095) |
Reclassification adjustments, before tax | (8) | (22) | |
Other comprehensive gain, before tax | (879) | (111) | (1,117) |
Net unrealized holding gains arising during period, tax effect | (242) | (41) | (433) |
Reclassification adjustments, tax effect | 0 | (3) | (7) |
Other comprehensive gain, tax effect | (242) | (44) | (440) |
Net unrealized holding gains arising during period, net of tax | (637) | (62) | (662) |
Reclassification adjustments, net of tax | (5) | (15) | |
Other comprehensive gain, net of tax | $ (637) | $ (67) | $ (677) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net unrealized gains and losses, beginning of period | $ (1,191,000) | $ (928,000) | $ (251,000) |
Other comprehensive gain (losses), net of tax before reclassifications | (637,000) | (62,000) | (662,000) |
Amounts reclassified from accumulated other comprehensive income | (5,000) | (15,000) | |
Net other comprehensive gain (loss) | (637,000) | (67,000) | (677,000) |
Reclassification due to Accounting Standard Update (ASU 2018-02) | (19,000) | (196,000) | |
Net unrealized gains and losses, end of period | (1,847,000) | (1,191,000) | $ (928,000) |
Reclassification from AOCI to retained earnings | 19,000 | ||
Parent Company [Member] | |||
Net unrealized gains and losses, beginning of period | (1,191,000) | ||
Net unrealized gains and losses, end of period | $ (1,847,000) | $ (1,191,000) |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from diluted net income per share | 0 | 0 | 15,081 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||
Net income | $ 11,228 | $ 7,208 | $ 7,331 | ||||||||||||||||||||
Net income available to common shareholders | $ 3,817 | $ 3,857 | $ 2,334 | $ 1,220 | $ (459) | $ 2,782 | $ 2,543 | $ 2,342 | $ 2,022 | $ 1,963 | $ 1,738 | $ 1,608 | |||||||||||
Average number of common shares outstanding | 5,550,510 | 4,627,776 | 4,599,502 | ||||||||||||||||||||
Dilutive effect of common stock equivalents | 1,452 | ||||||||||||||||||||||
Average number of shares used to calculate diluted EPS | 5,550,510 | 4,629,228 | 4,599,502 | ||||||||||||||||||||
Earnings Per Share, Basic | $ 0.69 | [1] | $ 0.70 | [1] | $ 0.42 | [1] | $ 0.22 | [1] | $ (0.10) | $ 0.60 | $ 0.55 | $ 0.51 | $ 0.44 | $ 0.43 | $ 0.38 | $ 0.35 | $ 2.02 | $ 1.56 | $ 1.59 | ||||
Earnings Per Share, Diluted | $ 0.69 | [1] | $ 0.70 | [1] | $ 0.42 | [1] | $ 0.22 | [1] | $ (0.10) | [1] | $ 0.60 | [1] | $ 0.55 | [1] | $ 0.51 | [1] | $ 0.44 | $ 0.42 | $ 0.38 | $ 0.35 | $ 2.02 | $ 1.56 | $ 1.59 |
[1] | Earnings per share are based upon quarterly results and, when added, may not total the annual earnings per share amounts. |
Restrictions on Cash and Amou_2
Restrictions on Cash and Amounts Due from Banks (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Restrictions on Cash and Amounts Due from Banks [Abstract] | ||
Reserve balance maintained by bank | $ 1,300 | $ 915 |
Securities (Narrative) (Details
Securities (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($)security | Dec. 31, 2016USD ($)security | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Asset-backed securities pledged to secure certain deposits | $ 41,300,000 | $ 31,500,000 | |
Asset-backed securities pledged as collateral | 3,300,000 | 4,000,000 | |
Amount | 216,247,000 | 162,987,000 | |
Amortized cost, available for sale | 122,524,000 | 69,808,000 | |
Other-than temporary impairment charges | $ 0 | 0 | $ 0 |
Number of securities sold | security | 0 | ||
Gain (Loss) On Sale Of Securities, Net | 175,000 | 31,000 | |
Percentage of principal payment to sell securities using safe harbor rule | 15.00% | ||
Securities held to maturity (HTM), at amortized cost | $ 96,271,000 | 99,246,000 | |
Securities available for sale (AFS), at fair value | 119,976,000 | 68,164,000 | |
Estimated Fair Value, held to maturity | 93,745,000 | 98,007,000 | |
Gross unrealized losses, available for sale | 2,757,000 | 1,682,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 84,941,000 | 62,999,000 | |
Held-To-Maturity Securities, Continuous Unrealized Loss Position, Fair Value | 83,047,000 | 82,325,000 | |
Gross unrealized losses, held to maturity | 2,672,000 | 1,436,000 | |
Three Available For Sale Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross realized gains on sale of AFS securities | 9,000 | ||
Securities available for sale (AFS), at fair value | $ 3,700,000 | ||
Number Of Available For Sale Securities Sold | security | 3 | ||
Five Available For Sale Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross realized gains on sale of AFS securities | 23,000 | ||
Securities available for sale (AFS), at fair value | $ 6,500,000 | ||
Number Of Available For Sale Securities Sold | security | 5 | ||
One Held To Maturity Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross realized gains on sale of HTM securities | $ 8,000 | ||
Securities held to maturity (HTM), at amortized cost | $ 698,000 | ||
Number Of Held To Maturity Securities Sold | security | 1 | ||
Nine Held To Maturity Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross realized gains on sale of HTM securities | $ 166,000 | ||
Securities held to maturity (HTM), at amortized cost | $ 4,800,000 | ||
Number Of Held To Maturity Securities Sold | security | 9 | ||
Residential Mortgage Backed Securities Issued By US Government Sponsored Enterprises [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized cost, available for sale | 7,641,000 | $ 7,265,000 | |
Securities held to maturity (HTM), at amortized cost | 25,948,000 | 29,113,000 | |
Securities available for sale (AFS), at fair value | 7,361,000 | 7,087,000 | |
Estimated Fair Value, held to maturity | 25,267,000 | 28,987,000 | |
Gross unrealized losses, available for sale | 281,000 | 178,000 | |
Gross unrealized losses, held to maturity | 756,000 | 261,000 | |
Residential Collateralized Mortgage Obligations, Issued By US Government Sponsored Enterprises [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized cost, available for sale | 102,411,000 | 45,283,000 | |
Securities held to maturity (HTM), at amortized cost | 52,375,000 | 54,805,000 | |
Securities available for sale (AFS), at fair value | 100,740,000 | 44,137,000 | |
Estimated Fair Value, held to maturity | 51,079,000 | 54,022,000 | |
Gross unrealized losses, available for sale | 1,870,000 | 1,158,000 | |
Gross unrealized losses, held to maturity | $ 1,360,000 | $ 845,000 | |
Asset-backed Securities, Issued by US Government Sponsored Enterprises [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Held to maturity securities with unrealized losses, average life | 4 years 10 months 17 days | 5 years 7 days | |
Held to maturity securities with unrealized losses, average duration | 4 years 3 months 4 days | 4 years 5 months 5 days | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 84,941,000 | $ 62,999,000 | |
Held-To-Maturity Securities, Continuous Unrealized Loss Position, Fair Value | $ 77,707,000 | $ 81,726,000 | |
Asset-backed Securities, Issued by Private Enterprises [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Held to maturity securities with unrealized losses, average life | 3 years 4 days | 3 years 2 months 12 days | |
Held to maturity securities with unrealized losses, average duration | 2 years 3 months 29 days | 2 years 7 months 28 days | |
Held-To-Maturity Securities, Continuous Unrealized Loss Position, Fair Value | $ 441,000 | $ 599,000 | |
Asset-backed securities issued by GSEs [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Available for sale securities, average life | 4 years 4 months 13 days | 4 years 8 months 27 days | |
Available for sale securities, average duration | 3 years 10 months 10 days | 4 years 2 months 19 days | |
Held to maturity securities, average life | 4 years 10 months 17 days | 4 years 4 months 21 days | |
Held to maturity securities, average duration | 4 years 3 months | 4 years 11 months 12 days | |
Available for sale securities with unrealized losses, average life | 4 years 3 months 26 days | 4 years 8 months 16 days | |
Available for sale securities with unrealized losses, average duration | 3 years 9 months 29 days | 4 years 2 months 12 days | |
Amortized cost, available for sale | $ 122,500,000 | $ 65,400,000 | |
Residential Collateralized Mortgage Obligations, Issued By Private Enterprises [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Securities held to maturity (HTM), at amortized cost | 482,000 | 651,000 | |
Estimated Fair Value, held to maturity | 441,000 | 599,000 | |
Gross unrealized losses, held to maturity | 41,000 | 52,000 | |
Bond Mutual Funds [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized cost, available for sale | 4,397,000 | ||
Securities available for sale (AFS), at fair value | 4,423,000 | ||
US Government Obligations [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Securities held to maturity (HTM), at amortized cost | 999,000 | 1,000,000 | |
Estimated Fair Value, held to maturity | 998,000 | $ 1,000,000 | |
Gross unrealized losses, held to maturity | $ 1,000 | ||
Standard Poor's, AAA Rating [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Percentage of asset backed securities in investment portfolio | 99.00% | 99.00% | |
Amount | $ 215,764,000 | $ 162,336,000 | |
Standard Poor's, BB Rating [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amount | 483,000 | 651,000 | |
Standard Poor's, B+ Rating [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amount |
Securities (Fair Value to Amort
Securities (Fair Value to Amortized Cost Basis) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | $ 122,524,000 | $ 69,808,000 |
Gross unrealized gains, available for sale | 209,000 | 38,000 |
Gross unrealized losses, available for sale | 2,757,000 | 1,682,000 |
Estimated fair value, available for sale | 119,976,000 | 68,164,000 |
Amortized cost, Held-to-maturity Securities | 96,271,000 | 99,246,000 |
Gross unrealized gains, held to maturity | 147,000 | 197,000 |
Gross unrealized losses, held to maturity | 2,672,000 | 1,436,000 |
Estimated Fair Value, held to maturity | 93,745,000 | 98,007,000 |
Equity Securities Carried At Fair Value Through Income, Estimated Fair Value | 4,428,000 | |
Non-marketable equity securities held in other financial institutions | 209,000 | 121,000 |
Non-Marketable Equity Securities Held In Other Financial Institutions, Estimated Fair Value | 209,000 | 121,000 |
Residential Mortgage Backed Securities Issued By US Government Sponsored Enterprises [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 7,641,000 | 7,265,000 |
Gross unrealized gains, available for sale | 1,000 | |
Gross unrealized losses, available for sale | 281,000 | 178,000 |
Estimated fair value, available for sale | 7,361,000 | 7,087,000 |
Amortized cost, Held-to-maturity Securities | 25,948,000 | 29,113,000 |
Gross unrealized gains, held to maturity | 75,000 | 135,000 |
Gross unrealized losses, held to maturity | 756,000 | 261,000 |
Estimated Fair Value, held to maturity | 25,267,000 | 28,987,000 |
Residential Collateralized Mortgage Obligations, Issued By US Government Sponsored Enterprises [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 102,411,000 | 45,283,000 |
Gross unrealized gains, available for sale | 199,000 | 12,000 |
Gross unrealized losses, available for sale | 1,870,000 | 1,158,000 |
Estimated fair value, available for sale | 100,740,000 | 44,137,000 |
Amortized cost, Held-to-maturity Securities | 52,375,000 | 54,805,000 |
Gross unrealized gains, held to maturity | 64,000 | 62,000 |
Gross unrealized losses, held to maturity | 1,360,000 | 845,000 |
Estimated Fair Value, held to maturity | 51,079,000 | 54,022,000 |
US Agency [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 12,472,000 | 12,863,000 |
Gross unrealized gains, available for sale | 9,000 | |
Gross unrealized losses, available for sale | 606,000 | 346,000 |
Estimated fair value, available for sale | 11,875,000 | 12,517,000 |
Amortized cost, Held-to-maturity Securities | 10,508,000 | 8,660,000 |
Gross unrealized gains, held to maturity | 7,000 | |
Gross unrealized losses, held to maturity | 404,000 | 235,000 |
Estimated Fair Value, held to maturity | 10,111,000 | 8,425,000 |
Residential Collateralized Mortgage Obligations, Issued By Private Enterprises [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, Held-to-maturity Securities | 482,000 | 651,000 |
Gross unrealized losses, held to maturity | 41,000 | 52,000 |
Estimated Fair Value, held to maturity | 441,000 | 599,000 |
US Government Agencies Callable Agency Bonds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, Held-to-maturity Securities | 5,009,000 | 5,017,000 |
Gross unrealized losses, held to maturity | 110,000 | 43,000 |
Estimated Fair Value, held to maturity | 4,899,000 | 4,974,000 |
Certificates of Deposit Fixed [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, Held-to-maturity Securities | 950,000 | |
Estimated Fair Value, held to maturity | 950,000 | |
US Government Obligations [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, Held-to-maturity Securities | 999,000 | 1,000,000 |
Gross unrealized losses, held to maturity | 1,000 | |
Estimated Fair Value, held to maturity | 998,000 | 1,000,000 |
Bond Mutual Funds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 4,397,000 | |
Gross unrealized gains, available for sale | 26,000 | |
Estimated fair value, available for sale | 4,423,000 | |
CRA Investment Fund [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Equity securities carried at fair value through income | 4,428,000 | |
Equity Securities Carried At Fair Value Through Income, Estimated Fair Value | 4,428,000 | |
Other Equity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Non-marketable equity securities held in other financial institutions | 209,000 | 121,000 |
Non-Marketable Equity Securities Held In Other Financial Institutions, Estimated Fair Value | $ 209,000 | $ 121,000 |
Securities (Schedule of Unreali
Securities (Schedule of Unrealized Loss on Investments, AFS) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Less than 12 months, fair value | $ 30,095 | $ 24,571 |
More than 12 months, fair value | 54,846 | 38,428 |
Fair value | 84,941 | 62,999 |
Less than 12 months, unrealized loss | 163 | 328 |
More than 12 months, unrealized loss | 2,594 | 1,354 |
Unrealized loss | 2,757 | 1,682 |
Asset-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Less than 12 months, fair value | 30,095 | 24,571 |
More than 12 months, fair value | 54,846 | 38,428 |
Fair value | 84,941 | 62,999 |
Less than 12 months, unrealized loss | 163 | 328 |
More than 12 months, unrealized loss | 2,594 | 1,354 |
Unrealized loss | $ 2,757 | $ 1,682 |
Securities (Schedule of Unrea_2
Securities (Schedule of Unrealized Loss on Investments, HTM) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, fair value | $ 6,955 | $ 36,607 |
Less than 12 months, unrealized loss | 38 | 254 |
More than 12 months, fair value | 76,092 | 45,718 |
More than 12 months, unrealized loss | 2,634 | 1,182 |
Total, fair value | 83,047 | 82,325 |
Total, unrealized loss | 2,672 | 1,436 |
Asset-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, fair value | 6,955 | 36,607 |
Less than 12 months, unrealized loss | 38 | 254 |
More than 12 months, fair value | 70,752 | 45,119 |
More than 12 months, unrealized loss | 2,483 | 1,130 |
Total, fair value | 77,707 | 81,726 |
Total, unrealized loss | 2,521 | 1,384 |
Asset-backed Securities, Issued by Private Enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
More than 12 months, fair value | 441 | 599 |
More than 12 months, unrealized loss | 41 | 52 |
Total, fair value | 441 | 599 |
Total, unrealized loss | 41 | $ 52 |
US Government Agencies Callable Agency Bonds [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
More than 12 months, fair value | 4,899 | |
More than 12 months, unrealized loss | 110 | |
Total, fair value | 4,899 | |
Total, unrealized loss | $ 110 |
Securities (Investments Classif
Securities (Investments Classified by Contractual Maturity Date) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |
Amortized cost, available for sale, total | $ 122,524 |
Estimated fair value, available for sale, total | 119,976 |
Amortized cost, held to maturity, total | 96,271 |
Estimated fair value, held to maturity, total | 93,745 |
Asset-backed securities issued by GSEs [Member] | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |
Amortized cost, available for sale, within one year | 19,719 |
Amortized cost, available for sale, over one year through five years | 59,732 |
Amortized cost, available for sale, over five years through ten years | 33,788 |
Amortized cost, available for sale, after ten years | 9,285 |
Amortized cost, available for sale, total | 122,524 |
Estimated fair value, available for sale, within one year | 19,309 |
Estimated fair value, available for sale, over one year through five years | 58,490 |
Estimated fair value, available for sale, over five years through ten years | 33,085 |
Estimated fair value, available for sale, after ten years | 9,092 |
Estimated fair value, available for sale, total | 119,976 |
Amortized cost, held to maturity, within one year | 19,862 |
Amortized cost, held to maturity, over one year through five years | 41,013 |
Amortized cost, held to maturity, over five years through ten years | 22,422 |
Amortized cost, held to maturity, after ten years | 11,975 |
Amortized cost, held to maturity, total | 95,272 |
Estimated fair value, held to maturity, within one year | 23,965 |
Estimated fair value, held to maturity, over one year through five years | 37,408 |
Estimated fair value, held to maturity, over five years through ten years | 20,451 |
Estimated fair value, held to maturity, after ten years | 10,922 |
Estimated fair value, held to maturity, total | 92,746 |
US Government Obligations [Member] | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |
Amortized cost, held to maturity, within one year | 999 |
Estimated fair value, held to maturity, within one year | $ 999 |
Securities (Financing Receivabl
Securities (Financing Receivable Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | $ 216,247 | $ 162,987 |
Standard Poor's, AAA Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | 215,764 | 162,336 |
Standard Poor's, BB Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | 483 | 651 |
Standard Poor's, B+ Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amount |
Loans (Narrative) (Details)
Loans (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan loss | $ 10,976,000 | $ 10,515,000 | ||
Loans and leases receivable, allowance percentage | (0.81%) | (0.91%) | ||
Total number of loans | loan | 38 | 24 | ||
Non- accrual delinquent loans | $ 11,152,000 | $ 2,483,000 | ||
Total non-accrual loans | $ 19,282,000 | 4,693,000 | ||
Percentage of current loans on total non accrual loans | 42.00% | |||
Percentage of delinquent loans on total non accrual loans | 58.00% | |||
Reserve for delinquent non accrual loans | $ 978,000 | |||
Increase in financial receivables past due | 534,000 | |||
Increase In Non Accrual Loans | 14,600,000 | |||
Net deferred loan fee and premiums | 1,200,000 | 1,100,000 | ||
Deferred loan fee paid by customers | 3,100,000 | 2,800,000 | ||
Total deferred loan fee and premiums | 4,300,000 | 3,900,000 | ||
Loans receivable | $ 1,346,922,000 | $ 1,150,044,000 | ||
Percentage status of loan in portfolio | 100.00% | 100.00% | ||
Performance TDR percentage | 99.60% | 92.90% | ||
Performance TDR interest rate | 5.08% | 4.83% | ||
Charge-offs | $ 1,217,000 | $ 482,000 | $ 1,169,000 | |
Unpaid contractual principal balance | 37,208,000 | 43,618,000 | ||
Total recorded investment | 36,880,000 | 43,254,000 | ||
Loans, carrying amount | 1,337,129,000 | 1,140,615,000 | ||
Non-accrual current loans | 8,130,000 | 2,210,000 | ||
Past Due | 12,244,000 | 11,710,000 | ||
Loans receivable from related parties | $ 24,852,000 | $ 26,476,000 | 26,464,000 | $ 28,105,000 |
Number of TDR loans | loan | 13 | 16 | ||
Number of accrual TDR loans | loan | 12 | 15 | ||
Financing receivable post modification recorded investment | $ 6,705,000 | $ 10,790,000 | ||
Accrual TDR loans | $ 6,676,000 | $ 10,021,000 | ||
Residential Rentals Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan security percentage | 80.00% | |||
Commercial Real Estate Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total number of loans | loan | 17 | 7 | ||
Non- accrual delinquent loans | $ 8,474,000 | $ 1,148,000 | ||
Total non-accrual loans | $ 14,632,000 | 1,987,000 | ||
Loan security percentage | 80.00% | |||
Loans receivable | $ 878,016,000 | $ 727,314,000 | ||
Percentage status of loan in portfolio | 65.18% | 63.25% | ||
Charge-offs | $ 268,000 | $ 217,000 | ||
Unpaid contractual principal balance | 27,835,000 | 33,180,000 | ||
Total recorded investment | 27,540,000 | 32,929,000 | ||
Non-accrual current loans | 6,158,000 | 839,000 | ||
Past Due | $ 9,151,000 | $ 7,859,000 | ||
Number of TDR loans | loan | 7 | 9 | ||
Financing receivable post modification recorded investment | $ 5,612,000 | $ 9,273,000 | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Construction Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage status of loan in portfolio | 5.90% | 6.20% | ||
Residential First Mortgages Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total number of loans | loan | 5 | 4 | ||
Non- accrual delinquent loans | $ 146,000 | $ 478,000 | ||
Total non-accrual loans | 1,374,000 | 985,000 | ||
Increase (Decrease) in Finance Receivables | 11,000,000 | 25,500,000 | ||
Loans receivable | $ 156,709,000 | $ 170,374,000 | ||
Percentage status of loan in portfolio | 11.63% | 14.81% | ||
Charge-offs | $ 115,000 | |||
Unpaid contractual principal balance | 2,527,000 | $ 2,455,000 | ||
Total recorded investment | 2,527,000 | 2,437,000 | ||
Non-accrual current loans | 1,228,000 | 507,000 | ||
Past Due | $ 212,000 | $ 546,000 | ||
Number of TDR loans | loan | 1 | 2 | ||
Financing receivable post modification recorded investment | $ 66,000 | $ 527,000 | ||
Residential Rentals Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total number of loans | loan | 5 | 4 | ||
Non- accrual delinquent loans | $ 260,000 | $ 84,000 | ||
Total non-accrual loans | 963,000 | 825,000 | ||
Loans receivable | $ 124,298,000 | $ 110,228,000 | ||
Percentage status of loan in portfolio | 9.23% | 9.58% | ||
Charge-offs | $ 84,000 | $ 42,000 | 14,000 | |
Unpaid contractual principal balance | 1,745,000 | 2,389,000 | ||
Total recorded investment | 1,745,000 | 2,376,000 | ||
Non-accrual current loans | 703,000 | 741,000 | ||
Past Due | $ 313,000 | $ 291,000 | ||
Number of TDR loans | loan | 1 | 1 | ||
Financing receivable post modification recorded investment | $ 216,000 | $ 221,000 | ||
Construction And Land Development Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 29,705,000 | $ 27,871,000 | ||
Percentage status of loan in portfolio | 2.21% | 2.42% | ||
Charge-offs | $ 26,000 | 526,000 | ||
Unpaid contractual principal balance | $ 729,000 | 729,000 | ||
Total recorded investment | $ 729,000 | $ 729,000 | ||
Number of TDR loans | loan | 2 | 2 | ||
Financing receivable post modification recorded investment | $ 729,000 | $ 729,000 | ||
Home Equity And Second Mortgages Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total number of loans | loan | 2 | 4 | ||
Non- accrual delinquent loans | $ 147,000 | $ 134,000 | ||
Total non-accrual loans | 147,000 | 257,000 | ||
Loans receivable | $ 35,561,000 | $ 21,351,000 | ||
Percentage status of loan in portfolio | 2.64% | 1.86% | ||
Charge-offs | $ 7,000 | $ 14,000 | ||
Unpaid contractual principal balance | 294,000 | 317,000 | ||
Total recorded investment | 288,000 | 317,000 | ||
Non-accrual current loans | 123,000 | |||
Past Due | $ 413,000 | $ 171,000 | ||
Commercial Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total number of loans | loan | 2 | 2 | ||
Non- accrual delinquent loans | $ 866,000 | $ 172,000 | ||
Total non-accrual loans | 866,000 | 172,000 | ||
Loans receivable | $ 71,680,000 | $ 56,417,000 | ||
Percentage status of loan in portfolio | 5.32% | 4.91% | ||
Charge-offs | $ 94,000 | $ 13,000 | 594,000 | |
Unpaid contractual principal balance | 2,762,000 | 3,010,000 | ||
Total recorded investment | 2,751,000 | 2,951,000 | ||
Past Due | $ 866,000 | $ 1,363,000 | ||
Number of TDR loans | loan | 1 | 1 | ||
Financing receivable post modification recorded investment | $ 53,000 | $ 4,000 | ||
Consumer Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 751,000 | $ 573,000 | ||
Percentage status of loan in portfolio | 0.06% | 0.05% | ||
Charge-offs | $ 2,000 | $ 2,000 | 1,000 | |
Unpaid contractual principal balance | 1,000 | |||
Total recorded investment | 1,000 | |||
Past Due | $ 5,000 | $ 1,000 | ||
Commercial Equipment Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total number of loans | loan | 7 | 3 | ||
Non- accrual delinquent loans | $ 1,259,000 | $ 467,000 | ||
Total non-accrual loans | 1,300,000 | 467,000 | ||
Loans receivable | $ 50,202,000 | $ 35,916,000 | ||
Percentage status of loan in portfolio | 3.73% | 3.12% | ||
Charge-offs | $ 647,000 | $ 168,000 | $ 34,000 | |
Unpaid contractual principal balance | 1,315,000 | 1,538,000 | ||
Total recorded investment | 1,299,000 | 1,515,000 | ||
Non-accrual current loans | 41,000 | |||
Past Due | $ 1,284,000 | $ 1,479,000 | ||
Number of TDR loans | loan | 1 | 1 | ||
Financing receivable post modification recorded investment | $ 29,000 | $ 36,000 | ||
Adjustable Rate Residential Mortgage [Member] | Residential Rentals Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 97,400,000 | $ 93,400,000 | ||
Percentage status of loan in portfolio | 7.20% | 8.10% | ||
1-4 Family Units [Member] | Residential Rentals Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 96,600,000 | $ 85,000,000 | ||
Apartment Buildings Rentals [Member] | Residential Rentals Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 27,700,000 | 25,200,000 | ||
Adjustable Rate Residential First Mortgage [Member] | Residential First Mortgages Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 54,200,000 | $ 56,900,000 | ||
Percentage status of loan in portfolio | 4.00% | 5.00% | ||
Foreclosure Of Stalled Residential Development Project [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount of loans removed from troubled debt restructuring | $ 3,000,000 | |||
Thirteen Loans And Four Customer Relationships [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total number of loans | loan | 13 | |||
Total non-accrual loans | $ 15,300,000 | |||
Percentage Status Of Non Accrual Loans | 79.00% | |||
Ten Loans And Five Customer Relationships [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total number of loans | loan | 10 | |||
Total non-accrual loans | $ 3,300,000 | |||
Percentage Status Of Non Accrual Loans | 71.00% | |||
One Well Secured Classified Relationship [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Increase In Non Accrual Loans | $ 10,100,000 | |||
Three Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans removed from troubled debt restructuring | loan | 3 | |||
Amount of loans removed from troubled debt restructuring | $ 3,900,000 | |||
Financing receivable post modification recorded investment | $ 176,000 | |||
Financing Receivable Troubled Debt Restructuring [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Increase (decrease) in loans | $ (4,100,000) | |||
Loans added to troubled debt restructuring | loan | 0 | 0 | ||
Interest income recognized on outstanding TDR loans | $ 348,000 | $ 327,000 | ||
TDR loan principal curtailment | 385,000 | |||
One Troubled Debt Restructuring Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total non-accrual loans | 29,000 | $ 769,000 | ||
Specific reserves for TDR loans | $ 165,000 | |||
Number of TDR loans | loan | 1 | |||
Financing receivable post modification recorded investment | $ 1,600,000 | |||
Seven Troubled Debt Restructuring Loans with Reserves [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans removed from troubled debt restructuring | loan | 7 | |||
Amount of loans removed from troubled debt restructuring | $ 3,900,000 | |||
Specific reserves for TDR loans | $ 413,000 | |||
Number of TDR loans | loan | 7 | |||
Financing receivable post modification recorded investment | $ 3,000,000 | |||
Nonaccrual Loans With No Impairment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total non-accrual loans | 17,400,000 | 3,800,000 | ||
Interest due to debt | $ 456,000 | $ 85,000 | ||
Percentage status of loan in portfolio | 0.91% | 1.02% | ||
Nonaccrual Loans With Impairment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total non-accrual loans | $ 1,900,000 | $ 876,000 | ||
Interest due to debt | $ 81,000 | 100,000 | ||
Minimum [Member] | Residential Rentals Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Debt maturity period | 3 years | |||
Minimum [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Debt maturity period | 3 years | |||
Minimum [Member] | Residential First Mortgages Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Debt maturity period | 10 years | |||
Minimum [Member] | Commercial Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Bank exposure limit for credit rating | $ 1,000,000 | |||
Maximum [Member] | Residential Rentals Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Debt maturity period | 20 years | |||
Maximum [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Debt maturity period | 20 years | |||
Maximum [Member] | Residential First Mortgages Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Debt maturity period | 30 years | |||
Maximum [Member] | Commercial Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Debt maturity period | 5 years | |||
Unrated [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 333,349,000 | 283,612,000 | ||
Unrated [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 112,280,000 | 75,581,000 | ||
Unrated [Member] | Residential Rentals Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 37,478,000 | 28,428,000 | ||
Unrated [Member] | Construction And Land Development Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 2,172,000 | 1,775,000 | ||
Unrated [Member] | Commercial Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 19,157,000 | 14,356,000 | ||
Unrated [Member] | Commercial Equipment Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 15,373,000 | 10,856,000 | ||
Pass [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 981,347,000 | 826,030,000 | ||
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 741,037,000 | 619,604,000 | ||
Pass [Member] | Residential Rentals Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 85,551,000 | 80,279,000 | ||
Pass [Member] | Construction And Land Development Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 26,805,000 | 25,367,000 | ||
Pass [Member] | Commercial Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 49,828,000 | 39,118,000 | ||
Pass [Member] | Commercial Equipment Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 33,685,000 | 23,581,000 | ||
Special Mention [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 96,000 | |||
Substandard [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 32,226,000 | 40,306,000 | ||
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 24,699,000 | 32,129,000 | ||
Substandard [Member] | Residential Rentals Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 1,269,000 | 1,521,000 | ||
Substandard [Member] | Construction And Land Development Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 728,000 | 729,000 | ||
Substandard [Member] | Commercial Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 2,695,000 | 2,943,000 | ||
Substandard [Member] | Commercial Equipment Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 1,144,000 | 1,479,000 | ||
31 - 60 Days [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 305,000 | 1,923,000 | ||
31 - 60 Days [Member] | Residential Rentals Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 13,000 | |||
31 - 60 Days [Member] | Home Equity And Second Mortgages Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 266,000 | 19,000 | ||
31 - 60 Days [Member] | Commercial Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 892,000 | |||
31 - 60 Days [Member] | Consumer Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 1,000 | |||
31 - 60 Days [Member] | Commercial Equipment Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 25,000 | 1,012,000 | ||
61 - 89 Days [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 829,000 | 7,304,000 | ||
61 - 89 Days [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 677,000 | 6,711,000 | ||
61 - 89 Days [Member] | Residential First Mortgages Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 66,000 | 68,000 | ||
61 - 89 Days [Member] | Residential Rentals Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 53,000 | 207,000 | ||
61 - 89 Days [Member] | Home Equity And Second Mortgages Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 18,000 | |||
61 - 89 Days [Member] | Commercial Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 299,000 | |||
61 - 89 Days [Member] | Consumer Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 4,000 | 1,000 | ||
61 - 89 Days [Member] | Commercial Equipment Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 29,000 | |||
90 or Greater Days [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 11,110,000 | 2,483,000 | ||
90 or Greater Days [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 8,474,000 | 1,148,000 | ||
90 or Greater Days [Member] | Residential First Mortgages Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 146,000 | 478,000 | ||
90 or Greater Days [Member] | Residential Rentals Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 247,000 | 84,000 | ||
90 or Greater Days [Member] | Home Equity And Second Mortgages Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 147,000 | 134,000 | ||
90 or Greater Days [Member] | Commercial Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 866,000 | 172,000 | ||
90 or Greater Days [Member] | Commercial Equipment Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past Due | 1,230,000 | 467,000 | ||
Performing Financing Receivable [Member] | Residential First Mortgages Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 156,563,000 | 169,896,000 | ||
Performing Financing Receivable [Member] | Home Equity And Second Mortgages Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 35,414,000 | 21,217,000 | ||
Performing Financing Receivable [Member] | Consumer Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 751,000 | $ 573,000 | ||
Nonperforming Financing Receivable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Increase (decrease) in loans | $ 14,600,000 | |||
Percentage status of loan in portfolio | 1.43% | 0.41% | ||
Nonperforming Financing Receivable [Member] | Residential First Mortgages Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 146,000 | $ 478,000 | ||
Nonperforming Financing Receivable [Member] | Home Equity And Second Mortgages Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 147,000 | $ 134,000 | ||
PCI Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 3,220,000 | |||
Percentage status of loan in portfolio | 0.19% | |||
Unpaid contractual principal balance | $ 3,900,000 | |||
Total recorded investment | 3,200,000 | |||
Loans, carrying amount | 3,220,000 | |||
PCI Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 1,785,000 | |||
PCI Loans [Member] | Residential First Mortgages Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 466,000 | |||
PCI Loans [Member] | Residential Rentals Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 897,000 | |||
PCI Loans [Member] | Home Equity And Second Mortgages Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 72,000 | |||
All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan loss | 10,976,000 | |||
Loans receivable | 1,343,702,000 | |||
Loans, carrying amount | 1,333,909,000 | |||
All Other Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 876,231,000 | |||
All Other Loans [Member] | Residential First Mortgages Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 156,243,000 | |||
All Other Loans [Member] | Residential Rentals Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 123,401,000 | |||
All Other Loans [Member] | Construction And Land Development Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 29,705,000 | |||
All Other Loans [Member] | Home Equity And Second Mortgages Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 35,489,000 | |||
All Other Loans [Member] | Commercial Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 71,680,000 | |||
All Other Loans [Member] | Consumer Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 751,000 | |||
All Other Loans [Member] | Commercial Equipment Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 50,202,000 | |||
County First Acquisition [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 106,887,000 | |||
Percentage status of loan in portfolio | 7.94% | 0.00% | ||
County First Acquisition [Member] | PCI Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 3,220,000 | |||
Percentage status of loan in portfolio | 0.24% | 0.00% | ||
Fair value adjustment | $ 696,000 | |||
Percentage change on total loans | 17.77% | |||
County First Acquisition [Member] | All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 103,667,000 | |||
Percentage status of loan in portfolio | 7.70% | 0.00% | ||
Fair value adjustment | $ 1,900,000 | |||
Percentage change on total loans | 1.76% |
Loans (Schedule of Accounts, No
Loans (Schedule of Accounts, Notes, Loans and Financing Receivable) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 1,346,922 | $ 1,150,044 |
Net deferred costs (fees) | 1,183 | 1,086 |
Net deferred income | (1,183) | (1,086) |
Total loans, net of deferred costs | 1,348,105 | 1,151,130 |
Less: allowance for loan losses | (10,976) | (10,515) |
Loans and leases receivable net reported amount | $ 1,337,129 | $ 1,140,615 |
Percentage status of loan in portfolio | 100.00% | 100.00% |
Deferred loan fees and premiums, percentage | 0.09% | 0.09% |
Loans and leases receivable, allowance percentage | (0.81%) | (0.91%) |
Commercial Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 878,016 | $ 727,314 |
Percentage status of loan in portfolio | 65.18% | 63.25% |
Residential First Mortgages Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 156,709 | $ 170,374 |
Percentage status of loan in portfolio | 11.63% | 14.81% |
Residential Rentals Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 124,298 | $ 110,228 |
Percentage status of loan in portfolio | 9.23% | 9.58% |
Construction And Land Development Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 29,705 | $ 27,871 |
Percentage status of loan in portfolio | 2.21% | 2.42% |
Home Equity And Second Mortgages Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 35,561 | $ 21,351 |
Percentage status of loan in portfolio | 2.64% | 1.86% |
Consumer Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 751 | $ 573 |
Percentage status of loan in portfolio | 0.06% | 0.05% |
Commercial Equipment Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 50,202 | $ 35,916 |
Percentage status of loan in portfolio | 3.73% | 3.12% |
PCI Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 3,220 | |
Total loans, net of deferred costs | 3,220 | |
Loans and leases receivable net reported amount | $ 3,220 | |
Percentage status of loan in portfolio | 0.19% | |
PCI Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 1,785 | |
PCI Loans [Member] | Residential First Mortgages Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 466 | |
PCI Loans [Member] | Residential Rentals Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 897 | |
PCI Loans [Member] | Home Equity And Second Mortgages Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 72 | |
All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,343,702 | |
Net deferred costs (fees) | 1,183 | |
Total loans, net of deferred costs | 1,344,885 | |
Less: allowance for loan losses | (10,976) | |
Loans and leases receivable net reported amount | 1,333,909 | |
All Other Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 876,231 | |
All Other Loans [Member] | Residential First Mortgages Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 156,243 | |
All Other Loans [Member] | Residential Rentals Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 123,401 | |
All Other Loans [Member] | Construction And Land Development Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 29,705 | |
All Other Loans [Member] | Home Equity And Second Mortgages Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 35,489 | |
All Other Loans [Member] | Consumer Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 751 | |
All Other Loans [Member] | Commercial Equipment Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 50,202 |
Loans (Schedule of Financing Re
Loans (Schedule of Financing Receivables, Non-Accrual Status) (Details) $ in Thousands | Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non- accrual delinquent loans | $ | $ 11,152 | $ 2,483 |
Number of loans, non- accrual delinquent loans | loan | 23 | 16 |
Non-accrual current loans | $ | $ 8,130 | $ 2,210 |
Number of loans, non-accrual current loans | loan | 15 | 8 |
Total non-accrual loans | $ | $ 19,282 | $ 4,693 |
Total number of loans | loan | 38 | 24 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non- accrual delinquent loans | $ | $ 8,474 | $ 1,148 |
Number of loans, non- accrual delinquent loans | loan | 11 | 4 |
Non-accrual current loans | $ | $ 6,158 | $ 839 |
Number of loans, non-accrual current loans | loan | 6 | 3 |
Total non-accrual loans | $ | $ 14,632 | $ 1,987 |
Total number of loans | loan | 17 | 7 |
Residential First Mortgages Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non- accrual delinquent loans | $ | $ 146 | $ 478 |
Number of loans, non- accrual delinquent loans | loan | 1 | 3 |
Non-accrual current loans | $ | $ 1,228 | $ 507 |
Number of loans, non-accrual current loans | loan | 4 | 1 |
Total non-accrual loans | $ | $ 1,374 | $ 985 |
Total number of loans | loan | 5 | 4 |
Residential Rentals Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non- accrual delinquent loans | $ | $ 260 | $ 84 |
Number of loans, non- accrual delinquent loans | loan | 2 | 1 |
Non-accrual current loans | $ | $ 703 | $ 741 |
Number of loans, non-accrual current loans | loan | 3 | 3 |
Total non-accrual loans | $ | $ 963 | $ 825 |
Total number of loans | loan | 5 | 4 |
Home Equity And Second Mortgages Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non- accrual delinquent loans | $ | $ 147 | $ 134 |
Number of loans, non- accrual delinquent loans | loan | 2 | 3 |
Non-accrual current loans | $ | $ 123 | |
Number of loans, non-accrual current loans | loan | 1 | |
Total non-accrual loans | $ | $ 147 | $ 257 |
Total number of loans | loan | 2 | 4 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non- accrual delinquent loans | $ | $ 866 | $ 172 |
Number of loans, non- accrual delinquent loans | loan | 2 | 2 |
Total non-accrual loans | $ | $ 866 | $ 172 |
Total number of loans | loan | 2 | 2 |
Commercial Equipment Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non- accrual delinquent loans | $ | $ 1,259 | $ 467 |
Number of loans, non- accrual delinquent loans | loan | 5 | 3 |
Non-accrual current loans | $ | $ 41 | |
Number of loans, non-accrual current loans | loan | 2 | |
Total non-accrual loans | $ | $ 1,300 | $ 467 |
Total number of loans | loan | 7 | 3 |
Loans (Past Due Financing Recei
Loans (Past Due Financing Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Past Due | $ 12,244 | $ 11,710 |
Total Loan Receivables | 1,346,922 | 1,150,044 |
31 - 60 Days [Member] | ||
Past Due | 305 | 1,923 |
61 - 89 Days [Member] | ||
Past Due | 829 | 7,304 |
90 or Greater Days [Member] | ||
Past Due | 11,110 | 2,483 |
Commercial Real Estate Portfolio Segment [Member] | ||
Past Due | 9,151 | 7,859 |
Total Loan Receivables | 878,016 | 727,314 |
Commercial Real Estate Portfolio Segment [Member] | 61 - 89 Days [Member] | ||
Past Due | 677 | 6,711 |
Commercial Real Estate Portfolio Segment [Member] | 90 or Greater Days [Member] | ||
Past Due | 8,474 | 1,148 |
Residential First Mortgages Portfolio Segment [Member] | ||
Past Due | 212 | 546 |
Total Loan Receivables | 156,709 | 170,374 |
Residential First Mortgages Portfolio Segment [Member] | 61 - 89 Days [Member] | ||
Past Due | 66 | 68 |
Residential First Mortgages Portfolio Segment [Member] | 90 or Greater Days [Member] | ||
Past Due | 146 | 478 |
Residential Rentals Portfolio Segment [Member] | ||
Past Due | 313 | 291 |
Total Loan Receivables | 124,298 | 110,228 |
Residential Rentals Portfolio Segment [Member] | 31 - 60 Days [Member] | ||
Past Due | 13 | |
Residential Rentals Portfolio Segment [Member] | 61 - 89 Days [Member] | ||
Past Due | 53 | 207 |
Residential Rentals Portfolio Segment [Member] | 90 or Greater Days [Member] | ||
Past Due | 247 | 84 |
Construction And Land Development Portfolio Segment [Member] | ||
Total Loan Receivables | 29,705 | 27,871 |
Home Equity And Second Mortgages Portfolio Segment [Member] | ||
Past Due | 413 | 171 |
Total Loan Receivables | 35,561 | 21,351 |
Home Equity And Second Mortgages Portfolio Segment [Member] | 31 - 60 Days [Member] | ||
Past Due | 266 | 19 |
Home Equity And Second Mortgages Portfolio Segment [Member] | 61 - 89 Days [Member] | ||
Past Due | 18 | |
Home Equity And Second Mortgages Portfolio Segment [Member] | 90 or Greater Days [Member] | ||
Past Due | 147 | 134 |
Commercial Portfolio Segment [Member] | ||
Past Due | 866 | 1,363 |
Total Loan Receivables | 71,680 | 56,417 |
Commercial Portfolio Segment [Member] | 31 - 60 Days [Member] | ||
Past Due | 892 | |
Commercial Portfolio Segment [Member] | 61 - 89 Days [Member] | ||
Past Due | 299 | |
Commercial Portfolio Segment [Member] | 90 or Greater Days [Member] | ||
Past Due | 866 | 172 |
Consumer Portfolio Segment [Member] | ||
Past Due | 5 | 1 |
Total Loan Receivables | 751 | 573 |
Consumer Portfolio Segment [Member] | 31 - 60 Days [Member] | ||
Past Due | 1 | |
Consumer Portfolio Segment [Member] | 61 - 89 Days [Member] | ||
Past Due | 4 | 1 |
Commercial Equipment Portfolio Segment [Member] | ||
Past Due | 1,284 | 1,479 |
Total Loan Receivables | 50,202 | 35,916 |
Commercial Equipment Portfolio Segment [Member] | 31 - 60 Days [Member] | ||
Past Due | 25 | 1,012 |
Commercial Equipment Portfolio Segment [Member] | 61 - 89 Days [Member] | ||
Past Due | 29 | |
Commercial Equipment Portfolio Segment [Member] | 90 or Greater Days [Member] | ||
Past Due | 1,230 | 467 |
PCI Loans [Member] | ||
Current | 3,220 | |
Total Loan Receivables | 3,220 | |
PCI Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Current | 1,785 | |
Total Loan Receivables | 1,785 | |
PCI Loans [Member] | Residential First Mortgages Portfolio Segment [Member] | ||
Current | 466 | |
Total Loan Receivables | 466 | |
PCI Loans [Member] | Residential Rentals Portfolio Segment [Member] | ||
Current | 897 | |
Total Loan Receivables | 897 | |
PCI Loans [Member] | Home Equity And Second Mortgages Portfolio Segment [Member] | ||
Current | 72 | |
Total Loan Receivables | 72 | |
All Other Loans [Member] | ||
Current | 1,331,458 | 1,138,334 |
Total Loan Receivables | 1,343,702 | |
All Other Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Current | 867,080 | 719,455 |
Total Loan Receivables | 876,231 | |
All Other Loans [Member] | Residential First Mortgages Portfolio Segment [Member] | ||
Current | 156,031 | 169,828 |
Total Loan Receivables | 156,243 | |
All Other Loans [Member] | Residential Rentals Portfolio Segment [Member] | ||
Current | 123,088 | 109,937 |
Total Loan Receivables | 123,401 | |
All Other Loans [Member] | Construction And Land Development Portfolio Segment [Member] | ||
Current | 29,705 | 27,871 |
Total Loan Receivables | 29,705 | |
All Other Loans [Member] | Home Equity And Second Mortgages Portfolio Segment [Member] | ||
Current | 35,076 | 21,180 |
Total Loan Receivables | 35,489 | |
All Other Loans [Member] | Commercial Portfolio Segment [Member] | ||
Current | 70,814 | 55,054 |
Total Loan Receivables | 71,680 | |
All Other Loans [Member] | Consumer Portfolio Segment [Member] | ||
Current | 746 | 572 |
Total Loan Receivables | 751 | |
All Other Loans [Member] | Commercial Equipment Portfolio Segment [Member] | ||
Current | 48,918 | $ 34,437 |
Total Loan Receivables | $ 50,202 |
Loans (Impaired Financing Recei
Loans (Impaired Financing Receivables) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Unpaid contractual principal balance | $ 37,208 | $ 43,618 |
Recorded investment with no allowance | 32,813 | 39,028 |
Recorded investment with allowance | 4,067 | 4,226 |
Total recorded investment | 36,880 | 43,254 |
Related allowance | 1,180 | 1,024 |
Average recorded investment | 37,377 | 44,159 |
Interest income recognized | 1,693 | 1,829 |
Commercial Real Estate Portfolio Segment [Member] | ||
Unpaid contractual principal balance | 27,835 | 33,180 |
Recorded investment with no allowance | 24,515 | 30,921 |
Recorded investment with allowance | 3,025 | 2,008 |
Total recorded investment | 27,540 | 32,929 |
Related allowance | 326 | 370 |
Average recorded investment | 27,833 | 33,575 |
Interest income recognized | 1,275 | 1,379 |
Residential First Mortgages Portfolio Segment [Member] | ||
Unpaid contractual principal balance | 2,527 | 2,455 |
Recorded investment with no allowance | 2,527 | 1,978 |
Recorded investment with allowance | 459 | |
Total recorded investment | 2,527 | 2,437 |
Related allowance | 2 | |
Average recorded investment | 2,573 | 2,479 |
Interest income recognized | 126 | 91 |
Residential Rentals Portfolio Segment [Member] | ||
Unpaid contractual principal balance | 1,745 | 2,389 |
Recorded investment with no allowance | 1,745 | 1,981 |
Recorded investment with allowance | 395 | |
Total recorded investment | 1,745 | 2,376 |
Related allowance | 18 | |
Average recorded investment | 1,792 | 2,432 |
Interest income recognized | 85 | 111 |
Construction And Land Development Portfolio Segment [Member] | ||
Unpaid contractual principal balance | 729 | 729 |
Recorded investment with no allowance | 729 | |
Recorded investment with allowance | 729 | |
Total recorded investment | 729 | 729 |
Related allowance | 163 | |
Average recorded investment | 729 | 729 |
Interest income recognized | 45 | 26 |
Home Equity And Second Mortgages Portfolio Segment [Member] | ||
Unpaid contractual principal balance | 294 | 317 |
Recorded investment with no allowance | 288 | 317 |
Total recorded investment | 288 | 317 |
Average recorded investment | 291 | 318 |
Interest income recognized | 13 | 12 |
Commercial Portfolio Segment [Member] | ||
Unpaid contractual principal balance | 2,762 | 3,010 |
Recorded investment with no allowance | 1,888 | 2,783 |
Recorded investment with allowance | 863 | 168 |
Total recorded investment | 2,751 | 2,951 |
Related allowance | 700 | 168 |
Average recorded investment | 2,804 | 3,048 |
Interest income recognized | 118 | 137 |
Consumer Portfolio Segment [Member] | ||
Unpaid contractual principal balance | 1 | |
Recorded investment with allowance | 1 | |
Total recorded investment | 1 | |
Related allowance | 1 | |
Average recorded investment | 1 | |
Commercial Equipment Portfolio Segment [Member] | ||
Unpaid contractual principal balance | 1,315 | 1,538 |
Recorded investment with no allowance | 1,121 | 1,048 |
Recorded investment with allowance | 178 | 467 |
Total recorded investment | 1,299 | 1,515 |
Related allowance | 153 | 303 |
Average recorded investment | 1,354 | 1,578 |
Interest income recognized | $ 31 | $ 73 |
Loans (Troubled Debt Restructur
Loans (Troubled Debt Restructurings on Financing Receivables) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
TDRs | $ | $ 6,705 | $ 10,790 |
Less: TDRs included in non-accrual loans | $ | (29) | (769) |
Accrual TDR loans | $ | $ 6,676 | $ 10,021 |
Number of TDR loans | loan | 13 | 16 |
Number of non-accrual TDR loans | loan | (1) | (1) |
Number of accrual TDR loans | loan | 12 | 15 |
Commercial Real Estate Portfolio Segment [Member] | ||
TDRs | $ | $ 5,612 | $ 9,273 |
Number of TDR loans | loan | 7 | 9 |
Residential First Mortgages Portfolio Segment [Member] | ||
TDRs | $ | $ 66 | $ 527 |
Number of TDR loans | loan | 1 | 2 |
Residential Rentals Portfolio Segment [Member] | ||
TDRs | $ | $ 216 | $ 221 |
Number of TDR loans | loan | 1 | 1 |
Construction And Land Development Portfolio Segment [Member] | ||
TDRs | $ | $ 729 | $ 729 |
Number of TDR loans | loan | 2 | 2 |
Commercial Portfolio Segment [Member] | ||
TDRs | $ | $ 53 | $ 4 |
Number of TDR loans | loan | 1 | 1 |
Commercial Equipment Portfolio Segment [Member] | ||
TDRs | $ | $ 29 | $ 36 |
Number of TDR loans | loan | 1 | 1 |
Loans (Allowance for Credit Los
Loans (Allowance for Credit Losses on Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for loan losses: | |||||||||||||||
Beginning Balance | $ 10,515 | $ 9,860 | $ 8,540 | $ 10,515 | $ 9,860 | $ 8,540 | |||||||||
Charge-offs | (1,217) | (482) | (1,169) | ||||||||||||
Recoveries | 273 | 127 | 130 | ||||||||||||
Provisions | $ 465 | $ 40 | $ 400 | 500 | $ 30 | $ 224 | $ 376 | 380 | $ 670 | $ 698 | $ 564 | 427 | 1,405 | 1,010 | 2,359 |
Ending Balance | 10,976 | 10,515 | 9,860 | 10,976 | 10,515 | 9,860 | |||||||||
Commercial Real Estate Portfolio Segment [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning Balance | 6,451 | 5,212 | 3,465 | 6,451 | 5,212 | 3,465 | |||||||||
Charge-offs | (268) | (217) | |||||||||||||
Recoveries | 10 | 63 | 58 | ||||||||||||
Provisions | 689 | 1,393 | 1,689 | ||||||||||||
Ending Balance | 6,882 | 6,451 | 5,212 | 6,882 | 6,451 | 5,212 | |||||||||
Residential First Mortgages Portfolio Segment [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning Balance | 1,144 | 1,406 | 584 | 1,144 | 1,406 | 584 | |||||||||
Charge-offs | (115) | ||||||||||||||
Provisions | (274) | (262) | 822 | ||||||||||||
Ending Balance | 755 | 1,144 | 1,406 | 755 | 1,144 | 1,406 | |||||||||
Residential Rentals Portfolio Segment [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning Balance | 512 | 362 | 538 | 512 | 362 | 538 | |||||||||
Charge-offs | (84) | (42) | (14) | ||||||||||||
Provisions | 70 | 192 | (162) | ||||||||||||
Ending Balance | 498 | 512 | 362 | 498 | 512 | 362 | |||||||||
Construction And Land Development Portfolio Segment [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning Balance | 462 | 941 | 1,103 | 462 | 941 | 1,103 | |||||||||
Charge-offs | (26) | (526) | |||||||||||||
Recoveries | 1 | ||||||||||||||
Provisions | (152) | (453) | 363 | ||||||||||||
Ending Balance | 310 | 462 | 941 | 310 | 462 | 941 | |||||||||
Home Equity And Second Mortgages Portfolio Segment [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning Balance | 162 | 138 | 142 | 162 | 138 | 142 | |||||||||
Charge-offs | (7) | (14) | |||||||||||||
Recoveries | 18 | 1 | 5 | ||||||||||||
Provisions | (40) | 37 | (9) | ||||||||||||
Ending Balance | 133 | 162 | 138 | 133 | 162 | 138 | |||||||||
Commercial Portfolio Segment [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning Balance | 1,013 | 794 | 1,477 | 1,013 | 794 | 1,477 | |||||||||
Charge-offs | (94) | (13) | (594) | ||||||||||||
Recoveries | 189 | 1 | 18 | ||||||||||||
Provisions | 374 | 231 | (107) | ||||||||||||
Ending Balance | 1,482 | 1,013 | 794 | 1,482 | 1,013 | 794 | |||||||||
Consumer Portfolio Segment [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning Balance | 7 | 3 | 2 | 7 | 3 | 2 | |||||||||
Charge-offs | (2) | (2) | (1) | ||||||||||||
Provisions | 1 | 6 | 2 | ||||||||||||
Ending Balance | 6 | 7 | 3 | 6 | 7 | 3 | |||||||||
Commercial Equipment Portfolio Segment [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning Balance | $ 764 | $ 1,004 | $ 1,229 | 764 | 1,004 | 1,229 | |||||||||
Charge-offs | (647) | (168) | (34) | ||||||||||||
Recoveries | 56 | 62 | 48 | ||||||||||||
Provisions | 737 | (134) | (239) | ||||||||||||
Ending Balance | $ 910 | $ 764 | $ 1,004 | $ 910 | $ 764 | $ 1,004 |
Loans (Loan Receivable and Allo
Loans (Loan Receivable and Allowance Balances Disaggregated) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loan receivables: | ||||
Ending balance: individually evaluated for impairment | $ 36,880 | $ 43,254 | ||
Ending balance: collectively evaluated for impairment | 1,306,822 | 1,106,790 | ||
Total Loan Receivables | 1,346,922 | 1,150,044 | ||
Allowance for loan losses: | ||||
Ending balance: individually evaluated for impairment | 1,180 | 1,024 | ||
Ending balance: collectively evaluated for impairment | 9,796 | 9,491 | ||
Total Allowance for loan losses | 10,976 | 10,515 | $ 9,860 | $ 8,540 |
Commercial Real Estate Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Ending balance: individually evaluated for impairment | 27,540 | 32,929 | ||
Ending balance: collectively evaluated for impairment | 848,691 | 694,385 | ||
Total Loan Receivables | 878,016 | 727,314 | ||
Allowance for loan losses: | ||||
Ending balance: individually evaluated for impairment | 326 | 370 | ||
Ending balance: collectively evaluated for impairment | 6,556 | 6,081 | ||
Total Allowance for loan losses | 6,882 | 6,451 | 5,212 | 3,465 |
Residential First Mortgages Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Ending balance: individually evaluated for impairment | 2,527 | 2,437 | ||
Ending balance: collectively evaluated for impairment | 153,716 | 167,937 | ||
Total Loan Receivables | 156,709 | 170,374 | ||
Allowance for loan losses: | ||||
Ending balance: individually evaluated for impairment | 2 | |||
Ending balance: collectively evaluated for impairment | 755 | 1,142 | ||
Total Allowance for loan losses | 755 | 1,144 | 1,406 | 584 |
Residential Rentals Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Ending balance: individually evaluated for impairment | 1,745 | 2,376 | ||
Ending balance: collectively evaluated for impairment | 121,656 | 107,852 | ||
Total Loan Receivables | 124,298 | 110,228 | ||
Allowance for loan losses: | ||||
Ending balance: individually evaluated for impairment | 18 | |||
Ending balance: collectively evaluated for impairment | 498 | 494 | ||
Total Allowance for loan losses | 498 | 512 | 362 | 538 |
Construction And Land Development Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Ending balance: individually evaluated for impairment | 729 | 729 | ||
Ending balance: collectively evaluated for impairment | 28,976 | 27,142 | ||
Total Loan Receivables | 29,705 | 27,871 | ||
Allowance for loan losses: | ||||
Ending balance: individually evaluated for impairment | 163 | |||
Ending balance: collectively evaluated for impairment | 310 | 299 | ||
Total Allowance for loan losses | 310 | 462 | 941 | 1,103 |
Home Equity And Second Mortgages Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Ending balance: individually evaluated for impairment | 288 | 317 | ||
Ending balance: collectively evaluated for impairment | 35,201 | 21,034 | ||
Total Loan Receivables | 35,561 | 21,351 | ||
Allowance for loan losses: | ||||
Ending balance: collectively evaluated for impairment | 133 | 162 | ||
Total Allowance for loan losses | 133 | 162 | 138 | 142 |
Commercial Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Ending balance: individually evaluated for impairment | 2,751 | 2,951 | ||
Ending balance: collectively evaluated for impairment | 68,929 | 53,466 | ||
Total Loan Receivables | 71,680 | 56,417 | ||
Allowance for loan losses: | ||||
Ending balance: individually evaluated for impairment | 700 | 168 | ||
Ending balance: collectively evaluated for impairment | 782 | 845 | ||
Total Allowance for loan losses | 1,482 | 1,013 | 794 | 1,477 |
Consumer Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Ending balance: individually evaluated for impairment | 1 | |||
Ending balance: collectively evaluated for impairment | 750 | 573 | ||
Total Loan Receivables | 751 | 573 | ||
Allowance for loan losses: | ||||
Ending balance: individually evaluated for impairment | 1 | |||
Ending balance: collectively evaluated for impairment | 5 | 7 | ||
Total Allowance for loan losses | 6 | 7 | 3 | 2 |
Commercial Equipment Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Ending balance: individually evaluated for impairment | 1,299 | 1,515 | ||
Ending balance: collectively evaluated for impairment | 48,903 | 34,401 | ||
Total Loan Receivables | 50,202 | 35,916 | ||
Allowance for loan losses: | ||||
Ending balance: individually evaluated for impairment | 153 | 303 | ||
Ending balance: collectively evaluated for impairment | 757 | 461 | ||
Total Allowance for loan losses | 910 | $ 764 | $ 1,004 | $ 1,229 |
PCI Loans [Member] | ||||
Loan receivables: | ||||
Total Loan Receivables | 3,220 | |||
PCI Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Total Loan Receivables | 1,785 | |||
PCI Loans [Member] | Residential First Mortgages Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Total Loan Receivables | 466 | |||
PCI Loans [Member] | Residential Rentals Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Total Loan Receivables | 897 | |||
PCI Loans [Member] | Home Equity And Second Mortgages Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Total Loan Receivables | 72 | |||
All Other Loans [Member] | ||||
Loan receivables: | ||||
Total Loan Receivables | 1,343,702 | |||
All Other Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Total Loan Receivables | 876,231 | |||
All Other Loans [Member] | Residential First Mortgages Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Total Loan Receivables | 156,243 | |||
All Other Loans [Member] | Residential Rentals Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Total Loan Receivables | 123,401 | |||
All Other Loans [Member] | Construction And Land Development Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Total Loan Receivables | 29,705 | |||
All Other Loans [Member] | Home Equity And Second Mortgages Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Total Loan Receivables | 35,489 | |||
All Other Loans [Member] | Commercial Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Total Loan Receivables | 71,680 | |||
All Other Loans [Member] | Consumer Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Total Loan Receivables | 751 | |||
All Other Loans [Member] | Commercial Equipment Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Total Loan Receivables | $ 50,202 |
Loans (Schedule of Financing _2
Loans (Schedule of Financing Receivable Recorded Investment Credit Quality Indicator) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Loans | $ 1,346,922 | $ 1,150,044 |
Unrated [Member] | ||
Loans | 333,349 | 283,612 |
Pass [Member] | ||
Loans | 981,347 | 826,030 |
Special Mention [Member] | ||
Loans | 96 | |
Substandard [Member] | ||
Loans | 32,226 | 40,306 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans | 878,016 | 727,314 |
Commercial Real Estate Portfolio Segment [Member] | Unrated [Member] | ||
Loans | 112,280 | 75,581 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | ||
Loans | 741,037 | 619,604 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | ||
Loans | 24,699 | 32,129 |
Residential First Mortgages Portfolio Segment [Member] | ||
Loans | 156,709 | 170,374 |
Residential First Mortgages Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Loans | 156,563 | 169,896 |
Residential First Mortgages Portfolio Segment [Member] | Nonperforming Financing Receivable [Member] | ||
Loans | 146 | 478 |
Residential Rentals Portfolio Segment [Member] | ||
Loans | 124,298 | 110,228 |
Residential Rentals Portfolio Segment [Member] | Unrated [Member] | ||
Loans | 37,478 | 28,428 |
Residential Rentals Portfolio Segment [Member] | Pass [Member] | ||
Loans | 85,551 | 80,279 |
Residential Rentals Portfolio Segment [Member] | Substandard [Member] | ||
Loans | 1,269 | 1,521 |
Construction And Land Development Portfolio Segment [Member] | ||
Loans | 29,705 | 27,871 |
Construction And Land Development Portfolio Segment [Member] | Unrated [Member] | ||
Loans | 2,172 | 1,775 |
Construction And Land Development Portfolio Segment [Member] | Pass [Member] | ||
Loans | 26,805 | 25,367 |
Construction And Land Development Portfolio Segment [Member] | Substandard [Member] | ||
Loans | 728 | 729 |
Home Equity And Second Mortgages Portfolio Segment [Member] | ||
Loans | 35,561 | 21,351 |
Home Equity And Second Mortgages Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Loans | 35,414 | 21,217 |
Home Equity And Second Mortgages Portfolio Segment [Member] | Nonperforming Financing Receivable [Member] | ||
Loans | 147 | 134 |
Commercial Portfolio [Member] | ||
Loans | 1,153,901 | 957,746 |
Commercial Portfolio [Member] | Unrated [Member] | ||
Loans | 186,460 | 130,996 |
Commercial Portfolio [Member] | Pass [Member] | ||
Loans | 936,906 | 787,949 |
Commercial Portfolio [Member] | Substandard [Member] | ||
Loans | 30,535 | 38,801 |
Commercial Equipment Portfolio Segment [Member] | ||
Loans | 50,202 | 35,916 |
Commercial Equipment Portfolio Segment [Member] | Unrated [Member] | ||
Loans | 15,373 | 10,856 |
Commercial Equipment Portfolio Segment [Member] | Pass [Member] | ||
Loans | 33,685 | 23,581 |
Commercial Equipment Portfolio Segment [Member] | Substandard [Member] | ||
Loans | 1,144 | 1,479 |
Consumer Portfolio Segment [Member] | ||
Loans | 751 | 573 |
Consumer Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Loans | 751 | 573 |
Non Commercial Portfolio Segment [Member] | ||
Loans | 193,021 | 192,298 |
Non Commercial Portfolio Segment [Member] | Unrated [Member] | ||
Loans | 146,889 | 152,616 |
Non Commercial Portfolio Segment [Member] | Pass [Member] | ||
Loans | 44,441 | 38,081 |
Non Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Loans | 96 | |
Non Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Loans | $ 1,691 | $ 1,505 |
Loans (Acquired PCI Loans) (Det
Loans (Acquired PCI Loans) (Details) - County First Acquisition [Member] - PCI Loans [Member] $ in Thousands | Jan. 31, 2018USD ($) |
Contractual principal and interest at acquisition | $ 6,126 |
Nonaccretable difference | (1,093) |
Expected cash flows at acquisition | 5,033 |
Accretable yield | (516) |
Basis in PCI loans at acquisition - estimated fair value | $ 4,517 |
Loans (Changes in the accretabl
Loans (Changes in the accretable yield for PCI loans) (Details) - PCI Loans [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Additions | $ 516 |
Accretion | (230) |
Reclassification from (to) nonaccretable difference | 134 |
Other changes, net | 313 |
Accretable yield, end of period | $ 734 |
Loans (Acquired and Non-Acquire
Loans (Acquired and Non-Acquired Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Loans receivable | $ 1,346,922 | $ 1,150,044 |
Deferred loan fees and premiums | 1,183 | 1,086 |
Total loans, net of deferred costs | $ 1,348,105 | $ 1,151,130 |
Percentage Status Of Loan | 100.00% | 100.00% |
Deferred loan fees and premiums, percentage | 0.09% | 0.09% |
PCI Loans [Member] | ||
Loans receivable | $ 3,220 | |
Total loans, net of deferred costs | $ 3,220 | |
Percentage Status Of Loan | 0.19% | |
All Other Loans [Member] | ||
Loans receivable | $ 1,343,702 | |
Total loans, net of deferred costs | 1,344,885 | |
County First Acquisition [Member] | ||
Loans receivable | $ 106,887 | |
Percentage Status Of Loan | 7.94% | 0.00% |
County First Acquisition [Member] | PCI Loans [Member] | ||
Loans receivable | $ 3,220 | |
Percentage Status Of Loan | 0.24% | 0.00% |
County First Acquisition [Member] | All Other Loans [Member] | ||
Loans receivable | $ 103,667 | |
Percentage Status Of Loan | 7.70% | 0.00% |
Non Acquired [Member] | ||
Loans receivable | $ 1,240,035 | $ 1,150,044 |
Percentage Status Of Loan | 92.06% | 100.00% |
Loans (Loans Maturing in Portfo
Loans (Loans Maturing in Portfolio Based on Contractual Terms) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Contract receivable, due within one year | $ 210,490 |
Contract receivable, due after one year through five years | 283,098 |
Contract receivable, due in more than five years | 853,334 |
Commercial Real Estate Portfolio Segment [Member] | |
Contract receivable, due within one year | 90,152 |
Contract receivable, due after one year through five years | 184,151 |
Contract receivable, due in more than five years | 603,713 |
Residential First Mortgages Portfolio Segment [Member] | |
Contract receivable, due within one year | 7,895 |
Contract receivable, due after one year through five years | 31,176 |
Contract receivable, due in more than five years | 117,638 |
Residential Rentals Portfolio Segment [Member] | |
Contract receivable, due within one year | 7,723 |
Contract receivable, due after one year through five years | 30,936 |
Contract receivable, due in more than five years | 85,639 |
Construction And Land Development Portfolio Segment [Member] | |
Contract receivable, due within one year | 18,905 |
Contract receivable, due after one year through five years | 10,800 |
Home Equity And Second Mortgages Portfolio Segment [Member] | |
Contract receivable, due within one year | 220 |
Contract receivable, due after one year through five years | 548 |
Contract receivable, due in more than five years | 34,793 |
Commercial Portfolio Segment [Member] | |
Contract receivable, due within one year | 71,680 |
Consumer Portfolio Segment [Member] | |
Contract receivable, due within one year | 297 |
Contract receivable, due after one year through five years | 387 |
Contract receivable, due in more than five years | 67 |
Commercial Equipment Portfolio Segment [Member] | |
Contract receivable, due within one year | 13,618 |
Contract receivable, due after one year through five years | 25,100 |
Contract receivable, due in more than five years | $ 11,484 |
Loans (Loans Due After One Year
Loans (Loans Due After One Year) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Loans with fixed rate | $ 368,517 |
Loans with floating or adjustable rates | 767,915 |
Loans, total | 1,136,432 |
Commercial Real Estate Portfolio Segment [Member] | |
Loans with fixed rate | 203,383 |
Loans with floating or adjustable rates | 584,481 |
Loans, total | 787,864 |
Residential First Mortgages Portfolio Segment [Member] | |
Loans with fixed rate | 96,009 |
Loans with floating or adjustable rates | 52,805 |
Loans, total | 148,814 |
Residential Rentals Portfolio Segment [Member] | |
Loans with fixed rate | 25,367 |
Loans with floating or adjustable rates | 91,208 |
Loans, total | 116,575 |
Construction And Land Development Portfolio Segment [Member] | |
Loans with fixed rate | 9,200 |
Loans with floating or adjustable rates | 1,600 |
Loans, total | 10,800 |
Home Equity And Second Mortgages Portfolio Segment [Member] | |
Loans with fixed rate | 691 |
Loans with floating or adjustable rates | 34,650 |
Loans, total | 35,341 |
Consumer Portfolio Segment [Member] | |
Loans with fixed rate | 454 |
Loans, total | 454 |
Commercial Equipment Portfolio Segment [Member] | |
Loans with fixed rate | 33,413 |
Loans with floating or adjustable rates | 3,171 |
Loans, total | $ 36,584 |
Loans (Related Party Loans) (De
Loans (Related Party Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loans [Abstract] | |||
Balance, beginning of period | $ 26,476 | $ 26,464 | $ 28,105 |
Loans and additions | 46 | 3,699 | 2,547 |
Change in Directors' status | 575 | 2,299 | |
Repayments | (2,245) | (3,687) | (6,487) |
Balance, end of period | $ 24,852 | $ 26,476 | $ 26,464 |
Loan Servicing (Narrative) (Det
Loan Servicing (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Loan Servicing [Abstract] | ||
Outstanding Balances Of Mortgages Serviced For Others | $ 38.1 | $ 43.7 |
Loan Servicing (Schedule of Par
Loan Servicing (Schedule of Participating Mortgage Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loan Servicing [Abstract] | |||
Balance, beginning of the year | $ 54 | $ 128 | $ 219 |
Amortization | (36) | (74) | (91) |
Balance, end of year | $ 18 | $ 54 | $ 128 |
Other Real Estate Owned ("ORE_3
Other Real Estate Owned ("OREO") (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Additions of underlying property | $ 307 | $ 3,634 | |
Foreclosed Real Estate Disposals | 1,005 | 1,456 | |
Other real estate owned, carrying amount | 8,111 | 9,341 | $ 7,763 |
Recognized net losses on OREO disposals | 43 | ||
Repossessed Assets | 8,111 | 9,341 | 7,763 |
Carrying Value Of Impaired Loans With Formal Foreclosure Proceedings In Process | 122 | ||
Valuation allowance | 532 | 600 | $ 574 |
Residential Lots [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Additions of underlying property | 103 | ||
Proceeds from sale of OREO | 190 | ||
Gains (losses) on sale of OREO | (12) | ||
Commercial Office Building [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Additions of underlying property | 495 | ||
Development Project [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Additions of underlying property | 165 | ||
Commercial Real Estate [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Additions of underlying property | 142 | ||
Proceeds from sale of OREO | 807 | ||
Gains (losses) on sale of OREO | $ 4 | ||
One Residential Property And Three Residential Lots [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Financing provided | 200 | ||
Stalled Residential Development Project [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Additions of underlying property | $ 3,000 |
Other Real Estate Owned ("ORE_4
Other Real Estate Owned ("OREO") (Foreclosed Real Estate Roll Forward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Real Estate Owned ("OREO") [Abstract] | |||
Balance at beginning of year | $ 9,341 | $ 7,763 | |
Additions of underlying property | 307 | 3,634 | |
Disposals of underlying property | (1,005) | (1,456) | |
Valuation allowance | (532) | (600) | $ (574) |
Balance at end of period | $ 8,111 | $ 9,341 | $ 7,763 |
Other Real Estate Owned ("ORE_5
Other Real Estate Owned ("OREO") (Foreclosed Real Estate Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Real Estate Owned ("OREO") [Abstract] | |||
Valuation allowance | $ 532 | $ 600 | $ 574 |
Losses (gains) on dispositions | 8 | (43) | 436 |
Operating expenses | 117 | 146 | 287 |
Expenses applicable to OREO assets | $ 657 | $ 703 | $ 1,297 |
Premises and Equipment and He_2
Premises and Equipment and Held for Sale Premises and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating leases, rent expense | $ 974 | $ 761 | $ 723 |
Small Office Condo [Member] | |||
Long Lived Assets To Be Disposed Of Fair Value | $ 345 | ||
Proceeds from Sale of Property, Plant, and Equipment | 392 | ||
Gain (Loss) on Disposition of Property Plant Equipment | $ 47 |
Premises and Equipment and He_3
Premises and Equipment and Held for Sale Premises and Equipment (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Premises and Equipment [Abstract] | ||
Land | $ 4,358 | $ 4,172 |
Building and improvements | 25,198 | 23,038 |
Furniture and equipment | 9,715 | 9,225 |
Automobiles | 303 | 303 |
Total cost | 39,574 | 36,738 |
Less accumulated depreciation | 16,652 | 15,347 |
Premises and equipment, net | $ 22,922 | $ 21,391 |
Premises and Equipment and He_4
Premises and Equipment and Held for Sale Premises and Equipment (Schedule of Future Minimum Rental Payments for Operating Leases) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Premises and Equipment [Abstract] | |
2,018 | $ 663 |
2,019 | 715 |
2,020 | 735 |
2,021 | 668 |
2,022 | 681 |
Thereafter | 4,488 |
Total | $ 7,950 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)customer | Dec. 31, 2017USD ($)customer | |
Deposits | $ 1,429,629 | $ 1,106,237 |
Time deposits $250000 or more | $ 117,200 | 167,500 |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk, Percentage | 2.00% | |
Concentration Risk, Customer With Deposits Exceeding Threshold | customer | 1 | |
Executive Officers And Directors [Member] | ||
Deposits | $ 7,900 | 9,200 |
One Customer With Deposits With Company [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | ||
Deposits | $ 158,800 | $ 22,600 |
Concentration Risk, Percentage | 2.00% | |
Concentration Risk, Customer With Deposits Exceeding Threshold | customer | 1 | |
Concertration Risk, Percentage Of Total Deposits | 11.10% | 2.00% |
Deposits (Schedule Of Deposits)
Deposits (Schedule Of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Noninterest-bearing demand | $ 209,378 | $ 159,844 |
Interest-bearing | ||
Demand | 437,169 | 215,447 |
Money market deposits | 266,160 | 226,351 |
Savings | 69,893 | 52,990 |
Certificates of deposit | 447,029 | 451,605 |
Total interest-bearing | 1,220,251 | 946,393 |
Total deposits | $ 1,429,629 | $ 1,106,237 |
Deposits (Schedule Of Deposits
Deposits (Schedule Of Deposits Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Within one year | $ 278,751 | |
Year 2 | 130,161 | |
Year 3 | 14,109 | |
Year 4 | 16,768 | |
Year 5 | 7,240 | |
Time deposits | $ 447,029 | $ 451,605 |
Short-Term Borrowings and Lon_3
Short-Term Borrowings and Long-Term Debt (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Repayments Of Long Term Debt | $ 55,064 | $ 20,061 | $ 5,058 |
Proceeds From Issuance Of Long-Term Debt | 20,000 | 10,000 | 15,000 |
Long-Term Debt | 20,436 | 55,498 | 65,559 |
Debt conversion, original debt, amount | 20,400 | 55,500 | |
Long-term debt | 20,436 | 55,498 | $ 65,559 |
Due in 2018 | 35,000 | ||
Due in 2022 | 10,302 | ||
Daily advances outstanding | 0 | 6,000 | |
Short-term advances | $ 35,000 | 81,500 | |
Fixed Rate Advance Matures in 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds From Issuance Of Long-Term Debt | $ 10,000 | ||
Interest rate | 1.38% | ||
Fixed Rate Advance Matures in 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.81% | ||
Proceeds from Issuance of Debt | $ 10,000 | ||
Fixed Rate Advance Matures in 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.92% | ||
Proceeds from Issuance of Debt | $ 10,000 | ||
Fixed Rate Convertible [Member] | |||
Debt Instrument [Line Items] | |||
Long-Term Debt | 0 | $ 10,000 | |
Long-term debt | 0 | 10,000 | |
Due in 2018 | 10,000 | ||
Variable Rate [Member] | |||
Debt Instrument [Line Items] | |||
Long-Term Debt | 0 | 10,000 | |
Long-term debt | 0 | 10,000 | |
Federal Reserve Bank Of Richmond [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 5,700 | 7,500 | |
Amount outstanding | 0 | 0 | |
Other Commercial Banks [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 22,000 | ||
Amount outstanding | 0 | 0 | |
Credit Facility With Commercial Bank [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 40,000 | ||
Amount outstanding | 0 | 0 | |
Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, fair value of amount outstanding | 30,000 | ||
Federal Home Loan Bank Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 380,500 | 309,600 | |
Security owned and pledged as collateral, fair value | 589,200 | 584,600 | |
FHLB lendable collateral | 466,000 | 452,600 | |
FHLB lendable pledged collateral | 298,600 | 330,100 | |
Line of credit facility, current borrowing capacity | 213,100 | 187,100 | |
Line of credit facility, fair value of amount outstanding | 55,400 | 143,000 | |
FHLB lendable unpledged collateral | $ 167,400 | 122,500 | |
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Initial period after which debt callable | 5 years | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Initial period after which debt callable | 6 months | ||
Advances and Security Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 506,200 | $ 420,300 | |
Percentage of assets limited to maximum borrowing capacity | 30.00% |
Short-Term Borrowings and Lon_4
Short-Term Borrowings and Long-Term Debt (Schedule Related to the Classification of Debt Interest Rate) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average rate | 2.63% | 1.42% |
Matures through | 2,036 | 2,036 |
Fixed Rate [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.92% | 2.83% |
Fixed Rate [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.00% | 0.95% |
Fixed Rate Convertible [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average rate | 3.47% | |
Matures through | 2,018 | |
Fixed Rate Convertible [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.47% | |
Fixed Rate Convertible [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.47% | |
Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average rate | 4.00% | |
Matures through | 2,020 | |
Variable Rate [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.00% | |
Variable Rate [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.00% |
Short-Term Borrowings and Lon_5
Short-Term Borrowings and Long-Term Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Long-term debt | |||
Long-term debt outstanding at end of period | $ 20,436 | $ 55,498 | $ 65,559 |
Weighted average rate on outstanding long-term debt | 2.84% | 2.38% | 2.27% |
Maximum outstanding long-term debt of any month end | $ 55,493 | $ 65,554 | $ 65,593 |
Average outstanding long-term debt | $ 35,684 | $ 58,704 | $ 60,503 |
Approximate average rate paid on long-term debt | 2.39% | 2.24% | 2.41% |
Short-term borrowings | |||
Short-term borrowings outstanding at end of period | $ 35,000 | $ 87,500 | $ 79,000 |
Weighted average rate on short-term borrowings | 2.51% | 1.34% | 0.71% |
Maximum outstanding short-term borrowings at any month end | $ 74,000 | $ 109,000 | $ 79,000 |
Average outstanding short-term borrowings | $ 42,286 | $ 91,797 | $ 39,802 |
Approximate average rate paid on short-term borrowings | 1.81% | 1.15% | 0.49% |
Short-Term Borrowings and Lon_6
Short-Term Borrowings and Long-Term Debt (Schedule of Maturities of Long-term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||
Due in 2018 | $ 35,000 | ||
Due in 2019 | $ 10,000 | ||
Due in 2020 | 10,000 | 10,000 | |
Due in 2021 | 246 | ||
Due in 2022 | 10,302 | ||
Thereafter | 190 | 196 | |
Long-term debt, total | 20,436 | 55,498 | $ 65,559 |
Fixed Rate [Member] | |||
Debt Instrument [Line Items] | |||
Due in 2018 | 25,000 | ||
Due in 2019 | 10,000 | ||
Due in 2020 | 10,000 | ||
Due in 2021 | 246 | ||
Due in 2022 | 10,302 | ||
Thereafter | 190 | 196 | |
Long-term debt, total | 20,436 | 35,498 | |
Fixed Rate Convertible [Member] | |||
Debt Instrument [Line Items] | |||
Due in 2018 | 10,000 | ||
Long-term debt, total | 0 | 10,000 | |
Variable Rate [Member] | |||
Debt Instrument [Line Items] | |||
Due in 2020 | 10,000 | ||
Long-term debt, total | $ 0 | $ 10,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 21.00% | 35.00% | 34.00% |
Recognized provisional net tax expense | $ 2,700 | ||
Allowance for loan losses | 3,020 | $ 2,893 | |
Unrecorded income tax liability from bad debt deductions | 330 | 330 | |
Retained Earnings [Member] | |||
Allowance for loan losses | $ 1,200 | $ 1,200 |
Income Taxes (Schedule of Alloc
Income Taxes (Schedule of Allocation of Federal and State Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current | |||||||||||||||
Federal | $ 2,810 | $ 5,584 | $ 3,675 | ||||||||||||
State | 1,653 | 1,686 | 1,296 | ||||||||||||
Current income tax expense (benefit), total | 4,463 | 7,270 | 4,971 | ||||||||||||
Deferred | |||||||||||||||
Federal | (202) | 1,894 | (460) | ||||||||||||
State | (88) | (7) | (95) | ||||||||||||
Deferred income tax expense (benefit), total | (290) | 1,887 | (555) | ||||||||||||
Income tax expense (benefit), total | $ 1,371 | $ 1,441 | $ 828 | $ 533 | $ 4,456 | $ 1,717 | $ 1,536 | $ 1,448 | $ 1,356 | $ 1,014 | $ 1,078 | $ 968 | $ 4,173 | $ 9,157 | $ 4,416 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Expected income tax expense at federal tax rate | $ 3,234 | $ 5,728 | $ 3,994 | ||||||||||||
State taxes net of federal benefit | 1,281 | 1,096 | 796 | ||||||||||||
Nondeductible expenses | 85 | 255 | 37 | ||||||||||||
Nontaxable income | (248) | (376) | (375) | ||||||||||||
Provisional deferred tax adjustment related to reduction in U.S. federal statutory income tax rate | 2,740 | ||||||||||||||
Other | (179) | (286) | (36) | ||||||||||||
Income tax expense (benefit), total | $ 1,371 | $ 1,441 | $ 828 | $ 533 | $ 4,456 | $ 1,717 | $ 1,536 | $ 1,448 | $ 1,356 | $ 1,014 | $ 1,078 | $ 968 | $ 4,173 | $ 9,157 | $ 4,416 |
Expected income tax expense at federal tax rate | 21.00% | 35.00% | 34.00% | ||||||||||||
State taxes net of federal benefit | 8.32% | 6.70% | 6.78% | ||||||||||||
Nondeductible expenses | 0.55% | 1.56% | 0.31% | ||||||||||||
Nontaxable income | (1.61%) | (2.30%) | (3.19%) | ||||||||||||
Provisional deferred tax adjustment related to reduction in U.S. federal statutory income tax rate | 0.00% | 16.74% | 0.00% | ||||||||||||
Other | (1.16%) | (1.75%) | (0.31%) | ||||||||||||
Total income tax expense | 27.10% | 55.95% | 37.59% | ||||||||||||
Parent Company [Member] | |||||||||||||||
Income tax expense (benefit), total | $ (1,078) | $ (1,583) | $ (1,321) |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||
Allowance for loan losses | $ 3,020 | $ 2,893 |
Deferred compensation | 2,676 | 2,142 |
OREO valuation allowance and expenses | 355 | 337 |
Unrealized loss on investment securities | 724 | 452 |
Depreciation | 29 | |
Other | 144 | 178 |
Deferred tax assets, gross | 6,919 | 6,031 |
Deferred tax liabilities | ||
Fair value adjustments for acquired assets and liabilities | 65 | |
FHLB stock dividends | 109 | 109 |
Depreciation | 52 | |
Deferred tax liabilities, gross | 226 | 109 |
Net deferred tax assets | $ 6,693 | $ 5,922 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | ||
Line of credit facility, commitment amount | $ 56.8 | $ 65.6 |
Letters of credit outstanding, amount | 21.2 | 17.9 |
Amounts available under lines of credit | $ 211.5 | $ 162.2 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Outstanding, Intrinsic Value | |||
Aggregate intrinsic value exercisable | |||
Restricted Stock and Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 474 | 515 | $ 489 |
Unrecognized stock compensation expense | $ 430 | $ 521 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option maximum term | 10 years |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Share-based Compensation, Stock Options, Activity) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Stock-Based Compensation [Abstract] | |
Shares outstanding, beginning balance | shares | 15,081 |
Shares exercised | shares | (14,231) |
Shares expired | shares | (350) |
Shares forfeited | shares | (500) |
Weighted average exercise price outstanding, beginning balance | $ / shares | $ 27.70 |
Weighted average exercise price exercised | $ / shares | 27.70 |
Weighted average exercise price expired | $ / shares | 27.70 |
Weighted average exercise price forfeited | $ / shares | $ 27.70 |
Aggregate intrinsic value outstanding, beginning balance | $ | |
Aggregate intrinsic value exercised | $ | 134 |
Aggregate intrinsic value outstanding, ending balance | $ | |
Aggregate intrinsic value exercisable | $ | |
Weighted-average contractual life remaining in years outstanding (in years) | 0 years |
Weighted-average contractual life remaining in years exercisable (in years) | 0 years |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity) (Details) - Restricted Stock [Member] | 12 Months Ended | |
Dec. 31, 2018$ / sharesshares | Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning period, nonvested number of shares | shares | 32,809 | 47,881 |
Number of shares, granted | shares | 10,662 | 6,752 |
Number of shares, vested | shares | (17,607) | (21,738) |
Number of shares, cancelled | shares | (391) | (86) |
Ending period, nonvested number of shares | shares | 25,473 | 32,809 |
Beginning period, weighted average grant date fair value, nonvested number of shares | $ / shares | $ 22.61 | $ 20.41 |
Weighted average grant date fair value, granted | $ / shares | 36.43 | 30.20 |
Weighted average grant date fair value, vested | $ / shares | $ 21.85 | $ 20.13 |
Weighted average grant date fair value, cancelled | $ / shares | 27.69 | 20.75 |
Ending period, weighted average grant date fair value, nonvested number of shares | $ / shares | $ 28.76 | $ 22.61 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employee Stock Ownership Plan (ESOP), cash contributions to ESOP | $ 124,000 | $ 242,000 | $ 99,000 | ||||
Employee Stock Ownership Plan (ESOP), number of allocated shares | 161,173 | 161,173 | 223,344 | ||||
Employee Stock Ownership Plan (ESOP), number of unallocated shares | 21,091 | 21,091 | 22,908 | ||||
Employee Stock Ownership Plan (ESOP), allocated shares market value | $ 5,300,000 | $ 5,300,000 | $ 9,400,000 | ||||
Employee Stock Ownership Plan (ESOP), allocated excess of fair market value of leveraged ESOP shares released | 33,000 | $ 33,000 | 110,000 | ||||
Employee Stock Ownership Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employee Stock Ownership Plan (ESOP) promissory note amortization period | 7 years | ||||||
Employee Stock Ownership Plan (ESOP), debt structure offset by purchase of common shares, amount | 137,000 | $ 137,000 | $ 823,000 | ||||
Promissory notes | $ 718,000 | $ 718,000 | 755,000 | ||||
Employee Stock Ownership Plan (ESOP), Debt Structure, Direct Loan, Employer Cash Payments Used for Debt Service | $ 174,000 | $ 237,000 | |||||
Employee Stock Ownership Plan (ESOP), debt structure direct loan employer shares used for debt service, Shares | 6,061 | 10,157 | |||||
Employee Stock Ownership Plan (ESOP), debt structure offset by purchase of common shares | 4,244 | 23,503 | |||||
Share Price | $ 29.24 | $ 29.24 | $ 38.30 | ||||
Prime Rate [Member] | Employee Stock Ownership Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employee Stock Ownership Plan (ESOP) basis spread on variable rate | 1.00% | ||||||
401 (K) Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employer matching contribution | 50.00% | 50.00% | 50.00% | ||||
Maximum employee contribution employer will match | 8.00% | 8.00% | 8.00% | ||||
Minimim period of service | 6 months | ||||||
Period of service eligible for service | 3 years | ||||||
Retirement plan expense | $ 405,000 | $ 298,000 | $ 346,000 | ||||
Individual Supplemental Retirement Plans [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Retirement plan expense | $ 1,109,000 | 637,000 | 525,000 | ||||
Number of years following retirement benefit is paid | 15 years | ||||||
Nonqualified Retirement Plan For Non Employee Directors [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employee benefit plan requisite service period | 15 years | ||||||
Employee benefit plan vesting period | 2 years | ||||||
Retirement plan expense | $ 35,000 | 29,000 | $ 20,000 | ||||
Liability | $ 2,100,000 | 2,100,000 | $ 2,000,000 | ||||
Maximum annual benefit following retirement | $ 3,500 | ||||||
Number of years following retirement benefit is paid | 10 years | ||||||
Maximum [Member] | Nonqualified Retirement Plan For Non Employee Directors [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Period for distribution of deferred amount | 10 years | ||||||
Minimum [Member] | Nonqualified Retirement Plan For Non Employee Directors [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Period for distribution of deferred amount | 1 year |
Guaranteed Preferred Benefici_2
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures ("TRUPs") (Narrative) (Details) - USD ($) | Jun. 15, 2005 | Jul. 22, 2004 | Dec. 31, 2018 |
Capital Trust I I [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 5,000,000 | ||
Additional amount contributed to purchase debt | 155,000 | ||
Junior subordinated notes purchased | $ 5,200,000 | ||
Debt instrument, maturity date | Jun. 15, 2035 | ||
Capital Trust I [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 7,000,000 | ||
Additional amount contributed to purchase debt | 217,000 | ||
Junior subordinated notes purchased | $ 7,200,000 | ||
Debt instrument, maturity date | Jul. 22, 2034 | ||
London Interbank Offered Rate (LIBOR) [Member] | Capital Trust I I [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, description of variable rate basis | 90-day LIBOR rate plus 1.70% | ||
Debt instrument, percent spread on variable rate | 1.70% | ||
London Interbank Offered Rate (LIBOR) [Member] | Capital Trust I [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, description of variable rate basis | 90-day LIBOR rate plus 2.60% | ||
Debt instrument, percent spread on variable rate | 2.60% |
Subordinated Notes (Details)
Subordinated Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Feb. 13, 2015 | Feb. 06, 2015 | |
Subordinated notes | $ 23,000 | $ 23,000 | ||
Subordinated note terms and conditions | Interest will accrue at a fixed per annum rate of 6.25% from and including the issue date to but excluding February 15, 2020. From and including February 15, 2020 to but excluding the maturity date interest will accrue at a floating rate equal to the three-month LIBOR plus 479 basis points. Interest is payable on the notes on February 15 and August 15 of each year, commencing August 15, 2015, through February 15, 2020, and thereafter February 15, May 15, August 15 and November 15 of each year through the maturity date or earlier redemption date. | |||
Preferred stock, redemption date | Feb. 13, 2015 | |||
Preferred stock, value | $ 20,000 | |||
Subordinated Debt [Member] | ||||
Subordinated notes due date | Feb. 15, 2025 | |||
Debt Instrument, Face Amount | $ 23,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | |||
Subordinated notes interest rate | 6.25% | 6.25% | ||
Debt Instrument, Maturity Date | Feb. 15, 2020 | |||
Redemption percentage | 100.00% | |||
Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt instrument, percent spread on variable rate | 4.79% |
Regulatory Capital (Narrative)
Regulatory Capital (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Jan. 01, 2019 | |
Common equity Tier 1 capital to risk-weighted assets minimum ratio | 4.50% | |
Total Capital to risk-weighted assets | 8.00% | |
Tier 1 leverage ratio | 4.00% | |
PCA well capitalized | 5.00% | |
Minimum [Member] | ||
Minimum ratio of Tier 1 capital to risk-weighted assets | 4.00% | |
Maximum [Member] | ||
Minimum ratio of Tier 1 capital to risk-weighted assets | 6.00% | |
Conservation Buffer Rule Starting January 2016 [Member] | ||
Capital conservation buffer percentage increase | 0.625% | |
Conservation Buffer Rule Subsequent to 2016 [Member] | ||
Capital conservation buffer percentage increase | 0.625% | |
Scenario, Forecast [Member] | ||
Capital conversion buffer percentage | 2.50% |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Regulatory Assets | ||||
Common Equity | $ 154,482 | $ 109,957 | ||
Goodwill | (10,835) | |||
Core deposit intangible (net of deferred tax liability) | (2,034) | |||
AOCI Losses | 1,847 | 1,191 | $ 928 | $ 251 |
Common equity Tier 1 capital | 143,460 | 111,148 | ||
TRUPs | 12,000 | 12,000 | ||
Tier 1 capital | 155,460 | 123,148 | ||
Allowable reserve for credit losses and other Tier 2 adjustments | 11,027 | 10,545 | ||
Subordinated notes | 23,000 | 23,000 | ||
Tier 2 capital | 189,487 | 156,693 | ||
Risk-weighted assets ("RWA") | 1,384,807 | 1,169,341 | ||
Average Assets ("AA") | $ 1,635,594 | $ 1,401,741 | ||
Common Tier 1 capital to RWA, 2019 Regulatory Min. Ratio + CCB | 7.00% | |||
Tier 1 capital to RWA, 2019 Regulatory Min. Ratio + CCB | 8.50% | |||
Tier 2 capital to RWA, 2019 Regulatory Min. Ratio + CCB | 10.50% | |||
Common Tier 1 capital to RWA | 10.36% | 9.51% | ||
Tier 1 capital to RWA | 11.23% | 10.53% | ||
Tier 2 capital to RWA | 13.68% | 13.40% | ||
Tier 1 capital to AA (leverage) | 9.50% | 8.79% | ||
Capital required for capital adequacy to risk weighted assets | 8.00% | |||
Tier one leverage capital required to be well capitalized to average assets | 5.00% | |||
Bank [Member] | ||||
Regulatory Assets | ||||
Common Equity | $ 185,073 | $ 139,046 | ||
Goodwill | (10,835) | |||
Core deposit intangible (net of deferred tax liability) | (2,034) | |||
AOCI Losses | 1,847 | 1,191 | ||
Common equity Tier 1 capital | 174,051 | 140,237 | ||
Tier 1 capital | 174,051 | 140,237 | ||
Allowable reserve for credit losses and other Tier 2 adjustments | 11,027 | 10,545 | ||
Tier 2 capital | 185,078 | 150,782 | ||
Risk-weighted assets ("RWA") | 1,383,048 | 1,164,478 | ||
Average Assets ("AA") | $ 1,632,846 | $ 1,398,001 | ||
Common Tier 1 capital to RWA | 12.58% | 12.04% | ||
Tier 1 capital to RWA | 12.58% | 12.04% | ||
Tier 2 capital to RWA | 13.38% | 12.95% | ||
Tier 1 capital to AA (leverage) | 10.66% | 10.03% |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2017item | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value assets, level 1 to 2 | $ 0 | $ 0 | ||
Fair value assets, level 2 to 1 | 0 | 0 | ||
Fair value assets, transfer into level 3 | 0 | |||
Fair value assets, transfer out of level 3 | 0 | |||
Fair value liabilities, level 1 to 2 | 0 | 0 | ||
Fair value liabilities, level 2 to 1 | 0 | 0 | ||
Fair value liabilities, transfer into level 3 | 0 | |||
Fair value liabilities, transfer out of level 3 | 0 | |||
Fair value assets, transfer from level 2 to level 3 | item | 1 | |||
Loans with impairment, unpaid principal | $ 4,100 | 4,200 | ||
Small Office Condo [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long Lived Assets To Be Disposed Of Fair Value | $ 345 | |||
Proceeds from Sale of Property, Plant, and Equipment | 392 | |||
Gain (Loss) on Disposition of Property Plant Equipment | $ 47 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | $ 119,976 | $ 68,164 |
Equity securities carried at fair value through income | 4,428 | |
US Agency [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 11,875 | 12,517 |
Bond Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 4,423 | |
CRA Investment Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities carried at fair value through income | 4,428 | |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 119,976 | 68,164 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 100,740 | 44,137 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 7,361 | 7,087 |
Fair Value, Measurements, Recurring [Member] | US Agency [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 11,875 | 12,517 |
Fair Value, Measurements, Recurring [Member] | Bond Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 4,423 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 1 [Member] | CRA Investment Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities carried at fair value through income | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | US Agency [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 119,976 | 68,164 |
Fair Value, Inputs, Level 2 [Member] | CRA Investment Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities carried at fair value through income | 4,428 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 119,976 | 68,164 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 100,740 | 44,137 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 7,361 | 7,087 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Agency [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 11,875 | 12,517 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Bond Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 4,423 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 3 [Member] | CRA Investment Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities carried at fair value through income | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | US Agency [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Nonrecurring Basis) (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | $ 2,887 | $ 3,202 |
Other Real Estate Owned, Fair Value Disclosures | 8,111 | 9,341 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Other Real Estate Owned, Fair Value Disclosures | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Other Real Estate Owned, Fair Value Disclosures | ||
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 2,887 | 3,202 |
Other Real Estate Owned, Fair Value Disclosures | 8,111 | 9,341 |
Commercial Real Estate Portfolio Segment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 2,699 | 1,638 |
Commercial Real Estate Portfolio Segment [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Commercial Real Estate Portfolio Segment [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Commercial Real Estate Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 2,699 | 1,638 |
Commercial Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 163 | |
Commercial Loans [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Commercial Loans [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Commercial Loans [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 163 | |
Residential First Mortgages Portfolio Segment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 457 | |
Residential First Mortgages Portfolio Segment [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Residential First Mortgages Portfolio Segment [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Residential First Mortgages Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 457 | |
Residential Rentals Portfolio Segment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 377 | |
Residential Rentals Portfolio Segment [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Residential Rentals Portfolio Segment [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Residential Rentals Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 377 | |
Construction And Land Development Portfolio Segment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 566 | |
Construction And Land Development Portfolio Segment [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Construction And Land Development Portfolio Segment [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Construction And Land Development Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 566 | |
Commercial Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 25 | 164 |
Commercial Equipment [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Commercial Equipment [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Commercial Equipment [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | $ 25 | $ 164 |
Fair Value Measurements (Unobse
Fair Value Measurements (Unobservable Inputs Used in Level 3 Fair Value Measurements) (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Loans With Impairment [Member] | ||
Assets, Fair Value Disclosure | $ 2,887 | $ 3,202 |
Other Real Estate Owned [Member] | ||
Assets, Fair Value Disclosure | $ 8,111 | $ 9,341 |
Maximum [Member] | Loans With Impairment [Member] | ||
Fair Value Inputs, Discount Rate | 50.00% | 50.00% |
Maximum [Member] | Other Real Estate Owned [Member] | ||
Fair Value Inputs, Discount Rate | 50.00% | 50.00% |
Minimum [Member] | Loans With Impairment [Member] | ||
Fair Value Inputs, Discount Rate | 0.00% | 0.00% |
Minimum [Member] | Other Real Estate Owned [Member] | ||
Fair Value Inputs, Discount Rate | 0.00% | 0.00% |
Weighted Average [Member] | Loans With Impairment [Member] | ||
Fair Value Inputs, Discount Rate | 29.00% | 24.00% |
Weighted Average [Member] | Other Real Estate Owned [Member] | ||
Fair Value Inputs, Discount Rate | 14.00% | 12.00% |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value of Financial Instruments [Abstract] | ||
Loans held for sale | $ 0 | $ 0 |
Loans commitments outstanding | 47,300,000 | 65,600,000 |
Letters of credit outstanding, amount | 21,200,000 | 17,900,000 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 211,500,000 | $ 162,200,000 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Investment securities - AFS | $ 119,976 | $ 68,164 |
Investment securities - HTM | 93,745 | 98,007 |
Equity securities carried at fair value through income | 4,428 | |
Non-marketable equity securities in other financial institutions | 209 | 121 |
FHLB stock | 3,821 | 7,276 |
Loans receivable | 1,298,465 | 1,097,592 |
Accrued Interest Receivable | 4,957 | 4,511 |
Investments in BOLI | 36,295 | 29,398 |
Liabilities | ||
Savings, NOW and money market accounts | 982,600 | 654,632 |
Time deposits | 446,683 | 453,644 |
Long-term debt | 20,568 | 57,421 |
Short term borrowings | 35,016 | 87,208 |
TRUPs | 10,924 | 9,400 |
Subordinated notes | 23,085 | 22,400 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Investment securities - AFS | ||
Investment securities - HTM | 999 | 1,000 |
Equity securities carried at fair value through income | ||
Non-marketable equity securities in other financial institutions | ||
FHLB stock | ||
Loans receivable | ||
Accrued Interest Receivable | ||
Investments in BOLI | ||
Liabilities | ||
Savings, NOW and money market accounts | ||
Time deposits | ||
Long-term debt | ||
Short term borrowings | ||
TRUPs | ||
Subordinated notes | ||
Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Investment securities - AFS | 119,976 | 68,164 |
Investment securities - HTM | 92,746 | 97,007 |
Equity securities carried at fair value through income | 4,428 | |
Non-marketable equity securities in other financial institutions | 209 | 121 |
FHLB stock | 3,821 | 7,276 |
Loans receivable | ||
Accrued Interest Receivable | 4,957 | 4,511 |
Investments in BOLI | 36,295 | 29,398 |
Liabilities | ||
Savings, NOW and money market accounts | 982,600 | 654,632 |
Time deposits | 446,683 | 453,644 |
Long-term debt | 20,568 | 57,421 |
Short term borrowings | 35,016 | 87,208 |
TRUPs | 10,924 | 9,400 |
Subordinated notes | 23,085 | 22,400 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Investment securities - AFS | ||
Investment securities - HTM | ||
Equity securities carried at fair value through income | ||
Non-marketable equity securities in other financial institutions | ||
FHLB stock | ||
Loans receivable | 1,298,465 | 1,097,592 |
Accrued Interest Receivable | ||
Investments in BOLI | ||
Liabilities | ||
Savings, NOW and money market accounts | ||
Time deposits | ||
Long-term debt | ||
Short term borrowings | ||
TRUPs | ||
Subordinated notes | ||
Carrying Amount [Member] | ||
Assets | ||
Investment securities - AFS | 119,976 | 68,164 |
Investment securities - HTM | 96,271 | 99,246 |
Equity securities carried at fair value through income | 4,428 | |
Non-marketable equity securities in other financial institutions | 209 | 121 |
FHLB stock | 3,821 | 7,276 |
Loans receivable | 1,337,129 | 1,140,615 |
Accrued Interest Receivable | 4,957 | 4,511 |
Investments in BOLI | 36,295 | 29,398 |
Liabilities | ||
Savings, NOW and money market accounts | 982,600 | 654,632 |
Time deposits | 447,029 | 451,605 |
Long-term debt | 20,436 | 55,498 |
Short term borrowings | 35,000 | 87,500 |
TRUPs | 12,000 | 12,000 |
Subordinated notes | $ 23,000 | $ 23,000 |
Condensed Financial Statement_3
Condensed Financial Statements - Parent Company Only (Schedule of Condensed Balance Sheet) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 13, 2015 | |
Assets | |||||
Other assets | $ 1,738 | $ 4,559 | |||
Total Assets | 1,689,227 | 1,405,961 | |||
Liabilities and Stockholders' Equity | |||||
Guaranteed preferred beneficial interest in junior subordinated debentures (TRUPs) | 12,000 | 12,000 | |||
Subordinated notes - 6.25% | 23,000 | 23,000 | |||
Total Liabilities | 1,534,745 | 1,296,004 | |||
Stockholders' Equity | |||||
Preferred stock, value | $ 20,000 | ||||
Common stock | 56 | 46 | |||
Additional paid in capital | 84,397 | 48,209 | |||
Retained earnings | 72,594 | 63,648 | |||
Accumulated other comprehensive income | (1,847) | (1,191) | $ (928) | $ (251) | |
Unearned ESOP shares | (718) | (755) | |||
Total stockholders' equity | 154,482 | 109,957 | $ 104,426 | $ 99,783 | |
Total Liabilities and Stockholders' Equity | 1,689,227 | 1,405,961 | |||
Parent Company [Member] | |||||
Assets | |||||
Cash - noninterest bearing | 4,246 | 2,812 | |||
Investment in wholly owned subsidiaries | 185,445 | 139,418 | |||
Other assets | 1,387 | 4,491 | |||
Total Assets | 191,078 | 146,721 | |||
Liabilities and Stockholders' Equity | |||||
Current liabilities | 1,224 | 1,392 | |||
Guaranteed preferred beneficial interest in junior subordinated debentures (TRUPs) | 12,372 | 12,372 | |||
Subordinated notes - 6.25% | 23,000 | 23,000 | |||
Total Liabilities | 36,596 | 36,764 | |||
Stockholders' Equity | |||||
Common stock | 56 | 46 | |||
Additional paid in capital | 84,397 | 48,209 | |||
Retained earnings | 72,594 | 63,648 | |||
Accumulated other comprehensive income | (1,847) | (1,191) | |||
Unearned ESOP shares | (718) | (755) | |||
Total stockholders' equity | 154,482 | 109,957 | |||
Total Liabilities and Stockholders' Equity | $ 191,078 | $ 146,721 | |||
Subordinated Debt [Member] | |||||
Stockholders' Equity | |||||
Subordinated Borrowing, Interest Rate | 6.25% | 6.25% | |||
Subordinated Debt [Member] | Parent Company [Member] | |||||
Stockholders' Equity | |||||
Subordinated Borrowing, Interest Rate | 6.25% | 6.25% |
Condensed Financial Statement_4
Condensed Financial Statements - Parent Company Only (Schedule of Condensed Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest expense | $ 4,217 | $ 3,724 | $ 3,343 | $ 3,002 | $ 2,800 | $ 2,672 | $ 2,462 | $ 2,248 | $ 2,111 | $ 2,079 | $ 2,033 | $ 1,919 | $ 14,286 | $ 10,182 | $ 8,142 |
Net interest income | 12,826 | 12,760 | 12,411 | 12,890 | 10,773 | 11,008 | 10,933 | 10,674 | 10,473 | 10,144 | 9,895 | 9,393 | 50,887 | 43,388 | 39,905 |
Miscellaneous expenses | (657) | (703) | (1,297) | ||||||||||||
Income (Loss) before income taxes and equity in undistributed net income of subsidiary | 5,188 | 5,298 | 3,162 | 1,753 | 3,997 | 4,499 | 4,079 | 3,790 | 3,378 | 2,977 | 2,816 | 2,576 | 15,401 | 16,365 | 11,747 |
Federal and state income tax benefit | (1,371) | (1,441) | (828) | (533) | (4,456) | (1,717) | (1,536) | (1,448) | (1,356) | (1,014) | (1,078) | (968) | (4,173) | (9,157) | (4,416) |
Net income | 11,228 | 7,208 | 7,331 | ||||||||||||
Net income available to common shareholders | $ 3,817 | $ 3,857 | $ 2,334 | $ 1,220 | $ (459) | $ 2,782 | $ 2,543 | $ 2,342 | $ 2,022 | $ 1,963 | $ 1,738 | $ 1,608 | |||
Parent Company [Member] | |||||||||||||||
Dividends from subsidiary | 6,000 | 7,500 | 5,500 | ||||||||||||
Interest income | 65 | 64 | 19 | ||||||||||||
Interest expense | 1,984 | 1,865 | 1,795 | ||||||||||||
Net interest income | 4,081 | 5,699 | 3,724 | ||||||||||||
Miscellaneous expenses | (2,818) | (2,968) | (2,110) | ||||||||||||
Income (Loss) before income taxes and equity in undistributed net income of subsidiary | 1,263 | 2,731 | 1,614 | ||||||||||||
Federal and state income tax benefit | 1,078 | 1,583 | 1,321 | ||||||||||||
Equity in undistributed net income of subsidiary | 8,887 | 2,894 | 4,396 | ||||||||||||
Net income | $ 11,228 | $ 7,208 | $ 7,331 |
Condensed Financial Statement_5
Condensed Financial Statements - Parent Company Only (Schedule of Condensed Cash Flow Statement) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities | |||
Net income | $ 11,228 | $ 7,208 | $ 7,331 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Stock based compensation | 474 | 515 | 489 |
(Increase) in other assets | 3,670 | (1,281) | 1,959 |
(Increase) decrease in deferred income tax benefit | (290) | 1,887 | (555) |
Net Cash Provided by Operating Activities | 19,400 | 10,102 | 12,915 |
Cash Flows from Investing Activities | |||
Net Cash Used in Investing Activities | 36,190 | 69,564 | 195,126 |
Cash Flows from Financing Activities | |||
Dividends paid | (2,163) | (1,804) | (1,814) |
Exercise of stock options | 155 | ||
Net change in unearned ESOP shares | 37 | (586) | 147 |
Repurchase of common stock | (70) | (865) | |
Net Cash Used in Financing Activities | 34,409 | 63,616 | 182,335 |
Increase in Cash | 17,619 | 4,154 | 124 |
Cash and Cash Equivalents - January 1 | 15,417 | 11,263 | 11,139 |
Cash and Cash Equivalents - December 31 | 33,036 | 15,417 | 11,263 |
Parent Company [Member] | |||
Cash Flows from Operating Activities | |||
Net income | 11,228 | 7,208 | 7,331 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Equity in undistributed earnings of subsidiary | (8,887) | (2,894) | (4,396) |
Stock based compensation | 474 | 515 | 489 |
(Increase) in other assets | 3,109 | (2,446) | (145) |
(Increase) decrease in deferred income tax benefit | (6) | (29) | 55 |
Increase (decrease) in current liabilities | (168) | 327 | (157) |
Net Cash Provided by Operating Activities | 5,750 | 2,681 | 3,177 |
Cash Flows from Investing Activities | |||
Cash paid to acquire County First Bank | (2,120) | ||
Net Cash Used in Investing Activities | (2,120) | ||
Cash Flows from Financing Activities | |||
Dividends paid | (2,163) | (1,804) | (1,814) |
Capital (to) from subsidiary | 180 | ||
Exercise of stock options | 155 | ||
Net change in unearned ESOP shares | 37 | (586) | 147 |
Repurchase of common stock | (70) | (865) | |
Net Cash Used in Financing Activities | (2,196) | (2,235) | (2,352) |
Increase in Cash | 1,434 | 446 | 825 |
Cash and Cash Equivalents - January 1 | 2,812 | 2,366 | 1,541 |
Cash and Cash Equivalents - December 31 | $ 4,246 | $ 2,812 | $ 2,366 |
Quarterly Financial Compariso_3
Quarterly Financial Comparison (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||
Interest and dividend income | $ 17,043 | $ 16,484 | $ 15,754 | $ 15,892 | $ 13,573 | $ 13,680 | $ 13,395 | $ 12,922 | $ 12,584 | $ 12,223 | $ 11,928 | $ 11,312 | $ 65,173 | $ 53,570 | $ 48,047 | ||||||||
Interest expense | 4,217 | 3,724 | 3,343 | 3,002 | 2,800 | 2,672 | 2,462 | 2,248 | 2,111 | 2,079 | 2,033 | 1,919 | 14,286 | 10,182 | 8,142 | ||||||||
Net interest income | 12,826 | 12,760 | 12,411 | 12,890 | 10,773 | 11,008 | 10,933 | 10,674 | 10,473 | 10,144 | 9,895 | 9,393 | 50,887 | 43,388 | 39,905 | ||||||||
Provision for loan losses | 465 | 40 | 400 | 500 | 30 | 224 | 376 | 380 | 670 | 698 | 564 | 427 | 1,405 | 1,010 | 2,359 | ||||||||
Net interest income after provision for loan losses | 12,361 | 12,720 | 12,011 | 12,390 | 10,743 | 10,784 | 10,557 | 10,294 | 9,803 | 9,446 | 9,331 | 8,966 | 49,482 | 42,378 | 37,546 | ||||||||
Noninterest income | 1,067 | 1,069 | 901 | 1,031 | 993 | 1,157 | 1,043 | 848 | 887 | 839 | 1,225 | 845 | 4,068 | 4,041 | 3,796 | ||||||||
Noninterest expense | 8,240 | 8,491 | 9,750 | 11,668 | 7,739 | 7,442 | 7,521 | 7,352 | 7,312 | 7,308 | 7,740 | 7,235 | 38,149 | 30,054 | 29,595 | ||||||||
Income before income taxes | 5,188 | 5,298 | 3,162 | 1,753 | 3,997 | 4,499 | 4,079 | 3,790 | 3,378 | 2,977 | 2,816 | 2,576 | 15,401 | 16,365 | 11,747 | ||||||||
Provision for income taxes | 1,371 | 1,441 | 828 | 533 | 4,456 | 1,717 | 1,536 | 1,448 | 1,356 | 1,014 | 1,078 | 968 | $ 4,173 | $ 9,157 | $ 4,416 | ||||||||
Net income available to common shareholders | $ 3,817 | $ 3,857 | $ 2,334 | $ 1,220 | $ (459) | $ 2,782 | $ 2,543 | $ 2,342 | $ 2,022 | $ 1,963 | $ 1,738 | $ 1,608 | |||||||||||
Earnings Per Common Share | |||||||||||||||||||||||
Basic earnings per common share | $ 0.69 | [1] | $ 0.70 | [1] | $ 0.42 | [1] | $ 0.22 | [1] | $ (0.10) | $ 0.60 | $ 0.55 | $ 0.51 | $ 0.44 | $ 0.43 | $ 0.38 | $ 0.35 | $ 2.02 | $ 1.56 | $ 1.59 | ||||
Diluted | $ 0.69 | [1] | $ 0.70 | [1] | $ 0.42 | [1] | $ 0.22 | [1] | $ (0.10) | [1] | $ 0.60 | [1] | $ 0.55 | [1] | $ 0.51 | [1] | $ 0.44 | $ 0.42 | $ 0.38 | $ 0.35 | $ 2.02 | $ 1.56 | $ 1.59 |
Parent Company [Member] | |||||||||||||||||||||||
Interest expense | $ 1,984 | $ 1,865 | $ 1,795 | ||||||||||||||||||||
Net interest income | 4,081 | 5,699 | 3,724 | ||||||||||||||||||||
Income before income taxes | 1,263 | 2,731 | 1,614 | ||||||||||||||||||||
Provision for income taxes | $ (1,078) | $ (1,583) | $ (1,321) | ||||||||||||||||||||
[1] | Earnings per share are based upon quarterly results and, when added, may not total the annual earnings per share amounts. |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Subsequent Event [Line Items] | |||
Common Stock Par Or Stated Value Per Share | $ 0.01 | $ 0.01 | |
County First Acquisition [Member] | |||
Subsequent Event [Line Items] | |||
Business Acquisition, Share Price | $ 2.20 | ||
Business Acquisition, Share Price, Cash Consideration | 1 | ||
Business Acquisition, Share Price, Contingent Cash Consideration | 1.20 | ||
Payments to Acquire Businesses, Gross | $ 2,122 | ||
Business Combination, Consideration Transferred | 37,742 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 227,687 | ||
Common Class A [Member] | |||
Subsequent Event [Line Items] | |||
Share Price | $ 38.78 |