Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 08, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | FIRST COMMUNITY CORP /SC/ | |
Entity Central Index Key | 932,781 | |
Document Type | 10-Q | |
Trading Symbol | fcco | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,629,638 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Ex Transition Period | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 14,231 | $ 14,803 |
Interest-bearing bank balances | 22,104 | 15,186 |
Federal funds sold and securities purchased under agreements to resell | 605 | 602 |
Investment securities held-to-maturity | 16,218 | 17,012 |
Investment securities available-for-sale | 251,620 | 264,824 |
Other investments, at cost | 2,125 | 2,559 |
Loans held for sale | 5,528 | 5,093 |
Loans | 696,515 | 646,805 |
Less, allowance for loan losses | 6,212 | 5,797 |
Net loans | 690,303 | 641,008 |
Property, furniture and equipment - net | 34,405 | 36,103 |
Bank owned life insurance | 25,579 | 25,413 |
Other real estate owned | 1,921 | 1,934 |
Intangible assets | 2,142 | 2,569 |
Goodwill | 14,637 | 14,589 |
Other assets | 9,724 | 9,036 |
Total assets | 1,091,142 | 1,050,731 |
Deposits: | ||
Non-interest bearing demand | 254,270 | 226,546 |
Interest bearing | 667,452 | 661,777 |
Total deposits | 921,722 | 888,323 |
Securities sold under agreements to repurchase | 33,226 | 19,270 |
Federal Home Loan Bank advances | 4,236 | 14,250 |
Junior subordinated debt | 14,964 | 14,964 |
Other liabilities | 8,808 | 8,261 |
Total liabilities | 982,956 | 945,068 |
SHAREHOLDERS' EQUITY | ||
Preferred stock, par value $1.00 per share, 10,000,000 shares authorized; none issued and outstanding | ||
Common stock, par value $1.00 per share; 10,000,000 shares authorized; issued and outstanding 7,629,638 at September 30, 2018 and 7,587,938 at December 31, 2017 | 7,630 | 7,588 |
Common stock warrants issued | 34 | 46 |
Nonvested restricted stock | (205) | (109) |
Additional paid in capital | 94,967 | 94,516 |
Retained earnings (deficit) | 10,336 | 4,066 |
Accumulated other comprehensive income (loss) | (4,576) | (444) |
Total shareholders' equity | 108,186 | 105,663 |
Total liabilities and shareholders' equity | $ 1,091,142 | $ 1,050,731 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Consolidated Balance Sheets Unaudited | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 7,629,638 | 7,587,918 |
Common stock, shares outstanding | 7,629,638 | 7,587,918 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest income: | ||||
Loans, including fees | $ 8,277 | $ 6,438 | $ 23,974 | $ 19,003 |
Taxable securities | 1,250 | 989 | 3,623 | 2,924 |
Non taxable securities | 333 | 453 | 1,232 | 1,395 |
Federal funds sold and securities purchased under resale agreements | 120 | 41 | 290 | 94 |
Other | 5 | 16 | ||
Total interest income | 9,985 | 7,921 | 29,135 | 23,416 |
Interest expense: | ||||
Deposits | 816 | 459 | 2,001 | 1,341 |
Federal funds sold and securities sold under agreement to repurchase | 96 | 24 | 197 | 45 |
Other borrowed money | 190 | 211 | 581 | 694 |
Total interest expense | 1,102 | 694 | 2,779 | 2,080 |
Net interest income | 8,883 | 7,227 | 26,356 | 21,336 |
Provision for loan losses | 21 | 166 | 252 | 360 |
Net interest income after provision for loan losses | 8,862 | 7,061 | 26,104 | 20,976 |
Non-interest income: | ||||
Deposit service charges | 434 | 379 | 1,320 | 1,047 |
Mortgage banking income | 1,159 | 1,032 | 3,126 | 2,950 |
Investment advisory fees and non-deposit commissions | 423 | 336 | 1,207 | 908 |
Gain (loss) on sale of securities | 124 | (10) | 350 | |
Gain on sale of other assets | (29) | 40 | 8 | 128 |
Loss on early extinguishment of debt | (165) | (446) | ||
Other | 855 | 676 | 2,733 | 2,108 |
Total non-interest income | 2,842 | 2,422 | 8,384 | 7,045 |
Non-interest expense: | ||||
Salaries and employee benefits | 5,079 | 4,122 | 14,537 | 12,469 |
Occupancy | 611 | 532 | 1,808 | 1,598 |
Equipment | 388 | 396 | 1,167 | 1,348 |
Marketing and public relations | 177 | 96 | 460 | 615 |
FDIC insurance assessments | 94 | 78 | 258 | 234 |
Other real estate expense | 37 | 19 | 86 | 75 |
Amortization of intangibles | 142 | 74 | 427 | 223 |
Merger expenses | 228 | 326 | ||
Other | 1,606 | 1,349 | 5,210 | 4,096 |
Total non-interest expense | 8,134 | 6,894 | 23,953 | 20,984 |
Net income before tax | 3,570 | 2,589 | 10,535 | 7,037 |
Income tax expense | 737 | 696 | 1,992 | 1,724 |
Net income | $ 2,833 | $ 1,893 | $ 8,543 | $ 5,313 |
Basic earnings per common share (in dollars per share) | $ 0.37 | $ 0.28 | $ 1.13 | $ 0.80 |
Diluted earnings per common share (in dollars per share) | $ 0.37 | $ 0.28 | $ 1.11 | $ 0.78 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Consolidated Statements Of Comprehensive Income | ||||
Net income | $ 2,833 | $ 1,893 | $ 8,543 | $ 5,313 |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) during the period on available-for-sale securities, net of tax benefit of $1,101 and tax expense of $732, and net of tax benefit of $280 and tax expense of $94, for 9 Months ended September 30, 2018 and September 30, 2017, 3 Months ended September 30, 2018 and September 30 2017, respectively | (1,054) | 181 | (4,140) | 1,421 |
Less: Reclassification adjustment for loss (gain) included in net income, net of tax benefit of $2 and tax expense of $119, net of taxes of $0 and $42 for 9 Months ended September 30, 2018 and September 30, 2017, 3 Months ended September 30, 2018 and September 30 2017, respectively | (82) | 8 | (231) | |
Other comprehensive income (loss) | (1,054) | 99 | (4,132) | 1,190 |
Comprehensive income | $ 1,779 | $ 1,992 | $ 4,411 | $ 6,503 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Consolidated Statements Of Comprehensive Income Unaudited | ||||
Unrealized gain (loss) during the period on available-for-sale securities, taxes | $ 280 | $ 94 | $ 1,101 | $ 732 |
Reclassification adjustment for (gain) loss included in net income, taxes | $ 0 | $ 42 | $ 2 | $ 119 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Common Warrant [Member] | Additional Paid-In Capital [Member] | Nonvested Restricted Stocks [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning Balance at Dec. 31, 2016 | $ 6,708 | $ 46 | $ 75,991 | $ (220) | $ 573 | $ (1,237) | $ 81,861 |
Beginning Balance, in shares at Dec. 31, 2016 | 6,708,000 | ||||||
Net income | 5,313 | 5,313 | |||||
Other comprehensive income net of tax | 1,190 | 1,190 | |||||
Issuance of restricted stock | $ 5 | 100 | (105) | ||||
Issuance of restricted stock, in shares | 5,000 | ||||||
Amortization of compensation on restricted stock | 158 | 158 | |||||
Shares forfeited | $ (2) | (27) | 9 | (20) | |||
Shares forfeited, Shares | (2,000) | ||||||
Shares retired | $ (19) | (369) | (388) | ||||
Shares retired, Shares | (19,000) | ||||||
Exercise of deferred compensation | |||||||
Dividends: Common | (1,798) | (1,798) | |||||
Dividend reinvestment plan | $ 14 | 265 | 279 | ||||
Dividend reinvestment plan, in shares | 14,000 | ||||||
Ending Balance at Sep. 30, 2017 | $ 6,706 | 46 | 75,960 | (158) | 4,088 | (47) | 86,595 |
Ending Balance, in shares at Sep. 30, 2017 | 6,706,000 | ||||||
Beginning Balance at Dec. 31, 2017 | $ 7,588 | 46 | 94,516 | (109) | 4,066 | (444) | 105,663 |
Beginning Balance, in shares at Dec. 31, 2017 | 7,588,000 | ||||||
Net income | 8,543 | 8,543 | |||||
Other comprehensive income net of tax | (4,132) | (4,132) | |||||
Issuance of restricted stock | $ 11 | 233 | (244) | ||||
Issuance of restricted stock, in shares | 11,000 | ||||||
Amortization of compensation on restricted stock | 148 | 148 | |||||
Exercise of stock warrants | $ 20 | (12) | (8) | ||||
Exercise of stock warrants, in shares | 20,000 | ||||||
Shares retired | $ (2) | (55) | (57) | ||||
Shares retired, Shares | (2,000) | ||||||
Exercise of deferred compensation | $ 1 | 18 | 19 | ||||
Exercise of deferred compensation, in shares | 1,000 | ||||||
Dividends: Common | (2,273) | (2,273) | |||||
Dividend reinvestment plan | $ 12 | 263 | 275 | ||||
Dividend reinvestment plan, in shares | 12,000 | ||||||
Ending Balance at Sep. 30, 2018 | $ 7,630 | $ 34 | $ 94,967 | $ (205) | $ 10,336 | $ (4,576) | $ 108,186 |
Ending Balance, in shares at Sep. 30, 2018 | 7,630,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||||
Net income | $ 2,833 | $ 1,893 | $ 8,543 | $ 5,313 | |
Adjustments to reconcile net income to net cash provided in operating activities: | |||||
Depreciation | 1,130 | 1,075 | |||
Premium amortization | 1,873 | 2,449 | |||
Provision for loan losses | 21 | 166 | 252 | 360 | $ 530 |
Write-down of other real estate owned | 17 | ||||
Gain on sale of other real estate owned | (8) | (128) | |||
Origination of loans held-for-sale | (89,125) | (80,340) | |||
Sale of loans held-for-sale | 88,690 | 80,029 | |||
Amortization of intangibles | 142 | 74 | 427 | 223 | |
Accretion on acquired loans | (288) | (138) | |||
Writedown of land held for sale | 42 | 90 | |||
Loss (gain) on sale of securities | (124) | 10 | (350) | ||
Loss on extinguishment of debt | 165 | 446 | |||
Gain on sale of fixed assets | (123) | ||||
Decrease in other assets | 518 | 4,042 | |||
Increase (decrease) in other liabilities | 547 | 78 | |||
Net cash provided in operating activities | 12,488 | 13,166 | |||
Cash flows from investing activities: | |||||
Purchase of investment securities available-for-sale | (47,668) | (15,350) | |||
Maturity/call of investment securities available-for-sale | 33,703 | 25,761 | |||
Proceeds from sale of securities available-for-sale | 0 | 2,300 | 19,946 | 12,867 | |
Proceeds from sale of securities held-to-maturity | 655 | ||||
Proceeds from sale of other investments | 434 | 357 | |||
Increase in loans | (49,603) | (21,787) | |||
Proceeds from sale of other real estate owned | 367 | 530 | |||
Proceeds from sale of fixed assets | 1,143 | ||||
Purchase of property and equipment | (494) | (2,675) | |||
Net cash used in investing activities | (41,517) | (297) | |||
Cash flows from financing activities: | |||||
Increase in deposit accounts | 33,472 | 3,473 | |||
Increase (decrease) in securities sold under agreements to repurchase | 13,956 | (2,058) | |||
Advances from the Federal Home Loan Bank | 4,000 | 26,000 | |||
Repayment of advances from Federal Home Loan Bank | (14,014) | (33,268) | |||
Deferred compensation shares | 19 | ||||
Shares forfeited | (20) | ||||
Shares retired | (57) | (388) | |||
Dividends paid: Common Stock | (2,273) | (1,798) | |||
Dividend reinvestment plan | 275 | 279 | |||
Net cash provided from (used in) financing activities | 35,378 | (7,780) | |||
Net increase in cash and cash equivalents | 6,349 | 5,089 | |||
Cash and cash equivalents at beginning of period | 30,591 | 21,999 | 21,999 | ||
Cash and cash equivalents at end of period | $ 36,940 | $ 27,088 | 36,940 | 27,088 | $ 30,591 |
Cash paid during the period for: | |||||
Interest | 2,627 | 2,162 | |||
Income taxes | 1,875 | 1,095 | |||
Non-cash investing and financing activities: | |||||
Unrealized gain (loss) on securities | (4,132) | 1,190 | |||
Transfer of loans to foreclosed property | $ 346 | $ 26 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | Note 1 - Basis of Presentation In the opinion of management, the accompanying unaudited consolidated balance sheets, and the consolidated statements of income, comprehensive income, changes in shareholders’ equity, and the cash flows of First Community Corporation (the “Company”), present fairly in all material respects the Company’s financial position at September 30, 2018 and December 31, 2017, and the Company’s results of operations and cash flows for the three and nine months ended September 30, 2018 and 2017. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. In the opinion of management, all adjustments necessary to fairly present the consolidated financial position and consolidated results of operations have been made. All such adjustments are of a normal, recurring nature. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements and notes thereto are presented in accordance with the instructions for Form 10-Q. The information included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 should be referred to in connection with these unaudited interim financial statements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | Note 2 – Earnings Per Common Share The following reconciles the numerator and denominator of the basic and diluted earnings per common share computation: (In thousands except average market price) Nine months Three months Ended September 30, Ended September 30, 2018 2017 2018 2017 Numerator (Net income) $ 8,543 $ 5,313 $ 2,833 $ 1,893 Denominator Weighted average common shares outstanding for: Basic earnings per share 7,581 6,666 7,592 6,666 Dilutive securities: Deferred compensation 65 54 61 54 Warrants/Restricted stock – Treasury stock method 73 88 71 88 Diluted earnings per share 7,719 6,808 7,724 6,808 The average market price used in calculating assumed number of shares $ 25.33 $ 20.59 $ 23.49 $ 20.66 There were no options outstanding as of September 30, 2018 and 2017. In the fourth quarter of 2011, we issued $2.5 million in 8.75% subordinated notes maturing December 16, 2019. On November 15, 2012, the subordinated notes were redeemed in full at par. Warrants for 107,500 shares of common stock at $5.90 per share were issued in connection with the issuance of the subordinated debt. There were 71,810 warrants outstanding at September 30, 2018. These warrants expire December 16, 2019 and are included in dilutive securities in the table above. The Company has issued a total of 26,626 unvested restricted shares under the terms of its compensation plans and employment agreements. The employee shares cliff vest over a three year period; the non-employee director shares vest one year after issuance. The unrecognized compensation cost at September 30, 2018 for non-vested shares amounts to $205 thousand. In February 2017 and 2018, the Company issued 353 and 3,201 stock units, respectively, to employees that cliff vest over three years. Each unit is convertible into one share of common stock at the time the unit vests. The related compensation cost is accrued over the vesting period. In 2006, the Company established a Non-Employee Director Deferred Compensation Plan, whereby a director may elect to defer all or any part of annual retainer and monthly meeting fees payable with respect to service on the board of directors or a committee of the board. Units of common stock are credited to the director’s account at the time compensation is earned and are included in dilutive securities in the table above. At September 30, 2018 and December 31, 2017, there were 113,984 and 110,320 units in the plan, respectively. The accrued liability at September 30, 2018 and December 31, 2017 amounted to $1.2 million and $1.1 million, respectively, and is included in “Other liabilities” on the balance sheet. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | Note 3—Investment Securities The amortized cost and estimated fair values of investment securities are summarized below: AVAILABLE-FOR-SALE: Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value September 30, 2018 US Treasury securities $ 11,823 $ — $ 68 $ 11,755 Government Sponsored Enterprises 1,094 — 5 1,089 Mortgage-backed securities 140,335 44 4,073 136,306 Small Business Administration pools 52,670 147 891 51,926 State and local government 51,473 293 1,241 50,525 Other securities 19 — — 19 $ 257,414 $ 484 $ 6,278 $ 251,620 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value December 31, 2017 US Treasury securities $ 1,529 $ — $ 24 $ 1,505 Government Sponsored Enterprises 1,085 24 — 1,109 Mortgage-backed securities 145,185 285 1,702 143,768 Small Business Administration pools 61,544 374 330 61,588 State and local government 55,111 1,309 416 56,004 Other securities 932 — 82 850 $ 265,386 $ 1,992 $ 2,554 $ 264,824 HELD-TO-MATURITY: Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value September 30, 2018 State and local government $ 16,218 $ 13 $ 178 $ 16,053 $ 16,218 $ 13 $ 178 $ 16,053 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value December 31, 2017 State and local government $ 17,012 $ 223 $ 15 $ 17,220 $ 17,012 $ 223 $ 15 $ 17,220 During the nine months ended September 30, 2018 and 2017, the Company received proceeds of $19.9 million and $12.9 million, respectively, from the sale of investment securities available-for-sale. For the nine months ended September 30, 2018, gross realized gains from the sale of investment securities available-for-sale amounted to $240.7 thousand and gross realized losses amounted to $246.5 thousand. For the nine months ended September 30, 2017, gross realized gains from the sale of investment securities available-for-sale amounted to $371 thousand and gross realized losses amounted to $21 thousand. During the nine months ended September 30, 2018, the Company received proceeds of $655 thousand for the sale of an investment security held-to-maturity. For the nine months ended September 30, 2018, the realized loss on the sale of the investment security held-to-maturity amounted to $4.0 thousand. During the nine months ended September 30, 2017 there were no sales of investment securities held-to-maturity. During the three months ended September 30, 2018, there were no sales of investment securities. During the three months ended September 30, 2017, the Company received proceeds of $2.3 million from the sale of investment securities available-for-sale. For the three months ended September 30, 2017, gross realized gains totaled $124 thousand and there were no gross realized losses. During the three months ended September 30, 2017, there were no sales of investment securities held-to maturity. At September 30, 2018, other securities available-for-sale included the following at fair value: a mutual fund at $9.4 thousand and foreign debt of $9.9 thousand. As required by Accounting Standards Update (ASU) 2016-01-Financial Instruments-Overall (Subtopic 825-10), the Company has measured its equity investments at fair value with changes in the fair value recognized through net income. For the three months and nine months ended September 30, 2018, a $1.0 thousand gain and a $2.0 thousand gain were recognized on a mutual fund, respectively. At December 31, 2017, corporate and other securities available-for-sale included the following at fair value: mutual funds at $790.0 thousand and foreign debt of $60.0 thousand. Other investments, at cost include Federal Home Loan Bank (“FHLB”) stock in the amount of $1.1 million and $1.6 million and corporate stock in the amount of $1.0 and $1.0 million at September 30, 2018 and December 31, 2017, respectively. The following tables show gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position, at September 30, 2018 and December 31, 2017. (Dollars in thousands) Less than 12 months 12 months or more Total September 30, 2018 Unrealized Unrealized Unrealized Available-for-sale securities: Fair Value Loss Fair Value Loss Fair Value Loss US Treasury securities $ 10,279 $ 22 $ 1,475 $ 46 $ 11,754 $ 68 Government Sponsored Enterprise 1,088 5 — — 1,088 5 Government Sponsored Enterprise mortgage-backed securities 68,482 1,536 53,336 2,537 121,818 4,073 Small Business Administration pools 22,118 386 15,594 505 37,712 891 State and local government 21,821 398 12,765 843 34,586 1,241 $ 123,788 $ 2,347 $ 83,170 $ 3,931 $ 206,958 $ 6,278 (Dollars in thousands) Less than 12 months 12 months or more Total September 30, 2018 Unrealized Unrealized Unrealized Held-to-maturity securities: Fair Value Loss Fair Value Loss Fair Value Loss State and local government $ 13,622 $ 178 $ — $ — $ 13,622 $ 178 (Dollars in thousands) Less than 12 months 12 months or more Total December 31, 2017 Unrealized Unrealized Unrealized Available-for-sale securities: Fair Value Loss Fair Value Loss Fair Value Loss US Treasury securities $ — $ — $ 1,505 $ 24 $ 1,505 $ 24 Government Sponsored Enterprise mortgage-backed securities 50,377 420 46,071 1,282 96,448 1,702 Small Business Administration pools 17,607 164 16,311 166 33,918 330 State and local government 3,639 15 12,990 401 16,629 416 Corporate and other securities — — 790 82 790 82 $ 71,623 $ 599 $ 77,667 $ 1,955 $ 149,290 $ 2,554 (Dollars in thousands) Less than 12 months 12 months or more Total December 31, 2017 Unrealized Unrealized Unrealized Held-to-maturity securities: Fair Value Loss Fair Value Loss Fair Value Loss State and local government $ 2,899 $ 15 $ — $ — $ 2,899 $ 15 Government Sponsored Enterprise, Mortgage-Backed Securities: Non-agency Mortgage Backed Securities: State and Local Governments and Other: The following sets forth the amortized cost and fair value of investment securities at September 30, 2018 by contractual maturity. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay the obligations with or without prepayment penalties. MBSs are based on average life at estimated prepayment speeds. September 30, 2018 Available-for-sale Held-to-maturity Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Due in one year or less $ 17,686 $ 17,670 $ — $ — Due after one year through five years 150,575 147,607 9,187 9,129 Due after five years through ten years 80,047 77,462 7,031 6,924 Due after ten years 9,106 8,881 — — $ 257,414 $ 251,620 $ 16,218 $ 16,053 |
LOANS
LOANS | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
LOANS | Note 4—Loans Loans summarized by category as of September 30, 2018, December 31, 2017 and September 30, 2017 are as follows: September 30, December 31, September 30, (Dollars in thousands) 2018 2017 2017 Commercial, financial and agricultural $ 50,940 $ 51,040 $ 44,917 Real estate: Construction 56,568 45,401 42,693 Mortgage-residential 50,914 46,901 44,567 Mortgage-commercial 498,650 460,276 398,777 Consumer: Home equity 29,933 32,451 29,984 Other 9,510 10,736 7,550 Total $ 696,515 $ 646,805 $ 568,488 The detailed activity in the allowance for loan losses and the recorded investment in loans receivable as of and for the nine months ended September 30, 2018 and September 30, 2017 and for the year ended December 31, 2017 is as follows: (Dollars in thousands) Real estate Real estate Real estate Mortgage Mortgage Consumer Consumer September 30, 2018 Commercial Construction Residential Commercial Home equity Other Unallocated Total Allowance for loan losses: Beginning balance December 31, 2017 $ 221 $ 101 $ 461 $ 3,077 $ 308 $ 35 $ 1,594 $ 5,797 Charge-offs — — (1 ) — — (109 ) — (110 ) Recoveries 14 — 3 219 6 31 — 273 Provisions (46 ) 4 481 (388 ) 732 108 (639 ) 252 Ending balance September 30, 2018 $ 189 $ 105 $ 944 $ 2,908 $ 1,046 $ 65 $ 955 $ 6,212 Ending balances: Individually evaluated for impairment $ — $ — $ 1 $ 3 $ — $ — $ — $ 4 Collectively evaluated for impairment 189 105 943 2,905 1,046 65 955 6,208 September 30, 2018 Loans receivable: Ending balance-total $ 50,940 $ 56,568 $ 50,914 $ 498,650 $ 29,933 $ 9,510 $ — $ 696,515 Ending balances: Individually evaluated for impairment — — 237 4,466 31 — — 4,734 Collectively evaluated for impairment $ 50,940 $ 56,568 $ 50,677 $ 494,184 $ 29,902 $ 9,510 $ — $ 691,781 (Dollars in thousands) Real estate Real estate Consumer September 30, 2017 Real estate Mortgage Mortgage Home Consumer Commercial construction Residential Commercial Equity Other Unallocated Total Allowance for loan losses: Beginning balance December 31, 2016 $ 145 $ 104 $ 438 $ 2,793 $ 153 $ 127 $ 1,454 $ 5,214 Charge-offs (5) — — (30 ) — (85 ) — (120 ) Recoveries 3 — 4 158 24 13 — 202 Provisions 41 (10 ) (115 ) (5 ) 81 (38 ) 406 360 Ending balance September 30, 2017 $ 184 $ 94 $ 327 $ 2,916 $ 258 $ 17 $ 1,860 $ 5,656 Ending balances: Individually evaluated for impairment $ — $ — $ 2 $ 29 $ — $ — $ — $ 31 Collectively evaluated for impairment 184 94 325 2,887 258 17 1,860 5,625 September 30, 2017 Loans receivable: Ending balance-total $ 44,917 $ 42,693 $ 44,567 $ 398,777 $ 29,984 $ 7,550 $ — $ 568,488 Ending balances: Individually evaluated for impairment — — 422 4,173 34 — — 4,629 Collectively evaluated for impairment $ 44,917 $ 42,693 $ 44,145 $ 394,604 $ 29,950 $ 7,550 $ — $ 563,859 (Dollars in thousands) Real estate Real estate Real estate Mortgage Mortgage Consumer Consumer December 31, 2017 Commercial Construction Residential Commercial Home equity Other Unallocated Total Allowance for loan losses: Beginning balance December 31, 2016 $ 145 $ 104 $ 438 $ 2,793 $ 153 $ 127 $ 1,454 $ 5,214 Charge-offs (5 ) — — (30 ) (7 ) (131 ) — (173 ) Recoveries 5 — 5 172 24 20 — 226 Provisions 76 (3 ) 18 142 138 19 140 530 Ending balance December 31, 2017 $ 221 $ 101 $ 461 $ 3,077 $ 308 $ 35 $ 1,594 $ 5,797 Ending balances: Individually evaluated for impairment $ — $ — $ 2 $ 25 $ — $ — $ — $ 27 Collectively evaluated for impairment 221 101 459 3,052 308 35 1,594 5,770 December 31, 2017 Loans receivable: Ending balance-total $ 51,040 $ 45,401 $ 46,901 $ 460,276 $ 32,451 $ 10,736 $ — $ 646,805 Ending balances: Individually evaluated for impairment — — 413 4,742 — — — 5,155 Collectively evaluated for impairment $ 51,040 $ 45,401 $ 46,488 $ 455,534 $ 32,451 $ 10,736 $ — $ 641,650 The detailed activity in the allowance for loan losses as of and for the three months ended September 30, 2018 and the three months ended September 30, 2017 is as follows: (Dollars in thousands) Real estate Real estate Consumer Real estate Mortgage Mortgage Home Consumer Commercial construction Residential Commercial Equity Other Unallocated Total Allowance for loan losses: Beginning balance June 30, 2018 $ 272 $ 112 $ 672 $ 2,618 $ 1,029 $ 113 $ 1,271 $ 6,087 Charge-offs — — — — — (24 ) — (24 ) Recoveries 11 — 1 105 1 10 — 128 Provisions (94) (7) 271 185 16 (34 ) (316 ) 21 Ending balance September 30, 2018 $ 189 $ 105 $ 944 $ 2,908 $ 1,046 $ 65 $ 955 $ 6,212 (Dollars in thousands) Real estate Real estate Consumer Real estate Mortgage Mortgage Home Consumer Commercial construction Residential Commercial Equity Other Unallocated Total Allowance for loan losses: Beginning balance June 30, 2017 $ 169 $ 76 $ 353 $ 2,845 $ 196 $ 24 $ 1,827 $ 5,490 Charge-offs (5) — — (6) — (41 ) — (52 ) Recoveries — — 2 45 — 5 — 52 Provisions 20 18 (28 ) 32 62 29 33 166 Ending balance September 30, 2017 $ 184 $ 94 $ 327 $ 2,916 $ 258 $ 17 $ 1,860 $ 5,656 Related party loans and lines of credit are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and generally do not involve more than the normal risk of collectability. The following table presents related party loan transactions for the nine months ended September 30, 2018 and 2017: (Dollars in thousands) 2018 2017 Beginning Balance December 31, $ 5,938 $ 6,103 New Loans 2,406 339 Less loan repayments 1,999 925 Ending Balance September 30, $ 6,345 $ 5,517 The following table presents at September 30, 2018 and December 31, 2017 loans individually evaluated and considered impaired under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 310 “Accounting by Creditors for Impairment of a Loan.” Impairment includes performing troubled debt restructurings (“TDRs”). (Dollars in thousands) September 30, December 31, 2018 2017 Total loans considered impaired $ 4,734 $ 5,155 Loans considered impaired for which there is a related allowance for loan loss: Outstanding loan balance $ 1,143 $ 1,669 Related allowance $ 4 $ 27 Loans considered impaired and previously written down to fair value $ 3,591 $ 3,485 Average impaired loans $ 5,160 $ 5,513 Amount of interest earned during period of impairment $ 297 $ 132 The following tables are by loan category and present at September 30, 2018, September 30, 2017 and December 31, 2017 loans individually evaluated and considered impaired under FASB ASC 310 “Accounting by Creditors for Impairment of a Loan.” Impairment includes performing TDRs. (Dollars in thousands) Nine months ended Three months ended Unpaid Average Interest Average Interest September 30, 2018 Recorded Principal Related Recorded income Recorded Income Investment Balance Allowance Investment Recognized Investment Recognized With no allowance recorded: Commercial, financial, agricultural $ — $ — $ — $ — $ — $ — $ — Real estate: Construction — — — — — — — Mortgage-residential 198 266 — 202 16 197 2 Mortgage-commercial 3,363 6,158 — 3,753 219 3,627 75 Consumer: Home equity 31 32 — 35 1 31 — Other — — — — — — — With an allowance recorded: Commercial, financial, agricultural — — — — — — — Real estate: Construction — — — — — — — Mortgage-residential 39 39 1 41 2 39 1 Mortgage-commercial 1,103 1,103 3 1,129 59 1,103 19 Consumer: Home equity — — — — — — — Other — — — — — — — Total: Commercial, financial, agricultural $ — $ — $ — $ — $ — $ — $ — Real estate: Construction — — — — — — — Mortgage-residential 237 305 1 243 18 236 3 Mortgage-commercial 4,466 7,261 3 4,882 278 4,730 94 Consumer: Home equity 31 32 — 35 1 31 — Other — — — — — — — $ 4,734 $ 7,598 $ 4 $ 5,160 $ 297 $ 4,997 $ 97 (Dollars in thousands) Nine months ended Three months ended September 30, 2017 Unpaid Average Interest Average Interest Recorded Principal Related Recorded income Recorded income Investment Balance Allowance Investment Recognized Investment Recognized With no allowance recorded: Commercial, financial, agricultural $ — $ — $ — $ — $ — $ — $ — Real estate: Construction — — — — — — — Mortgage-residential 379 443 — 384 11 378 11 Mortgage-commercial 2,501 5,051 — 2,536 117 2,488 118 Consumer: Home equity 34 34 — 34 — 56 — Other — — — — — — — With an allowance recorded: Commercial, financial, agricultural — — — — — — — Real estate: Construction — — — — — — — Mortgage-residential 43 43 2 43 2 43 1 Mortgage-commercial 1,672 2,293 29 1,678 111 1,671 31 Consumer: Home equity — — — — — — — Other — — — — — — — Total: Commercial, financial, agricultural $ — $ — $ — $ — $ — $ — $ — Real estate: Construction — — — — — — — Mortgage-residential 422 486 2 427 13 421 12 Mortgage-commercial 4,173 7,344 29 4,214 228 4,159 149 Consumer: Home equity 34 34 — 34 — 56 — Other — — — — — — — $ 4,629 $ 7,864 $ 31 $ 4,675 $ 241 $ 4,636 $ 161 (Dollars in thousands) December 31, 2017 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no allowance recorded: Commercial $ — $ — $ — $ — $ — Real estate: Construction — — — — — Mortgage-residential 371 437 — 399 — Mortgage-commercial 3,087 5,966 — 3,420 13 Consumer: Home Equity — — — — — Other — — — — — With an allowance recorded: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential 42 42 2 43 2 Mortgage-commercial 1,655 2,261 25 1,652 117 Consumer: Home Equity — — — — — Other — — — — — Total: Commercial $ — $ — $ — $ — $ — Real estate: Construction — — — — — Mortgage-residential 413 479 2 442 2 Mortgage-commercial 4,742 8,227 25 5,072 130 Consumer: Home Equity — — — — — Other — — — — — $ 5,155 $ 8,706 $ 27 $ 5,514 $ 132 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a monthly basis. The Company uses the following definitions for risk ratings: Special Mention Substandard Doubtful Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered as pass rated loans. As of September 30, 2018 and December 31, 2017, and based on the most recent analysis performed, the risk category of loans by class of loans is shown in the table below. As of September 30, 2018 and December 31, 2017, no loans were classified as doubtful. (Dollars in thousands) September 30, 2018 Special Pass Mention Substandard Doubtful Total Commercial, financial & agricultural $ 50,722 $ 49 $ 169 $ — $ 50,940 Real estate: Construction 56,568 — — — 56,568 Mortgage – residential 49,359 646 909 — 50,914 Mortgage – commercial 489,712 4,556 4,382 — 498,650 Consumer: Home Equity 28,120 1,465 348 — 29,933 Other 9,507 — 3 — 9,510 Total $ 683,988 $ 6,716 $ 5,811 $ — $ 696,515 (Dollars in thousands) December 31, 2017 Special Pass Mention Substandard Doubtful Total Commercial, financial & agricultural $ 50,680 $ 179 $ 181 $ — $ 51,040 Real estate: Construction 45,401 — — — 45,401 Mortgage – residential 45,343 720 838 — 46,901 Mortgage – commercial 446,531 7,698 6,047 — 460,276 Consumer: Home Equity 30,618 1,524 309 — 32,451 Other 10,731 — 5 — 10,736 Total $ 629,304 $ 10,121 $ 7,380 $ — $ 646,805 At September 30, 2018 and December 31, 2017, non-accrual loans totaled $2.9 million and $3.3 million, respectively. TDRs that are still accruing and included in impaired loans at September 30, 2018 and at December 31, 2017 amounted to $1.8 million and $1.8 million, respectively. TDRs in non-accrual status at September 30, 2018 and December 31, 2017 amounted to $1.2 million and $1.2 million, respectively. Loans greater than 90 days delinquent and still accruing interest were $28.7 thousand at September 30, 2018 and $32.0 thousand at December 31, 2017. Acquired credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality, found in FASB ASC Topic 310-30, ( Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality), A summary of changes in the accretable yield for PCI loans for the three and nine months ended September 30, 2018 and September 30, 2017 follows: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Accretable yield, beginning of period $ (2 ) $ 22 Accretion (8 ) (32 ) Reclassification of nonaccretable difference due to improvement in expected cash flows — — Accretable yield, end of period $ (10 ) $ (10 ) Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Accretable yield, beginning of period $ 50 $ 34 Accretion (29 ) (57 ) Reclassification of nonaccretable difference due to improvement in expected cash flows — 44 Accretable yield, end of period $ 21 $ 21 At September, 2018 and December 31, 2017 the recorded investment in purchased impaired loans was $486 thousand and $733 thousand, respectively. The unpaid principal balance was $755 thousand and $1.0 million at September 30, 2018 and December 31, 2017, respectively. At September 30, 2018 and December 31, 2017, these loans were all secured by commercial real estate. The following tables are by loan category and present loans past due and on non-accrual status as of September 30, 2018 and December 31, 2017: (Dollars in thousands) Greater than 30-59 Days 60-89 Days 90 Days and Total September 30, 2018 Past Due Past Due Accruing Nonaccrual Past Due Current Total Loans Commercial $ 5 $ — $ — $ — $ 5 $ 50,935 $ 50,940 Real estate: Construction 24 — — — 24 56,544 56,568 Mortgage-residential 42 121 — 197 360 50,554 50,914 Mortgage-commercial 901 1,339 29 2,676 4,945 493,705 498,650 Consumer: Home equity 177 — — 31 208 29,725 29,933 Other 1 2 — 3 9,507 9,510 $ 1,150 $ 1,462 $ 29 $ 2,904 $ 5,545 $ 690,970 $ 696,515 (Dollars in thousands) Greater than 30-59 Days 60-89 Days 90 Days and Total December 31, 2017 Past Due Past Due Accruing Nonaccrual Past Due Current Total Loans Commercial $ 26 $ — $ 32 $ — $ 58 $ 50,982 $ 51,040 Real estate: Construction — — — — — 45,401 45,401 Mortgage-residential 109 38 — 371 518 46,383 46,901 Mortgage-commercial 290 828 — 2,971 4,089 456,187 460,276 Consumer: Home equity 805 36 — — 841 31,610 32,451 Other 1 5 — — 6 10,730 10,736 $ 1,231 $ 907 $ 32 $ 3,342 $ 5,512 $ 641,293 $ 646,805 The Company identifies TDRs as impaired under the guidance in ASC 310-10-35. There were no loans determined to be TDRs that were restructured during the three month and nine month periods ended September 30, 2018 and September 30, 2017. During the three and nine month periods ended September 30, 2018 and September 30, 2017, there were no loans determined to be TDRs in the previous twelve months that had payment defaults. Defaulted loans are those loans that are greater than 89 days past due. In the determination of the allowance for loan losses, all TDRs are reviewed to ensure that one of the three proper valuation methods (fair market value of the collateral, present value of cash flows, or observable market price) is adhered to. All non-accrual loans are written down to their corresponding collateral value. All troubled TDR accruing loans that have a loan balance that exceeds the present value of cash flows will have a specific allocation. All nonaccrual loans are considered impaired. Under ASC 310-10, a loan is impaired when it is probable that the Company will be unable to collect all amounts due including both principal and interest according to the contractual terms of the loan agreement. |
RECENTLY ISSUED ACCOUNTING PRON
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Note 5 - Recently Issued Accounting Pronouncements The following is a summary of recent authoritative pronouncements: In May 2014, the FASB issued guidance (ASU 2014-09) to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance is effective for the Company as of January 1, 2018. The Company evaluated the overall impact on affected revenue streams and any related contracts, including asset management fees, gains and losses on the sale of real estate, deposit related fees and interchange fees. Based on this evaluation, the Company determined that ASU 2014-09 did not materially change the method in which revenue from impacted revenue streams was previously being recognized. The Company applied the guidance using a modified retrospective approach. This approach requires the application of the new guidance to uncompleted contracts at the date of adoption. Periods prior to the date of adoption were not retrospectively revised as the impact on uncompleted contracts at the date of adoption was not material. In January 2016, the FASB amended the Financial Instruments topic of the Accounting Standards Codification (ASU 2016-01) to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments were effective for the Company on January 1, 2018. The guidance affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure of financial instruments. The amendments related to equity securities without readily determinable fair values were applied prospectively to equity investments that exist as of the date of adoption of the amendments. ASU 2016-01 requires the use of exit price rather than entrance price in determining the fair value of loans not measured at fair value on a non-recurring basis in the consolidated balance sheets. See Note 6 - Fair Value of Financial Instruments for information regarding the change in the valuation of these loans. The adoption of ASU 2016-01 did not have a material impact on the Company’s financial statements. In February 2016, the FASB amended the Leases topic of the ASC to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company does not anticipate a material impact on its financial statements. In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019. Early adoption is permitted for all organizations for periods beginning after December 15, 2018. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In August 2016, the FASB amended the Statement of Cash Flows topic of the ASC to clarify how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are effective for the Company for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. These amendments had no material effect on its financial statements. In January 2017, the FASB issued guidance to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendment to the Business Combinations Topic is intended to address concerns that the existing definition of a business has been applied too broadly and has resulted in many transactions being recorded as business acquisitions that in substance are more akin to asset acquisitions. The guidance was effective for the Company for reporting periods beginning after December 15, 2017. These amendments had no material effect on its financial statements. In January 2017, the FASB amended the Goodwill and Other Topic of the ASC to simplify the accounting for goodwill impairment for public business entities and other entities that have goodwill reported in their financial statements and have not elected the private company alternative for the subsequent measurement of goodwill. The amendment removes Step 2 of the goodwill impairment test. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The effective date and transition requirements for the technical corrections will be effective for the Company for reporting periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In March 2017, the FASB amended the requirements in the Receivables—Nonrefundable Fees and Other Costs Topic of the ASC related to the amortization period for certain purchased callable debt securities held at a premium. The amendments shorten the amortization period for the premium to the earliest call date. The amendments will be effective for the Company for interim and annual periods beginning after December 15, 2018. The Company does not expect these amendments to have a material effect on its financial statements. In September 2017, the FASB updated the Revenue from Contracts with Customers and the Leases Topics of the ASC. The amendments incorporate into the ASC recent SEC guidance about certain public business entities (PBEs) electing to use the non-PBE effective dates solely to adopt the FASB’s new standards on revenue and leases. The amendments were effective upon issuance and did not have a material effect on the Company’s financial statements. In November 2017, the FASB updated the Income Statement and Revenue from Contracts with Customers Topics of the ASC. The amendments incorporate into the ASC recent SEC guidance related to revenue recognition. The amendments were effective upon issuance and did not have a material effect on the Company’s financial statements. In March 2018, the FASB updated the Debt Securities and the Regulated Operations Topics of the Accounting Standards Codification. The amendments incorporate into the Accounting Standards Codification recent SEC guidance which was issued in order to make the relevant interpretive guidance consistent with current authoritative accounting and auditing guidance and SEC rules and regulations. The amendments were effective upon issuance and did not have a material effect on the financial statements. In March 2018, the FASB updated the Income Taxes Topic of the ASC. The amendments incorporate into the ASC recent SEC guidance related to the income tax accounting implications of the Tax Cuts and Jobs Act. The amendments were effective upon issuance and did not have a material effect on the Company’s financial statements. In May 2018, the FASB amended the Financial Services—Depository and Lending Topic of the ASC to remove outdated guidance related to Circular 202. The amendments were effective upon issuance and did not have a material effect on the Company’s financial statements. In July 2018, the FASB amended the Leases Topic of the ASC to make narrow amendments to clarify how to apply certain aspects of the new leases standard. Additionally, amendments were made to give entities another option for transition and to provide lessors with a practical expedient. The amendments are effective for reporting periods beginning after December 15, 2018. The Company does not expect these amendments to have a material effect on its financial statements. In August 2018, the FASB amended the Fair Value Measurement Topic of the ASC. The amendments remove, modify, and add certain fair value disclosure requirements based on the concepts in the FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. The Company does not expect these amendments to have a material effect on its financial statements. In August 2018, the FASB amended the Intangibles—Goodwill and Other Topic of the ASC to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments will be effective for the Company for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | Note 6– Fair Value of Financial Instruments The Company adopted FASB ASC Fair Value Measurement Topic 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 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. ASC 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 standard describes three levels of inputs that may be used to measure fair value: Level l Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. FASB ASC 825-10-50 “Disclosure about Fair Value of Financial Instruments”, requires the Company to disclose estimated fair values for its financial instruments. Fair value estimates, methods, and assumptions are set forth below. Cash and Short Term Investments - Investment Securities - Loans Held for Sale - Loans - Other Real Estate Owned (“OREO”) - Accrued Interest Receivable Deposits - Federal Home Loan Bank Advances - Short Term Borrowings - Junior Subordinated Debentures - Accrued Interest Payable - Commitments to Extend Credit The carrying amount and estimated fair value by classification level of the Company’s financial instruments as of September 30, 2018 and December 31, 2017 are as follows: September 30, 2018 Fair Value (Dollars in thousands) Carrying Amount Total Level 1 Level 2 Level 3 Financial assets: Cash and short term investments $ 36,940 $ 36,940 $ 36,940 $ — $ — Held-to-maturity securities 16,218 16,218 — 16,053 — Available-for-sale securities 251,620 251,620 9 251,611 — Other investments, at cost 2,125 2,125 — — 2,125 Loans held for sale 5,528 5,528 — 5,528 — Net loans receivable 690,303 678,488 — — 678,488 Accrued interest 3,513 3,513 3,513 — — Financial liabilities: Non-interest bearing demand deposits $ 254,270 $ 254,270 $ — $ 254,270 $ — Interest bearing demand deposits and money market accounts 380,036 380,036 — 380,036 — Savings 107,410 107,410 — 107,410 — Time deposits 180,006 180,183 — 180,183 — Total deposits 921,722 921,899 — 921,899 — Federal Home Loan Bank Advances 4,236 4,236 — 4,236 — Short term borrowings 33,226 33,226 — 33,226 — Junior subordinated debentures 14,964 12,564 — 12,564 — Accrued interest payable 714 714 714 — — December 31, 2017 Fair Value (Dollars in thousands) Carrying Amount Total Level 1 Level 2 Level 3 Financial assets: Cash and short term investments $ 30,591 $ 30,591 $ 30,591 $ — $ — Held-to-maturity securities 17,012 17,220 — 17,220 — Available-for-sale securities 264,824 264,824 790 264,034 — Other investments, at cost 2,559 2,559 — — 2,559 Loans held for sale 5,093 5,093 — 5,093 — Net loans receivable 641,008 639,489 — 634,361 5,128 Accrued interest 3,489 3,489 3,489 — — Financial liabilities: Non-interest bearing demand $ 226,546 $ 226,546 $ — $ 226,546 $ — NOW and money market accounts 364,358 364,358 — 364,358 — Savings 104,756 104,756 — 104,756 — Time deposits 192,663 192,186 — 192,186 — Total deposits 888,323 887,846 — 887,846 — Federal Home Loan Bank Advances 14,250 14,248 — 14,248 — Short term borrowings 19,270 19,270 — 19,270 — Junior subordinated debentures 14,964 15,025 — 15,025 — Accrued interest payable 562 562 562 — — The following tables summarize quantitative disclosures about the fair value for each category of assets carried at fair value as of September 30, 2018 and December 31, 2017 that are measured on a recurring basis. There were no liabilities carried at fair value as of September 30, 2018 or December 31, 2017 that are measured on a recurring basis. (Dollars in thousands) Description September 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale securities US Treasury Securities $ 11,755 $ — $ 11,755 $ — Government sponsored enterprises 1,089 — 1,089 — Mortgage-backed securities 136,306 — 136,306 — Small Business Administration pools 51,926 — 51,926 — State and local government 50,525 — 50,525 — Corporate and other securities 19 9 10 — 251,620 9 251,611 — Loans held for sale 5,528 — 5,528 — Total $ 257,148 $ 9 $ 257,139 $ — (Dollars in thousands) Description December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale securities US Treasury Securities $ 1,505 $ — $ 1,505 $ — Government sponsored enterprises 1,109 — 1,109 — Mortgage-backed securities 143,768 — 143,768 — Small Business Administration securities 61,588 — 61,588 — State and local government 56,004 — 56,004 — Corporate and other securities 850 790 60 — 264,824 790 264,034 — Loans held for sale 5,093 — 5,093 — Total $ 269,917 $ 790 $ 269,127 $ — The following table reconciles the changes in Level 3 financial instruments for the nine months ended September 30, 2017 measured on a recurring basis. There were no Level 3 financial instruments for the three months ended September 30, 2017 or the three and nine months ended September 30, 2018 measured on a recurring basis. ( Dollars in thousands) Corporate Preferred Stock Beginning Balance December 31, 2016 $ 1,000 Total gains or losses (realized/unrealized) Included in earnings — Included in other comprehensive income — Purchases, issuances, and settlements — Transfers in and/or out of Level 3 (1,000 ) Ending Balance September 30, 2017 $ — The following tables summarize quantitative disclosures about the fair value for each category of assets carried at fair value as of September 30, 2018 and December 31, 2017 that are measured on a non-recurring basis. (Dollars in thousands) Description September 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired loans: Commercial $ — $ — $ — $ — Real estate: Mortgage-residential 236 — — 236 Mortgage-commercial 4,463 — — 4,463 Consumer: Home equity 31 — — 31 Other — — — — Total impaired 4,730 — — 4,730 Other real estate owned: Construction 828 — — 828 Mortgage-residential 130 — — 130 Mortgage-commercial 963 — — 963 Total other real estate owned 1,921 — — 1,921 Total $ 6,651 $ — $ — $ 6,651 (Dollars in thousands) Description December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired loans: Commercial & Industrial $ — $ — $ — $ — Real estate: Mortgage-residential 411 — — 411 Mortgage-commercial 4,717 — — 4,717 Consumer: Home equity — — — — Other — — — — Total impaired 5,128 — — 5,128 Other real estate owned: Construction 828 — — 828 Mortgage-residential 47 — — 47 Mortgage-commercial 1,059 — — 1,059 Total other real estate owned 1,934 — — 1,934 Total $ 7,062 $ — $ — $ 7,062 The Company has a large percentage of loans with real estate serving as collateral. Loans which are deemed to be impaired are primarily valued on a nonrecurring basis at the fair value of the underlying real estate collateral. Such fair values are obtained using independent appraisals, which the Company considers to be Level 3 inputs. Third party appraisals are generally obtained when a loan is identified as being impaired or at the time it is transferred to OREO. This internal process consists of evaluating the underlying collateral to independently obtained comparable properties. With respect to less complex or smaller credits, an internal evaluation may be performed. Generally, the independent and internal evaluations are updated annually. Factors considered in determining the fair value include, among others, geographic sales trends, the value of comparable surrounding properties and the condition of the property. The aggregate amount of impaired loans was $4.7 million and $5.2 million as of September 30, 2018 and December 31, 2017, respectively. For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2018 and December 31, 2017, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value as of September 30, 2018 Valuation Technique Significant Observable Inputs Significant Unobservable Inputs OREO $ 1,921 Appraisal Value/Comparison Sales/Other estimates Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost Impaired loans $ 4,730 Appraisal Value Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost (Dollars in thousands) Fair Value as of December 31, 2017 Valuation Technique Significant Observable Inputs Significant Unobservable Inputs OREO $ 1,934 Appraisal Value/Comparison Sales/Other estimates Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost Impaired loans $ 5,128 Appraisal Value Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2018 | |
Banking and Thrift [Abstract] | |
DEPOSITS | Note 7 — Deposits The Company’s total deposits are comprised of the following at the dates indicated: September 30, December 31, Dollars in thousands 2018 2017 Non-interest bearing demand deposits $ 254,270 $ 226,546 Interest bearing demand deposits and money market accounts 380,036 364,358 Savings 107,410 104,756 Time deposits 180,006 192,663 Total deposits $ 921,722 $ 888,323 As of September 30, 2018 and December 31, 2017, the Company had time deposits greater than $250,000 of $27.5 million and $38.4 million, respectively. |
REPORTABLE SEGMENTS
REPORTABLE SEGMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
REPORTABLE SEGMENTS | Note 8 – Reportable Segments The Company’s reportable segments represent the distinct product lines the Company offers and are viewed separately for strategic planning by management. The Company has four reportable segments: · Commercial and retail banking · Mortgage banking · Investment advisory and non-deposit · Corporate Nine months ended September 30, 2018 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Dividend and Interest Income $ 28,513 $ 622 $ — $ 2,779 $ (2,779 ) $ 29,135 Interest expense 2,251 — — 528 — 2,779 Net interest income $ 26,262 $ 622 $ — $ 2,251 $ (2,779 ) $ 26,356 Provision for loan losses 252 — — — — 252 Noninterest income 4,051 3,126 1,207 — — 8,384 Noninterest expense 20,105 2,515 1,047 286 — 23,953 Net income before taxes $ 9,956 $ 1,233 $ 160 $ 1,965 $ (2,779 ) $ 10,535 Income tax provision (benefit) 2,173 — — (181 ) — 1,992 Net income $ 7,783 $ 1,233 $ 160 $ 2,146 $ (2,779 ) $ 8,543 Three months ended September 30, 2018 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Dividend and Interest Income $ 9,772 $ 213 $ — $ 947 $ (947 ) 9,985 Interest expense 915 — — 187 — 1,102 Net interest income $ 8,857 $ 213 $ — $ 760 $ (947 ) $ 8,883 Provision for loan losses 21 — — — — 21 Noninterest income 1,260 1,159 423 — — 2,842 Noninterest expense 6,796 937 324 77 — 8,134 Net income before taxes $ 3,300 $ 435 $ 99 $ 683 $ (947 ) $ 3,570 Income tax provision (benefit) 791 — — (54 ) — 737 Net income $ 2,509 $ 435 $ 99 $ 737 $ (947 ) $ 2,833 Nine months ended September 30, 2017 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Dividend and Interest Income $ 23,072 $ 331 $ — $ 2,191 $ (2,178 ) $ 23,416 Interest expense 1,660 — — 420 — 2,080 Net interest income $ 21,412 $ 331 $ — $ 1,771 $ (2,178 ) $ 21,336 Provision for loan losses 360 — — — — 360 Noninterest income 3,097 2,950 908 90 — 7,045 Noninterest expense 17,699 2,181 839 265 — 20,984 Net income before taxes $ 6,450 $ 1,100 $ 69 $ 1,596 $ (2,178 ) $ 7,037 Income tax provision (benefit) 2,037 — — (313 ) — 1,724 Net income $ 4,413 $ 1,100 $ 69 $ 1,909 $ (2,178 ) $ 5,313 Three months ended September 30, 2017 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Dividend and Interest Income $ 7,763 $ 153 $ — $ 747 $ (742 ) 7,921 Interest expense 547 — — 147 — 694 Net interest income $ 7,216 $ 153 $ — $ 600 $ (742 ) $ 7,227 Provision for loan losses 166 — — — — 166 Noninterest income 1,053 1,032 337 — — 2,422 Noninterest expense 5,780 769 262 83 — 6,894 Net income before taxes $ 2,323 $ 416 $ 75 $ 517 $ (742 ) $ 2,589 Income tax provision (benefit) 772 — — (76 ) — 696 Net income $ 1,551 $ 416 $ 75 $ 593 $ (742 ) $ 1,893 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Total Assets as of September 30, 2018 $ 1,075,604 $ 14,580 $ 13 $ 127,929 $ (126,984 ) $ 1,091,142 Total Assets as of December 31, 2017 $ 1,033,483 $ 16,298 $ 19 $ 121,326 $ (120,395 ) $ 1,050,731 |
MERGERS AND ACQUISITIONS
MERGERS AND ACQUISITIONS | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
MERGERS AND ACQUISITIONS | Note 9 - Mergers and Acquisitions On October 20, 2017, the Company acquired all of the outstanding common stock of Cornerstone Bancorp of Easley, South Carolina (“Cornerstone”) the bank holding company for Cornerstone National Bank (“CNB”), in a cash and stock transaction. The total purchase price was approximately $27.1 million, consisting of $7.8 million in cash and 877,364 shares of our common stock valued at $19.3 million based on a provision in the merger agreement that 30% of the outstanding shares of Cornerstone common stock be exchanged for cash and 70% of the outstanding shares of Cornerstone common stock be exchanged for shares of the Company’s common stock. The value of the Company’s common stock issued was determined based on the closing price of the common stock on October 19, 2017 as reported by NASDAQ, which was $22.05. Cornerstone common shareholders received 0.54 shares of the Company’s common stock in exchange for each share of Cornerstone common stock, or $11.00 per share, subject to the limitations discussed above. The Company issued 877,364 shares of its common stock in connection with the merger. The Cornerstone transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date based on a third party valuation of significant accounts. Fair values are subject to refinement for up to a year. The following table presents the assets acquired and liabilities assumed as of October 20, 2017 as recorded by the Company on the acquisition date and initial fair value adjustments. As Recorded by Fair Value As Recorded (Dollars in thousands, except per share data) Cornerstone Adjustments by the Company Assets Cash and cash equivalents $ 30,060 $ — $ 30,060 Investment securities 44,018 (358 )(a) 43,660 Loans 60,835 (734 )(b) 60,101 Premises and equipment 4,164 573 (c) 4,737 Intangible assets — 1,810 (d) 1,810 Bank owned life insurance 2,384 — 2,384 Other assets 3,082 (452 )(e) 2,630 Total assets $ 144,543 $ 839 $ 145,382 Liabilities Deposits: Noninterest-bearing $ 27,296 $ — $ 27,296 Interest-bearing 99,152 150 (f) 99,302 Total deposits 126,448 150 126,598 Securities sold under agreements to repurchase 849 — 849 Other liabilities 320 96 (g) 416 Total liabilities 127,617 246 127,863 Net identifiable assets acquired over liabilities assumed 16,926 593 17,519 Goodwill — 9,558 9,558 Net assets acquired over liabilities assumed $ 16,926 $ 10,151 $ 27,077 Consideration: First Community Corporation common shares issued 877,364 Purchase price per share of the Company’s common stock $ 22.05 $ 19,346 Cash exchanged for stock and fractional shares 7,731 Fair value of total consideration transferred $ 27,077 Explanation of fair value adjustments (a)—Adjustment reflects marking the securities portfolio to fair value as of the acquisition date. (b)—Adjustment reflects the fair value adjustments based on the Company’s evaluation of the acquired loan portfolio and excludes the allowance for loan losses recorded by Cornerstone. (c)—Adjustment reflects the fair value adjustments based on the Company’s evaluation of the acquired premises and equipment. (d)—Adjustment reflects the recording of the core deposit intangible on the acquired deposit accounts. (e)—Adjustment reflects the deferred tax adjustment related to fair value adjustments at 34%. (f)—Adjustment reflects the fair value adjustment on interest-bearing deposits. (g)—Adjustment reflects the fair value adjustment on post-retirement benefits. The operating results of the Company for the three months and nine months ended September 30, 2018 include the operating results of the acquired assets and assumed liabilities for the entire period. The following table presents certain pro forma information as if Cornerstone had been acquired on January 1, 2017. These results combine the historical results of Cornerstone 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 Pro Forma Pro Forma Three Months Nine Months (Dollars in thousands) Ended Ended Total revenues (net interest income plus noninterest income) $ 13,310 $ 34,660 Net income $ 1,618 $ 5,168 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 10 – Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were available to be issued and no subsequent events occurred requiring accrual or disclosure. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of the numerator and denominator of the basic and diluted earnings per common share computation | The following reconciles the numerator and denominator of the basic and diluted earnings per common share computation: (In thousands except average market price) Nine months Three months Ended September 30, Ended September 30, 2018 2017 2018 2017 Numerator (Net income) $ 8,543 $ 5,313 $ 2,833 $ 1,893 Denominator Weighted average common shares outstanding for: Basic earnings per share 7,581 6,666 7,592 6,666 Dilutive securities: Deferred compensation 65 54 61 54 Warrants/Restricted stock – Treasury stock method 73 88 71 88 Diluted earnings per share 7,719 6,808 7,724 6,808 The average market price used in calculating assumed number of shares $ 25.33 $ 20.59 $ 23.49 $ 20.66 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and estimated fair values of available-for-sale | The amortized cost and estimated fair values of investment securities are summarized below: AVAILABLE-FOR-SALE: Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value September 30, 2018 US Treasury securities $ 11,823 $ — $ 68 $ 11,755 Government Sponsored Enterprises 1,094 — 5 1,089 Mortgage-backed securities 140,335 44 4,073 136,306 Small Business Administration pools 52,670 147 891 51,926 State and local government 51,473 293 1,241 50,525 Other securities 19 — — 19 $ 257,414 $ 484 $ 6,278 $ 251,620 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value December 31, 2017 US Treasury securities $ 1,529 $ — $ 24 $ 1,505 Government Sponsored Enterprises 1,085 24 — 1,109 Mortgage-backed securities 145,185 285 1,702 143,768 Small Business Administration pools 61,544 374 330 61,588 State and local government 55,111 1,309 416 56,004 Other securities 932 — 82 850 $ 265,386 $ 1,992 $ 2,554 $ 264,824 |
Schedule of amortized cost and estimated fair values of held-to-maturity securities | The amortized cost and estimated fair values of investment securities are summarized below: HELD-TO-MATURITY: Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value September 30, 2018 State and local government $ 16,218 $ 13 $ 178 $ 16,053 $ 16,218 $ 13 $ 178 $ 16,053 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value December 31, 2017 State and local government $ 17,012 $ 223 $ 15 $ 17,220 $ 17,012 $ 223 $ 15 $ 17,220 |
Schedule of gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position | The following tables show gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position, at September 30, 2018 and December 31, 2017. (Dollars in thousands) Less than 12 months 12 months or more Total September 30, 2018 Unrealized Unrealized Unrealized Available-for-sale securities: Fair Value Loss Fair Value Loss Fair Value Loss US Treasury securities $ 10,279 $ 22 $ 1,475 $ 46 $ 11,754 $ 68 Government Sponsored Enterprise 1,088 5 — — 1,088 5 Government Sponsored Enterprise mortgage-backed securities 68,482 1,536 53,336 2,537 121,818 4,073 Small Business Administration pools 22,118 386 15,594 505 37,712 891 State and local government 21,821 398 12,765 843 34,586 1,241 $ 123,788 $ 2,347 $ 83,170 $ 3,931 $ 206,958 $ 6,278 (Dollars in thousands) Less than 12 months 12 months or more Total September 30, 2018 Unrealized Unrealized Unrealized Held-to-maturity securities: Fair Value Loss Fair Value Loss Fair Value Loss State and local government $ 13,622 $ 178 $ — $ — $ 13,622 $ 178 (Dollars in thousands) Less than 12 months 12 months or more Total December 31, 2017 Unrealized Unrealized Unrealized Available-for-sale securities: Fair Value Loss Fair Value Loss Fair Value Loss US Treasury securities $ — $ — $ 1,505 $ 24 $ 1,505 $ 24 Government Sponsored Enterprise mortgage-backed securities 50,377 420 46,071 1,282 96,448 1,702 Small Business Administration pools 17,607 164 16,311 166 33,918 330 State and local government 3,639 15 12,990 401 16,629 416 Corporate and other securities — — 790 82 790 82 $ 71,623 $ 599 $ 77,667 $ 1,955 $ 149,290 $ 2,554 (Dollars in thousands) Less than 12 months 12 months or more Total December 31, 2017 Unrealized Unrealized Unrealized Held-to-maturity securities: Fair Value Loss Fair Value Loss Fair Value Loss State and local government $ 2,899 $ 15 $ — $ — $ 2,899 $ 15 |
Schedule of the amortized cost and fair value of investment securities by expected maturity | The following sets forth the amortized cost and fair value of investment securities at September 30, 2018 by contractual maturity. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay the obligations with or without prepayment penalties. MBSs are based on average life at estimated prepayment speeds. September 30, 2018 Available-for-sale Held-to-maturity Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Due in one year or less $ 17,686 $ 17,670 $ — $ — Due after one year through five years 150,575 147,607 9,187 9,129 Due after five years through ten years 80,047 77,462 7,031 6,924 Due after ten years 9,106 8,881 — — $ 257,414 $ 251,620 $ 16,218 $ 16,053 |
LOANS (Tables)
LOANS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Summary of loans by category | Loans summarized by category as of September 30, 2018, December 31, 2017 and September 30, 2017 are as follows: September 30, December 31, September 30, (Dollars in thousands) 2018 2017 2017 Commercial, financial and agricultural $ 50,940 $ 51,040 $ 44,917 Real estate: Construction 56,568 45,401 42,693 Mortgage-residential 50,914 46,901 44,567 Mortgage-commercial 498,650 460,276 398,777 Consumer: Home equity 29,933 32,451 29,984 Other 9,510 10,736 7,550 Total $ 696,515 $ 646,805 $ 568,488 |
Schedule of activity in the allowance for loan losses and the recorded investment in loans receivable | The detailed activity in the allowance for loan losses and the recorded investment in loans receivable as of and for the nine months ended September 30, 2018 and September 30, 2017 and for the year ended December 31, 2017 is as follows: (Dollars in thousands) Real estate Real estate Real estate Mortgage Mortgage Consumer Consumer September 30, 2018 Commercial Construction Residential Commercial Home equity Other Unallocated Total Allowance for loan losses: Beginning balance December 31, 2017 $ 221 $ 101 $ 461 $ 3,077 $ 308 $ 35 $ 1,594 $ 5,797 Charge-offs — — (1 ) — — (109 ) — (110 ) Recoveries 14 — 3 219 6 31 — 273 Provisions (46 ) 4 481 (388 ) 732 108 (639 ) 252 Ending balance September 30, 2018 $ 189 $ 105 $ 944 $ 2,908 $ 1,046 $ 65 $ 955 $ 6,212 Ending balances: Individually evaluated for impairment $ — $ — $ 1 $ 3 $ — $ — $ — $ 4 Collectively evaluated for impairment 189 105 943 2,905 1,046 65 955 6,208 September 30, 2018 Loans receivable: Ending balance-total $ 50,940 $ 56,568 $ 50,914 $ 498,650 $ 29,933 $ 9,510 $ — $ 696,515 Ending balances: Individually evaluated for impairment — — 237 4,466 31 — — 4,734 Collectively evaluated for impairment $ 50,940 $ 56,568 $ 50,677 $ 494,184 $ 29,902 $ 9,510 $ — $ 691,781 (Dollars in thousands) Real estate Real estate Consumer September 30, 2017 Real estate Mortgage Mortgage Home Consumer Commercial construction Residential Commercial Equity Other Unallocated Total Allowance for loan losses: Beginning balance December 31, 2016 $ 145 $ 104 $ 438 $ 2,793 $ 153 $ 127 $ 1,454 $ 5,214 Charge-offs (5) — — (30 ) — (85 ) — (120 ) Recoveries 3 — 4 158 24 13 — 202 Provisions 41 (10 ) (115 ) (5 ) 81 (38 ) 406 360 Ending balance September 30, 2017 $ 184 $ 94 $ 327 $ 2,916 $ 258 $ 17 $ 1,860 $ 5,656 Ending balances: Individually evaluated for impairment $ — $ — $ 2 $ 29 $ — $ — $ — $ 31 Collectively evaluated for impairment 184 94 325 2,887 258 17 1,860 5,625 September 30, 2017 Loans receivable: Ending balance-total $ 44,917 $ 42,693 $ 44,567 $ 398,777 $ 29,984 $ 7,550 $ — $ 568,488 Ending balances: Individually evaluated for impairment — — 422 4,173 34 — — 4,629 Collectively evaluated for impairment $ 44,917 $ 42,693 $ 44,145 $ 394,604 $ 29,950 $ 7,550 $ — $ 563,859 (Dollars in thousands) Real estate Real estate Real estate Mortgage Mortgage Consumer Consumer December 31, 2017 Commercial Construction Residential Commercial Home equity Other Unallocated Total Allowance for loan losses: Beginning balance December 31, 2016 $ 145 $ 104 $ 438 $ 2,793 $ 153 $ 127 $ 1,454 $ 5,214 Charge-offs (5 ) — — (30 ) (7 ) (131 ) — (173 ) Recoveries 5 — 5 172 24 20 — 226 Provisions 76 (3 ) 18 142 138 19 140 530 Ending balance December 31, 2017 $ 221 $ 101 $ 461 $ 3,077 $ 308 $ 35 $ 1,594 $ 5,797 Ending balances: Individually evaluated for impairment $ — $ — $ 2 $ 25 $ — $ — $ — $ 27 Collectively evaluated for impairment 221 101 459 3,052 308 35 1,594 5,770 December 31, 2017 Loans receivable: Ending balance-total $ 51,040 $ 45,401 $ 46,901 $ 460,276 $ 32,451 $ 10,736 $ — $ 646,805 Ending balances: Individually evaluated for impairment — — 413 4,742 — — — 5,155 Collectively evaluated for impairment $ 51,040 $ 45,401 $ 46,488 $ 455,534 $ 32,451 $ 10,736 $ — $ 641,650 The detailed activity in the allowance for loan losses as of and for the three months ended September 30, 2018 and the three months ended September 30, 2017 is as follows: (Dollars in thousands) Real estate Real estate Consumer Real estate Mortgage Mortgage Home Consumer Commercial construction Residential Commercial Equity Other Unallocated Total Allowance for loan losses: Beginning balance June 30, 2018 $ 272 $ 112 $ 672 $ 2,618 $ 1,029 $ 113 $ 1,271 $ 6,087 Charge-offs — — — — — (24 ) — (24 ) Recoveries 11 — 1 105 1 10 — 128 Provisions (94) (7) 271 185 16 (34 ) (316 ) 21 Ending balance September 30, 2018 $ 189 $ 105 $ 944 $ 2,908 $ 1,046 $ 65 $ 955 $ 6,212 (Dollars in thousands) Real estate Real estate Consumer Real estate Mortgage Mortgage Home Consumer - Commercial construction Residential Commercial Equity Other Unallocated Total Allowance for loan losses: Beginning balance June 30, 2017 $ 169 $ 76 $ 353 $ 2,845 $ 196 $ 24 $ 1,827 $ 5,490 Charge-offs (5) — — (6) — (41 ) — (52 ) Recoveries — — 2 45 — 5 — 52 Provisions 20 18 (28 ) 32 62 29 33 166 Ending balance September 30, 2017 $ 184 $ 94 $ 327 $ 2,916 $ 258 $ 17 $ 1,860 $ 5,656 |
Schedule of related party loan | The following table presents related party loan transactions for the nine months ended September 30, 2018 and 2017: (Dollars in thousands) 2018 2017 Beginning Balance December 31, $ 5,938 $ 6,103 New Loans 2,406 339 Less loan repayments 1,999 925 Ending Balance September 30, $ 6,345 $ 5,517 |
Schedule of loans individually evaluated and considered impaired | The following table presents at September 30, 2018 and December 31, 2017 loans individually evaluated and considered impaired under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 310 “Accounting by Creditors for Impairment of a Loan.” Impairment includes performing troubled debt restructurings (“TDRs”). (Dollars in thousands) September 30, December 31, 2018 2017 Total loans considered impaired $ 4,734 $ 5,155 Loans considered impaired for which there is a related allowance for loan loss: Outstanding loan balance $ 1,143 $ 1,669 Related allowance $ 4 $ 27 Loans considered impaired and previously written down to fair value $ 3,591 $ 3,485 Average impaired loans $ 5,160 $ 5,513 Amount of interest earned during period of impairment $ 297 $ 132 |
Schedule of loan category and loans individually evaluated and considered impaired | The following tables are by loan category and present at September 30, 2018, September 30, 2017 and December 31, 2017 loans individually evaluated and considered impaired under FASB ASC 310 “Accounting by Creditors for Impairment of a Loan.” Impairment includes performing TDRs. (Dollars in thousands) Nine months ended Three months ended Unpaid Average Interest Average Interest September 30, 2018 Recorded Principal Related Recorded income Recorded Income Investment Balance Allowance Investment Recognized Investment Recognized With no allowance recorded: Commercial, financial, agricultural $ — $ — $ — $ — $ — $ — $ — Real estate: Construction — — — — — — — Mortgage-residential 198 266 — 202 16 197 2 Mortgage-commercial 3,363 6,158 — 3,753 219 3,627 75 Consumer: Home equity 31 32 — 35 1 31 — Other — — — — — — — With an allowance recorded: Commercial, financial, agricultural — — — — — — — Real estate: Construction — — — — — — — Mortgage-residential 39 39 1 41 2 39 1 Mortgage-commercial 1,103 1,103 3 1,129 59 1,103 19 Consumer: Home equity — — — — — — — Other — — — — — — — Total: Commercial, financial, agricultural $ — $ — $ — $ — $ — $ — $ — Real estate: Construction — — — — — — — Mortgage-residential 237 305 1 243 18 236 3 Mortgage-commercial 4,466 7,261 3 4,882 278 4,730 94 Consumer: Home equity 31 32 — 35 1 31 — Other — — — — — — — $ 4,734 $ 7,598 $ 4 $ 5,160 $ 297 $ 4,997 $ 97 (Dollars in thousands) Nine months ended Three months ended September 30, 2017 Unpaid Average Interest Average Interest Recorded Principal Related Recorded income Recorded income Investment Balance Allowance Investment Recognized Investment Recognized With no allowance recorded: Commercial, financial, agricultural $ — $ — $ — $ — $ — $ — $ — Real estate: Construction — — — — — — — Mortgage-residential 379 443 — 384 11 378 11 Mortgage-commercial 2,501 5,051 — 2,536 117 2,488 118 Consumer: Home equity 34 34 — 34 — 56 — Other — — — — — — — With an allowance recorded: Commercial, financial, agricultural — — — — — — — Real estate: Construction — — — — — — — Mortgage-residential 43 43 2 43 2 43 1 Mortgage-commercial 1,672 2,293 29 1,678 111 1,671 31 Consumer: Home equity — — — — — — — Other — — — — — — — Total: Commercial, financial, agricultural $ — $ — $ — $ — $ — $ — $ — Real estate: Construction — — — — — — — Mortgage-residential 422 486 2 427 13 421 12 Mortgage-commercial 4,173 7,344 29 4,214 228 4,159 149 Consumer: Home equity 34 34 — 34 — 56 — Other — — — — — — — $ 4,629 $ 7,864 $ 31 $ 4,675 $ 241 $ 4,636 $ 161 (Dollars in thousands) December 31, 2017 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no allowance recorded: Commercial $ — $ — $ — $ — $ — Real estate: Construction — — — — — Mortgage-residential 371 437 — 399 — Mortgage-commercial 3,087 5,966 — 3,420 13 Consumer: Home Equity — — — — — Other — — — — — With an allowance recorded: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential 42 42 2 43 2 Mortgage-commercial 1,655 2,261 25 1,652 117 Consumer: Home Equity — — — — — Other — — — — — Total: Commercial $ — $ — $ — $ — $ — Real estate: Construction — — — — — Mortgage-residential 413 479 2 442 2 Mortgage-commercial 4,742 8,227 25 5,072 130 Consumer: Home Equity — — — — — Other — — — — — $ 5,155 $ 8,706 $ 27 $ 5,514 $ 132 |
Schedule of loan category and loan by risk categories | Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered as pass rated loans. As of September 30, 2018 and December 31, 2017, and based on the most recent analysis performed, the risk category of loans by class of loans is shown in the table below. As of September 30, 2018 and December 31, 2017, no loans were classified as doubtful. (Dollars in thousands) September 30, 2018 Special Pass Mention Substandard Doubtful Total Commercial, financial & agricultural $ 50,722 $ 49 $ 169 $ — $ 50,940 Real estate: Construction 56,568 — — — 56,568 Mortgage – residential 49,359 646 909 — 50,914 Mortgage – commercial 489,712 4,556 4,382 — 498,650 Consumer: Home Equity 28,120 1,465 348 — 29,933 Other 9,507 — 3 — 9,510 Total $ 683,988 $ 6,716 $ 5,811 $ — $ 696,515 (Dollars in thousands) December 31, 2017 Special Pass Mention Substandard Doubtful Total Commercial, financial & agricultural $ 50,680 $ 179 $ 181 $ — $ 51,040 Real estate: Construction 45,401 — — — 45,401 Mortgage – residential 45,343 720 838 — 46,901 Mortgage – commercial 446,531 7,698 6,047 — 460,276 Consumer: Home Equity 30,618 1,524 309 — 32,451 Other 10,731 — 5 — 10,736 Total $ 629,304 $ 10,121 $ 7,380 $ — $ 646,805 |
Schedule for changes in the accretable yield for PCI loans | A summary of changes in the accretable yield for PCI loans for the three and nine months ended September 30, 2018 and September 30, 2017 follows: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Accretable yield, beginning of period $ (2 ) $ 22 Accretion (8 ) (32 ) Reclassification of nonaccretable difference due to improvement in expected cash flows — — Accretable yield, end of period $ (10 ) $ (10 ) Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Accretable yield, beginning of period $ 50 $ 34 Accretion (29 ) (57 ) Reclassification of nonaccretable difference due to improvement in expected cash flows — 44 Accretable yield, end of period $ 21 $ 21 |
Schedule of loan category and present loans past due and on non-accrual status | The following tables are by loan category and present loans past due and on non-accrual status as of September 30, 2018 and December 31, 2017: (Dollars in thousands) Greater than 30-59 Days 60-89 Days 90 Days and Total September 30, 2018 Past Due Past Due Accruing Nonaccrual Past Due Current Total Loans Commercial $ 5 $ — $ — $ — $ 5 $ 50,935 $ 50,940 Real estate: Construction 24 — — — 24 56,544 56,568 Mortgage-residential 42 121 — 197 360 50,554 50,914 Mortgage-commercial 901 1,339 29 2,676 4,945 493,705 498,650 Consumer: Home equity 177 — — 31 208 29,725 29,933 Other 1 2 — 3 9,507 9,510 $ 1,150 $ 1,462 $ 29 $ 2,904 $ 5,545 $ 690,970 $ 696,515 (Dollars in thousands) Greater than 30-59 Days 60-89 Days 90 Days and Total December 31, 2017 Past Due Past Due Accruing Nonaccrual Past Due Current Total Loans Commercial $ 26 $ — $ 32 $ — $ 58 $ 50,982 $ 51,040 Real estate: Construction — — — — — 45,401 45,401 Mortgage-residential 109 38 — 371 518 46,383 46,901 Mortgage-commercial 290 828 — 2,971 4,089 456,187 460,276 Consumer: Home equity 805 36 — — 841 31,610 32,451 Other 1 5 — — 6 10,730 10,736 $ 1,231 $ 907 $ 32 $ 3,342 $ 5,512 $ 641,293 $ 646,805 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amount and estimated fair value by classification Level of the Company's financial instruments | The carrying amount and estimated fair value by classification level of the Company’s financial instruments as of September 30, 2018 and December 31, 2017 are as follows: September 30, 2018 Fair Value (Dollars in thousands) Carrying Amount Total Level 1 Level 2 Level 3 Financial assets: Cash and short term investments $ 36,940 $ 36,940 $ 36,940 $ — $ — Held-to-maturity securities 16,218 16,218 — 16,053 — Available-for-sale securities 251,620 251,620 9 251,611 — Other investments, at cost 2,125 2,125 — — 2,125 Loans held for sale 5,528 5,528 — 5,528 — Net loans receivable 690,303 678,488 — — 678,488 Accrued interest 3,513 3,513 3,513 — — Financial liabilities: Non-interest bearing demand deposits $ 254,270 $ 254,270 $ — $ 254,270 $ — Interest bearing demand deposits and money market accounts 380,036 380,036 — 380,036 — Savings 107,410 107,410 — 107,410 — Time deposits 180,006 180,183 — 180,183 — Total deposits 921,722 921,899 — 921,899 — Federal Home Loan Bank Advances 4,236 4,236 — 4,236 — Short term borrowings 33,226 33,226 — 33,226 — Junior subordinated debentures 14,964 12,564 — 12,564 — Accrued interest payable 714 714 714 — — December 31, 2017 Fair Value (Dollars in thousands) Carrying Amount Total Level 1 Level 2 Level 3 Financial assets: Cash and short term investments $ 30,591 $ 30,591 $ 30,591 $ — $ — Held-to-maturity securities 17,012 17,220 — 17,220 — Available-for-sale securities 264,824 264,824 790 264,034 — Other investments, at cost 2,559 2,559 — — 2,559 Loans held for sale 5,093 5,093 — 5,093 — Net loans receivable 641,008 639,489 — 634,361 5,128 Accrued interest 3,489 3,489 3,489 — — Financial liabilities: Non-interest bearing demand $ 226,546 $ 226,546 $ — $ 226,546 $ — NOW and money market accounts 364,358 364,358 — 364,358 — Savings 104,756 104,756 — 104,756 — Time deposits 192,663 192,186 — 192,186 — Total deposits 888,323 887,846 — 887,846 — Federal Home Loan Bank Advances 14,250 14,248 — 14,248 — Short term borrowings 19,270 19,270 — 19,270 — Junior subordinated debentures 14,964 15,025 — 15,025 — Accrued interest payable 562 562 562 — — |
Schedule of fair value for each category of assets carried at fair value that are measured on a recurring basis | The following tables summarize quantitative disclosures about the fair value for each category of assets carried at fair value as of September 30, 2018 and December 31, 2017 that are measured on a recurring basis. There were no liabilities carried at fair value as of September 30, 2018 or December 31, 2017 that are measured on a recurring basis. (Dollars in thousands) Description September 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale securities US Treasury Securities $ 11,755 $ — $ 11,755 $ — Government sponsored enterprises 1,089 — 1,089 — Mortgage-backed securities 136,306 — 136,306 — Small Business Administration pools 51,926 — 51,926 — State and local government 50,525 — 50,525 — Corporate and other securities 19 9 10 — 251,620 9 251,611 — Loans held for sale 5,528 — 5,528 — Total $ 257,148 $ 9 $ 257,139 $ — (Dollars in thousands) Description December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale securities US Treasury Securities $ 1,505 $ — $ 1,505 $ — Government sponsored enterprises 1,109 — 1,109 — Mortgage-backed securities 143,768 — 143,768 — Small Business Administration securities 61,588 — 61,588 — State and local government 56,004 — 56,004 — Corporate and other securities 850 790 60 — 264,824 790 264,034 — Loans held for sale 5,093 — 5,093 — Total $ 269,917 $ 790 $ 269,127 $ — |
Schedule reconciling the changes in Level 3 financial instruments measured on a recurring basis | The following table reconciles the changes in Level 3 financial instruments for the nine months ended September 30, 2017 measured on a recurring basis. There were no Level 3 financial instruments for the three months ended September 30, 2017 or the three and nine months ended September 30, 2018 measured on a recurring basis. ( Dollars in thousands) Corporate Preferred Stock Beginning Balance December 31, 2016 $ 1,000 Total gains or losses (realized/unrealized) Included in earnings — Included in other comprehensive income — Purchases, issuances, and settlements — Transfers in and/or out of Level 3 (1,000 ) Ending Balance September 30, 2017 $ — |
Schedule of the fair value for each category of assets carried at fair value that are measured on a non-recurring basis | The following tables summarize quantitative disclosures about the fair value for each category of assets carried at fair value as of September 30, 2018 and December 31, 2017 that are measured on a non-recurring basis. (Dollars in thousands) Description September 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired loans: Commercial $ — $ — $ — $ — Real estate: Mortgage-residential 236 — — 236 Mortgage-commercial 4,463 — — 4,463 Consumer: Home equity 31 — — 31 Other — — — — Total impaired 4,730 — — 4,730 Other real estate owned: Construction 828 — — 828 Mortgage-residential 130 — — 130 Mortgage-commercial 963 — — 963 Total other real estate owned 1,921 — — 1,921 Total $ 6,651 $ — $ — $ 6,651 (Dollars in thousands) Description December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired loans: Commercial & Industrial $ — $ — $ — $ — Real estate: Mortgage-residential 411 — — 411 Mortgage-commercial 4,717 — — 4,717 Consumer: Home equity — — — — Other — — — — Total impaired 5,128 — — 5,128 Other real estate owned: Construction 828 — — 828 Mortgage-residential 47 — — 47 Mortgage-commercial 1,059 — — 1,059 Total other real estate owned 1,934 — — 1,934 Total $ 7,062 $ — $ — $ 7,062 |
Schedule of significant unobservable inputs used in the fair value measurements | For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2018 and December 31, 2017, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value as of September 30, 2018 Valuation Technique Significant Observable Inputs Significant Unobservable Inputs OREO $ 1,921 Appraisal Value/Comparison Sales/Other estimates Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost Impaired loans $ 4,730 Appraisal Value Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost (Dollars in thousands) Fair Value as of December 31, 2017 Valuation Technique Significant Observable Inputs Significant Unobservable Inputs OREO $ 1,934 Appraisal Value/Comparison Sales/Other estimates Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost Impaired loans $ 5,128 Appraisal Value Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Total Deposit Liabilities | The Company’s total deposits are comprised of the following at the dates indicated: September 30, December 31, Dollars in thousands 2018 2017 Non-interest bearing demand deposits $ 254,270 $ 226,546 Interest bearing demand deposits and money market accounts 380,036 364,358 Savings 107,410 104,756 Time deposits 180,006 192,663 Total deposits $ 921,722 $ 888,323 |
REPORTABLE SEGMENTS (Tables)
REPORTABLE SEGMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment | The Company’s reportable segments represent the distinct product lines the Company offers and are viewed separately for strategic planning by management. The Company has four reportable segments: Nine months ended September 30, 2018 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Dividend and Interest Income $ 28,513 $ 622 $ — $ 2,779 $ (2,779 ) $ 29,135 Interest expense 2,251 — — 528 — 2,779 Net interest income $ 26,262 $ 622 $ — $ 2,251 $ (2,779 ) $ 26,356 Provision for loan losses 252 — — — — 252 Noninterest income 4,051 3,126 1,207 — — 8,384 Noninterest expense 20,105 2,515 1,047 286 — 23,953 Net income before taxes $ 9,956 $ 1,233 $ 160 $ 1,965 $ (2,779 ) $ 10,535 Income tax provision (benefit) 2,173 — — (181 ) — 1,992 Net income $ 7,783 $ 1,233 $ 160 $ 2,146 $ (2,779 ) $ 8,543 Three months ended September 30, 2018 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Dividend and Interest Income $ 9,772 $ 213 $ — $ 947 $ (947 ) 9,985 Interest expense 915 — — 187 — 1,102 Net interest income $ 8,857 $ 213 $ — $ 760 $ (947 ) $ 8,883 Provision for loan losses 21 — — — — 21 Noninterest income 1,260 1,159 423 — — 2,842 Noninterest expense 6,796 937 324 77 — 8,134 Net income before taxes $ 3,300 $ 435 $ 99 $ 683 $ (947 ) $ 3,570 Income tax provision (benefit) 791 — — (54 ) — 737 Net income $ 2,509 $ 435 $ 99 $ 737 $ (947 ) $ 2,833 Nine months ended September 30, 2017 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Dividend and Interest Income $ 23,072 $ 331 $ — $ 2,191 $ (2,178 ) $ 23,416 Interest expense 1,660 — — 420 — 2,080 Net interest income $ 21,412 $ 331 $ — $ 1,771 $ (2,178 ) $ 21,336 Provision for loan losses 360 — — — — 360 Noninterest income 3,097 2,950 908 90 — 7,045 Noninterest expense 17,699 2,181 839 265 — 20,984 Net income before taxes $ 6,450 $ 1,100 $ 69 $ 1,596 $ (2,178 ) $ 7,037 Income tax provision (benefit) 2,037 — — (313 ) — 1,724 Net income $ 4,413 $ 1,100 $ 69 $ 1,909 $ (2,178 ) $ 5,313 Three months ended September 30, 2017 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Dividend and Interest Income $ 7,763 $ 153 $ — $ 747 $ (742 ) 7,921 Interest expense 547 — — 147 — 694 Net interest income $ 7,216 $ 153 $ — $ 600 $ (742 ) $ 7,227 Provision for loan losses 166 — — — — 166 Noninterest income 1,053 1,032 337 — — 2,422 Noninterest expense 5,780 769 262 83 — 6,894 Net income before taxes $ 2,323 $ 416 $ 75 $ 517 $ (742 ) $ 2,589 Income tax provision (benefit) 772 — — (76 ) — 696 Net income $ 1,551 $ 416 $ 75 $ 593 $ (742 ) $ 1,893 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Total Assets as of September 30, 2018 $ 1,075,604 $ 14,580 $ 13 $ 127,929 $ (126,984 ) $ 1,091,142 Total Assets as of December 31, 2017 $ 1,033,483 $ 16,298 $ 19 $ 121,326 $ (120,395 ) $ 1,050,731 |
MERGERS AND ACQUISTIONS (Tables
MERGERS AND ACQUISTIONS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Mergers And Acquistions | |
Schedule of Assets Acquired and Liabilities Assumed - Initial Fair Value Adjustment | The following table presents the assets acquired and liabilities assumed as of October 20, 2017 as recorded by the Company on the acquisition date and initial fair value adjustments. As Recorded by Fair Value As Recorded (Dollars in thousands, except per share data) Cornerstone Adjustments by the Company Assets Cash and cash equivalents $ 30,060 $ — $ 30,060 Investment securities 44,018 (358 )(a) 43,660 Loans 60,835 (734 )(b) 60,101 Premises and equipment 4,164 573 (c) 4,737 Intangible assets — 1,810 (d) 1,810 Bank owned life insurance 2,384 — 2,384 Other assets 3,082 (452 )(e) 2,630 Total assets $ 144,543 $ 839 $ 145,382 Liabilities Deposits: Noninterest-bearing $ 27,296 $ — $ 27,296 Interest-bearing 99,152 150 (f) 99,302 Total deposits 126,448 150 126,598 Securities sold under agreements to repurchase 849 — 849 Other liabilities 320 96 (g) 416 Total liabilities 127,617 246 127,863 Net identifiable assets acquired over liabilities assumed 16,926 593 17,519 Goodwill — 9,558 9,558 Net assets acquired over liabilities assumed $ 16,926 $ 10,151 $ 27,077 Consideration: First Community Corporation common shares issued 877,364 Purchase price per share of the Company’s common stock $ 22.05 $ 19,346 Cash exchanged for stock and fractional shares 7,731 Fair value of total consideration transferred $ 27,077 Explanation of fair value adjustments (a)—Adjustment reflects marking the securities portfolio to fair value as of the acquisition date. (b)—Adjustment reflects the fair value adjustments based on the Company’s evaluation of the acquired loan portfolio and excludes the allowance for loan losses recorded by Cornerstone. (c)—Adjustment reflects the fair value adjustments based on the Company’s evaluation of the acquired premises and equipment. (d)—Adjustment reflects the recording of the core deposit intangible on the acquired deposit accounts. (e)—Adjustment reflects the deferred tax adjustment related to fair value adjustments at 34%. (f)—Adjustment reflects the fair value adjustment on interest-bearing deposits. (g)—Adjustment reflects the fair value adjustment on post-retirement benefits. |
Schedule of Impact of Merger and Pro Forma Information | The following table presents certain pro forma information as if Cornerstone had been acquired on January 1, 2017. These results combine the historical results of Cornerstone 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 Pro Forma Pro Forma Three Months Nine Months (Dollars in thousands) Ended Ended Total revenues (net interest income plus noninterest income) $ 13,310 $ 34,660 Net income $ 1,618 $ 5,168 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Numerator (Included in basic and diluted earnings per share) | $ 2,833 | $ 1,893 | $ 8,543 | $ 5,313 |
Weighted average common shares outstanding for: | ||||
Basic earnings common per share (in shares) | 7,592,000 | 6,666,000 | 7,581,000 | 6,666,000 |
Dilutive securities: | ||||
Deferred compensation (in shares) | 61,000 | 54,000 | 65,000 | 54,000 |
Warrants - Treasury stock method (in shares) | 71,000 | 88,000 | 73,000 | 88,000 |
Diluted earnings per share (in shares) | 7,724,000 | 6,808,000 | 7,719,000 | 6,808,000 |
The average market price used in calculating assumed number of shares (in dollars per share) | $ 23.49 | $ 20.66 | $ 25.33 | $ 20.59 |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) - USD ($) $ in Thousands | Dec. 16, 2011 | Sep. 30, 2018 |
Junior Subordinated Debt [Member] | ||
Debt issued | $ 2,500 | |
Common Warrant [Member] | ||
Warrants issued (in shares) | 107,500 | |
Warrants outstanding | 71,810 |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 257,414 | $ 265,386 |
Gross Unrealized Gains | 484 | 1,992 |
Gross Unrealized Losses | 6,278 | 2,554 |
Fair Value | 251,620 | 264,824 |
US Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,823 | 1,529 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | 68 | 24 |
Fair Value | 11,755 | 1,505 |
Government sponsored enterprises [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,094 | 1,085 |
Gross Unrealized Gains | 24 | |
Gross Unrealized Losses | 5 | |
Fair Value | 1,089 | 1,109 |
Government Sponsored Enterprise mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 140,335 | 145,185 |
Gross Unrealized Gains | 44 | 285 |
Gross Unrealized Losses | 4,073 | 1,702 |
Fair Value | 136,306 | 143,768 |
Small Business Administration pools [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 52,670 | 61,544 |
Gross Unrealized Gains | 147 | 374 |
Gross Unrealized Losses | 891 | 330 |
Fair Value | 51,926 | 61,588 |
State and local government [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 51,473 | 55,111 |
Gross Unrealized Gains | 293 | 1,309 |
Gross Unrealized Losses | 1,241 | 416 |
Fair Value | 50,525 | 56,004 |
Corporate and other securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 19 | 932 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | 82 | |
Fair Value | $ 19 | $ 850 |
INVESTMENT SECURITIES (Details
INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | $ 16,218 | $ 17,012 |
Gross Unrealized Gains | 13 | 223 |
Gross Unrealized Losses | 178 | 15 |
Fair Value | 16,053 | 17,220 |
State and local government [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 16,218 | 17,012 |
Gross Unrealized Gains | 13 | 223 |
Gross Unrealized Losses | 178 | 15 |
Fair Value | $ 16,053 | $ 17,220 |
INVESTMENT SECURITIES (Detail_2
INVESTMENT SECURITIES (Details 3) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Available-for-sale securities | ||
Less Than 12 Months, Fair Value | $ 123,788 | $ 71,623 |
Less Than 12 Months, Unrealized Losses | 2,347 | 599 |
12 Months Or Longer, Fair Value | 83,170 | 77,667 |
12 Months Or Longer, Unrealized Losses | 3,931 | 1,955 |
Total Fair Value | 206,958 | 149,290 |
Total Unrealized Losses | 6,278 | 2,554 |
US Treasury Securities [Member] | ||
Available-for-sale securities | ||
Less Than 12 Months, Fair Value | 10,279 | |
Less Than 12 Months, Unrealized Losses | 22 | |
12 Months Or Longer, Fair Value | 1,475 | 1,505 |
12 Months Or Longer, Unrealized Losses | 46 | 24 |
Total Fair Value | 11,754 | 1,505 |
Total Unrealized Losses | 68 | 24 |
Government sponsored enterprises [Member] | ||
Available-for-sale securities | ||
Less Than 12 Months, Fair Value | 1,088 | |
Less Than 12 Months, Unrealized Losses | 5 | |
12 Months Or Longer, Fair Value | ||
12 Months Or Longer, Unrealized Losses | ||
Total Fair Value | 1,088 | |
Total Unrealized Losses | 5 | |
Government Sponsored Enterprise mortgage-backed securities [Member] | ||
Available-for-sale securities | ||
Less Than 12 Months, Fair Value | 68,482 | 50,377 |
Less Than 12 Months, Unrealized Losses | 1,536 | 420 |
12 Months Or Longer, Fair Value | 53,336 | 46,071 |
12 Months Or Longer, Unrealized Losses | 2,537 | 1,282 |
Total Fair Value | 121,818 | 96,448 |
Total Unrealized Losses | 4,073 | 1,702 |
Small Business Administration pools [Member] | ||
Available-for-sale securities | ||
Less Than 12 Months, Fair Value | 22,118 | 17,607 |
Less Than 12 Months, Unrealized Losses | 386 | 164 |
12 Months Or Longer, Fair Value | 15,594 | 16,311 |
12 Months Or Longer, Unrealized Losses | 505 | 166 |
Total Fair Value | 37,712 | 33,918 |
Total Unrealized Losses | 891 | 330 |
State and local government [Member] | ||
Available-for-sale securities | ||
Less Than 12 Months, Fair Value | 21,821 | 3,639 |
Less Than 12 Months, Unrealized Losses | 398 | 15 |
12 Months Or Longer, Fair Value | 12,765 | 12,990 |
12 Months Or Longer, Unrealized Losses | 843 | 401 |
Total Fair Value | 34,586 | 16,629 |
Total Unrealized Losses | 1,241 | 416 |
Held-to-maturity debt securities | ||
Less Than 12 Months, Fair Value | 13,622 | 2,899 |
Less Than 12 Months, Unrealized Losses | 178 | 15 |
12 Months Or Longer, Fair Value | ||
12 Months Or Longer, Unrealized Losses | ||
Total Fair Value | 13,622 | 2,899 |
Total Unrealized Losses | $ 178 | 15 |
Corporate and other securities [Member] | ||
Available-for-sale securities | ||
Less Than 12 Months, Fair Value | ||
Less Than 12 Months, Unrealized Losses | ||
12 Months Or Longer, Fair Value | 790 | |
12 Months Or Longer, Unrealized Losses | 82 | |
Total Fair Value | 790 | |
Total Unrealized Losses | $ 82 |
INVESTMENT SECURITIES (Detail_3
INVESTMENT SECURITIES (Details 4) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Available-for-sale, Amortized Cost | ||
Due in one year or less | $ 17,686 | |
Due after one year through five years | 150,575 | |
Due after five years through ten years | 80,047 | |
Due after ten years | 9,106 | |
Total | 257,414 | |
Available-for-sale, Fair Value | ||
Due in one year or less | 17,670 | |
Due after one year through five years | 147,607 | |
Due after five years through ten years | 77,462 | |
Due after ten years | 8,881 | |
Total | 251,620 | |
Held To Maturity Securities, Amortized Cost | ||
Due in one year or less | ||
Due after one year through five years | 9,187 | |
Due after five years through ten years | 7,031 | |
Due after ten years | ||
Total | 16,218 | $ 17,012 |
Held To Maturity Securities, Fair value | ||
Due in one year or less | ||
Due after one year through five years | 9,129 | |
Due after five years through ten years | 6,924 | |
Due after ten years | ||
Total | $ 16,053 | $ 17,220 |
INVESTMENT SECURITIES (Detail_4
INVESTMENT SECURITIES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Proceeds from sale of investment securities available-for-sale | $ 0 | $ 2,300 | $ 19,946 | $ 12,867 | |
Gross realized gains | 124 | 241 | 371 | ||
Gross realized losses | 247 | 21 | |||
Amortized Cost | 257,414 | 257,414 | |||
Fair Value | 251,620 | 251,620 | |||
FHLB Stock | 956 | 956 | $ 1,600 | ||
Gain (loss) on sale of securities | $ 124 | (10) | $ 350 | ||
Held-to-maturity Securities [Member] | |||||
Gain (loss) on sale of securities | 4 | ||||
Mutual Funds [Member] | |||||
Fair Value | 9 | 9 | 790 | ||
Foreign Corporate Debt Securities [Member] | |||||
Fair Value | 10 | 10 | 60 | ||
Corporate Bond Securities [Member] | |||||
Fair Value | $ 1,000 | $ 1,000 | $ 1,000 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 696,515 | $ 646,805 | $ 568,488 |
Commercial Financial and Agricultural Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 50,940 | 51,040 | 44,917 |
Real Estate Construction Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 56,568 | 45,401 | 42,693 |
Real estate Mortgage-residential [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 50,914 | 46,901 | 44,567 |
Real estate Mortgage-commercial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 498,650 | 460,276 | 398,777 |
Consumer Home Equity Line of Credit [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 29,933 | 32,451 | 29,984 |
Consumer Other Financing Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 9,510 | $ 10,736 | $ 7,550 |
LOANS (Details 2)
LOANS (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Activity in the allowance for loan losses | |||||
Balance at the beginning of the period | $ 6,087 | $ 5,490 | $ 5,797 | $ 5,214 | $ 5,214 |
Charge-offs | (24) | (52) | (110) | (120) | (173) |
Recoveries | 128 | 52 | 273 | 202 | 226 |
Provisions | 21 | 166 | 252 | 360 | 530 |
Balance at end of the period | 6,212 | 5,656 | 6,212 | 5,656 | 5,797 |
Allowance for loan losses | |||||
Individually evaluated for impairment | 4 | 31 | 4 | 31 | 27 |
Collectively evaluated for impairment | 6,208 | 5,625 | 6,208 | 5,625 | 5,770 |
Loans receivable: | |||||
Ending balance-total | 696,515 | 568,488 | 696,515 | 568,488 | 646,805 |
Individually evaluated for impairment | 4,734 | 4,629 | 4,734 | 4,629 | 5,155 |
Collectively evaluated for impairment | 691,781 | 563,859 | 691,781 | 563,859 | 641,650 |
Commercial Financial and Agricultural Loans [Member] | |||||
Activity in the allowance for loan losses | |||||
Balance at the beginning of the period | 272 | 169 | 221 | 145 | 145 |
Charge-offs | (5) | (5) | (5) | ||
Recoveries | 11 | 14 | 3 | 5 | |
Provisions | (94) | 20 | (46) | 41 | 76 |
Balance at end of the period | 189 | 184 | 189 | 184 | 221 |
Allowance for loan losses | |||||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 189 | 184 | 189 | 184 | 221 |
Loans receivable: | |||||
Ending balance-total | 50,940 | 44,917 | 50,940 | 44,917 | 51,040 |
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 50,940 | 44,917 | 50,940 | 44,917 | 51,040 |
Real Estate Construction Loans [Member] | |||||
Activity in the allowance for loan losses | |||||
Balance at the beginning of the period | 112 | 76 | 101 | 104 | 104 |
Charge-offs | |||||
Recoveries | |||||
Provisions | (7) | 18 | 4 | (10) | (3) |
Balance at end of the period | 105 | 94 | 105 | 94 | 101 |
Allowance for loan losses | |||||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 105 | 94 | 105 | 94 | 101 |
Loans receivable: | |||||
Ending balance-total | 56,568 | 42,693 | 56,568 | 42,693 | 45,401 |
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 56,568 | 42,693 | 56,568 | 42,693 | 45,401 |
Real estate Mortgage-residential [Member] | |||||
Activity in the allowance for loan losses | |||||
Balance at the beginning of the period | 672 | 353 | 461 | 438 | 438 |
Charge-offs | (1) | ||||
Recoveries | 1 | 2 | 3 | 4 | 5 |
Provisions | 271 | (28) | 481 | (115) | 18 |
Balance at end of the period | 944 | 327 | 944 | 327 | 461 |
Allowance for loan losses | |||||
Individually evaluated for impairment | 1 | 2 | 1 | 2 | 2 |
Collectively evaluated for impairment | 943 | 325 | 943 | 325 | 459 |
Loans receivable: | |||||
Ending balance-total | 50,914 | 44,567 | 50,914 | 44,567 | 46,901 |
Individually evaluated for impairment | 237 | 422 | 237 | 422 | 413 |
Collectively evaluated for impairment | 50,677 | 44,145 | 50,677 | 44,145 | 46,488 |
Real estate Mortgage-commercial [Member] | |||||
Activity in the allowance for loan losses | |||||
Balance at the beginning of the period | 2,618 | 2,845 | 3,077 | 2,793 | 2,793 |
Charge-offs | (6) | (30) | (30) | ||
Recoveries | 105 | 45 | 219 | 158 | 172 |
Provisions | 185 | 32 | (388) | (5) | 142 |
Balance at end of the period | 2,908 | 2,916 | 2,908 | 2,916 | 3,077 |
Allowance for loan losses | |||||
Individually evaluated for impairment | 3 | 29 | 3 | 29 | 25 |
Collectively evaluated for impairment | 2,905 | 2,887 | 2,905 | 2,887 | 3,052 |
Loans receivable: | |||||
Ending balance-total | 498,650 | 398,777 | 498,650 | 398,777 | 460,276 |
Individually evaluated for impairment | 4,466 | 4,173 | 4,466 | 4,173 | 4,742 |
Collectively evaluated for impairment | 494,184 | 394,604 | 494,184 | 394,604 | 455,534 |
Consumer Home Equity Line of Credit [Member] | |||||
Activity in the allowance for loan losses | |||||
Balance at the beginning of the period | 1,029 | 196 | 308 | 153 | 153 |
Charge-offs | (7) | ||||
Recoveries | 1 | 6 | 24 | 24 | |
Provisions | 16 | 62 | 732 | 81 | 138 |
Balance at end of the period | 1,046 | 258 | 1,046 | 258 | 308 |
Allowance for loan losses | |||||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 1,046 | 258 | 1,046 | 258 | 308 |
Loans receivable: | |||||
Ending balance-total | 29,933 | 29,984 | 29,933 | 29,984 | 32,451 |
Individually evaluated for impairment | 31 | 34 | 31 | 34 | |
Collectively evaluated for impairment | 29,902 | 29,950 | 29,902 | 29,950 | 32,451 |
Consumer Other Financing Receivable [Member] | |||||
Activity in the allowance for loan losses | |||||
Balance at the beginning of the period | 113 | 24 | 35 | 127 | 127 |
Charge-offs | (24) | (41) | (109) | (85) | (131) |
Recoveries | 10 | 5 | 31 | 13 | 20 |
Provisions | (34) | 29 | 108 | (38) | 19 |
Balance at end of the period | 65 | 17 | 65 | 17 | 35 |
Allowance for loan losses | |||||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 65 | 17 | 65 | 17 | 35 |
Loans receivable: | |||||
Ending balance-total | 9,510 | 7,550 | 9,510 | 7,550 | 10,736 |
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 9,510 | 7,550 | 9,510 | 7,550 | 10,736 |
Unallocated Financing Receivables [Member] | |||||
Activity in the allowance for loan losses | |||||
Balance at the beginning of the period | 1,271 | 1,827 | 1,594 | 1,454 | 1,454 |
Charge-offs | |||||
Recoveries | |||||
Provisions | (316) | 33 | (639) | 406 | 140 |
Balance at end of the period | 955 | 1,860 | 955 | 1,860 | 1,594 |
Allowance for loan losses | |||||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 955 | 1,860 | 955 | 1,860 | 1,594 |
Loans receivable: | |||||
Ending balance-total | |||||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment |
LOANS (Details 3)
LOANS (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |||||
Balance, beginning of year | $ 5,938 | $ 6,103 | $ 6,103 | ||
New Loans | 2,406 | 339 | |||
Less loan repayments | 1,999 | 925 | |||
Balance, end of year | $ 6,345 | $ 5,517 | 6,345 | 5,517 | 5,938 |
Loans considered impaired for which there is a related allowance for loan loss: | |||||
Total loans considered impaired at year end | 4,734 | 4,629 | 4,734 | 4,629 | 5,155 |
Outstanding loan balance | 1,143 | 1,143 | 1,669 | ||
Related allowance | 4 | 31 | 4 | 31 | 27 |
Loans considered impaired and previously written down to fair value | 3,591 | 3,591 | 3,485 | ||
Average impaired loans | 4,997 | 4,636 | 5,160 | 4,675 | 5,513 |
Amount of interest earned during period of impairment | $ 97 | $ 161 | $ 297 | $ 241 | $ 132 |
LOANS (Details 4)
LOANS (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
With no allowance recorded: | |||||
Recorded Investment | $ 3,591 | $ 3,591 | $ 3,485 | ||
With an allowance recorded: | |||||
Recorded Investment | 1,143 | 1,143 | 1,669 | ||
Related allowance | 4 | $ 31 | 4 | $ 31 | 27 |
Total: | |||||
Recorded Investment | 4,734 | 4,629 | 4,734 | 4,629 | 5,155 |
Unpaid Principal Balance | 7,598 | 7,864 | 7,598 | 7,864 | 8,706 |
Average Recorded Investment | 4,997 | 4,636 | 5,160 | 4,675 | 5,513 |
Interest Income Recognized | 97 | 161 | 297 | 241 | 132 |
Commercial Financial and Agricultural Loans [Member] | |||||
With no allowance recorded: | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Average Recorded Investment | |||||
Interest Income Recognized | |||||
With an allowance recorded: | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Related allowance | |||||
Average Recorded Investment | |||||
Interest Income Recognized | |||||
Total: | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Average Recorded Investment | |||||
Interest Income Recognized | |||||
Real Estate Construction Loans [Member] | |||||
With no allowance recorded: | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Average Recorded Investment | |||||
Interest Income Recognized | |||||
With an allowance recorded: | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Related allowance | |||||
Average Recorded Investment | |||||
Interest Income Recognized | |||||
Total: | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Average Recorded Investment | |||||
Interest Income Recognized | |||||
Real estate Mortgage-residential [Member] | |||||
With no allowance recorded: | |||||
Recorded Investment | 198 | 379 | 198 | 379 | 371 |
Unpaid Principal Balance | 266 | 443 | 266 | 443 | 437 |
Average Recorded Investment | 197 | 378 | 202 | 384 | 399 |
Interest Income Recognized | 2 | 11 | 16 | 11 | |
With an allowance recorded: | |||||
Recorded Investment | 39 | 43 | 39 | 43 | 42 |
Unpaid Principal Balance | 39 | 43 | 39 | 43 | 42 |
Related allowance | 1 | 2 | 1 | 2 | 2 |
Average Recorded Investment | 39 | 43 | 41 | 43 | 43 |
Interest Income Recognized | 1 | 1 | 2 | 2 | 2 |
Total: | |||||
Recorded Investment | 237 | 422 | 237 | 422 | 413 |
Unpaid Principal Balance | 305 | 486 | 305 | 486 | 479 |
Average Recorded Investment | 236 | 421 | 243 | 427 | 442 |
Interest Income Recognized | 3 | 12 | 18 | 13 | 2 |
Real estate Mortgage-commercial [Member] | |||||
With no allowance recorded: | |||||
Recorded Investment | 3,363 | 2,501 | 3,363 | 2,501 | 3,087 |
Unpaid Principal Balance | 6,158 | 5,051 | 6,158 | 5,051 | 5,966 |
Average Recorded Investment | 3,627 | 2,488 | 3,753 | 2,536 | 3,420 |
Interest Income Recognized | 75 | 118 | 219 | 117 | 13 |
With an allowance recorded: | |||||
Recorded Investment | 1,103 | 1,672 | 1,103 | 1,672 | 1,655 |
Unpaid Principal Balance | 1,103 | 2,293 | 1,103 | 2,293 | 2,261 |
Related allowance | 3 | 29 | 3 | 29 | 25 |
Average Recorded Investment | 1,103 | 1,671 | 1,129 | 1,678 | 1,652 |
Interest Income Recognized | 19 | 31 | 59 | 111 | 117 |
Total: | |||||
Recorded Investment | 4,466 | 4,173 | 4,466 | 4,173 | 4,742 |
Unpaid Principal Balance | 7,261 | 7,344 | 7,261 | 7,344 | 8,227 |
Average Recorded Investment | 4,730 | 4,159 | 4,882 | 4,214 | 5,072 |
Interest Income Recognized | 94 | 149 | 278 | 228 | 130 |
Consumer Home Equity Line of Credit [Member] | |||||
With no allowance recorded: | |||||
Recorded Investment | 31 | 34 | 31 | 34 | |
Unpaid Principal Balance | 32 | 34 | 32 | 34 | |
Average Recorded Investment | 31 | 56 | 35 | 34 | |
Interest Income Recognized | 1 | ||||
With an allowance recorded: | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Related allowance | |||||
Average Recorded Investment | |||||
Interest Income Recognized | |||||
Total: | |||||
Recorded Investment | 31 | 34 | 31 | 34 | |
Unpaid Principal Balance | 32 | 34 | 32 | 34 | |
Average Recorded Investment | 31 | 56 | 35 | 34 | |
Interest Income Recognized | 1 | ||||
Consumer Other Financing Receivable [Member] | |||||
With no allowance recorded: | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Average Recorded Investment | |||||
Interest Income Recognized | |||||
With an allowance recorded: | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Related allowance | |||||
Average Recorded Investment | |||||
Interest Income Recognized | |||||
Total: | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Average Recorded Investment | |||||
Interest Income Recognized |
LOANS (Details 5)
LOANS (Details 5) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Loans | $ 696,515 | $ 646,805 | $ 568,488 |
Commercial Financial and Agricultural Loans [Member] | |||
Loans | 50,940 | 51,040 | 44,917 |
Real Estate Construction Loans [Member] | |||
Loans | 56,568 | 45,401 | 42,693 |
Real estate Mortgage-residential [Member] | |||
Loans | 50,914 | 46,901 | 44,567 |
Real estate Mortgage-commercial [Member] | |||
Loans | 498,650 | 460,276 | 398,777 |
Consumer Home Equity Line of Credit [Member] | |||
Loans | 29,933 | 32,451 | 29,984 |
Consumer Other Financing Receivable [Member] | |||
Loans | 9,510 | 10,736 | $ 7,550 |
Pass [Member] | |||
Loans | 683,988 | 629,304 | |
Pass [Member] | Commercial Financial and Agricultural Loans [Member] | |||
Loans | 50,722 | 50,680 | |
Pass [Member] | Real Estate Construction Loans [Member] | |||
Loans | 56,568 | 45,401 | |
Pass [Member] | Real estate Mortgage-residential [Member] | |||
Loans | 49,359 | 45,343 | |
Pass [Member] | Real estate Mortgage-commercial [Member] | |||
Loans | 489,712 | 446,531 | |
Pass [Member] | Consumer Home Equity Line of Credit [Member] | |||
Loans | 28,120 | 30,618 | |
Pass [Member] | Consumer Other Financing Receivable [Member] | |||
Loans | 9,507 | 10,731 | |
Special Mention [Member] | |||
Loans | 6,716 | 10,121 | |
Special Mention [Member] | Commercial Financial and Agricultural Loans [Member] | |||
Loans | 49 | 179 | |
Special Mention [Member] | Real Estate Construction Loans [Member] | |||
Loans | |||
Special Mention [Member] | Real estate Mortgage-residential [Member] | |||
Loans | 646 | 720 | |
Special Mention [Member] | Real estate Mortgage-commercial [Member] | |||
Loans | 4,556 | 7,698 | |
Special Mention [Member] | Consumer Home Equity Line of Credit [Member] | |||
Loans | 1,465 | 1,524 | |
Special Mention [Member] | Consumer Other Financing Receivable [Member] | |||
Loans | |||
Substandard [Member] | |||
Loans | 5,811 | 7,380 | |
Substandard [Member] | Commercial Financial and Agricultural Loans [Member] | |||
Loans | 169 | 181 | |
Substandard [Member] | Real Estate Construction Loans [Member] | |||
Loans | |||
Substandard [Member] | Real estate Mortgage-residential [Member] | |||
Loans | 909 | 838 | |
Substandard [Member] | Real estate Mortgage-commercial [Member] | |||
Loans | 4,382 | 6,047 | |
Substandard [Member] | Consumer Home Equity Line of Credit [Member] | |||
Loans | 348 | 309 | |
Substandard [Member] | Consumer Other Financing Receivable [Member] | |||
Loans | 3 | 5 | |
Doubtful [Member] | |||
Loans | |||
Doubtful [Member] | Commercial Financial and Agricultural Loans [Member] | |||
Loans | |||
Doubtful [Member] | Real Estate Construction Loans [Member] | |||
Loans | |||
Doubtful [Member] | Real estate Mortgage-residential [Member] | |||
Loans | |||
Doubtful [Member] | Real estate Mortgage-commercial [Member] | |||
Loans | |||
Doubtful [Member] | Consumer Home Equity Line of Credit [Member] | |||
Loans | |||
Doubtful [Member] | Consumer Other Financing Receivable [Member] | |||
Loans |
LOANS (Details 6)
LOANS (Details 6) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure Loans Details 9Abstract | ||||
Accretable yield, beginning of period | $ (2) | $ 50 | $ 22 | $ 34 |
Accretion | (8) | (29) | (32) | (57) |
Reclassification of nonaccretable difference due to improvement in expected cash flows | 44 | |||
Accretable yield, end of period | $ (10) | $ 21 | $ (10) | $ 21 |
LOANS (Details 7)
LOANS (Details 7) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | $ 1,150 | $ 1,231 | |
60-89 Days Past Due | 1,462 | 907 | |
Greater than 90 Days and Accruing | 29 | 32 | |
Nonaccrual | 2,904 | 3,342 | |
Total Past Due | 5,545 | 5,512 | |
Current | 690,970 | 641,293 | |
Total Loans | 696,515 | 646,805 | $ 568,488 |
Commercial Financial and Agricultural Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 5 | 26 | |
60-89 Days Past Due | |||
Greater than 90 Days and Accruing | 32 | ||
Nonaccrual | |||
Total Past Due | 5 | 58 | |
Current | 50,935 | 50,982 | |
Total Loans | 50,940 | 51,040 | 44,917 |
Real Estate Construction Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 24 | ||
60-89 Days Past Due | |||
Greater than 90 Days and Accruing | |||
Nonaccrual | |||
Total Past Due | 24 | ||
Current | 56,544 | 45,401 | |
Total Loans | 56,568 | 45,401 | 42,693 |
Real estate Mortgage-residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 42 | 109 | |
60-89 Days Past Due | 121 | 38 | |
Greater than 90 Days and Accruing | |||
Nonaccrual | 197 | 371 | |
Total Past Due | 360 | 518 | |
Current | 50,554 | 46,383 | |
Total Loans | 50,914 | 46,901 | 44,567 |
Real estate Mortgage-commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 901 | 290 | |
60-89 Days Past Due | 1,339 | 828 | |
Greater than 90 Days and Accruing | 29 | ||
Nonaccrual | 2,676 | 2,971 | |
Total Past Due | 4,945 | 4,089 | |
Current | 493,705 | 456,187 | |
Total Loans | 498,650 | 460,276 | 398,777 |
Consumer Home Equity Line of Credit [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 177 | 805 | |
60-89 Days Past Due | 36 | ||
Greater than 90 Days and Accruing | |||
Nonaccrual | 31 | ||
Total Past Due | 208 | 841 | |
Current | 29,725 | 31,610 | |
Total Loans | 29,933 | 32,451 | 29,984 |
Consumer Other Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 1 | 1 | |
60-89 Days Past Due | 2 | 5 | |
Greater than 90 Days and Accruing | |||
Nonaccrual | |||
Total Past Due | 3 | 6 | |
Current | 9,507 | 10,730 | |
Total Loans | $ 9,510 | $ 10,736 | $ 7,550 |
LOANS (Details Narrative)
LOANS (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Non-accrual loans | $ 2,904 | $ 3,342 |
Troubled debt restructurings | 1,800 | 1,800 |
TDRs in non-accrual status | 1,200 | 1,200 |
Loans greater than ninety days delinquent and still accruing interest | $ 29 | $ 32 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financial Assets: | ||
Held-to-maturity securities | $ 16,053 | $ 17,220 |
Available-for-sale securities | 251,620 | 264,824 |
Other investments, at cost | 2,125 | 2,559 |
Financial liabilities: | ||
Non-interest bearing demand | 254,270 | 226,546 |
Interest bearing demand deposits and money market accounts | 380,036 | 364,358 |
Savings | 107,410 | 104,756 |
Time deposits | 180,006 | 192,663 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets: | ||
Cash and short term investments | 36,940 | 30,591 |
Held-to-maturity securities | ||
Available-for-sale securities | 9 | 790 |
Other investments, at cost | ||
Loans held for sale | ||
Net loans receivable | ||
Accrued interest | 3,513 | 3,489 |
Financial liabilities: | ||
Non-interest bearing demand | ||
Interest bearing demand deposits and money market accounts | ||
Savings | ||
Time deposits | ||
Total deposits | ||
Federal Home Loan Bank Advances | ||
Short term borrowings | ||
Junior subordinated debentures | ||
Accrued interest payable | 714 | 562 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Cash and short term investments | ||
Held-to-maturity securities | 16,053 | 17,220 |
Available-for-sale securities | 251,611 | 264,034 |
Other investments, at cost | ||
Loans held for sale | 5,528 | 5,093 |
Net loans receivable | 634,361 | |
Accrued interest | ||
Financial liabilities: | ||
Non-interest bearing demand | 254,270 | 226,546 |
Interest bearing demand deposits and money market accounts | 380,036 | 364,358 |
Savings | 107,410 | 104,756 |
Time deposits | 180,183 | 192,186 |
Total deposits | 921,899 | 887,846 |
Federal Home Loan Bank Advances | 4,236 | 14,248 |
Short term borrowings | 33,226 | 19,270 |
Junior subordinated debentures | 12,564 | 15,025 |
Accrued interest payable | ||
Fair Value, Inputs, Level 3 [Member] | ||
Financial Assets: | ||
Cash and short term investments | ||
Held-to-maturity securities | ||
Available-for-sale securities | ||
Other investments, at cost | 2,125 | 2,559 |
Loans held for sale | ||
Net loans receivable | 678,488 | 5,128 |
Accrued interest | ||
Financial liabilities: | ||
Non-interest bearing demand | ||
Interest bearing demand deposits and money market accounts | ||
Savings | ||
Time deposits | ||
Total deposits | ||
Federal Home Loan Bank Advances | ||
Short term borrowings | ||
Junior subordinated debentures | ||
Accrued interest payable | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Financial Assets: | ||
Cash and short term investments | 36,940 | 30,591 |
Held-to-maturity securities | 16,218 | 17,012 |
Available-for-sale securities | 251,620 | 264,824 |
Other investments, at cost | 2,125 | 2,559 |
Loans held for sale | 5,528 | 5,093 |
Net loans receivable | 690,303 | 641,008 |
Accrued interest | 3,513 | 3,489 |
Financial liabilities: | ||
Non-interest bearing demand | 254,270 | 226,546 |
Interest bearing demand deposits and money market accounts | 380,036 | 364,358 |
Savings | 107,410 | 104,756 |
Time deposits | 180,006 | 192,663 |
Total deposits | 921,722 | 888,323 |
Federal Home Loan Bank Advances | 4,236 | 14,250 |
Short term borrowings | 33,226 | 19,270 |
Junior subordinated debentures | 14,964 | 14,964 |
Accrued interest payable | 714 | 562 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Financial Assets: | ||
Cash and short term investments | 36,940 | 30,591 |
Held-to-maturity securities | 16,218 | 17,220 |
Available-for-sale securities | 251,620 | 264,824 |
Other investments, at cost | 2,125 | 2,559 |
Loans held for sale | 5,528 | 5,093 |
Net loans receivable | 678,488 | 639,489 |
Accrued interest | 3,513 | 3,489 |
Financial liabilities: | ||
Non-interest bearing demand | 254,270 | 226,546 |
Interest bearing demand deposits and money market accounts | 380,036 | 364,358 |
Savings | 107,410 | 104,756 |
Time deposits | 180,183 | 192,186 |
Total deposits | 921,899 | 887,846 |
Federal Home Loan Bank Advances | 4,236 | 14,248 |
Short term borrowings | 33,226 | 19,270 |
Junior subordinated debentures | 12,564 | 15,025 |
Accrued interest payable | $ 714 | $ 562 |
FAIR VALUE MEASUREMENT (Detai_2
FAIR VALUE MEASUREMENT (Details 2) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 251,620 | $ 264,824 |
Loans held for sale | 5,528 | 5,093 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 251,620 | 264,824 |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 11,755 | 1,505 |
Government sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,089 | 1,109 |
Small Business Administration pools [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 51,926 | 61,588 |
State and local government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 50,525 | 56,004 |
Corporate and other securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 19 | 850 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 251,620 | 264,824 |
Loans held for sale | 5,528 | 5,093 |
Total Available for sale securities and Loans held for Sale | 257,148 | 269,917 |
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 11,755 | 1,505 |
Fair Value, Measurements, Recurring [Member] | Government sponsored enterprises [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,089 | 1,109 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 136,306 | 143,768 |
Fair Value, Measurements, Recurring [Member] | Small Business Administration pools [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 51,926 | 61,588 |
Fair Value, Measurements, Recurring [Member] | State and local government [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 50,525 | 56,004 |
Fair Value, Measurements, Recurring [Member] | Corporate and other securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 19 | 850 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 9 | 790 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 9 | 790 |
Loans held for sale | ||
Total Available for sale securities and Loans held for Sale | 9 | 790 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate and other securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 9 | 790 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 251,611 | 264,034 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 251,611 | 264,034 |
Loans held for sale | 5,528 | 5,093 |
Total Available for sale securities and Loans held for Sale | 257,139 | 269,127 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 11,755 | 1,505 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Government sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,089 | 1,109 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 136,306 | 143,768 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Small Business Administration pools [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 51,926 | 61,588 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | State and local government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 50,525 | 56,004 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate and other securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 10 | 60 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | ||
Loans held for sale | ||
Total Available for sale securities and Loans held for Sale | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate and other securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale |
FAIR VALUE MEASUREMENT (Detai_3
FAIR VALUE MEASUREMENT (Details 3) - Corporate Preferred Stock [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Reconciliation of changes in level 3 financial instruments | |
Balance at the beginning of the period | $ 1,000 |
Total gains or losses (realized/unrealized) | |
Included in earnings | |
Included in other comprehensive income | |
Purchases, issuances, and settlements | |
Transfers in and/or out of Level 3 | (1,000) |
Balance at the end of the period |
FAIR VALUE MEASUREMENT (Detai_4
FAIR VALUE MEASUREMENT (Details 4) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | $ 4,734 | $ 5,155 | $ 4,629 |
Total other real estate owned | 1,921 | 1,934 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 4,730 | 5,128 | |
Total other real estate owned | 1,921 | 1,934 | |
Total | 6,651 | 7,062 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 4,730 | 5,128 | |
Total other real estate owned | 1,921 | 1,934 | |
Total | 6,651 | 7,062 | |
Commercial and Industrial Loans Receivable [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | |||
Commercial and Industrial Loans Receivable [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | |||
Real Estate Construction Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other real estate owned | 828 | 828 | |
Real Estate Construction Loans [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other real estate owned | 828 | 828 | |
Real estate Mortgage-residential [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 236 | 411 | |
Total other real estate owned | 130 | 47 | |
Real estate Mortgage-residential [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 236 | 411 | |
Total other real estate owned | 130 | 47 | |
Real estate Mortgage-commercial [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 4,463 | 4,717 | |
Total other real estate owned | 963 | 1,059 | |
Real estate Mortgage-commercial [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 4,463 | 4,717 | |
Total other real estate owned | 963 | 1,059 | |
Consumer Home Equity Line of Credit [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 31 | ||
Consumer Home Equity Line of Credit [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 31 | ||
Real estate Mortgage-commercial [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | |||
Real estate Mortgage-commercial [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans |
FAIR VALUE MEASUREMENT (Detai_5
FAIR VALUE MEASUREMENT (Details 5) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | |
OREO | $ 1,921 | $ 1,934 | |
Total impaired loans | 4,734 | 5,155 | $ 4,629 |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Appraisal Value Comparison Sales Other Estimates Valuation Technique [Member] | |||
OREO | $ 1,921 | $ 1,934 | |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Appraisal Value Comparison Sales Other Estimates Valuation Technique [Member] | Measurement Input, Discount Rate [Member] | |||
Rate (as a percent) | 6.00% | 6.00% | |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | Appraisal Value Comparison Sales Other Estimates Valuation Technique [Member] | Measurement Input, Discount Rate [Member] | |||
Rate (as a percent) | 16.00% | 16.00% | |
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Appraisal Value Discounted Cash Flows Valuation Technique [Member] | |||
Total impaired loans | $ 4,730 | $ 5,128 | |
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Appraisal Value Discounted Cash Flows Valuation Technique [Member] | Measurement Input, Discount Rate [Member] | |||
Rate (as a percent) | 6.00% | 6.00% | |
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | Appraisal Value Discounted Cash Flows Valuation Technique [Member] | Measurement Input, Discount Rate [Member] | |||
Rate (as a percent) | 16.00% | 16.00% |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Disclosure Deposits Details Abstract | ||
Non-interest bearing demand deposits | $ 254,270 | $ 226,546 |
NOW and money market accounts | 380,036 | 364,358 |
Savings | 107,410 | 104,756 |
Time deposits | 180,006 | 192,663 |
Total deposits | 921,722 | 888,323 |
Time deposits FDIC insurance limit of $250 thousand | $ 27,500 | $ 38,400 |
REPORTABLE SEGMENTS (Details)
REPORTABLE SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Dividend and Interest Income | $ 9,985 | $ 7,921 | $ 29,135 | $ 23,416 | |
Interest expense | 1,102 | 694 | 2,779 | 2,080 | |
Net interest income | 8,883 | 7,227 | 26,356 | 21,336 | |
Provision for loan losses | 21 | 166 | 252 | 360 | $ 530 |
Noninterest income | 2,842 | 2,422 | 8,384 | 7,045 | |
Noninterest expense | 8,134 | 6,894 | 23,953 | 20,984 | |
Net income before taxes | 3,570 | 2,589 | 10,535 | 7,037 | |
Income tax benefit | 737 | 696 | 1,992 | 1,724 | |
Net income (loss) | 2,833 | 1,893 | 8,543 | 5,313 | |
Total assets | 1,091,142 | 1,091,142 | 1,050,731 | ||
Commercial And Retail Banking [Member] | |||||
Dividend and Interest Income | 9,772 | 7,763 | 28,513 | 23,072 | |
Interest expense | 915 | 547 | 2,251 | 1,660 | |
Net interest income | 8,857 | 7,216 | 26,262 | 21,412 | |
Provision for loan losses | 21 | 166 | 252 | 360 | |
Noninterest income | 1,260 | 1,053 | 4,051 | 3,097 | |
Noninterest expense | 6,796 | 5,780 | 20,105 | 17,699 | |
Net income before taxes | 3,300 | 2,323 | 9,956 | 6,450 | |
Income tax benefit | 791 | 772 | 2,173 | 2,037 | |
Net income (loss) | 2,509 | 1,551 | 7,783 | 4,413 | |
Total assets | 1,075,604 | 1,075,604 | 1,033,483 | ||
Mortgage Banking [Member] | |||||
Dividend and Interest Income | 213 | 153 | 622 | 331 | |
Interest expense | |||||
Net interest income | 213 | 153 | 622 | 331 | |
Provision for loan losses | |||||
Noninterest income | 1,159 | 1,032 | 3,126 | 2,950 | |
Noninterest expense | 937 | 769 | 2,515 | 2,181 | |
Net income before taxes | 435 | 416 | 1,233 | 1,100 | |
Income tax benefit | |||||
Net income (loss) | 435 | 416 | 1,233 | 1,100 | |
Total assets | 14,580 | 14,580 | 16,298 | ||
Investment Advisory And Non Deposit [Member] | |||||
Dividend and Interest Income | |||||
Interest expense | |||||
Net interest income | |||||
Provision for loan losses | |||||
Noninterest income | 423 | 337 | 1,207 | 908 | |
Noninterest expense | 324 | 262 | 1,047 | 839 | |
Net income before taxes | 99 | 75 | 160 | 69 | |
Income tax benefit | |||||
Net income (loss) | 99 | 75 | 160 | 69 | |
Total assets | 13 | 13 | 19 | ||
Corporate [Member] | |||||
Dividend and Interest Income | 947 | 747 | 2,779 | 2,191 | |
Interest expense | 187 | 147 | 528 | 420 | |
Net interest income | 760 | 600 | 2,251 | 1,771 | |
Provision for loan losses | |||||
Noninterest income | 90 | ||||
Noninterest expense | 77 | 83 | 286 | 265 | |
Net income before taxes | 683 | 517 | 1,965 | 1,596 | |
Income tax benefit | (54) | (76) | (181) | (313) | |
Net income (loss) | 737 | 593 | 2,146 | 1,909 | |
Total assets | 127,929 | 127,929 | 121,326 | ||
Eliminations [Member] | |||||
Dividend and Interest Income | (947) | (742) | (2,779) | (2,178) | |
Interest expense | |||||
Net interest income | (947) | (742) | (2,779) | (2,178) | |
Provision for loan losses | |||||
Noninterest income | |||||
Noninterest expense | |||||
Net income before taxes | (947) | (742) | (2,779) | (2,178) | |
Income tax benefit | |||||
Net income (loss) | (947) | $ (742) | (2,779) | $ (2,178) | |
Total assets | $ (126,984) | $ (126,984) | $ (120,395) |
MERGERS AND ACQUISITIONS (Detai
MERGERS AND ACQUISITIONS (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 20, 2017 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | |
Assets | |||||
Loans | $ 696,515 | $ 646,805 | $ 568,488 | ||
Premises and equipment | 34,405 | 36,103 | |||
Intangible assets | 2,142 | 2,569 | |||
Bank owned life insurance | 25,579 | 25,413 | |||
Total assets | 1,091,142 | 1,050,731 | |||
Deposits: | |||||
Non-interest bearing demand | 254,270 | 226,546 | |||
Interest bearing | 667,452 | 661,777 | |||
Total deposits | 921,722 | 888,323 | |||
Securities sold under agreements to repurchase | 33,226 | 19,270 | |||
Other liabilities | 8,808 | 8,261 | |||
Total liabilities | 982,956 | 945,068 | |||
Goodwill | $ 14,637 | $ 14,589 | |||
As Recorded by Cornerstone [Member] | |||||
Assets | |||||
Cash and cash equivalents | $ 30,060 | ||||
Investment securities | 44,018 | ||||
Loans | 60,835 | ||||
Premises and equipment | 4,164 | ||||
Intangible assets | |||||
Bank owned life insurance | 2,384 | ||||
Other assets | 3,082 | ||||
Total assets | 144,543 | ||||
Deposits: | |||||
Non-interest bearing demand | 27,296 | ||||
Interest bearing | 99,152 | ||||
Total deposits | 126,448 | ||||
Securities sold under agreements to repurchase | 849 | ||||
Other liabilities | 320 | ||||
Total liabilities | 127,617 | ||||
Net identifiable assets acquired over liabilities assumed | 16,926 | ||||
Goodwill | |||||
Net assets acquired over liabilities assumed | $ 16,926 | ||||
Consideration: | |||||
First Community Corporation common shares issued | 877,364 | ||||
Purchase price per share of the Company's common stock | $ 22.05 | ||||
Equity Interests Issued or Issuable | $ 19,346 | ||||
Cash exchanged for stock and fractional shares | 7,731 | ||||
Fair value of total consideration transferred | 27,077 | ||||
Fair Value Adjustments [Member] | |||||
Assets | |||||
Cash and cash equivalents | |||||
Investment securities | [1] | (358) | |||
Loans | [2] | (734) | |||
Premises and equipment | [3] | 573 | |||
Intangible assets | [4] | 1,810 | |||
Bank owned life insurance | |||||
Other assets | [5] | (452) | |||
Total assets | 839 | ||||
Deposits: | |||||
Non-interest bearing demand | |||||
Interest bearing | [6] | 150 | |||
Total deposits | 150 | ||||
Securities sold under agreements to repurchase | |||||
Other liabilities | 96 | ||||
Total liabilities | 246 | ||||
Net identifiable assets acquired over liabilities assumed | 593 | ||||
Goodwill | 9,558 | ||||
Net assets acquired over liabilities assumed | 10,151 | ||||
As Recorded by the Company [Member] | |||||
Assets | |||||
Cash and cash equivalents | 30,060 | ||||
Investment securities | 43,660 | ||||
Loans | 60,101 | ||||
Premises and equipment | 4,737 | ||||
Intangible assets | 1,810 | ||||
Bank owned life insurance | 2,384 | ||||
Other assets | 2,630 | ||||
Total assets | 145,382 | ||||
Deposits: | |||||
Non-interest bearing demand | 27,296 | ||||
Interest bearing | 99,302 | ||||
Total deposits | 126,598 | ||||
Securities sold under agreements to repurchase | 849 | ||||
Other liabilities | 416 | ||||
Total liabilities | 127,863 | ||||
Net identifiable assets acquired over liabilities assumed | 17,519 | ||||
Goodwill | 9,558 | ||||
Net assets acquired over liabilities assumed | $ 27,077 | ||||
[1] | Adjustment reflects marking the securities portfolio to fair value as of the acquisition date. | ||||
[2] | Adjustment reflects the fair value adjustments based on the Company's evaluation of the acquired loan portfolio and excludes the allowance for loan losses recorded by Cornerstone. | ||||
[3] | Adjustment reflects the fair value adjustments based on the Company's evaluation of the acquired premises and equipment. | ||||
[4] | Adjustment reflects the recording of the core deposit intangible on the acquired deposit accounts. | ||||
[5] | Adjustment reflects the deferred tax adjustment related to fair value adjustments at 34%. | ||||
[6] | Adjustment reflects the fair value adjustment on interest-bearing deposits. |
MERGERS AND ACQUISITIONS (Det_2
MERGERS AND ACQUISITIONS (Details 2) - Pro Forma [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Total revenues | $ 13,310 | $ 34,660 |
Net income | $ 1,618 | $ 5,168 |