x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2018 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO . |
CALIFORNIA | 91-2112732 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
2126 Inyo Street, Fresno, California | 93721 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer o | Accelerated filer x | Non-accelerated filer o |
Small reporting company o | Emerging growth company o |
PART I. Financial Information | |||
Item 1. Financial Statements | |||
PART II. Other Information | |||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 5. | |||
Item 6. | |||
(in thousands except shares) | September 30, 2018 | December 31, 2017 | |||||
Assets | |||||||
Cash and non-interest bearing deposits in other banks | $ | 28,952 | $ | 35,237 | |||
Due from Federal Reserve Bank ("FRB") | 178,348 | 72,697 | |||||
Cash and cash equivalents | 207,300 | 107,934 | |||||
Investment securities (at fair value) | |||||||
Available for sale ("AFS") securities | 62,103 | 41,985 | |||||
Marketable equity securities | 3,624 | 3,737 | |||||
Total investment securities | 65,727 | 45,722 | |||||
Loans | 577,115 | 601,351 | |||||
Unearned fees and unamortized loan origination costs, net | 483 | 1,039 | |||||
Allowance for credit losses | (8,798 | ) | (9,267 | ) | |||
Net loans | 568,800 | 593,123 | |||||
Premises and equipment – net | 9,875 | 10,165 | |||||
Accrued interest receivable | 9,412 | 6,526 | |||||
Other real estate owned | 5,745 | 5,745 | |||||
Goodwill | 4,488 | 4,488 | |||||
Deferred tax assets - net | 2,760 | 2,389 | |||||
Cash surrender value of life insurance | 19,935 | 19,752 | |||||
Investment in limited partnerships | 1,588 | 1,601 | |||||
Other assets | 8,398 | 8,391 | |||||
Total assets | $ | 904,028 | $ | 805,836 | |||
Liabilities & Shareholders' Equity | |||||||
Liabilities | |||||||
Deposits | |||||||
Noninterest bearing | $ | 315,213 | $ | 307,299 | |||
Interest bearing | 463,670 | 380,394 | |||||
Total deposits | 778,883 | 687,693 | |||||
Accrued interest payable | 57 | 44 | |||||
Other liabilities | 7,639 | 7,017 | |||||
Junior subordinated debentures (at fair value) | 10,403 | 9,730 | |||||
Total liabilities | 796,982 | 704,484 | |||||
Shareholders' Equity | |||||||
Common stock, no par value; 20,000,000 shares authorized; issued and outstanding: 16,903,290 at September 30, 2018 and 16,885,615 at December 31, 2017 | 58,472 | 57,880 | |||||
Retained earnings | 47,852 | 44,182 | |||||
Accumulated other comprehensive income (loss) | 722 | (710 | ) | ||||
Total shareholders' equity | 107,046 | 101,352 | |||||
Total liabilities and shareholders' equity | $ | 904,028 | $ | 805,836 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(In thousands except shares and EPS) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Interest Income: | |||||||||||||||
Interest and fees on loans | $ | 8,397 | $ | 7,978 | $ | 24,114 | $ | 22,782 | |||||||
Interest on investment securities | 351 | 238 | 809 | 691 | |||||||||||
Interest on deposits in FRB | 806 | 375 | 1,870 | 858 | |||||||||||
Interest on deposits in other banks | — | 1 | — | 4 | |||||||||||
Total interest income | 9,554 | 8,592 | 26,793 | 24,335 | |||||||||||
Interest Expense: | |||||||||||||||
Interest on deposits | 579 | 355 | 1,517 | 1,055 | |||||||||||
Interest on other borrowed funds | 112 | 80 | 311 | 223 | |||||||||||
Total interest expense | 691 | 435 | 1,828 | 1,278 | |||||||||||
Net Interest Income | 8,863 | 8,157 | 24,965 | 23,057 | |||||||||||
(Recovery of Provision) Provision for Credit Losses | (373 | ) | 7 | (1,699 | ) | (24 | ) | ||||||||
Net Interest Income after (Recovery of Provision) Provision for Credit Losses | 9,236 | 8,150 | 26,664 | 23,081 | |||||||||||
Noninterest Income: | |||||||||||||||
Customer service fees | 815 | 959 | 2,787 | 2,897 | |||||||||||
Increase in cash surrender value of bank-owned life insurance | 132 | 134 | 389 | 400 | |||||||||||
Loss on marketable equity securities | (35 | ) | — | (114 | ) | — | |||||||||
Gain on proceeds from bank-owned life insurance | — | — | 171 | — | |||||||||||
Loss on fair value of junior subordinated debentures | (262 | ) | (88 | ) | (923 | ) | (688 | ) | |||||||
Gain on sale of investment in limited partnership | — | 3 | — | 3 | |||||||||||
Gain on sale of assets | — | — | 29 | — | |||||||||||
Other | 199 | 168 | 601 | 539 | |||||||||||
Total noninterest income | 849 | 1,176 | 2,940 | 3,151 | |||||||||||
Noninterest Expense: | |||||||||||||||
Salaries and employee benefits | 2,826 | 2,578 | 8,798 | 8,149 | |||||||||||
Occupancy expense | 1,121 | 1,087 | 3,256 | 3,144 | |||||||||||
Data processing | 13 | 29 | 104 | 81 | |||||||||||
Professional fees | 408 | 312 | 1,134 | 912 | |||||||||||
Regulatory assessments | 87 | 43 | 248 | 313 | |||||||||||
Director fees | 78 | 72 | 239 | 215 | |||||||||||
Correspondent bank service charges | 15 | 18 | 48 | 55 | |||||||||||
Loss (gain) on California tax credit partnership | 5 | (1 | ) | 14 | 118 | ||||||||||
Net cost (gain) on operation and sale of OREO | 30 | 21 | 129 | (257 | ) | ||||||||||
Other | 560 | 587 | 1,489 | 1,813 | |||||||||||
Total noninterest expense | 5,143 | 4,746 | 15,459 | 14,543 | |||||||||||
Income Before Provision for Taxes | 4,942 | 4,580 | 14,145 | 11,689 | |||||||||||
Provision for Taxes on Income | 1,424 | 1,840 | 4,077 | 4,685 | |||||||||||
Net Income | $ | 3,518 | $ | 2,740 | $ | 10,068 | $ | 7,004 | |||||||
Net Income per common share | |||||||||||||||
Basic | $ | 0.21 | $ | 0.16 | $ | 0.60 | $ | 0.41 | |||||||
Diluted | $ | 0.21 | $ | 0.16 | $ | 0.59 | $ | 0.41 | |||||||
Shares on which net income per common shares were based | |||||||||||||||
Basic | 16,902,218 | 16,885,615 | 16,897,524 | 16,885,578 | |||||||||||
Diluted | 16,954,053 | 16,907,267 | 16,933,477 | 16,904,063 |
(In thousands) | Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | |||||||||||
Net Income | $ | 3,518 | $ | 2,740 | $ | 10,068 | $ | 7,004 | |||||||
Unrealized holdings (loss) gain on securities | (226 | ) | — | (655 | ) | 355 | |||||||||
Unrealized gains on unrecognized post-retirement costs | 14 | 13 | 41 | 39 | |||||||||||
Unrealized (loss) gain on junior subordinated debentures | (14 | ) | — | 280 | — | ||||||||||
Other comprehensive (loss) income, before tax | (226 | ) | 13 | (334 | ) | 394 | |||||||||
Tax benefit (expense) related to securities | 67 | — | 195 | (142 | ) | ||||||||||
Tax expense related to unrecognized post-retirement costs | (4 | ) | (5 | ) | (12 | ) | (16 | ) | |||||||
Tax benefit (expense) related to junior subordinated debentures | 4 | — | (83 | ) | — | ||||||||||
Total other comprehensive (loss) income | (159 | ) | 8 | (234 | ) | 236 | |||||||||
Comprehensive Income | $ | 3,359 | $ | 2,748 | $ | 9,834 | $ | 7,240 |
Common stock | ||||||||||||||||||
(In thousands except shares) | Number of Shares | Amount | Retained Earnings | Accumulated Other Comprehensive (Loss) Gain | Total | |||||||||||||
Balance December 31, 2016 (1) | 16,705,594 | $ | 56,557 | $ | 40,701 | $ | (604 | ) | $ | 96,654 | ||||||||
(1) Excludes 12,015 unvested restricted shares | ||||||||||||||||||
Other comprehensive income | 236 | 236 | ||||||||||||||||
Common stock dividends | 167,082 | 1,220 | (1,220 | ) | — | |||||||||||||
Dividends on common stock ($0.17 per share) | (1,688 | ) | (1,688 | ) | ||||||||||||||
Dividends payable ($0.07 per share) | (1,182 | ) | (1,182 | ) | ||||||||||||||
Stock options exercised | 2,514 | 6 | 6 | |||||||||||||||
Restricted stock units released | 10,425 | — | ||||||||||||||||
Stock-based compensation expense | 78 | 78 | ||||||||||||||||
Net income | 7,004 | 7,004 | ||||||||||||||||
Balance September 30, 2017 (2) | 16,885,615 | $ | 57,861 | $ | 43,615 | $ | (368 | ) | $ | 101,108 | ||||||||
(2) Excludes 9,011 unvested restricted shares | ||||||||||||||||||
Other comprehensive loss | (229 | ) | (229 | ) | ||||||||||||||
Reclassification of income tax effects from accumulated other comprehensive income | 113 | (113 | ) | — | ||||||||||||||
Dividends payable ($0.07 per share) | (1,182 | ) | (1,182 | ) | ||||||||||||||
Stock-based compensation expense | 19 | 19 | ||||||||||||||||
Net income | 1,636 | 1,636 | ||||||||||||||||
Balance December 31, 2017 (3) | 16,885,615 | $ | 57,880 | $ | 44,182 | $ | (710 | ) | $ | 101,352 | ||||||||
(3) Excludes 46,511 unvested restricted shares | ||||||||||||||||||
Other comprehensive loss | (234 | ) | (234 | ) | ||||||||||||||
Adoption of ASU 2016-01: reclassification of TRUPS to accumulated other comprehensive income | (1,482 | ) | 1,482 | — | ||||||||||||||
Adoption of ASU 2016-01: recognition of previously unrealized losses within marketable equity securities | (184 | ) | 184 | — | ||||||||||||||
Dividends on common stock ($0.18 per share) | (3,042 | ) | (3,042 | ) | ||||||||||||||
Dividends payable ($0.10 per share) | (1,690 | ) | (1,690 | ) | ||||||||||||||
Restricted stock units released | 17,675 | — | ||||||||||||||||
Stock-based compensation expense | 592 | 592 | ||||||||||||||||
Net income | 10,068 | 10,068 | ||||||||||||||||
Balance September 30, 2018 (4) | 16,903,290 | $ | 58,472 | $ | 47,852 | $ | 722 | $ | 107,046 | |||||||||
(4) Excludes 78,508 unvested restricted shares |
Nine months ended September 30, | |||||||
(In thousands) | 2018 | 2017 | |||||
Cash Flows From Operating Activities: | |||||||
Net Income | $ | 10,068 | $ | 7,004 | |||
Adjustments to reconcile net income: to cash provided by operating activities: | |||||||
Recovery of provision for credit losses | (1,699 | ) | (24 | ) | |||
Depreciation and amortization | 1,005 | 996 | |||||
Amortization of investment securities | 409 | 406 | |||||
Accretion of investment securities | (3 | ) | (6 | ) | |||
Increase in accrued interest receivable | (2,886 | ) | (1,951 | ) | |||
Increase (decrease) in accrued interest payable | 13 | (35 | ) | ||||
(Decrease) increase in accounts payable and accrued liabilities | (1,052 | ) | 282 | ||||
Decrease (increase) in unearned fees and unamortized loan origination costs, net | 556 | (142 | ) | ||||
Increase in income taxes receivable | (493 | ) | (734 | ) | |||
Unrealized loss on marketable equity securities | 114 | — | |||||
Stock-based compensation expense | 592 | 78 | |||||
Provision for deferred income taxes | (190 | ) | (283 | ) | |||
Gain on sale of other real estate owned | — | (336 | ) | ||||
Gain on bank owned life insurance | (171 | ) | — | ||||
Increase in cash surrender value of bank-owned life insurance | (389 | ) | (400 | ) | |||
Loss on fair value option of junior subordinated debentures | 923 | 688 | |||||
Loss on tax credit limited partnership interest | 14 | 118 | |||||
Gain on sale of premises and equipment | (29 | ) | — | ||||
Net decrease (increase) in other assets | 330 | (1,001 | ) | ||||
Net cash provided by operating activities | 7,112 | 4,660 | |||||
Cash Flows From Investing Activities: | |||||||
Net increase in interest-bearing deposits with banks | — | (4 | ) | ||||
Purchase of correspondent bank stock | (23 | ) | (495 | ) | |||
Purchases of available-for-sale securities | (28,072 | ) | — | ||||
Maturities of available-for-sale securities | — | 3,000 | |||||
Principal payments of available-for-sale securities | 7,157 | 6,091 | |||||
Net decrease (increase) in loans | 25,385 | (12,346 | ) | ||||
Cash proceeds from sales of other real estate owned | — | 1,062 | |||||
Investment in limited partnership | — | (1,075 | ) | ||||
Proceeds from bank owned life insurance | 376 | — | |||||
Capital expenditures of premises and equipment | (715 | ) | (1,020 | ) | |||
Net cash provided by (used in) investing activities | 4,108 | (4,787 | ) | ||||
Cash Flows From Financing Activities: | |||||||
Net increase in demand deposits and savings accounts | 83,102 | 85,653 | |||||
Net increase (decrease) in time deposits | 8,086 | (36,984 | ) | ||||
Proceeds from exercise of stock options | — | 6 | |||||
Dividends on common stock | (3,042 | ) | (1,688 | ) | |||
Net cash provided by financing activities | 88,146 | 46,987 | |||||
Net increase in cash and cash equivalents | 99,366 | 46,860 | |||||
Cash and cash equivalents at beginning of period | 107,934 | 113,032 | |||||
Cash and cash equivalents at end of period | $ | 207,300 | $ | 159,892 |
1. | Organization and Summary of Significant Accounting and Reporting Policies |
2. | Investment Securities |
(in 000's) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value (Carrying Amount) | |||||||||||
September 30, 2018 | |||||||||||||||
Securities available for sale: | |||||||||||||||
U.S. Government agencies | $ | 34,198 | $ | 124 | $ | (191 | ) | $ | 34,131 | ||||||
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 28,649 | 30 | (707 | ) | 27,972 | ||||||||||
Total securities available for sale | $ | 62,847 | $ | 154 | $ | (898 | ) | $ | 62,103 |
(in 000's) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value (Carrying Amount) | |||||||||||
December 31, 2017 | |||||||||||||||
Securities available for sale: | |||||||||||||||
U.S. Government agencies | $ | 19,683 | $ | 312 | $ | (41 | ) | $ | 19,954 | ||||||
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 22,391 | 56 | (416 | ) | 22,031 | ||||||||||
Total securities available for sale | $ | 42,074 | $ | 368 | $ | (457 | ) | $ | 41,985 |
September 30, 2018 | |||||||
Amortized Cost | Fair Value (Carrying Amount) | ||||||
(in 000's) | |||||||
Due in one year or less | $ | — | $ | — | |||
Due after one year through five years | — | — | |||||
Due after five years through ten years | 5,860 | 5,843 | |||||
Due after ten years | 28,338 | 28,288 | |||||
Collateralized mortgage obligations | 28,649 | 27,972 | |||||
$ | 62,847 | $ | 62,103 |
(in 000's) | Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||
September 30, 2018 | Fair Value (Carrying Amount) | Unrealized Losses | Fair Value (Carrying Amount) | Unrealized Losses | Fair Value (Carrying Amount) | Unrealized Losses | |||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||
U.S. Government agencies | $ | 17,755 | $ | (79 | ) | 7,030 | (112 | ) | $ | 24,785 | $ | (191 | ) | ||||||||||
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 6,730 | (52 | ) | 17,519 | (655 | ) | 24,249 | (707 | ) | ||||||||||||||
Total impaired securities | $ | 24,485 | $ | (131 | ) | $ | 24,549 | $ | (767 | ) | $ | 49,034 | $ | (898 | ) | ||||||||
December 31, 2017 | |||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||
U.S. Government agencies | $ | 1,728 | $ | (3 | ) | $ | 6,625 | $ | (38 | ) | $ | 8,353 | $ | (41 | ) | ||||||||
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 7,483 | (154 | ) | 13,583 | (262 | ) | 21,066 | (416 | ) | ||||||||||||||
Total impaired securities | $ | 9,211 | $ | (157 | ) | $ | 20,208 | $ | (300 | ) | $ | 29,419 | $ | (457 | ) |
3. | Loans |
(in 000's) | September 30, 2018 | December 31, 2017 | |||||
Commercial and business loans | $ | 54,639 | $ | 46,065 | |||
Government program loans | 884 | 961 | |||||
Total commercial and industrial | 55,523 | 47,026 | |||||
Real estate – mortgage: | |||||||
Commercial real estate | 212,639 | 221,032 | |||||
Residential mortgages | 68,263 | 84,804 | |||||
Home improvement and home equity loans | 333 | 457 | |||||
Total real estate mortgage | 281,235 | 306,293 | |||||
Real estate construction and development | 109,154 | 122,970 | |||||
Agricultural | 59,655 | 59,481 | |||||
Installment and student loans | 71,548 | 65,581 | |||||
Total loans | $ | 577,115 | $ | 601,351 |
• | Commercial real estate mortgage loans comprise the largest segment of this loan category and are available on all types of income producing and non-income producing commercial properties, including: office buildings, shopping centers; apartments and motels; owner occupied buildings; manufacturing facilities and more. Commercial real estate mortgage loans can also be used to refinance existing debt. Commercial real estate loans are made under the premise that the loan will be repaid from the borrower's business operations, rental income associated with the real property, or personal assets. |
• | Residential mortgage loans are provided to individuals to finance or refinance single-family residences. Residential mortgages are not a primary business line offered by the Company, and a majority are conventional mortgages that were purchased as a pool. |
• | Home Improvement and Home Equity loans comprise a relatively small portion of total real estate mortgage loans. Home equity loans are generally secured by junior trust deeds, but may be secured by 1st trust deeds. |
September 30, 2018 | Loans 30-60 Days Past Due | Loans 61-89 Days Past Due | Loans 90 or More Days Past Due | Total Past Due Loans | Current Loans | Total Loans | Accruing Loans 90 or More Days Past Due | ||||||||||||||||||||
Commercial and business loans | $ | — | $ | — | $ | — | $ | — | $ | 54,639 | $ | 54,639 | $ | — | |||||||||||||
Government program loans | — | — | — | — | 884 | 884 | — | ||||||||||||||||||||
Total commercial and industrial | — | — | — | — | 55,523 | 55,523 | — | ||||||||||||||||||||
Commercial real estate loans | — | 393 | — | 393 | 212,246 | 212,639 | — | ||||||||||||||||||||
Residential mortgages | 946 | — | — | 946 | 67,317 | 68,263 | — | ||||||||||||||||||||
Home improvement and home equity loans | — | — | — | — | 333 | 333 | — | ||||||||||||||||||||
Total real estate mortgage | 946 | 393 | — | 1,339 | 279,896 | 281,235 | — | ||||||||||||||||||||
Real estate construction and development loans | — | — | 8,825 | 8,825 | 100,329 | 109,154 | — | ||||||||||||||||||||
Agricultural loans | — | 45 | — | 45 | 59,610 | 59,655 | — | ||||||||||||||||||||
Installment and student loans | 673 | 496 | — | 1,169 | 70,186 | 71,355 | 417 | ||||||||||||||||||||
Overdraft protection lines | — | — | — | — | 36 | 36 | — | ||||||||||||||||||||
Overdrafts | — | — | — | — | 157 | 157 | — | ||||||||||||||||||||
Total installment and student loans | 673 | 496 | — | 1,169 | 70,379 | 71,548 | 417 | ||||||||||||||||||||
Total loans | $ | 1,619 | $ | 934 | $ | 8,825 | $ | 11,378 | $ | 565,737 | $ | 577,115 | $ | 417 |
December 31, 2017 | Loans 30-60 Days Past Due | Loans 61-89 Days Past Due | Loans 90 or More Days Past Due | Total Past Due Loans | Current Loans | Total Loans | Accruing Loans 90 or More Days Past Due | ||||||||||||||||||||
Commercial and business loans | $ | — | $ | — | $ | 212 | $ | 212 | $ | 45,853 | $ | 46,065 | $ | — | |||||||||||||
Government program loans | — | — | — | — | 961 | 961 | — | ||||||||||||||||||||
Total commercial and industrial | — | — | 212 | 212 | 46,814 | 47,026 | — | ||||||||||||||||||||
Commercial real estate loans | 779 | — | — | 779 | 220,253 | 221,032 | — | ||||||||||||||||||||
Residential mortgages | — | — | 94 | 94 | 84,710 | 84,804 | — | ||||||||||||||||||||
Home improvement and home equity loans | — | — | — | — | 457 | 457 | — | ||||||||||||||||||||
Total real estate mortgage | 779 | — | 94 | 873 | 305,420 | 306,293 | — | ||||||||||||||||||||
Real estate construction and development loans | — | — | 360 | 360 | 122,610 | 122,970 | 360 | ||||||||||||||||||||
Agricultural loans | — | — | — | — | 59,481 | 59,481 | — | ||||||||||||||||||||
Installment and student loans | — | — | — | — | 65,446 | 65,446 | 125 | ||||||||||||||||||||
Overdraft protection lines | — | — | — | — | 38 | 38 | — | ||||||||||||||||||||
Overdrafts | — | — | — | — | 97 | 97 | — | ||||||||||||||||||||
Total installment and student loans | — | — | — | — | 65,581 | 65,581 | 125 | ||||||||||||||||||||
Total loans | $ | 779 | $ | — | $ | 666 | $ | 1,445 | $ | 599,906 | $ | 601,351 | $ | 485 |
September 30, 2018 | December 31, 2017 | ||||||
Commercial and business loans | $ | — | $ | 212 | |||
Government program loans | — | — | |||||
Total commercial and industrial | — | 212 | |||||
Commercial real estate loans | 393 | 454 | |||||
Residential mortgages | — | 288 | |||||
Home improvement and home equity loans | — | — | |||||
Total real estate mortgage | 393 | 742 | |||||
Real estate construction and development loans | 11,713 | 4,342 | |||||
Agricultural loans | — | — | |||||
Installment and student loans | — | — | |||||
Overdraft protection lines | — | — | |||||
Overdrafts | — | — | |||||
Total installment and student loans | — | — | |||||
Total loans | $ | 12,106 | $ | 5,296 |
- | For loans secured by collateral including real estate and equipment, the fair value of the collateral less selling costs will determine the carrying value of the loan. The difference between the recorded investment in the loan and the fair value, |
- | The discounted cash flow method of measuring the impairment of a loan is used for impaired loans that are not considered to be collateral dependent. Under this method, the Company assesses both the amount and timing of cash flows expected from impaired loans. The estimated cash flows are discounted using the loan's effective interest rate. The difference between the amount of the loan on the Bank's books and the discounted cash flow amounts determines the amount of impairment to be provided. This method is used for most of the Company’s troubled debt restructurings or other impaired loans where some payment stream is being collected. |
- | The observable market price method of measuring the impairment of a loan is only used by the Company when the sale of loans or a loan is in process. |
September 30, 2018 | Unpaid Contractual Principal Balance | Recorded Investment With No Allowance (1) | Recorded Investment With Allowance (1) | Total Recorded Investment | Related Allowance | Average Recorded Investment (2) | Interest Recognized (2) | ||||||||||||||||||||
Commercial and business loans | $ | 2,726 | $ | 503 | $ | 2,235 | $ | 2,738 | $ | 633 | $ | 3,063 | $ | 139 | |||||||||||||
Government program loans | 300 | 301 | — | 301 | — | 245 | 15 | ||||||||||||||||||||
Total commercial and industrial | 3,026 | 804 | 2,235 | 3,039 | 633 | 3,308 | 154 | ||||||||||||||||||||
Commercial real estate loans | 1,310 | 393 | 921 | 1,314 | 396 | 1,385 | 47 | ||||||||||||||||||||
Residential mortgages | 2,202 | 394 | 1,816 | 2,210 | 68 | 2,505 | 89 | ||||||||||||||||||||
Home improvement and home equity loans | — | — | — | — | — | — | — | ||||||||||||||||||||
Total real estate mortgage | 3,512 | 787 | 2,737 | 3,524 | 464 | 3,890 | 136 | ||||||||||||||||||||
Real estate construction and development loans | 11,713 | 11,713 | — | 11,713 | — | 8,514 | 268 | ||||||||||||||||||||
Agricultural loans | 909 | — | 914 | 914 | 620 | 1,063 | 63 | ||||||||||||||||||||
Installment and student loans | 52 | 52 | — | 52 | — | 50 | 4 | ||||||||||||||||||||
Overdraft protection lines | — | — | — | — | — | — | — | ||||||||||||||||||||
Overdrafts | — | — | — | — | — | — | — | ||||||||||||||||||||
Total installment and student loans | 52 | 52 | — | 52 | — | 50 | 4 | ||||||||||||||||||||
Total impaired loans | $ | 19,212 | $ | 13,356 | $ | 5,886 | $ | 19,242 | $ | 1,717 | $ | 16,825 | $ | 625 |
December 31, 2017 | Unpaid Contractual Principal Balance | Recorded Investment With No Allowance (1) | Recorded Investment With Allowance (1) | Total Recorded Investment | Related Allowance | Average Recorded Investment (2) | Interest Recognized (2) | ||||||||||||||||||||
Commercial and business loans | $ | 3,255 | $ | 381 | $ | 2,887 | $ | 3,268 | $ | 534 | $ | 3,791 | $ | 229 | |||||||||||||
Government program loans | 49 | 50 | — | 50 | — | 219 | 5 | ||||||||||||||||||||
Total commercial and industrial | 3,304 | 431 | 2,887 | 3,318 | 534 | 4,010 | 234 | ||||||||||||||||||||
Commercial real estate loans | 1,233 | — | 1,245 | 1,245 | 385 | 1,138 | 79 | ||||||||||||||||||||
Residential mortgages | 3,040 | 1,199 | 1,852 | 3,051 | 103 | 2,745 | 142 | ||||||||||||||||||||
Home improvement and home equity loans | — | — | — | — | — | — | — | ||||||||||||||||||||
Total real estate mortgage | 4,273 | 1,199 | 3,097 | 4,296 | 488 | 3,883 | 221 | ||||||||||||||||||||
Real estate construction and development loans | 5,951 | 5,972 | — | 5,972 | — | 6,660 | 418 | ||||||||||||||||||||
Agricultural loans | 1,200 | 1 | 1,203 | 1,204 | 866 | 1,179 | 48 | ||||||||||||||||||||
Installment and student loans | — | — | — | — | — | 241 | — | ||||||||||||||||||||
Overdraft protection lines | — | — | — | — | — | — | — | ||||||||||||||||||||
Overdrafts | — | — | — | — | — | — | — | ||||||||||||||||||||
Total installment and student loans | — | — | — | — | — | 241 | — | ||||||||||||||||||||
Total impaired loans | $ | 14,728 | $ | 7,603 | $ | 7,187 | $ | 14,790 | $ | 1,888 | $ | 15,973 | $ | 921 |
◦ | The reduction (absolute or contingent) of the stated interest rate. |
◦ | The extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk. |
◦ | The reduction (absolute or contingent) of the face amount or maturity amount of debt as stated in the instrument or agreement. |
◦ | The reduction (absolute or contingent) of accrued interest. |
Three Months Ended September 30, 2018 | |||||||||||||||||
($ in 000's) | Number of Contracts | Pre- Modification Outstanding Recorded Investment | Post- Modification Outstanding Recorded Investment | Number of Contracts which Defaulted During Period | Recorded Investment on Defaulted TDRs | ||||||||||||
Troubled Debt Restructurings | |||||||||||||||||
Commercial and business loans | — | $ | — | $ | — | — | $ | — | |||||||||
Government program loans | — | — | — | — | — | ||||||||||||
Commercial real estate term loans | — | — | — | 1 | 393 | ||||||||||||
Single family residential loans | — | — | — | — | — | ||||||||||||
Home improvement and home equity loans | — | — | — | — | — | ||||||||||||
Real estate construction and development loans | — | — | — | — | — | ||||||||||||
Agricultural loans | — | — | — | — | — | ||||||||||||
Installment and student loans | — | — | — | — | — | ||||||||||||
Overdraft protection lines | — | — | — | — | — | ||||||||||||
Total loans | — | $ | — | $ | — | 1 | $ | 393 |
Three Months Ended September 30, 2017 | |||||||||||||||||
($ in 000's) | Number of Contracts | Pre- Modification Outstanding Recorded Investment | Post- Modification Outstanding Recorded Investment | Number of Contracts which Defaulted During Period | Recorded Investment on Defaulted TDRs | ||||||||||||
Troubled Debt Restructurings | |||||||||||||||||
Commercial and business loans | — | $ | — | $ | — | — | $ | — | |||||||||
Government program loans | — | — | — | — | — | ||||||||||||
Commercial real estate term loans | — | — | — | — | — | ||||||||||||
Single family residential loans | 1 | 167 | 167 | — | — | ||||||||||||
Home improvement and home equity loans | — | — | — | — | — | ||||||||||||
Real estate construction and development loans | — | — | — | — | — | ||||||||||||
Agricultural loans | 1 | 587 | 587 | — | — | ||||||||||||
Installment and student loans | — | — | — | — | — | ||||||||||||
Overdraft protection lines | — | — | — | — | — | ||||||||||||
Total loans | 2 | $ | 754 | $ | 754 | — | $ | — |
Nine Months Ended September 30, 2018 | |||||||||||||||||
($ in 000's) | Number of Contracts | Pre- Modification Outstanding Recorded Investment | Post- Modification Outstanding Recorded Investment | Number of Contracts which Defaulted During Period | Recorded Investment on Defaulted TDRs | ||||||||||||
Troubled Debt Restructurings | |||||||||||||||||
Commercial and business loans | — | $ | — | $ | — | — | $ | — | |||||||||
Government program loans | — | — | — | — | — | ||||||||||||
Commercial real estate term loans | — | — | — | 1 | 393 | ||||||||||||
Single family residential loans | — | — | — | — | — | ||||||||||||
Home improvement and home equity loans | — | — | — | — | — | ||||||||||||
Real estate construction and development loans | — | — | — | 1 | 310 | ||||||||||||
Agricultural loans | — | — | — | — | — | ||||||||||||
Installment and student loans | — | — | — | — | — | ||||||||||||
Overdraft protection lines | — | — | — | — | — | ||||||||||||
Total loans | — | $ | — | $ | — | 2 | $ | 703 |
Nine Months Ended September 30, 2017 | |||||||||||||||||
($ in 000's) | Number of Contracts | Pre- Modification Outstanding Recorded Investment | Post- Modification Outstanding Recorded Investment | Number of Contracts which Defaulted During Period | Recorded Investment on Defaulted TDRs | ||||||||||||
Troubled Debt Restructurings | |||||||||||||||||
Commercial and business loans | 1 | $ | 69 | $ | 69 | — | $ | — | |||||||||
Government program loans | 1 | 178 | 178 | — | — | ||||||||||||
Commercial real estate term loans | — | — | — | — | — | ||||||||||||
Single family residential loans | 2 | 404 | 404 | — | — | ||||||||||||
Home improvement and home equity loans | — | — | — | — | — | ||||||||||||
Real estate construction and development loans | 1 | 790 | 790 | — | — | ||||||||||||
Agricultural loans | 2 | 1,437 | 1,437 | — | — | ||||||||||||
Installment and student loans | — | — | — | — | — | ||||||||||||
Overdraft protection lines | — | — | — | — | — | ||||||||||||
Total loans | 7 | $ | 2,878 | $ | 2,878 | — | $ | — |
Three Months Ended September 30, 2018 | Commercial and Industrial | Commercial Real Estate | Residential Mortgages | Home Improvement and Home Equity | Real Estate Construction Development | Agricultural | Installment & Student Loans | Total | |||||||||||||||||||||||
Beginning balance | $ | 110 | $ | 1,362 | $ | 2,219 | $ | — | $ | 2,939 | $ | 1,010 | $ | — | $ | 7,640 | |||||||||||||||
Additions | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Principal (reductions) additions | (17 | ) | (6 | ) | (16 | ) | — | (51 | ) | (102 | ) | — | (192 | ) | |||||||||||||||||
Charge-offs | — | (46 | ) | — | — | — | — | — | (46 | ) | |||||||||||||||||||||
Ending balance | $ | 93 | $ | 1,310 | $ | 2,203 | $ | — | $ | 2,888 | $ | 908 | $ | — | $ | 7,402 | |||||||||||||||
Allowance for loan loss | $ | — | $ | 396 | $ | 68 | $ | — | $ | — | $ | 620 | $ | — | $ | 1,084 | |||||||||||||||
Defaults | $ | — | $ | (312 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (312 | ) |
Three Months Ended September 30, 2017 | Commercial and Industrial | Commercial Real Estate | Residential Mortgages | Home Improvement and Home Equity | Real Estate Construction Development | Agricultural | Installment & Student Loans | Total | |||||||||||||||||||||||
Beginning balance | $ | 1,055 | $ | 1,062 | $ | 2,573 | $ | — | $ | 6,868 | $ | 400 | $ | — | $ | 11,958 | |||||||||||||||
Additions | — | — | 167 | — | — | 587 | — | 754 | |||||||||||||||||||||||
Principal reductions | (425 | ) | 85 | (52 | ) | — | (70 | ) | (100 | ) | — | (562 | ) | ||||||||||||||||||
Charge-offs | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Ending balance | $ | 630 | $ | 1,147 | $ | 2,688 | $ | — | $ | 6,798 | $ | 887 | $ | — | $ | 12,150 | |||||||||||||||
Allowance for loan loss | $ | 15 | $ | 221 | $ | 206 | $ | — | $ | — | $ | 743 | $ | — | $ | 1,185 | |||||||||||||||
Defaults | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
Nine Months Ended September 30, 2018 | Commercial and Industrial | Commercial Real Estate | Residential Mortgages | Home Improvement and Home Equity | Real Estate Construction Development | Agricultural | Installment & Student Loans | Total | |||||||||||||||||||||||
Beginning balance | $ | 436 | $ | 1,233 | $ | 2,542 | $ | — | $ | 5,951 | $ | 1,200 | $ | — | $ | 11,362 | |||||||||||||||
Additions | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Principal (reductions) additions | (280 | ) | 123 | (339 | ) | — | (3,063 | ) | (292 | ) | — | (3,851 | ) | ||||||||||||||||||
Charge-offs | (63 | ) | (46 | ) | — | — | — | — | — | (109 | ) | ||||||||||||||||||||
Ending balance | $ | 93 | $ | 1,310 | $ | 2,203 | $ | — | $ | 2,888 | $ | 908 | $ | — | $ | 7,402 | |||||||||||||||
Allowance for loan loss | $ | — | $ | 396 | $ | 68 | $ | — | $ | — | $ | 620 | $ | — | $ | 1,084 | |||||||||||||||
Defaults | $ | — | $ | (312 | ) | $ | — | $ | — | $ | (310 | ) | $ | — | $ | — | $ | (622 | ) |
Nine Months Ended September 30, 2017 | Commercial and Industrial | Commercial Real Estate | Residential Mortgages | Home Improvement and Home Equity | Real Estate Construction Development | Agricultural | Installment & Student Loans | Total | |||||||||||||||||||||||
Beginning balance | $ | 1,356 | $ | 1,454 | $ | 2,368 | $ | — | $ | 6,267 | $ | — | $ | 965 | $ | 12,410 | |||||||||||||||
Additions | 247 | — | 404 | — | 790 | 1,437 | — | 2,878 | |||||||||||||||||||||||
Principal additions (reductions) | (963 | ) | (307 | ) | (84 | ) | — | (259 | ) | (550 | ) | (965 | ) | (3,128 | ) | ||||||||||||||||
Charge-offs | (10 | ) | — | — | — | — | — | — | (10 | ) | |||||||||||||||||||||
Ending balance | $ | 630 | $ | 1,147 | $ | 2,688 | $ | — | $ | 6,798 | $ | 887 | $ | — | $ | 12,150 | |||||||||||||||
Allowance for loan loss | $ | 15 | $ | 221 | $ | 206 | $ | — | $ | — | $ | 743 | $ | — | $ | 1,185 | |||||||||||||||
Defaults | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
- | Grades 1 and 2 – These grades include loans which are given to high quality borrowers with high credit quality and sound financial strength. Key financial ratios are generally above industry averages and the borrower’s strong earnings history or net worth. These may be secured by deposit accounts or high-grade investment securities. |
- | Grade 3 – This grade includes loans to borrowers with solid credit quality with minimal risk. The borrower’s balance sheet and financial ratios are generally in line with industry averages, and the borrower has historically demonstrated the ability to manage economic adversity. Real estate and asset-based loans assigned this risk rating must have |
- | Grades 4 and 5 – These include “pass” grade loans to borrowers of acceptable credit quality and risk. The borrower’s balance sheet and financial ratios may be below industry averages, but above the lowest industry quartile. Leverage is above and liquidity is below industry averages. Inadequacies evident in financial performance and/or management sufficiency are offset by readily available features of support, such as adequate collateral, or good guarantors having the liquid assets and/or cash flow capacity to repay the debt. The borrower may have recognized a loss over three or four years, however recent earnings trends, while perhaps somewhat cyclical, are improving and cash flows are adequate to cover debt service and fixed obligations. Real estate and asset-borrowers fully comply with all underwriting standards and are performing according to projections would be assigned this rating. These also include grade 5 loans which are “leveraged” or on management’s “watch list.” While still considered pass loans (loans given a grade 5), the borrower’s financial condition, cash flow or operations evidence more than average risk and short term weaknesses, these loans warrant a higher than average level of monitoring, supervision and attention from the Company, but do not reflect credit weakness trends that weaken or inadequately protect the Company’s credit position. Loans with a grade rating of 5 are not normally acceptable as new credits unless they are adequately secured or carry substantial endorser/guarantors. |
- | Grade 6 – This grade includes “special mention” loans which are loans that are currently protected but are potentially weak. This generally is an interim grade classification and should usually be upgraded to an Acceptable rating or downgraded to Substandard within a reasonable time period. Weaknesses in special mention loans may, if not checked or corrected, weaken the asset or inadequately protect the Company’s credit position at some future date. Special mention loans are often loans with weaknesses inherent from the loan origination, loan servicing, and perhaps some technical deficiencies. The main theme in special mention credits is the distinct probability that the classification will deteriorate to a more adverse class if the noted deficiencies are not addressed by the loan officer or loan management. |
- | Grade 7 – This grade includes “substandard” loans which are inadequately supported by the current sound net worth and paying capacity of the borrower or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that may impair the regular liquidation of the debt. Substandard loans exhibit a distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Substandard loans also include impaired loans. |
- | Grade 8 – This grade includes “doubtful” loans which exhibit the same characteristics as the Substandard loans with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work to the advantage and strengthening of the loan, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include a proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans. |
- | Grade 9 – This grade includes loans classified “loss” which are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off the asset even though partial recovery may be achieved in the future. |
Commercial and Industrial | Commercial Real Estate | Real Estate Construction and Development | Agricultural | Total | |||||||||||||||
September 30, 2018 | |||||||||||||||||||
(in 000's) | |||||||||||||||||||
Grades 1 and 2 | $ | 340 | $ | 2,906 | $ | — | $ | 80 | $ | 3,326 | |||||||||
Grade 3 | — | 1,044 | — | — | 1,044 | ||||||||||||||
Grades 4 and 5 – pass | 52,132 | 197,743 | 86,441 | 58,666 | 394,982 | ||||||||||||||
Grade 6 – special mention | 81 | 10,553 | — | — | 10,634 | ||||||||||||||
Grade 7 – substandard | 2,970 | 393 | 22,713 | 909 | 26,985 | ||||||||||||||
Grade 8 – doubtful | — | — | — | — | — | ||||||||||||||
Total | $ | 55,523 | $ | 212,639 | $ | 109,154 | $ | 59,655 | $ | 436,971 |
Commercial and Industrial | Commercial Real Estate | Real Estate Construction and Development | Agricultural | Total | |||||||||||||||
December 31, 2017 | |||||||||||||||||||
(in 000's) | |||||||||||||||||||
Grades 1 and 2 | $ | 342 | $ | 2,954 | $ | — | $ | 70 | $ | 3,366 | |||||||||
Grade 3 | 251 | 1,569 | — | — | 1,820 | ||||||||||||||
Grades 4 and 5 – pass | 43,264 | 207,568 | 104,549 | 56,817 | 412,198 | ||||||||||||||
Grade 6 – special mention | — | 8,487 | 720 | 994 | 10,201 | ||||||||||||||
Grade 7 – substandard | 3,169 | 454 | 17,701 | 1,600 | 22,924 | ||||||||||||||
Grade 8 – doubtful | — | — | — | — | — | ||||||||||||||
Total | $ | 47,026 | $ | 221,032 | $ | 122,970 | $ | 59,481 | $ | 450,509 |
September 30, 2018 | December 31, 2017 | ||||||||||||||||||||||||||||||
Residential Mortgages | Home Improvement and Home Equity | Installment and Student Loans | Total | Residential Mortgages | Home Improvement and Home Equity | Installment and Student Loans | Total | ||||||||||||||||||||||||
(in 000's) | |||||||||||||||||||||||||||||||
Not graded | $ | 58,135 | $ | 311 | $ | 68,641 | $ | 127,087 | $ | 69,249 | $ | 433 | $ | 63,565 | $ | 133,247 | |||||||||||||||
Pass | 9,281 | 22 | 2,290 | 11,593 | 13,899 | 24 | 2,011 | 15,934 | |||||||||||||||||||||||
Special mention | 632 | — | 565 | 1,197 | 643 | — | — | 643 | |||||||||||||||||||||||
Substandard | 215 | — | 52 | 267 | 1,013 | — | 5 | 1,018 | |||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Total | $ | 68,263 | $ | 333 | $ | 71,548 | $ | 140,144 | $ | 84,804 | $ | 457 | $ | 65,581 | $ | 150,842 |
September 30, 2018 | December 31, 2017 | ||||||||||||||||||||
Number of Loans | Amount | Accrued Interest | Number of Loans | Amount | Accrued Interest | ||||||||||||||||
School | 1,034 | $ | 39,867 | $ | 4,554 | 1,216 | $ | 48,825 | $ | 3,973 | |||||||||||
Grace | 347 | 15,144 | 2,431 | 55 | 1,446 | 166 | |||||||||||||||
Repayment | 218 | 6,896 | 77 | 201 | 6,473 | 40 | |||||||||||||||
Deferment | 30 | 1,005 | 44 | 32 | 1,128 | 45 | |||||||||||||||
Forbearance | 84 | 2,680 | 72 | 50 | 1,981 | 37 | |||||||||||||||
Claim | 1 | 67 | 5 | — | — | — | |||||||||||||||
Total | 1,714 | $ | 65,659 | $ | 7,183 | 1,554 | $ | 59,853 | $ | 4,261 |
Three Months Ended | Commercial and Industrial | Real Estate Mortgage | Real Estate Construction Development | Agricultural | Installment & Student Loans | Unallocated | Total | ||||||||||||||||||||
September 30, 2018 | |||||||||||||||||||||||||||
Beginning balance | $ | 1,547 | $ | 1,213 | $ | 2,687 | $ | 1,301 | $ | 840 | $ | 837 | $ | 8,425 | |||||||||||||
Provision (recovery of provision) for credit losses | (734 | ) | (81 | ) | (215 | ) | (69 | ) | 687 | 39 | (373 | ) | |||||||||||||||
Charge-offs | — | (47 | ) | — | — | (5 | ) | — | (52 | ) | |||||||||||||||||
Recoveries | 678 | 4 | — | — | 116 | — | 798 | ||||||||||||||||||||
Net charge-offs | 678 | (43 | ) | — | — | 111 | — | 746 | |||||||||||||||||||
Ending balance | $ | 1,491 | $ | 1,089 | $ | 2,472 | $ | 1,232 | $ | 1,638 | $ | 876 | $ | 8,798 | |||||||||||||
Period-end amount allocated to: | |||||||||||||||||||||||||||
Loans individually evaluated for impairment | 633 | 464 | — | 620 | — | — | 1,717 | ||||||||||||||||||||
Loans collectively evaluated for impairment | 858 | 625 | 2,472 | 612 | 1,638 | 876 | 7,081 | ||||||||||||||||||||
Ending balance | $ | 1,491 | $ | 1,089 | $ | 2,472 | $ | 1,232 | $ | 1,638 | $ | 876 | $ | 8,798 |
Three Months Ended | Commercial and Industrial | Real Estate Mortgage | Real Estate Construction Development | Agricultural | Installment & Student Loans | Unallocated | Total | ||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||||||
Beginning balance | $ | 1,764 | $ | 1,174 | $ | 2,887 | $ | 1,589 | $ | 814 | $ | 777 | $ | 9,005 | |||||||||||||
Provision (recovery of provision) for credit losses | (271 | ) | (91 | ) | 112 | 81 | (69 | ) | 245 | 7 | |||||||||||||||||
Charge-offs | (1 | ) | — | — | — | — | — | (1 | ) | ||||||||||||||||||
Recoveries | 11 | 59 | — | — | 77 | — | 147 | ||||||||||||||||||||
Net charge-offs | 10 | 59 | — | — | 77 | — | 146 | ||||||||||||||||||||
Ending balance | $ | 1,503 | $ | 1,142 | $ | 2,999 | $ | 1,670 | $ | 822 | $ | 1,022 | $ | 9,158 | |||||||||||||
Period-end amount allocated to: | |||||||||||||||||||||||||||
Loans individually evaluated for impairment | 571 | 427 | — | 743 | — | — | 1,741 | ||||||||||||||||||||
Loans collectively evaluated for impairment | 932 | 715 | 2,999 | 927 | 822 | 1,022 | 7,417 | ||||||||||||||||||||
Ending balance | $ | 1,503 | $ | 1,142 | $ | 2,999 | $ | 1,670 | $ | 822 | $ | 1,022 | $ | 9,158 |
Nine Months Ended | Commercial and Industrial | Real Estate Mortgage | Real Estate Construction Development | Agricultural | Installment & Student Loans | Unallocated | Total | ||||||||||||||||||||
September 30, 2018 | |||||||||||||||||||||||||||
Beginning balance | $ | 1,408 | $ | 1,182 | $ | 2,903 | $ | 1,631 | $ | 887 | $ | 1,256 | $ | 9,267 | |||||||||||||
Provision (recovery of provision) for credit losses | (915 | ) | (70 | ) | (431 | ) | (399 | ) | 496 | (380 | ) | (1,699 | ) | ||||||||||||||
Charge-offs | (88 | ) | (47 | ) | — | — | (16 | ) | — | (151 | ) | ||||||||||||||||
Recoveries | 1,086 | 24 | — | — | 271 | — | 1,381 | ||||||||||||||||||||
Net recoveries | 998 | (23 | ) | — | — | 255 | — | 1,230 | |||||||||||||||||||
Ending balance | $ | 1,491 | $ | 1,089 | $ | 2,472 | $ | 1,232 | $ | 1,638 | $ | 876 | $ | 8,798 | |||||||||||||
Period-end amount allocated to: | |||||||||||||||||||||||||||
Loans individually evaluated for impairment | 633 | 464 | — | 620 | — | — | 1,717 | ||||||||||||||||||||
Loans collectively evaluated for impairment | 858 | 625 | 2,472 | 612 | 1,638 | 876 | 7,081 | ||||||||||||||||||||
Ending balance | $ | 1,491 | $ | 1,089 | $ | 2,472 | $ | 1,232 | $ | 1,638 | $ | 876 | $ | 8,798 |
Nine Months Ended | Commercial and Industrial | Real Estate Mortgage | Real Estate Construction Development | Agricultural | Installment & Student Loans | Unallocated | Total | ||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||||||
Beginning balance | $ | 1,843 | $ | 1,430 | $ | 3,378 | $ | 666 | $ | 888 | $ | 697 | $ | 8,902 | |||||||||||||
Provision (recovery of provision) for credit losses | (408 | ) | (359 | ) | (379 | ) | 983 | (186 | ) | 325 | (24 | ) | |||||||||||||||
Charge-offs | (106 | ) | (2 | ) | — | — | (12 | ) | — | (120 | ) | ||||||||||||||||
Recoveries | 174 | 73 | — | 21 | 132 | — | 400 | ||||||||||||||||||||
Net charge-offs | 68 | 71 | — | 21 | 120 | — | 280 | ||||||||||||||||||||
Ending balance | $ | 1,503 | $ | 1,142 | $ | 2,999 | $ | 1,670 | $ | 822 | $ | 1,022 | $ | 9,158 | |||||||||||||
Period-end amount allocated to: | |||||||||||||||||||||||||||
Loans individually evaluated for impairment | 571 | 427 | — | 743 | — | — | 1,741 | ||||||||||||||||||||
Loans collectively evaluated for impairment | 932 | 715 | 2,999 | 927 | 822 | 1,022 | 7,417 | ||||||||||||||||||||
Ending balance | $ | 1,503 | $ | 1,142 | $ | 2,999 | $ | 1,670 | $ | 822 | $ | 1,022 | $ | 9,158 |
September 30, 2018 | September 30, 2017 | ||||||||||||||||||||||
Loans Individually Evaluated for Impairment | Loans Collectively Evaluated for Impairment | Total Loans | Loans Individually Evaluated for Impairment | Loans Collectively Evaluated for Impairment | Total Loans | ||||||||||||||||||
(in 000's) | |||||||||||||||||||||||
Commercial and business loans | $ | 2,738 | $ | 51,901 | $ | 54,639 | $ | 3,604 | $ | 42,333 | $ | 45,937 | |||||||||||
Government program loans | 301 | 583 | 884 | 83 | 931 | 1,014 | |||||||||||||||||
Total commercial and industrial | 3,039 | 52,484 | 55,523 | 3,687 | 43,264 | 46,951 | |||||||||||||||||
Commercial real estate loans | 1,314 | 211,325 | 212,639 | 1,151 | 198,517 | 199,668 | |||||||||||||||||
Residential mortgage loans | 2,210 | 66,053 | 68,263 | 2,793 | 87,491 | 90,284 | |||||||||||||||||
Home improvement and home equity loans | — | 333 | 333 | — | 510 | 510 | |||||||||||||||||
Total real estate mortgage | 3,524 | 277,711 | 281,235 | 3,944 | 286,518 | 290,462 | |||||||||||||||||
Real estate construction and development loans | 11,713 | 97,441 | 109,154 | 6,816 | 122,067 | 128,883 | |||||||||||||||||
Agricultural loans | 914 | 58,741 | 59,655 | 891 | 57,614 | 58,505 | |||||||||||||||||
Installment and student loans | 52 | 71,496 | 71,548 | — | 57,583 | 57,583 | |||||||||||||||||
Total loans | $ | 19,242 | $ | 557,873 | $ | 577,115 | $ | 15,338 | $ | 567,046 | $ | 582,384 |
4. | Deposits |
(in 000's) | September 30, 2018 | December 31, 2017 | |||||
Noninterest-bearing deposits | $ | 315,213 | $ | 307,299 | |||
Interest-bearing deposits: | |||||||
NOW and money market accounts | 302,143 | 234,154 | |||||
Savings accounts | 88,609 | 81,408 | |||||
Time deposits: | |||||||
Under $250,000 | 50,798 | 51,687 | |||||
$250,000 and over | 22,120 | 13,145 | |||||
Total interest-bearing deposits | 463,670 | 380,394 | |||||
Total deposits | $ | 778,883 | $ | 687,693 | |||
Total brokered deposits included in time deposits above * | $ | — | $ | — |
5. | Short-term Borrowings/Other Borrowings |
6. | Supplemental Cash Flow Disclosures |
Nine months ended September 30, | |||||||
(in 000's) | 2018 | 2017 | |||||
Cash paid during the period for: | |||||||
Interest | $ | 1,815 | $ | 1,313 | |||
Income taxes | $ | 5,590 | $ | 5,700 | |||
Noncash investing activities: | |||||||
Unrealized gains on unrecognized post retirement costs | $ | 41 | $ | 39 | |||
Unrealized loss on available for sale securities | $ | (655 | ) | $ | 355 | ||
Unrealized gains on TRUPs | $ | 280 | $ | — | |||
Stock dividends issued | $ | — | $ | 1,220 | |||
Cash dividend declared | $ | 1,690 | $ | 1,182 | |||
Adoption of ASU 2016-01: reclassification of TRUPS to accumulated other comprehensive income | $ | 1,482 | $ | — | |||
Adoption of ASU 2016-01: recognition of previously unrealized losses within CRA Fund | $ | 184 | $ | — |
7. | Dividends on Common Stock |
8. | Net Income per Common Share |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (000's, except per share amounts) | $ | 3,518 | $ | 2,740 | $ | 10,068 | $ | 7,004 | |||||||
Weighted average shares issued | 16,902,218 | 16,885,615 | 16,897,524 | 16,885,578 | |||||||||||
Add: dilutive effect of stock options | 51,835 | 21,652 | 35,953 | 18,485 | |||||||||||
Weighted average shares outstanding adjusted for potential dilution | 16,954,053 | 16,907,267 | 16,933,477 | 16,904,063 | |||||||||||
Basic earnings per share | $ | 0.21 | $ | 0.16 | $ | 0.60 | $ | 0.41 | |||||||
Diluted earnings per share | $ | 0.21 | $ | 0.16 | $ | 0.59 | $ | 0.41 | |||||||
Anti-dilutive stock options excluded from earnings per share calculation | 60,000 | 30,000 | 103,000 | 30,000 |
9. | Taxes on Income |
10. | Junior Subordinated Debt/Trust Preferred Securities |
11. | Fair Value Measurements and Disclosure |
September 30, 2018 | |||||||||||||||||||
(in 000's) | Carrying Amount | Estimated Fair Value | Quoted Prices In Active Markets for Identical Assets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | ||||||||||||||
Financial assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 207,300 | $ | 207,300 | $ | 207,300 | $ | — | $ | — | |||||||||
AFS Investment securities | 62,103 | 62,103 | — | 62,103 | — | ||||||||||||||
Marketable equity securities | 3,624 | 3,624 | 3,624 | — | — | ||||||||||||||
Loans | 568,800 | 558,811 | — | — | 558,811 | ||||||||||||||
Accrued interest receivable | 9,412 | 9,412 | — | 9,412 | — | ||||||||||||||
Financial Liabilities: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Noninterest-bearing | 315,213 | 315,213 | 315,213 | — | — | ||||||||||||||
NOW and money market | 302,143 | 302,143 | 302,143 | — | — | ||||||||||||||
Savings | 88,609 | 88,609 | 88,609 | — | — | ||||||||||||||
Time deposits | 72,918 | 72,106 | — | — | 72,106 | ||||||||||||||
Total deposits | 778,883 | 778,071 | 705,965 | 72,106 | |||||||||||||||
Junior subordinated debt | 10,403 | 10,403 | — | — | 10,403 | ||||||||||||||
Accrued interest payable | 57 | 57 | — | 57 | — |
December 31, 2017 | |||||||||||||||||||
(in 000's) | Carrying Amount | Estimated Fair Value | Quoted Prices In Active Markets for Identical Assets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | ||||||||||||||
Financial Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 107,934 | $ | 107,934 | $ | 107,934 | $ | — | $ | — | |||||||||
Investment securities | 41,985 | 45,722 | 3,737 | 41,985 | — | ||||||||||||||
Loans | 593,123 | 588,938 | — | — | 588,938 | ||||||||||||||
Accrued interest receivable | 6,526 | 6,526 | — | 6,526 | — | ||||||||||||||
Financial Liabilities: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Noninterest-bearing | 307,299 | 307,299 | 307,299 | — | — | ||||||||||||||
NOW and money market | 234,154 | 234,154 | 234,154 | — | — | ||||||||||||||
Savings | 81,408 | 81,408 | 81,408 | — | — | ||||||||||||||
Time deposits | 64,832 | 64,387 | — | — | 64,387 | ||||||||||||||
Total deposits | 687,693 | 687,248 | 622,861 | — | 64,387 | ||||||||||||||
Junior subordinated debt | 9,730 | 9,730 | — | — | 9,730 | ||||||||||||||
Accrued interest payable | 44 | 44 | — | 44 | — |
September 30, 2018 | December 31, 2017 | |||||||
Financial Instrument | Valuation Technique | Unobservable Input | Weighted Average | Financial Instrument | Valuation Technique | Unobservable Input | Weighted Average | |
Impaired Loans | Income approach and sales comparison approach | Capitalization rates; adjustment for differences between comparable sales | 16.8% | Junior Subordinated Debt | Discounted cash flow | Discount rate | 5.81% | |
Junior Subordinated Debt | Discounted cash flow | Discount rate | 6.05% |
Description of Assets | September 30, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
AFS Securities (2): | |||||||||||||||
U.S. Government agencies | $ | 34,131 | $ | — | $ | 34,131 | $ | — | |||||||
U.S. Government collateralized mortgage obligations | 27,972 | — | 27,972 | — | |||||||||||
Total AFS securities | $ | 62,103 | $ | — | $ | 62,103 | $ | — | |||||||
Marketable equity securities (2) | 3,624 | 3,624 | — | — | |||||||||||
Impaired loans (1): | |||||||||||||||
Real estate mortgage | 393 | — | — | 393 | |||||||||||
Total impaired loans | $ | 393 | $ | — | $ | — | $ | 393 | |||||||
Total | $ | 66,120 | $ | 3,624 | $ | 62,103 | $ | 393 |
Description of Liabilities | September 30, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||
Junior subordinated debt (2) | $ | 10,403 | — | — | $ | 10,403 | |||||||
Total | $ | 10,403 | — | — | $ | 10,403 |
Description of Assets | December 31, 2017 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
AFS Securities (2): | |||||||||||||||
U.S. Government agencies | $ | 19,954 | $ | — | $ | 19,954 | $ | — | |||||||
U.S. Government collateralized mortgage obligations | 22,031 | — | 22,031 | — | |||||||||||
Total AFS securities | 41,985 | — | 41,985 | $ | — | ||||||||||
Marketable equity securities (2) | 3,737 | 3,737 | — | — | |||||||||||
Total investment securities | $ | 45,722 | $ | 3,737 | $ | 41,985 | $ | — |
Description of Liabilities | December 31, 2017 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Junior subordinated debt (2) | $ | 9,730 | $ | — | $ | — | $ | 9,730 | |||||||
Total | $ | 9,730 | $ | — | $ | — | $ | 9,730 |
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | ||||||||||||
Reconciliation of Liabilities: | Junior Subordinated Debt | Junior Subordinated Debt | Junior Subordinated Debt | Junior Subordinated Debt | |||||||||||
Beginning balance | $ | 10,125 | $ | 9,441 | $ | 9,730 | $ | 8,832 | |||||||
Gross loss included in earnings | 262 | 88 | 923 | 688 | |||||||||||
Gross loss (gain) related to changes in instrument specific credit risk | 15 | — | (280 | ) | — | ||||||||||
Change in accrued interest | 1 | 5 | 30 | 14 | |||||||||||
Ending balance | $ | 10,403 | $ | 9,534 | $ | 10,403 | $ | 9,534 | |||||||
The amount of total (gain) loss for the period included in earnings attributable to the change in unrealized gains or losses relating to liabilities still held at the reporting date | $ | 262 | $ | 88 | $ | 923 | $ | 688 |
12. | Goodwill and Intangible Assets |
13. | Accumulated Other Comprehensive Income |
September 30, 2018 | December 31, 2017 | ||||||||||||||||||||||
(in 000's) | Net unrealized loss on available for sale securities | Unfunded status of the supplemental retirement plans | Net unrealized gain on junior subordinated debentures | Net unrealized loss on available for sale securities | Unfunded status of the supplemental retirement plans | Net unrealized gain on junior subordinated debentures | |||||||||||||||||
Beginning balance | $ | (248 | ) | $ | (462 | ) | $ | — | $ | (221 | ) | $ | (383 | ) | $ | — | |||||||
Reclassifications upon adoption of ASU 2016-01 | 184 | — | 1,482 | — | — | — | |||||||||||||||||
Current period comprehensive (loss) income | (460 | ) | 29 | 197 | (27 | ) | (79 | ) | — | ||||||||||||||
Ending balance | $ | (524 | ) | $ | (433 | ) | $ | 1,679 | $ | (248 | ) | $ | (462 | ) | $ | — | |||||||
Accumulated other comprehensive income (loss) | $ | 722 | $ | (710 | ) |
14. | Subsequent Events |
2018 | 2017 | ||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest | Yield/Rate (2) | Average Balance | Interest | Yield/Rate (2) | |||||||||||||||
Assets: | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans and leases (1) | $ | 571,673 | $ | 8,397 | 5.83 | % | $ | 574,484 | $ | 7,978 | 5.51 | % | |||||||||
Investment securities (3) | 59,571 | 351 | 2.34 | % | 51,811 | 238 | 1.82 | % | |||||||||||||
Interest-bearing deposits in other banks | — | — | — | % | 654 | 1 | 0.61 | % | |||||||||||||
Interest-bearing deposits in FRB | 163,572 | 806 | 1.95 | % | 117,803 | 375 | 1.26 | % | |||||||||||||
Total interest-earning assets | 794,816 | $ | 9,554 | 4.77 | % | 744,752 | $ | 8,592 | 4.58 | % | |||||||||||
Allowance for credit losses | (8,934 | ) | (9,104 | ) | |||||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||
Cash and due from banks | 27,514 | 22,375 | |||||||||||||||||||
Premises and equipment, net | 10,023 | 10,623 | |||||||||||||||||||
Accrued interest receivable | 8,180 | 4,878 | |||||||||||||||||||
Other real estate owned | 5,745 | 5,745 | |||||||||||||||||||
Other assets | 38,022 | 37,355 | |||||||||||||||||||
Total average assets | $ | 875,366 | $ | 816,624 | |||||||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
NOW accounts | $ | 107,777 | $ | 41 | 0.15 | % | $ | 87,435 | $ | 30 | 0.14 | % | |||||||||
Money market accounts | 185,914 | 316 | 0.67 | % | 156,050 | 187 | 0.48 | % | |||||||||||||
Savings accounts | 87,990 | 69 | 0.31 | % | 81,027 | 47 | 0.23 | % | |||||||||||||
Time deposits | 67,360 | 153 | 0.90 | % | 66,841 | 91 | 0.54 | % | |||||||||||||
Junior subordinated debentures | 10,062 | 112 | 4.42 | % | 9,399 | 80 | 3.38 | % | |||||||||||||
Total interest-bearing liabilities | 459,103 | $ | 691 | 0.60 | % | 400,752 | $ | 435 | 0.43 | % | |||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||
Noninterest-bearing checking | 303,614 | 308,480 | |||||||||||||||||||
Accrued interest payable | 128 | 92 | |||||||||||||||||||
Other liabilities | 5,517 | 6,298 | |||||||||||||||||||
Total liabilities | 768,362 | 715,622 | |||||||||||||||||||
Total shareholders' equity | 107,004 | 101,002 | |||||||||||||||||||
Total average liabilities and shareholders' equity | $ | 875,366 | $ | 816,624 | |||||||||||||||||
Interest income as a percentage of average earning assets | 4.77 | % | 4.58 | % | |||||||||||||||||
Interest expense as a percentage of average earning assets | 0.34 | % | 0.23 | % | |||||||||||||||||
Net interest margin | 4.43 | % | 4.35 | % |
(1) | Loan amounts include nonaccrual loans, but the related interest income has been included only if collected for the period prior to the loan being placed on a nonaccrual basis. Loan interest income includes loan fee income of approximately $28 for the quarter ended September 30, 2018 and loan costs of $68 for the quarter ended September 30, 2017. |
(2) | Interest income/expense is divided by actual number of days in the period times 365 days in the yield calculation |
(3) | Yields on investments securities are calculated based on average amortized cost balances rather than fair value, as changes in fair value are reflected as a component of shareholders' equity. |
2018 | 2017 | ||||||||||||||||||||
(dollars in 000's) | Average Balance | Interest | Yield/Rate (2) | Average Balance | Interest | Yield/Rate (2) | |||||||||||||||
Assets: | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans and leases (1) | $ | 584,424 | $ | 24,114 | 5.52 | % | $ | 565,068 | $ | 22,782 | 5.39 | % | |||||||||
Investment securities – taxable (3) | 51,489 | 809 | 2.10 | % | 54,284 | 691 | 1.70 | % | |||||||||||||
Interest-bearing deposits in other banks | — | — | — | % | 652 | 4 | 0.82 | % | |||||||||||||
Interest-bearing deposits in FRB | 137,478 | 1,870 | 1.82 | % | 107,921 | 858 | 1.06 | % | |||||||||||||
Total interest-earning assets | 773,391 | $ | 26,793 | 4.63 | % | 727,925 | $ | 24,335 | 4.47 | % | |||||||||||
Allowance for credit losses | (9,219 | ) | (9,017 | ) | |||||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||
Cash and due from banks | 27,111 | 21,393 | |||||||||||||||||||
Premises and equipment, net | 10,112 | 10,708 | |||||||||||||||||||
Accrued interest receivable | 7,244 | 4,248 | |||||||||||||||||||
Other real estate owned | 5,745 | 6,083 | |||||||||||||||||||
Other assets | 37,297 | 36,731 | |||||||||||||||||||
Total average assets | $ | 851,681 | $ | 798,071 | |||||||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
NOW accounts | $ | 100,714 | $ | 107 | 0.14 | % | $ | 87,598 | $ | 87 | 0.13 | % | |||||||||
Money market accounts | 178,668 | 841 | 0.63 | % | 152,257 | 506 | 0.44 | % | |||||||||||||
Savings accounts | 84,915 | 163 | 0.26 | % | 78,247 | 136 | 0.23 | % | |||||||||||||
Time deposits | 66,821 | 406 | 0.81 | % | 80,861 | 326 | 0.54 | % | |||||||||||||
Junior subordinated debentures | 9,783 | 311 | 4.25 | % | 9,114 | 223 | 3.27 | % | |||||||||||||
Total interest-bearing liabilities | 440,901 | $ | 1,828 | 0.55 | % | 408,077 | $ | 1,278 | 0.42 | % | |||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||
Noninterest-bearing checking | 299,701 | 283,783 | |||||||||||||||||||
Accrued interest payable | 116 | 104 | |||||||||||||||||||
Other liabilities | 5,896 | 6,714 | |||||||||||||||||||
Total liabilities | 746,614 | 698,678 | |||||||||||||||||||
Total shareholders' equity | 105,067 | 99,393 | |||||||||||||||||||
Total average liabilities and shareholders' equity | $ | 851,681 | $ | 798,071 | |||||||||||||||||
Interest income as a percentage of average earning assets | 4.63 | % | 4.47 | % | |||||||||||||||||
Interest expense as a percentage of average earning assets | 0.32 | % | 0.23 | % | |||||||||||||||||
Net interest margin | 4.31 | % | 4.24 | % |
(1) | Loan amounts include nonaccrual loans, but the related interest income has been included only if collected for the period prior to the loan being placed on a nonaccrual basis. Loan interest income includes loan costs of approximately $806 and $336 for the nine months ended September 30, 2018 and 2017, respectively. |
(2) | Interest income/expense is divided by actual number of days in the period times 365 days in the yield calculation |
(3) | Yields on investments securities are calculated based on average amortized cost balances rather than fair value, as changes in fair value are reflected as a component of shareholders' equity. |
Increase (decrease) in the nine months ended September 30, 2018 compared to September 30, 2017 | |||||||||||
(in 000's) | Total | Rate | Volume | ||||||||
Increase (decrease) in interest income: | |||||||||||
Loans and leases | $ | 1,332 | $ | 577 | $ | 755 | |||||
Investment securities available for sale | 118 | 155 | (37 | ) | |||||||
Interest-bearing deposits in other banks | (4 | ) | (6 | ) | 2 | ||||||
Interest-bearing deposits in FRB | 1,012 | 564 | 448 | ||||||||
Total interest income | 2,458 | 1,290 | 1,168 | ||||||||
Increase (decrease) in interest expense: | |||||||||||
Interest-bearing demand accounts | 355 | 247 | 108 | ||||||||
Savings and money market accounts | 27 | 15 | 12 | ||||||||
Time deposits | 80 | 144 | (64 | ) | |||||||
Subordinated debentures | 88 | 71 | 17 | ||||||||
Total interest expense | 550 | 477 | 73 | ||||||||
Increase in net interest income | $ | 1,908 | $ | 813 | $ | 1,095 |
YTD Average 9/30/2018 | YTD Average 12/31/17 | YTD Average 9/30/2017 | |||
Loans | 75.57% | 77.91% | 77.63% | ||
Investment securities available for sale | 6.66% | 7.18% | 7.46% | ||
Interest-bearing deposits in other banks | —% | 0.09% | 0.09% | ||
Interest-bearing deposits in FRB | 17.77% | 14.82% | 14.82% | ||
Total interest-earning assets | 100.00% | 100.00% | 100.00% | ||
NOW accounts | 22.84% | 21.55% | 21.47% | ||
Money market accounts | 40.52% | 37.92% | 37.31% | ||
Savings accounts | 19.26% | 19.42% | 19.17% | ||
Time deposits | 15.16% | 18.85% | 19.82% | ||
Subordinated debentures | 2.22% | 2.26% | 2.23% | ||
Total interest-bearing liabilities | 100.00% | 100.00% | 100.00% |
(in 000's) | Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | Amount of Change | Percent Change | ||||||||||
Customer service fees | $ | 815 | $ | 959 | $ | (144 | ) | (15.02 | )% | |||||
Increase in cash surrender value of BOLI/COLI | 132 | 134 | (2 | ) | (1.49 | )% | ||||||||
Loss on marketable equity securities | (35 | ) | — | (35 | ) | (100.00 | )% | |||||||
Loss on fair value of junior subordinated debentures | (262 | ) | (88 | ) | (174 | ) | 197.73 | % | ||||||
Gain on sale of other investment | — | 3 | (3 | ) | (100.00 | )% | ||||||||
Other | 199 | 168 | 31 | 18.45 | % | |||||||||
Total noninterest income | $ | 849 | $ | 1,176 | $ | (327 | ) | (27.81 | )% |
(in 000's) | Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | Amount of Change | Percent Change | ||||||||||
Customer service fees | $ | 2,787 | $ | 2,897 | $ | (110 | ) | (3.80 | )% | |||||
Increase in cash surrender value of BOLI/COLI | 389 | 400 | (11 | ) | (2.75 | )% | ||||||||
Loss on marketable equity securities | (114 | ) | — | (114 | ) | (100.00 | )% | |||||||
Gain on proceeds from bank-owned life insurance | 171 | — | 171 | (100.00 | )% | |||||||||
Loss on fair value of junior subordinated debentures | (923 | ) | (688 | ) | (235 | ) | 34.16 | % | ||||||
Gain on sale of other investment | — | 3 | (3 | ) | (100.00 | )% | ||||||||
Gain on sale fixed assets | 29 | — | 29 | 100.00 | % | |||||||||
Other | 601 | 539 | 62 | 11.50 | % | |||||||||
Total noninterest income | $ | 2,940 | $ | 3,151 | $ | (211 | ) | (6.70 | )% |
(in 000's) | Three Months Ended September 30, 2018 | Three Months Ended September 30, 2017 | Amount of Change | Percent Change | ||||||||||
Salaries and employee benefits | $ | 2,826 | $ | 2,578 | $ | 248 | 9.62 | % | ||||||
Occupancy expense | 1,121 | 1,087 | 34 | 3.13 | % | |||||||||
Data processing | 13 | 29 | (16 | ) | (55.17 | )% | ||||||||
Professional fees | 408 | 312 | 96 | 30.77 | % | |||||||||
Regulatory assessments | 87 | 43 | 44 | 102.33 | % | |||||||||
Director fees | 78 | 72 | 6 | 8.33 | % | |||||||||
Loss on California tax credit partnership | 5 | (1 | ) | 6 | (600.00 | )% | ||||||||
Correspondent bank service charges | 15 | 18 | (3 | ) | (16.67 | )% | ||||||||
Net cost on operation of OREO | 30 | 21 | 9 | 42.86 | % | |||||||||
Other | 560 | 587 | (27 | ) | (4.60 | )% | ||||||||
Total expense | $ | 5,143 | $ | 4,746 | $ | 397 | 8.36 | % |
(in 000's) | Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | Amount of Change | Percent Change | ||||||||||
Salaries and employee benefits | $ | 8,798 | $ | 8,149 | $ | 649 | 7.96 | % | ||||||
Occupancy expense | 3,256 | 3,144 | 112 | 3.56 | % | |||||||||
Data processing | 104 | 81 | 23 | 28.40 | % | |||||||||
Professional fees | 1,134 | 912 | 222 | 24.34 | % | |||||||||
Regulatory assessments | 248 | 313 | (65 | ) | (20.77 | )% | ||||||||
Director fees | 239 | 215 | 24 | 11.16 | % | |||||||||
Correspondent bank service charges | 48 | 55 | (7 | ) | (12.73 | )% | ||||||||
Loss on California tax credit partnership | 14 | 118 | (104 | ) | (88.14 | )% | ||||||||
Net cost on operation of OREO | 129 | (257 | ) | 386 | (150.19 | )% | ||||||||
Other | 1,489 | 1,813 | (324 | ) | (17.87 | )% | ||||||||
Total expense | $ | 15,459 | $ | 14,543 | $ | 916 | 6.30 | % |
September 30, 2018 | December 31, 2017 | |||||||||||||||||||
(in 000's) | Dollar Amount | % of Loans | Dollar Amount | % of Loans | Net Change | % Change | ||||||||||||||
Commercial and industrial | $ | 55,523 | 9.6 | % | $ | 47,026 | 7.9 | % | $ | 8,497 | 18.07 | % | ||||||||
Real estate – mortgage | 281,235 | 48.7 | % | 306,293 | 50.9 | % | (25,058 | ) | (8.18 | )% | ||||||||||
RE construction & development | 109,154 | 18.9 | % | 122,970 | 20.4 | % | (13,816 | ) | (11.24 | )% | ||||||||||
Agricultural | 59,655 | 10.3 | % | 59,481 | 9.9 | % | 174 | 0.29 | % | |||||||||||
Installment and student loans | 71,548 | 12.5 | % | 65,581 | 10.9 | % | 5,967 | 9.10 | % | |||||||||||
Total gross loans | $ | 577,115 | 100.00 | % | $ | 601,351 | 100.00 | % | $ | (24,236 | ) | (4.03 | )% |
(in 000's) | September 30, 2018 | December 31, 2017 | Net Change | Percentage Change | ||||||||||
Noninterest-bearing deposits | $ | 315,213 | $ | 307,299 | $ | 7,914 | 2.58 | % | ||||||
Interest-bearing deposits: | ||||||||||||||
NOW and money market accounts | 302,143 | 234,154 | 67,989 | 29.04 | % | |||||||||
Savings accounts | 88,609 | 81,408 | 7,201 | 8.85 | % | |||||||||
Time deposits: | ||||||||||||||
Under $250,000 | 50,798 | 51,687 | (889 | ) | -1.72 | % | ||||||||
$250,000 and over | 22,120 | 13,145 | 8,975 | 68.28 | % | |||||||||
Total interest bearing deposits | 463,670 | 380,394 | 83,276 | 21.89 | % | |||||||||
Total deposits | $ | 778,883 | $ | 687,693 | $ | 91,190 | 13.26 | % |
• | The formula allowance |
• | Specific allowances for problem graded loans identified as impaired; and |
• | The unallocated allowance |
• | Levels of, and trends in delinquencies and nonaccrual loans; |
• | Trends in volumes and term of loans; |
• | Effects of any changes in lending policies and procedures including those for underwriting, collection, charge-off, and recovery; |
• | Experience, ability, and depth of lending management and staff; |
• | National and local economic trends and conditions and; |
• | Concentrations of credit that might affect loss experience across one or more components of the portfolio, including high-balance loan concentrations and participations. |
(in 000's) | September 30, 2018 | December 31, 2017 | |||||
Specific allowance – impaired loans | $ | 1,717 | $ | 1,888 | |||
Formula allowance – classified loans not impaired | 966 | 1,136 | |||||
Formula allowance – special mention loans | 173 | 181 | |||||
Total allowance for special mention and classified loans | 2,856 | 3,205 | |||||
Formula allowance for pass loans | 5,066 | 4,806 | |||||
Unallocated allowance | 876 | 1,256 | |||||
Total allowance for loan losses | $ | 8,798 | $ | 9,267 | |||
Impaired loans | 19,242 | 14,790 | |||||
Classified loans not considered impaired | 11,037 | 12,521 | |||||
Total classified loans / impaired loans | $ | 30,279 | $ | 27,311 | |||
Special mention loans not considered impaired | $ | 11,198 | $ | 10,201 |
Impaired Loan Balance | Reserve | Impaired Loan Balance | Reserve | ||||||||||||
(in 000’s) | September 30, 2018 | September 30, 2018 | December 31, 2017 | December 31, 2017 | |||||||||||
Commercial and industrial | $ | 3,039 | $ | 633 | $ | 3,318 | $ | 534 | |||||||
Real estate – mortgage | 3,524 | 464 | 4,296 | 488 | |||||||||||
RE construction & development | 11,713 | — | 5,972 | — | |||||||||||
Agricultural | 914 | 620 | 1,204 | 866 | |||||||||||
Installment and student loans | 52 | — | — | — | |||||||||||
Total impaired loans | $ | 19,242 | $ | 1,717 | $ | 14,790 | $ | 1,888 |
Total TDRs | Nonaccrual TDRs | Accruing TDRs | |||||||||
(in 000's) | September 30, 2018 | September 30, 2018 | September 30, 2018 | ||||||||
Commercial and industrial | $ | 93 | $ | — | $ | 93 | |||||
Real estate - mortgage: | |||||||||||
Commercial real estate | 1,310 | 393 | 917 | ||||||||
Residential mortgages | 2,203 | — | 2,203 | ||||||||
Total real estate mortgage | 3,513 | 393 | 3,120 | ||||||||
RE construction & development | 2,888 | 2,888 | — | ||||||||
Agricultural | 908 | — | 908 | ||||||||
Total troubled debt restructurings | $ | 7,402 | $ | 3,281 | $ | 4,121 |
Total TDRs | Nonaccrual TDRs | Accruing TDRs | |||||||||
(in 000's) | December 31, 2017 | December 31, 2017 | December 31, 2017 | ||||||||
Commercial and industrial | $ | 436 | $ | 194 | $ | 242 | |||||
Real estate - mortgage: | |||||||||||
Commercial real estate | 1,233 | 454 | 779 | ||||||||
Residential mortgages | 2,542 | 288 | 2,254 | ||||||||
Total real estate mortgage | 3,775 | 742 | 3,033 | ||||||||
RE construction & development | 5,951 | 4,342 | 1,609 | ||||||||
Agricultural | 1,200 | — | 1,200 | ||||||||
Total troubled debt restructurings | $ | 11,362 | $ | 5,278 | $ | 6,084 |
September 30, 2018 | December 31, 2017 | ||||||||||||||||||||
Number of Loans | Amount | Accrued Interest | Number of Loans | Amount | Accrued Interest | ||||||||||||||||
School | 1,034 | $ | 39,867 | $ | 4,554 | 1,216 | $ | 48,825 | $ | 3,973 | |||||||||||
Grace | 347 | 15,144 | 2,431 | 55 | 1,446 | 166 | |||||||||||||||
Repayment | 218 | 6,896 | 77 | 201 | 6,473 | 40 | |||||||||||||||
Deferment | 30 | 1,005 | 44 | 32 | 1,128 | 45 | |||||||||||||||
Forbearance | 84 | 2,680 | 72 | 50 | 1,981 | 37 | |||||||||||||||
Claim | 1 | 67 | 5 | — | — | — | |||||||||||||||
Total | 1,714 | $ | 65,659 | $ | 7,183 | 1,554 | $ | 59,853 | $ | 4,261 |
(in 000's) | September 30, 2018 | December 31, 2017 | |||||
Nonaccrual loans (1) | $ | 12,106 | $ | 5,296 | |||
Restructured loans | 4,121 | 6,084 | |||||
Loans past due 90 days or more, still accruing | 417 | 485 | |||||
Total nonperforming loans | 16,644 | 11,865 | |||||
Other real estate owned | 5,745 | 5,745 | |||||
Total nonperforming assets | $ | 22,389 | $ | 17,610 | |||
Nonperforming loans to total gross loans | 2.88 | % | 1.97 | % | |||
Nonperforming assets to total assets | 2.48 | % | 2.19 | % | |||
Allowance for loan losses to nonperforming loans | 52.86 | % | 78.10 | % |
(1) | Included in nonaccrual loans at September 30, 2018 and December 31, 2017 are restructured loans totaling $3,281,000 and $5,278,000, respectively. |
Balance | Balance | Change from | |||||||||
(in 000's) | September 30, 2018 | December 31, 2017 | December 31, 2017 | ||||||||
Nonaccrual Loans: | |||||||||||
Commercial and industrial | $ | — | $ | 212 | $ | (212 | ) | ||||
Real estate - mortgage | 393 | 742 | (349 | ) | |||||||
RE construction & development | 11,713 | 4,342 | 7,371 | ||||||||
Installment and student loans | — | — | — | ||||||||
Total nonaccrual loans | $ | 12,106 | $ | 5,296 | $ | 6,810 |
(in 000's) | September 30, 2018 | December 31, 2017 | September 30, 2017 | ||||||||
(Recovery of provision) provision for credit losses year-to-date | $ | (1,699 | ) | $ | 24 | $ | (24 | ) | |||
Allowance as % of nonperforming loans | 52.86 | % | 78.10 | % | 75.24 | % | |||||
Nonperforming loans as % total loans | 2.88 | % | 1.97 | % | 2.09 | % | |||||
Restructured loans as % total loans | 1.28 | % | 1.89 | % | 2.09 | % |
(in thousands) | September 30, 2018 | December 31, 2017 | |||||
Commercial and industrial | $ | 81 | $ | — | |||
Real estate - mortgage: | |||||||
Commercial real estate | 10,553 | 8,487 | |||||
Residential mortgages | 632 | 643 | |||||
Total real estate mortgage | 11,185 | 9,130 | |||||
RE construction & development | — | 720 | |||||
Agricultural | — | 994 | |||||
Installment and student loans | 565 | — | |||||
Total special mention loans | $ | 11,831 | $ | 10,844 |
(in 000's) | September 30, 2018 | September 30, 2017 | |||||
Total loans outstanding at end of period before deducting allowances for credit losses | $ | 577,598 | $ | 583,601 | |||
Average loans outstanding during period | 584,424 | 565,068 | |||||
Balance of allowance at beginning of period | 9,267 | 8,902 | |||||
Loans charged off: | |||||||
Real estate | (47 | ) | (2 | ) | |||
Commercial and industrial | (88 | ) | (106 | ) | |||
Installment and student loans | (16 | ) | (12 | ) | |||
Total loans charged off | (151 | ) | (120 | ) | |||
Recoveries of loans previously charged off: | |||||||
Real estate | 24 | 73 | |||||
Commercial and industrial | 1,086 | 195 | |||||
Installment and student loans | 271 | 132 | |||||
Total loan recoveries | 1,381 | 400 | |||||
Net loans recovered | 1,230 | 280 | |||||
Recovery of provision charged to operating expense | (1,699 | ) | (24 | ) | |||
Balance of allowance for credit losses at end of period | $ | 8,798 | $ | 9,158 | |||
Net loan recoveries to total average loans (annualized) | (0.28 | )% | (0.07 | )% | |||
Net loan recoveries to loans at end of period (annualized) | (0.28 | )% | (0.06 | )% | |||
Allowance for credit losses to total loans at end of period | 1.52 | % | 1.57 | % | |||
Net loan recoveries to allowance for credit losses (annualized) | (18.64 | )% | (4.08 | )% | |||
Recovery of provision for credit losses to net recoveries (annualized) | (184.17 | )% | (11.43 | )% |
(in 000's) | Balance | ||
December 31, 2016 | $ | 113,032 | |
September 30, 2017 | $ | 159,892 | |
December 31, 2017 | $ | 107,934 | |
September 30, 2018 | $ | 207,300 |
Ratio at September 30, 2018 | Ratio at December 31, 2017 | Minimum for Capital Adequacy (1) | Minimum requirement for "Well Capitalized" Institution | ||||
Total capital to risk weighted assets | |||||||
Company | 18.19% | 17.54% | 9.88% | N/A | |||
Bank | 18.02% | 17.31% | 9.88% | 10.00% | |||
Tier 1 capital to risk-weighted assets | |||||||
Company | 16.94% | 16.29% | 7.88% | N/A | |||
Bank | 16.77% | 16.06% | 7.88% | 8.00% | |||
Common equity tier 1 capital to risk-weighted assets | |||||||
Company | 15.46% | 14.81% | 6.38% | N/A | |||
Bank | 16.77% | 16.06% | 6.38% | 6.50% | |||
Tier 1 capital to adjusted average assets (leverage) | |||||||
Company | 12.96% | 13.01% | 5.88% | N/A | |||
Bank | 12.89% | 12.90% | 5.88% | 5.00% |
(a) | Exhibits: |
11 | Computation of Earnings per Share* |
31.1 | |
31.2 | |
32.1 | |
32.2 |
United Security Bancshares | ||
Date: | November 2, 2018 | /S/ Dennis R. Woods |
Dennis R. Woods | ||
President and Chief Executive Officer | ||
/S/ Bhavneet Gill | ||
Bhavneet Gill | ||
Senior Vice President and Chief Financial Officer |
Date: November 2, 2018 |
/S/ Dennis R. Woods |
Dennis R. Woods |
President and Chief Executive Officer |
Date: November 2, 2018 |
/S/ Bhavneet Gill |
Bhavneet Gill |
Senior Vice President and Chief Financial Officer |
/s/ Dennis R. Woods |
Dennis R. Woods |
President and Chief Executive Officer |
/s/ Bhavneet Gill |
Bhavneet Gill |
Senior Vice President and Chief Financial Officer |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Oct. 31, 2018 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | UNITED SECURITY BANCSHARES | |
Entity Central Index Key | 0001137547 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 16,903,290 |
Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Shareholders' Equity | ||
Common stock, par value (in dollars per share) | ||
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 16,903,290 | 16,885,615 |
Common stock, shares outstanding (in shares) | 16,903,290 | 16,885,615 |
Consolidated Statements of Income (Unaudited) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Interest Income: | ||||
Interest and fees on loans | $ 8,397,000 | $ 7,978,000 | $ 24,114,000 | $ 22,782,000 |
Interest on investment securities | 351,000 | 238,000 | 809,000 | 691,000 |
Interest on deposits in FRB | 806,000 | 375,000 | 1,870,000 | 858,000 |
Interest on deposits in other banks | 0 | 1,000 | 0 | 4,000 |
Total interest income | 9,554,000 | 8,592,000 | 26,793,000 | 24,335,000 |
Interest Expense: | ||||
Interest on deposits | 579,000 | 355,000 | 1,517,000 | 1,055,000 |
Interest on other borrowed funds | 112,000 | 80,000 | 311,000 | 223,000 |
Total interest expense | 691,000 | 435,000 | 1,828,000 | 1,278,000 |
Net Interest Income | 8,863,000 | 8,157,000 | 24,965,000 | 23,057,000 |
(Recovery of Provision) Provision for Credit Losses | (373,000) | 7,000 | (1,699,000) | (24,000) |
Net Interest Income after (Recovery of Provision) Provision for Credit Losses | 9,236,000 | 8,150,000 | 26,664,000 | 23,081,000 |
Noninterest Income: | ||||
Increase in cash surrender value of bank-owned life insurance | 132,000 | 134,000 | 389,000 | 400,000 |
Loss on marketable equity securities | (35,000) | 0 | (114,000) | 0 |
Gain on proceeds from bank-owned life insurance | 0 | 0 | 171,000 | 0 |
Loss on fair value of junior subordinated debentures | (262,000) | (88,000) | (923,000) | (688,000) |
Gain on sale of investment in limited partnership | 0 | 3,000 | 0 | 3,000 |
Gain on sale of assets | 0 | 0 | 29,000 | 0 |
Other | 199,000 | 168,000 | 601,000 | 539,000 |
Total noninterest income | 849,000 | 1,176,000 | 2,940,000 | 3,151,000 |
Noninterest Expense: | ||||
Salaries and employee benefits | 2,826,000 | 2,578,000 | 8,798,000 | 8,149,000 |
Occupancy expense | 1,121,000 | 1,087,000 | 3,256,000 | 3,144,000 |
Data processing | 13,000 | 29,000 | 104,000 | 81,000 |
Professional fees | 408,000 | 312,000 | 1,134,000 | 912,000 |
Regulatory assessments | 87,000 | 43,000 | 248,000 | 313,000 |
Director fees | 78,000 | 72,000 | 239,000 | 215,000 |
Correspondent bank service charges | 15,000 | 18,000 | 48,000 | 55,000 |
Loss (gain) on California tax credit partnership | 5,000 | (1,000) | 14,000 | 118,000 |
Net cost (gain) on operation and sale of OREO | 30,000 | 21,000 | 129,000 | (257,000) |
Other | 560,000 | 587,000 | 1,489,000 | 1,813,000 |
Total noninterest expense | 5,143,000 | 4,746,000 | 15,459,000 | 14,543,000 |
Income Before Provision for Taxes | 4,942,000 | 4,580,000 | 14,145,000 | 11,689,000 |
Provision for Taxes on Income | 1,424,000 | 1,840,000 | 4,077,000 | 4,685,000 |
Net Income | $ 3,518,000 | $ 2,740,000 | $ 10,068,000 | $ 7,004,000 |
Net Income per common share | ||||
Basic (in dollars per share) | $ 0.21 | $ 0.16 | $ 0.60 | $ 0.41 |
Diluted (in dollars per share) | $ 0.21 | $ 0.16 | $ 0.59 | $ 0.41 |
Shares on which net income per common shares were based | ||||
Basic (in shares) | 16,902,218 | 16,885,615 | 16,897,524 | 16,885,578 |
Diluted (in shares) | 16,954,053 | 16,907,267 | 16,933,477 | 16,904,063 |
Customer service fees | ||||
Noninterest Income: | ||||
Customer service fees | $ 815,000 | $ 959,000 | $ 2,787,000 | $ 2,897,000 |
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 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 3,518 | $ 2,740 | $ 10,068 | $ 7,004 |
Unrealized holdings (loss) gain on securities | (226) | 0 | (655) | 355 |
Unrealized gains on unrecognized post-retirement costs | 14 | 13 | 41 | 39 |
Unrealized (loss) gain on junior subordinated debentures | (14) | 0 | 280 | 0 |
Other comprehensive (loss) income, before tax | (226) | 13 | (334) | 394 |
Tax benefit (expense) related to securities | 67 | 0 | 195 | (142) |
Tax expense related to unrecognized post-retirement costs | (4) | (5) | (12) | (16) |
Tax benefit (expense) related to junior subordinated debentures | 4 | 0 | (83) | 0 |
Total other comprehensive (loss) income | (159) | 8 | (234) | 236 |
Comprehensive Income | $ 3,359 | $ 2,748 | $ 9,834 | $ 7,240 |
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Cash Flows From Operating Activities: | ||
Net Income | $ 10,068 | $ 7,004 |
Adjustments to reconcile net income: to cash provided by operating activities: | ||
Recovery of provision for credit losses | (1,699) | (24) |
Depreciation and amortization | 1,005 | 996 |
Amortization of investment securities | 409 | 406 |
Accretion of investment securities | (3) | (6) |
Increase in accrued interest receivable | (2,886) | (1,951) |
Increase (decrease) in accrued interest payable | 13 | (35) |
(Decrease) increase in accounts payable and accrued liabilities | (1,052) | 282 |
Decrease (increase) in unearned fees and unamortized loan origination costs, net | 556 | (142) |
Increase in income taxes receivable | (493) | (734) |
Unrealized loss on marketable equity securities | 114 | 0 |
Stock-based compensation expense | 592 | 78 |
Provision for deferred income taxes | (190) | (283) |
Gain on sale of other real estate owned | 0 | (336) |
Gain on bank owned life insurance | (171) | 0 |
Increase in cash surrender value of bank-owned life insurance | (389) | (400) |
Loss on fair value option of junior subordinated debentures | 923 | 688 |
Loss on tax credit limited partnership interest | 14 | 118 |
Gain on sale of premises and equipment | (29) | 0 |
Net decrease (increase) in other assets | 330 | (1,001) |
Net cash provided by operating activities | 7,112 | 4,660 |
Cash Flows From Investing Activities: | ||
Net increase in interest-bearing deposits with banks | 0 | (4) |
Purchase of correspondent bank stock | (23) | (495) |
Purchases of available-for-sale securities | (28,072) | 0 |
Maturities of available-for-sale securities | 0 | 3,000 |
Principal payments of available-for-sale securities | 7,157 | 6,091 |
Net decrease (increase) in loans | 25,385 | (12,346) |
Cash proceeds from sales of other real estate owned | 0 | 1,062 |
Investment in limited partnership | 0 | (1,075) |
Proceeds from bank owned life insurance | 376 | 0 |
Capital expenditures of premises and equipment | (715) | (1,020) |
Net cash provided by (used in) investing activities | 4,108 | (4,787) |
Cash Flows From Financing Activities: | ||
Net increase in demand deposits and savings accounts | 83,102 | 85,653 |
Net increase (decrease) in time deposits | 8,086 | (36,984) |
Proceeds from exercise of stock options | 0 | 6 |
Dividends on common stock | (3,042) | (1,688) |
Net cash provided by financing activities | 88,146 | 46,987 |
Net increase in cash and cash equivalents | 99,366 | 46,860 |
Cash and cash equivalents at beginning of period | 107,934 | 113,032 |
Cash and cash equivalents at end of period | $ 207,300 | $ 159,892 |
Organization and Summary of Significant Accounting and Reporting Policies |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting and Reporting Policies | Organization and Summary of Significant Accounting and Reporting Policies The consolidated financial statements include the accounts of United Security Bancshares, and its wholly owned subsidiary United Security Bank (the “Bank”) and one bank subsidiary, USB Investment Trust (the “REIT”) (collectively the “Company” or “USB”). Intercompany accounts and transactions have been eliminated in consolidation. These unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information on a basis consistent with the accounting policies reflected in the audited financial statements of the Company included in its 2017 Annual Report on Form 10-K. These interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of a normal, recurring nature) considered necessary for a fair presentation have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for any other interim period or for the year as a whole. Revenue from Contracts with Customers: The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. The Company adopted Topic 606 using the modified retrospective method on all contracts not completed as of January 1, 2018. The adoption of Topic 606 did not result in a material change to the accounting for any of the in-scope revenue streams. As such, no cumulative effect adjustment was recorded. Recently Issued Accounting Standards: In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. ASU 2016-01 was effective for the Company on January 1, 2018 and resulted in separate classification of equity securities previously included in available for sale securities on the consolidated balance sheets with changes in the fair value of the equity securities captured in the consolidated statements of income. See Note 2 – Investment Securities for disclosures related to equity securities. Adoption of the standard also resulted in the use of an exit price rather than an entrance price to determine the fair value of loans not measured at fair value on a non-recurring basis in the consolidated balance sheets. See Note 11 – Fair Value Disclosures for further information regarding the valuation of these loans. Additionally, adoption of the standard resulted in separately recognizing the instrument-specific credit risk associated with the Company's Junior Subordinated Debt. See Note 10 - Junior Subordinated Debt / Trust Preferred Securities for additional information. In February 2016, FASB issued ASU 2016-02, Leases (Topic 842). The FASB is issuing this Update to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB is amending the FASB Accounting Standards Codification® and creating Topic 842, Leases. This Update, along with IFRS 16, Leases, are the results of the FASB’s and the International Accounting Standards Board’s (IASB’s) efforts to meet that objective and improve financial reporting. This ASU will be effective for public business entities for annual periods beginning after December 15, 2018 (i.e., calendar periods beginning on January 1, 2019), and interim periods therein. In July 2018, FASB issued ASU 2018-11, Lease (Topic 842) Targeted Improvements. One of the purposes of this Update was to provide entities with an additional (and optional) transition method to adopt Topic 842. Under this transition method, an entity initially applies the transition requirements in Topic 842 at the effective date with the effects of initially applying Topic 842 recognized as a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. At this time the Company is considering the impact of the transition methods. Additionally, while a complete estimate of the impact of the new leasing standard has not yet been determined, the Company expects a significant new lease asset and related lease liability on the consolidated balance sheet due to the number of leased branches and standalone ATM sites the Company currently has that are accounted for under current operating lease guidance. The Company has selected a vendor to assist in the calculation and implementation of this standard and is in the beginning stages of calculating and assessing the impact of this Update. In June 2016, FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326). The FASB is issuing this Update to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The Update requires enhanced disclosures and judgments in estimating credit losses and also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. This amendment is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has established a project team for the implementation of this new standard. The team has started by working with a vendor to put a new Allowance for Loan Loss software in place and is collecting additional historical data to estimate the impact of this standard. An estimate of the impact of this standard has not yet been determined, however, the impact on the Company's consolidated financial statements is expected to be significant. In January 2017, FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). The FASB is issuing this Update to eliminate the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. This ASU will be effective for public business entities for annual periods beginning after December 15, 2019 (i.e. calendar periods beginning on January 1, 2020, and interim periods therein. The Company does not expect any impact on the Company's consolidated financial statements resulting from the adoption of this Update. In March 2017, FASB issued ASU 2017-08 - Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The provisions of the update require premiums recognized upon the purchase of callable debt securities to be amortized to the earliest call date in order to avoid losses recognized upon call. For public business entities that are SEC filers the amendments of the update will become effective in fiscal years beginning after December 15, 2018. The Company does not expect the requirements of this Update to have a material impact on the Company’s financial position, results of operations or cash flows. In August 2018, FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts within FASB's Concepts Statement, including the consideration of costs and benefits. The amendment calls for the removal, modification, and addition of certain disclosure aspects to promote the appropriate exercise of discretion by entities when considering fair value measurement disclosures. The amendments of the update will become effective in fiscal years beginning after December 15, 2019. The Company does not expect the requirements of this Update to have a material impact on the Company’s financial position, results of operations or cash flows. |
Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities Following is a comparison of the amortized cost and fair value of securities available-for-sale, as of September 30, 2018 and December 31, 2017:
The amortized cost and fair value of securities available for sale at September 30, 2018, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties. Contractual maturities on collateralized mortgage obligations cannot be anticipated due to allowed paydowns.
There were no realized gains or losses on sales of available-for-sale securities for the three and nine month periods ended September 30, 2018 and September 30, 2017. There were no other-than-temporary impairment losses for the three and nine month periods ended September 30, 2018 and September 30, 2017. At September 30, 2018, available-for-sale securities with an amortized cost of approximately $48,538,528 (fair value of $47,814,781) were pledged as collateral for FHLB borrowings, securitized deposits, and public funds balances. Management periodically evaluates each available-for-sale investment security in an unrealized loss position to determine if the impairment is temporary or other-than-temporary. The following summarizes temporarily impaired investment securities:
Temporarily impaired securities at September 30, 2018, were comprised of ten U.S. government agency securities, and thirteen U.S. government sponsored entities and agencies collateralized by mortgage obligations securities. The Company evaluates investment securities for other-than-temporary impairment (OTTI) at least quarterly, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities classified as available-for-sale or held-to-maturity are generally evaluated for OTTI under ASC Topic 320, Investments – Debt and Equity Instruments. Certain purchased beneficial interests, including non-agency mortgage-backed securities, asset-backed securities, and collateralized debt obligations, are evaluated under ASC Topic 325-40, Beneficial Interest in Securitized Financial Assets. In the first segment, the Company considers many factors in determining OTTI, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to the Company at the time of the evaluation. The second segment of the portfolio uses the OTTI guidance that is specific to purchased beneficial interests including private label mortgage-backed securities. Under this model, the Company compares the present value of the remaining cash flows as estimated at the preceding evaluation date to the current expected remaining cash flows. An OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. Additionally, other-than-temporary-impairment occurs when the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss. If the Company intends to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the other-than-temporary-impairment shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the other-than-temporary-impairment shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total other-than-temporary-impairment related to the credit loss is recognized in earnings, and is determined based on the difference between the present value of cash flows expected to be collected and the current amortized cost of the security. The amount of the total other-than-temporary-impairment related to other factors shall be recognized in other comprehensive (loss) income, net of applicable taxes. The previous amortized cost basis less the other-than-temporary-impairment recognized in earnings shall become the new amortized cost basis of the investment. At September 30, 2018, the decline in fair value of the ten U.S. government agency securities, and the thirteen U.S. government sponsored entities and agencies collateralized by mortgage obligations securities is attributable to changes in interest rates, and not credit quality. Because the Company does not have the intent to sell these impaired securities, and it is not more likely than not that it will be required to sell these securities before its anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at September 30, 2018. As of December 31, 2017, marketable equity securities with a fair value of $3,737,000 were recorded within investment securities available for sale with unrealized losses recorded through comprehensive income and accumulated other comprehensive income. As of January 1, 2018, the Company adopted Accounting Standard Update (“ASU”) 2016-01 and reclassified its marketable equity securities from investments available for sale into a separate component of investment securities. The ASU requires marketable equity securities to be reported at fair value with changes recorded through earnings. As of January 1, 2018, unrealized losses of $184,000 were reclassified from accumulated other comprehensive income to retained earnings. During the nine months ended September 30, 2018, the Company recognized $114,000 of unrealized losses related to equity securities held at September 30, 2018 in the consolidated statements of income. For the quarter ended September 30, 2018, the Company recognized $35,000 of unrealized losses related to equity securities held at September 30, 2018 in the consolidated statements of income. The resulting impact on basic and diluted earnings per share for the quarter and nine months ended September 30, 2018 is immaterial. The Company had no held-to-maturity or trading securities at September 30, 2018 or December 31, 2017. |
Loans |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Loans Loans are comprised of the following:
The Company's loans are predominantly in the San Joaquin Valley and the greater Oakhurst/East Madera County area, as well as the Campbell area of Santa Clara County. Although the Company does participate in loans with other financial institutions, they are primarily in the state of California. Commercial and industrial loans represent 9.6% of total loans at September 30, 2018 and are generally made to support the ongoing operations of small-to-medium sized commercial businesses. Commercial and industrial loans have a high degree of industry diversification and provide working capital, financing for the purchase of manufacturing plants and equipment, or funding for growth and general expansion of businesses. A substantial portion of commercial and industrial loans are secured by accounts receivable, inventory, leases, or other collateral including real estate. The remainder are unsecured; however, extensions of credit are predicated upon the financial capacity of the borrower. Repayment of commercial loans is generally from the cash flow of the borrower. Real estate mortgage loans, representing 48.7% of total loans at September 30, 2018, are secured by trust deeds on primarily commercial property, but are also secured by trust deeds on single family residences. Repayment of real estate mortgage loans generally comes from the cash flow of the borrower and or guarantor(s).
Real estate construction and development loans, representing 18.9% of total loans at September 30, 2018, consist of loans for residential and commercial construction projects, as well as land acquisition and development, or land held for future development. Loans in this category are secured by real estate including improved and unimproved land, as well as single-family residential, multi-family residential, and commercial properties in various stages of completion. All real estate loans have established equity requirements. Repayment on construction loans generally comes from long-term mortgages with other lending institutions obtained at completion of the project or from the sale of the constructed homes to individuals. Agricultural loans represent 10.3% of total loans at September 30, 2018 and are generally secured by land, equipment, inventory and receivables. Repayment is from the cash flow of the borrower. Installment loans, including student loans, represent 12.4% of total loans at September 30, 2018 and generally consist of student loans, loans to individuals for household, family and other personal expenditures, automobiles or other consumer items. Included in installment loans are $65,659,000 in unsecured student loans made to medical and pharmacy school students. The medical student loans are made to US citizens attending medical schools in the US and Antigua, while the pharmacy student loans are made to pharmacy students attending pharmacy school in the US. Upon graduation the loan is automatically placed on deferment for 6 months. This may be extended up to 48 months for graduates enrolling in Internship, Medical Residency or Fellowship. As approved the student may receive additional deferment for hardship or administrative reasons in the form of forbearance for a maximum of 24 months throughout the life of the loan. Accrued interest on loans that have not entered repayment status totaled $7,183,000 at September 30, 2018. At September 30, 2018 there were 332 loans within repayment, deferment, and forbearance which represented $6,896,000, $1,005,000, and $2,680,000 in outstanding balances, respectively. Prior to June 2018, student loans were insured through a Surety Bond issued by ReliaMax Surety Company and provided the Company reasonable expectation of collection. In June 2018, ReliaMax Surety Company was declared insolvent by the South Dakota Division of Insurance and is now in liquidation. As a result of the insolvency, the Company's student loan portfolio is no longer insured. In the normal course of business, the Company is party to financial instruments with off-balance sheet risk to meet the financing needs of its customers. At September 30, 2018 and December 31, 2017, these financial instruments include commitments to extend credit of $116,096,000 and $99,958,000, respectively, and standby letters of credit of $1,183,000 and $2,058,000, respectively. These instruments involve elements of credit risk in excess of the amount recognized on the consolidated balance sheet. The contract amounts of these instruments reflect the extent of the involvement the Company has in off-balance sheet financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amounts of those instruments. The Company uses the same credit policies as it does for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a customer, as long as there is no violation of any condition established in the contract. A majority of these commitments are at floating interest rates based on the Prime rate. Commitments generally have fixed expiration dates. The Company evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management's credit evaluation. Collateral held varies but includes accounts receivable, inventory, leases, property, plant and equipment, residential real estate and income-producing properties. Standby letters of credit are generally unsecured and are issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. During the second quarter of 2018, the Bank entered into a Small Business Administration (SBA) 504 Loan Forward Purchase Commitment to buy a one hundred percent (100%) interest in up to $30 million, first mortgage, California SBA 504 loans on a flow basis with servicing released by the Seller. Past Due Loans The Company monitors delinquency and potential problem loans on an ongoing basis through weekly reports to the Loan Committee and monthly reports to the Board of Directors. The following is a summary of delinquent loans at September 30, 2018 (in 000's):
The following is a summary of delinquent loans at December 31, 2017 (in 000's):
Nonaccrual Loans Commercial, construction and commercial real estate loans are placed on nonaccrual status under the following circumstances: - When there is doubt regarding the full repayment of interest and principal. - When principal and/or interest on the loan has been in default for a period of 90-days or more, unless the asset is both well secured and in the process of collection that will result in repayment in the near future. - When the loan is identified as having loss elements and/or is risk rated "8" Doubtful. Other circumstances which jeopardize the ultimate collectability of the loan including certain troubled debt restructurings, identified loan impairment, and certain loans to facilitate the sale of OREO. Loans meeting any of the preceding criteria are placed on nonaccrual status and the accrual of interest for financial statement purposes is discontinued. Previously accrued but unpaid interest is reversed and charged against interest income. All loans, outside of student loans, where principal or interest is due and unpaid for 90 days or more are placed on nonaccrual and the accrual of interest for financial statement purposes is discontinued. Previously accrued but unpaid interest is reversed and charged against interest income. Student loans are generally charged off at the end of the month during which an account becomes 120 days contractually past due. Accrued but unpaid interest related to charged off student loans is reversed and charged against interest income. When a loan is placed on nonaccrual status and subsequent payments of interest (and principal) are received, the interest received may be accounted for in two separate ways. Cost recovery method: If the loan is in doubt as to full collection, the interest received in subsequent payments is diverted from interest income to a valuation reserve and treated as a reduction of principal for financial reporting purposes. Cash basis: This method is only used if the recorded investment or total contractual amount is expected to be fully collectible, under which circumstances the subsequent payments of interest are credited to interest income as received. Loans on non-accrual status are usually not returned to accrual status unless all delinquent principal and/or interest has been brought current, there is no identified element of loss, and current and continued satisfactory performance is expected (loss of the contractual amount not the carrying amount of the loan). Return to accrual is generally demonstrated through the timely receipt of at least six monthly payments on a loan with monthly amortization. Nonaccrual loans totaled $12,106,000 and $5,296,000 at September 30, 2018 and December 31, 2017, respectively. Two loans were added to nonaccrual during the quarter ended June 30, 2018. Those loans, totaling $8,825,000, were made to the same borrower and are well-secured by real estate collateral. There were no remaining undisbursed commitments to extend credit on nonaccrual loans at September 30, 2018 or December 31, 2017. The following is a summary of nonaccrual loan balances at September 30, 2018 and December 31, 2017 (in 000's).
Impaired Loans A loan is considered impaired when based on current information and events, it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the loan agreement. The Company applies its normal loan review procedures in making judgments regarding probable losses and loan impairment. The Company evaluates for impairment those loans on nonaccrual status, graded doubtful, graded substandard or those that are troubled debt restructures. The primary basis for inclusion in impaired status under generally accepted accounting pronouncements is that it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. A loan is not considered impaired if there is merely an insignificant delay or shortfall in the amounts of payments and the Company expects to collect all amounts due, including interest accrued, at the contractual interest rate for the period of the delay. Review for impairment does not include large groups of smaller balance homogeneous loans that are collectively evaluated to estimate the allowance for loan losses. The Company’s present allowance for loan losses methodology, including migration analysis, captures required reserves for these loans in the formula allowance. For loans determined to be impaired, the Company evaluates impairment based upon either the fair value of underlying collateral, discounted cash flows of expected payments, or observable market price.
The method for recognizing interest income on impaired loans is dependent on whether the loan is on nonaccrual status or is a troubled debt restructure. For income recognition, the existing nonaccrual and troubled debt restructuring policies are applied to impaired loans. Generally, except for certain troubled debt restructurings which are performing under the restructure agreement, the Company does not recognize interest income received on impaired loans, but reduces the carrying amount of the loan for financial reporting purposes. Loans other than certain homogeneous loan portfolios are reviewed on a quarterly basis for impairment. Impaired loans are written down to estimated realizable values by the establishment of specific reserves for loan utilizing the discounted cash flow method, or charge-offs for collateral-based impaired loans, or those using observable market pricing. The following is a summary of impaired loans at September 30, 2018 (in 000's).
(1) The recorded investment in loans includes accrued interest receivable of $30. (2) Information is based on the nine month period ended September 30, 2018. The following is a summary of impaired loans at December 31, 2017 (in 000's).
(1) The recorded investment in loans includes accrued interest receivable of $62. (2) Information is based on the twelve month period ended December 31, 2017. In most cases, the Company uses the cash basis method of income recognition for impaired loans. In the case of certain troubled debt restructurings for which the loan is performing under the current contractual terms for a reasonable period of time, income is recognized under the accrual method. The average recorded investment in impaired loans for the quarters ended September 30, 2018 and 2017 was $19,469,000 and $15,681,000, respectively. Interest income recognized on impaired loans for the quarters ended September 30, 2018 and 2017 was approximately $173,000 and $192,000, respectively. For impaired nonaccrual loans, interest income recognized under a cash-basis method of accounting was approximately $64,000 and $70,000 for the quarters ended September 30, 2018 and 2017, respectively. The average recorded investment in impaired loans for the nine months ended September 30, 2018 and 2017 was $16,825,000 and $16,366,000, respectively. Interest income recognized on impaired loans for the nine months ended September 30, 2018 and 2017 was approximately $625,000 and $738,000, respectively. For impaired nonaccrual loans, interest income recognized under a cash-basis method of accounting was approximately $277,000 and $260,000 for the nine months ended September 30, 2018 and 2017, respectively. Troubled Debt Restructurings In certain circumstances, when the Company grants a concession to a borrower as part of a loan restructuring, the restructuring is accounted for as a troubled debt restructuring (TDR). TDRs are reported as a component of impaired loans. A TDR is a type of restructuring in which the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession (either imposed by court order, law, or agreement between the borrower and the Bank) to the borrower that it would not otherwise consider. Although the restructuring may take different forms, the Company's objective is to maximize recovery of its investment by granting relief to the borrower. A TDR may include, but is not limited to, one or more of the following: - A transfer from the borrower to the Company of receivables from third parties, real estate, other assets, or an equity interest in the borrower is granted to fully or partially satisfy the loan. - A modification of terms of a debt such as one or a combination of:
For a restructured loan to return to accrual status there needs to be, among other factors, at least 6 months successful payment history and continued satisfactory performance is expected. To this end, the Company typically performs a financial analysis of the credit to determine whether the borrower has the ability to continue to meet payments over the remaining life of the loan. This includes, but is not limited to, a review of financial statements and cash flow analysis of the borrower. Only after determination that the borrower has the ability to perform under the terms of the loans, will the restructured credit be considered for accrual status. Although the Company does not have a policy which specifically addresses when a loan may be removed from TDR classification, as a matter of practice, loans classified as TDRs generally remain classified as such until the loan either reaches maturity or its outstanding balance is paid off. The following tables illustrates TDR additions for the periods indicated:
The Company makes various types of concessions when structuring TDRs including rate discounts, payment extensions, and other-than-temporary forbearance. At September 30, 2018, the Company had 17 restructured loans totaling $7,402,000 as compared to 25 restructured loans totaling $11,362,000 at December 31, 2017. The following tables summarize TDR activity by loan category for the quarters ended September 30, 2018 and September 30, 2017 (in 000's).
The following tables summarize TDR activity by loan category for the nine months ended September 30, 2018 and September 30, 2017 (in 000's).
Credit Quality Indicators As part of its credit monitoring program, the Company utilizes a risk rating system which quantifies the risk the Company estimates it has assumed during the life of a loan. The system rates the strength of the borrower and the facility or transaction, and is designed to provide a program for risk management and early detection of problems. For each new credit approval, credit extension, renewal, or modification of existing credit facilities, the Company assigns risk ratings utilizing the rating scale identified in this policy. In addition, on an on-going basis, loans and credit facilities are reviewed for internal and external influences impacting the credit facility that would warrant a change in the risk rating. Each credit facility is to be given a risk rating that takes into account factors that materially affect credit quality. When assigning risk ratings, the Company evaluates two risk rating approaches, a facility rating and a borrower rating as follows: Facility Rating: The facility rating is determined by the analysis of positive and negative factors that may indicate that the quality of a particular loan or credit arrangement requires that it be rated differently from the risk rating assigned to the borrower. The Company assesses the risk impact of these factors: Collateral - The rating may be affected by the type and quality of the collateral, the degree of coverage, the economic life of the collateral, liquidation value and the Company's ability to dispose of the collateral. Guarantees - The value of third party support arrangements varies widely. Unconditional guaranties from persons with demonstrable ability to perform are more substantial than that of closely related persons to the borrower who offer only modest support. Unusual Terms - Credit may be extended on terms that subject the Company to a higher level of risk than indicated in the rating of the borrower. Borrower Rating: The borrower rating is a measure of loss possibility based on the historical, current and anticipated financial characteristics of the borrower in the current risk environment. To determine the rating, the Company considers at least the following factors: - Quality of management - Liquidity - Leverage/capitalization - Profit margins/earnings trend - Adequacy of financial records - Alternative funding sources - Geographic risk - Industry risk - Cash flow risk - Accounting practices - Asset protection - Extraordinary risks The Company assigns risk ratings to loans other than consumer loans and other homogeneous loan pools based on the following scale. The risk ratings are used when determining borrower ratings as well as facility ratings. When the borrower rating and the facility ratings differ, the lowest rating applied is:
The Company did not carry any loans graded as loss at September 30, 2018 or December 31, 2017. The following tables summarize the credit risk ratings for commercial, construction, and other non-consumer related loans for September 30, 2018 and December 31, 2017:
The Company follows consistent underwriting standards outlined in its loan policy for consumer and other homogeneous loans but, does not specifically assign a risk rating when these loans are originated. Consumer loans are monitored for credit risk and are considered “pass” loans until some issue or event requires that the credit be downgraded to special mention or worse. The following tables summarize the credit risk ratings for consumer related loans and other homogeneous loans for September 30, 2018 and December 31, 2017:
The following tables summarize the credit quality indicators for outstanding student loans as of September 30, 2018 and December 31, 2017 (in 000's, except for number of borrowers):
School - The time in which the borrower is still actively in school at least half time. No payments are expected during this stage, though the borrower may begin immediate payments. Grace - A six month period of time granted to the borrower immediately upon graduation, or if deemed no longer an active student. Interest continues to accrue. Upon completion of the six month grace period the loan is transferred to repayment status. Additionally, if applicable, this status may represent a borrower activated to military duty while in their in-school period, they will be allowed to return to that status once their active duty has expired. The borrower must return to an at least half time status within six months of the active duty end date in order to return to an in-school status. Repayment - The time in which the borrower is no longer actively in school at least half time, and has not received an approved grace, deferment, or forbearance. Regular payment is expected from these borrowers under an allotted payment plan. Deferment - May be granted up to 48 months for borrowers who have begun the repayment period on their loans but are (1) actively enrolled in an eligible school at least half time, or (2) are actively enrolled in an approved and verifiable medical residency, internship, or fellowship program. Forbearance - The period of time during which the borrower may postpone making principal and interest payments, which may be granted for either hardship or administrative reasons. Interest will continue to accrue on loans during periods of authorized forbearance. If the borrower is delinquent at the time the forbearance is granted, the delinquency will be covered by the forbearance and all accrued and unpaid interest from the date of delinquency or if none, from the date of beginning of the forbearance period, will be capitalized at the end of each forbearance period. The term of the loan will not change and payments may be increased to allow the loan to pay off in the required time frame. A forbearance that results in only a delay in payment considered insignificant, is not a concessionary change in terms provided the borrower affirms the obligation. Forbearance is not an uncommon status designation, this designation is standard industry practice, and is consistent with the succession of students migrating to employed medical professionals. Claim - Occurs after a loan has been delinquent for a period of time in which the servicer believes payment may not be received. A claim can be filed at any point in the delinquency, but typically not until 180 - 210 days. ReliaMax Surety Company was declared insolvent by the South Dakota Division of Insurance and is now in liquidation. No future claims will be filed with ReliaMax. Allowance for Loan Losses The Company analyzes risk characteristics inherent in each loan portfolio segment as part of the quarterly review of the adequacy of the allowance for loan losses. The following summarizes some of the key risk characteristics for the ten segments of the loan portfolio (Consumer loans include three segments): Commercial and industrial loans – Commercial loans are subject to the effects of economic cycles and tend to exhibit increased risk as economic conditions deteriorate, or if the economic downturn is prolonged. The Company considers this segment to be one of higher risk given the size of individual loans and the balances in the overall portfolio. Government program loans – This is a relatively a small part of the Company’s loan portfolio, but has historically had a high percentage of loans that have migrated from pass to substandard given their vulnerability to economic cycles. Commercial real estate loans – This segment is considered to have more risk in part because of the vulnerability of commercial businesses to economic cycles as well as the exposure to fluctuations in real estate prices because most of these loans are secured by real estate. Losses in this segment have however been historically low because most of the loans are real estate secured, and the bank maintains appropriate loan-to-value ratios. Residential mortgages – This segment is considered to have low risk factors both from the Company and peer statistics. These loans are secured by first deeds of trust. The losses experienced over the past sixteen quarters are isolated to approximately five loans and are generally the result of short sales. Home improvement and home equity loans – Because of their junior lien position, these loans have an inherently higher risk level. Because residential real estate has been severely distressed in the recent past, the anticipated risk for this loan segment has increased. Real estate construction and development loans –This segment of loans is considered to have a higher risk profile due to construction and market value issues in conjunction with normal credit risks. Agricultural loans – This segment is considered to have risks associated with weather, insects, and marketing issues. In addition, concentrations in certain crops or certain agricultural areas can increase risk. Installment and student loans (Includes consumer loans, student loans, overdrafts, and overdraft protection lines) – This segment is higher risk because many of the loans are unsecured. Additionally, in the case of student loans, there are increased risks associated with liquidity as there is a significant time lag between funding of a student loan and eventual repayment. The Company is still evaluating the impact of ReliaMax's insolvency and the elimination of the Surety Bond on the Company's allowance for loan loss related to student loans. The general provision related to installment and student loans increased due to an increase in student loan delinquencies during the three months ended September 30, 2018. These past due borrowers are students of the University of Health Sciences Antigua with residences in Puerto Rico. As of September 30, 2018, many of these loans were past due, and the loan servicer had been unable to make contact with these individuals. As such, the loans associated with these past due borrowers were migrated to special mention with a $565,000 reserve established. The Company will continue to monitor these loans and intends to migrate these loans from a transitory status (special mention) once information is received to make an appropriate status code and accounting determination including but not limited to risk grade, accrual status, and TDR designation. The area in which these students reside were stuck by Hurricane Maria during September 2017, devastating the island and plunging the residents into a humanitarian crisis. The following summarizes the activity in the allowance for credit losses by loan category for the quarters ended September 30, 2018 and 2017 (in 000's).
The following summarizes the activity in the allowance for credit losses by loan category for the nine months ended September 30, 2018 and 2017 (in 000's).
The following summarizes information with respect to the loan balances at September 30, 2018 and 2017.
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Deposits |
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Deposits | Deposits Deposits include the following:
* CDARs reciprocal deposits are no longer considered brokered deposits for the Company. |
Short-term Borrowings/Other Borrowings |
9 Months Ended |
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Sep. 30, 2018 | |
Short term Borrowings/Other Borrowings [Abstract] | |
Short-term Borrowings/Other Borrowings | Short-term Borrowings/Other Borrowings At September 30, 2018, the Company had collateralized lines of credit with the Federal Reserve Bank of San Francisco totaling $295,622,000, as well as Federal Home Loan Bank (FHLB) lines of credit totaling $4,359,000. At September 30, 2018, the Company had an uncollateralized line of credit with Pacific Coast Bankers Bank ("PCBB") totaling $10,000,000, a Fed Funds line of $10,000,000 with Union Bank, and a Fed Funds line of $20,000,000 with Zions First National Bank. All lines of credit are on an “as available” basis and can be revoked by the grantor at any time. These lines of credit have interest rates that are generally tied to the Federal Funds rate or are indexed to short-term U.S. Treasury rates or LIBOR. FHLB advances are collateralized by the Company’s stock in the FHLB, investment securities, and certain qualifying mortgage loans. As of September 30, 2018, $4,600,000 in investment securities at FHLB were pledged as collateral for FHLB advances. Additionally, $430,409,000 in secured and unsecured loans were pledged at September 30, 2018, as collateral for borrowing lines with the Federal Reserve Bank. At September 30, 2018, the Company had no outstanding borrowings. At December 31, 2017, the Company had collateralized lines of credit with the Federal Reserve Bank of San Francisco totaling $305,236,000, as well as Federal Home Loan Bank (“FHLB”) lines of credit totaling $13,363,000. At December 31, 2017, the Company had an uncollateralized line of credit with Pacific Coast Bankers Bank ("PCBB") and Union Bank totaling $10,000,000 each, with a Fed Funds line of $20,000,000 at Zions First National Bank. All lines of credit are on an “as available” basis and can be revoked by the grantor at any time. These lines of credit generally have interest rates tied to the Federal Funds rate or are indexed to short-term U.S. Treasury rates or LIBOR. FHLB advances are collateralized by the Company’s stock in the FHLB, investment securities, and certain qualifying mortgage loans. As of December 31, 2017, $17,049,000 in investment securities at FHLB were pledged as collateral for FHLB advances. Additionally, $473,364,000 in secured and unsecured loans were pledged at December 31, 2017, as collateral for used and unused borrowing lines with the Federal Reserve Bank. At December 31, 2017, the Company had no outstanding borrowings. |
Supplemental Cash Flow Disclosures |
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Supplemental Cash Flow Disclosures | Supplemental Cash Flow Disclosures
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Dividends on Common Stock |
9 Months Ended |
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Sep. 30, 2018 | |
Equity [Abstract] | |
Dividends on Common Stock | Dividends on Common Stock On March 27, 2018, the Company’s Board of Directors declared a cash dividend of $0.09 per share on the Company's common stock. The dividend was payable on April 19, 2018, to shareholders of record as of April 9, 2018. Approximately $1,521,000 was transfered from retained earnings to dividends payable to allow for distribution of the dividend to shareholders. On June 26, 2018, the Company's Board of Directors declared a regular quarterly cash dividend of $0.09 per share on the Company's common stock. The dividend was payable on July 19, 2018, to shareholders of record as of July 9, 2018. Approximately $1,521,000 was transfered from retained earnings to dividends payable to allow for distribution of the dividend to shareholders. On September 25, 2018, the Company's Board of Directors declared a regular quarterly cash dividend of $0.10 per share on the Company's common stock. The dividend was payable on October 19, 2018, to shareholders of record as of October 9, 2018. Approximately $1,690,000 was transfered from retained earnings to dividends payable to allow for distribution of the dividend to shareholders. During 2017, the Board of Directors authorized the repurchase of up to $3 million of the outstanding common stock of the Company. The timing of the purchases will depend on certain factors, including but not limited to, market conditions and prices, available funds, and alternative uses of capital. The stock repurchase program may be carried out through open-market purchases, block trades, or negotiated private transactions. At this time, no shares have been repurchased. |
Net Income per Common Share |
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Net Income per Common Share | Net Income per Common Share The following table provides a reconciliation of the numerator and the denominator of the basic EPS computation with the numerator and the denominator of the diluted EPS computation:
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Taxes on Income |
9 Months Ended |
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Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | Taxes on Income The Company periodically reviews its tax positions under the accounting standards related to uncertainty in income taxes, which defines the criteria that an individual tax position would have to meet for some or all of the income tax benefit to be recognized in a taxable entity’s financial statements. Under the guidelines, an entity should recognize the financial statement benefit of a tax position if it determines that it is more likely than not that the position will be sustained on examination. The term “more likely than not” means a likelihood of more than 50 percent. In assessing whether the more-likely-than-not criterion is met, the entity should assume that the tax position will be reviewed by the applicable taxing authority and all available information is known to the taxing authority. The Company periodically evaluates its deferred tax assets to determine whether a valuation allowance is required based upon a determination that some or all of the deferred assets may not be ultimately realized. At September 30, 2018 and December 31, 2017, the Company had no recorded valuation allowance. The Company and its subsidiary file income tax returns in the U.S federal jurisdiction, and several states within the U.S. There are no filings in foreign jurisdictions. During 2014, the Company began the process to amend its state tax returns for the years 2009 through 2012 to file a combined report on a unitary basis with the Company and USB Investment Trust. The amended return for 2009 was filed during 2014, the 2010 return was filed during 2015, and the amended returns for 2011 and 2012 were filed in 2016. The Company is no longer subject to IRS examination for years before 2015. The Company's policy is to recognize any interest or penalties related to uncertain tax positions in income tax expense. Interest and penalties recognized during the periods ended September 30, 2018 and 2017 were insignificant. The Company reported a provision for income taxes of $4,077,000 for the nine months ended September 30, 2018 as compared to the $4,685,000 provision reported in the comparable period of 2017. The effective tax rate was 28.82% for the nine months ended September 30, 2018 as compared to 40.08% for the comparable period of 2017. For the three months ended September 30, 2018, the Company reported a provision for income taxes of $1,424,000 as compared to the $1,840,000 provision reported in the comparable period of 2017. The effective tax rate was 28.81% for the three months ended September 30, 2018 as compared to 40.17% for the comparable period of 2017. The disparity between the effective tax rates noted above for 2018 as compared to 2017 is primarily due to a decrease in the federal corporate tax rate from 34% in 2017 to 21% in 2018 related to the Tax Cuts and Jobs Act of 2017. |
Junior Subordinated Debt/Trust Preferred Securities |
9 Months Ended |
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Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Junior Subordinated Debt/Trust Preferred Securities | Junior Subordinated Debt/Trust Preferred Securities Effective September 30, 2009 and beginning with the quarterly interest payment due October 1, 2009, the Company elected to defer interest payments on the Company's $15.0 million of junior subordinated debentures relating to its trust preferred securities. The terms of the debentures and trust indentures allow for the Company to defer interest payments for up to 20 consecutive quarters without default or penalty. During the period that the interest deferrals were elected, the Company continued to record interest expense associated with the debentures. As of June 30, 2014, the Company ended the extension period, paid all accrued and unpaid interest, and is currently making quarterly interest payments. The Company may redeem the junior subordinated debentures at any time at par. During August 2015, the Bank purchased $3.0 million of the Company's junior subordinated debentures related to the Company's trust preferred securities at a fair value discount of 40%. Subsequently, in September 2015, the Company purchased those shares from the Bank and canceled $3.0 million in par value of the junior subordinated debentures, realizing a $78,000 gain on redemption. The contractual principal balance of the Company's debentures relating to its trust preferred securities is $12.0 million as of September 30, 2018. The fair value guidance generally permits the measurement of selected eligible financial instruments at fair value at specified election dates. Effective January 1, 2008, the Company elected the fair value option for its junior subordinated debt issued under USB Capital Trust II. The Company believes the election of fair value accounting for the junior subordinated debentures better reflects the true economic value of the debt instrument on the balance sheet. The rate paid on the junior subordinated debt issued under USB Capital Trust II is 3-month LIBOR plus 129 basis points, and is adjusted quarterly. Effective January 1, 2018, the Company elected ASU 2016-01 which modified the recognition and measurement of Financial Assets and Liabilities. Upon adoption of the standard, the fair value determined for the period would be separately presented in other comprehensive income the portion of the total change in the fair value resulting from a change in the instrument-specific credit risk. As of January 1, 2018 a cumulative effect adjustment of $1,482,000 was made to accumulated other comprehensive income. At September 30, 2018 the Company performed a fair value measurement analysis on its junior subordinated debt using a cash flow model approach to determine the present value of those cash flows. The cash flow model utilizes the forward 3-month LIBOR curve to estimate future quarterly interest payments due over the thirty-year life of the debt instrument. These cash flows were discounted at a rate which incorporates a current market rate for similar-term debt instruments, adjusted for additional credit and liquidity risks associated with the junior subordinated debt. We believe the 6.05% discount rate used represents what a market participant would consider under the circumstances based on current market assumptions. At September 30, 2018, the total cumulative gain recorded on the debt is $2,171,000. The net fair value calculation performed as of September 30, 2018 resulted in a pretax loss adjustment of $643,000 for the nine months ended September 30, 2018, compared to a pretax loss adjustment of $688,000 ($405,000, net of tax) for the nine months ended September 30, 2017. As part of the adoption of ASU 2016-01, for the nine months ended September 30, 2018, net fair value gains and losses are separately identified as the portion attributed to non-instrument specific credit risk, recognized as a component of noninterest income on the consolidated statements of income, and instrument specific credit risk, recognized in other comprehensive income. For the nine months ended September 30, 2018, the net $643,000 fair value loss adjustment was separately presented as a $923,000 loss ($650,000, net of tax) recognized on the consolidated statements of income, and a $280,000 gain ($197,000, net of tax) associated with the instrument specific credit risk recognized in other comprehensive income. The adoption of ASU 2016-01's resulting impact on basic and diluted earnings per share was $0.01. The net fair value calculation performed at September 30, 2018 resulted in a pretax loss adjustment of $277,000 for the three months ended September 30, 2018, compared to a pretax loss adjustment of $88,000 ($52,000, net of tax) for the three months ended September 30, 2017. As part of the adoption of ASU 2016-01, for the three months ended September 30, 2018, net fair value gains and losses are separately identified as the portion attributed to non-instrument specific credit risk, recognized as a component of noninterest income on the consolidated statements of income, and instrument specific credit risk, recognized in other comprehensive income. For the three months ended September 30, 2018, the net $277,000 fair value loss adjustment was separately presented as a $262,000 loss ($185,000, net of tax) recognized on the consolidated statements of income, and a $14,000 loss ($10,000, net of tax) associated with the instrument specific credit risk recognized in other comprehensive income. The adoption of ASU 2016-01's resulting impact on basic and diluted earnings per share was less than $0.01. |
Fair Value Measurements and Disclosure |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements and Disclosure | Fair Value Measurements and Disclosure The following summary disclosures are made in accordance with the guidance provided by ASC Topic 825, Fair Value Measurements and Disclosures (formerly Statement of Financial Accounting Standards No. 107, Disclosures about Fair Value of Financial Instruments), which requires the disclosure of fair value information about both on- and off-balance sheet financial instruments where it is practicable to estimate that value. Generally accepted accounting guidance clarifies the definition of fair value, describes methods used to appropriately measure fair value in accordance with generally accepted accounting principles and expands fair value disclosure requirements. This guidance applies whenever other accounting pronouncements require or permit fair value measurements. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels (Level 1, Level 2, and Level 3). Level 1 inputs are unadjusted quoted prices in active markets (as defined) for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability, and reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). In accordance with the prospective adoption of ASU No. 2016-01, the fair value of loans as of September 30, 2018 was measured using an exit price notion. The fair value of loans as of December 31, 2017 was measured using an entry price notion. The table below is a summary of fair value estimates for financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized at the periods indicated:
The Company performs fair value measurements on certain assets and liabilities as the result of the application of current accounting guidelines. Some fair value measurements, such as investment securities and junior subordinated debt are performed on a recurring basis, while others, such as impairment of loans, other real estate owned, goodwill and other intangibles, are performed on a nonrecurring basis. The Company’s Level 1 financial assets consist of money market funds and highly liquid mutual funds for which fair values are based on quoted market prices. The Company’s Level 2 financial assets include highly liquid debt instruments of U.S. government agencies, collateralized mortgage obligations, and debt obligations of states and political subdivisions, whose fair values are obtained from readily-available pricing sources for the identical or similar underlying security that may, or may not, be actively traded. The Company’s Level 3 financial assets include certain instruments where the assumptions may be made by us or third parties about assumptions that market participants would use in pricing the asset or liability. From time to time, the Company recognizes transfers between Level 1, 2, and 3 when a change in circumstances warrants a transfer. There were no transfers in or out of Level 1 and Level 2 fair value measurements during the three month period ended September 30, 2018. The following methods and assumptions were used in estimating the fair values of financial instruments measured at fair value on a recurring and non-recurring basis: Investment Securities – Available for sale and marketable equity securities are valued based upon open-market price quotes obtained from reputable third-party brokers that actively make a market in those securities. Market pricing is based upon specific CUSIP identification for each individual security. To the extent there are observable prices in the market, the mid-point of the bid/ask price is used to determine fair value of individual securities. If that data is not available for the last 30 days, a Level 2-type matrix pricing approach based on comparable securities in the market is utilized. Level 2 pricing may include using a forward spread from the last observable trade or may use a proxy bond like a TBA mortgage to come up with a price for the security being valued. Changes in fair market value are recorded through other comprehensive loss as the securities are available for sale. Impaired Loans - Fair value measurements for collateral dependent impaired loans are performed pursuant to authoritative accounting guidance and are based upon either collateral values supported by appraisals and observed market prices. Collateral dependent loans are measured for impairment using the fair value of the collateral. Changes are recorded directly as an adjustment to current earnings. Other Real Estate Owned - Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate owned (OREO) are measured at the lower of carrying amount or fair value, less costs to sell. Fair values are generally based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. Junior Subordinated Debt – The fair value of the junior subordinated debt was determined based upon a discounted cash flows model utilizing observable market rates and credit characteristics for similar debt instruments. In its analysis, the Company used characteristics that market participants generally use, and considered factors specific to (a) the liability, (b) the principal (or most advantageous) market for the liability, and (c) market participants with whom the reporting entity would transact in that market. Cash flows are discounted at a rate which incorporates a current market rate for similar-term debt instruments, adjusted for credit and liquidity risks associated with similar junior subordinated debt and circumstances unique to the Company. The Company believes that the subjective nature of theses inputs, due primarily to the current economic environment, require the junior subordinated debt to be classified as a Level 3 fair value. The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring basis at September 30, 2018 and December 31, 2017:
Management believes that the credit risk adjusted spread utilized in the fair value measurement of the junior subordinated debentures carried at fair value is indicative of the nonperformance risk premium a willing market participant would require under current market conditions, that is, the inactive market. Management attributes the change in fair value of the junior subordinated debentures during the period to market changes in the nonperformance expectations and pricing of this type of debt, and not as a result of changes to our entity-specific credit risk. The narrowing of the credit risk adjusted spread above the Company’s contractual spreads has primarily contributed to the negative fair value adjustments. Generally, an increase in the credit risk adjusted spread and/or a decrease in the three month LIBOR swap curve will result in positive fair value adjustments (and decrease the fair value measurement). Conversely, a decrease in the credit risk adjusted spread and/or an increase in the three month LIBOR swap curve will result in negative fair value adjustments (and increase the fair value measurement). The increase in discount rate between the periods ended September 30, 2018 and December 31, 2017 is primarily due to increases in rates for similar debt instruments. The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of September 30, 2018 (in 000’s):
(1)Nonrecurring (2)Recurring The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2017 (in 000’s):
(1)Nonrecurring (2)Recurring The Company did not record a write-down on other real estate owned during the nine months ended September 30, 2018 or the year ended December 31, 2017. There were no assets measured at fair value on a non-recurring basis for the year ended December 31, 2017. The following tables provide a reconciliation of assets and liabilities at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and nine months ended September 30, 2018 and 2017 (in 000’s):
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Goodwill and Intangible Assets |
9 Months Ended |
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Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets At September 30, 2018, the Company had goodwill in the amount of $4,488,000 in connection with various business combinations and purchases. This amount was unchanged from the balance of $4,488,000 at December 31, 2017. While goodwill is not amortized, the Company does conduct periodic impairment analysis on goodwill at least annually or more often as conditions require. The Company performed its analysis of goodwill impairment and concluded goodwill was not impaired at September 30, 2018. |
Accumulated Other Comprehensive Income |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The components of accumulated other comprehensive income, included in shareholders’ equity, are as follows:
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Subsequent Events |
9 Months Ended |
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Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 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. Nonrecognized 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 consolidated financial statements were issued and have identified no subsequent events requiring disclosure. |
Organization and Summary of Significant Accounting and Reporting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards: In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. ASU 2016-01 was effective for the Company on January 1, 2018 and resulted in separate classification of equity securities previously included in available for sale securities on the consolidated balance sheets with changes in the fair value of the equity securities captured in the consolidated statements of income. See Note 2 – Investment Securities for disclosures related to equity securities. Adoption of the standard also resulted in the use of an exit price rather than an entrance price to determine the fair value of loans not measured at fair value on a non-recurring basis in the consolidated balance sheets. See Note 11 – Fair Value Disclosures for further information regarding the valuation of these loans. Additionally, adoption of the standard resulted in separately recognizing the instrument-specific credit risk associated with the Company's Junior Subordinated Debt. See Note 10 - Junior Subordinated Debt / Trust Preferred Securities for additional information. In February 2016, FASB issued ASU 2016-02, Leases (Topic 842). The FASB is issuing this Update to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB is amending the FASB Accounting Standards Codification® and creating Topic 842, Leases. This Update, along with IFRS 16, Leases, are the results of the FASB’s and the International Accounting Standards Board’s (IASB’s) efforts to meet that objective and improve financial reporting. This ASU will be effective for public business entities for annual periods beginning after December 15, 2018 (i.e., calendar periods beginning on January 1, 2019), and interim periods therein. In July 2018, FASB issued ASU 2018-11, Lease (Topic 842) Targeted Improvements. One of the purposes of this Update was to provide entities with an additional (and optional) transition method to adopt Topic 842. Under this transition method, an entity initially applies the transition requirements in Topic 842 at the effective date with the effects of initially applying Topic 842 recognized as a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. At this time the Company is considering the impact of the transition methods. Additionally, while a complete estimate of the impact of the new leasing standard has not yet been determined, the Company expects a significant new lease asset and related lease liability on the consolidated balance sheet due to the number of leased branches and standalone ATM sites the Company currently has that are accounted for under current operating lease guidance. The Company has selected a vendor to assist in the calculation and implementation of this standard and is in the beginning stages of calculating and assessing the impact of this Update. In June 2016, FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326). The FASB is issuing this Update to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The Update requires enhanced disclosures and judgments in estimating credit losses and also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. This amendment is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has established a project team for the implementation of this new standard. The team has started by working with a vendor to put a new Allowance for Loan Loss software in place and is collecting additional historical data to estimate the impact of this standard. An estimate of the impact of this standard has not yet been determined, however, the impact on the Company's consolidated financial statements is expected to be significant. In January 2017, FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). The FASB is issuing this Update to eliminate the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. This ASU will be effective for public business entities for annual periods beginning after December 15, 2019 (i.e. calendar periods beginning on January 1, 2020, and interim periods therein. The Company does not expect any impact on the Company's consolidated financial statements resulting from the adoption of this Update. In March 2017, FASB issued ASU 2017-08 - Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The provisions of the update require premiums recognized upon the purchase of callable debt securities to be amortized to the earliest call date in order to avoid losses recognized upon call. For public business entities that are SEC filers the amendments of the update will become effective in fiscal years beginning after December 15, 2018. The Company does not expect the requirements of this Update to have a material impact on the Company’s financial position, results of operations or cash flows. In August 2018, FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts within FASB's Concepts Statement, including the consideration of costs and benefits. The amendment calls for the removal, modification, and addition of certain disclosure aspects to promote the appropriate exercise of discretion by entities when considering fair value measurement disclosures. The amendments of the update will become effective in fiscal years beginning after December 15, 2019. The Company does not expect the requirements of this Update to have a material impact on the Company’s financial position, results of operations or cash flows. |
Investment Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparison of amortized cost and fair value of securities available for sale | Following is a comparison of the amortized cost and fair value of securities available-for-sale, as of September 30, 2018 and December 31, 2017:
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Contractual maturities on collateralized mortgage obligation | The amortized cost and fair value of securities available for sale at September 30, 2018, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties. Contractual maturities on collateralized mortgage obligations cannot be anticipated due to allowed paydowns.
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Temporarily impaired investment securities | The following summarizes temporarily impaired investment securities:
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Loans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Loans are comprised of the following:
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Delinquent loans | The following is a summary of delinquent loans at September 30, 2018 (in 000's):
The following is a summary of delinquent loans at December 31, 2017 (in 000's):
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Nonaccrual loan balances | The following is a summary of nonaccrual loan balances at September 30, 2018 and December 31, 2017 (in 000's).
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Impaired loans | The following is a summary of impaired loans at September 30, 2018 (in 000's).
(1) The recorded investment in loans includes accrued interest receivable of $30. (2) Information is based on the nine month period ended September 30, 2018. The following is a summary of impaired loans at December 31, 2017 (in 000's).
(1) The recorded investment in loans includes accrued interest receivable of $62. (2) Information is based on the twelve month period ended December 31, 2017. |
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Troubled debt restructuring activity | The following tables illustrates TDR additions for the periods indicated:
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TDR activity by loan category | The following tables summarize TDR activity by loan category for the quarters ended September 30, 2018 and September 30, 2017 (in 000's).
The following tables summarize TDR activity by loan category for the nine months ended September 30, 2018 and September 30, 2017 (in 000's).
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Credit risk rating for commercial, construction and non-consumer related loans | The following tables summarize the credit risk ratings for commercial, construction, and other non-consumer related loans for September 30, 2018 and December 31, 2017:
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Credit risk ratings for consumer related loans and other homogenous loans | The following tables summarize the credit risk ratings for consumer related loans and other homogeneous loans for September 30, 2018 and December 31, 2017:
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Credit quality indicators for outstanding student loans | The following tables summarize the credit quality indicators for outstanding student loans as of September 30, 2018 and December 31, 2017 (in 000's, except for number of borrowers):
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Allowance for credit loses by loan category | The following summarizes the activity in the allowance for credit losses by loan category for the quarters ended September 30, 2018 and 2017 (in 000's).
The following summarizes the activity in the allowance for credit losses by loan category for the nine months ended September 30, 2018 and 2017 (in 000's).
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Summarized loan balances | The following summarizes information with respect to the loan balances at September 30, 2018 and 2017.
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Deposits (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits summary | Deposits include the following:
* CDARs reciprocal deposits are no longer considered brokered deposits for the Company. |
Supplemental Cash Flow Disclosures (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental cash flow disclosures |
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Net Income per Common Share (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of income (loss) per share | The following table provides a reconciliation of the numerator and the denominator of the basic EPS computation with the numerator and the denominator of the diluted EPS computation:
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Fair Value Measurements and Disclosure (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of financial instruments | The table below is a summary of fair value estimates for financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized at the periods indicated:
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Description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the company's assets and liabilities classified as level 3 and measured at fair value on a recurring basis | The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring basis at September 30, 2018 and December 31, 2017:
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Assets and liabilities measured at fair value on recurring and non-recurring basis | The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of September 30, 2018 (in 000’s):
(1)Nonrecurring (2)Recurring The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2017 (in 000’s):
(1)Nonrecurring (2)Recurring |
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Significant unobservable inputs (level 3) on a recurring basis | The following tables provide a reconciliation of assets and liabilities at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and nine months ended September 30, 2018 and 2017 (in 000’s):
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Accumulated Other Comprehensive Income (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of accumulated other comprehensive income | The components of accumulated other comprehensive income, included in shareholders’ equity, are as follows:
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Organization and Summary of Significant Accounting and Reporting Policies (Details) |
9 Months Ended |
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Sep. 30, 2018
subsidiary
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of subsidiaries | 1 |
Investment Securities (Details) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Jan. 01, 2018
USD ($)
|
Sep. 30, 2018
USD ($)
security
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
segment
security
|
Sep. 30, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Comparison of amortized cost and fair value of securities available for sale [Abstract] | ||||||
Amortized Cost | $ 62,847,000 | $ 62,847,000 | $ 42,074,000 | |||
Gross Unrealized Gains | 154,000 | 154,000 | 368,000 | |||
Gross Unrealized Losses | (898,000) | (898,000) | (457,000) | |||
Fair Value (Carrying Amount) | 62,103,000 | 62,103,000 | 41,985,000 | |||
Amortized Cost [Abstract] | ||||||
Due in one year or less | 0 | 0 | ||||
Due after one year through five years | 0 | 0 | ||||
Due after five years through ten years | 5,860,000 | 5,860,000 | ||||
Due after ten years | 28,338,000 | 28,338,000 | ||||
Collateralized mortgage obligations | 28,649,000 | 28,649,000 | ||||
Amortized Cost | 62,847,000 | 62,847,000 | 42,074,000 | |||
Fair Value (Carrying Amount) [Abstract] | ||||||
Due in one year or less | 0 | 0 | ||||
Due after one year through five years | 0 | 0 | ||||
Due after five years through ten years | 5,843,000 | 5,843,000 | ||||
Due after ten years | 28,288,000 | 28,288,000 | ||||
Collateralized mortgage obligations | 27,972,000 | 27,972,000 | ||||
Fair Value (Carrying Amount) | 62,103,000 | 62,103,000 | 41,985,000 | |||
Available-for-sale securities, gross realized gains | 0 | $ 0 | 0 | $ 0 | ||
Available-for-sale securities, gross realized losses | 0 | 0 | 0 | 0 | ||
OTTI losses, investments | 0 | 0 | 0 | 0 | ||
Fair value of available-for-sale securities pledged as collateral for FHLB borrowings | 47,814,781 | 47,814,781 | ||||
Summarizes temporarily impaired investment securities [Abstract] | ||||||
Less than 12 Months, Fair Value (Carrying Amount) | 24,485,000 | 24,485,000 | 9,211,000 | |||
Less than 12 Months, Unrealized Losses | (131,000) | (131,000) | (157,000) | |||
12 Months or More, Fair Value (Carrying Amount) | 24,549,000 | 24,549,000 | 20,208,000 | |||
12 Months or More, Unrealized Losses | (767,000) | (767,000) | (300,000) | |||
Total Fair Value (Carrying Amount) | 49,034,000 | 49,034,000 | 29,419,000 | |||
Total Unrealized Losses | (898,000) | $ (898,000) | (457,000) | |||
Number of general segments for the segregation of portfolio | segment | 2 | |||||
Marketable equity securities | 3,624,000 | $ 3,624,000 | 3,737,000 | |||
Adoption of ASU 2016-01: recognition of previously unrealized losses within marketable equity securities | 184,000 | 0 | ||||
Unrealized loss on marketable equity securities | 35,000 | $ 0 | 114,000 | $ 0 | ||
Held-to-maturity securities | 0 | 0 | 0 | |||
Trading securities | 0 | 0 | 0 | |||
Carrying Amount | ||||||
Comparison of amortized cost and fair value of securities available for sale [Abstract] | ||||||
Fair Value (Carrying Amount) | 62,103,000 | 62,103,000 | ||||
Fair Value (Carrying Amount) [Abstract] | ||||||
Fair Value (Carrying Amount) | 62,103,000 | 62,103,000 | ||||
Fair value of available-for-sale securities pledged as collateral for FHLB borrowings | 48,538,528 | 48,538,528 | ||||
U.S. Government agencies | ||||||
Comparison of amortized cost and fair value of securities available for sale [Abstract] | ||||||
Amortized Cost | 34,198,000 | 34,198,000 | 19,683,000 | |||
Gross Unrealized Gains | 124,000 | 124,000 | 312,000 | |||
Gross Unrealized Losses | (191,000) | (191,000) | (41,000) | |||
Fair Value (Carrying Amount) | 34,131,000 | 34,131,000 | 19,954,000 | |||
Amortized Cost [Abstract] | ||||||
Amortized Cost | 34,198,000 | 34,198,000 | 19,683,000 | |||
Fair Value (Carrying Amount) [Abstract] | ||||||
Fair Value (Carrying Amount) | 34,131,000 | 34,131,000 | 19,954,000 | |||
Summarizes temporarily impaired investment securities [Abstract] | ||||||
Less than 12 Months, Fair Value (Carrying Amount) | 17,755,000 | 17,755,000 | 1,728,000 | |||
Less than 12 Months, Unrealized Losses | (79,000) | (79,000) | (3,000) | |||
12 Months or More, Fair Value (Carrying Amount) | 7,030,000 | 7,030,000 | 6,625,000 | |||
12 Months or More, Unrealized Losses | (112,000) | (112,000) | (38,000) | |||
Total Fair Value (Carrying Amount) | 24,785,000 | 24,785,000 | 8,353,000 | |||
Total Unrealized Losses | $ (191,000) | $ (191,000) | (41,000) | |||
Number of impaired securities | security | 10 | 10 | ||||
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | ||||||
Comparison of amortized cost and fair value of securities available for sale [Abstract] | ||||||
Amortized Cost | $ 28,649,000 | $ 28,649,000 | 22,391,000 | |||
Gross Unrealized Gains | 30,000 | 30,000 | 56,000 | |||
Gross Unrealized Losses | (707,000) | (707,000) | (416,000) | |||
Fair Value (Carrying Amount) | 27,972,000 | 27,972,000 | 22,031,000 | |||
Amortized Cost [Abstract] | ||||||
Amortized Cost | 28,649,000 | 28,649,000 | 22,391,000 | |||
Fair Value (Carrying Amount) [Abstract] | ||||||
Fair Value (Carrying Amount) | 27,972,000 | 27,972,000 | 22,031,000 | |||
Summarizes temporarily impaired investment securities [Abstract] | ||||||
Less than 12 Months, Fair Value (Carrying Amount) | 6,730,000 | 6,730,000 | 7,483,000 | |||
Less than 12 Months, Unrealized Losses | (52,000) | (52,000) | (154,000) | |||
12 Months or More, Fair Value (Carrying Amount) | 17,519,000 | 17,519,000 | 13,583,000 | |||
12 Months or More, Unrealized Losses | (655,000) | (655,000) | (262,000) | |||
Total Fair Value (Carrying Amount) | 24,249,000 | 24,249,000 | 21,066,000 | |||
Total Unrealized Losses | $ (707,000) | $ (707,000) | $ (416,000) | |||
Number of impaired securities | security | 13 | 13 | ||||
ASU 2016-01 | ||||||
Summarizes temporarily impaired investment securities [Abstract] | ||||||
Adoption of ASU 2016-01: recognition of previously unrealized losses within marketable equity securities | $ (184,000) |
Loans (Details) |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2018
USD ($)
loan
|
Dec. 31, 2017
USD ($)
loan
|
Sep. 30, 2017
USD ($)
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 577,115,000 | $ 601,351,000 | $ 582,384,000 |
Student loans, installment | 65,659,000 | ||
Accrued interest receivable | 9,412,000 | 6,526,000 | |
Commitments to Extend Credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Fair value, concentration of risk, commitments | 116,096,000 | 99,958,000 | |
Standby Letters of Credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Fair value, concentration of risk, commitments | 1,183,000 | 2,058,000 | |
Loan Purchase Commitments | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Purchase commitment | 30,000,000 | ||
Total commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 55,523,000 | 47,026,000 | |
Percentage of total loans (in hundredths) | 9.60% | ||
Commercial and business loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 54,639,000 | 46,065,000 | |
Government program loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 884,000 | 961,000 | |
Total real estate mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 281,235,000 | 306,293,000 | |
Percentage of total loans (in hundredths) | 48.70% | ||
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 212,639,000 | 221,032,000 | |
Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 68,263,000 | 84,804,000 | |
Home improvement and home equity loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 333,000 | 457,000 | |
Real Estate Construction and Development Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 109,154,000 | 122,970,000 | |
Percentage of total loans (in hundredths) | 18.90% | ||
Agricultural | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 59,655,000 | 59,481,000 | |
Percentage of total loans (in hundredths) | 10.30% | ||
Installment and student loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 71,548,000 | 65,581,000 | |
Total installment and student loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of total loans (in hundredths) | 12.40% | ||
Student loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accrued interest receivable | $ 7,183,000 | $ 4,261,000 | |
Number of loans | loan | 1,714 | 1,554 | |
Financing receivable | $ 65,659,000 | $ 59,853,000 | |
Repayment, Deferment, and Forbearance | Student loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans | loan | 332 | ||
Repayment | Student loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accrued interest receivable | $ 77,000 | $ 40,000 | |
Number of loans | loan | 218 | 201 | |
Financing receivable | $ 6,896,000 | $ 6,473,000 | |
Deferment | Student loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accrued interest receivable | $ 44,000 | $ 45,000 | |
Number of loans | loan | 30 | 32 | |
Financing receivable | $ 1,005,000 | $ 1,128,000 | |
Forbearance | Student loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accrued interest receivable | $ 72,000 | $ 37,000 | |
Number of loans | loan | 84 | 50 | |
Financing receivable | $ 2,680,000 | $ 1,981,000 |
Loans, Part II (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2018
USD ($)
payment
|
Dec. 31, 2017
USD ($)
|
Sep. 30, 2017
USD ($)
|
|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | $ 11,378,000 | $ 11,378,000 | $ 1,445,000 | |
Current Loans | 565,737,000 | 565,737,000 | 599,906,000 | |
Total Loans | 577,115,000 | 577,115,000 | 601,351,000 | $ 582,384,000 |
Accruing Loans 90 or More Days Past Due | 417,000 | $ 417,000 | 485,000 | |
Minimum period of default | 90 days | |||
Number of monthly payments to demonstrate repayment ability | payment | 6 | |||
Nonaccrual loans balances [Abstract] | ||||
Total Loans | 12,106,000 | $ 12,106,000 | 5,296,000 | |
Loans, increase (decrease) | 8,825,000 | |||
Undisbursed commitments | 0 | 0 | 0 | |
Total commercial and industrial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 212,000 | |
Current Loans | 55,523,000 | 55,523,000 | 46,814,000 | |
Total Loans | 55,523,000 | 55,523,000 | 47,026,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | 0 | |
Nonaccrual loans balances [Abstract] | ||||
Total Loans | 0 | 0 | 212,000 | |
Commercial and business loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 212,000 | |
Current Loans | 54,639,000 | 54,639,000 | 45,853,000 | |
Total Loans | 54,639,000 | 54,639,000 | 46,065,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | 0 | |
Nonaccrual loans balances [Abstract] | ||||
Total Loans | 0 | 0 | 212,000 | |
Government program loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Current Loans | 884,000 | 884,000 | 961,000 | |
Total Loans | 884,000 | 884,000 | 961,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | 0 | |
Nonaccrual loans balances [Abstract] | ||||
Total Loans | 0 | 0 | 0 | |
Total real estate mortgage | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 1,339,000 | 1,339,000 | 873,000 | |
Current Loans | 279,896,000 | 279,896,000 | 305,420,000 | |
Total Loans | 281,235,000 | 281,235,000 | 306,293,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | 0 | |
Nonaccrual loans balances [Abstract] | ||||
Total Loans | 393,000 | 393,000 | 742,000 | |
Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 393,000 | 393,000 | 779,000 | |
Current Loans | 212,246,000 | 212,246,000 | 220,253,000 | |
Total Loans | 212,639,000 | 212,639,000 | 221,032,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | 0 | |
Nonaccrual loans balances [Abstract] | ||||
Total Loans | 393,000 | 393,000 | 454,000 | |
Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 946,000 | 946,000 | 94,000 | |
Current Loans | 67,317,000 | 67,317,000 | 84,710,000 | |
Total Loans | 68,263,000 | 68,263,000 | 84,804,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | 0 | |
Nonaccrual loans balances [Abstract] | ||||
Total Loans | 0 | 0 | 288,000 | |
Home improvement and home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Current Loans | 333,000 | 333,000 | 457,000 | |
Total Loans | 333,000 | 333,000 | 457,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | 0 | |
Nonaccrual loans balances [Abstract] | ||||
Total Loans | 0 | 0 | 0 | |
Total installment and student loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 1,169,000 | 1,169,000 | 0 | |
Current Loans | 70,379,000 | 70,379,000 | 65,581,000 | |
Total Loans | 71,548,000 | 71,548,000 | 65,581,000 | |
Accruing Loans 90 or More Days Past Due | 417,000 | 417,000 | 125,000 | |
Nonaccrual loans balances [Abstract] | ||||
Total Loans | 0 | 0 | 0 | |
Real Estate Construction and Development Loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 8,825,000 | 8,825,000 | 360,000 | |
Current Loans | 100,329,000 | 100,329,000 | 122,610,000 | |
Total Loans | 109,154,000 | 109,154,000 | 122,970,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | 360,000 | |
Nonaccrual loans balances [Abstract] | ||||
Total Loans | 11,713,000 | 11,713,000 | 4,342,000 | |
Agricultural loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 45,000 | 45,000 | 0 | |
Current Loans | 59,610,000 | 59,610,000 | 59,481,000 | |
Total Loans | 59,655,000 | 59,655,000 | 59,481,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | 0 | |
Nonaccrual loans balances [Abstract] | ||||
Total Loans | 0 | 0 | 0 | |
Installment and student loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 1,169,000 | 1,169,000 | 0 | |
Current Loans | 70,186,000 | 70,186,000 | 65,446,000 | |
Total Loans | 71,355,000 | 71,355,000 | 65,446,000 | |
Accruing Loans 90 or More Days Past Due | 417,000 | 417,000 | 125,000 | |
Nonaccrual loans balances [Abstract] | ||||
Total Loans | 0 | 0 | 0 | |
Overdraft protection lines | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Current Loans | 36,000 | 36,000 | 38,000 | |
Total Loans | 36,000 | 36,000 | 38,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | 0 | |
Nonaccrual loans balances [Abstract] | ||||
Total Loans | 0 | 0 | 0 | |
Overdrafts | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Current Loans | 157,000 | 157,000 | 97,000 | |
Total Loans | 157,000 | 157,000 | 97,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | 0 | |
Nonaccrual loans balances [Abstract] | ||||
Total Loans | 0 | 0 | 0 | |
Loans 30-60 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 1,619,000 | 1,619,000 | 779,000 | |
Loans 30-60 Days Past Due | Total commercial and industrial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 30-60 Days Past Due | Commercial and business loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 30-60 Days Past Due | Government program loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 30-60 Days Past Due | Total real estate mortgage | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 946,000 | 946,000 | 779,000 | |
Loans 30-60 Days Past Due | Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 779,000 | |
Loans 30-60 Days Past Due | Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 946,000 | 946,000 | 0 | |
Loans 30-60 Days Past Due | Home improvement and home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 30-60 Days Past Due | Total installment and student loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 673,000 | 673,000 | 0 | |
Loans 30-60 Days Past Due | Real Estate Construction and Development Loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 30-60 Days Past Due | Agricultural loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 30-60 Days Past Due | Installment and student loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 673,000 | 673,000 | 0 | |
Loans 30-60 Days Past Due | Overdraft protection lines | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 30-60 Days Past Due | Overdrafts | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 61-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 934,000 | 934,000 | 0 | |
Loans 61-89 Days Past Due | Total commercial and industrial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 61-89 Days Past Due | Commercial and business loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 61-89 Days Past Due | Government program loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 61-89 Days Past Due | Total real estate mortgage | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 393,000 | 393,000 | 0 | |
Loans 61-89 Days Past Due | Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 393,000 | 393,000 | 0 | |
Loans 61-89 Days Past Due | Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 61-89 Days Past Due | Home improvement and home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 61-89 Days Past Due | Total installment and student loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 496,000 | 496,000 | 0 | |
Loans 61-89 Days Past Due | Real Estate Construction and Development Loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 61-89 Days Past Due | Agricultural loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 45,000 | 45,000 | 0 | |
Loans 61-89 Days Past Due | Installment and student loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 496,000 | 496,000 | 0 | |
Loans 61-89 Days Past Due | Overdraft protection lines | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 61-89 Days Past Due | Overdrafts | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 90 or More Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 8,825,000 | 8,825,000 | 666,000 | |
Loans 90 or More Days Past Due | Total commercial and industrial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 212,000 | |
Loans 90 or More Days Past Due | Commercial and business loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 212,000 | |
Loans 90 or More Days Past Due | Government program loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 90 or More Days Past Due | Total real estate mortgage | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 94,000 | |
Loans 90 or More Days Past Due | Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 90 or More Days Past Due | Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 94,000 | |
Loans 90 or More Days Past Due | Home improvement and home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 90 or More Days Past Due | Total installment and student loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 90 or More Days Past Due | Real Estate Construction and Development Loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 8,825,000 | 8,825,000 | 360,000 | |
Loans 90 or More Days Past Due | Agricultural loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 90 or More Days Past Due | Installment and student loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 90 or More Days Past Due | Overdraft protection lines | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | 0 | 0 | 0 | |
Loans 90 or More Days Past Due | Overdrafts | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due Loans | $ 0 | $ 0 | $ 0 |
Loans, Part III (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | $ 19,212,000 | $ 19,212,000 | $ 14,728,000 | ||
Recorded Investment With No Allowance | 13,356,000 | 13,356,000 | 7,603,000 | ||
Recorded Investment With Allowance | 5,886,000 | 5,886,000 | 7,187,000 | ||
Total Recorded Investment | 19,242,000 | 19,242,000 | 14,790,000 | ||
Related Allowance | 1,717,000 | 1,717,000 | 1,888,000 | ||
Average Recorded Investment | 19,469,000 | $ 15,681,000 | 16,825,000 | $ 16,366,000 | 15,973,000 |
Interest Recognized | 173,000 | 192,000 | 625,000 | 738,000 | 921,000 |
Impaired financing receivable, interest income, cash basis method | 64,000 | $ 70,000 | 277,000 | $ 260,000 | |
Accrued interest receivable | 30,000 | 62,000 | |||
Total commercial and industrial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 3,026,000 | 3,026,000 | 3,304,000 | ||
Recorded Investment With No Allowance | 804,000 | 804,000 | 431,000 | ||
Recorded Investment With Allowance | 2,235,000 | 2,235,000 | 2,887,000 | ||
Total Recorded Investment | 3,039,000 | 3,039,000 | 3,318,000 | ||
Related Allowance | 633,000 | 633,000 | 534,000 | ||
Average Recorded Investment | 3,308,000 | 4,010,000 | |||
Interest Recognized | 154,000 | 234,000 | |||
Commercial and business loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 2,726,000 | 2,726,000 | 3,255,000 | ||
Recorded Investment With No Allowance | 503,000 | 503,000 | 381,000 | ||
Recorded Investment With Allowance | 2,235,000 | 2,235,000 | 2,887,000 | ||
Total Recorded Investment | 2,738,000 | 2,738,000 | 3,268,000 | ||
Related Allowance | 633,000 | 633,000 | 534,000 | ||
Average Recorded Investment | 3,063,000 | 3,791,000 | |||
Interest Recognized | 139,000 | 229,000 | |||
Government program loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 300,000 | 300,000 | 49,000 | ||
Recorded Investment With No Allowance | 301,000 | 301,000 | 50,000 | ||
Recorded Investment With Allowance | 0 | 0 | 0 | ||
Total Recorded Investment | 301,000 | 301,000 | 50,000 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 245,000 | 219,000 | |||
Interest Recognized | 15,000 | 5,000 | |||
Total real estate mortgage | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 3,512,000 | 3,512,000 | 4,273,000 | ||
Recorded Investment With No Allowance | 787,000 | 787,000 | 1,199,000 | ||
Recorded Investment With Allowance | 2,737,000 | 2,737,000 | 3,097,000 | ||
Total Recorded Investment | 3,524,000 | 3,524,000 | 4,296,000 | ||
Related Allowance | 464,000 | 464,000 | 488,000 | ||
Average Recorded Investment | 3,890,000 | 3,883,000 | |||
Interest Recognized | 136,000 | 221,000 | |||
Commercial real estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 1,310,000 | 1,310,000 | 1,233,000 | ||
Recorded Investment With No Allowance | 393,000 | 393,000 | 0 | ||
Recorded Investment With Allowance | 921,000 | 921,000 | 1,245,000 | ||
Total Recorded Investment | 1,314,000 | 1,314,000 | 1,245,000 | ||
Related Allowance | 396,000 | 396,000 | 385,000 | ||
Average Recorded Investment | 1,385,000 | 1,138,000 | |||
Interest Recognized | 47,000 | 79,000 | |||
Residential mortgages | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 2,202,000 | 2,202,000 | 3,040,000 | ||
Recorded Investment With No Allowance | 394,000 | 394,000 | 1,199,000 | ||
Recorded Investment With Allowance | 1,816,000 | 1,816,000 | 1,852,000 | ||
Total Recorded Investment | 2,210,000 | 2,210,000 | 3,051,000 | ||
Related Allowance | 68,000 | 68,000 | 103,000 | ||
Average Recorded Investment | 2,505,000 | 2,745,000 | |||
Interest Recognized | 89,000 | 142,000 | |||
Home improvement and home equity loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 0 | 0 | 0 | ||
Recorded Investment With No Allowance | 0 | 0 | 0 | ||
Recorded Investment With Allowance | 0 | 0 | 0 | ||
Total Recorded Investment | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | |||
Interest Recognized | 0 | 0 | |||
Real Estate Construction and Development Loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 11,713,000 | 11,713,000 | 5,951,000 | ||
Recorded Investment With No Allowance | 11,713,000 | 11,713,000 | 5,972,000 | ||
Recorded Investment With Allowance | 0 | 0 | 0 | ||
Total Recorded Investment | 11,713,000 | 11,713,000 | 5,972,000 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 8,514,000 | 6,660,000 | |||
Interest Recognized | 268,000 | 418,000 | |||
Agricultural loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 909,000 | 909,000 | 1,200,000 | ||
Recorded Investment With No Allowance | 0 | 0 | 1,000 | ||
Recorded Investment With Allowance | 914,000 | 914,000 | 1,203,000 | ||
Total Recorded Investment | 914,000 | 914,000 | 1,204,000 | ||
Related Allowance | 620,000 | 620,000 | 866,000 | ||
Average Recorded Investment | 1,063,000 | 1,179,000 | |||
Interest Recognized | 63,000 | 48,000 | |||
Installment & Student Loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 52,000 | 52,000 | 0 | ||
Recorded Investment With No Allowance | 52,000 | 52,000 | 0 | ||
Recorded Investment With Allowance | 0 | 0 | 0 | ||
Total Recorded Investment | 52,000 | 52,000 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 50,000 | 241,000 | |||
Interest Recognized | 4,000 | 0 | |||
Installment and student loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 52,000 | 52,000 | 0 | ||
Recorded Investment With No Allowance | 52,000 | 52,000 | 0 | ||
Recorded Investment With Allowance | 0 | 0 | 0 | ||
Total Recorded Investment | 52,000 | 52,000 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 50,000 | 241,000 | |||
Interest Recognized | 4,000 | 0 | |||
Overdraft protection lines | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 0 | 0 | 0 | ||
Recorded Investment With No Allowance | 0 | 0 | 0 | ||
Recorded Investment With Allowance | 0 | 0 | 0 | ||
Total Recorded Investment | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | |||
Interest Recognized | 0 | 0 | |||
Overdrafts | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Contractual Principal Balance | 0 | 0 | 0 | ||
Recorded Investment With No Allowance | 0 | 0 | 0 | ||
Recorded Investment With Allowance | 0 | 0 | 0 | ||
Total Recorded Investment | 0 | 0 | 0 | ||
Related Allowance | $ 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | |||
Interest Recognized | $ 0 | $ 0 |
Loans, Part IV (Details) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
loan
contract
|
Sep. 30, 2017
USD ($)
contract
|
Sep. 30, 2018
USD ($)
loan
contract
|
Sep. 30, 2017
USD ($)
contract
|
Dec. 31, 2017
USD ($)
loan
|
|
Financing Receivable, Modifications [Line Items] | |||||
Financing receivable, period of successful payment history used for restructured loan accrual status | 6 months | ||||
Troubled Debt Restructurings [Abstract] | |||||
Number of Contracts | contract | 0 | 2 | 0 | 7 | |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 754,000 | $ 0 | $ 2,878,000 | |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 754,000 | $ 0 | $ 2,878,000 | |
Number of Contracts which Defaulted During Period | contract | 1 | 0 | 2 | 0 | |
Recorded Investment on Defaulted TDRs | $ 393,000 | $ 0 | $ 703,000 | $ 0 | |
Number of restructured loans | loan | 17 | 17 | 25 | ||
Total restructured loans | $ 7,402,000 | $ 7,402,000 | $ 11,362,000 | ||
TDR activity by loan category [Roll Forward] | |||||
Beginning balance | 7,640,000 | 11,958,000 | 11,362,000 | 12,410,000 | |
Additions | 0 | 754,000 | 0 | 2,878,000 | |
Principal (reductions) additions | (192,000) | (562,000) | (3,851,000) | (3,128,000) | |
Charge-offs | 46,000 | (109,000) | (10,000) | ||
Ending balance | 7,402,000 | 12,150,000 | 7,402,000 | 12,150,000 | |
Allowance for loan loss | 1,084,000 | 1,185,000 | 1,084,000 | 1,185,000 | |
Defaults | $ (312,000) | $ 0 | $ (622,000) | $ 0 | |
Commercial and business loans | |||||
Troubled Debt Restructurings [Abstract] | |||||
Number of Contracts | contract | 0 | 0 | 0 | 1 | |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 69,000 | |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 69,000 | |
Number of Contracts which Defaulted During Period | contract | 0 | 0 | 0 | 0 | |
Recorded Investment on Defaulted TDRs | $ 0 | $ 0 | $ 0 | $ 0 | |
Government program loans | |||||
Troubled Debt Restructurings [Abstract] | |||||
Number of Contracts | contract | 0 | 0 | 0 | 1 | |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 178,000 | |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 178,000 | |
Number of Contracts which Defaulted During Period | contract | 0 | 0 | 0 | 0 | |
Recorded Investment on Defaulted TDRs | $ 0 | $ 0 | $ 0 | $ 0 | |
Commercial real estate | |||||
Troubled Debt Restructurings [Abstract] | |||||
Number of Contracts | contract | 0 | 0 | 0 | 0 | |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Number of Contracts which Defaulted During Period | contract | 1 | 0 | 1 | 0 | |
Recorded Investment on Defaulted TDRs | $ 393,000 | $ 0 | $ 393,000 | $ 0 | |
TDR activity by loan category [Roll Forward] | |||||
Beginning balance | 1,362,000 | 1,062,000 | 1,233,000 | 1,454,000 | |
Additions | 0 | 0 | 0 | 0 | |
Principal (reductions) additions | (6,000) | 85,000 | 123,000 | (307,000) | |
Charge-offs | (46,000) | 0 | 46,000 | 0 | |
Ending balance | 1,310,000 | 1,147,000 | 1,310,000 | 1,147,000 | |
Allowance for loan loss | 396,000 | 221,000 | 396,000 | 221,000 | |
Defaults | $ (312,000) | $ 0 | $ (312,000) | $ 0 | |
Single Family Residential Loans | |||||
Troubled Debt Restructurings [Abstract] | |||||
Number of Contracts | contract | 0 | 1 | 0 | 2 | |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 167,000 | $ 0 | $ 404,000 | |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 167,000 | $ 0 | $ 404,000 | |
Number of Contracts which Defaulted During Period | contract | 0 | 0 | 0 | 0 | |
Recorded Investment on Defaulted TDRs | $ 0 | $ 0 | $ 0 | $ 0 | |
Home improvement and home equity loans | |||||
Troubled Debt Restructurings [Abstract] | |||||
Number of Contracts | contract | 0 | 0 | 0 | 0 | |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Number of Contracts which Defaulted During Period | contract | 0 | 0 | 0 | 0 | |
Recorded Investment on Defaulted TDRs | $ 0 | $ 0 | $ 0 | $ 0 | |
TDR activity by loan category [Roll Forward] | |||||
Beginning balance | 0 | 0 | 0 | 0 | |
Additions | 0 | 0 | 0 | 0 | |
Principal (reductions) additions | 0 | 0 | 0 | 0 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 0 | 0 | 0 | 0 | |
Allowance for loan loss | 0 | 0 | 0 | 0 | |
Defaults | $ 0 | $ 0 | $ 0 | $ 0 | |
Real Estate Construction and Development Loans | |||||
Troubled Debt Restructurings [Abstract] | |||||
Number of Contracts | contract | 0 | 0 | 0 | 1 | |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 790,000 | |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 790,000 | |
Number of Contracts which Defaulted During Period | contract | 0 | 0 | 1 | 0 | |
Recorded Investment on Defaulted TDRs | $ 0 | $ 0 | $ 310,000 | $ 0 | |
TDR activity by loan category [Roll Forward] | |||||
Beginning balance | 2,939,000 | 6,868,000 | 5,951,000 | 6,267,000 | |
Additions | 0 | 0 | 0 | 790,000 | |
Principal (reductions) additions | (51,000) | (70,000) | (3,063,000) | (259,000) | |
Charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 2,888,000 | 6,798,000 | 2,888,000 | 6,798,000 | |
Allowance for loan loss | 0 | 0 | 0 | 0 | |
Defaults | $ 0 | $ 0 | $ (310,000) | $ 0 | |
Agricultural | |||||
Troubled Debt Restructurings [Abstract] | |||||
Number of Contracts | contract | 0 | 1 | 0 | 2 | |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 587,000 | $ 0 | $ 1,437,000 | |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 587,000 | $ 0 | $ 1,437,000 | |
Number of Contracts which Defaulted During Period | contract | 0 | 0 | 0 | 0 | |
Recorded Investment on Defaulted TDRs | $ 0 | $ 0 | $ 0 | $ 0 | |
TDR activity by loan category [Roll Forward] | |||||
Beginning balance | 1,010,000 | 400,000 | 1,200,000 | 0 | |
Additions | 0 | 587,000 | 0 | 1,437,000 | |
Principal (reductions) additions | (102,000) | (100,000) | (292,000) | (550,000) | |
Charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 908,000 | 887,000 | 908,000 | 887,000 | |
Allowance for loan loss | 620,000 | 743,000 | 620,000 | 743,000 | |
Defaults | $ 0 | $ 0 | $ 0 | $ 0 | |
Installment and student loans | |||||
Troubled Debt Restructurings [Abstract] | |||||
Number of Contracts | contract | 0 | 0 | 0 | 0 | |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Number of Contracts which Defaulted During Period | contract | 0 | 0 | 0 | 0 | |
Recorded Investment on Defaulted TDRs | $ 0 | $ 0 | $ 0 | $ 0 | |
Overdraft protection lines | |||||
Troubled Debt Restructurings [Abstract] | |||||
Number of Contracts | contract | 0 | 0 | 0 | 0 | |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Number of Contracts which Defaulted During Period | contract | 0 | 0 | 0 | 0 | |
Recorded Investment on Defaulted TDRs | $ 0 | $ 0 | $ 0 | $ 0 | |
Installment & Student Loans | |||||
TDR activity by loan category [Roll Forward] | |||||
Beginning balance | 0 | 0 | 0 | 965,000 | |
Additions | 0 | 0 | 0 | 0 | |
Principal (reductions) additions | 0 | 0 | 0 | (965,000) | |
Charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 0 | 0 | 0 | 0 | |
Allowance for loan loss | 0 | 0 | 0 | 0 | |
Defaults | 0 | 0 | 0 | 0 | |
Total commercial and industrial | |||||
TDR activity by loan category [Roll Forward] | |||||
Beginning balance | 110,000 | 1,055,000 | 436,000 | 1,356,000 | |
Additions | 0 | 0 | 0 | 247,000 | |
Principal (reductions) additions | (17,000) | (425,000) | (280,000) | (963,000) | |
Charge-offs | 0 | 0 | (63,000) | (10,000) | |
Ending balance | 93,000 | 630,000 | 93,000 | 630,000 | |
Allowance for loan loss | 0 | 15,000 | 0 | 15,000 | |
Defaults | 0 | 0 | 0 | 0 | |
Residential mortgages | |||||
TDR activity by loan category [Roll Forward] | |||||
Beginning balance | 2,219,000 | 2,573,000 | 2,542,000 | 2,368,000 | |
Additions | 0 | 167,000 | 0 | 404,000 | |
Principal (reductions) additions | (16,000) | (52,000) | (339,000) | (84,000) | |
Charge-offs | 0 | 0 | 0 | 0 | |
Ending balance | 2,203,000 | 2,688,000 | 2,203,000 | 2,688,000 | |
Allowance for loan loss | 68,000 | 206,000 | 68,000 | 206,000 | |
Defaults | $ 0 | $ 0 | $ 0 | $ 0 |
Loans, Part V (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018
USD ($)
rating
|
Dec. 31, 2017
USD ($)
|
|
Financing Receivable, Recorded Investment [Line Items] | ||
Number of risk rating approaches | rating | 2 | |
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | $ 140,144 | $ 150,842 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 140,144 | 150,842 |
Commercial Risk, Construction, and Other Non-Consumer Loans [Member] | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 436,971 | 450,509 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 436,971 | 450,509 |
Commercial and Industrial | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 55,523 | 47,026 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 55,523 | 47,026 |
Commercial Real Estate | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 212,639 | 221,032 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 212,639 | 221,032 |
Real Estate Construction and Development Loans | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 109,154 | 122,970 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 109,154 | 122,970 |
Agricultural | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 59,655 | 59,481 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 59,655 | 59,481 |
Residential mortgages | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 68,263 | 84,804 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 68,263 | 84,804 |
Home Improvement and Home Equity | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 333 | 457 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 333 | 457 |
Total installment and student loans | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 71,548 | 65,581 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 71,548 | 65,581 |
Grades 1 and 2 | Commercial Risk, Construction, and Other Non-Consumer Loans [Member] | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 3,326 | 3,366 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 3,326 | 3,366 |
Grades 1 and 2 | Commercial and Industrial | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 340 | 342 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 340 | 342 |
Grades 1 and 2 | Commercial Real Estate | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 2,906 | 2,954 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 2,906 | 2,954 |
Grades 1 and 2 | Real Estate Construction and Development Loans | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 0 | 0 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 0 | 0 |
Grades 1 and 2 | Agricultural | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 80 | 70 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 80 | 70 |
Grade 3 | Commercial Risk, Construction, and Other Non-Consumer Loans [Member] | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 1,044 | 1,820 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 1,044 | 1,820 |
Grade 3 | Commercial and Industrial | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 0 | 251 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 0 | 251 |
Grade 3 | Commercial Real Estate | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 1,044 | 1,569 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 1,044 | 1,569 |
Grade 3 | Real Estate Construction and Development Loans | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 0 | 0 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 0 | 0 |
Grade 3 | Agricultural | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 0 | 0 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 0 | 0 |
Grades 4 and 5 – pass | Commercial Risk, Construction, and Other Non-Consumer Loans [Member] | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 394,982 | 412,198 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 394,982 | 412,198 |
Grades 4 and 5 – pass | Commercial and Industrial | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 52,132 | 43,264 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 52,132 | 43,264 |
Grades 4 and 5 – pass | Commercial Real Estate | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 197,743 | 207,568 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 197,743 | 207,568 |
Grades 4 and 5 – pass | Real Estate Construction and Development Loans | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 86,441 | 104,549 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 86,441 | 104,549 |
Grades 4 and 5 – pass | Agricultural | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 58,666 | 56,817 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 58,666 | 56,817 |
Grade 6 – special mention | Commercial Risk, Construction, and Other Non-Consumer Loans [Member] | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 10,634 | 10,201 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 10,634 | 10,201 |
Grade 6 – special mention | Commercial and Industrial | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 81 | 0 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 81 | 0 |
Grade 6 – special mention | Commercial Real Estate | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 10,553 | 8,487 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 10,553 | 8,487 |
Grade 6 – special mention | Real Estate Construction and Development Loans | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 0 | 720 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 0 | 720 |
Grade 6 – special mention | Agricultural | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 0 | 994 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 0 | 994 |
Grade 7 – substandard | Commercial Risk, Construction, and Other Non-Consumer Loans [Member] | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 26,985 | 22,924 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 26,985 | 22,924 |
Grade 7 – substandard | Commercial and Industrial | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 2,970 | 3,169 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 2,970 | 3,169 |
Grade 7 – substandard | Commercial Real Estate | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 393 | 454 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 393 | 454 |
Grade 7 – substandard | Real Estate Construction and Development Loans | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 22,713 | 17,701 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 22,713 | 17,701 |
Grade 7 – substandard | Agricultural | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 909 | 1,600 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 909 | 1,600 |
Grade 8 – doubtful | Commercial Risk, Construction, and Other Non-Consumer Loans [Member] | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 0 | 0 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 0 | 0 |
Grade 8 – doubtful | Commercial and Industrial | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 0 | 0 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 0 | 0 |
Grade 8 – doubtful | Commercial Real Estate | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 0 | 0 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 0 | 0 |
Grade 8 – doubtful | Real Estate Construction and Development Loans | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 0 | 0 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 0 | 0 |
Grade 8 – doubtful | Agricultural | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 0 | 0 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 0 | 0 |
Not graded | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 127,087 | 133,247 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 127,087 | 133,247 |
Not graded | Residential mortgages | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 58,135 | 69,249 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 58,135 | 69,249 |
Not graded | Home Improvement and Home Equity | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 311 | 433 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 311 | 433 |
Not graded | Total installment and student loans | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 68,641 | 63,565 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 68,641 | 63,565 |
Pass | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 11,593 | 15,934 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 11,593 | 15,934 |
Pass | Residential mortgages | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 9,281 | 13,899 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 9,281 | 13,899 |
Pass | Home Improvement and Home Equity | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 22 | 24 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 22 | 24 |
Pass | Total installment and student loans | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 2,290 | 2,011 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 2,290 | 2,011 |
Special mention | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 1,197 | 643 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 1,197 | 643 |
Special mention | Residential mortgages | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 632 | 643 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 632 | 643 |
Special mention | Home Improvement and Home Equity | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 0 | 0 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 0 | 0 |
Special mention | Total installment and student loans | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 565 | 0 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 565 | 0 |
Substandard | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 267 | 1,018 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 267 | 1,018 |
Substandard | Residential mortgages | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 215 | 1,013 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 215 | 1,013 |
Substandard | Home Improvement and Home Equity | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 0 | 0 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 0 | 0 |
Substandard | Total installment and student loans | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 52 | 5 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 52 | 5 |
Doubtful | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 0 | 0 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 0 | 0 |
Doubtful | Residential mortgages | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 0 | 0 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 0 | 0 |
Doubtful | Home Improvement and Home Equity | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 0 | 0 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | 0 | 0 |
Doubtful | Total installment and student loans | ||
Credit Risk Ratings For Commercial, Construction, And Other Non-Consumer Related Loans [Abstract] | ||
Total | 0 | 0 |
Credit Risk Ratings For Consumer Related Loans And Other Homogenous Loans [Abstract] | ||
Total | $ 0 | $ 0 |
Minimum | Grades 4 and 5 – pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes receivable, period of loss recognition | 3 years | |
Maximum | Grades 4 and 5 – pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes receivable, period of loss recognition | 4 years |
Loans, Part VI (Details) |
9 Months Ended | |
---|---|---|
Sep. 30, 2018
USD ($)
loan
|
Dec. 31, 2017
USD ($)
loan
|
|
Loans and Leases Receivable Disclosure [Line Items] | ||
Accrued Interest | $ 9,412,000 | $ 6,526,000 |
Student loan | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Number of loans | loan | 1,714 | 1,554 |
Financing receivable | $ 65,659,000 | $ 59,853,000 |
Accrued Interest | $ 7,183,000 | $ 4,261,000 |
Student loan | School | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Number of loans | loan | 1,034 | 1,216 |
Financing receivable | $ 39,867,000 | $ 48,825,000 |
Accrued Interest | $ 4,554,000 | $ 3,973,000 |
Student loan | Grace | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Number of loans | loan | 347 | 55 |
Financing receivable | $ 15,144,000 | $ 1,446,000 |
Accrued Interest | $ 2,431,000 | $ 166,000 |
Student loan | Repayment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Number of loans | loan | 218 | 201 |
Financing receivable | $ 6,896,000 | $ 6,473,000 |
Accrued Interest | $ 77,000 | $ 40,000 |
Student loan | Deferment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Number of loans | loan | 30 | 32 |
Financing receivable | $ 1,005,000 | $ 1,128,000 |
Accrued Interest | $ 44,000 | $ 45,000 |
Student loan | Forbearance | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Number of loans | loan | 84 | 50 |
Financing receivable | $ 2,680,000 | $ 1,981,000 |
Accrued Interest | $ 72,000 | $ 37,000 |
Student loan | Claim | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Number of loans | loan | 1 | 0 |
Financing receivable | $ 67,000 | $ 0 |
Accrued Interest | $ 5,000 | $ 0 |
Minimum | ReliaMax | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due dates, delinquent | 180 days | |
Maximum | ReliaMax | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Past due dates, delinquent | 210 days |
Loans, Part VII (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
segment
loan
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Sep. 30, 2017
USD ($)
|
|
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Number of loan portfolio segment | segment | 10 | ||||||
Number of loans entity experienced losses over past twelve quarters | loan | 5 | ||||||
Special mention reserve amount | $ 140,144 | $ 150,842 | |||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | |||||||
Beginning balance | $ 8,425 | $ 9,005 | $ 9,267 | $ 8,902 | |||
Provision (recovery of provision) for credit losses | (373) | 7 | (1,699) | (24) | |||
Charge-offs | (52) | (1) | (151) | (120) | |||
Recoveries | 798 | 147 | 1,381 | 400 | |||
Net recoveries | 746 | 146 | 1,230 | 280 | |||
Ending balance | 8,798 | 9,158 | 8,798 | 9,158 | |||
Period-end amount allocated to [Abstract] | |||||||
Loans individually evaluated for impairment | 1,717 | $ 1,741 | |||||
Loans collectively evaluated for impairment | 7,081 | 7,417 | |||||
Ending balance | 8,425 | 9,005 | $ 9,267 | 8,902 | 8,798 | 9,267 | 9,158 |
Loans Individually Evaluated for Impairment | 19,242 | 15,338 | |||||
Loans Collectively Evaluated for Impairment | 557,873 | 567,046 | |||||
Total Loans | 577,115 | 601,351 | 582,384 | ||||
Consumer Loan | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Number of segments | segment | 3 | ||||||
Total commercial and industrial | |||||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | |||||||
Beginning balance | 1,547 | 1,764 | $ 1,408 | 1,843 | |||
Provision (recovery of provision) for credit losses | (734) | (271) | (915) | (408) | |||
Charge-offs | 0 | (1) | (88) | (106) | |||
Recoveries | 678 | 11 | 1,086 | 174 | |||
Net recoveries | 678 | 10 | 998 | 68 | |||
Ending balance | 1,491 | 1,503 | 1,491 | 1,503 | |||
Period-end amount allocated to [Abstract] | |||||||
Loans individually evaluated for impairment | 633 | 571 | |||||
Loans collectively evaluated for impairment | 858 | 932 | |||||
Ending balance | 1,547 | 1,764 | 1,408 | 1,843 | 1,491 | 1,408 | 1,503 |
Loans Individually Evaluated for Impairment | 3,039 | 3,687 | |||||
Loans Collectively Evaluated for Impairment | 52,484 | 43,264 | |||||
Total Loans | 55,523 | 46,951 | |||||
Commercial and business loans | |||||||
Period-end amount allocated to [Abstract] | |||||||
Loans Individually Evaluated for Impairment | 2,738 | 3,604 | |||||
Loans Collectively Evaluated for Impairment | 51,901 | 42,333 | |||||
Total Loans | 54,639 | 45,937 | |||||
Government program loans | |||||||
Period-end amount allocated to [Abstract] | |||||||
Loans Individually Evaluated for Impairment | 301 | 83 | |||||
Loans Collectively Evaluated for Impairment | 583 | 931 | |||||
Total Loans | 884 | 1,014 | |||||
Total real estate mortgage | |||||||
Period-end amount allocated to [Abstract] | |||||||
Loans Individually Evaluated for Impairment | 3,524 | 3,944 | |||||
Loans Collectively Evaluated for Impairment | 277,711 | 286,518 | |||||
Total Loans | 281,235 | 290,462 | |||||
Commercial real estate loans | |||||||
Period-end amount allocated to [Abstract] | |||||||
Loans Individually Evaluated for Impairment | 1,314 | 1,151 | |||||
Loans Collectively Evaluated for Impairment | 211,325 | 198,517 | |||||
Total Loans | 212,639 | 199,668 | |||||
Residential mortgage loans | |||||||
Period-end amount allocated to [Abstract] | |||||||
Loans Individually Evaluated for Impairment | 2,210 | 2,793 | |||||
Loans Collectively Evaluated for Impairment | 66,053 | 87,491 | |||||
Total Loans | 68,263 | 90,284 | |||||
Home improvement and home equity loans | |||||||
Period-end amount allocated to [Abstract] | |||||||
Loans Individually Evaluated for Impairment | 0 | 0 | |||||
Loans Collectively Evaluated for Impairment | 333 | 510 | |||||
Total Loans | 333 | 510 | |||||
Real Estate Mortgage | |||||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | |||||||
Beginning balance | 1,213 | 1,174 | 1,182 | 1,430 | |||
Provision (recovery of provision) for credit losses | (81) | (91) | (70) | (359) | |||
Charge-offs | (47) | 0 | (47) | (2) | |||
Recoveries | 4 | 59 | 24 | 73 | |||
Net recoveries | (43) | 59 | (23) | 71 | |||
Ending balance | 1,089 | 1,142 | 1,089 | 1,142 | |||
Period-end amount allocated to [Abstract] | |||||||
Loans individually evaluated for impairment | 464 | 427 | |||||
Loans collectively evaluated for impairment | 625 | 715 | |||||
Ending balance | 1,213 | 1,174 | 1,182 | 1,430 | 1,089 | 1,182 | 1,142 |
Real Estate Construction and Development Loans | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Special mention reserve amount | 109,154 | 122,970 | |||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | |||||||
Beginning balance | 2,687 | 2,887 | 2,903 | 3,378 | |||
Provision (recovery of provision) for credit losses | (215) | 112 | (431) | (379) | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Net recoveries | 0 | 0 | 0 | 0 | |||
Ending balance | 2,472 | 2,999 | 2,472 | 2,999 | |||
Period-end amount allocated to [Abstract] | |||||||
Loans individually evaluated for impairment | 0 | 0 | |||||
Loans collectively evaluated for impairment | 2,472 | 2,999 | |||||
Ending balance | 2,687 | 2,887 | 2,903 | 3,378 | 2,472 | 2,903 | 2,999 |
Loans Individually Evaluated for Impairment | 11,713 | 6,816 | |||||
Loans Collectively Evaluated for Impairment | 97,441 | 122,067 | |||||
Total Loans | 109,154 | 128,883 | |||||
Agricultural | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Special mention reserve amount | 59,655 | 59,481 | |||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | |||||||
Beginning balance | 1,301 | 1,589 | 1,631 | 666 | |||
Provision (recovery of provision) for credit losses | (69) | 81 | (399) | 983 | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 21 | |||
Net recoveries | 0 | 0 | 0 | 21 | |||
Ending balance | 1,232 | 1,670 | 1,232 | 1,670 | |||
Period-end amount allocated to [Abstract] | |||||||
Loans individually evaluated for impairment | 620 | 743 | |||||
Loans collectively evaluated for impairment | 612 | 927 | |||||
Ending balance | 1,301 | 1,589 | 1,631 | 666 | 1,232 | 1,631 | 1,670 |
Loans Individually Evaluated for Impairment | 914 | 891 | |||||
Loans Collectively Evaluated for Impairment | 58,741 | 57,614 | |||||
Total Loans | 59,655 | 58,505 | |||||
Installment & Student Loans | |||||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | |||||||
Beginning balance | 840 | 814 | 887 | 888 | |||
Provision (recovery of provision) for credit losses | 687 | (69) | 496 | (186) | |||
Charge-offs | (5) | 0 | (16) | (12) | |||
Recoveries | 116 | 77 | 271 | 132 | |||
Net recoveries | 111 | 77 | 255 | 120 | |||
Ending balance | 1,638 | 822 | 1,638 | 822 | |||
Period-end amount allocated to [Abstract] | |||||||
Loans individually evaluated for impairment | 0 | 0 | |||||
Loans collectively evaluated for impairment | 1,638 | 822 | |||||
Ending balance | 840 | 814 | 887 | 888 | 1,638 | 887 | 822 |
Loans Individually Evaluated for Impairment | 52 | 0 | |||||
Loans Collectively Evaluated for Impairment | 71,496 | 57,583 | |||||
Total Loans | 71,548 | 57,583 | |||||
Unallocated | |||||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | |||||||
Beginning balance | 837 | 777 | 1,256 | 697 | |||
Provision (recovery of provision) for credit losses | 39 | 245 | (380) | 325 | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Net recoveries | 0 | 0 | 0 | 0 | |||
Ending balance | 876 | 1,022 | 876 | 1,022 | |||
Period-end amount allocated to [Abstract] | |||||||
Loans individually evaluated for impairment | 0 | 0 | |||||
Loans collectively evaluated for impairment | 876 | 1,022 | |||||
Ending balance | $ 837 | $ 777 | $ 1,256 | $ 697 | 876 | 1,256 | $ 1,022 |
Total installment and student loans | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Special mention reserve amount | 71,548 | 65,581 | |||||
Special mention | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Special mention reserve amount | 1,197 | 643 | |||||
Special mention | Total installment and student loans | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Special mention reserve amount | $ 565 | $ 0 |
Deposits (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Deposits [Abstract] | ||
Noninterest-bearing deposits | $ 315,213 | $ 307,299 |
Interest-bearing deposits: | ||
NOW and money market accounts | 302,143 | 234,154 |
Savings accounts | 88,609 | 81,408 |
Under $250,000 | 50,798 | 51,687 |
$250,000 and over | 22,120 | 13,145 |
Total interest-bearing deposits | 463,670 | 380,394 |
Total deposits | 778,883 | 687,693 |
Total brokered deposits included in time deposits above | $ 0 | $ 0 |
Short-term Borrowings/Other Borrowings (Details) - USD ($) |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Short-term Debt [Line Items] | ||
Short-term debt outstanding | $ 0 | $ 0 |
Federal Reserve Bank of San Francisco | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | 295,622,000 | 305,236,000 |
Qualifying loans pledged as collateral for borrowing lines | 430,409,000 | 473,364,000 |
Federal Home Loan Bank (FHLB) | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | 4,359,000 | 13,363,000 |
Investment securities pledged as collateral | 4,600,000 | 17,049,000 |
Pacific Coast Bankers Bank | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | 10,000,000 | 10,000,000 |
Union Bank | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | 10,000,000 | |
Zions First National Bank | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | $ 20,000,000 | $ 20,000,000 |
Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Cash paid during the period for: | |||||
Interest | $ 1,815 | $ 1,313 | |||
Income taxes | 5,590 | 5,700 | |||
Noncash investing activities: | |||||
Unrealized gains on unrecognized post-retirement costs | $ 14 | $ 13 | 41 | 39 | |
Unrealized holdings (loss) gain on securities | $ (226) | $ 0 | (655) | 355 | |
Unrealized gains on TRUPs | 280 | 0 | |||
Stock dividends issued | 0 | 1,220 | |||
Cash dividend declared | 3,042 | 1,688 | |||
Adoption of ASU 2016-01: reclassification of TRUPS to accumulated other comprehensive income | 1,482 | 0 | |||
Adoption of ASU 2016-01: recognition of previously unrealized losses within marketable equity securities | 184 | 0 | |||
Dividend declared | |||||
Noncash investing activities: | |||||
Cash dividend declared | $ 1,182 | $ 1,690 | $ 1,182 |
Dividend on Common Stock (Details) - USD ($) |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 27, 2018 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 25, 2018 |
Jun. 26, 2018 |
Dec. 31, 2017 |
|
Equity [Abstract] | ||||||
Dividends declared on common stock (in dollars per share) | $ 0.09 | $ 180.00 | $ 170.00 | |||
Dividends on common stock | $ 1,521,000 | $ 3,042,000 | $ 1,688,000 | |||
Dividends payable (in dollars per share) | $ 0.10 | $ 70.00 | $ 0.10 | $ 0.09 | $ 70.00 | |
Dividends payable | $ 1,690,000 | $ 1,521,000 | ||||
Authorized repurchase amount, common stock | $ 3,000,000 |
Net Income per Common 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] | ||||
Net income | $ 3,518 | $ 2,740 | $ 10,068 | $ 7,004 |
Weighted average shares issued (in shares) | 16,902,218 | 16,885,615 | 16,897,524 | 16,885,578 |
Add: dilutive effect of stock options (in shares) | 51,835 | 21,652 | 35,953 | 18,485 |
Weighted average shares outstanding adjusted for potential dilution (in shares) | 16,954,053 | 16,907,267 | 16,933,477 | 16,904,063 |
Basic earnings per share (in dollars per share) | $ 0.21 | $ 0.16 | $ 0.60 | $ 0.41 |
Diluted earnings per share (in dollars per share) | $ 0.21 | $ 0.16 | $ 0.59 | $ 0.41 |
Anti-dilutive shares excluded from earnings per share calculation (in shares) | 60,000 | 30,000 | 103,000 | 30,000 |
Taxes on Income (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Income Tax Disclosure [Abstract] | |||||
Deferred tax assets, valuation allowance | $ 0 | $ 0 | $ 0 | ||
Provision for Taxes on Income | $ 1,424,000 | $ 1,840,000 | $ 4,077,000 | $ 4,685,000 | |
Effective income tax rate, percent | 28.81% | 40.17% | 28.82% | 40.08% |
Junior Subordinated Debt/Trust Preferred Securities (Details) |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|---|
Sep. 30, 2009
USD ($)
|
Sep. 30, 2015
USD ($)
|
Aug. 31, 2015
USD ($)
|
Sep. 30, 2018
USD ($)
$ / shares
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
quarter
$ / shares
|
Sep. 30, 2017
USD ($)
|
|
Debt Instrument [Line Items] | |||||||
Gain (loss) on fair value financial liability, OCI, net | $ 1,482,000 | $ 0 | |||||
Gain (loss) on fair value financial liability | $ (277,000) | (643,000) | |||||
Loss on fair value financial liability, gross | (262,000) | $ (88,000) | (923,000) | (688,000) | |||
Loss on fair value financial liability, net | (185,000) | (52,000) | (650,000) | (405,000) | |||
Gain on fair value financial liability, gross | 280,000 | 0 | |||||
Gain on fair value financial liability, net | 197,000 | ||||||
Unrealized (loss) gain on junior subordinated debentures | (14,000) | $ 0 | 280,000 | $ 0 | |||
Unrealized (loss) gain on junior subordinated debentures net of taxes | (10,000) | ||||||
Junior Subordinated Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, frequency of periodic payment | quarterly | ||||||
Amount of junior subordinated debentures relating to trust preferred securities | $ 15,000,000 | 12,000,000.0 | $ 12,000,000.0 | ||||
Maximum number of consecutive quarters the entity defer interest payments without default or penalty | quarter | 20 | ||||||
Debt instrument, unamortized discount rate | 40.00% | ||||||
Debt instrument, repurchased face amount | $ 3,000,000.0 | ||||||
Gain on redemption of Jr subordinated debentures | $ 78,000 | ||||||
Life of debt instrument | 30 years | ||||||
Fair value measurement option, gain (loss) on long-term debt instruments | $ 2,171,000 | $ 2,171,000 | |||||
Junior Subordinated Debt | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.29% | ||||||
Junior Subordinated Debt | United Security Bank | |||||||
Debt Instrument [Line Items] | |||||||
Amount of junior subordinated debentures relating to trust preferred securities | $ 3,000,000.0 | ||||||
ASU 2016-01 | |||||||
Debt Instrument [Line Items] | |||||||
Impact of adoption on earnings per share, basic (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||
Impact of adoption on earnings per share, diluted (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||
Retained Earnings | ASU 2016-01 | |||||||
Debt Instrument [Line Items] | |||||||
Gain (loss) on fair value financial liability, OCI, net | $ 1,482,000 |
Fair Value Measurements and Disclosure (Details 1) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Financial assets: | ||
AFS Investment securities | $ 62,103 | $ 41,985 |
Marketable equity securities | 3,624 | 3,737 |
Investment securities | 62,103 | 41,985 |
Deposits: | ||
Junior subordinated debt | 10,403 | 9,730 |
Quoted Prices In Active Markets for Identical Assets Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 207,300 | 107,934 |
Marketable equity securities | 3,624 | 3,737 |
Investment securities | 0 | 3,737 |
Deposits: | ||
Noninterest-bearing | 315,213 | 307,299 |
NOW and money market | 302,143 | 234,154 |
Savings | 88,609 | 81,408 |
Total deposits | 705,965 | 622,861 |
Significant Other Observable Inputs Level 2 | ||
Financial assets: | ||
AFS Investment securities | 62,103 | |
Investment securities | 62,103 | 41,985 |
Accrued interest receivable | 9,412 | 6,526 |
Deposits: | ||
Accrued interest payable | 57 | 44 |
Significant Unobservable Inputs Level 3 | ||
Financial assets: | ||
Loans | 558,811 | 588,938 |
Deposits: | ||
Time deposits | 72,106 | 64,387 |
Total deposits | 72,106 | 64,387 |
Junior subordinated debt | 10,403 | 9,730 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 207,300 | 107,934 |
AFS Investment securities | 62,103 | |
Investment securities | 41,985 | |
Loans | 568,800 | 593,123 |
Accrued interest receivable | 9,412 | 6,526 |
Deposits: | ||
Noninterest-bearing | 315,213 | 307,299 |
NOW and money market | 302,143 | 234,154 |
Savings | 88,609 | 81,408 |
Time deposits | 72,918 | 64,832 |
Total deposits | 778,883 | 687,693 |
Junior subordinated debt | 10,403 | 9,730 |
Accrued interest payable | 57 | 44 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 207,300 | 107,934 |
AFS Investment securities | 62,103 | |
Marketable equity securities | 3,624 | |
Investment securities | 45,722 | |
Loans | 558,811 | 588,938 |
Accrued interest receivable | 9,412 | 6,526 |
Deposits: | ||
Noninterest-bearing | 315,213 | 307,299 |
NOW and money market | 302,143 | 234,154 |
Savings | 88,609 | 81,408 |
Time deposits | 72,106 | 64,387 |
Total deposits | 778,071 | 687,248 |
Junior subordinated debt | 10,403 | 9,730 |
Accrued interest payable | $ 57 | $ 44 |
Fair Value Measurements and Disclosure (Details 2) - Significant Unobservable Inputs (Level 3) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Junior Subordinated Debt | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation Technique | Discounted cash flow | Discounted cash flow |
Junior Subordinated Debt | Measurement input, discount rate | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Subordinated debt, weighted average | 0.0605 | 0.0581 |
Impaired Loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation Technique | Income approach and sales comparison approach | |
Impaired Loans | Measurement input, discount rate | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, weighted average | 0.168 |
Fair Value Measurements and Disclosure (Details 3) - USD ($) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
AFS Securities [Abstract] | ||
AFS Investment securities | $ 62,103,000 | $ 41,985,000 |
Total AFS securities | 62,103,000 | 41,985,000 |
Impaired loans | ||
Real estate mortgage | 393,000 | |
Total impaired loans | 393,000 | |
Marketable equity securities | 3,624,000 | 3,737,000 |
Total | 66,120,000 | 45,722,000 |
Description of Liabilities [Abstract] | ||
Junior subordinated debt | 10,403,000 | 9,730,000 |
Total | 10,403,000 | 9,730,000 |
Write down on other real estate owned | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
AFS Securities [Abstract] | ||
Total AFS securities | 0 | 3,737,000 |
Impaired loans | ||
Marketable equity securities | 3,624,000 | 3,737,000 |
Total | 3,624,000 | 3,737,000 |
Significant Other Observable Inputs (Level 2) | ||
AFS Securities [Abstract] | ||
AFS Investment securities | 62,103,000 | |
Total AFS securities | 62,103,000 | 41,985,000 |
Impaired loans | ||
Total | 62,103,000 | 41,985,000 |
Significant Unobservable Inputs (Level 3) | ||
Impaired loans | ||
Real estate mortgage | 393,000 | |
Total impaired loans | 393,000 | |
Total | 393,000 | 0 |
Description of Liabilities [Abstract] | ||
Junior subordinated debt | 10,403,000 | 9,730,000 |
Total | 10,403,000 | 9,730,000 |
U.S. Government agencies | ||
AFS Securities [Abstract] | ||
AFS Investment securities | 34,131,000 | 19,954,000 |
U.S. Government agencies | Significant Other Observable Inputs (Level 2) | ||
AFS Securities [Abstract] | ||
AFS Investment securities | 34,131,000 | 19,954,000 |
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | ||
AFS Securities [Abstract] | ||
AFS Investment securities | 27,972,000 | 22,031,000 |
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | Significant Other Observable Inputs (Level 2) | ||
AFS Securities [Abstract] | ||
AFS Investment securities | $ 27,972,000 | $ 22,031,000 |
Fair Value Measurements and Disclosure (Details 4) - Junior Subordinated Debt - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Reconciliation of Liabilities [Roll Forward] | ||||
Beginning balance | $ 10,125 | $ 9,441 | $ 9,730 | $ 8,832 |
Gross loss included in earnings | 262 | 88 | 923 | 688 |
Gross loss (gain) related to changes in instrument specific credit risk | 15 | 0 | (280) | 0 |
Change in accrued interest | 1 | 5 | 30 | 14 |
Ending balance | 10,403 | 9,534 | 10,403 | 9,534 |
The amount of total (gain) loss for the period included in earnings attributable to the change in unrealized gains or losses relating to liabilities still held at the reporting date | $ 262 | $ 88 | $ 923 | $ 688 |
Goodwill and Intangible Assets (Details) - USD ($) |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 4,488,000 | $ 4,488,000 |
Accumulated Other Comprehensive Income (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 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | $ 101,352 | $ 96,654 | $ 96,654 | ||
Other comprehensive income (loss) | $ (159) | $ 8 | (234) | 236 | |
Balance | 107,046 | 101,108 | 107,046 | 101,108 | 101,352 |
Net unrealized loss on available for sale securities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | (248) | (221) | (221) | ||
Reclassification from accumulated other comprehensive income, current period | 184 | ||||
Other comprehensive income (loss) | (460) | (27) | |||
Balance | (524) | (524) | (248) | ||
Unfunded status of the supplemental retirement plans | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | (462) | (383) | (383) | ||
Other comprehensive income (loss) | 29 | (79) | |||
Balance | (433) | (433) | (462) | ||
Net unrealized gain on junior subordinated debentures | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | 0 | 0 | 0 | ||
Reclassification from accumulated other comprehensive income, current period | 1,482 | ||||
Other comprehensive income (loss) | 197 | 0 | |||
Balance | 1,679 | 1,679 | 0 | ||
Accumulated other comprehensive income (loss) | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | (710) | (604) | (604) | ||
Balance | $ 722 | $ (368) | $ 722 | $ (368) | $ (710) |
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