Tennessee | 37-1641316 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
1736 Carothers Parkway | |
Suite 100 | |
Brentwood, | |
Tennessee | 37027 |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $1.00 par value per share | RBNC | The Nasdaq Capital Market |
Large Accelerated Filer | ¨ | Accelerated Filer | ý |
Non-Accelerated Filer | ¨ | Smaller Reporting Company | ý |
Emerging growth company | ý |
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS | 3 | |
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
(i) | the possibility that our asset quality will decline or that we experience greater loan losses than anticipated; |
(ii) | increased levels of other real estate, primarily as a result of foreclosures; |
(iii) | the impact of liquidity needs on our results of operations and financial condition; |
(iv) | the effect of interest rate increases on the cost of deposits; |
(v) | unanticipated weakness in loan demand or loan pricing; |
(vi) | greater than anticipated adverse conditions in the national economy or local economies in which we operate, including Middle Tennessee; |
(vii) | lack of strategic growth opportunities or our failure to execute on those opportunities; |
(viii) | deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses; |
(ix) | the ability to grow and retain low-cost core deposits and retain large, uninsured deposits; |
(x) | the impact of competition with other financial institutions and financial services providers, including pricing pressures and the resulting impact on Reliant Bancorp’s results, including as a result of compression to net interest margin; |
(xi) | our ability to effectively manage problem credits; |
(xii) | our ability to successfully implement efficiency initiatives on time and in amounts projected; |
(xiii) | our ability to successfully develop and market new products and technology; |
(xiv) | the impact of negative developments in the financial industry and U.S. and global capital and credit markets; |
(xv) | our ability to retain the services of key personnel; |
(xvi) | our ability to adapt to technological changes; |
(xvii) | risks associated with litigation, including the applicability of insurance coverage; |
(xviii) | the vulnerability of Reliant Bank’s network and online banking portals, and the systems of parties with whom Reliant Bancorp and Reliant Bank contract, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss, and other security breaches; |
(xix) | changes in state and federal laws, rules, regulations or policies applicable to banks or bank or financial holding companies, including regulatory or legislative developments; |
(xx) | adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions; and |
(xxi) | general competitive, economic, political and market conditions, including economic conditions in the local markets where we operate. |
June 30, 2019 | December 31, 2018 | ||||||
Unaudited | Audited | ||||||
ASSETS | |||||||
Cash and due from banks | $ | 35,917 | $ | 34,807 | |||
Federal funds sold | 80 | 371 | |||||
Total cash and cash equivalents | 35,997 | 35,178 | |||||
Securities available for sale | 290,373 | 296,323 | |||||
Loans, net | 1,301,019 | 1,220,184 | |||||
Mortgage loans held for sale, net | 11,571 | 15,823 | |||||
Accrued interest receivable | 7,246 | 8,214 | |||||
Premises and equipment, net | 21,632 | 22,033 | |||||
Restricted equity securities, at cost | 11,488 | 11,690 | |||||
Other real estate, net | 1,848 | 1,000 | |||||
Cash surrender value of life insurance contracts | 46,068 | 45,513 | |||||
Deferred tax assets, net | 3,133 | 7,428 | |||||
Goodwill | 43,642 | 43,642 | |||||
Core deposit intangibles | 7,745 | 8,219 | |||||
Other assets | 12,486 | 9,091 | |||||
TOTAL ASSETS | $ | 1,794,248 | $ | 1,724,338 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
LIABILITIES | |||||||
Deposits | |||||||
Demand | $ | 225,380 | $ | 216,937 | |||
Interest-bearing demand | 144,265 | 154,218 | |||||
Savings and money market deposit accounts | 368,764 | 401,308 | |||||
Time | 811,871 | 665,440 | |||||
Total deposits | 1,550,280 | 1,437,903 | |||||
Accrued interest payable | 967 | 1,063 | |||||
Subordinated debentures | 11,644 | 11,603 | |||||
Federal Home Loan Bank advances | 11,119 | 57,498 | |||||
Dividends payable | 1,008 | 1,036 | |||||
Other liabilities | 5,287 | 6,821 | |||||
TOTAL LIABILITIES | 1,580,305 | 1,515,924 | |||||
STOCKHOLDERS’ EQUITY | |||||||
Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued to date | — | — | |||||
Common stock, $1 par value; 30,000,000 shares authorized; 11,196,563 and 11,530,810 shares issued and outstanding at June 30, 2019, and December 31, 2018, respectively | 11,197 | 11,531 | |||||
Additional paid-in capital | 166,252 | 173,238 | |||||
Retained earnings | 33,349 | 27,329 | |||||
Accumulated other comprehensive income (loss) | 3,145 | (3,684 | ) | ||||
TOTAL STOCKHOLDERS’ EQUITY | 213,943 | 208,414 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,794,248 | $ | 1,724,338 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
INTEREST INCOME | ||||||||||||||||
Interest and fees on loans | $ | 16,960 | $ | 14,066 | $ | 33,129 | $ | 27,624 | ||||||||
Interest and fees on loans held for sale | 198 | 326 | 351 | 807 | ||||||||||||
Interest on investment securities, taxable | 587 | 453 | 1,090 | 960 | ||||||||||||
Interest on investment securities, nontaxable | 1,650 | 1,708 | 3,368 | 3,212 | ||||||||||||
Federal funds sold and other | 297 | 277 | 597 | 589 | ||||||||||||
TOTAL INTEREST INCOME | 19,692 | 16,830 | 38,535 | 33,192 | ||||||||||||
INTEREST EXPENSE | ||||||||||||||||
Deposits | ||||||||||||||||
Demand | 86 | 84 | 197 | 161 | ||||||||||||
Savings and money market deposit accounts | 1,051 | 574 | 2,181 | 1,052 | ||||||||||||
Time | 4,369 | 2,199 | 7,940 | 4,195 | ||||||||||||
Federal Home Loan Bank advances and other | 175 | 397 | 552 | 669 | ||||||||||||
Subordinated debentures | 198 | 172 | 391 | 329 | ||||||||||||
TOTAL INTEREST EXPENSE | 5,879 | 3,426 | 11,261 | 6,406 | ||||||||||||
NET INTEREST INCOME | 13,813 | 13,404 | 27,274 | 26,786 | ||||||||||||
PROVISION FOR LOAN LOSSES | 200 | 300 | 200 | 437 | ||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 13,613 | 13,104 | 27,074 | 26,349 | ||||||||||||
NONINTEREST INCOME | ||||||||||||||||
Service charges on deposit accounts | 936 | 900 | 1,820 | 1,671 | ||||||||||||
Gains on mortgage loans sold, net | 1,225 | 957 | 1,785 | 2,662 | ||||||||||||
Gain on securities transactions, net | 175 | 25 | 306 | 25 | ||||||||||||
Gain on sale of other real estate | — | 20 | — | 109 | ||||||||||||
Other | 362 | 352 | 725 | 778 | ||||||||||||
TOTAL NONINTEREST INCOME | 2,698 | 2,254 | 4,636 | 5,245 | ||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||
Salaries and employee benefits | 7,706 | 6,613 | 14,971 | 13,567 | ||||||||||||
Occupancy | 1,358 | 1,210 | 2,710 | 2,439 | ||||||||||||
Information technology | 1,575 | 1,249 | 2,985 | 2,598 | ||||||||||||
Advertising and public relations | 275 | 141 | 529 | 230 | ||||||||||||
Audit, legal and consulting | 690 | 816 | 1,486 | 1,439 | ||||||||||||
Federal deposit insurance | 249 | 224 | 444 | 420 | ||||||||||||
Merger expenses | 1 | 2,483 | 3 | 2,660 | ||||||||||||
Other operating | 1,272 | 1,305 | 2,744 | 2,850 | ||||||||||||
TOTAL NONINTEREST EXPENSE | 13,126 | 14,041 | 25,872 | 26,203 | ||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 3,185 | 1,317 | 5,838 | — | 5,391 | |||||||||||
INCOME TAX EXPENSE | 501 | 115 | 873 | 912 | ||||||||||||
CONSOLIDATED NET INCOME | 2,684 | 1,202 | 4,965 | 4,479 | ||||||||||||
NONCONTROLLING INTEREST IN NET LOSS OF SUBSIDIARY | 1,555 | 937 | 3,098 | 1,401 | ||||||||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 4,239 | $ | 2,139 | $ | 8,063 | $ | 5,880 | ||||||||
Basic net income attributable to common shareholders, per share | $ | 0.38 | $ | 0.19 | $ | 0.71 | $ | 0.52 | ||||||||
Diluted net income attributable to common shareholders, per share | $ | 0.38 | $ | 0.19 | $ | 0.71 | $ | 0.51 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Consolidated net income | $ | 2,684 | $ | 1,202 | $ | 4,965 | $ | 4,479 | |||||||
Other comprehensive income (loss) | |||||||||||||||
Net unrealized gains (losses) on available-for-sale securities, net of tax of ($1,241) and ($31) for the three months ended June 30, 2019 and 2018, respectively, and ($2,962) and $1,548 for the six months ended June 30, 2019 and 2018, respectively | 3,523 | 36 | 8,386 | (4,378 | ) | ||||||||||
Net unrealized losses on interest rate swap derivatives net of tax of $304 for the three months ended June 30, 2019 and $471 for the six months ended June 30, 2019 | (861 | ) | — | (1,331 | ) | — | |||||||||
Reclassification adjustment for gains included in net income, net of tax of $46 and $7 for the three months ended June 30, 2019 and 2018, respectively, and $80 and $7 for the six months ended June 30, 2019 and 2018, respectively | (129 | ) | (18 | ) | (226 | ) | (18 | ) | |||||||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | 2,533 | 18 | 6,829 | (4,396 | ) | ||||||||||
TOTAL COMPREHENSIVE INCOME | $ | 5,217 | $ | 1,220 | $ | 11,794 | $ | 83 |
COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NONCONTROLLING INTEREST | TOTAL | |||||||||||||||||||||
SHARES | AMOUNT | |||||||||||||||||||||||||
BALANCE - JANUARY 1, 2019 | 11,530,810 | $ | 11,531 | $ | 173,238 | $ | 27,329 | $ | (3,684 | ) | $ | — | $ | 208,414 | ||||||||||||
Stock based compensation expense | — | — | 250 | — | — | — | 250 | |||||||||||||||||||
Exercise of stock options | 2,183 | 2 | 26 | — | — | — | 28 | |||||||||||||||||||
Restricted stock awards | 3,000 | 3 | (3 | ) | — | — | — | — | ||||||||||||||||||
Restricted stock and dividend forfeiture | (3,750 | ) | (4 | ) | 4 | 1 | — | — | 1 | |||||||||||||||||
Common stock shares redeemed | (29,958 | ) | (30 | ) | (629 | ) | — | — | — | (659 | ) | |||||||||||||||
Noncontrolling interest contributions | — | — | — | — | — | 1,543 | 1,543 | |||||||||||||||||||
Cash dividend declared to common shareholders | — | — | — | (1,035 | ) | — | — | (1,035 | ) | |||||||||||||||||
Net income (loss) | — | — | — | 3,824 | — | (1,543 | ) | 2,281 | ||||||||||||||||||
Other comprehensive loss | — | — | — | — | 4,296 | — | 4,296 | |||||||||||||||||||
BALANCE - MARCH 31, 2019 | 11,502,285 | 11,502 | 172,886 | 30,119 | 612 | — | 215,119 | |||||||||||||||||||
Stock based compensation expense | — | — | 280 | — | — | — | 280 | |||||||||||||||||||
Exercise of stock options | 24,523 | 25 | 298 | — | — | — | 323 | |||||||||||||||||||
Employee Stock Purchase Plan stock issuance | 4,728 | 5 | 85 | — | — | — | 90 | |||||||||||||||||||
Restricted stock awards | 5,000 | 5 | (5 | ) | — | — | — | — | ||||||||||||||||||
Restricted stock and dividend forfeiture | (4,000 | ) | (4 | ) | 4 | — | — | — | — | |||||||||||||||||
Common stock shares redeemed | (335,973 | ) | (336 | ) | (7,296 | ) | — | — | — | (7,632 | ) | |||||||||||||||
Noncontrolling interest contributions | — | — | — | — | — | 1,555 | 1,555 | |||||||||||||||||||
Cash dividend declared to common shareholders | — | — | — | (1,009 | ) | — | — | (1,009 | ) | |||||||||||||||||
Net income (loss) | — | — | — | 4,239 | — | (1,555 | ) | 2,684 | ||||||||||||||||||
Other comprehensive income | — | — | — | — | 2,533 | — | 2,533 | |||||||||||||||||||
BALANCE - JUNE 30, 2019 | 11,196,563 | $ | 11,197 | $ | 166,252 | $ | 33,349 | $ | 3,145 | $ | — | $ | 213,943 |
COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NONCONTROLLING INTEREST | TOTAL | |||||||||||||||||||||
SHARES | AMOUNT | |||||||||||||||||||||||||
BALANCE - JANUARY 1, 2018 | 9,034,439 | $ | 9,034 | $ | 112,437 | $ | 17,189 | $ | 1,477 | $ | — | $ | 140,137 | |||||||||||||
Stock based compensation expense | — | — | 224 | — | — | — | 224 | |||||||||||||||||||
Exercise of stock options | 25,225 | 25 | 315 | — | — | — | 340 | |||||||||||||||||||
Restricted stock awards | 4,500 | 5 | (5 | ) | — | — | — | — | ||||||||||||||||||
Restricted stock forfeiture | (1,000 | ) | (1 | ) | 1 | — | — | — | — | |||||||||||||||||
Conversion shares issued to shareholders' of Community First, Inc. | 2,416,444 | 2,417 | 59,566 | — | — | — | 61,983 | |||||||||||||||||||
Noncontrolling interest contributions | — | — | — | — | — | 464 | 464 | |||||||||||||||||||
Cash dividends declared to common shareholders | — | — | — | (1,060 | ) | — | — | (1,060 | ) | |||||||||||||||||
Net income (loss) | — | — | — | 3,741 | — | (464 | ) | 3,277 | ||||||||||||||||||
Other comprehensive income | — | — | — | — | (4,414 | ) | — | (4,414 | ) | |||||||||||||||||
BALANCE - MARCH 31, 2018 | 11,479,608 | 11,480 | 172,538 | 19,870 | (2,937 | ) | — | 200,951 | ||||||||||||||||||
Stock based compensation expense | — | — | 148 | — | — | — | 148 | |||||||||||||||||||
Exercise of stock options | 357 | — | 3 | — | — | — | 3 | |||||||||||||||||||
Restricted stock awards | 3,000 | 3 | (3 | ) | — | — | — | — | ||||||||||||||||||
Noncontrolling interest contributions | — | — | — | — | — | 937 | 937 | |||||||||||||||||||
Cash dividend declared to common shareholders | — | — | — | (919 | ) | — | — | (919 | ) | |||||||||||||||||
Net income (loss) | — | — | — | 2,139 | — | (937 | ) | 1,202 | ||||||||||||||||||
Other comprehensive income | — | — | — | — | 18 | — | 18 | |||||||||||||||||||
BALANCE - JUNE 30, 2018 | 11,482,965 | $ | 11,483 | $ | 172,686 | $ | 21,090 | $ | (2,919 | ) | $ | — | $ | 202,340 |
Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
OPERATING ACTIVITIES | |||||||
Consolidated net income | $ | 4,965 | $ | 4,479 | |||
Adjustments to reconcile consolidated net income to net cash provided by operating activities | |||||||
Provision for loan losses | 200 | 437 | |||||
Deferred income taxes (benefit) | 1,880 | (374 | ) | ||||
Depreciation and amortization of premises and equipment | 991 | 792 | |||||
Net amortization of securities | 1,586 | 1,515 | |||||
Net realized gains on sales of securities | (306 | ) | (25 | ) | |||
Gains on mortgage loans sold, net | (1,785 | ) | (2,662 | ) | |||
Stock-based compensation expense | 530 | 372 | |||||
Realization of gain on other real estate | — | (109 | ) | ||||
Increase in cash surrender value of life insurance contracts | (555 | ) | (600 | ) | |||
Mortgage loans originated for resale | (57,816 | ) | (70,064 | ) | |||
Proceeds from sale of mortgage loans | 63,853 | 87,795 | |||||
Other accretion | (380 | ) | (471 | ) | |||
Change in | |||||||
Accrued interest receivable | 968 | (565 | ) | ||||
Other assets | (3,202 | ) | (856 | ) | |||
Accrued interest payable | (96 | ) | 496 | ||||
Other liabilities | (4,389 | ) | (1,321 | ) | |||
TOTAL ADJUSTMENTS | 1,479 | 14,360 | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 6,444 | 18,839 | |||||
INVESTING ACTIVITIES | |||||||
Cash received from merger | — | 33,128 | |||||
Activities in available for sale securities | |||||||
Purchases | (41,083 | ) | (103,323 | ) | |||
Sales | 52,434 | 92,991 | |||||
Maturities, prepayments and calls | 5,418 | 6,862 | |||||
Purchases of restricted equity securities | — | (2,177 | ) | ||||
Redemption of restricted equity securities | 202 | — | |||||
Net increase in loans | (81,026 | ) | (57,337 | ) | |||
Purchase of buildings, leasehold improvements, and equipment | (590 | ) | (1,372 | ) | |||
Proceeds from sale of other real estate | — | 670 | |||||
NET CASH USED IN INVESTING ACTIVITIES | (64,645 | ) | (30,558 | ) | |||
Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
FINANCING ACTIVITIES | |||||||
Net change in deposits | 112,388 | 18,298 | |||||
Net change in advances from Federal Home Loan Bank | (46,352 | ) | 6,154 | ||||
Issuance of common stock, net | 351 | 343 | |||||
Issuance of common stock from Employee Stock Purchase Plan | 90 | — | |||||
Redemption of common stock | (8,291 | ) | — | ||||
Noncontrolling interest contributions received | 2,905 | 560 | |||||
Cash dividends paid on common stock | (2,071 | ) | (1,602 | ) | |||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 59,020 | 23,753 | |||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 819 | 12,034 | |||||
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 35,178 | 20,668 | |||||
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 35,997 | $ | 32,702 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
Cash paid during the period for | |||||||
Interest | $ | 11,357 | $ | 5,910 | |||
Taxes | $ | 536 | $ | 1,623 | |||
Non-cash investing and financing activities | |||||||
Unrealized gain (loss) on securities available-for-sale | $ | 12,099 | $ | (6,499 | ) | ||
Unrealized gain (loss) on derivatives | $ | (2,859 | ) | $ | 598 | ||
Change in due to/from noncontrolling interest | $ | 3,098 | $ | 1,401 | |||
Loans foreclosed and transferred to other real estate owned and foreclosed assets | $ | 848 | $ | 1,060 |
June 30, 2019 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
U. S. Treasury and other U. S. government agencies | $ | 313 | $ | — | $ | (1 | ) | $ | 312 | ||||||
State and municipal | 212,157 | 8,540 | (83 | ) | 220,614 | ||||||||||
Corporate bonds | 3,130 | 2 | (113 | ) | 3,019 | ||||||||||
Mortgage backed securities | 37,515 | 190 | (197 | ) | 37,508 | ||||||||||
Asset backed securities | 29,430 | 12 | (522 | ) | 28,920 | ||||||||||
Total | $ | 282,545 | $ | 8,744 | $ | (916 | ) | $ | 290,373 |
December 31, 2018 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
U. S. Treasury and other U. S. government agencies | $ | 568 | $ | — | $ | (14 | ) | $ | 554 | ||||||
State and municipal | 232,589 | 879 | (4,170 | ) | 229,298 | ||||||||||
Corporate bonds | 3,130 | — | (113 | ) | 3,017 | ||||||||||
Mortgage backed securities | 32,172 | 34 | (248 | ) | 31,958 | ||||||||||
Asset backed securities | 28,635 | — | (639 | ) | 27,996 | ||||||||||
Time deposits | 3,500 | — | — | 3,500 | |||||||||||
Total | $ | 300,594 | $ | 913 | $ | (5,184 | ) | $ | 296,323 |
Amortized Cost | Estimated Fair Value | ||||||
Due within one year | $ | 660 | $ | 663 | |||
Due in one to five years | 938 | 935 | |||||
Due in five to ten years | 7,240 | 7,400 | |||||
Due after ten years | 206,762 | 214,947 | |||||
Mortgage backed securities | 37,515 | 37,508 | |||||
Asset backed securities | 29,430 | 28,920 | |||||
Total | $ | 282,545 | $ | 290,373 |
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss | ||||||||||||||||||
Description of Securities | |||||||||||||||||||||||
U. S. Treasury and other U. S. government agencies | $ | — | $ | — | $ | 249 | $ | 1 | $ | 249 | $ | 1 | |||||||||||
State and municipal | — | — | 9,611 | 83 | 9,611 | 83 | |||||||||||||||||
Corporate bonds | — | — | 2,517 | 113 | 2,517 | 113 | |||||||||||||||||
Mortgage backed securities | 9,706 | 127 | 5,200 | 70 | 14,906 | 197 | |||||||||||||||||
Asset backed securities | 2,100 | 6 | 24,704 | 516 | 26,804 | 522 | |||||||||||||||||
Total temporarily impaired | $ | 11,806 | $ | 133 | $ | 42,281 | $ | 783 | $ | 54,087 | $ | 916 |
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss | ||||||||||||||||||
Description of Securities | |||||||||||||||||||||||
U. S. Treasury and other U. S. government agencies | $ | — | $ | — | $ | 555 | $ | 14 | $ | 555 | $ | 14 | |||||||||||
State and municipal | 118,580 | 2,263 | 47,223 | 1,907 | 165,803 | 4,170 | |||||||||||||||||
Corporate bonds | 2,526 | 105 | 492 | 8 | 3,018 | 113 | |||||||||||||||||
Mortgage backed securities | 17,015 | 99 | 5,397 | 149 | 22,412 | 248 | |||||||||||||||||
Asset backed securities | 20,351 | 383 | 7,255 | 256 | 27,606 | 639 | |||||||||||||||||
Total temporarily impaired | $ | 158,472 | $ | 2,850 | $ | 60,922 | $ | 2,334 | $ | 219,394 | $ | 5,184 |
June 30, 2019 | December 31, 2018 | ||||||
Commercial, Industrial and Agricultural | $ | 233,312 | $ | 213,850 | |||
Real Estate | |||||||
1-4 Family Residential | 233,229 | 225,863 | |||||
1-4 Family HELOC | 94,436 | 88,112 | |||||
Multi-family and Commercial | 481,973 | 447,840 | |||||
Construction, Land Development and Farmland | 237,421 | 220,801 | |||||
Consumer | 18,881 | 20,495 | |||||
Other | 13,338 | 14,106 | |||||
Total | 1,312,590 | 1,231,067 | |||||
Less | |||||||
Deferred loan fees (cost) | (95 | ) | (9 | ) | |||
Allowance for possible loan losses | 11,666 | 10,892 | |||||
Loans, net | $ | 1,301,019 | $ | 1,220,184 |
Commercial Industrial and Agricultural | Multi-family and Commercial Real Estate | Construction Land Development and Farmland | 1-4 Family Residential Real Estate | ||||||||||||
Beginning balance | $ | 1,751 | $ | 4,429 | $ | 2,500 | $ | 1,333 | |||||||
Charge-offs | (168 | ) | — | — | (17 | ) | |||||||||
Recoveries | 294 | 59 | 201 | 216 | |||||||||||
Provision | 4 | 225 | 6 | (77 | ) | ||||||||||
Ending balance | $ | 1,881 | $ | 4,713 | $ | 2,707 | $ | 1,455 |
1-4 Family HELOC | Consumer | Other | Total | ||||||||||||
Beginning balance | $ | 656 | $ | 184 | $ | 39 | $ | 10,892 | |||||||
Charge-offs | — | (21 | ) | (13 | ) | (219 | ) | ||||||||
Recoveries | 11 | 12 | — | 793 | |||||||||||
Provision | 19 | 13 | 10 | 200 | |||||||||||
Ending balance | $ | 686 | $ | 188 | $ | 36 | $ | 11,666 |
Commercial Industrial and Agricultural | Multi-family and Commercial Real Estate | Construction Land Development and Farmland | 1-4 Family Residential Real Estate | ||||||||||||
Beginning balance | $ | 2,538 | $ | 3,166 | $ | 2,434 | $ | 773 | |||||||
Charge-offs | (308 | ) | — | (140 | ) | (8 | ) | ||||||||
Recoveries | 425 | 3 | 44 | 11 | |||||||||||
Provision | (970 | ) | 692 | 177 | 469 | ||||||||||
Ending balance | $ | 1,685 | $ | 3,861 | $ | 2,515 | $ | 1,245 |
1-4 Family HELOC | Consumer | Other | Total | ||||||||||||
Beginning balance | $ | 595 | $ | 183 | $ | 42 | $ | 9,731 | |||||||
Charge-offs | (6 | ) | (24 | ) | (22 | ) | (508 | ) | |||||||
Recoveries | 5 | 18 | 3 | 509 | |||||||||||
Provision | 42 | 15 | 12 | 437 | |||||||||||
Ending balance | $ | 636 | $ | 192 | $ | 35 | $ | 10,169 |
Commercial Industrial and Agricultural | Multi-family and Commercial Real Estate | Construction Land Development and Farmland | 1-4 Family Residential Real Estate | ||||||||||||
Allowance for loan losses | |||||||||||||||
Individually evaluated for impairment | $ | 72 | $ | — | $ | 17 | $ | — | |||||||
Acquired with credit impairment | — | — | — | — | |||||||||||
Collectively evaluated for impairment | 1,809 | 4,713 | 2,690 | 1,455 | |||||||||||
Total | $ | 1,881 | $ | 4,713 | $ | 2,707 | $ | 1,455 | |||||||
Loans | |||||||||||||||
Individually evaluated for impairment | $ | 903 | $ | 3,017 | $ | 1,069 | $ | 1,218 | |||||||
Acquired with credit impairment | — | 222 | 829 | 253 | |||||||||||
Collectively evaluated for impairment | 232,409 | 478,734 | 235,523 | 231,758 | |||||||||||
Total | $ | 233,312 | $ | 481,973 | $ | 237,421 | $ | 233,229 |
1-4 Family HELOC | Consumer | Other | Total | ||||||||||||
Allowance for loan losses | |||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | 89 | |||||||
Acquired with credit impairment | — | — | — | — | |||||||||||
Collectively evaluated for impairment | 686 | 188 | 36 | 11,577 | |||||||||||
Total | $ | 686 | $ | 188 | $ | 36 | $ | 11,666 | |||||||
Loans | |||||||||||||||
Individually evaluated for impairment | $ | 296 | $ | — | $ | — | $ | 6,503 | |||||||
Acquired with credit impairment | — | — | — | 1,304 | |||||||||||
Collectively evaluated for impairment | 94,140 | 18,881 | 13,338 | 1,304,783 | |||||||||||
Total | $ | 94,436 | $ | 18,881 | $ | 13,338 | $ | 1,312,590 |
Commercial Industrial and Agricultural | Multi-family and Commercial Real Estate | Construction Land Development and Farmland | 1-4 Family Residential Real Estate | ||||||||||||
Allowance for loan losses | |||||||||||||||
Individually evaluated for impairment | $ | 38 | $ | — | $ | 17 | $ | — | |||||||
Acquired with credit impairment | — | — | — | — | |||||||||||
Collectively evaluated for impairment | 1,713 | 4,429 | 2,483 | 1,333 | |||||||||||
Total | $ | 1,751 | $ | 4,429 | $ | 2,500 | $ | 1,333 | |||||||
Loans | |||||||||||||||
Individually evaluated for impairment | $ | 978 | $ | 1,160 | $ | 1,780 | $ | 1,246 | |||||||
Acquired with credit impairment | 40 | 232 | 1,751 | 262 | |||||||||||
Collectively evaluated for impairment | 212,832 | 446,448 | 217,270 | 224,355 | |||||||||||
Total | $ | 213,850 | $ | 447,840 | $ | 220,801 | $ | 225,863 |
1-4 Family HELOC | Consumer | Other | Total | ||||||||||||
Allowance for loan losses | |||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | 55 | |||||||
Acquired with credit impairment | — | — | — | — | |||||||||||
Collectively evaluated for impairment | 656 | 184 | 39 | 10,837 | |||||||||||
Total | $ | 656 | $ | 184 | $ | 39 | $ | 10,892 | |||||||
Loans | |||||||||||||||
Individually evaluated for impairment | $ | — | $ | 12 | $ | — | $ | 5,176 | |||||||
Acquired with credit impairment | — | 11 | — | 2,296 | |||||||||||
Collectively evaluated for impairment | 88,112 | 20,472 | 14,106 | 1,223,595 | |||||||||||
Total | $ | 88,112 | $ | 20,495 | $ | 14,106 | $ | 1,231,067 |
June 30, 2019 | December 31, 2018 | ||||||
Commercial, Industrial and Agricultural | $ | 314 | $ | 279 | |||
Multi-family and Commercial Real Estate | 811 | — | |||||
Construction, Land Development and Farmland | 387 | 1,294 | |||||
1-4 Family Residential Real Estate | 1,187 | 2,556 | |||||
1-4 Family HELOC | 296 | — | |||||
Consumer | 50 | 65 | |||||
Total | $ | 3,045 | $ | 4,194 |
Unpaid Principal Balance | Recorded Investment with no Allowance Recorded | Recorded Investment with Allowance Recorded | Total Recorded Investment | Related Allowance | |||||||||||||||
Commercial, Industrial and Agricultural | $ | 904 | $ | 589 | $ | 314 | $ | 903 | $ | 72 | |||||||||
Multi-family and Commercial Real Estate | 3,513 | 3,239 | — | 3,239 | — | ||||||||||||||
Construction, Land Development and Farmland | 2,214 | 1,726 | 172 | 1,898 | 17 | ||||||||||||||
1-4 Family Residential Real Estate | 1,685 | 1,471 | — | 1,471 | — | ||||||||||||||
1-4 Family HELOC | 298 | 296 | — | 296 | — | ||||||||||||||
Total | $ | 8,614 | $ | 7,321 | $ | 486 | $ | 7,807 | $ | 89 |
Unpaid Principal Balance | Recorded Investment with no Allowance Recorded | Recorded Investment with Allowance Recorded | Total Recorded Investment | Related Allowance | |||||||||||||||
Commercial, Industrial and Agricultural | $ | 1,247 | $ | 765 | $ | 253 | $ | 1,018 | $ | 38 | |||||||||
Multi-family and Commercial Real Estate | 1,670 | 1,392 | — | 1,392 | — | ||||||||||||||
Construction, Land Development and Farmland | 3,920 | 3,359 | 172 | 3,531 | 17 | ||||||||||||||
1-4 Family Residential Real Estate | 2,243 | 1,508 | — | 1,508 | — | ||||||||||||||
Consumer | 29 | 23 | — | 23 | — | ||||||||||||||
Total | $ | 9,109 | $ | 7,047 | $ | 425 | $ | 7,472 | $ | 55 |
2019 | 2018 | ||||||
Commercial, Industrial and Agricultural | $ | 791 | $ | 3,040 | |||
Multi-family and Commercial Real Estate | 2,548 | 3,010 | |||||
Construction, Land Development and Farmland | 2,747 | 5,083 | |||||
1-4 Family Residential Real Estate | 1,639 | 2,774 | |||||
1-4 Family HELOC | 99 | 90 | |||||
Consumer | 11 | 88 | |||||
Total | $ | 7,835 | $ | 14,085 |
Pass | Special Mention | Substandard | Total | ||||||||||||
Commercial, Industrial and Agricultural | $ | 231,448 | $ | 266 | $ | 1,598 | $ | 233,312 | |||||||
1-4 Family Residential Real Estate | 231,538 | — | 1,691 | 233,229 | |||||||||||
1-4 Family HELOC | 93,974 | — | 462 | 94,436 | |||||||||||
Multi-family and Commercial Real Estate | 476,858 | — | 5,115 | 481,973 | |||||||||||
Construction, Land Development and Farmland | 236,508 | — | 913 | 237,421 | |||||||||||
Consumer | 18,624 | — | 257 | 18,881 | |||||||||||
Other | 13,338 | — | — | 13,338 | |||||||||||
Total | $ | 1,302,288 | $ | 266 | $ | 10,036 | $ | 1,312,590 |
Pass | Special Mention | Substandard | Total | ||||||||||||
Commercial, Industrial and Agricultural | $ | 212,761 | $ | — | $ | 1,089 | $ | 213,850 | |||||||
1-4 Family Residential Real Estate | 221,546 | 1,125 | 3,192 | 225,863 | |||||||||||
1-4 Family HELOC | 88,112 | — | — | 88,112 | |||||||||||
Multi-family and Commercial Real Estate | 442,127 | 3,135 | 2,578 | 447,840 | |||||||||||
Construction, Land Development and Farmland | 218,053 | 579 | 2,169 | 220,801 | |||||||||||
Consumer | 20,236 | — | 259 | 20,495 | |||||||||||
Other | 14,106 | — | — | 14,106 | |||||||||||
Total | $ | 1,216,941 | $ | 4,839 | $ | 9,287 | $ | 1,231,067 |
30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | Total Past Due | Current | Total Loans | ||||||||||||||||||
Commercial, Industrial and Agricultural | $ | 170 | $ | — | $ | 301 | $ | 471 | $ | 232,841 | $ | 233,312 | |||||||||||
1-4 Family Residential Real Estate | 680 | 516 | 67 | 1,263 | 231,966 | 233,229 | |||||||||||||||||
1-4 Family HELOC | 120 | — | — | 120 | 94,316 | 94,436 | |||||||||||||||||
Multi-family and Commercial Real Estate | 1,064 | — | — | 1,064 | 480,909 | 481,973 | |||||||||||||||||
Construction, Land Development and Farmland | 1 | — | 171 | 172 | 237,249 | 237,421 | |||||||||||||||||
Consumer | 12 | 10 | 7 | 29 | 18,852 | 18,881 | |||||||||||||||||
Other | — | — | — | — | 13,338 | 13,338 | |||||||||||||||||
Total | $ | 2,047 | $ | 526 | $ | 546 | $ | 3,119 | $ | 1,309,471 | $ | 1,312,590 |
30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | Total Past Due | Current | Total Loans | ||||||||||||||||||
Commercial, Industrial and Agricultural | $ | 22 | $ | 153 | $ | 279 | $ | 454 | $ | 213,396 | $ | 213,850 | |||||||||||
1-4 Family Residential Real Estate | 1,104 | 335 | 1,203 | 2,642 | 223,221 | 225,863 | |||||||||||||||||
1-4 Family HELOC | 50 | — | — | 50 | 88,062 | 88,112 | |||||||||||||||||
Multi-family and Commercial Real Estate | — | 104 | — | 104 | 447,736 | 447,840 | |||||||||||||||||
Construction, Land Development and Farmland | 214 | — | 171 | 385 | 220,416 | 220,801 | |||||||||||||||||
Consumer | 11 | 30 | 46 | 87 | 20,408 | 20,495 | |||||||||||||||||
Other | — | — | — | — | 14,106 | 14,106 | |||||||||||||||||
Total | $ | 1,401 | $ | 622 | $ | 1,699 | $ | 3,722 | $ | 1,227,345 | $ | 1,231,067 |
Number of Contracts | Pre-Modification Outstanding Recorded Investments | Post-Modification Outstanding Recorded Investments | ||||||||
June 30, 2018 | ||||||||||
1-4 Family Residential | 1 | $ | 1,254 | $ | 1,254 | |||||
Total | 1 | $ | 1,254 | $ | 1,254 |
June 30, 2019 | December 31, 2018 | ||||||
Commercial, Industrial and Agricultural | $ | — | $ | 63 | |||
Multi-family and Commercial Real Estate | 224 | 233 | |||||
Construction, Land Development and Farmland | 1,037 | 1,958 | |||||
1-4 Family Residential Real Estate | 315 | 324 | |||||
Consumer | — | 18 | |||||
Total outstanding balance | 1,576 | 2,596 | |||||
Less remaining purchase discount | 272 | 300 | |||||
Allowance for loan losses | — | — | |||||
Carrying amount, net of allowance | $ | 1,304 | $ | 2,296 |
2019 | 2018 | ||||||
Balance at January 1, | $ | 110 | $ | — | |||
New loans purchased | — | 260 | |||||
Loan charge offs | — | — | |||||
Accretion income | — | (38 | ) | ||||
Balance at March 31, | 110 | 222 | |||||
New loans purchased | — | — | |||||
Loan payoffs | — | (67 | ) | ||||
Loan charge offs | (7 | ) | — | ||||
Accretion income | — | (95 | ) | ||||
Balance at June 30, | $ | 103 | $ | 60 |
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
June 30, 2019 | |||||||||||||||
Assets | |||||||||||||||
U. S. Treasury and other U. S. government agencies | $ | 312 | $ | — | $ | 312 | $ | — | |||||||
State and municipal | 220,614 | — | 220,614 | — | |||||||||||
Corporate bonds | 3,019 | — | 3,019 | — | |||||||||||
Mortgage backed securities | 37,508 | — | 37,508 | — | |||||||||||
Asset backed securities | 28,920 | — | 28,920 | — | |||||||||||
Interest rate swaps | 1 | — | 1 | — | |||||||||||
Liabilities | |||||||||||||||
Interest rate swaps | $ | 3,576 | $ | — | $ | 3,576 | $ | — | |||||||
December 31, 2018 | |||||||||||||||
Assets | |||||||||||||||
U. S. Treasury and other U. S. government agencies | $ | 554 | $ | — | $ | 554 | $ | — | |||||||
State and municipal | 229,298 | — | 229,298 | — | |||||||||||
Corporate bonds | 3,017 | — | 3,017 | — | |||||||||||
Mortgage backed securities | 31,958 | — | 31,958 | — | |||||||||||
Asset backed securities | 27,996 | — | 27,996 | — | |||||||||||
Time deposits | 3,500 | 3,500 | — | — | |||||||||||
Interest rate swaps | 467 | — | 467 | — | |||||||||||
Liabilities | |||||||||||||||
Interest rate swaps | $ | 1,183 | $ | — | $ | 1,183 | $ | — |
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
June 30, 2019 | |||||||||||||||
Assets | |||||||||||||||
Impaired loans | $ | 397 | $ | — | $ | — | $ | 397 | |||||||
Other real estate owned | 1,848 | — | — | 1,848 | |||||||||||
December 31, 2018 | |||||||||||||||
Assets | |||||||||||||||
Impaired loans | $ | 370 | $ | — | $ | — | $ | 370 | |||||||
Other real estate owned | 1,000 | — | — | 1,000 |
Valuation Techniques (1) | Significant Unobservable Inputs | Range (Weighted Average) | |||
Impaired loans | Appraisal | Estimated costs to sell | 10% | ||
Other real estate owned | Appraisal | Estimated costs to sell | 10% |
(1) | The fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent. Estimated cash flows change and appraised values of the assets or collateral underlying the loans will be sensitive to changes. |
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 due from banks | $ | 35,917 | $ | 35,917 | $ | 35,917 | $ | — | $ | — | |||||||||
Federal funds sold | 80 | 80 | — | 80 | — | ||||||||||||||
Loans, net | 1,301,019 | 1,288,697 | — | — | 1,288,697 | ||||||||||||||
Mortgage loans held for sale | 11,571 | 11,701 | — | 11,701 | — | ||||||||||||||
Accrued interest receivable | 7,246 | 7,246 | — | 7,246 | — | ||||||||||||||
Restricted equity securities | 11,488 | 11,488 | — | 11,488 | — | ||||||||||||||
Financial liabilities | |||||||||||||||||||
Deposits | $ | 1,550,280 | $ | 1,551,492 | $ | — | $ | — | $ | 1,551,492 | |||||||||
Accrued interest payable | 967 | 967 | — | 967 | — | ||||||||||||||
Subordinate debentures | 11,644 | 12,261 | — | — | 12,261 | ||||||||||||||
Federal Home Loan Bank advances | 11,119 | 11,133 | — | — | 11,133 |
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 due from banks | $ | 34,807 | $ | 34,807 | $ | 34,807 | $ | — | $ | — | |||||||||
Federal funds sold | 371 | 371 | — | 371 | — | ||||||||||||||
Loans, net | 1,220,184 | 1,206,574 | — | — | 1,206,574 | ||||||||||||||
Mortgage loans held for sale | 15,823 | 15,871 | — | 15,871 | — | ||||||||||||||
Accrued interest receivable | 8,214 | 8,214 | — | 8,214 | — | ||||||||||||||
Restricted equity securities | 11,690 | 11,690 | — | 11,690 | — | ||||||||||||||
Financial liabilities | |||||||||||||||||||
Deposits | $ | 1,437,903 | $ | 1,434,652 | $ | — | $ | — | $ | 1,434,652 | |||||||||
Accrued interest payable | 1,063 | 1,063 | — | 1,063 | — | ||||||||||||||
Subordinate debentures | 11,603 | 11,522 | — | — | 11,522 | ||||||||||||||
Federal Home Loan Bank advances | 57,498 | 57,434 | — | — | 57,434 |
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||
Outstanding at January 1, 2019 | 159,260 | $ | 16.72 | 6.04 years | $ | 1,146 | ||||||
Granted | 1,000 | $ | 22.67 | |||||||||
Exercised | (26,706) | $ | 13.14 | |||||||||
Forfeited or expired | (2,753) | $ | 19.34 | |||||||||
Outstanding at June 30, 2019 | 130,801 | $ | 17.44 | 6.22 years | $ | 924 | ||||||
Exercisable at June 30, 2019 | 64,201 | $ | 13.75 | 4.66 years | $ | 636 |
Shares | Weighted Average Grant-Date Fair Value | |||
Non-vested options at January 1, 2019 | 71,200 | $5.28 | ||
Granted | 1,000 | $6.57 | ||
Vested | (2,847 | ) | $4.24 | |
Forfeited | (2,753 | ) | $4.89 | |
Non-vested options at June 30, 2019 | 66,600 | $5.36 |
Shares | Weighted Average Grant-Date Fair Value | |||||
Non-vested shares at January 1, 2019 | 110,660 | $ | 24.28 | |||
Granted | 8,000 | 21.94 | ||||
Vested | — | — | ||||
Forfeited | (7,750 | ) | 23.25 | |||
Non-vested shares at June 30, 2019 | 110,910 | $ | 24.19 |
Actual Regulatory Capital | Minimum Required Capital Including Capital Conservation Buffer | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
June 30, 2019 | ||||||||||||||||||||
Company | ||||||||||||||||||||
Tier I leverage | $ | 168,218 | 9.81 | % | $ | 68,590 | 4.000 | % | $ | 85,738 | 5.000 | % | ||||||||
Common equity tier 1 | 156,574 | 10.93 | % | 100,276 | 7.000 | % | 93,114 | 6.500 | % | |||||||||||
Tier I risk-based capital | 168,218 | 11.75 | % | 121,690 | 8.500 | % | 114,531 | 8.000 | % | |||||||||||
Total risk-based capital | 180,309 | 12.59 | % | 150,377 | 10.500 | % | 143,216 | 10.000 | % | |||||||||||
Bank | ||||||||||||||||||||
Tier I leverage | $ | 164,042 | 9.58 | % | $ | 68,492 | 4.000 | % | $ | 85,615 | 5.000 | % | ||||||||
Common equity tier 1 | 164,042 | 11.48 | % | 100,020 | 7.000 | % | 92,875 | 6.500 | % | |||||||||||
Tier I risk-based capital | 164,042 | 11.48 | % | 121,452 | 8.500 | % | 114,308 | 8.000 | % | |||||||||||
Total risk-based capital | 176,133 | 12.33 | % | 150,029 | 10.500 | % | 142,885 | 10.000 | % | |||||||||||
December 31, 2018 | ||||||||||||||||||||
Company | ||||||||||||||||||||
Tier I leverage | $ | 168,876 | 10.38 | % | $ | 65,077 | 4.000 | % | $ | 81,347 | 5.000 | % | ||||||||
Common equity tier 1 | 157,273 | 11.59 | % | 86,507 | 6.375 | % | 88,203 | 6.500 | % | |||||||||||
Tier I risk-based capital | 168,876 | 12.44 | % | 106,905 | 7.875 | % | 108,602 | 8.000 | % | |||||||||||
Total risk-based capital | 180,193 | 13.28 | % | 133,991 | 9.875 | % | 135,688 | 10.000 | % | |||||||||||
Bank | ||||||||||||||||||||
Tier I leverage | $ | 165,308 | 10.17 | % | $ | 65,018 | 4.000 | % | $ | 81,272 | 5.000 | % | ||||||||
Common equity tier 1 | 165,308 | 12.19 | % | 86,451 | 6.375 | % | 88,146 | 6.500 | % | |||||||||||
Tier I risk-based capital | 165,308 | 12.19 | % | 106,792 | 7.875 | % | 108,488 | 8.000 | % | |||||||||||
Total risk-based capital | 176,625 | 13.02 | % | 133,961 | 9.875 | % | 135,657 | 10.000 | % |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Basic EPS Computation | |||||||||||||||
Net income attributable to common shareholders | $ | 4,239 | $ | 2,139 | $ | 8,063 | $ | 5,880 | |||||||
Weighted average common shares outstanding | 11,196,898 | 11,396,829 | 11,300,095 | 11,389,634 | |||||||||||
Basic earnings per common share | $ | 0.38 | $ | 0.19 | $ | 0.71 | $ | 0.52 | |||||||
Diluted EPS Computation | |||||||||||||||
Net income attributable to common shareholders | $ | 4,239 | $ | 2,139 | $ | 8,063 | $ | 5,880 | |||||||
Weighted average common shares outstanding | 11,196,898 | 11,396,829 | 11,300,095 | 11,389,634 | |||||||||||
Dilutive effect of stock options, restricted shares and employee stock purchase plan | 89,729 | 98,404 | 78,300 | 96,838 | |||||||||||
Adjusted weighted average common shares outstanding | 11,286,627 | 11,495,233 | 11,378,395 | 11,486,472 | |||||||||||
Diluted earnings per common share | $ | 0.38 | $ | 0.19 | $ | 0.71 | $ | 0.51 |
Three Months Ended June 30, 2019 | |||||||||||||||
Retail Banking | Residential Mortgage Banking | Elimination Entries | Consolidated | ||||||||||||
Net interest income | $ | 13,703 | $ | 110 | $ | — | $ | 13,813 | |||||||
Provision for loan losses | 200 | — | — | 200 | |||||||||||
Noninterest income | 1,473 | 1,235 | (10 | ) | 2,698 | ||||||||||
Noninterest expense (excluding merger expense) | 10,129 | 2,996 | — | 13,125 | |||||||||||
Merger expense | 1 | — | — | 1 | |||||||||||
Income tax expense (benefit) | 607 | (106 | ) | — | 501 | ||||||||||
Net income (loss) | 4,239 | (1,545 | ) | (10 | ) | 2,684 | |||||||||
Noncontrolling interest in net loss of subsidiary | — | 1,545 | 10 | 1,555 | |||||||||||
Net income attributable to common shareholders | $ | 4,239 | $ | — | $ | — | $ | 4,239 |
Three Months Ended June 30, 2018 | |||||||||||||||
Retail Banking | Residential Mortgage Banking | Elimination Entries | Consolidated | ||||||||||||
Net interest income | $ | 13,190 | $ | 214 | $ | — | $ | 13,404 | |||||||
Provision for loan losses | 300 | — | — | 300 | |||||||||||
Noninterest income | 1,299 | 993 | (38 | ) | 2,254 | ||||||||||
Noninterest expense (excluding merger expense) | 9,389 | 2,169 | — | 11,558 | |||||||||||
Merger expense | 2,483 | — | — | 2,483 | |||||||||||
Income tax expense (benefit) | 178 | (63 | ) | — | 115 | ||||||||||
Net income (loss) | 2,139 | (899 | ) | (38 | ) | 1,202 | |||||||||
Noncontrolling interest in net loss of subsidiary | — | 899 | 38 | 937 | |||||||||||
Net income attributable to common shareholders | $ | 2,139 | $ | — | $ | — | $ | 2,139 |
Six Months Ended June 30, 2019 | |||||||||||||||
Retail Banking | Residential Mortgage Banking | Elimination Entries | Consolidated | ||||||||||||
Net interest income | $ | 27,076 | $ | 198 | $ | — | $ | 27,274 | |||||||
Provision for loan losses | 200 | — | — | 200 | |||||||||||
Noninterest income | 2,851 | 1,810 | (25 | ) | 4,636 | ||||||||||
Noninterest expense (excluding merger expense) | 20,574 | 5,295 | — | 25,869 | |||||||||||
Merger expense | 3 | — | — | 3 | |||||||||||
Income tax expense (benefit) | 1,087 | (214 | ) | — | 873 | ||||||||||
Net income (loss) | 8,063 | (3,073 | ) | (25 | ) | 4,965 | |||||||||
Noncontrolling interest in net loss of subsidiary | — | 3,073 | 25 | 3,098 | |||||||||||
Net income attributable to common shareholders | $ | 8,063 | $ | — | $ | — | $ | 8,063 |
Six Months Ended June 30, 2018 | |||||||||||||||
Retail Banking | Residential Mortgage Banking | Elimination Entries | Consolidated | ||||||||||||
Net interest income | $ | 26,234 | $ | 552 | $ | — | $ | 26,786 | |||||||
Provision for loan losses | 437 | — | — | 437 | |||||||||||
Noninterest income | 2,587 | 2,741 | (83 | ) | 5,245 | ||||||||||
Noninterest expense (excluding merger expense) | 18,840 | 4,703 | — | 23,543 | |||||||||||
Merger expense | 2,660 | — | — | 2,660 | |||||||||||
Income tax expense (benefit) | 1,004 | (92 | ) | — | 912 | ||||||||||
Net income | 5,880 | (1,318 | ) | (83 | ) | 4,479 | |||||||||
Noncontrolling interest in net income of subsidiary | — | 1,318 | 83 | 1,401 | |||||||||||
Net income attributable to common shareholders | $ | 5,880 | $ | — | $ | — | $ | 5,880 |
Notional amounts | $ | 60,000 | |
Weighted average pay rates | 3.338 | % | |
Weighted average receive rates | 3.060 | % | |
Weighted average maturity | 3.97 years | ||
Unrealized losses | $ | 2,955 |
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | Amount of Gain (Loss) Reclassified from OCI to Interest Income | Amount of Gain (Loss) Recognized in Other Non-Interest Income (Ineffective Portion) | |||||||||
June 30, 2019 | |||||||||||
Interest rate contracts | $ | (1,802 | ) | $ | — | $ | — |
June 30, 2019 | December 31, 2018 | ||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||
Included in other liabilities: | |||||||||||||||
Interest rate swaps related to: | |||||||||||||||
Subordinate debentures | $ | 10,000 | $ | 475 | $ | 10,000 | $ | 174 | |||||||
Short-term interest bearing liabilities | 50,000 | 2,480 | 50,000 | 979 | |||||||||||
Total included in other liabilities | $ | 60,000 | $ | 2,955 | $ | 60,000 | $ | 1,153 |
Interest rate contracts | Location | June 30, 2019 | June 30, 2018 | ||||||
Change in fair value on interest | |||||||||
rate swaps hedging investments | Interest income | $ | (1,057 | ) | $ | 255 |
June 30, 2019 | December 31, 2018 | ||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||
Included in other assets: | |||||||||||||||
Interest rate swaps related to investments | $ | 1,000 | $ | 1 | $ | 16,902 | $ | 467 | |||||||
Total included in other assets | $ | 1,000 | $ | 1 | $ | 16,902 | $ | 467 | |||||||
Included in other liabilities: | |||||||||||||||
Interest rate swaps related to investments | 19,605 | 621 | 4,203 | 30 | |||||||||||
Total included in other liabilities | $ | 19,605 | $ | 621 | $ | 4,203 | $ | 30 |
Calculation of Purchase Price | ||||
Shares of Community First common stock outstanding as of December 31, 2017 | 5,025,884 | |||
Exchange ratio for Reliant Bancorp, Inc. common stock | 0.481 | |||
Share conversion | 2,417,450 | |||
Reliant Bancorp, Inc. common stock shares issued | 2,416,444 | |||
Reliant Bancorp, Inc. share price at December 29, 2017 | $ | 25.64 | ||
Value of Reliant Bancorp, Inc. common stock shares issued | 61,958 | |||
Value of fractional shares | 25 | |||
Estimated fair value of Community First, Inc. | $ | 61,983 | ||
Allocation of Purchase Price | ||||
Total consideration above | $ | 61,983 | ||
Fair value of assets acquired and liabilities assumed | ||||
Cash and cash equivalents | (33,128 | ) | ||
Time deposits in other financial institutions | (23,309 | ) | ||
Investment securities available for sale | (69,078 | ) | ||
Loans, net of unearned income | (313,040 | ) | ||
Mortgage loans held for sale, net | (910 | ) | ||
Accrued interest receivable | (1,165 | ) | ||
Premises and equipment | (9,585 | ) | ||
Restricted equity securities | (1,726 | ) | ||
Cash surrender value of life insurance contracts | (10,664 | ) | ||
Other real estate owned | (1,650 | ) | ||
Deferred tax asset, net | (4,885 | ) | ||
Core deposit intangible | (7,888 | ) | ||
Other assets | (1,795 | ) | ||
Deposits—noninterest-bearing | 80,395 | |||
Deposits—interest-bearing | 352,100 | |||
Other borrowings | 11,522 | |||
Payables and other liabilities | 5,061 | |||
Net liabilities assumed (net assets acquired) | (29,745 | ) | ||
Goodwill | $ | 32,238 |
• | Net income attributable to common shareholders totaled $8.1 million, or $0.71 per diluted common share, for the six months ended June 30, 2019 compared to $5.9 million, or $0.51 per diluted common share, during same period in 2018. |
• | Loans increased $81.5 million for the six months ended June 30, 2019. |
• | Deposits increased $112.4 million for the six months ended June 30, 2019. |
• | Asset quality remained strong with nonperforming assets to total assets of just 0.38 percent. |
• | grew consolidated total assets from $1,125.0 million to $1,636.0 million after giving effect to purchase accounting; |
• | increased total loans from $762.5 million to $1,075.5 million; |
• | increased total deposits from $883.5 million to $1,316.9 million; and |
• | expanded its employee base from 167 to 272 full time equivalent employees. |
Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Change | |||||||||||||||||||||||||
Average Balances | Rates / Yields (%) | Interest Income / Expense | Average Balances | Rates / Yields (%) | Interest Income / Expense | Due to Volume | Due to Rate | Total | |||||||||||||||||||
Interest earning assets | |||||||||||||||||||||||||||
Loans | $ | 1,276,197 | 5.18 | $ | 16,178 | $ | 1,119,884 | 4.81 | $ | 13,393 | $ | 1,795 | $ | 989 | $ | 2,785 | |||||||||||
Loan fees | — | 0.25 | 782 | — | 0.24 | 673 | 109 | — | 109 | ||||||||||||||||||
Loans with fees | 1,276,197 | 5.43 | 16,960 | 1,119,884 | 5.05 | 14,066 | 1,905 | 989 | 2,894 | ||||||||||||||||||
Mortgage loans held for sale | 14,502 | 5.48 | 198 | 24,611 | 5.31 | 326 | (196 | ) | 68 | (128 | ) | ||||||||||||||||
Deposits with banks | 30,342 | 1.53 | 116 | 36,550 | 1.21 | 110 | (89 | ) | 95 | 6 | |||||||||||||||||
Investment securities - taxable | 77,405 | 3.04 | 587 | 67,647 | 2.69 | 453 | 70 | 64 | 134 | ||||||||||||||||||
Investment securities - tax-exempt | 222,149 | 3.77 | 1,650 | 231,874 | 3.75 | 1,708 | (134 | ) | 76 | (58 | ) | ||||||||||||||||
Federal funds sold and other | 13,308 | 5.46 | 181 | 11,441 | 5.85 | 167 | 73 | (59 | ) | 14 | |||||||||||||||||
Total earning assets | 1,633,903 | 5.02 | 19,692 | 1,492,007 | 4.66 | 16,830 | 1,629 | 1,233 | 2,862 | ||||||||||||||||||
Nonearning assets | 139,123 | 137,707 | |||||||||||||||||||||||||
Total assets | $ | 1,773,026 | $ | 1,629,714 | |||||||||||||||||||||||
Interest bearing liabilities | |||||||||||||||||||||||||||
Interest bearing demand | 141,997 | 0.24 | 86 | 143,811 | 0.23 | 84 | (6 | ) | 8 | 2 | |||||||||||||||||
Savings and money market | 374,406 | 1.13 | 1,051 | 357,475 | 0.64 | 574 | 28 | 449 | 477 | ||||||||||||||||||
Time deposits - retail | 612,148 | 2.14 | 3,263 | 517,209 | 1.43 | 1,848 | 382 | 1,033 | 1,415 | ||||||||||||||||||
Time deposits - wholesale | 169,956 | 2.61 | 1,106 | 92,197 | 1.53 | 351 | 411 | 344 | 755 | ||||||||||||||||||
Total interest bearing deposits | 1,298,507 | 1.70 | 5,506 | 1,110,692 | 1.03 | 2,857 | 815 | 1,834 | 2,649 | ||||||||||||||||||
Federal Home Loan Bank advances | 23,668 | 2.97 | 175 | 79,520 | 2.00 | 397 | (1,044 | ) | 822 | (222 | ) | ||||||||||||||||
Subordinated debt | 11,634 | 6.83 | 198 | 11,556 | 5.97 | 172 | 1 | 25 | 26 | ||||||||||||||||||
Total borrowed funds | 35,302 | 4.24 | 373 | 91,076 | 2.51 | 569 | (1,043 | ) | 847 | (196 | ) | ||||||||||||||||
Total interest-bearing liabilities | 1,333,809 | 1.77 | 5,879 | 1,201,768 | 1.14 | 3,426 | (228 | ) | 2,681 | 2,453 | |||||||||||||||||
Net interest rate spread (%) / Net interest income ($) | 3.25 | $ | 13,813 | 3.52 | $ | 13,404 | $ | 1,857 | $ | (1,448 | ) | $ | 409 | ||||||||||||||
Non-interest bearing deposits | 218,512 | (0.25 | ) | 219,860 | (0.17 | ) | |||||||||||||||||||||
Other non-interest bearing liabilities | 8,057 | 5,781 | |||||||||||||||||||||||||
Stockholder's equity | 212,648 | 202,305 | |||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,773,026 | $ | 1,629,714 | |||||||||||||||||||||||
Cost of funds | 1.52 | 0.97 | |||||||||||||||||||||||||
Net interest margin | 3.57 | 3.74 |
Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | Change | |||||||||||||||||||||||||
Average Balances | Rates / Yields (%) | Interest Income / Expense | Average Balances | Rates / Yields (%) | Interest Income / Expense | Due to Volume | Due to Rate | Total | |||||||||||||||||||
Interest earning assets | |||||||||||||||||||||||||||
Loans | $ | 1,257,373 | 5.17 | $ | 31,641 | $ | 1,104,025 | 4.81 | $ | 26,268 | $ | 3,492 | $ | 1,881 | $ | 5,373 | |||||||||||
Loan fees | — | 0.24 | 1,488 | — | 0.25 | 1,356 | 132 | — | 132 | ||||||||||||||||||
Loans with fees | 1,257,373 | 5.41 | 33,129 | 1,104,025 | 5.06 | 27,624 | 3,624 | 1,881 | 5,505 | ||||||||||||||||||
Mortgage loans held for sale | 12,635 | 5.60 | 351 | 31,923 | 5.10 | 807 | (667 | ) | 211 | (456 | ) | ||||||||||||||||
Deposits with banks | 29,000 | 1.63 | 234 | 43,378 | 1.28 | 276 | (189 | ) | 147 | (42 | ) | ||||||||||||||||
Investment securities - taxable | 74,948 | 2.93 | 1,090 | 70,162 | 2.76 | 960 | 68 | 62 | 130 | ||||||||||||||||||
Investment securities - tax-exempt | 225,305 | 3.82 | 3,368 | 225,060 | 3.66 | 3,212 | 4 | 152 | 156 | ||||||||||||||||||
Federal funds sold and other | 12,981 | 5.64 | 363 | 10,688 | 5.91 | 313 | 89 | (39 | ) | 50 | |||||||||||||||||
Total earning assets | 1,612,242 | 5.01 | 38,535 | 1,485,236 | 4.63 | 33,192 | 2,929 | 2,414 | 5,343 | ||||||||||||||||||
Nonearning assets | 139,964 | 136,163 | |||||||||||||||||||||||||
Total assets | $ | 1,752,206 | $ | 1,621,399 | |||||||||||||||||||||||
Interest bearing liabilities | |||||||||||||||||||||||||||
Interest bearing demand | 145,304 | 0.27 | 197 | 149,065 | 0.22 | 161 | (11 | ) | 47 | 36 | |||||||||||||||||
Savings and money market | 387,296 | 1.14 | 2,181 | 351,058 | 0.60 | 1,052 | 116 | 1,013 | 1,129 | ||||||||||||||||||
Time deposits - retail | 594,805 | 2.10 | 6,184 | 516,816 | 1.37 | 3,512 | 589 | 2,083 | 2,672 | ||||||||||||||||||
Time deposits - wholesale | 138,466 | 2.56 | 1,756 | 93,970 | 1.47 | 683 | 418 | 655 | 1,073 | ||||||||||||||||||
Total interest bearing deposits | 1,265,871 | 1.64 | 10,318 | 1,110,909 | 0.98 | 5,408 | 1,112 | 3,798 | 4,910 | ||||||||||||||||||
Federal Home Loan Bank advances and other | 40,101 | 2.78 | 552 | 74,846 | 1.80 | 669 | (729 | ) | 612 | (117 | ) | ||||||||||||||||
Subordinated debt | 11,634 | 6.78 | 391 | 11,546 | 5.75 | 329 | 2 | 60 | 62 | ||||||||||||||||||
Total borrowed funds | 51,735 | 3.68 | 943 | 86,392 | 2.33 | 998 | (727 | ) | 672 | (55 | ) | ||||||||||||||||
Total interest-bearing liabilities | 1,317,606 | 1.72 | 11,261 | 1,197,301 | 1.08 | 6,406 | 385 | 4,470 | 4,855 | ||||||||||||||||||
Net interest rate spread (%) / Net interest income ($) | 3.29 | $ | 27,274 | 3.55 | $ | 26,786 | $ | 2,544 | $ | (2,056 | ) | $ | 488 | ||||||||||||||
Non-interest bearing deposits | 214,838 | (0.24 | ) | 216,237 | (0.11 | ) | |||||||||||||||||||||
Other non-interest bearing liabilities | 8,698 | 5,992 | |||||||||||||||||||||||||
Stockholder's equity | 211,064 | 201,869 | |||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,752,206 | $ | 1,621,399 | |||||||||||||||||||||||
Cost of funds | 1.48 | 0.97 | |||||||||||||||||||||||||
Net interest margin | 3.60 | 3.76 |
Three Months Ended June 30, | Dollar Increase | Percent Increase | |||||||||
2019 | 2018 | (Decrease) | (Decrease) | ||||||||
Non-Interest Income | |||||||||||
Service charges and fees | $ | 936 | $ | 900 | $ | 36 | 4.0 | % | |||
Securities gains, net | 175 | 25 | 150 | 600.0 | % | ||||||
Gains on mortgage loans sold, net | 1,225 | 957 | 268 | 28.0 | % | ||||||
Gain on sale of other real estate | — | 20 | (20 | ) | (100.0 | )% | |||||
Other noninterest income: | |||||||||||
Bank-owned life insurance | 277 | 298 | (21 | ) | (7.0 | )% | |||||
Brokerage revenue | 9 | 9 | — | — | % | ||||||
Miscellaneous noninterest income | 76 | 45 | 31 | 68.9 | % | ||||||
Total other non-interest income | 362 | 352 | 10 | 2.8 | % | ||||||
Total non-interest income | $ | 2,698 | $ | 2,254 | $ | 444 | 19.7 | % |
Six Months Ended June 30, | Dollar Increase | Percent Increase | |||||||||
2019 | 2018 | (Decrease) | (Decrease) | ||||||||
Non-Interest Income | |||||||||||
Service charges and fees | $ | 1,820 | $ | 1,671 | $ | 149 | 8.9 | % | |||
Securities gains, net | 306 | 25 | 281 | 1,124.0 | % | ||||||
Gains on mortgage loans sold, net | 1,785 | 2,662 | (877 | ) | (32.9 | )% | |||||
Gain on sale of other real estate | — | 109 | (109 | ) | (100.0 | )% | |||||
Other noninterest income: | |||||||||||
Bank-owned life insurance | 555 | 600 | (45 | ) | (7.5 | )% | |||||
Brokerage revenue | 20 | 85 | (65 | ) | (76.5 | )% | |||||
Miscellaneous noninterest income | 150 | 93 | 57 | 61.3 | % | ||||||
Total other non-interest income | 725 | 778 | (53 | ) | (6.8 | )% | |||||
Total non-interest income | $ | 4,636 | $ | 5,245 | $ | (609 | ) | (11.6 | )% |
Three Months Ended June 30, | Dollar Increase | Percent Increase | |||||||||
2019 | 2018 | (Decrease) | (Decrease) | ||||||||
Non-Interest Expense | |||||||||||
Salaries and employee benefits | $ | 7,706 | $ | 6,613 | $ | 1,093 | 16.5 | % | |||
Occupancy | 1,358 | 1,210 | 148 | 12.2 | % | ||||||
Information technology | 1,575 | 1,249 | 326 | 26.1 | % | ||||||
Advertising and public relations | 275 | 141 | 134 | 95.0 | % | ||||||
Audit, legal and consulting | 690 | 816 | (126 | ) | (15.4 | )% | |||||
Federal deposit insurance | 249 | 224 | 25 | 11.2 | % | ||||||
Merger expenses | 1 | 2,483 | (2,482 | ) | (100.0 | )% | |||||
Other operating | 1,272 | 1,305 | (33 | ) | (2.5 | )% | |||||
Total non-interest expense | $ | 13,126 | $ | 14,041 | $ | (915 | ) | (6.5 | )% |
Six Months Ended June 30, | Dollar Increase | Percent Increase | |||||||||
2019 | 2018 | (Decrease) | (Decrease) | ||||||||
Non-Interest Expense | |||||||||||
Salaries and employee benefits | $ | 14,971 | $ | 13,567 | $ | 1,404 | 10.3 | % | |||
Occupancy | 2,710 | 2,439 | 271 | 11.1 | % | ||||||
Information technology | 2,985 | 2,598 | 387 | 14.9 | % | ||||||
Advertising and public relations | 529 | 230 | 299 | 130.0 | % | ||||||
Audit, legal and consulting | 1,486 | 1,439 | 47 | 3.3 | % | ||||||
Federal deposit insurance | 444 | 420 | 24 | 5.7 | % | ||||||
Merger expenses | 3 | 2,660 | (2,657 | ) | (99.9 | )% | |||||
Other operating | 2,744 | 2,850 | (106 | ) | (3.7 | )% | |||||
Total non-interest expense | $ | 25,872 | $ | 26,203 | $ | (331 | ) | (1.3 | )% |
June 30, | December 31, | ||||||||||||
2019 | 2018 | ||||||||||||
Amount | Percent | Amount | Percent | ||||||||||
Commercial, Industrial and Agricultural | $ | 233,312 | 17.8 | % | $ | 213,850 | 17.4 | % | |||||
Real estate: | |||||||||||||
1-4 Family Residential | 233,229 | 17.8 | % | 225,863 | 18.3 | % | |||||||
1-4 Family HELOC | 94,436 | 7.2 | % | 88,112 | 7.2 | % | |||||||
Multifamily and Commercial | 481,973 | 36.7 | % | 447,840 | 36.4 | % | |||||||
Construction, Land Development and Farmland | 237,421 | 18.1 | % | 220,801 | 17.9 | % | |||||||
Consumer | 18,881 | 1.4 | % | 20,495 | 1.7 | % | |||||||
Other | 13,338 | 1.0 | % | 14,106 | 1.1 | % | |||||||
1,312,590 | 100.0 | % | 1,231,067 | 100.0 | % | ||||||||
Less: | |||||||||||||
Deferred loan fees (costs) | (95 | ) | (9 | ) | |||||||||
Allowance for possible loan losses | 11,666 | 10,892 | |||||||||||
Loans, net | $ | 1,301,019 | $ | 1,220,184 |
June 30, 2019 | |||
Commercial, Industrial and Agricultural | $ | — | |
Real estate: | |||
1-4 Family Residential | 315 | ||
1-4 Family HELOC | — | ||
Multifamily and Commercial | 224 | ||
Construction, Land Development and Farmland | 1,037 | ||
Consumer | — | ||
Other | — | ||
Total gross PCI loans | 1,576 | ||
Less: | |||
Remaining purchase discount | 272 | ||
Allowance for possible loan losses | — | ||
Loans, net | $ | 1,304 |
One Year or Less | One to Five Years | Over Five Years | Total | ||||||||||||
Gross loans | $ | 443,231 | $ | 561,665 | $ | 307,694 | $ | 1,312,590 | |||||||
Fixed interest rate | $ | 772,010 | |||||||||||||
Variable interest rate | 540,580 | ||||||||||||||
Total | $ | 1,312,590 |
June 30, 2019 | June 30, 2018 | ||||||
Beginning Balance, January 1, 2019 and 2018 | $ | 10,892 | $ | 9,731 | |||
Loans charged off: | |||||||
Commercial, Industrial and Agricultural | (168 | ) | (308 | ) | |||
Real estate: | |||||||
1-4 Family Residential | (17 | ) | (8 | ) | |||
1-4 Family HELOC | — | (6 | ) | ||||
Multifamily and Commercial | — | — | |||||
Construction, Land Development and Farmland | — | (140 | ) | ||||
Consumer | (21 | ) | (24 | ) | |||
Other | (13 | ) | (22 | ) | |||
Total loans charged off | (219 | ) | (508 | ) | |||
Recoveries on loans previously charged off: | |||||||
Commercial, Industrial and Agricultural | 294 | 425 | |||||
Real estate: | |||||||
1-4 Family Residential | 216 | 11 | |||||
1-4 Family HELOC | 11 | 5 | |||||
Multifamily and Commercial | 59 | 3 | |||||
Construction, Land Development and Farmland | 201 | 44 | |||||
Consumer | 12 | 18 | |||||
Other | — | 3 | |||||
Total loan recoveries | 793 | 509 | |||||
Net recoveries (charge-offs) | 574 | 1 | |||||
Provision for loan losses | 200 | 437 | |||||
Total allowance at end of period | $ | 11,666 | $ | 10,169 | |||
Gross loans at end of period (1) | $ | 1,312,590 | $ | 1,142,451 | |||
Average gross loans (1) | $ | 1,257,373 | $ | 1,104,025 | |||
Allowance to total loans | 0.89 | % | 0.89 | % | |||
Net recoveries (charge-offs) to average loans (annualized) | 0.09 | % | — | % |
(1) | Loan balances exclude loans held for sale. |
June 30, 2019 | June 30, 2018 | ||||||||||||||||||
Amount | % of Allowance To Total | % of Loan Type to Total Loans | Amount | % of Allowance To Total | % of Loan Type to Total Loans | ||||||||||||||
Commercial, Industrial and Agricultural | $ | 1,881 | 16.1 | % | 17.8 | % | $ | 1,685 | 16.6 | % | 16.3 | % | |||||||
Real estate: | |||||||||||||||||||
1-4 Family Residential | 1,455 | 12.5 | % | 17.8 | % | 1,245 | 12.2 | % | 19.2 | % | |||||||||
1-4 Family HELOC | 686 | 5.9 | % | 7.2 | % | 636 | 6.3 | % | 7.5 | % | |||||||||
Multifamily and Commercial | 4,713 | 40.4 | % | 36.7 | % | 3,861 | 38.0 | % | 35.1 | % | |||||||||
Construction, Land Development and Farmland | 2,707 | 23.2 | % | 18.1 | % | 2,515 | 24.7 | % | 18.8 | % | |||||||||
Consumer | 188 | 1.6 | % | 1.4 | % | 192 | 1.9 | % | 1.9 | % | |||||||||
Other | 36 | 0.3 | % | 1.0 | % | 35 | 0.3 | % | 1.2 | % | |||||||||
$ | 11,666 | 100.0 | % | 100.0 | % | $ | 10,169 | 100.0 | % | 100.0 | % |
June 30, 2019 | December 31, 2018 | ||||||
Non-accrual loans | $ | 3,045 | $ | 4,194 | |||
Past due loans 90 days or more and still accruing interest | 22 | 6 | |||||
Restructured loans | 1,830 | 2,469 | |||||
Total non-performing loans | 4,897 | 6,669 | |||||
Foreclosed real estate ("OREO") | 1,848 | 1,000 | |||||
Total non-performing assets | $ | 6,745 | $ | 7,669 | |||
Total non-performing loans as a percentage of total loans | 0.37 | % | 0.54 | % | |||
Total non-performing assets as a percentage of total assets | 0.38 | % | 0.44 | % | |||
Allowance for loan losses as a percentage of non-performing loans | 238.23 | % | 163.32 | % |
June 30, 2019 | December 31, 2018 | ||||||||||||||||||
Amortized Cost | Fair Value | % of Total | Amortized Cost | Fair Value | % of Total | ||||||||||||||
U.S.Treasury and other U.S. government agencies | $ | 313 | 312 | 0.11 | % | $ | 568 | 554 | 0.19 | % | |||||||||
State and municipal | 212,157 | 220,614 | 75.98 | % | 232,589 | 229,298 | 77.38 | % | |||||||||||
Corporate bonds | 3,130 | 3,019 | 1.04 | % | 3,130 | 3,017 | 1.02 | % | |||||||||||
Mortgage backed securities | 37,515 | 37,508 | 12.92 | % | 32,172 | 31,958 | 10.78 | % | |||||||||||
Asset backed securities | 29,430 | 28,920 | 9.95 | % | 28,635 | 27,996 | 9.45 | % | |||||||||||
Time deposits | — | — | — | % | 3,500 | 3,500 | 1.18 | % | |||||||||||
Total | $ | 282,545 | 290,373 | 100.00 | % | $ | 300,594 | 296,323 | 100.00 | % |
Amortized Cost | Estimated Fair Value | ||||||
Due within one year | $ | 660 | $ | 663 | |||
Due in one to five years | 938 | 935 | |||||
Due in five to ten years | 7,240 | 7,400 | |||||
Due after ten years | 206,762 | 214,947 | |||||
Mortgage backed securities | 37,515 | 37,508 | |||||
Asset backed securities | 29,430 | 28,920 | |||||
Total | $ | 282,545 | $ | 290,373 |
June 30, 2019 | |||
Twelve months or less | $ | 332,390 | |
Over twelve months through three years | 18,506 | ||
Over three years | 4,092 | ||
Total | $ | 354,988 |
Instantaneous, Parallel Change in Prevailing Interest Rates Equal to | Estimated Change in Net Interest Income and Policy of Maximum Percentage Decline in Net Interest Income | |||||||
Next 12 | Next 24 | |||||||
Months | Months | |||||||
Estimate | Policy | Estimate | Policy | |||||
-200 bp | 0.3% | (15)% | (2.3)% | (15)% | ||||
-100 bp | 0.6% | (10)% | (0.6)% | (10)% | ||||
+100 bp | 0.1% | (10)% | 0.6% | (10)% | ||||
+200 bp | 0.6% | (15)% | 1.6% | (15)% | ||||
+300 bp | 1.0% | (20)% | 2.6% | (20)% | ||||
+400 bp | 1.0% | (25)% | 3.1% | (25)% |
Instantaneous, Parallel Change in Prevailing Interest Rates Equal to | Maximum Percentage Decline in Economic Value of Equity from the Economic Value of Equity at Currently Prevailing Interest Rates | |
+100 bp | 15% | |
+200 bp | 25% | |
+300 bp | 30% | |
+400 bp | 35% | |
Non-parallel shifts | 35% |
Scheduled Maturities | Amount | Weighted Average Rates | ||||
2019 | $ | 7,000 | 2.39% | |||
2020 | — | —% | ||||
2021 | 345 | 2.73% | ||||
2022 | 660 | 1.22% | ||||
2023 | 2,502 | 1.94% | ||||
Thereafter | 612 | 2.48% | ||||
$ | 11,119 | 2.23% |
Actual Regulatory Capital | Minimum Required Capital Including Capital Conservation Buffer | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
June 30, 2019 | ||||||||||||||||||||
Company | ||||||||||||||||||||
Tier I leverage | $ | 168,218 | 9.81 | % | $ | 68,590 | 4.000 | % | $ | 85,738 | 5.00 | % | ||||||||
Common equity Tier 1 | 156,574 | 10.93 | % | 100,276 | 7.000 | % | 93,114 | 6.50 | % | |||||||||||
Tier I risk-based capital | 168,218 | 11.75 | % | 121,690 | 8.500 | % | 114,531 | 8.00 | % | |||||||||||
Total risk-based capital | 180,309 | 12.59 | % | 150,377 | 10.500 | % | 143,216 | 10.00 | % | |||||||||||
Bank | ||||||||||||||||||||
Tier I leverage | $ | 164,042 | 9.58 | % | $ | 68,492 | 4.000 | % | $ | 85,615 | 5.00 | % | ||||||||
Common equity Tier 1 | 164,042 | 11.48 | % | 100,020 | 7.000 | % | 92,875 | 6.50 | % | |||||||||||
Tier I risk-based capital | 164,042 | 11.48 | % | 121,452 | 8.500 | % | 114,308 | 8.00 | % | |||||||||||
Total risk-based capital | 176,133 | 12.33 | % | 150,029 | 10.500 | % | 142,885 | 10.00 | % | |||||||||||
December 31, 2018 | ||||||||||||||||||||
Company | ||||||||||||||||||||
Tier I leverage | $ | 168,876 | 10.38 | % | $ | 65,077 | 4.000 | % | $ | 81,347 | 5.00 | % | ||||||||
Common equity Tier 1 | 157,273 | 11.59 | % | 86,507 | 6.375 | % | 88,203 | 6.50 | % | |||||||||||
Tier I risk-based capital | 168,876 | 12.44 | % | 106,905 | 7.875 | % | 108,602 | 8.00 | % | |||||||||||
Total risk-based capital | 180,193 | 13.28 | % | 133,991 | 9.875 | % | 135,688 | 10.00 | % | |||||||||||
Bank | ||||||||||||||||||||
Tier I leverage | $ | 165,308 | 10.17 | % | $ | 65,018 | 4.000 | % | $ | 81,272 | 5.00 | % | ||||||||
Common equity Tier 1 | 165,308 | 12.19 | % | 86,451 | 6.375 | % | 88,146 | 6.50 | % | |||||||||||
Tier I risk-based capital | 165,308 | 12.19 | % | 106,792 | 7.875 | % | 108,488 | 8.00 | % | |||||||||||
Total risk-based capital | 176,625 | 13.02 | % | 133,961 | 9.875 | % | 135,657 | 10.00 | % |
June 30, 2019 | |||
Unused lines of credit | $ | 284,103 | |
Standby letters of credit | 16,076 | ||
Total commitments | $ | 300,179 |
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs (2) |
April 1, 2019 to April 30, 2019 | 7,665 | $22.41 | 7,665 | $11,169 |
May 1, 2019 to May 31, 2019 | 324,871 | $22.73 | 324,871 | $3,785 |
June 1, 2019 to June 30, 2019 | 3,437 | $21.97 | 3,437 | $3,709 |
Total | 335,973 | $22.72 | 335,973 | $3,709 |
(1) | During the quarter ended June 30, 2019, no shares of common stock were purchased other than through a publicly announced plan or program of Reliant Bancorp. |
(2) | On December 4, 2018, Reliant Bancorp announced a stock repurchase plan pursuant to which we may purchase, in the aggregate, up to $12 million of our common stock. This stock repurchase plan will remain in effect through December 31, 2019, unless the entire authorized amount of shares is sooner repurchased. The stock repurchase plan does not obligate Reliant Bancorp to repurchase any dollar amount or number of shares, and the plan may be extended, modified, amended, suspended, or discontinued at any time. |
Exhibit No. | Description |
3.1 | |
3.2 | |
4.1 | |
10.1 | |
10.2* | |
10.3* | |
31.1* | |
31.2* | |
32.1** | |
101.INS* | XBRL Instance Document. |
101.SCH* | XBRL Schema Documents. |
101.CAL* | XBRL Calculation Linkbase Document. |
101.LAB* | XBRL Label Linkbase Document. |
101.PRE* | XBRL Presentation Linkbase Document. |
101.DEF* | XBRL Definition Linkbase Document. |
RELIANT BANCORP, INC. | ||||
August 6, 2019 | /s/ DeVan D. Ard, Jr. | |||
DeVan D. Ard, Jr. | ||||
President and Chief Executive Officer | ||||
(Principal Executive Officer) | ||||
August 6, 2019 | /s/ J. Daniel Dellinger | |||
J. Daniel Dellinger | ||||
Chief Financial Officer | ||||
(Principal Financial Officer) |
1. | I have reviewed this Form 10-Q of Reliant Bancorp, Inc.; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
August 6, 2019 | /s/ DeVan D. Ard, Jr. |
DeVan D. Ard, Jr. | |
Chief Executive Officer | |
(Principal Executive Officer) |
1. | I have reviewed this Form 10-Q of Reliant Bancorp, Inc.; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
August 6, 2019 | /s/ J. Daniel Dellinger |
J. Daniel Dellinger | |
Chief Financial Officer | |
(Principal Financial Officer) |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
August 6, 2019 | /s/ DeVan D. Ard, Jr. |
DeVan D. Ard, Jr. | |
Chief Executive Officer | |
(Principal Executive Officer) | |
/s/ J. Daniel Dellinger | |
J. Daniel Dellinger | |
Chief Financial Officer | |
(Principal Financial Officer) |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Aug. 02, 2019 |
|
Cover page. | ||
Document Type | 10-Q | |
Entity Registrant Name | Reliant Bancorp, Inc. | |
Entity Central Index Key | 0001606440 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 11,195,062 | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Parentheticals) - $ / shares |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 11,196,563 | 11,530,810 |
Common stock, shares outstanding (in shares) | 11,196,563 | 11,530,810 |
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net unrealized gains on available-for-sale securities, tax (benefit) | $ 1,241 | $ 31 | $ 2,962 | $ (1,548) |
Net unrealized losses on interest rate swap derivatives, tax | 304 | 471 | ||
Reclassification adjustment for (gains) included in net income, tax | $ 46 | $ 7 | $ 80 | $ 7 |
Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of Reliant Bancorp, Inc. conform to accounting principles generally accepted in the United States of America ("U.S. GAAP") and to general practices within the banking industry. The following is a brief summary of the significant policies. Nature of Operations Reliant Bank began organizational activities in 2005. Reliant Bancorp, Inc. provides financial services through its wholly owned bank subsidiary, Reliant Bank, which has offices in Williamson, Robertson, Davidson, Sumner, Rutherford, Maury, Hickman and Hamilton Counties in Tennessee. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are commercial and residential construction loans, commercial loans, installment loans and lines secured by home equity. Substantially all loans are secured by specific items of collateral including commercial and residential real estate, business assets, and consumer assets. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with instructions to Quarterly Report on Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, and cash flows in conformity with U.S. GAAP. All adjustments consisting of normally recurring accruals that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods covered by the report have been included. The accompanying unaudited consolidated financial statements should be read in conjunction with Reliant Bancorp, Inc.’s consolidated financial statements and related notes appearing in Reliant Bancorp, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2018. The consolidated financial statements as of and for the periods presented include the accounts of Reliant Bancorp Inc., Reliant Bank (the "Bank"), Community First TRUPS Holding Company ("TRUPS"), which is wholly owned by Reliant Bancorp Inc., Reliant Investment Holdings, LLC ("Holdings"), which is wholly owned by the Bank, and Reliant Mortgage Ventures, LLC ("RMV"), of which the Bank controls 51% of the governance rights. Reliant Bancorp Inc., the Bank, TRUPS, Holdings and RMV, are, collectively, referred to herein as the “Company”. All significant inter-company balances and transactions have been eliminated in consolidation. As described in Note 12 to these unaudited consolidated financial statements, Reliant Bancorp, Inc. and Community First, Inc. ("Community First") merged effective on January 1, 2018. The accounting and reporting policies of the Company conform to U.S. GAAP and general practices in the banking industry. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to determination of the allowance for loan losses, the valuation of other real estate, the valuation of debt and equity securities, the valuation of deferred tax assets and fair values of financial instruments. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Use of Estimates (Continued) The consolidated financial statements as of June 30, 2019, and for the three and six months ended June 30, 2019 and 2018, included herein have not been audited. The accounting and reporting policies of the Company conform to U.S. GAAP and Article 8 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although the Company believes that the disclosures made are adequate to make the information not misleading. The accompanying consolidated financial statements reflect all adjustments, which are, in the opinion of management, necessary to present a fair statement of the results for the interim periods presented. Such adjustments are of a normal recurring nature. The Company evaluates subsequent events through the date of filing. Certain prior period amounts have been reclassified to conform to the current period presentation. The results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. Reclassifications Certain reclassifications were made to the June 30, 2018 financial statement presentation in order to conform to the June 30, 2019 financial statement presentation. Total stockholders' equity and net income are unchanged due to these reclassifications. |
Securities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SECURITIES | SECURITIES The amortized cost and fair value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income at June 30, 2019 and December 31, 2018 were as follows:
NOTE 2 - SECURITIES (CONTINUED) Securities pledged at June 30, 2019 and December 31, 2018 had a carrying amount of $59,682 and $70,097, respectively, and were pledged to collateralize Federal Home Loan Bank advances, Federal Reserve advances and municipal deposits. At June 30, 2019 and December 31, 2018, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity. The fair value of available for sale debt securities at June 30, 2019 by contractual maturity are provided below. Actual maturities may differ from contractual maturities for mortgage and asset backed securities since the underlying asset may be called or prepaid with or without penalty. Securities not due at a single maturity date are shown separately.
The following table shows available for sale securities with unrealized losses and their estimated fair value aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2019:
NOTE 2 - SECURITIES (CONTINUED) The following table shows available for sale securities with unrealized losses and their estimated fair value aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2018:
Management has the intent and ability to hold all securities in an unrealized loss position for the foreseeable future, and the decline in fair value is largely due to changes in interest rates. The fair value is expected to recover as the securities approach their maturity date and/or market rates decline. There were 69 and 242 securities in an unrealized loss position as of June 30, 2019 and December 31, 2018, respectively. |
Loans and Allowance for Loan Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES Loans at June 30, 2019 and December 31, 2018 were comprised as follows:
NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES (CONTINUED) Activity in the allowance for loan losses by portfolio segment was as follows for the six months ended June 30, 2019:
Activity in the allowance for loan losses by portfolio segment was as follows for the six months ended June 30, 2018:
NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES (CONTINUED) The allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2019 was as follows:
NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES (CONTINUED) The allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2018 was as follows:
Risk characteristics relevant to each portfolio segment are as follows: Commercial, industrial and agricultural: The commercial, industrial and agricultural loan portfolio segment includes loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases or other expansion projects. Collection risk in this portfolio is driven by the creditworthiness of underlying borrowers, particularly cash flow from customers’ business operations. Commercial, industrial and agricultural loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES (CONTINUED) Multi-family and commercial real estate: Multi-family and commercial real estate and multi-family loans are subject to underwriting standards and processes similar to commercial, industrial and agricultural loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type. This diversity helps reduce the Company’s exposure to adverse economic events that affect any single market or industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. The Company also utilizes third-party experts to provide insight and guidance about economic conditions and trends affecting the market areas it serves. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. Non-owner occupied commercial real estate loans are loans secured by multifamily and commercial properties where the primary source of repayment is derived from rental income associated with the property (that is, loans for which 50 percent or more of the source of repayment comes from third party, nonaffiliated, rental income) or the proceeds of the sale, refinancing, or permanent financing of the property. These loans are made to finance income-producing properties such as apartment buildings, office and industrial buildings, and retail properties. Owner-occupied commercial real estate loans are loans where the primary source of repayment is the cash flow from the ongoing operations and business activities conducted by the party, or affiliate of the party, who owns the property. Construction and land development: Loans for non-owner-occupied real estate construction or land development are generally repaid through cash flow related to the operation, sale or refinance of the property. The Company also finances construction loans for owner-occupied properties. A portion of the Company’s construction and land portfolio segment is comprised of loans secured by residential product types (residential land and single-family construction). With respect to construction loans to developers and builders that are secured by non-owner occupied properties that the Company may originate from time to time, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. Construction and land development loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates, market sales activity, and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing. 1-4 family residential real estate: Residential real estate loans represent loans to consumers or investors to finance a residence. These loans are typically financed on 15 to 30 year amortization terms, but generally with shorter maturities of 5 to 15 years. Many of these loans are extended to borrowers to finance their primary or secondary residence. Loans to an investor secured by a 1-4 family residence will be repaid from either the rental income from the property or from the sale of the property. This loan segment also includes closed-end home equity loans that are secured by a first or second mortgage on the borrower’s residence. This allows customers to borrow against the equity in their home. Loans in this portfolio segment are underwritten and approved based on a number of credit quality criteria including limits on maximum Loan-to-Value ("LTV"), minimum credit scores, and maximum debt to income. Real estate market values as of the time the loan is made directly affect the amount of credit extended and, in addition, changes in these residential property values impact the depth of potential losses in this portfolio segment. NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES (CONTINUED) 1-4 family HELOC: This loan segment includes open-end home equity loans that are secured by a first or second mortgage on the borrower’s residence. This allows customers to borrow against the equity in their home utilizing a revolving line of credit. These loans are underwritten and approved based on a number of credit quality criteria including limits on maximum LTV, minimum credit scores, and maximum debt to income. Real estate market values as of the time the loan is made directly affect the amount of credit extended and, in addition, changes in these residential property values impact the depth of potential losses in this portfolio segment. Because of the revolving nature of these loans as well as the fact that many represent second mortgages, this portfolio segment can contain more risk than the amortizing 1-4 family residential real estate loans. Consumer: The consumer loan portfolio segment includes non-real estate secured direct loans to consumers for household, family, and other personal expenditures. Consumer loans may be secured or unsecured and are usually structured with short or medium term maturities. These loans are underwritten and approved based on a number of consumer credit quality criteria including limits on maximum LTV on secured consumer loans, minimum credit scores, and maximum debt to income. Many traditional forms of consumer installment credit have standard monthly payments and fixed repayment schedules of one to five years. These loans are made with either fixed or variable interest rates that are based on specific indices. Installment loans fill a variety of needs, such as financing the purchase of an automobile, a boat, a recreational vehicle, or other large personal items, or for consolidating debt. These loans may be unsecured or secured by an assignment of title, as in an automobile loan, or by money in a bank account. In addition to consumer installment loans, this portfolio segment also includes secured and unsecured personal lines of credit as well as overdraft protection lines. Loans in this portfolio segment are sensitive to unemployment and other key consumer economic measures. Non-accrual loans by class of loan were as follows at June 30, 2019 and December 31, 2018:
Performing non-accrual loans totaled $1,578 and $2,010 at June 30, 2019 and December 31, 2018, respectively. NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES (CONTINUED) Individually impaired loans by class of loans were as follows at June 30, 2019:
Individually impaired loans by class of loans were as follows at December 31, 2018:
The average balances of impaired loans for the six months ended June 30, 2019 and 2018 was as follows:
NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES (CONTINUED) The Company utilizes a risk grading system to monitor the credit quality of the Company’s commercial loan portfolio which consists of commercial, industrial and agricultural, commercial real estate and construction loans. Loans are graded on a scale of 1 to 9. Grades 1 to 5 are pass credits, grade 6 is special mention, grade 7 is substandard, grade 8 is doubtful and grade 9 is loss. A description of the risk grades are as follows: Grade 1 - Minimal Risk (Pass) This grade includes loans to borrowers with a strong financial position and history of profits and cash flows sufficient to service the debt. These borrowers have well defined sources of primary/secondary repayment, conservatively leveraged balance sheets and the ability to access a wide range of financing alternatives. Collateral securing these loans is negotiable, of sufficient value and in possession of the Company. Risk of loss is unlikely. Grade 2 - High Quality (Pass) This grade includes loans to borrowers with a strong financial condition reflecting dependable net profits and cash flows. The borrower has verifiable liquid net worth providing above average asset protection. An identifiable market exists for the collateral. Risk of loss is unlikely. Grade 3 - Above Average (Pass) This grade includes loans to borrowers with a balance sheet that reflects a comfortable degree of leverage and liquidity. Borrowers are profitable and have a sustained record of servicing debt. An identifiable market exists for the collateral, but liquidation could take up to one year. Risk of loss is unlikely. Grade 4 - Average (Pass) This grade includes loans to borrowers with a financial condition that is satisfactory and comparable to industry standards. The borrower has verifiable net worth, providing over time, average asset protection. Borrower's cash flows are sufficient to satisfy debt service requirements. Risk of loss is below average. Grade 5 - Acceptable (Management Attention) (Pass) This grade includes loans to borrowers whose loans are performing, but sources of repayment are not documented by the current credit analysis. There are some declining trends in margins, ratios and/or cash flow. Guarantor(s) have strong net worth(s), but assets may be concentrated in real estate or other illiquid investments. Risk of loss is average. Grade 6 - Special Mention Special mention assets have potential weaknesses that may, if not checked or corrected, weaken the asset or inadequately protect the Company’s position at some future date. These assets pose elevated risk, but their weakness does not yet justify a substandard classification. Borrowers may be experiencing adverse operating trends (declining revenues or margins) or an ill proportioned balance sheet (e.g., increasing inventory without an increase in sales, high leverage, tight liquidity). Adverse economic or market conditions, such as interest rate increases or the entry of a new competitor, may also support a special mention rating. Nonfinancial reasons for rating a credit exposure special mention include management problems, pending litigation, an ineffective loan agreement or other material structural weakness, and any other significant deviation from prudent lending practices. The special mention rating is designed to identify a specific level of risk and concern about asset quality. Although a special mention asset has a higher probability of default than a pass asset, its default is not imminent. NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES (CONTINUED) Grade 7 - Substandard A ‘‘substandard’’ extension of credit is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Extensions of credit so classified should have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard credits, does not have to exist in individual extensions of credit classified substandard. Substandard assets have a high probability of payment default, or they have other well-defined weaknesses. They require more intensive supervision by Company management. Substandard assets are generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity, or marginal capitalization. Repayment may depend on collateral or other credit risk mitigation. Grade 8 - Doubtful An extension of credit classified ‘‘doubtful’’ has all the weaknesses inherent in one classified substandard, 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 that may work to the advantage of and strengthen the credit, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceedings, capital injection, perfecting liens on additional collateral, or refinancing plans. Generally, the doubtful classification should not extend for a long period of time because in most cases the pending factors or events that warranted the doubtful classification should be resolved either positively or negatively in a reasonable period of time. Grade 9 - Loss Extensions of credit classified ‘‘loss’’ are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the credit has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. Amounts classified loss should be promptly charged off. The Company will not attempt long term recoveries while the credit remains on the Company’s books. Losses should be taken in the period in which they surface as uncollectible. With loss assets, the underlying borrowers are often in bankruptcy, have formally suspended debt repayments, or have otherwise ceased normal business operations. Once an asset is classified loss, there is little prospect of collecting either its principal or interest. Non-commercial purpose loans are initially assigned a default loan grade of 99 (Pass) and are risk graded (Grade 6, 7, or 8) according to delinquency status when applicable. Credit quality indicators by class of loan were as follows at June 30, 2019:
NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES (CONTINUED) Credit quality indicators by class of loan were as follows at December 31, 2018:
Past due status by class of loan was as follows at June 30, 2019:
Past due status by class of loan was as follows at December 31, 2018:
NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES (CONTINUED) There were two loans totaling $22 past due 90 days or more and still accruing interest at June 30, 2019. There was one loan totaling $6 past due 90 days or more and still accruing interest at December 31, 2018. During the six months ended June 30, 2019, there were no loans that were modified to troubled debt restructurings. One previously disclosed troubled debt restructuring with a principal balance of $89, was paid in full during the six months ended June 30, 2019. The following table presents loans by class modified as troubled debt restructurings that occurred during the first six months of 2018:
The modification that occurred during the six months ended June 30, 2018, consisted of an interest only monthly payment restructure and had no effect on the allowance for loan losses or interest income. The Company has acquired loans for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The outstanding balance and carrying amount of the purchased credit impaired loans were as follows at June 30, 2019 and December 31, 2018:
NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES (CONTINUED) Activity related to the accretable portion of the purchase discount on loans acquired with deteriorated credit quality is as follows for the quarters and six months ended June 30, 2019 and 2018:
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Other Real Estate |
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Banking and Thrift [Abstract] | |
OTHER REAL ESTATE | OTHER REAL ESTATE In connection with the merger with Community First, the Company acquired three real estate parcels. The Company valued the properties at their estimated fair values less costs to sell which totaled $1,650. Expenses related to other real estate totaled $15 and $13 for the six months ended June 30, 2019 and 2018, respectively. At June 30, 2019, there were four loans to one borrower, all cross-collateralized, with related balances totaling $48, in the process of foreclosure. There was one 1-4 Family Residential property at June 30, 2019, with a recorded balance of $848 related to other real estate. |
Fair Values of Assets and Liabilities |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUES OF ASSETS AND LIABILITIES | FAIR VALUES OF ASSETS AND LIABILITIES Financial accounting standards relating to fair value measurements establish a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2 Inputs to the valuation methodology include: •Quoted prices for similar assets or liabilities in active markets; •Quoted prices for identical or similar assets or liabilities in inactive markets; •Inputs other than quoted prices that are observable for the asset or liability; and •Inputs that are derived principally from or corroborated by the observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 Inputs to the valuation methodology are unobservable and reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. NOTE 5 - FAIR VALUES OF ASSETS AND LIABILITIES (CONTINUED) An asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques should maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value on a recurring basis: Securities available for sale: The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The Company obtains fair value measurements for securities available for sale from an independent pricing service. The fair value measurements consider observable data that may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, cash flows and reference data, including market research publications, among other things. Interest rate swaps: The fair values of interest rate swaps are determined based on discounted future cash flows. Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Assets and liabilities measured at fair value on a nonrecurring basis include the following: Impaired Loans: The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on the present value of expected payments using the loan’s effective rate as the discount rate or recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company’s valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. NOTE 5 - FAIR VALUES OF ASSETS AND LIABILITIES (CONTINUED) The following table sets forth the Company’s major categories of assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, as of June 30, 2019 and December 31, 2018:
NOTE 5 - FAIR VALUES OF ASSETS AND LIABILITIES (CONTINUED) The following table sets forth the Company’s major categories of assets and liabilities measured at fair value on a nonrecurring basis, by level within the fair value hierarchy, as of June 30, 2019 and December 31, 2018:
The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which we have utilized Level 3 inputs to determine fair value at June 30, 2019 and December 31, 2018:
NOTE 5 - FAIR VALUES OF ASSETS AND LIABILITIES (CONTINUED) Carrying amounts and estimated fair values of financial instruments not reported at fair value at June 30, 2019 were as follows:
Carrying amounts and estimated fair values of financial instruments not reported at fair value at December 31, 2018 were as follows:
NOTE 5 - FAIR VALUES OF ASSETS AND LIABILITIES (CONTINUED) The methods and assumptions used to estimate fair value are described as follows: Carrying amount is the estimated fair value for cash and cash equivalents, accrued interest receivable and payable, restricted equity securities, federal funds sold or purchased, demand deposits, and variable rate loans or deposits that re-price frequently and fully. For fixed rate loans or deposits and for variable rate loans or deposits with infrequent re-pricing or re-pricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. Fair value of debt is based on discounted cash flows using current rates for similar financing. |
Stock-based Compensation |
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Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock Option Plan In 2006, the Board of Directors and shareholders of the Bank (then known as "Commerce Union Bank") approved the Commerce Union Bank Stock Option Plan (the “Plan”). The Plan provided for the granting of stock options, and authorized the issuance of common stock upon the exercise of such options, for up to 625,000 shares of common stock to employees and organizers. As part of the Bank's reorganization into a holding company corporate structure in 2012, all Bank options were replaced with Commerce Union Bancshares, Inc. (now known as "Reliant Bancorp, Inc.") options with no change in terms. On March 10, 2015, the shareholders of the Company approved the Commerce Union Bancshares, Inc. Amended and Restated Stock Option Plan (the “A&R Plan”) that permits the grant of awards with respect to up to 1,250,000 shares of Company common stock in the form of stock options. As part of the merger of Commerce Bank and Reliant Bank, all outstanding stock options of Reliant Bank were converted to stock options of Commerce Union Bancshares, Inc. (now known as "Reliant Bancorp, Inc.") under the A&R Plan. Under the A&R Plan, stock option awards may be granted in the form of incentive stock options or non-statutory stock options, and are generally exercisable for up to 10 years following the date such option awards are granted. Exercise prices of incentive stock options must be equal to or greater than the fair market value of the common stock on the grant date. A summary of the activity in the A&R Plan for the six months ended June 30, 2019 is as follows:
NOTE 6 - STOCK-BASED COMPENSATION (CONTINUED) Stock Option Plan, Continued As of June 30, 2019, there was $259 of unrecognized future compensation expense to be recognized related to stock options. Equity Incentive Plan On June 18, 2015, the shareholders of Commerce Union Bancshares, Inc. (now known as "Reliant Bancorp, Inc.") approved the Commerce Union Bancshares, Inc. 2015 Equity Incentive Plan, which reserves up to 900,000 shares of common stock to be subject to awards under the plan, including awards in the form of stock options, restricted stock grants, performance-based awards, and other awards denominated or payable by reference to or based on or related to common stock. The following table shows the activity related to non-vested restricted stock for the six months ended June 30, 2019:
The restricted shares vest over periods ranging from one to three years. As of June 30, 2019, there was $1,250 of unrecognized compensation cost related to non-vested restricted share awards. |
Regulatory Capital Requirements |
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Banking and Thrift [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REGULATORY CAPITAL REQUIREMENTS | REGULATORY CAPITAL REQUIREMENTS The Bank is subject to regulatory capital requirements administered by the federal and state banking agencies. The Company meets the Small Bank Holding Company regulatory exemption limit presently set at three billion in total assets. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Management believes as of June 30, 2019, the Bank meets all capital adequacy requirements to which it is subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If only adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At June 30, 2019 and December 31, 2018, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. In July 2013, the Federal Deposit Insurance Corporation (FDIC) approved final rules that substantially amended the regulatory risk-based capital rules applicable to the Company and the Bank. The final rules implement the regulatory capital reforms of the Basel Committee on Banking Supervision reflected in “Basel III: A Global Framework for More Resilient Banks and Banking Systems” ("Basel III") and changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. NOTE 7 - REGULATORY CAPITAL REQUIREMENTS (CONTINUED) Under these rules, the leverage and risk-based capital ratios of bank holding companies may not be lower than the leverage and risk-based capital ratios for insured depository institutions. The final rules implementing Basel III became effective on January 1, 2015, and include new minimum risk-based capital and leverage ratios and a new common equity tier 1 ratio. In addition, these rules refine the definition of what constitutes capital for purposes of calculating those ratios, including the definitions of Tier 1 capital and Tier 2 capital. Basel III establishes a “capital conservation buffer” of 2.5% which began phasing in on January 1, 2016, at a rate of 0.625% per year. The buffer became fully phased in on January 1, 2019. An institution is subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if capital levels fall below minimum levels plus the buffer. Capital amounts and ratios for the Company and the Bank (required) are presented below as of June 30, 2019 and December 31, 2018.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE The following is a summary of the components comprising basic and diluted earnings per common share of stock ("EPS"):
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Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING | SEGMENT REPORTING The Company has two reportable business segments: retail banking and residential mortgage banking. Segment information is derived from the internal reporting system utilized by management. Revenues and expenses for segments reflect those which can be specifically identified and have been assigned based on internally developed allocation methods. Financial results have been presented, to the extent practicable, as if each segment operated on a stand-alone basis. Retail Banking provides deposit and lending services to consumer and business customers within our primary geographic markets. Our customers are serviced through branch locations, ATMs, online banking, and mobile banking. Residential Mortgage Banking originates traditional first lien residential mortgage loans and first lien home equity lines of credit throughout the United States. The traditional first lien residential mortgage loans are typically underwritten to government agency standards and sold to third-party secondary market mortgage investors. The home equity lines of credit are typically sold to participating banks or other investor groups and are underwritten to their standards. During the second quarter of 2019, RMV began acquiring loans from approved correspondent lenders and reselling them in the secondary market. These loans are not FNMA or FHLMC qualified loans, and are of higher risk, such as, jumbo loans or senior position home equity lines of credit. NOTE 9 - SEGMENT REPORTING (CONTINUED) The following presents summarized results of operations for the Company’s business segments for the periods indicated:
NOTE 9 - SEGMENT REPORTING (CONTINUED)
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Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES | DERIVATIVES The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and other terms of the individual interest rate swap agreements. NOTE 10 - DERIVATIVES (CONTINUED) Interest Rate Swaps Designated as Cash Flow Hedges Interest rate swaps with notional amounts totaling $60,000 as of June 30, 2019 were designated as cash flow hedges of certain short-term interest bearing liabilities and subordinated debentures,which are fully effective. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swaps is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining terms of the swap agreements. Summary information related to the interest rate swaps designated as cash flow hedges as of June 30, 2019, is as follows:
Cash Flow Hedges The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the period ended:
The following table reflects the cash flow hedges included in the Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018, respectively:
NOTE 10 - DERIVATIVES (CONTINUED) Fair Value Hedges The following table reflects the fair value hedges included in the Consolidated Statements of Income for the six months ended June 30, 2019 and 2018, respectively:
The following table reflects the fair value hedges included in the Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018, respectively:
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Income Taxes |
6 Months Ended |
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Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense totaled $501 in the second quarter of 2019 as compared to $115 in the second quarter of 2018 and $873 and $912 for the six months ended June 30, 2019 and 2018, respectively. The effective tax rate for the three months ended June 30, 2019 and 2018 was 16% and 9%, respectively. The increase in the effective tax rate for the three months ended June 30, 2019 can be attributed to a decrease in tax-exempt securities. Merger expenses in the second quarter of 2018, had the impact of reducing taxable income and increasing the proportion of tax exempt income to total income. The effective tax rate for the six months ended June 30, 2019 and 2018 was 15% and 17%, respectively. |
Business Combination |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS COMBINATION | BUSINESS COMBINATION Effective January 1, 2018, Pioneer Merger Sub, Inc., a wholly owned subsidiary of Reliant Bancorp, Inc., merged with and into Community First, with Community First continuing as the surviving corporation, and immediately thereafter Community First merged with and into Reliant Bancorp, Inc., with Reliant Bancorp, Inc. continuing as the surviving corporation. Pursuant to the merger agreement, each outstanding share of Community First common stock (except for excluded shares and dissenting shares) was converted into and canceled in exchange for the right to receive 0.481 shares of Reliant Bancorp, Inc. common stock, together with cash in lieu of any fractional shares. This business combination expanded and further diversified the Company's market area. The following table details the financial impact of the business combination, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed and goodwill recognized:
NOTE 12 - BUSINESS COMBINATION (CONTINUED) During 2018, as part of the system integration of Community First, the Company determined minor adjustments were appropriate to reduce other assets by $93 and increase payables and other liabilities by $85 effective as of the acquisition date. |
Recent Accounting Pronouncements |
6 Months Ended |
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Jun. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Information about certain issued accounting standards updates is presented below. Also refer to Note 1 - Summary of Significant Accounting Policies “Recent Authoritative Accounting Guidance” in our Annual Report on Form 10-K for the year ended December 31, 2018 for additional information related to previously issued accounting standards updates. ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” implements a common revenue standard that clarifies the principles for recognizing revenue. The principle element of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 was originally going to be effective for the Company on January 1, 2018; however, the FASB recently issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date" which deferred the effective date of ASU 2014-09 by one year to January 1, 2019. Revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. The adoption of this standard did not have a significant impact on the Company. ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (viii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. ASU 2016-01 became effective for us on January 1, 2019 and did not have a significant impact on our financial statements. ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 will require lessees to recognize a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 will be effective for us on January 1, 2020 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. We estimate that the effect of implementing this pronouncement will result in right to use assets of $11,455 and a corresponding liability, using the remaining contractual lease periods. We also estimate the impact on regulatory capital of the Company to be a reduction of seven basis points to the Tier 1 leverage capital ratio. Management is presently evaluating the planned renewals of existing leases. If management determines to utilize the renewals of leases then the right to use assets and corresponding liability will increase. NOTE 13 - RECENT ACCOUNTING PRONOUNCEMENTS (CONTINUED) ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available for sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is expected to be effective on January 1, 2021. We are currently evaluating the potential impact of ASU 2016-13 on our financial statements. We are currently developing an implementation plan to include assessment of processes, portfolio segmentation, model development, system requirements and the identification of data and resource needs, among other things. We are also in the process of implementing a third-party vendor solution to assist us in the application of the ASU 2016-13. The adoption of the ASU 2016-13 could result in an increase in the allowance for loan losses as a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Furthermore, ASU 2016-13 will necessitate that we establish an allowance for expected credit losses for certain debt securities and other financial assets. While we are currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date. ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment.” ASU 2017-04 eliminates Step 2 from the goodwill impairment test which required entities to compute the implied fair value of goodwill. Under ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 will be effective for the Company on January 1, 2021, with earlier adoption permitted and is not currently expected to have a significant impact on our financial statements. ASU 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, modify/clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. ASU 2018-13 will be effective for the Company on January 1, 2021, with early adoption permitted, and is not expected to have a significant impact on our financial statements. |
Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Reliant Bank began organizational activities in 2005. Reliant Bancorp, Inc. provides financial services through its wholly owned bank subsidiary, Reliant Bank, which has offices in Williamson, Robertson, Davidson, Sumner, Rutherford, Maury, Hickman and Hamilton Counties in Tennessee. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are commercial and residential construction loans, commercial loans, installment loans and lines secured by home equity. Substantially all loans are secured by specific items of collateral including commercial and residential real estate, business assets, and consumer assets. |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with instructions to Quarterly Report on Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, and cash flows in conformity with U.S. GAAP. All adjustments consisting of normally recurring accruals that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods covered by the report have been included. The accompanying unaudited consolidated financial statements should be read in conjunction with Reliant Bancorp, Inc.’s consolidated financial statements and related notes appearing in Reliant Bancorp, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2018. The consolidated financial statements as of and for the periods presented include the accounts of Reliant Bancorp Inc., Reliant Bank (the "Bank"), Community First TRUPS Holding Company ("TRUPS"), which is wholly owned by Reliant Bancorp Inc., Reliant Investment Holdings, LLC ("Holdings"), which is wholly owned by the Bank, and Reliant Mortgage Ventures, LLC ("RMV"), of which the Bank controls 51% of the governance rights. Reliant Bancorp Inc., the Bank, TRUPS, Holdings and RMV, are, collectively, referred to herein as the “Company”. All significant inter-company balances and transactions have been eliminated in consolidation. As described in Note 12 to these unaudited consolidated financial statements, Reliant Bancorp, Inc. and Community First, Inc. ("Community First") merged effective on January 1, 2018. The accounting and reporting policies of the Company conform to U.S. GAAP and general practices in the banking industry. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to determination of the allowance for loan losses, the valuation of other real estate, the valuation of debt and equity securities, the valuation of deferred tax assets and fair values of financial instruments. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Use of Estimates (Continued) The consolidated financial statements as of June 30, 2019, and for the three and six months ended June 30, 2019 and 2018, included herein have not been audited. The accounting and reporting policies of the Company conform to U.S. GAAP and Article 8 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although the Company believes that the disclosures made are adequate to make the information not misleading. The accompanying consolidated financial statements reflect all adjustments, which are, in the opinion of management, necessary to present a fair statement of the results for the interim periods presented. Such adjustments are of a normal recurring nature. The Company evaluates subsequent events through the date of filing. Certain prior period amounts have been reclassified to conform to the current period presentation. The results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. |
Reclassifications | Reclassifications Certain reclassifications were made to the June 30, 2018 financial statement presentation in order to conform to the June 30, 2019 financial statement presentation. Total stockholders' equity and net income are unchanged due to these reclassifications. |
Securities (Tables) |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities | The amortized cost and fair value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income at June 30, 2019 and December 31, 2018 were as follows:
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Fair Value of Available for Sale Maturities by Contractual Maturity | The fair value of available for sale debt securities at June 30, 2019 by contractual maturity are provided below. Actual maturities may differ from contractual maturities for mortgage and asset backed securities since the underlying asset may be called or prepaid with or without penalty. Securities not due at a single maturity date are shown separately.
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Securities in Unrealized Loss Position | The following table shows available for sale securities with unrealized losses and their estimated fair value aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2019:
NOTE 2 - SECURITIES (CONTINUED) The following table shows available for sale securities with unrealized losses and their estimated fair value aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2018:
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Loans and Allowance for Loan Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Loans and Allowance for Loan Losses | Loans at June 30, 2019 and December 31, 2018 were comprised as follows:
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Activity in the Allowance for Loan Losses By Portfolio Segment | Activity in the allowance for loan losses by portfolio segment was as follows for the six months ended June 30, 2019:
Activity in the allowance for loan losses by portfolio segment was as follows for the six months ended June 30, 2018:
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Schedule of Allowance for Credit Losses and Recorded Investments in Loans By Portfolio and By Impairment Method | The allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2019 was as follows:
The allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2018 was as follows:
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Non-Accrual Loans By Class of Loan | Non-accrual loans by class of loan were as follows at June 30, 2019 and December 31, 2018:
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Individually Impaired Loans by Class of Loans | Individually impaired loans by class of loans were as follows at June 30, 2019:
Individually impaired loans by class of loans were as follows at December 31, 2018:
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Average Balances of Impaired Loans | The average balances of impaired loans for the six months ended June 30, 2019 and 2018 was as follows:
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Credit Quality Indicators By Class of Loan | Credit quality indicators by class of loan were as follows at June 30, 2019:
Credit quality indicators by class of loan were as follows at December 31, 2018:
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Past Due Status By Class of Loan | Past due status by class of loan was as follows at June 30, 2019:
Past due status by class of loan was as follows at December 31, 2018:
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Loans By Class Modified as Troubled Debt Restructurings | The following table presents loans by class modified as troubled debt restructurings that occurred during the first six months of 2018:
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Outstanding Balance And Carrying Amount of the Purchased Credit Impaired Loans | The outstanding balance and carrying amount of the purchased credit impaired loans were as follows at June 30, 2019 and December 31, 2018:
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Activity Related to Accretable Portion of the Purchase Discount on Loans Acquired With Deteriorated Credit Quality | Activity related to the accretable portion of the purchase discount on loans acquired with deteriorated credit quality is as follows for the quarters and six months ended June 30, 2019 and 2018:
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Fair Values of Assets and Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | The following table sets forth the Company’s major categories of assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, as of June 30, 2019 and December 31, 2018:
NOTE 5 - FAIR VALUES OF ASSETS AND LIABILITIES (CONTINUED) The following table sets forth the Company’s major categories of assets and liabilities measured at fair value on a nonrecurring basis, by level within the fair value hierarchy, as of June 30, 2019 and December 31, 2018:
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Level 3 input information for Assets Measured at Fair Value on a Nonrecurring Basis | The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which we have utilized Level 3 inputs to determine fair value at June 30, 2019 and December 31, 2018:
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Carrying Amounts And Estimated Fair Values of Financial instruments Not Reported at Fair Value | Carrying amounts and estimated fair values of financial instruments not reported at fair value at June 30, 2019 were as follows:
Carrying amounts and estimated fair values of financial instruments not reported at fair value at December 31, 2018 were as follows:
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Stock-based Compensation (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation, Stock Options, Activity | A summary of the activity in the A&R Plan for the six months ended June 30, 2019 is as follows:
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Schedule of Nonvested Share Activity |
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Activity Related to Non-Vested Restricted Stock | The following table shows the activity related to non-vested restricted stock for the six months ended June 30, 2019:
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Regulatory Capital Requirements (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual and Required Capital Amounts and Ratios | apital amounts and ratios for the Company and the Bank (required) are presented below as of June 30, 2019 and December 31, 2018.
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Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Components Comprising Basic and Diluted Earnings Per Share | The following is a summary of the components comprising basic and diluted earnings per common share of stock ("EPS"):
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Segment Reporting (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Results of Operations by Business Segment | The following presents summarized results of operations for the Company’s business segments for the periods indicated:
NOTE 9 - SEGMENT REPORTING (CONTINUED)
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Derivatives (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Swaps Designated as Cash Flow Hedges | Summary information related to the interest rate swaps designated as cash flow hedges as of June 30, 2019, is as follows:
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Net Gain (Losses) Related to Derivative Instruments | Cash Flow Hedges The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the period ended:
Fair Value Hedges The following table reflects the fair value hedges included in the Consolidated Statements of Income for the six months ended June 30, 2019 and 2018, respectively:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Flow Hedges Included in the Consolidated Balance Sheets | The following table reflects the cash flow hedges included in the Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018, respectively:
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Fair Value Hedging Included in the Consolidated Balance Sheets | The following table reflects the fair value hedges included in the Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018, respectively:
|
Business Combination (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation and Allocation of Purchase Price | The following table details the financial impact of the business combination, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed and goodwill recognized:
|
Summary of Significant Accounting Policies (Details) |
Jun. 30, 2019 |
---|---|
Reliant Mortgage Ventures, LLC | |
Noncontrolling Interest [Line Items] | |
Governance rights control by the Bank (in percent) | 51.00% |
Securities - Textual (Details) $ in Thousands |
Jun. 30, 2019
USD ($)
security
|
Dec. 31, 2018
USD ($)
security
|
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Securities pledged, carrying amount | $ | $ 59,682 | $ 70,097 |
Number of securities of single issuer with book value greater than ten percent of stockholders' equity | 0 | 0 |
Number of securities in unrealized loss position | 69 | 242 |
Securities - Available-for-sale Securities Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Amortized Cost | ||
Due within one year | $ 660 | |
Due in one to five years | 938 | |
Due in five to ten years | 7,240 | |
Due after ten years | 206,762 | |
Amortized Cost | 282,545 | $ 300,594 |
Estimated Fair Value | ||
Due within one year | 663 | |
Due in one to five years | 935 | |
Due in five to ten years | 7,400 | |
Due after ten years | 214,947 | |
Estimated Fair Value | 290,373 | 296,323 |
Mortgage backed securities | ||
Amortized Cost | ||
Asset backed securities | 37,515 | |
Amortized Cost | 37,515 | 32,172 |
Estimated Fair Value | ||
Asset backed securities | 37,508 | |
Estimated Fair Value | 37,508 | 31,958 |
Asset backed securities | ||
Amortized Cost | ||
Asset backed securities | 29,430 | |
Amortized Cost | 29,430 | 28,635 |
Estimated Fair Value | ||
Asset backed securities | 28,920 | |
Estimated Fair Value | $ 28,920 | $ 27,996 |
Loans and Allowance for Loan Losses - Summary of Non-accrual Loans by Class of Loan (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | $ 3,045 | $ 4,194 |
Commercial, Industrial and Agricultural | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | 314 | 279 |
Real Estate | Multi-family and Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | 811 | 0 |
Real Estate | Construction, Land Development and Farmland | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | 387 | 1,294 |
Real Estate | 1-4 Family Residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | 1,187 | 2,556 |
Real Estate | 1-4 Family HELOC | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | 296 | 0 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans | $ 50 | $ 65 |
Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
contract
| |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Contracts | contract | 1 |
Pre-Modification Outstanding Recorded Investments | $ 1,254 |
Post-Modification Outstanding Recorded Investments | $ 1,254 |
Real Estate | 1-4 Family Residential | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Contracts | contract | 1 |
Pre-Modification Outstanding Recorded Investments | $ 1,254 |
Post-Modification Outstanding Recorded Investments | $ 1,254 |
Loans and Allowance for Loan Losses - Summary of Carrying Amount of Loans (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | $ 1,576 | $ 2,596 |
Less remaining purchase discount | 272 | 300 |
Allowance for loan losses | 0 | 0 |
Carrying amount, net of allowance | 1,304 | 2,296 |
Commercial, Industrial and Agricultural | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | 0 | 63 |
Real Estate | Multi-family and Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | 224 | 233 |
Real Estate | Construction, Land Development and Farmland | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | 1,037 | 1,958 |
Real Estate | 1-4 Family Residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | 315 | 324 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total outstanding balance | $ 0 | $ 18 |
Loans and Allowance for Loan Losses - Activity Related to Accretable Portion of Loans Acquired (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2018 |
Mar. 31, 2018 |
|
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance | $ 110 | $ 110 | $ 222 | $ 0 |
New loans purchased | 0 | 0 | 0 | 260 |
Loan payoffs | 0 | 67 | ||
Loan charge offs | (7) | 0 | 0 | 0 |
Accretion income | 0 | 0 | (95) | (38) |
Balance | $ 103 | $ 110 | $ 60 | $ 222 |
Other Real Estate (Details) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jan. 01, 2018
USD ($)
parcel
|
Jun. 30, 2019
USD ($)
loan
property
borrower
|
Jun. 30, 2018
USD ($)
|
|
Business Acquisition [Line Items] | |||
Expenses related to other real estate | $ 15 | $ 13 | |
Number of loans in process of foreclosure | loan | 4 | ||
Mortgage loans in process of foreclosure, amount | $ 48 | ||
Real Estate | 1-4 Family Residential | |||
Business Acquisition [Line Items] | |||
Number of properties | property | 1 | ||
Other real estate | $ 848 | ||
Community First | |||
Business Acquisition [Line Items] | |||
Real estate parcels acquired | parcel | 3 | ||
Other real estate owned, acquired | $ 1,650 | ||
Collateral Pledged | |||
Business Acquisition [Line Items] | |||
Number of borrowers with loans in process of foreclosure | borrower | 1 |
Fair Values of Assets and Liabilities - Summary of Quantitative Information of Assets Measured at Fair Value on Nonrecurring Basis by Utilized Level 3 Inputs (Details) - Estimated costs to sell - Appraisal - Range (Weighted Average) - Significant Unobservable Inputs (Level 3) - Nonrecurring |
Jun. 30, 2019 |
---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired loans | 0.10 |
Other real estate owned | 0.10 |
Stock-based Compensation - Nonvested Stock Option Activity (Details) |
6 Months Ended |
---|---|
Jun. 30, 2019
$ / shares
shares
| |
Shares | |
Non-vested options, beginning (in shares) | shares | 71,200 |
Granted (in shares) | shares | 1,000 |
Vested (in shares) | shares | (2,847) |
Forfeited (in shares) | shares | (2,753) |
Non-vested options, ending (in shares) | shares | 66,600 |
Weighted Average Grant-Date Fair Value | |
Non-vested options, beginning (in dollars per share) | $ / shares | $ 5.28 |
Granted (in dollars per share) | $ / shares | 6.57 |
Vested (in dollars per share) | $ / shares | 4.24 |
Forfeited (in dollars per share) | $ / shares | 4.89 |
Non-vested options, ending (in dollars per share) | $ / shares | $ 5.36 |
Stock-based Compensation - Nonvested Restricted Stock Activity (Details) - Restricted Stock |
6 Months Ended |
---|---|
Jun. 30, 2019
$ / shares
shares
| |
Shares | |
Non-vested shares, Beginning (in shares) | shares | 110,660 |
Granted (in shares) | shares | 8,000 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (7,750) |
Non-vested shares, Ending (in shares) | shares | 110,910 |
Weighted Average Grant-Date Fair Value | |
Non-vested shares, Beginning (in dollars per share) | $ / shares | $ 24.28 |
Granted (in dollars per share) | $ / shares | 21.94 |
Vested (in dollars per share) | $ / shares | 0.00 |
Forfeited (in dollars per share) | $ / shares | 23.25 |
Non-vested shares, Ending (in dollars per share) | $ / shares | $ 24.19 |
Earnings Per Share - Summary of Components of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Basic EPS Computation | ||||
Net income attributable to common shareholders | $ 4,239 | $ 2,139 | $ 8,063 | $ 5,880 |
Weighted average common shares outstanding (in shares) | 11,196,898 | 11,396,829 | 11,300,095 | 11,389,634 |
Basic earnings per common share (in dollars per share) | $ 0.38 | $ 0.19 | $ 0.71 | $ 0.52 |
Diluted EPS Computation | ||||
Net income attributable to common shareholders | $ 4,239 | $ 2,139 | $ 8,063 | $ 5,880 |
Dilutive effect of stock options, restricted shares and employee stock purchase plan (in shares) | 89,729 | 98,404 | 78,300 | 96,838 |
Adjusted weighted average common shares outstanding (in shares) | 11,286,627 | 11,495,233 | 11,378,395 | 11,486,472 |
Diluted earnings per common share (in dollars per share) | $ 0.38 | $ 0.19 | $ 0.71 | $ 0.51 |
Segment Reporting - Textual (Details) |
6 Months Ended |
---|---|
Jun. 30, 2019
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Derivatives - Textual (Details) |
Jun. 30, 2019
USD ($)
|
---|---|
Cash Flow Hedging | Interest rate swaps | |
Derivative [Line Items] | |
Notional amounts | $ 60,000,000 |
Derivatives - Interest Rate Swaps Designated as Cash Flow Hedges (Details) - Cash Flow Hedging - Interest rate swaps |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
| |
Derivative [Line Items] | |
Notional amounts | $ 60,000,000 |
Weighted average pay rates | 3.338% |
Weighted average receive rates | 3.06% |
Weighted average maturity | 3 years 11 months 19 days |
Unrealized losses | $ 2,955,000 |
Derivatives - Net Gains (Losses) Relating to Cash Flow Derivative Instruments (Details) - Cash Flow Hedging - Interest rate swaps $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
| |
Derivative [Line Items] | |
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | $ (1,802) |
Amount of Gain (Loss) Reclassified from OCI to Interest Income | 0 |
Amount of Gain (Loss) Recognized in Other Non-Interest Income (Ineffective Portion) | $ 0 |
Derivatives - Fair Value Hedges Included in the Consolidated Statements of Income (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Fair Value Hedging | Interest income | Interest rate swaps | ||
Derivative [Line Items] | ||
Change in fair value on interest rate swaps hedging investments | $ (1,057) | $ 255 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 501 | $ 115 | $ 873 | $ 912 |
Effective income tax rate | 16.00% | 9.00% | 15.00% | 17.00% |
Business Combination - Narrative (Details) - Community First $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018
USD ($)
|
Jan. 01, 2018 |
|
Business Acquisition [Line Items] | ||
Exchange ratio for Reliant Bancorp, Inc. common stock | 0.481 | |
Other assets adjustment | $ 93 | |
Accounts payable and other liabilities adjustment | $ 85 |
Recent Accounting Pronouncements (Details) - Scenario, Forecast - Accounting Standards Update 2016-02 $ in Thousands |
Jan. 01, 2020
USD ($)
|
---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Right to use asset | $ 11,455 |
Lease liability | $ 11,455 |
Reduction in Tier 1 leverage capital ratio (in basis points) | 0.0007 |
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