Not Applicable
|
(Former name, former address and former fiscal year, if changed since last report)
|
Large Accelerated Filer
|
☐
|
Accelerated Filer
|
☐
|
Non-accelerated Filer
|
☐
|
Smaller Reporting Company
|
☒
|
Emerging Growth Company
|
☐
|
Part I.
|
FINANCIAL INFORMATION
|
||
Item 1 -
|
Financial Statements (Unaudited)
|
||
2
|
|||
3
|
|||
|
|||
4
|
|||
|
|||
5
|
|||
|
|||
6
|
|||
7
|
|||
8
|
|||
9
|
|||
Item 2 -
|
38
|
||
Item 4 -
|
47
|
||
Part II.
|
OTHER INFORMATION
|
||
Item 6 -
|
48
|
September 30,
2018
|
December 31,
2017*
|
|||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
9,000
|
$
|
5,409
|
||||
Interest-earning deposits with banks
|
26,416
|
3,647
|
||||||
Cash and cash equivalents
|
35,416
|
9,056
|
||||||
Certificates of deposit with banks
|
1,498
|
1,498
|
||||||
Investment securities available for sale, at fair value (amortized cost $31,180 and $32,067)
|
29,992
|
31,112
|
||||||
Equity securities
|
749
|
-
|
||||||
Federal Home Loan Bank stock, at cost
|
1,050
|
1,341
|
||||||
Loans
|
380,746
|
348,679
|
||||||
Less: Allowance for loan and lease losses
|
(3,925
|
)
|
(3,599
|
)
|
||||
Net Loans
|
376,821
|
345,080
|
||||||
Bank-owned life insurance
|
7,344
|
7,197
|
||||||
Accrued interest receivable
|
1,210
|
1,078
|
||||||
Bank premises, equipment and software
|
6,154
|
6,466
|
||||||
Foreclosed assets
|
1,782
|
789
|
||||||
Core deposit intangible, net of accumulated amortization of $737 and $711 at September 30, 2018 and December
31, 2017, respectively
|
47
|
73
|
||||||
Other assets
|
3,108
|
2,928
|
||||||
Total Assets
|
$
|
465,171
|
$
|
406,618
|
||||
Liabilities and Stockholders’ Equity
|
||||||||
Noninterest-earning demand deposits
|
$
|
66,796
|
$
|
49,199
|
||||
Interest-earning demand deposits
|
123,586
|
115,396
|
||||||
Savings
|
23,441
|
22,066
|
||||||
Time deposits
|
172,674
|
153,992
|
||||||
Total deposits
|
386,497
|
340,653
|
||||||
Capital lease obligation
|
158
|
207
|
||||||
Federal Home Loan Bank advances
|
16,100
|
23,600
|
||||||
Long term subordinated debt
|
9,733
|
9,676
|
||||||
Accrued interest payable
|
578
|
292
|
||||||
Other liabilities
|
3,151
|
3,071
|
||||||
Total liabilities
|
416,217
|
377,499
|
||||||
Common stock warrant
|
426
|
426
|
||||||
Common stock, $2.50 par value; 10,000,000 shares authorized; 7,156,987 and 4,657,880 shares issued and
outstanding
|
17,892
|
11,645
|
||||||
Additional paid-in capital
|
25,212
|
13,008
|
||||||
Retained earnings
|
6,335
|
4,772
|
||||||
Accumulated other comprehensive loss
|
(911
|
)
|
(732
|
)
|
||||
Total stockholders’ equity
|
48,954
|
29,119
|
||||||
Total Liabilities and Stockholders’ Equity
|
$
|
465,171
|
$
|
406,618
|
Three Months Ended September 30,
|
||||||||
2018
|
2017
|
|||||||
Interest Income
|
||||||||
Interest on investment securities and cash
|
$
|
383
|
$
|
219
|
||||
Interest and fees on loans
|
5,036
|
4,215
|
||||||
Total interest income
|
5,419
|
4,434
|
||||||
Interest Expense
|
||||||||
Interest expense non-maturity deposits
|
188
|
131
|
||||||
Interest expense time deposits
|
733
|
509
|
||||||
Interest expense borrowed funds
|
58
|
60
|
||||||
Interest expense capital lease
|
3
|
4
|
||||||
Interest expense debt
|
2
|
-
|
||||||
Interest expense on subordinated debt
|
192
|
190
|
||||||
Total interest expense
|
1,176
|
894
|
||||||
Net interest income
|
4,243
|
3,540
|
||||||
Loan loss provision
|
75
|
340
|
||||||
Net interest income after loan loss provision
|
4,168
|
3,200
|
||||||
Noninterest income
|
||||||||
Overdraft fees on deposits
|
131
|
117
|
||||||
Interchange fee income, net
|
67
|
33
|
||||||
Service charges on deposits
|
18
|
16
|
||||||
Mortgage fee income
|
44
|
32
|
||||||
Customer service fees
|
14
|
13
|
||||||
ATM income
|
8
|
7
|
||||||
Bank-owned life insurance income
|
49
|
55
|
||||||
Unrealized gain on equity securities
|
35
|
-
|
||||||
Other income
|
8
|
9
|
||||||
Total noninterest income
|
374
|
282
|
||||||
Noninterest expense
|
||||||||
Salaries & benefits expense
|
1,799
|
1,762
|
||||||
Occupancy expense
|
193
|
212
|
||||||
Furniture, fixture & equipment expense
|
214
|
142
|
||||||
Data processing expense
|
198
|
201
|
||||||
Office supplies expense
|
1
|
16
|
||||||
Professional fees
|
105
|
91
|
||||||
Advertising and marketing
|
31
|
33
|
||||||
Insurance
|
83
|
77
|
||||||
Foreclosed asset expense, net
|
127
|
22
|
||||||
Loan expense
|
75
|
55
|
||||||
Stockholder expense
|
45
|
26
|
||||||
Directors fees and expenses
|
51
|
59
|
||||||
Telephone expense
|
101
|
76
|
||||||
Core deposit intangible amortization expense
|
9
|
12
|
||||||
Merger expenses
|
157
|
-
|
||||||
Other operating expense
|
138
|
177
|
||||||
Total noninterest expense
|
3,327
|
2,961
|
||||||
Pre-tax income
|
1,215
|
521
|
||||||
Income tax expense
|
300
|
170
|
||||||
Net income
|
$
|
915
|
$
|
351
|
||||
Earnings per share
|
||||||||
Basic earnings per common share
|
$
|
0.13
|
$
|
0.08
|
||||
Diluted earnings per common share
|
$
|
0.13
|
$
|
0.07
|
||||
Weighted average common shares outstanding
|
7,156,987
|
4,654,880
|
||||||
Diluted average common shares outstanding
|
7,243,875
|
4,740,660
|
2018
|
2017
|
|||||||
Interest Income
|
||||||||
Interest on investment securities and cash
|
$
|
984
|
$
|
686
|
||||
Interest on loans
|
14,460
|
12,091
|
||||||
Total interest income
|
15,444
|
12,777
|
||||||
Interest Expense
|
||||||||
Interest expense non-maturity deposits
|
500
|
311
|
||||||
Interest expense time deposits
|
2,043
|
1,515
|
||||||
Interest expense borrowed funds
|
248
|
156
|
||||||
Interest expense capital lease
|
10
|
13
|
||||||
Interest expense debt
|
16
|
-
|
||||||
Interest expense on subordinated debt
|
574
|
568
|
||||||
Total interest expense
|
3,391
|
2,563
|
||||||
Net interest income
|
12,053
|
10,214
|
||||||
Loan loss provision
|
415
|
555
|
||||||
Net interest income after loan loss provision
|
11,638
|
9,659
|
||||||
Noninterest income
|
||||||||
Overdraft fees on deposits
|
412
|
294
|
||||||
Interchange fee income, net
|
165
|
96
|
||||||
Service charges on deposits
|
49
|
41
|
||||||
Mortgage fee income
|
86
|
73
|
||||||
Customer service fees
|
43
|
40
|
||||||
ATM income
|
21
|
20
|
||||||
Bank-owned life insurance income
|
147
|
146
|
||||||
Unrealized gain on equity securities
|
123
|
-
|
||||||
Other income
|
24
|
22
|
||||||
Total noninterest income
|
1,070
|
732
|
||||||
Noninterest expense
|
||||||||
Salaries & benefits expense
|
5,496
|
5,279
|
||||||
Occupancy expense
|
607
|
636
|
||||||
Furniture, fixture & equipment expense
|
524
|
435
|
||||||
Data processing expense
|
588
|
738
|
||||||
Office supplies expense
|
42
|
59
|
||||||
Professional fees
|
328
|
333
|
||||||
Advertising and marketing
|
90
|
104
|
||||||
Insurance
|
269
|
223
|
||||||
Foreclosed asset expense, net
|
453
|
283
|
||||||
Loan expense
|
161
|
146
|
||||||
Stockholder expense
|
114
|
138
|
||||||
Directors fees and expenses
|
191
|
198
|
||||||
Telephone expense
|
241
|
222
|
||||||
Core deposit intangible amortization expense
|
26
|
35
|
||||||
Merger expenses
|
480
|
-
|
||||||
Other operating expense
|
433
|
436
|
||||||
Total noninterest expense
|
10,043
|
9,265
|
||||||
Pre-tax income
|
2,665
|
1,126
|
||||||
Income tax expense
|
659
|
368
|
||||||
Net income
|
$
|
2,006
|
$
|
758
|
||||
Earnings per share
|
||||||||
Basic earnings per common share
|
$
|
0.33
|
$
|
0.16
|
||||
Diluted earnings per common share
|
$
|
0.32
|
$
|
0.16
|
||||
Weighted average common shares outstanding
|
6,118,461
|
4,654,717
|
||||||
Diluted average common shares outstanding
|
6,211,670
|
4,732,557
|
Three Months Ended September 30,
|
||||||||
2018
|
2017
|
|||||||
Net income
|
$
|
915
|
$
|
351
|
||||
Other comprehensive loss:
|
||||||||
Unrealized loss on investment securities:
|
||||||||
Unrealized holding losses arising during period
|
(208
|
)
|
(256
|
)
|
||||
Deferred income tax benefit
|
48
|
92
|
||||||
Total other comprehensive loss
|
(160
|
)
|
(164
|
)
|
||||
Total comprehensive income
|
$
|
755
|
$
|
187
|
Nine Months Ended September 30,
|
||||||||
2018
|
2017
|
|||||||
Net income
|
$
|
2,006
|
$
|
758
|
||||
Other comprehensive loss:
|
||||||||
Unrealized loss on investment securities:
|
||||||||
Unrealized holding losses arising during period
|
(812
|
)
|
(78
|
)
|
||||
Deferred income tax benefit
|
190
|
26
|
||||||
Total other comprehensive loss
|
(622
|
)
|
(52
|
)
|
||||
Total comprehensive income
|
$
|
1,384
|
$
|
706
|
2018 Shares
Outstanding
|
September 30,
2018
|
2017 Shares
Outstanding
|
September 30,
2017
|
|||||||||||||
Common stock warrant
|
$
|
426
|
$
|
426
|
||||||||||||
Common stock, $2.50 par value
|
||||||||||||||||
Balance, beginning of year
|
4,657,880
|
$
|
11,645
|
4,650,808
|
$
|
11,627
|
||||||||||
Exercise of stock options
|
3,107
|
7
|
-
|
-
|
||||||||||||
Restricted stock vesting
|
-
|
-
|
3,334
|
8
|
||||||||||||
Sale of common stock
|
2,496,000
|
6,240
|
738
|
2
|
||||||||||||
Balance, end of period
|
7,156,987
|
$
|
17,892
|
4,654,880
|
$
|
11,637
|
||||||||||
Additional paid-in capital
|
||||||||||||||||
Balance, beginning of year
|
$
|
13,008
|
$
|
12,988
|
||||||||||||
Stock-based compensation
|
1
|
23
|
||||||||||||||
Exercise of stock options
|
8
|
1
|
||||||||||||||
Restricted stock vesting
|
-
|
(8
|
)
|
|||||||||||||
Sale of common stock
|
12,195
|
-
|
||||||||||||||
Balance, end of period
|
$
|
25,212
|
$
|
13,004
|
||||||||||||
Retained earnings
|
||||||||||||||||
Balance, beginning of year
|
$
|
4,772
|
$
|
4,241
|
||||||||||||
Net income
|
2,006
|
758
|
||||||||||||||
Reclassification of loss on equity securities
|
(443
|
)
|
-
|
|||||||||||||
Balance, end of period
|
$
|
6,335
|
$
|
4,999
|
||||||||||||
Accumulated other comprehensive loss
|
||||||||||||||||
Balance, beginning of year
|
$
|
(732
|
)
|
$
|
(249
|
)
|
||||||||||
Reclassification of loss on equity securities
|
443
|
-
|
||||||||||||||
Other comprehensive loss
|
(622
|
)
|
(52
|
)
|
||||||||||||
Balance, end of period
|
$
|
(911
|
)
|
$
|
(301
|
)
|
||||||||||
Total stockholders’ equity
|
$
|
48,954
|
$
|
29,765
|
Nine Months Ended September 30,
|
||||||||
2018
|
2017
|
|||||||
Cash flows from operating activities
|
||||||||
Net income
|
$
|
2,006
|
$
|
758
|
||||
Adjustments to reconcile net income to cash and cash equivalents provided by operating activities:
|
||||||||
Provision for loan losses
|
415
|
555
|
||||||
Depreciation and amortization of bank premises, equipment and software
|
346
|
327
|
||||||
Accretion of loan fair value adjustments related to acquisition
|
(5
|
)
|
(6
|
)
|
||||
Net amortization of bond premiums/discounts
|
104
|
112
|
||||||
Amortization of long term subordinated debt issuance costs
|
57
|
53
|
||||||
Unrealized gain on equity securities
|
(123
|
)
|
-
|
|||||
Amortization of core deposit intangible
|
26
|
35
|
||||||
Stock compensation expense
|
1
|
23
|
||||||
Increase in value of life insurance contracts
|
(147
|
)
|
(146
|
)
|
||||
Net losses and impairment write-downs on foreclosed assets
|
295
|
217
|
||||||
Deferred tax provision
|
27
|
685
|
||||||
Increase in other assets
|
(17
|
)
|
(56
|
)
|
||||
Increase in accrued interest receivable
|
(132
|
)
|
(30
|
)
|
||||
Increase in accrued interest payable
|
286
|
163
|
||||||
Increase (decrease) in other liabilities
|
80
|
(419
|
)
|
|||||
Net cash and cash equivalents provided by operating activities
|
3,219
|
2,271
|
||||||
Cash flows from investing activities
|
||||||||
Net increase in loans
|
(33,769
|
)
|
(32,262
|
)
|
||||
Proceeds from sale of foreclosed assets
|
330
|
523
|
||||||
Net purchases of bank premises, equipment and software
|
(34
|
)
|
(472
|
)
|
||||
Purchase of Bank owned life insurance
|
-
|
(5,500
|
)
|
|||||
Purchase of available-for-sale securities
|
(3,034
|
)
|
(4,832
|
)
|
||||
Proceeds from maturities, calls and pay-downs of available-for-sale securities
|
2,612
|
3,371
|
||||||
Redemptions (purchases) of Federal Home Loan Bank stock
|
291
|
(249
|
)
|
|||||
Net cash and cash equivalents used in investing activities
|
(33,604
|
)
|
(39,421
|
)
|
||||
Cash flows from financing activities
|
||||||||
Net increase in deposits
|
45,844
|
18,923
|
||||||
Increase (decrease) in Federal Home Loan Bank advances
|
(7,500
|
)
|
6,000
|
|||||
Payment of capital lease obligation
|
(49
|
)
|
(46
|
)
|
||||
Issuance of long term debt
|
3,000
|
-
|
||||||
Repayment of long term debt
|
(3,000
|
)
|
-
|
|||||
Net proceeds from issuance of common stock
|
18,450
|
3
|
||||||
Net cash and cash equivalents provided by financing activities
|
56,745
|
24,880
|
||||||
Net increase (decrease) in cash and cash equivalents
|
26,360
|
(12,270
|
)
|
|||||
Cash and cash equivalents, beginning
|
9,056
|
26,149
|
||||||
Cash and cash equivalents, ending
|
$
|
35,416
|
$
|
13,879
|
||||
Supplemental disclosure of cash flow information
|
||||||||
Cash paid during the period for taxes
|
$
|
631
|
$
|
15
|
||||
Cash paid during the period for interest
|
$
|
3,105
|
$
|
2,400
|
||||
Noncash financing and investing activities
|
||||||||
Unrealized loss on investment securities available-for-sale, net of taxes
|
$
|
(622
|
)
|
$
|
(52
|
)
|
||
Transfer of loans to foreclosed assets
|
$
|
(1,618
|
)
|
$
|
(196
|
)
|
(1)
|
Presentation of Financial Statements
|
(2)
|
Recent Accounting Pronouncements
|
(3)
|
Earnings Per Share
|
Dollars in thousands, except per share data
|
Net Income
Available to
Common
Shareholders
|
Weighted
Average
Common
Shares
|
Per Share
Amount
|
|||||||||
Three months ended September 30, 2018
|
||||||||||||
Basic earnings per common share
|
$
|
915
|
7,156,987
|
$
|
0.13
|
|||||||
Effect of dilutive stock options
|
72,609
|
|||||||||||
Effect of dilutive stock warrants
|
14,279
|
|||||||||||
Diluted earnings per common share
|
$
|
915
|
7,243,875
|
$
|
0.13
|
|||||||
Three months ended September 30, 2017
|
||||||||||||
Basic earnings per common share
|
$
|
351
|
4,654,880
|
$
|
0.08
|
|||||||
Effect of dilutive stock options
|
73,545
|
|||||||||||
Effect of dilutive stock warrants
|
12,235
|
|||||||||||
Diluted earnings per common share
|
$
|
351
|
4,740,660
|
$
|
0.07
|
Net Income
Available to
Common
Shareholders
|
Weighted
Average
Common
Shares
|
Per Share
Amount
|
||||||||||
Dollars in thousands, except per share data
|
||||||||||||
Nine months ended September 30, 2018
|
||||||||||||
Basic earnings per common share
|
$
|
2,006
|
6,118,461
|
$
|
0.33
|
|||||||
Effect of dilutive stock options
|
75,598
|
|||||||||||
Effect of dilutive stock warrants
|
17,611
|
|||||||||||
Diluted earnings per common share
|
$
|
2,006
|
6,211,670
|
$
|
0.32
|
|||||||
Nine months ended September 30, 2017
|
||||||||||||
Basic earnings per common share
|
$
|
758
|
4,654,717
|
$
|
0.16
|
|||||||
Effect of dilutive stock options
|
69,168
|
|||||||||||
Effect of dilutive stock warrants
|
8,672
|
|||||||||||
Diluted earnings per common share
|
$
|
758
|
4,732,557
|
$
|
0.16
|
(4)
|
Fair Value Measurements
|
Fair Value Measurements at September 30, 2018 using
|
||||||||||||||||||||
Quoted Prices in
Active Markets for
Identical Assets
|
Significant
Other
Observable
Inputs
|
Significant
Unobservable
Inputs
|
||||||||||||||||||
Dollars in thousands
|
Carrying
Value
|
Level 1
|
Level 2
|
Level 3
|
Total Fair
Value
|
|||||||||||||||
ASSETS
|
||||||||||||||||||||
Cash and due from banks
|
$
|
9,000
|
$
|
9,000
|
$
|
-
|
$
|
-
|
$
|
9,000
|
||||||||||
Interest-earning deposits with banks
|
26,416
|
26,416
|
-
|
-
|
26,416
|
|||||||||||||||
Certificates of deposit with banks
|
1,498
|
-
|
1,474
|
-
|
1,474
|
|||||||||||||||
Federal Home Loan Bank stock
|
1,050
|
-
|
1,050
|
-
|
1,050
|
|||||||||||||||
Investment securities available-for-sale
|
29,992
|
-
|
29,992
|
-
|
29,992
|
|||||||||||||||
Equity securities
|
749
|
749
|
-
|
-
|
749
|
|||||||||||||||
Net loans
|
376,821
|
-
|
-
|
365,056
|
365,056
|
|||||||||||||||
Accrued interest receivable
|
1,210
|
-
|
1,210
|
-
|
1,210
|
|||||||||||||||
LIABILITIES
|
||||||||||||||||||||
Deposits
|
$
|
386,497
|
$
|
-
|
$
|
375,220
|
$
|
-
|
$
|
375,220
|
||||||||||
Capital lease obligation
|
158
|
-
|
158
|
-
|
158
|
|||||||||||||||
Federal Home Loan Bank advances
|
16,100
|
-
|
16,008
|
-
|
16,008
|
|||||||||||||||
Long term subordinated debt
|
9,733
|
-
|
9,716
|
-
|
9,716
|
|||||||||||||||
Accrued interest payable
|
578
|
-
|
578
|
-
|
578
|
Fair Value Measurements at December 31, 2017 using
|
||||||||||||||||||||
|
Quoted Prices in
Active Markets for
Identical Assets
|
Significant
Other
Observable
Inputs
|
Significant
Unobservable
Inputs
|
|||||||||||||||||
Dollars in thousands
|
Carrying
Value
|
Level 1
|
Level 2
|
Level 3
|
Total Fair
Value
|
|||||||||||||||
ASSETS
|
||||||||||||||||||||
Cash and due from banks
|
$
|
5,409
|
$
|
5,409
|
$
|
-
|
$
|
-
|
$
|
5,409
|
||||||||||
Interest-earning deposits with banks
|
3,647
|
3,647
|
-
|
-
|
3,647
|
|||||||||||||||
Certificates of deposit with banks
|
1,498
|
-
|
1,519
|
-
|
1,519
|
|||||||||||||||
Federal Home Loan Bank stock
|
1,341
|
-
|
1,341
|
-
|
1,341
|
|||||||||||||||
Investment securities available-for-sale
|
31,112
|
626
|
30,486
|
-
|
31,112
|
|||||||||||||||
Net loans
|
345,080
|
-
|
-
|
345,370
|
345,370
|
|||||||||||||||
Accrued interest receivable
|
1,078
|
-
|
1,078
|
-
|
1,078
|
|||||||||||||||
LIABILITIES
|
||||||||||||||||||||
Deposits
|
$
|
340,653
|
$
|
-
|
$
|
330,672
|
$
|
-
|
$
|
330,672
|
||||||||||
Capital lease obligation
|
207
|
-
|
207
|
-
|
207
|
|||||||||||||||
Federal Home Loan Bank advances
|
23,600
|
-
|
23,495
|
-
|
23,495
|
|||||||||||||||
Long term subordinated debt
|
9,676
|
-
|
9,619
|
-
|
9,619
|
|||||||||||||||
Accrued interest payable
|
292
|
-
|
292
|
-
|
292
|
Level 1 |
Valuation based upon quoted prices for identical instruments traded in active markets.
|
Level 2 |
Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and
model-based valuation techniques for which all significant assumptions are observable in the market.
|
Level 3 |
Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect
estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.
|
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
Dollars in thousands
|
||||||||||||||||
September 30, 2018
|
||||||||||||||||
Available-for-Sale Securities
|
||||||||||||||||
U.S. Government and federal agency
|
$
|
10,612
|
$
|
-
|
$
|
10,612
|
$
|
-
|
||||||||
Mortgage-backed securities*
|
19,095
|
-
|
19,095
|
-
|
||||||||||||
Municipal securities
|
285
|
-
|
285
|
-
|
||||||||||||
Total available-for-sale securities
|
|
29,992
|
|
-
|
|
29,992
|
|
-
|
||||||||
Equity securities
|
749
|
749
|
-
|
-
|
||||||||||||
Total
|
$
|
30,741
|
$
|
749
|
$
|
29,992
|
$
|
-
|
||||||||
December 31, 2017
|
||||||||||||||||
U.S. Government and federal agency
|
$
|
11,276
|
$
|
-
|
$
|
11,276
|
$
|
-
|
||||||||
Mortgage-backed securities*
|
18,915
|
-
|
18,915
|
-
|
||||||||||||
Municipal securities
|
295
|
-
|
295
|
-
|
||||||||||||
Equity securities
|
626
|
626
|
-
|
-
|
||||||||||||
Total
|
$
|
31,112
|
$
|
626
|
$
|
30,486
|
$
|
-
|
September 30, 2018
|
September 30, 2017
|
|||||||||||||||
Dollars in thousands
|
Level 2
|
Level 3
|
Level 2
|
Level 3
|
||||||||||||
Carrying value of impaired loans before allocations
|
$
|
-
|
$
|
1,354
|
-
|
$
|
1,812
|
|||||||||
Specific valuation allowance allocations
|
-
|
(233
|
)
|
-
|
(251
|
)
|
||||||||||
Carrying value of impaired loans after allocations
|
$
|
-
|
$
|
1,121
|
-
|
$
|
1,561
|
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
Dollars in thousands
|
||||||||||||||||
September 30, 2018
|
||||||||||||||||
Foreclosed assets
|
$
|
1,317
|
$
|
-
|
$
|
-
|
$
|
1,317
|
||||||||
Impaired loans
|
1,121
|
-
|
-
|
1,121
|
||||||||||||
Total
|
$
|
2,438
|
$
|
-
|
$
|
-
|
$
|
2,438
|
||||||||
December 31, 2017
|
||||||||||||||||
Foreclosed assets
|
$
|
324
|
$
|
-
|
$
|
-
|
$
|
324
|
||||||||
Impaired loans
|
1,621
|
-
|
-
|
1,621
|
||||||||||||
Total
|
$
|
1,945
|
$
|
-
|
$
|
-
|
$
|
1,945
|
Fair
Value
|
Valuation
Technique
|
Unobservable
Input
|
Range
|
Weighted
Average
|
|||||||||||
Dollars in thousands
|
|||||||||||||||
September 30, 2018
|
|||||||||||||||
Impaired loans
|
$
|
1,121
|
Discounted cash flows
|
Discount rate
|
4.75% - 8.50
|
%
|
7.18
|
%
|
|||||||
Foreclosed assets
|
1,317
|
Discounted appraisals
|
Appraisal adjustments
|
6.00% -8.00
|
%
|
7.12
|
%
|
||||||||
December 31, 2017
|
|||||||||||||||
Impaired loans
|
$
|
101
|
Discounted appraisals
|
Appraisal adjustments
|
20.00 – 25.00
|
%
|
23.33
|
%
|
|||||||
1,520
|
Discounted cash flows
|
Discount rate
|
4.75 – 8.50
|
%
|
7.06
|
%
|
|||||||||
Foreclosed assets
|
324
|
Discounted appraisals
|
Appraisal adjustments
|
15.00
|
%
|
15.00
|
%
|
(5)
|
Investment Securities
|
In thousands
|
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Fair
Value
|
||||||||||||
September 30, 2018
|
||||||||||||||||
U.S. Government and federal agency
|
$
|
11,076
|
$
|
4
|
$
|
(468
|
)
|
$
|
10,612
|
|||||||
Mortgage-backed securities *
|
19,811
|
15
|
(731
|
)
|
19,095
|
|||||||||||
Municipal securities
|
293
|
-
|
(8
|
)
|
285
|
|||||||||||
$
|
31,180
|
$
|
19
|
$
|
(1,207
|
)
|
$
|
29,992
|
||||||||
December 31, 2017
|
||||||||||||||||
U.S. Government and federal agency
|
$
|
11,424
|
$
|
11
|
$
|
(159
|
)
|
$
|
11,276
|
|||||||
Mortgage-backed securities *
|
19,142
|
61
|
(288
|
)
|
18,915
|
|||||||||||
Municipal securities
|
297
|
-
|
(2
|
)
|
295
|
|||||||||||
Equity securities
|
1,204
|
-
|
(578
|
)
|
626
|
|||||||||||
$
|
32,067
|
$
|
72
|
$
|
(1,027
|
)
|
$
|
31,112
|
Amortized
Cost
|
Fair Value
|
|||||||
Dollars in thousands
|
||||||||
Due within one year
|
$
|
-
|
$
|
-
|
||||
Due after one but within five years
|
8,351
|
8,043
|
||||||
Due after five but within ten years
|
6,740
|
6,439
|
||||||
Due after ten years
|
16,089
|
15,510
|
||||||
$
|
31,180
|
$
|
29,992
|
Temporarily Impaired Securities in Available-for-Sale Portfolio
|
||||||||||||||||||||||||
Less than 12 Months
|
Greater than 12 Months
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
Dollars in thousands
|
||||||||||||||||||||||||
September 30, 2018
|
||||||||||||||||||||||||
Available for sale securities
|
||||||||||||||||||||||||
U.S. Government and federal agency
|
$
|
1,917
|
$
|
(73
|
)
|
$
|
8,554
|
$
|
(395
|
)
|
$
|
10,471
|
$
|
(468
|
)
|
|||||||||
Mortgage-backed securities *
|
5,567
|
(89
|
)
|
11,892
|
(642
|
)
|
17,459
|
(731
|
)
|
|||||||||||||||
Municipal Securities
|
-
|
-
|
285
|
(8
|
)
|
285
|
(8
|
)
|
||||||||||||||||
Total temporarily impaired securities
|
$
|
7,484
|
$
|
(162
|
)
|
$
|
20,731
|
$
|
(1,045
|
)
|
$
|
28,215
|
$
|
(1,207
|
)
|
|||||||||
December 31, 2017
|
||||||||||||||||||||||||
U.S. Government and federal agency
|
$
|
7,101
|
$
|
(88
|
)
|
$
|
2,008
|
$
|
(71
|
)
|
$
|
9,109
|
$
|
(159
|
)
|
|||||||||
Mortgage-backed securities *
|
5,472
|
(38
|
)
|
10,560
|
(250
|
)
|
16,032
|
(288
|
)
|
|||||||||||||||
Municipal securities
|
295
|
(2
|
)
|
-
|
-
|
295
|
(2
|
)
|
||||||||||||||||
Equity securities
|
626
|
(577
|
)
|
-
|
(1
|
)
|
626
|
(578
|
)
|
|||||||||||||||
Total temporarily impaired securities
|
$
|
13,494
|
$
|
(705
|
)
|
$
|
12,568
|
$
|
(322
|
)
|
$
|
26,062
|
$
|
(1,027
|
)
|
(6)
|
Loans
|
September 30, 2018
|
December 31, 2017
|
|||||||||||||||
Dollars in thousands
|
Amount
|
Percent of
Total
|
Amount
|
Percent of
Total
|
||||||||||||
Commercial real estate
|
||||||||||||||||
Residential ADC
|
$
|
4,610
|
1.21
|
%
|
$
|
7,242
|
2.08
|
%
|
||||||||
Commercial ADC
|
23,293
|
6.12
|
%
|
24,364
|
6.99
|
%
|
||||||||||
Farmland
|
5,322
|
1.40
|
%
|
5,392
|
1.55
|
%
|
||||||||||
Multifamily
|
16,099
|
4.23
|
%
|
11,967
|
3.43
|
%
|
||||||||||
Owner occupied
|
97,982
|
25.73
|
%
|
84,808
|
24.32
|
%
|
||||||||||
Non-owner occupied
|
94,769
|
24.89
|
%
|
79,549
|
22.81
|
%
|
||||||||||
Total commercial real estate
|
242,075
|
63.58
|
%
|
213,322
|
61.18
|
%
|
||||||||||
Commercial
|
||||||||||||||||
Commercial and industrial
|
46,767
|
12.28
|
%
|
47,032
|
13.49
|
%
|
||||||||||
Agriculture
|
296
|
0.08
|
%
|
415
|
0.12
|
%
|
||||||||||
Other
|
1,603
|
0.42
|
%
|
1,420
|
0.40
|
%
|
||||||||||
Total commercial
|
48,666
|
12.78
|
%
|
48,867
|
14.01
|
%
|
||||||||||
Residential mortgage
|
||||||||||||||||
First lien, closed-end
|
51,240
|
13.46
|
%
|
47,936
|
13.75
|
%
|
||||||||||
Junior lien, closed-end
|
703
|
0.18
|
%
|
1,123
|
0.32
|
%
|
||||||||||
Total residential mortgage
|
51,943
|
13.64
|
%
|
49,059
|
14.07
|
%
|
||||||||||
Home equity lines
|
34,110
|
8.96
|
%
|
33,672
|
9.66
|
%
|
||||||||||
Consumer – other
|
3,952
|
1.04
|
%
|
3,759
|
1.08
|
%
|
||||||||||
Total loans
|
$
|
380,746
|
100.00
|
%
|
$
|
348,679
|
100.00
|
%
|
September 30,
2018
|
December 31,
2017
|
|||||||
Dollars in thousands
|
||||||||
Commercial real estate
|
||||||||
Commercial ADC
|
$
|
3
|
$
|
5
|
||||
Owner occupied
|
944
|
2,031
|
||||||
Non-owner occupied
|
5
|
28
|
||||||
Total commercial real estate
|
952
|
2,064
|
||||||
Commercial
|
||||||||
Commercial and industrial
|
-
|
25
|
||||||
Total commercial
|
-
|
25
|
||||||
Residential mortgage:
|
||||||||
First lien, closed end
|
62
|
86
|
||||||
Junior lien, closed end
|
5
|
455
|
||||||
Total residential mortgage
|
67
|
541
|
||||||
Home equity lines
|
29
|
34
|
||||||
Consumer – other
|
9
|
-
|
||||||
Total non-accrual loans
|
$
|
1,057
|
$
|
2,664
|
In thousands
|
Loans
30-89
Days
Past Due
|
Loans
90 or more
Days
Past Due
|
Total Past
Due Loans |
Current
Loans |
Total
Loans |
Accruing
Loans 90
or More
Days
Past Due
|
||||||||||||||||||
September 30, 2018
|
||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Residential ADC
|
$
|
-
|
$
|
-
|
$
|
-
|
|
$
|
4,610
|
$
|
4,610
|
|
$
|
-
|
||||||||||
Commercial ADC
|
41
|
-
|
41
|
23,252
|
23,293
|
-
|
||||||||||||||||||
Farmland
|
-
|
-
|
-
|
5,322
|
5,322
|
-
|
||||||||||||||||||
Multifamily
|
-
|
-
|
-
|
16,099
|
16,099
|
-
|
||||||||||||||||||
Owner occupied
|
329
|
938
|
1,267
|
96,715
|
97,982
|
-
|
||||||||||||||||||
Non-owner occupied
|
5
|
-
|
5
|
94,764
|
94,769
|
-
|
||||||||||||||||||
Total commercial real estate
|
375
|
938
|
1,313
|
240,762
|
242,075
|
-
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial and industrial
|
128
|
-
|
128
|
46,639
|
46,767
|
-
|
||||||||||||||||||
Agriculture
|
-
|
-
|
-
|
296
|
296
|
-
|
||||||||||||||||||
Other
|
-
|
-
|
-
|
1,603
|
1,603
|
-
|
||||||||||||||||||
Total commercial
|
128
|
-
|
128
|
48,538
|
48,666
|
-
|
||||||||||||||||||
Residential mortgage:
|
||||||||||||||||||||||||
First lien, closed end
|
161
|
37
|
198
|
51,042
|
51,240
|
-
|
||||||||||||||||||
Junior lien, closed-end
|
-
|
-
|
-
|
703
|
703
|
-
|
||||||||||||||||||
Total residential mortgage
|
161
|
37
|
198
|
51,745
|
51,943
|
-
|
||||||||||||||||||
Home equity lines
|
86
|
86
|
34,024
|
34,110
|
-
|
|||||||||||||||||||
Consumer – other
|
10
|
7
|
17
|
3,935
|
3,952
|
-
|
||||||||||||||||||
Total loans
|
$
|
760
|
$
|
982
|
$
|
1,742
|
|
$
|
379,004
|
$
|
380,746
|
|
$
|
-
|
In thousands
|
Loans
30-89
Days
Past Due
|
Loans
90 or more
Days
Past Due
|
Total Past
Due Loans |
Current
Loans |
Total
Loans |
Accruing
Loans 90
or More
Days
Past Due
|
||||||||||||||||||
December 31, 2017
|
||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Residential ADC
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
7,242
|
$
|
7,242
|
$
|
-
|
||||||||||||
Commercial ADC
|
-
|
-
|
-
|
24,364
|
24,364
|
-
|
||||||||||||||||||
Farmland
|
-
|
-
|
-
|
5,392
|
5,392
|
-
|
||||||||||||||||||
Multifamily
|
-
|
-
|
-
|
11,967
|
11,967
|
-
|
||||||||||||||||||
Owner occupied
|
254
|
2,018
|
2,272
|
82,536
|
84,808
|
-
|
||||||||||||||||||
Non-owner occupied
|
144
|
-
|
144
|
79,405
|
79,549
|
-
|
||||||||||||||||||
Total commercial real estate
|
398
|
2,018
|
2,416
|
210,906
|
213,322
|
-
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial and industrial
|
-
|
25
|
25
|
47,007
|
47,032
|
-
|
||||||||||||||||||
Agriculture
|
-
|
-
|
-
|
415
|
415
|
-
|
||||||||||||||||||
Other
|
-
|
-
|
-
|
1,420
|
1,420
|
-
|
||||||||||||||||||
Total commercial
|
-
|
25
|
25
|
48,842
|
48,867
|
-
|
||||||||||||||||||
Residential mortgage:
|
||||||||||||||||||||||||
First lien, closed end
|
50
|
135
|
185
|
47,751
|
47,936
|
79
|
||||||||||||||||||
Junior lien, closed-end
|
-
|
449
|
449
|
674
|
1,123
|
-
|
||||||||||||||||||
Total residential mortgage
|
50
|
584
|
634
|
48,425
|
49,059
|
79
|
||||||||||||||||||
Home equity lines
|
200
|
3
|
203
|
33,469
|
33,672
|
3
|
||||||||||||||||||
Consumer – other
|
10
|
-
|
10
|
3,749
|
3,759
|
-
|
||||||||||||||||||
Total loans
|
$
|
658
|
$
|
2,630
|
$
|
3,288
|
$
|
345,391
|
$
|
348,679
|
$
|
82
|
September 30, 2018
|
||||||||||||||||
In thousands
|
Unpaid
Contractual
Principal
Balance
|
Recorded
Investment
With No
Allowance
|
Recorded
Investment
With
Allowance
|
Related
Allowance
|
||||||||||||
Commercial real estate
|
||||||||||||||||
Commercial ADC
|
$
|
4
|
$
|
4
|
$
|
-
|
$
|
-
|
||||||||
Owner occupied
|
2,441
|
2,441
|
-
|
-
|
||||||||||||
Non-owner occupied
|
5
|
5
|
-
|
-
|
||||||||||||
Total commercial real estate
|
2,450
|
2,450
|
-
|
-
|
||||||||||||
Commercial
|
||||||||||||||||
Commercial and industrial
|
648
|
278
|
370
|
103
|
||||||||||||
Residential mortgage
|
||||||||||||||||
First lien, closed-end
|
894
|
62
|
773
|
47
|
||||||||||||
Junior lien, closed- end
|
425
|
215
|
210
|
82
|
||||||||||||
Total residential mortgage
|
1,319
|
277
|
983
|
129
|
||||||||||||
Home equity lines
|
132
|
87
|
-
|
-
|
||||||||||||
Consumer – other
|
8
|
7
|
1
|
1
|
||||||||||||
Total loans
|
$
|
4,557
|
$
|
3,099
|
$
|
1,354
|
$
|
233
|
December 31, 2017
|
||||||||||||||||
In thousands
|
Unpaid
Contractual
Principal
Balance
|
Recorded
Investment
With No
Allowance
|
Recorded
Investment
With
Allowance
|
Related
Allowance
|
||||||||||||
Commercial real estate
|
||||||||||||||||
Commercial ADC
|
$
|
4
|
$
|
4
|
$
|
-
|
$
|
-
|
||||||||
Owner occupied
|
3,721
|
3,591
|
-
|
-
|
||||||||||||
Non-owner occupied
|
28
|
28
|
-
|
-
|
||||||||||||
Total commercial real estate
|
3,753
|
3,623
|
-
|
-
|
||||||||||||
Commercial
|
||||||||||||||||
Commercial and industrial
|
766
|
25
|
741
|
144
|
||||||||||||
Residential mortgage
|
||||||||||||||||
First lien, closed-end
|
1,040
|
165
|
811
|
24
|
||||||||||||
Junior lien, closed- end
|
884
|
670
|
215
|
79
|
||||||||||||
Total residential mortgage
|
1,924
|
835
|
1,026
|
103
|
||||||||||||
Home equity lines
|
151
|
106
|
-
|
-
|
||||||||||||
Consumer – other
|
1
|
-
|
1
|
1
|
||||||||||||
Total loans
|
$
|
6,595
|
$
|
4,589
|
$
|
1,768
|
$
|
248
|
3 months ended
September 30, 2018
|
3 months ended
September 30, 2017
|
|||||||||||||||
In thousands
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||
Commercial real estate
|
||||||||||||||||
Commercial ADC
|
$
|
1
|
$
|
-
|
$
|
746
|
$
|
-
|
||||||||
Farmland
|
-
|
-
|
30
|
-
|
||||||||||||
Multifamily
|
-
|
147
|
-
|
|||||||||||||
Owner occupied
|
619
|
20
|
3,482
|
40
|
||||||||||||
Non-owner occupied
|
1
|
-
|
222
|
-
|
||||||||||||
Total commercial real estate
|
621
|
20
|
4,627
|
40
|
||||||||||||
Commercial
|
||||||||||||||||
Commercial and industrial
|
171
|
11
|
1,005
|
13
|
||||||||||||
Residential mortgage
|
||||||||||||||||
First lien, closed-end
|
216
|
16
|
1,461
|
13
|
||||||||||||
Junior lien, closed- end
|
107
|
5
|
890
|
3
|
||||||||||||
Total residential mortgage
|
323
|
21
|
2,351
|
16
|
||||||||||||
Home equity lines
|
22
|
1
|
119
|
1
|
||||||||||||
Consumer – other
|
1
|
-
|
-
|
-
|
||||||||||||
Total loans
|
$
|
1,138
|
$
|
53
|
$
|
8,102
|
$
|
70
|
9 months ended
September 30, 2018
|
9 months ended
September 30, 2017
|
|||||||||||||||
In thousands
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||
Commercial real estate
|
||||||||||||||||
Commercial ADC
|
$
|
7
|
$
|
-
|
$
|
1,061
|
$
|
-
|
||||||||
Farmland
|
-
|
-
|
31
|
-
|
||||||||||||
Multifamily
|
57
|
-
|
124
|
-
|
||||||||||||
Owner occupied
|
2,658
|
10
|
2,284
|
94
|
||||||||||||
Non-owner occupied
|
12
|
-
|
91
|
-
|
||||||||||||
Total commercial real estate
|
2,734
|
10
|
3,591
|
94
|
||||||||||||
Commercial
|
||||||||||||||||
Commercial and industrial
|
711
|
18
|
1,271
|
45
|
||||||||||||
Residential mortgage
|
||||||||||||||||
First lien, closed-end
|
892
|
96
|
1,196
|
44
|
||||||||||||
Junior lien, closed- end
|
519
|
16
|
336
|
9
|
||||||||||||
Total residential mortgage
|
1,411
|
112
|
1,532
|
53
|
||||||||||||
Home equity lines
|
96
|
2
|
111
|
5
|
||||||||||||
Consumer – other
|
6
|
17
|
1
|
-
|
||||||||||||
Total loans
|
$
|
4,958
|
$
|
159
|
$
|
6,506
|
$
|
197
|
Three months ended September 30, 2018
|
Nine months ended September 30, 2018
|
|||||||||||||||||||||||
Number of
loans
|
Unpaid
Principal
Pre-Modification
|
Post-Modification
Outstanding
Recorded
Investment
|
Number of
loans
|
Unpaid
Principal
Pre-Modification
|
Post Modification
Outstanding
Recorded
Investment
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
Extended Payment Terms
|
||||||||||||||||||||||||
Consumer - other
|
-
|
$
|
-
|
$
|
-
|
1
|
$
|
1
|
$
|
1
|
||||||||||||||
Total
|
-
|
$
|
-
|
$
|
-
|
1
|
$
|
1
|
$
|
1
|
||||||||||||||
Grand Total
|
-
|
$
|
-
|
$
|
-
|
1
|
$
|
1
|
$
|
1
|
Three months ended September 30, 2017
|
Nine months ended September 30, 2017
|
|||||||||||||||||||||||
Number of
loans
|
Unpaid
Principal
Pre-Modification
|
Post-Modification
Outstanding
Recorded
Investment
|
Number of
loans
|
Unpaid
Principal
Pre-Modification
|
Post Modification
Outstanding
Recorded
Investment
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
Forgiveness of Principal Residential Mortgage:
|
||||||||||||||||||||||||
Junior lien, closed end
|
-
|
$
|
-
|
$
|
-
|
2
|
$
|
636
|
$
|
433
|
||||||||||||||
Total residential mortgage
|
-
|
-
|
-
|
2
|
636
|
433
|
||||||||||||||||||
Total
|
-
|
$
|
-
|
$
|
-
|
2
|
$
|
636
|
$
|
433
|
||||||||||||||
Grand Total
|
-
|
$
|
-
|
$
|
-
|
2
|
$
|
636
|
$
|
433
|
Three months ended
September 30, 2017
|
Three months ended
September 30, 2017
|
|||||||||||||||
Number of
loans
|
Recorded
Investment
|
Number of
loans
|
Recorded
Investment
|
|||||||||||||
Other
|
||||||||||||||||
Commercial:
|
||||||||||||||||
Commercial and industrial
|
-
|
$
|
-
|
1
|
$
|
136
|
||||||||||
Total commercial
|
- | $ |
- |
1
|
$ |
136
|
||||||||||
Grand Total
|
-
|
$
|
-
|
1
|
$
|
136
|
Paid in full
|
Paying as restructured
|
Converted to non-accrual
|
Foreclosure/Default
|
|||||||||||||||||||||||||||||
Number of
loans
|
Recorded
Investment
|
Number of
loans
|
Recorded
Investment
|
Number of
loans
|
Recorded
Investment
|
Number of
loans
|
Recorded
Investment
|
|||||||||||||||||||||||||
September 30, 2018
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
Extended payment terms
|
-
|
$
|
- |
1
|
$
|
1 |
-
|
$
|
-
|
-
|
$
|
-
|
||||||||||||||||||||
Forgiveness of principal
|
-
|
- | - |
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||
Total
|
-
|
$
|
-
|
1 |
$
|
1
|
-
|
$
|
-
|
-
|
$ |
-
|
Paid in full
|
Paying as restructured
|
Converted to non-accrual
|
Foreclosure/Default
|
|||||||||||||||||||||||||||||
Number of
loans
|
Recorded
Investment
|
Number of
loans
|
Recorded
Investment
|
Number of
loans
|
Recorded
Investment
|
Number of
loans
|
Recorded
Investment
|
|||||||||||||||||||||||||
September 30, 2017
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
Forgiveness of principal
|
-
|
$
|
-
|
2
|
$
|
433
|
-
|
$
|
-
|
-
|
$
|
-
|
||||||||||||||||||||
Other
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
136
|
||||||||||||||||||||||||
Total
|
-
|
$ |
-
|
2 | $ | 433 |
-
|
$
|
-
|
1
|
$
|
136
|
· |
Loans with one or more major exceptions with no mitigating factors.
|
· |
Extending loans that are currently performing satisfactorily but with potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the
Company’s position at some future date. Potential weaknesses are the result of deviations from prudent lending practice.
|
· |
Loans where adverse economic conditions that develop subsequent to the loan origination that do not jeopardize liquidation of the debt but do substantially increase the
level of risk may also warrant this rating.
|
September 30, 2018
|
||||||||||||||||||||
Dollars in thousands
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Loss
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Residential ADC
|
$
|
4,610
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Commercial ADC
|
23,047
|
243
|
3
|
-
|
-
|
|||||||||||||||
Farmland
|
5,322
|
-
|
-
|
-
|
-
|
|||||||||||||||
Multifamily
|
16,099
|
-
|
-
|
-
|
-
|
|||||||||||||||
Owner occupied
|
95,916
|
984
|
1,082
|
-
|
-
|
|||||||||||||||
Non-owner occupied
|
93,824
|
814
|
131
|
-
|
-
|
|||||||||||||||
Total commercial real estate
|
238,818
|
2,041
|
1,216
|
-
|
-
|
|||||||||||||||
Commercial:
|
||||||||||||||||||||
Commercial and industrial
|
45,332
|
1,065
|
370
|
-
|
-
|
|||||||||||||||
Agriculture
|
296
|
-
|
-
|
-
|
-
|
|||||||||||||||
Other
|
1,603
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total commercial
|
47,231
|
1,065
|
370
|
-
|
-
|
|||||||||||||||
Residential mortgage:
|
||||||||||||||||||||
First lien, closed-end
|
50,448
|
660
|
132
|
-
|
-
|
|||||||||||||||
Junior lien, closed-end
|
279
|
419
|
5
|
-
|
-
|
|||||||||||||||
Total residential mortgage
|
50,727
|
1,079
|
137
|
-
|
-
|
|||||||||||||||
Home equity lines
|
33,235
|
788
|
87
|
-
|
-
|
|||||||||||||||
Consumer – other
|
3,787
|
156
|
9
|
-
|
-
|
|||||||||||||||
Total
|
$
|
373,798
|
$
|
5,129
|
$
|
1,819
|
$
|
-
|
$
|
-
|
December 31, 2017
|
||||||||||||||||||||
Dollars in thousands
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Loss
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Residential ADC
|
$
|
7,242
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Commercial ADC
|
23,883
|
477
|
4
|
-
|
-
|
|||||||||||||||
Farmland
|
5,392
|
-
|
-
|
-
|
-
|
|||||||||||||||
Multifamily
|
11,967
|
-
|
-
|
-
|
-
|
|||||||||||||||
Owner occupied
|
81,584
|
1,049
|
2,175
|
-
|
-
|
|||||||||||||||
Non-owner occupied
|
78,531
|
855
|
163
|
-
|
-
|
|||||||||||||||
Total commercial real estate
|
208,599
|
2,381
|
2,342
|
-
|
-
|
|||||||||||||||
Commercial:
|
||||||||||||||||||||
Commercial and industrial
|
45,480
|
1,130
|
422
|
-
|
-
|
|||||||||||||||
Agriculture
|
415
|
-
|
-
|
-
|
-
|
|||||||||||||||
Other
|
1,420
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total commercial
|
47,315
|
1,130
|
422
|
-
|
-
|
|||||||||||||||
Residential mortgage:
|
||||||||||||||||||||
First lien, closed-end
|
47,257
|
513
|
166
|
-
|
-
|
|||||||||||||||
Junior lien, closed-end
|
239
|
-
|
884
|
-
|
-
|
|||||||||||||||
Total residential mortgage
|
47,496
|
513
|
1,050
|
-
|
-
|
|||||||||||||||
Home equity lines
|
32,005
|
1,543
|
124
|
-
|
-
|
|||||||||||||||
Consumer – other
|
3,596
|
162
|
1
|
-
|
-
|
|||||||||||||||
Total
|
$
|
339,011
|
$
|
5,729
|
$
|
3,939
|
$
|
-
|
$
|
-
|
Beginning
Balance
|
Provision
for
(Recovery
of) Loan
Losses
|
Charge-
offs
|
Recoveries
|
Ending
Balance
|
||||||||||||||||
Dollars in thousands
|
||||||||||||||||||||
September 30, 2018
|
||||||||||||||||||||
Commercial real estate
|
$
|
2,504
|
$
|
76
|
$
|
-
|
$
|
3
|
$
|
2,583
|
||||||||||
Commercial and industrial
|
608
|
4
|
-
|
3
|
615
|
|||||||||||||||
Residential mortgage
|
532
|
-
|
-
|
-
|
532
|
|||||||||||||||
Consumer
|
200
|
(5
|
)
|
(3
|
)
|
3
|
195
|
|||||||||||||
Total
|
$
|
3,844
|
$
|
75
|
$
|
(3
|
)
|
$
|
9
|
$
|
3,925
|
|||||||||
September 30, 2017
|
||||||||||||||||||||
Commercial real estate
|
$
|
1,954
|
$
|
133
|
$
|
(134
|
)
|
$
|
140
|
$
|
2,093
|
|||||||||
Commercial and industrial
|
501
|
241
|
(136
|
)
|
-
|
606
|
||||||||||||||
Residential mortgage
|
524
|
(13
|
)
|
-
|
-
|
511
|
||||||||||||||
Consumer
|
234
|
(21
|
)
|
(8
|
)
|
8
|
213
|
|||||||||||||
Total
|
$
|
3,213
|
$
|
340
|
$
|
(278
|
)
|
$
|
148
|
$
|
3,423
|
Beginning
Balance
|
Provision
for
(Recovery
of) Loan
Losses
|
Charge-
offs
|
Recoveries
|
Ending
Balance
|
||||||||||||||||
Dollars in thousands
|
||||||||||||||||||||
September 30, 2018
|
||||||||||||||||||||
Commercial real estate
|
$
|
2,260
|
$
|
340
|
$
|
(50
|
)
|
$
|
33
|
$
|
2,583
|
|||||||||
Commercial and industrial
|
634
|
(2
|
)
|
(25
|
)
|
8
|
615
|
|||||||||||||
Residential mortgage
|
505
|
77
|
(50
|
)
|
-
|
532
|
||||||||||||||
Consumer
|
200
|
-
|
(13
|
)
|
8
|
195
|
||||||||||||||
Total
|
$
|
3,599
|
$
|
415
|
$
|
(138
|
)
|
$
|
49
|
$
|
3,925
|
|||||||||
September 30, 2017
|
||||||||||||||||||||
Commercial real estate
|
$
|
1,607
|
$
|
546
|
$
|
(208
|
)
|
$
|
148
|
$
|
2,093
|
|||||||||
Commercial and industrial
|
1,171
|
(214
|
)
|
(369
|
)
|
18
|
606
|
|||||||||||||
Residential mortgage
|
427
|
139
|
(66
|
)
|
11
|
511
|
||||||||||||||
Consumer
|
188
|
84
|
(73
|
)
|
14
|
213
|
||||||||||||||
Total
|
$
|
3,393
|
$
|
555
|
$
|
(716
|
)
|
$
|
191
|
$
|
3,423
|
Loans
Individually
Evaluated for
Impairment
|
Loans
Collectively
Evaluated for
Impairment
|
Total
|
||||||||||
Dollars in thousands
|
||||||||||||
September 30, 2018
|
||||||||||||
Commercial real estate
|
$
|
-
|
$
|
2,583
|
$
|
2,583
|
||||||
Commercial and industrial
|
103
|
512
|
615
|
|||||||||
Residential mortgage
|
129
|
403
|
532
|
|||||||||
Consumer
|
1
|
194
|
195
|
|||||||||
Total
|
$
|
233
|
$
|
3,692
|
$
|
3,925
|
||||||
December 31, 2017
|
||||||||||||
Commercial real estate
|
$
|
-
|
$
|
2,260
|
$
|
2,260
|
||||||
Commercial and industrial
|
144
|
490
|
634
|
|||||||||
Residential mortgage
|
103
|
402
|
505
|
|||||||||
Consumer
|
1
|
199
|
200
|
|||||||||
Total
|
$
|
248
|
$
|
3,351
|
$
|
3,599
|
September 30, 2018
|
December 31, 2017
|
|||||||||||||||
Loans
Individually
Evaluated for
Impairment
|
Loans
Collectively
Evaluated for
Impairment
|
Loans
Individually
Evaluated for
Impairment
|
Loans
Collectively
Evaluated for
Impairment
|
|||||||||||||
Dollars in thousands
|
||||||||||||||||
Commercial real estate
|
$
|
2,450
|
$
|
239,625
|
$
|
3,623
|
$
|
209,699
|
||||||||
Commercial and industrial
|
648
|
48,018
|
766
|
48,101
|
||||||||||||
Residential mortgage
|
1,260
|
50,683
|
1,861
|
47,198
|
||||||||||||
Consumer and home equity lines
|
95
|
37,967
|
107
|
37,324
|
||||||||||||
Total
|
$
|
4,453
|
$
|
376,293
|
$
|
6,357
|
$
|
342,322
|
September 30,
2018
|
September 30,
2017
|
|||||||
Dollars in thousands
|
||||||||
Balance, beginning of year
|
$
|
1,740
|
$
|
2,043
|
||||
Loan disbursements
|
236
|
84
|
||||||
Loan repayments
|
(1,505
|
)
|
(345
|
)
|
||||
Balance, end of quarter
|
$
|
471
|
$
|
1,782
|
(7)
|
Foreclosed Assets
|
September 30, 2018
|
September 30, 2017
|
|||||||
Dollars in thousands
|
||||||||
Balance, beginning of year
|
$
|
789
|
$
|
1,011
|
||||
Additions
|
1,618
|
196
|
||||||
Proceeds from sale
|
(330
|
)
|
(523
|
)
|
||||
Valuation adjustments
|
(317
|
)
|
(193
|
)
|
||||
Gains/(losses) on sales
|
22
|
(24
|
)
|
|||||
Balance, end of quarter
|
$
|
1,782
|
$
|
467
|
(8)
|
Stock Option Plans
|
Three months
ended
September 30,
2018
|
Three months
ended
September 30,
2017
|
|||||||
Dollars in thousands
|
||||||||
Option Grants
|
$
|
-
|
$
|
5
|
||||
Restricted Stock Grants
|
-
|
-
|
||||||
Total compensation expense
|
$
|
-
|
$
|
5
|
Nine months
ended
September 30,
2018
|
Nine months
ended
September 30,
2017
|
|||||||
Dollars in thousands
|
||||||||
Option Grants
|
$
|
1
|
$
|
23
|
||||
Restricted Stock Grants
|
-
|
-
|
||||||
Total compensation expense
|
$
|
1
|
$
|
23
|
Shares
|
Weighted
Average
Exercise Price
|
Weighted
Average
Remaining
Contractual
Term
|
Aggregate
Intrinsic
Value
|
||||||||||
Outstanding, December 31, 2017
|
151,173
|
$
|
4.54
|
5.27 years
|
|||||||||
Exercised
|
(3,107
|
)
|
4.84
|
||||||||||
Expired
|
(12,000
|
)
|
12.22
|
||||||||||
Outstanding, September 30, 2018
|
136,066
|
$
|
3.85
|
4.94 years
|
$
|
594,586
|
|||||||
Exercisable, September 30, 2018
|
136,066
|
$
|
3.85
|
$
|
594,586
|
Three Months Ended
September 30, 2017
|
Nine Months Ended
September 30, 2017
|
|||||||||||||||
Non-Vested
Restricted
Stock
Outstanding
|
Weighted
Average
Grant Date
Fair Value
|
Non-Vested
Restricted
Stock
Outstanding
|
Weighted
Average
Grant Date
Fair Value
|
|||||||||||||
Beginning balance outstanding
|
-
|
-
|
3,334
|
$
|
3.31
|
|||||||||||
Granted
|
-
|
-
|
||||||||||||||
Vested
|
-
|
(3,334
|
)
|
|||||||||||||
Ending balance outstanding
|
-
|
-
|
-
|
-
|
(9)
|
Off-Balance Sheet Risk and Commitments
|
Financial instruments whose contract represents credit risk
|
||||
September 30,
2018
|
||||
Dollars in thousands
|
||||
Undisbursed lines of credit
|
$
|
74,864
|
||
Letters of credit
|
546
|
|||
$
|
75,410
|
(10)
|
Preferred Stock
|
(11)
|
Mergers and Acquisitions
|
☐ |
the ability to obtain required regulatory and shareholder approvals and meet other closing conditions to the proposed merger with Clover (the “Pending Merger”);
|
☐ |
the ability to complete the Pending Merger as expected and within the expected timeframe;
|
☐ |
the possibility that (1) any of the anticipated benefits of the Pending Merger will not be realized or will not be realized within the expected time period, (2) the
businesses of the Company and Clover may not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected, (3) the expected revenue synergies and cost savings from the Pending Merger may
not be fully realized or realized within the expected time frame, (4) revenues following the Pending Merger may be lower than expected, or (5) customer and employee relationships and business operations may be disrupted by the Pending
Merger;
|
☐ |
deterioration in the financial condition of borrowers resulting in significant increases in the Company’s loan and lease losses and provisions for those losses and other
adverse impacts to results of operations and financial condition;
|
☐ |
changes in interest rates that affect the level and composition of deposits, loan demand and the values of loan collateral, securities, and interest-sensitive assets and
liabilities;
|
☐ |
the failure of assumptions underlying the establishment of reserves for possible loan and lease losses;
|
☐ |
the impact of liquidity needs on our results of operations and financial condition;
|
☐ |
risks related to the concentration in commercial real estate;
|
☐ |
declines in commercial and residential real estate;
|
☐ |
changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments;
|
☐ |
a failure in or a breach of the Company’s operational or security systems or those of its third-party service providers;
|
☐ |
changes in financial market conditions, either internationally, nationally or locally in areas in which the Company conducts operations, including demand for the
Company’s products and services and commercial and residential real estate development and prices;
|
☐ |
changes in accounting principles, policies, and guidelines applicable to bank holding companies and banking;
|
☐ |
the effects of competition from other commercial banks, non-bank lenders, consumer finance companies, credit unions, and other financial institutions operating in the
Company’s market area and elsewhere, together with such competitors offering banking products and services by mail, telephone and the Internet;
|
☐ |
the Company’s ability to attract and retain key personnel;
|
☐ |
changes in governmental monetary and fiscal policies as well as other legislative and regulatory changes;
|
☐ |
changes in political and economic conditions;
|
☐ |
the Company’s ability to comply with any requirements imposed on it by regulators, and the potential negative consequences that may result; and
|
☐ |
the success at managing the risks involved in the foregoing.
|
Loans
Outstanding
|
Non-
Performing
Loans |
Net
Charge-offs (Recoveries)
|
Allowance
for Loan
Losses
|
|||||||||||||
(Dollars in thousands) | ||||||||||||||||
September 30, 2018
|
$
|
380,746
|
$
|
1,057
|
$
|
(6
|
)
|
$
|
3,925
|
|||||||
June 30, 2018
|
374,026
|
1,105
|
95
|
3,844
|
||||||||||||
March 31, 2018
|
367,039
|
1,125
|
71
|
3,780
|
||||||||||||
December 31, 2017
|
348,679
|
2,746
|
(26
|
)
|
3,599
|
|||||||||||
September 30, 2017
|
340,038
|
2,142
|
130
|
3,423
|
||||||||||||
June 30, 2017
|
324,349
|
2,896
|
322
|
3,213
|
||||||||||||
March 31, 2017
|
311,609
|
2,937
|
73
|
3,471
|
||||||||||||
December 31, 2016
|
308,492
|
2,875
|
(303
|
)
|
3,393
|
|||||||||||
September 30, 2016
|
301,420
|
3,579
|
56
|
3,687
|
||||||||||||
June 30, 2016
|
293,157
|
1,739
|
(20
|
)
|
3,541
|
|||||||||||
March 31, 2016
|
297,746
|
2,100
|
122
|
3,521
|
||||||||||||
December 31, 2015
|
292,362
|
2,164
|
2
|
3,723
|
||||||||||||
September 30, 2015
|
286,469
|
2,079
|
(109
|
)
|
3,825
|
At September 30, 2018 | ||||||||||||
Actual
Ratio
|
Minimum
Requirement
|
Well-Capitalized
Requirement
|
||||||||||
Common equity tier 1 capital ratio
|
12.21
|
%
|
4.50
|
%
|
6.50
|
%
|
||||||
Total risk-based capital ratio
|
13.19
|
%
|
8.00
|
%
|
10.00
|
%
|
||||||
Tier 1 risk-based capital ratio
|
12.21
|
%
|
6.00
|
%
|
8.00
|
%
|
||||||
Tier 1 leverage ratio
|
10.56
|
%
|
4.00
|
%
|
5.00
|
%
|
Part II.
|
OTHER INFORMATION
|
Exhibit #
|
Description
|
|
Agreement and Plan of Merger Reorganization by and between Carolina Trust BancShares, Inc. and Clover Community Bankshares, Inc., dated as of
June 14, 2018 (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the SEC on June 20, 2018)
|
||
2018 Supplemental Executive Retirement Plan Agreement dated August 31, 2018, with Edwin E. Laws (incorporated by reference to Exhibit 10.1 to the
Company’s Current Report on Form 8-K filed with the SEC on September 4, 2018)
|
||
2018 Supplemental Executive Retirement Plan Agreement dated August 31, 2018, with Jerry L. Ocheltree (incorporated by reference to Exhibit 10.2
to the Company’s Current Report on Form 8-K filed with the SEC on September 4, 2018)
|
||
2018 Supplemental Executive Retirement Plan Agreement dated August 31, 2018, with Richard M. Rager (incorporated by reference to Exhibit 10.3 to
the Company’s Current Report on Form 8-K filed with the SEC on September 4, 2018)
|
||
First Amendment to the 2014 Supplemental Executive Retirement Plan Agreement for Jerry L. Ocheltree dated August 31, 2018 (incorporated by
reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K filed with the SEC on September 4, 2018)
|
||
Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) (filed herewith)
|
||
Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) (filed herewith)
|
||
Section 1350 Certification (furnished herewith)
|
||
101
|
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Condensed Consolidated Balance Sheets (Unaudited) as of September 30, 2018 and
December 31, 2017; (ii) Condensed Consolidated Statements of Operations (Unaudited) for the Three Months Ended September 30, 2018 and 2017; (iii) Condensed Consolidated Statements of Operations (Unaudited) for the Nine Months Ended
September 30, 2018 and 2017; (iv) Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the Three Months Ended September 30, 2018 and 2017; (v) Condensed Consolidated Statements of Comprehensive Income (Unaudited) for
the Nine Months Ended September 30, 2018 and 2017; (vi) Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) for the Nine Months Ended September 30, 2018 and 2017; (vii) Condensed Consolidated Statements of
Cash Flows (Unaudited) for the Nine Months Ended September 30, 2018 and 2017; and (viii) Notes to Condensed Consolidated Financial Statements (Unaudited)
|
CAROLINA TRUST BANCSHARES, INC.
|
|||
Date: November 9, 2018
|
By:
|
/s/
|
Jerry L. Ocheltree |
Jerry L. Ocheltree
|
|||
President and Chief Executive Officer
|
|||
Date: November 9, 2018
|
By:
|
/s/
|
Edwin E. Laws |
Edwin E. Laws
|
|||
Executive Vice President and Chief Financial Officer
|
1. |
I have reviewed this Quarterly Report on Form 10-Q of Carolina Trust BancShares, 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 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 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.
|
Date: November 9, 2018
|
|
/s/ Jerry L. Ocheltree
|
|
Jerry L. Ocheltree
|
|
President and Chief Executive Officer
|
1. |
I have reviewed this Quarterly Report on Form 10-Q of Carolina Trust BancShares, 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 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 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.
|
Date: November 9, 2018
|
|
/s/ Edwin E. Laws
|
|
Edwin E. Laws
|
|
Executive Vice President and Chief Financial Officer
|
Date: November 9, 2018
|
By:
|
/s/
|
Jerry L. Ocheltree
|
Jerry L. Ocheltree
|
|||
President and Chief Executive Officer
|
|||
Date: November 9, 2018
|
By:
|
/s/
|
Edwin E. Laws
|
Edwin E. Laws
|
|||
Executive Vice President and Chief Financial Officer
|
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Nov. 09, 2018 |
|
Document And Entity Information | ||
Entity Registrant Name | Carolina Trust BancShares, Inc. | |
Entity Central Index Key | 0001676667 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 7,156,987 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Assets | |||||
Investment securities available for sale, amortized cost | $ 31,180 | ||||
Investment securities available for sale, amortized cost | [1] | $ 32,067 | |||
Core deposit intangible, accumulated amortization | $ 737 | $ 711 | [1] | ||
Liabilities and Stockholders' Equity | |||||
Common stock, par value (in dollars per share) | $ 2.50 | $ 2.50 | [1] | ||
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | [1] | ||
Common stock, shares issued (in shares) | 7,156,987 | 4,657,880 | [1] | ||
Common stock, shares outstanding (in shares) | 7,156,987 | 4,657,880 | [1] | ||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Interest Income | ||||
Interest on investment securities and cash | $ 383 | $ 219 | $ 984 | $ 686 |
Interest and fees on loans | 5,036 | 4,215 | 14,460 | 12,091 |
Total interest income | 5,419 | 4,434 | 15,444 | 12,777 |
Interest Expense | ||||
Interest expense non-maturity deposits | 188 | 131 | 500 | 311 |
Interest expense time deposits | 733 | 509 | 2,043 | 1,515 |
Interest expense borrowed funds | 58 | 60 | 248 | 156 |
Interest expense capital lease | 3 | 4 | 10 | 13 |
Interest expense debt | 2 | 0 | 16 | 0 |
Interest expense on subordinated debt | 192 | 190 | 574 | 568 |
Total interest expense | 1,176 | 894 | 3,391 | 2,563 |
Net interest income | 4,243 | 3,540 | 12,053 | 10,214 |
Loan loss provision | 75 | 340 | 415 | 555 |
Net interest income after loan loss provision | 4,168 | 3,200 | 11,638 | 9,659 |
Noninterest income | ||||
Overdraft fees on deposits | 131 | 117 | 412 | 294 |
Interchange fee income, net | 67 | 33 | 165 | 96 |
Service charges on deposits | 18 | 16 | 49 | 41 |
Mortgage fee income | 44 | 32 | 86 | 73 |
Customer service fees | 14 | 13 | 43 | 40 |
ATM income | 8 | 7 | 21 | 20 |
Bank-owned life insurance income | 49 | 55 | 147 | 146 |
Unrealized gain on equity securities | 35 | 0 | 123 | 0 |
Other income | 8 | 9 | 24 | 22 |
Total noninterest income | 374 | 282 | 1,070 | 732 |
Noninterest expense | ||||
Salaries & benefits expense | 1,799 | 1,762 | 5,496 | 5,279 |
Occupancy expense | 193 | 212 | 607 | 636 |
Furniture, fixture & equipment expense | 214 | 142 | 524 | 435 |
Data processing expense | 198 | 201 | 588 | 738 |
Office supplies expense | 1 | 16 | 42 | 59 |
Professional fees | 105 | 91 | 328 | 333 |
Advertising and marketing | 31 | 33 | 90 | 104 |
Insurance | 83 | 77 | 269 | 223 |
Foreclosed asset expense, net | 127 | 22 | 453 | 283 |
Loan expense | 75 | 55 | 161 | 146 |
Stockholder expense | 45 | 26 | 114 | 138 |
Directors fees and expenses | 51 | 59 | 191 | 198 |
Telephone expense | 101 | 76 | 241 | 222 |
Core deposit intangible amortization expense | 9 | 12 | 26 | 35 |
Merger expenses | 157 | 0 | 480 | 0 |
Other operating expense | 138 | 177 | 433 | 436 |
Total noninterest expense | 3,327 | 2,961 | 10,043 | 9,265 |
Pre-tax income | 1,215 | 521 | 2,665 | 1,126 |
Income tax expense | 300 | 170 | 659 | 368 |
Net income | $ 915 | $ 351 | $ 2,006 | $ 758 |
Earnings per share | ||||
Basic earnings per common share (in dollars per share) | $ 0.13 | $ 0.08 | $ 0.33 | $ 0.16 |
Diluted earnings per common share (in dollars per share) | $ 0.13 | $ 0.07 | $ 0.32 | $ 0.16 |
Weighted average common shares outstanding (in shares) | 7,156,987 | 4,654,880 | 6,118,461 | 4,654,717 |
Diluted average common shares outstanding (in shares) | 7,243,875 | 4,740,660 | 6,211,670 | 4,732,557 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||||
Net income | $ 915 | $ 351 | $ 2,006 | $ 758 |
Unrealized loss on investment securities: | ||||
Unrealized holding losses arising during period | (208) | (256) | (812) | (78) |
Deferred income tax benefit | 48 | 92 | 190 | 26 |
Total other comprehensive loss | (160) | (164) | (622) | (52) |
Total comprehensive income | $ 755 | $ 187 | $ 1,384 | $ 706 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands |
Common Stock Warrant [Member] |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive Loss [Member] |
Total |
|||
---|---|---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2016 | $ 11,627 | $ 12,988 | $ 4,241 | $ (249) | |||||
Balance (in shares) at Dec. 31, 2016 | 4,650,808 | ||||||||
Net income | 758 | $ 758 | |||||||
Stock-based compensation | 23 | ||||||||
Exercise of stock options | $ 0 | 1 | |||||||
Exercise of stock options (in shares) | 0 | ||||||||
Restricted stock vesting | $ 8 | (8) | |||||||
Restricted stock vesting (in shares) | 3,334 | ||||||||
Sale of common stock | $ 2 | 0 | |||||||
Sale of common stock (in shares) | 738 | ||||||||
Other comprehensive loss | (52) | (52) | |||||||
Balance at Sep. 30, 2017 | $ 426 | $ 11,637 | 13,004 | 4,999 | (301) | $ 29,765 | |||
Balance (in shares) at Sep. 30, 2017 | 4,654,880 | ||||||||
Reclassification of loss on equity securities | 0 | 0 | |||||||
Balance at Dec. 31, 2017 | $ 11,645 | 13,008 | 4,772 | (732) | |||||
Balance (in shares) at Dec. 31, 2017 | 4,657,880 | 4,657,880 | [1] | ||||||
Net income | 2,006 | $ 2,006 | |||||||
Stock-based compensation | 1 | ||||||||
Exercise of stock options | $ 7 | 8 | |||||||
Exercise of stock options (in shares) | 3,107 | ||||||||
Restricted stock vesting | $ 0 | 0 | |||||||
Restricted stock vesting (in shares) | 0 | ||||||||
Sale of common stock | $ 6,240 | 12,195 | |||||||
Sale of common stock (in shares) | 2,496,000 | ||||||||
Other comprehensive loss | (622) | (622) | |||||||
Balance at Sep. 30, 2018 | $ 426 | $ 17,892 | $ 25,212 | 6,335 | (911) | $ 48,954 | |||
Balance (in shares) at Sep. 30, 2018 | 7,156,987 | 7,156,987 | |||||||
Reclassification of loss on equity securities | $ (443) | $ 443 | |||||||
|
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares |
Sep. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
|||
---|---|---|---|---|---|---|
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) [Abstract] | ||||||
Common stock, par value (in dollars per share) | $ 2.50 | $ 2.50 | [1] | $ 2.50 | ||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands |
9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
||||
Cash flows from operating activities | |||||
Net income | $ 2,006 | $ 758 | |||
Adjustments to reconcile net income to cash and cash equivalents provided by operating activities: | |||||
Provision for loan losses | 415 | 555 | |||
Depreciation and amortization of bank premises, equipment and software | 346 | 327 | |||
Accretion of loan fair value adjustments related to acquisition | (5) | (6) | |||
Net amortization of bond premiums/discounts | 104 | 112 | |||
Amortization of long term subordinated debt issuance costs | 57 | 53 | |||
Unrealized gain on equity securities | (123) | 0 | |||
Amortization of core deposit intangible | 26 | 35 | |||
Stock compensation expense | 1 | 23 | |||
Increase in value of life insurance contracts | (147) | (146) | |||
Net losses and impairment write-downs on foreclosed assets | 295 | 217 | |||
Deferred tax provision | 27 | 685 | |||
Increase in other assets | (17) | (56) | |||
Increase in accrued interest receivable | (132) | (30) | |||
Increase in accrued interest payable | 286 | 163 | |||
Increase (decrease) in other liabilities | 80 | (419) | |||
Net cash and cash equivalents provided by operating activities | 3,219 | 2,271 | |||
Cash flows from investing activities | |||||
Net increase in loans | (33,769) | (32,262) | |||
Proceeds from sale of foreclosed assets | 330 | 523 | |||
Net purchases of bank premises, equipment and software | (34) | (472) | |||
Purchase of Bank owned life insurance | 0 | (5,500) | |||
Purchase of available-for-sale securities | (3,034) | (4,832) | |||
Proceeds from maturities, calls and pay-downs of available-for-sale securities | 2,612 | 3,371 | |||
Redemptions (purchases) of Federal Home Loan Bank stock | 291 | (249) | |||
Net cash and cash equivalents used in investing activities | (33,604) | (39,421) | |||
Cash flows from financing activities | |||||
Net increase in deposits | 45,844 | 18,923 | |||
Increase (decrease) in Federal Home Loan Bank advances | (7,500) | 6,000 | |||
Payment of capital lease obligation | (49) | (46) | |||
Issuance of long term debt | 3,000 | 0 | |||
Repayment of long term debt | (3,000) | 0 | |||
Net proceeds from issuance of common stock | 18,450 | 3 | |||
Net cash and cash equivalents provided by financing activities | 56,745 | 24,880 | |||
Net increase (decrease) in cash and cash equivalents | 26,360 | (12,270) | |||
Cash and cash equivalents, beginning | 9,056 | [1] | 26,149 | ||
Cash and cash equivalents, ending | 35,416 | 13,879 | |||
Supplemental disclosure of cash flow information | |||||
Cash paid during the period for taxes | 631 | 15 | |||
Cash paid during the period for interest | 3,105 | 2,400 | |||
Noncash financing and investing activities | |||||
Unrealized loss on investment securities available-for-sale, net of taxes | (622) | (52) | |||
Transfer of loans to foreclosed assets | $ (1,618) | $ (196) | |||
|
Presentation of Financial Statements |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 | |||
Presentation of Financial Statements [Abstract] | |||
Presentation of Financial Statements |
The consolidated financial statements include the accounts of Carolina Trust BancShares, Inc. (the “Company”), its subsidiary, Carolina Trust Bank (the “Bank”), and the Bank’s wholly owned subsidiary, Western Carolina Holdings, LLC, which owns certain Bank assets. All significant intercompany balances and transactions have been eliminated in consolidation. On August 16, 2016, the Company announced that it had consummated a statutory share exchange pursuant to which it became the parent company of the Bank. Shares of the Bank’s common stock were exchanged for shares of the Company’s common stock at a one-for-one exchange rate. The Company is a North Carolina business corporation that is operating as a registered bank holding company under the Bank Holding Company Act of 1956. The Bank is the only subsidiary of the Company. In management’s opinion, the financial information, which is unaudited, reflects all adjustments (consisting solely of normal recurring adjustments) necessary for fair presentation of the financial information as of September 30, 2018, in conformity with accounting principles generally accepted in the United States of America. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2018. Information regarding the organization and business of the Company, accounting policies followed by the Company and other information are contained in the notes to the consolidated financial statements filed as part of the Company’s 2017 Annual Report on Form 10-K. This quarterly report should be read in conjunction with the Annual Report. |
Recent Accounting Pronouncements |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 | |||
Recent Accounting Pronouncements [Abstract] | |||
Recent Accounting Pronouncements |
In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01, Financial Instruments - Overall, Subtopic 825-10 (“ASU 2016-01”) to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The fair value measurement based on an exit price assumes that an asset or liability is exchanged in an orderly transaction between market participants to sell the asset or transfer the liability at the measurement date under current market conditions. A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either: (a) in the principal market for the asset or liability, or (2) in the absence of a principal market, in the most advantageous market for the asset or liability. The company has adopted the standard and applied the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the 2018 fiscal year. The amendments related to equity securities without readily determinable fair values were applied prospectively to equity investments that existed as of January 1, 2018. The Company is now reporting unrealized gains and losses of its marketable equity securities in income as compared to the previous method of reporting through other comprehensive income. The nonmarketable equity securities that do not have readily determinable values were previously recorded at cost. Following implementation, these securities, primarily Federal Home Loan Bank, or FHLB, stock, are recorded at cost less any impairment, plus or minus any observable changes in price resulting from transactions for similar or identical investments of the same issuer. The unrealized loss on equity securities in accumulated other comprehensive income in the amount of $443,000 was reclassified to retained earnings on January 1, 2018. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers, Topic 606 (“ASU 2014-09”). The new standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies need to use more judgment and make more estimates than under existing guidance. This analysis may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. As a result of the deferral, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The amendments can be applied retrospectively to each prior reporting period or retrospectively with the cumulative effect of initially applying this new guidance recognized at the date of initial application. The Company adopted this standard in 2018 using the full retrospective approach. The majority of the Company’s revenues are generated from financial instruments which are not within the scope of this standard. Management has evaluated the impact for its various other revenue streams including the following: deposit account fees and service charges; other fees such as wire services and check cashing services; ATM surcharges; card related fees; and gains and losses from sales of foreclosed properties and fixed assets. This evaluation led management to conclude that this standard does not materially impact its financial statements. Additionally, based on underlying contracts, this standard requires the Company to report costs associated with debit card and ATM transactions netted against the related fees from such transactions. Previously, such costs were reported as check card expenses. For the three and nine months ended September 30, 2018, gross interchange fees totaled $145,000 and $397,000, respectively, and related costs totaled $78,000 and $232,000, respectively. In the accompanying Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2018, we reported on a net basis $67,000 and $165,000, respectively, as interchange fee income. For the three and nine months ended September 30, 2017, gross interchange fees totaled $118,000 and $361,000, respectively, and related costs totaled $85,000 and $265,000, respectively. In the accompanying Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2017, we reported on a net basis $33,000 and $96,000, respectively, as interchange fee income. In February 2016, the FASB issued ASU 2016-02, Leases, which amended the Leases topic of the Accounting Standards Codification to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, includ-ing interim periods within those fiscal years. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. Currently the Company has several multi-year property leases for which reporting will be impacted by this standard. At the end of 2017, four of our locations have operating leases that expire in 2019 with aggregate payments totaling $157,000. If the new standard were in effect, an asset and a liability for the present value of payments would be recognized. Similarly, other property leases expire in 2020 and 2021 that have payments totaling $126,000 and $159,000, respectively. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The new standard introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale (AFS) debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted beginning after December 15, 2018. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. The Company has formed a management committee including those responsible for credit analysis and review, accounting and finance, information technology and lending to develop an understanding of the requirements and plan implementation. The Company is adopting a software model for the ALLL model that has add-on functionality for compliance with the new standard. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) – Changes to the Disclosure Requirements for Fair Value Measurement. These amendments remove the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 fair value measurement methodologies, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. It also adds a requirement to disclose changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. For certain unobservable inputs, entities may disclose other quantitative information in lieu of the weighted average if the other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted. The Company is evaluating the impact this standard will have on its disclosures. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
Earnings Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share |
Basic Earnings per Common Share Basic earnings per common share is computed by dividing net income to common stockholders by the weighted average number of common shares outstanding during the period, after giving retroactive effect to stock splits and dividends. Diluted Earnings per Common Share The computation of diluted earnings per common share is similar to the computation of basic earnings per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if dilutive potential common shares had been issued. These additional common shares would include employee equity share options, nonvested shares and similar equity instruments granted to employees, as well as the shares associated with the common stock warrants issued to the U.S. Treasury Department as part of the preferred stock transaction completed in February 2009. Diluted earnings per common share are based upon the actual number of options or shares granted and not yet forfeited unless doing so would be antidilutive. The numerator is adjusted for any changes in income or loss that would result from the assumed conversion of those potential common shares. In June 2013, the U.S. Treasury sold the warrant to private investors in a Dutch auction process. Following the reorganization of the Bank into the Company, the right to acquire up to 86,957 shares of Bank common stock at a price of $6.90 per share was converted to the right to purchase the same number of shares of the Company’s common stock. The warrant book value, $426,000 is recognized as the Company’s stockholders’ equity. The warrant expires February 6, 2019. The following table summarizes earnings per share and the shares utilized in the computations for the three and nine months ended September 30, 2018 and 2017, respectively:
For the three and nine months ended September 30, 2018, there were no shares that were anti-dilutive. For the three and nine months ended September 30, 2017, there were 35,981 shares related to stock options that were anti-dilutive because the exercise price exceeded the average market price for the period. Therefore, they were omitted from the calculation of diluted earnings per share for their respective periods. |
Fair Value Measurements |
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Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
The Company is required to disclose the estimated fair value of financial instruments, both assets and liabilities on and off the balance sheet, for which it is practicable to estimate fair value. These fair value estimates are made at each reporting date, based on relevant market information and information about the financial instruments. Fair value estimates are intended to represent the price an asset could be sold at or the price a liability could be settled for. However, given there is no active market or observable market transactions for many of the Company’s financial instruments, the Company has made estimates of many of these fair values which are subjective in nature, involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimated values. The methodologies for financial assets and financial liabilities are discussed below: Cash and Due from Banks and Interest-Earning Deposits with Banks The carrying amounts for cash and due from banks and interest-earning deposits with banks approximate fair value because of the short maturities of those instruments. Certificates of Deposit with Banks The fair value of certificates of deposit with banks is estimated by discounting expected cash flows using the rates currently offered for instruments of similar remaining maturities. Investment and Equity Securities Fair value for investment and equity securities equals the quoted market price if such information is available. If a quoted market price is not available in active markets for identical securities (level 1), fair value may be estimated using observable inputs such as quoted prices for similar securities, interest rates and yield curves, implied volatilities and credit spreads (level 2). Otherwise, unobservable inputs such as independent pricing models or other model-based valuation techniques such as present value of future cash flows, adjusted for the security’s credit rating on similar securities, prepayment assumptions and other factors such as credit loss assumptions (level 3). The fair value would be based on an exit price between market participants that may include adjustments for liquidity and credit. Loans The fair value of loans is estimated based on exit price. These cash flows include assumptions for prepayment estimates over each loan’s remaining life, considerations for the current interest rate environment compared to the weighted average rate of each portfolio and a credit risk component based on the historical and expected performance of each portfolio. The calculation also includes market liquidity and credit adjustments. These valuations are not comparable with the fair values disclosed for December 31, 2017 which were based on an entrance price basis. Accrued Interest Receivable and Payable The carrying amount is a reasonable estimate of fair value. Deposits The fair value of demand deposits, savings, money market and negotiable order of withdrawal (NOW) accounts is the amount payable on demand at the reporting date. The fair value of time deposits is estimated by discounting expected cash flows using the rates currently offered for instruments of similar remaining maturities. Capital Lease Obligation, Federal Home Loan Bank Advances and Long Term Subordinated Debt The fair value of borrowings is based upon discounted expected cash flows using current rates at which borrowings of similar maturity could be obtained. Financial Instruments with Off-Balance Sheet Risk With regard to commitments to extend credit discussed in Note 9, the fair value amounts are not material. The carrying amounts and estimated fair values of the Company’s financial instruments, none of which are held for trading purposes, are as follows at September 30, 2018 and December 31, 2017:
The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Fair Value Hierarchy The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.
Following is a description of valuation methodologies used for assets and liabilities recorded at fair value. Investment Securities Available-for-Sale and Equity Securities Investment securities available-for-sale and equity securities are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange and U.S. Treasury securities that are traded by dealers or brokers in an active over-the-counter market. Level 2 securities include U.S. government agency securities, mortgage-backed securities issued by government-sponsored enterprises and municipal bonds. There have been no changes in valuation techniques during 2018. Valuation techniques are consistent with techniques used in prior periods. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The table below presents the recorded amount of assets and liabilities measured on a recurring basis.
*All of the Company’s mortgage-backed securities are issued either by the U.S. Government, which includes GNMA pools, or by government-sponsored enterprises such as FNMA and FHLMC. The Company did not have any transfers of assets between Levels 1, 2 or 3 during the periods ended September 30, 2018 and December 31, 2017. Impaired Loans The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures it for impairment. The fair value of impaired loans is estimated using one of several methods, including collateral value, a loan’s observable market price and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value exceeds the recorded investments in such loans. At September 30, 2018, the discounted cash flows method was used in determining the fair value of nine loans totaling $1.7 million and the fair value of the collateral method was used in the other twenty-three loans totaling $2.5 million. At December 31, 2017, the discounted cash flows method was used in determining the fair value of nine loans totaling $1.9 million and the fair value of the collateral method was used in the other twenty-nine loans totaling $4.2 million. Impaired loans where an allowance is established based on the fair value of collateral and also when written down with the discounted cash flow method require classification in the fair value hierarchy. The fair value of the collateral for an impaired loan is classified as Level 3. Although appraisals of these properties are frequently based on comparable properties, they are not identical. Significant unobservable inputs will need to be used in assessing the value. When the discounted cash flows method is used, the Company records the impaired loan as nonrecurring Level 3. There have been no changes in valuation techniques for the period ended September 30, 2018. Valuation techniques are consistent with techniques used in prior periods. The following table presents impaired loans that were re-measured and reported at fair value through a specific valuation allowance allocation of the allowance for loan losses and a write-down based upon the fair value of the underlying collateral or discounted cash flows during the nine months ended September 30, 2018 and 2017.
Foreclosed Assets Foreclosed assets are adjusted to fair value upon transfer of the loans to foreclosed assets. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. The fair value of foreclosed assets are classified as Level 3. Although appraisals of these properties are frequently based on comparable properties, they are not identical. Significant unobservable inputs will need to be used in assessing the value. The carrying value of foreclosed assets is periodically reviewed and written down to fair value. Any loss is included in earnings. For the three months ended September 30, 2018, there were no assets that were written down prior to foreclosure. For the nine months ended September 30, 2018, foreclosed assets in the amount of $1,158,000 were written down by $180,000 to $978,000 prior to foreclosure. For the three months ended September 30, 2018, foreclosed assets with a carrying value of $640,000 were written down by $53,000 to $587,000 subsequent to foreclosure and for the nine months ended September 30, 2018, $1,618,000 were written down by $301,000 to $1,317,000 subsequent to foreclosure. For the three and nine months ended September 30, 2017, there were no assets written down subsequent to foreclosure. Assets measured at fair value on a nonrecurring basis are included in the table below.
Quantitative Information About Level 3 Fair Value Measurements:
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Investment Securities |
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Investment Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities |
The amortized cost and fair value of available-for-sale securities, with gross unrealized gains and losses, is as follows:
*All mortgage-backed securities are issued either by the U.S. Government through GNMA or by government sponsored enterprises FNMA or FHLMC. The amortized cost and fair values of securities available-for-sale at September 30, 2018 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
The following table details unrealized losses and related fair values in the Company’s investment security portfolio. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2018 and December 31, 2017, respectively.
*All mortgage-backed securities are issued either by the U.S. Government through GNMA or by government-sponsored enterprises FNMA or FHLMC. Management considers the nature of the investment, the underlying causes of the decline in the market value and the severity and duration of the decline in market value in determining if impairment is other than temporary. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. As of September 30, 2018, management believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The unrealized losses on debt securities are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the bonds approach their maturity date or re-pricing date or if market yields for such investments decline. Management analyzed the issuer data from public filings, reviewed transcripts of earnings discussions, and assessed whether the decline in value was other than temporary. Management does not believe such securities are other-than-temporarily impaired due to reasons of credit quality for the debt securities. Accordingly, as of September 30, 2018, management believes the impairments detailed in the table above are temporary, and no impairment loss has been realized in the Company’s net income. Securities with a fair value of $926,000 at September 30, 2018 were pledged to secure public funds. The Company had no sales of securities during the three and nine month periods ended September 30, 2018 and September 30, 2017. |
Loans |
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Loans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans |
The following is a summary of loans at September 30, 2018 and December 31, 2017:
Loans are primarily originated for customers residing in Lincoln, Gaston, Rutherford, Catawba, Iredell, and Rowan Counties in North Carolina. Real estate loans can be affected by the condition of the local real estate market. Commercial and industrial loans can be affected by the local economic conditions. Non-Accrual and Past Due Loans Non-accrual loans, segregated by category, were as follows:
Interest foregone on non-accrual loans was approximately $22,000 and $59,000 for the three and nine months ended September 30, 2018 and $48,000 and $85,000 for the three and nine months ended September 30, 2017. An analysis of past due loans, segregated by class, was as follows:
At September 30, 2018 there were no loans past due 90 days or more, which were still accruing interest. There were two loans totaling $82,000 past due 90 days or more and still accruing interest at December 31, 2017. Impaired loans Impaired loans are set forth in the following tables.
Troubled Debt Restructurings As of September 30, 2018, eleven loans totaling $3,925,000 were identified as troubled debt restructurings and considered impaired, none of which had unfunded commitments. Ten loans totaling $4,163,000 were identified as troubled debt restructurings and considered impaired at December 31, 2017, none of which had unfunded commitments. Of the eleven loans identified as troubled debt restructurings at September 30, 2018, nine loans totaling $3,200,000 were accruing interest. Of the ten loans identified as troubled debt restructurings at December 31, 2017, nine loans totaling $3,398,000 were accruing interest. For the three and nine months ended September 30, 2018 and 2017, the following table presents a breakdown of the types of concessions made by loan class.
Qualitative factors are calculated for each segment of the loan portfolio. Factors include economic, concentrations, trends in terms of volume and mix, interest rate movement, and delinquency. If a restructured loan is delinquent, it is addressed in the delinquency factor for that segment. Because the number and dollar amounts of restructured loans represent a relatively small percentage (1%) of the total loan balances there is no specific qualitative factor tied to restructured loans. There were no loans that were modified as troubled debt restructurings within the previous 12 months for which there was a payment default during the three and nine months ended September 30, 2018. The following table presents loans that were modified as troubled debt restructurings within the previous 12 months and for which there was a payment default during the three and nine months ended September 30, 2017. The type labeled other includes concessions made to capitalize interest and extend interest only periods.
If a restructured loan defaults after being restructured, the loan is liquidated or charged off. Defaults of restructured loans are addressed in the qualitative factor of the delinquency component. The following table presents the successes and failures of the types of modifications within the previous 12 months as of September 30, 2018 and 2017.
Credit Quality Indicators As part of the on-going monitoring of credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the local, state and national economic outlook, (ii) concentrations of credit, (iii) interest rate movements, (iv) volume, mix and size of loans, and (v) delinquencies. The Company also has an internal Loan Review Officer that monitors risk grades on an on-going basis. The Company utilizes a risk-grading matrix to assign a risk grade to each of its commercial and consumer loans. Loans are graded on a scale of 1-9. Risk grades 1-5 represent pass rated loans. The general characteristics of the 9 risk grades are broken down into commercial and consumer and described below: Loan Portfolio Risk Grades Pass credits are grades 1-5 and represent credits with above average risk characteristics that are in accordance with loan policy guidelines regarding repayment ability, loan to value, and credit history. These types of credits have very few exceptions to policy. Grade 6 – Watch List or Special Mention. The loans in this category include the following characteristics:
Grade 7 – Substandard. A substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans consistently not meeting the repayment schedule should be downgraded to substandard. Loans in this category are characterized by deterioration in quality exhibited by any number of well-defined weaknesses requiring corrective action. The weaknesses may include, but are not limited to (i) high debt to worth ratios, (ii) declining or negative earnings trends, (iii) declining or inadequate liquidity, (iv) improper loan structure, (v) questionable repayment sources, (vi) lack of well-defined secondary repayment source and (vii) unfavorable competitive comparisons. Grade 8 – Doubtful. Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard, plus 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. However, these loans are not yet rated as loss because certain events may occur which would salvage the debt. Among these events are injection of capital, alternative financing and liquidation of assets or the pledging of additional collateral. The ability of the borrower to service the debt is extremely weak, overdue status is constant, the debt has been placed on non-accrual status, and no definite repayment schedule exists. Doubtful is a temporary grade where a loss is expected but is presently not quantified with any degree of accuracy. Once the loss position is determined, the amount is charged off. Grade 9 – Loss. Loans classified Loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan even though partial recoveries may be realized in the future. Probable loss portions of doubtful assets should be charged against the allowance for loan losses. Loans may reside in this classification for administrative purposes for a period not to exceed the earlier of thirty (30) days or calendar quarter-end. The following table presents the credit risk profile by internally assigned risk grades.
Allowance for Loan Losses The allowance for loan losses represents management’s estimate of an amount adequate to provide for probable losses inherent in the loan portfolio. Management determines the allowance for loan losses based on a number of factors, including a review and evaluation of the Company’s loan portfolio and current and projected economic conditions locally and nationally. The allowance is monitored and analyzed in conjunction with the Company’s loan analysis and grading program. The look-back period is a weighted twenty quarter period. Based on this methodology, provisions for loan losses are made to maintain an adequate allowance for loan losses. The allowance for loan losses is created by direct charges to operations. Losses on loans are charged against the allowance for loan losses in the accounting period in which they are determined by management to be uncollectible. Recoveries during the period are credited to the allowance. The provision for loan losses is the amount necessary to adjust the allowance for loan losses to the amount that management has determined to be adequate to provide for probable losses inherent in the loan portfolio. The Company recorded provisions for loan losses of $75,000 and $415,000 for the three and nine months ended September 30, 2018. The Company recorded provisions for loan losses for the both the three and nine months ended September 30, 2017 that totaled $340,000 and $555,000, respectively. Management realizes that general economic trends greatly affect loan losses, and no assurances can be made that future charges to the allowance for loan losses may not be significant in relation to the amount provided during a particular period, or that future evaluations of the loan portfolio based on conditions then prevailing will not require sizable additions to the allowance, thus necessitating similarly sizable charges to income. Based on its best judgment, evaluation, and analysis of the loan portfolio, management considers the allowance for loan losses to be appropriate in light of the risk inherent in the Company’s loan portfolio for the reporting periods. The following table details activity in the allowance for loan losses by portfolio segment for the three months ended September 30, 2018 and 2017.
The following table details activity in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2018 and 2017.
The allocation of the allowance for loan losses for September 30, 2018 and December 31, 2017 is presented in the table below.
The Company’s recorded investment in loans as of September 30, 2018 and December 31, 2017 related to each balance in the allowance for loan losses by portfolio segment and disaggregated on the Company’s impairment methodology was as follows:
At September 30, 2018, the Company had pre-approved but unused lines of credit totaling $74.9 million. In management’s opinion, these unused lines of credit represent no more than normal lending risk to the Company and will be funded from normal sources of liquidity. The Company has entered into loan transactions with certain of its directors and executive officers. Such loans were made in the ordinary course of business and on substantially the same terms and collateral as those for comparable transactions prevailing at the time and did not involve more than the normal risk of collectability or present other unfavorable features. A summary of related party loan activity for the nine months ended September 30, 2018 and 2017 is as follows:
At September 30, 2018 and 2017, the Company had pre-approved but unused lines of credit totaling $145,000 and $374,000, respectively, to executive officers, directors and their related interests. Related party deposits totaled $2,689,000 and $1,912,000 at September 30, 2018 and 2017, respectively. |
Foreclosed Assets |
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Foreclosed Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreclosed Assets |
The following table summarizes the activity in foreclosed assets for the nine month periods ended September 30, 2018 and 2017:
The Company has two foreclosed residential real estate properties totaling $794,000 as of September 30, 2018. The company did not have any consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process as of September 30, 2018. |
Stock Option Plans |
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Stock Option Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Plans |
The Company has six share-based compensation plans in effect at September 30, 2018 and September 30, 2017. There were no compensation cost charged against income for the three months ended September 30, 2018 and $1,000 charged against income for those plans for the nine months ended September 30, 2018. The compensation cost charged against income for those plans for the three and nine months ended September 30, 2017 was $5,000 and $23,000, respectively. During 2001, the Company adopted, with shareholder approval, an Incentive Stock Option Plan (the “2001 Employee Plan”) and a Non-statutory Stock Option Plan (the “2001 Director Plan”). Each plan makes available options to purchase 100,771 shares of the Company’s common stock, for an aggregate number of common shares reserved for options under these plans of 201,542. The exercise price of all options granted to date under these plans is $3.14. The options granted in 2006 through 2011 under the 2001 Director Plan and the 2001 Employee Plan vested over a four-year period. The options granted in 2005 under the 2001 Director Plan and the 2001 Employee Plan vested over a three-year period. All unexercised options expire ten years after the year of the grant or earlier in certain circumstances. The fair market value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. The 2001 Employee Plan and the 2001 Director Plan expired in 2011 in accordance with their terms and no further options may be granted under these plans. During 2005, the Company adopted, with shareholder approval, an Incentive Stock Option Plan (the “2005 Employee Plan”) and a Non-statutory Stock Option Plan (the “2005 Director Plan”). The 2005 Employee Plan made available options to purchase 72,389 shares of the Company’s common stock and the 2005 Director Plan made available 73,527 shares of the Company’s common stock, for an aggregate number of common shares reserved under these plans of 145,916. The exercise price of all options granted to date under these plans range from $2.13 to $12.25. The options granted in 2005 under the 2005 Director Plan and the 2005 Employee Plan vested over a three-year period. The options granted in 2006 through 2015 under the 2005 Employee Plan vest over a four-year period. All unexercised options expire ten years after the date of grant. The fair market value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. The 2005 Employee Plan and the 2005 Director Plan expired in 2015 in accordance with their terms and no further options may be granted under these plans. Additionally, the Company granted 10,000 shares of restricted stock under the 2005 Employee Plan in 2014. The shares vested over a 3-year period, fully vesting in January 2017. As a result of the merger with Carolina Commerce Bank, Carolina Trust Bank assumed all outstanding options of Carolina Commerce under the existing terms and at the conversion rate of 0.625 shares of Carolina Trust stock for each share of Carolina Commerce stock. All options assumed became fully vested at the merger date. As of September 30, 2018, there were 76,845 options outstanding from the converted plans with exercise prices ranging from $2.13 to $10.40. Total stock-based compensation recognized as compensation expense on our consolidated statement of income for the three and nine months ended September 30, 2018 and 2017 is as follows:
A summary of option activity under the stock option plans as of September 30, 2018 and changes during the period ended September 30, 2018 is presented below:
There were 958 options vested and no options granted during the nine months ended September 30, 2018. As of September 30, 2018 there was no unrecognized compensation cost related to non-vested options granted under all of the Company’s equity compensation plans. There was no restricted stock granted or vested during the three and nine months ended September 30, 2018. A summary of restricted stock activity during the three and nine months ended September 30, 2017 is presented below:
Upon exercise of the options, the Company issues shares from authorized but unissued shares. The Company does not typically purchase shares on the open market to fulfill obligations of the equity compensation plans. |
Off-Balance Sheet Risk and Commitments |
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Off-Balance Sheet Risk and Commitments [Abstract] | |||||||||||||||||||||||||||||||||
Off-Balance Sheet Risk and Commitments |
The Company is a party to financial instruments with off-balance sheet credit risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, upon extension of credit is based on management’s credit evaluation of the borrower. Collateral obtained varies but may include real estate, stocks, bonds, and certificates of deposit. A summary of the contract amount of the Company’s exposure to off-balance sheet credit risk as of September 30, 2018 is as follows:
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Preferred Stock |
9 Months Ended | ||
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Sep. 30, 2018 | |||
Preferred Stock [Abstract] | |||
Preferred Stock |
Our articles of incorporation authorize us to issue up to 1,000,000 shares of one or more series of preferred stock. Our board of directors, in its sole discretion, has the authority to determine the preferences, limitations and relative rights of shares of preferred stock and to fix the number of shares constituting any series, the designation of such series, and the dividend rate for each series, without any further vote or action by our shareholders. Our preferred stock may be issued with voting, liquidation, dividend and other rights superior to the rights of our common stock. There were no shares of preferred stock outstanding as of September 30, 2018. |
Mergers and Acquisitions |
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Sep. 30, 2018 | |||
Mergers and Acquisitions [Abstract] | |||
Mergers and Acquisitions |
Proposed Merger with Clover Community Bankshares, Inc. The Company entered into an Agreement and Plan of Merger and Reorganization (the “Agreement”) dated as of June 14, 2018, with Clover Community Bankshares, Inc. (“Clover”), the parent holding company for Clover Community Bank, Clover, SC. Pursuant to the terms of the Agreement, Clover will merge with and into the Company, with the Company being the surviving corporation in the merger. In addition, following the merger of Clover with and into the Company, Clover Community Bank will be merged with and into the Bank with the Bank as the surviving bank in the bank merger. The transaction is subject to various closing conditions, including the receipt of requisite shareholder approvals and required approvals of state and federal banking regulators. If the merger is completed, each share of Clover common stock issued and outstanding will be converted into the right to receive either $22.00 in cash or 2.7181 shares of the Company’s common stock. Clover shareholders will have the option to elect the type of consideration that they would prefer to receive, subject to required proration as provided in the Agreement. The merger consideration will be prorated such that 20% of Clover’s common shares outstanding immediately prior to the closing of the merger will be converted to the cash consideration and 80% of Clover’s common shares outstanding immediately prior to the closing of the merger will be converted to the stock consideration. Cash will be paid in lieu of fractional shares. In accordance with Clover’s articles of incorporation, each outstanding share of Clover preferred stock will automatically convert into one share of Clover common stock immediately prior to the closing of the merger. These shares of common stock will then be converted into the right to receive the merger consideration as described above. Based on the Company’s 10-day volume weighted closing price of $8.23 per share as of November 2, 2018, the aggregate deal value is approximately $21.8 million. |
Presentation of Financial Statements (Policies) |
9 Months Ended |
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Sep. 30, 2018 | |
Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The consolidated financial statements include the accounts of Carolina Trust BancShares, Inc. (the “Company”), its subsidiary, Carolina Trust Bank (the “Bank”), and the Bank’s wholly owned subsidiary, Western Carolina Holdings, LLC, which owns certain Bank assets. All significant intercompany balances and transactions have been eliminated in consolidation. On August 16, 2016, the Company announced that it had consummated a statutory share exchange pursuant to which it became the parent company of the Bank. Shares of the Bank’s common stock were exchanged for shares of the Company’s common stock at a one-for-one exchange rate. The Company is a North Carolina business corporation that is operating as a registered bank holding company under the Bank Holding Company Act of 1956. The Bank is the only subsidiary of the Company. In management’s opinion, the financial information, which is unaudited, reflects all adjustments (consisting solely of normal recurring adjustments) necessary for fair presentation of the financial information as of September 30, 2018, in conformity with accounting principles generally accepted in the United States of America. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2018. Information regarding the organization and business of the Company, accounting policies followed by the Company and other information are contained in the notes to the consolidated financial statements filed as part of the Company’s 2017 Annual Report on Form 10-K. This quarterly report should be read in conjunction with the Annual Report. |
Recent Accounting Pronouncements (Policies) |
9 Months Ended |
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Sep. 30, 2018 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01, Financial Instruments - Overall, Subtopic 825-10 (“ASU 2016-01”) to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The fair value measurement based on an exit price assumes that an asset or liability is exchanged in an orderly transaction between market participants to sell the asset or transfer the liability at the measurement date under current market conditions. A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either: (a) in the principal market for the asset or liability, or (2) in the absence of a principal market, in the most advantageous market for the asset or liability. The company has adopted the standard and applied the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the 2018 fiscal year. The amendments related to equity securities without readily determinable fair values were applied prospectively to equity investments that existed as of January 1, 2018. The Company is now reporting unrealized gains and losses of its marketable equity securities in income as compared to the previous method of reporting through other comprehensive income. The nonmarketable equity securities that do not have readily determinable values were previously recorded at cost. Following implementation, these securities, primarily Federal Home Loan Bank, or FHLB, stock, are recorded at cost less any impairment, plus or minus any observable changes in price resulting from transactions for similar or identical investments of the same issuer. The unrealized loss on equity securities in accumulated other comprehensive income in the amount of $443,000 was reclassified to retained earnings on January 1, 2018. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers, Topic 606 (“ASU 2014-09”). The new standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies need to use more judgment and make more estimates than under existing guidance. This analysis may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. As a result of the deferral, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The amendments can be applied retrospectively to each prior reporting period or retrospectively with the cumulative effect of initially applying this new guidance recognized at the date of initial application. The Company adopted this standard in 2018 using the full retrospective approach. The majority of the Company’s revenues are generated from financial instruments which are not within the scope of this standard. Management has evaluated the impact for its various other revenue streams including the following: deposit account fees and service charges; other fees such as wire services and check cashing services; ATM surcharges; card related fees; and gains and losses from sales of foreclosed properties and fixed assets. This evaluation led management to conclude that this standard does not materially impact its financial statements. Additionally, based on underlying contracts, this standard requires the Company to report costs associated with debit card and ATM transactions netted against the related fees from such transactions. Previously, such costs were reported as check card expenses. For the three and nine months ended September 30, 2018, gross interchange fees totaled $145,000 and $397,000, respectively, and related costs totaled $78,000 and $232,000, respectively. In the accompanying Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2018, we reported on a net basis $67,000 and $165,000, respectively, as interchange fee income. For the three and nine months ended September 30, 2017, gross interchange fees totaled $118,000 and $361,000, respectively, and related costs totaled $85,000 and $265,000, respectively. In the accompanying Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2017, we reported on a net basis $33,000 and $96,000, respectively, as interchange fee income. In February 2016, the FASB issued ASU 2016-02, Leases, which amended the Leases topic of the Accounting Standards Codification to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, includ-ing interim periods within those fiscal years. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. Currently the Company has several multi-year property leases for which reporting will be impacted by this standard. At the end of 2017, four of our locations have operating leases that expire in 2019 with aggregate payments totaling $157,000. If the new standard were in effect, an asset and a liability for the present value of payments would be recognized. Similarly, other property leases expire in 2020 and 2021 that have payments totaling $126,000 and $159,000, respectively. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The new standard introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale (AFS) debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted beginning after December 15, 2018. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. The Company has formed a management committee including those responsible for credit analysis and review, accounting and finance, information technology and lending to develop an understanding of the requirements and plan implementation. The Company is adopting a software model for the ALLL model that has add-on functionality for compliance with the new standard. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) – Changes to the Disclosure Requirements for Fair Value Measurement. These amendments remove the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 fair value measurement methodologies, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. It also adds a requirement to disclose changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. For certain unobservable inputs, entities may disclose other quantitative information in lieu of the weighted average if the other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted. The Company is evaluating the impact this standard will have on its disclosures. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share and Shares Utilized in Computations | The following table summarizes earnings per share and the shares utilized in the computations for the three and nine months ended September 30, 2018 and 2017, respectively:
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Fair Value Measurements (Tables) |
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Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of the Company’s financial instruments, none of which are held for trading purposes, are as follows at September 30, 2018 and December 31, 2017:
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Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below presents the recorded amount of assets and liabilities measured on a recurring basis.
*All of the Company’s mortgage-backed securities are issued either by the U.S. Government, which includes GNMA pools, or by government-sponsored enterprises such as FNMA and FHLMC. |
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Impaired Loans Re-Measured and Reported at Fair Value | The following table presents impaired loans that were re-measured and reported at fair value through a specific valuation allowance allocation of the allowance for loan losses and a write-down based upon the fair value of the underlying collateral or discounted cash flows during the nine months ended September 30, 2018 and 2017.
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Assets Measured at Fair Value on Nonrecurring Basis | Assets measured at fair value on a nonrecurring basis are included in the table below.
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Quantitative Information About Level 3 Measurement | Quantitative Information About Level 3 Fair Value Measurements:
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Investment Securities (Tables) |
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Investment Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Fair Value of Available-for-sale Securities with Gross Unrealized Gains and Losses | The amortized cost and fair value of available-for-sale securities, with gross unrealized gains and losses, is as follows:
*All mortgage-backed securities are issued either by the U.S. Government through GNMA or by government sponsored enterprises FNMA or FHLMC. |
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Amortized Cost and Fair Value of Securities Available For Sale by Maturity | The amortized cost and fair values of securities available-for-sale at September 30, 2018 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
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Unrealized Losses and Related Fair Values of Investment Security Portfolio | The following table details unrealized losses and related fair values in the Company’s investment security portfolio. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2018 and December 31, 2017, respectively.
*All mortgage-backed securities are issued either by the U.S. Government through GNMA or by government-sponsored enterprises FNMA or FHLMC. |
Loans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Loans | The following is a summary of loans at September 30, 2018 and December 31, 2017:
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Non-accrual and Past Due Loans by Category | Non-accrual loans, segregated by category, were as follows:
An analysis of past due loans, segregated by class, was as follows:
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Impaired Loans by Class | Impaired loans are set forth in the following tables.
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Troubled Debt Restructurings, Breakdown by Types of Concessions and Types of Modifications Made by Loan Class | For the three and nine months ended September 30, 2018 and 2017, the following table presents a breakdown of the types of concessions made by loan class.
The following table presents loans that were modified as troubled debt restructurings within the previous 12 months and for which there was a payment default during the three and nine months ended September 30, 2017. The type labeled other includes concessions made to capitalize interest and extend interest only periods.
The following table presents the successes and failures of the types of modifications within the previous 12 months as of September 30, 2018 and 2017.
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Loans by Internally Assigned Risk Grades | The following table presents the credit risk profile by internally assigned risk grades.
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Details Activity in Allowance for Loan Losses by Portfolio Segment | The following table details activity in the allowance for loan losses by portfolio segment for the three months ended September 30, 2018 and 2017.
The following table details activity in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2018 and 2017.
The allocation of the allowance for loan losses for September 30, 2018 and December 31, 2017 is presented in the table below.
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Recorded Investment in Loans Related to Allowance for Credit Losses by Portfolio Segment and Impairment Methodology | The Company’s recorded investment in loans as of September 30, 2018 and December 31, 2017 related to each balance in the allowance for loan losses by portfolio segment and disaggregated on the Company’s impairment methodology was as follows:
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Related Party Loan Activity | A summary of related party loan activity for the nine months ended September 30, 2018 and 2017 is as follows:
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Foreclosed Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreclosed Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in Foreclosed Assets | The following table summarizes the activity in foreclosed assets for the nine month periods ended September 30, 2018 and 2017:
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Stock Option Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation Recognized as Compensation Expense | Total stock-based compensation recognized as compensation expense on our consolidated statement of income for the three and nine months ended September 30, 2018 and 2017 is as follows:
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Summary of Option Activity under Stock Option Plans | A summary of option activity under the stock option plans as of September 30, 2018 and changes during the period ended September 30, 2018 is presented below:
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Summary of Restricted Stock Activity | A summary of restricted stock activity during the three and nine months ended September 30, 2017 is presented below:
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Off-Balance Sheet Risk and Commitments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||
Off-Balance Sheet Risk and Commitments [Abstract] | |||||||||||||||||||||||||||||||
Summary of Contract Amount of the Exposure to Off-balance Sheet Credit Risk | A summary of the contract amount of the Company’s exposure to off-balance sheet credit risk as of September 30, 2018 is as follows:
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Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Recent accounting pronouncements [Abstract] | |||||
Type of cost, good or service [Extensible List] | cart:InterchangeFeeMember | ||||
Gross noninterest income | $ 145 | $ 118 | $ 397 | $ 361 | |
Related cost | 78 | 85 | $ 232 | 265 | |
Type of revenue [Extensible List] | cart:InterchangeFeeMember | ||||
Noninterest income | 67 | 33 | $ 165 | 96 | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Recent accounting pronouncements [Abstract] | |||||
Reclassification of loss on equity securities | $ 443 | $ 0 | $ 443 | $ 0 | |
ASU 2016-01 [Member] | Retained Earnings [Member] | |||||
Recent accounting pronouncements [Abstract] | |||||
Reclassification of loss on equity securities | $ (443) | ||||
ASU 2016-01 [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Recent accounting pronouncements [Abstract] | |||||
Reclassification of loss on equity securities | 443 | ||||
ASU 2016-02 [Member] | Operating Lease Expiring in 2019 [Member] | |||||
Recent accounting pronouncements [Abstract] | |||||
Payments under operating lease | 157 | ||||
ASU 2016-02 [Member] | Operating Lease Expiring in 2020 [Member] | |||||
Recent accounting pronouncements [Abstract] | |||||
Payments under operating lease | 126 | ||||
ASU 2016-02 [Member] | Operating Lease Expiring in 2021 [Member] | |||||
Recent accounting pronouncements [Abstract] | |||||
Payments under operating lease | $ 159 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
[1] | Jun. 30, 2013 |
|||
Diluted earnings per common share [Abstract] | |||||||||
Book value of warrant | $ 426 | $ 426 | $ 426 | ||||||
Net Income [Abstract] | |||||||||
Basic earnings per common share | 915 | $ 351 | 2,006 | $ 758 | |||||
Diluted earnings per common share | $ 915 | $ 351 | $ 2,006 | $ 758 | |||||
Weighted Average Common Shares [Abstract] | |||||||||
Basic earnings per common share (in shares) | 7,156,987 | 4,654,880 | 6,118,461 | 4,654,717 | |||||
Effect of dilutive stock options (in shares) | 72,609 | 73,545 | 75,598 | 69,168 | |||||
Effect of dilutive stock warrants (in shares) | 14,279 | 12,235 | 17,611 | 8,672 | |||||
Diluted earnings per common share (in shares) | 7,243,875 | 4,740,660 | 6,211,670 | 4,732,557 | |||||
Per Share Amount [Abstract] | |||||||||
Basic earnings per share (in dollars per share) | $ 0.13 | $ 0.08 | $ 0.33 | $ 0.16 | |||||
Diluted earnings per share (in dollars per share) | $ 0.13 | $ 0.07 | $ 0.32 | $ 0.16 | |||||
Common Stock Warrant [Member] | |||||||||
Diluted earnings per common share [Abstract] | |||||||||
Warrant issued (in shares) | 86,957 | ||||||||
Exercise price of warrant (in dollars per share) | $ 6.90 | ||||||||
Book value of warrant | $ 426 | ||||||||
Expiration date of warrant | Feb. 06, 2019 | ||||||||
Stock Option [Member] | |||||||||
Earnings per share [Abstract] | |||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 35,981 | 0 | 35,981 | |||||
|
Fair Value Measurements, Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
ASSETS [Abstract] | |||||
Available-for-sale securities | $ 29,992 | ||||
Equity securities | 749 | $ 0 | [1] | ||
Carrying Value [Member] | |||||
ASSETS [Abstract] | |||||
Cash and due from banks | 9,000 | 5,409 | |||
Interest-earning deposits with banks | 26,416 | 3,647 | |||
Certificates of deposit with banks | 1,498 | 1,498 | |||
Federal Home Loan Bank stock | 1,050 | 1,341 | |||
Available-for-sale securities | 29,992 | 31,112 | |||
Equity securities | 749 | ||||
Net loans | 376,821 | 345,080 | |||
Accrued interest receivable | 1,210 | 1,078 | |||
LIABILITIES [Abstract] | |||||
Deposits | 386,497 | 340,653 | |||
Capital lease obligation | 158 | 207 | |||
Federal Home Loan Bank advances | 16,100 | 23,600 | |||
Long term subordinated debt | 9,733 | 9,676 | |||
Accrued interest payable | 578 | 292 | |||
Fair Value [Member] | |||||
ASSETS [Abstract] | |||||
Cash and due from banks | 9,000 | 5,409 | |||
Interest-earning deposits with banks | 26,416 | 3,647 | |||
Certificates of deposit with banks | 1,474 | 1,519 | |||
Federal Home Loan Bank stock | 1,050 | 1,341 | |||
Available-for-sale securities | 29,992 | 31,112 | |||
Equity securities | 749 | ||||
Net loans | 365,056 | 345,370 | |||
Accrued interest receivable | 1,210 | 1,078 | |||
LIABILITIES [Abstract] | |||||
Deposits | 375,220 | 330,672 | |||
Capital lease obligation | 158 | 207 | |||
Federal Home Loan Bank advances | 16,008 | 23,495 | |||
Long term subordinated debt | 9,716 | 9,619 | |||
Accrued interest payable | 578 | 292 | |||
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||||
ASSETS [Abstract] | |||||
Cash and due from banks | 9,000 | 5,409 | |||
Interest-earning deposits with banks | 26,416 | 3,647 | |||
Certificates of deposit with banks | 0 | 0 | |||
Federal Home Loan Bank stock | 0 | 0 | |||
Available-for-sale securities | 0 | 626 | |||
Equity securities | 749 | ||||
Net loans | 0 | 0 | |||
Accrued interest receivable | 0 | 0 | |||
LIABILITIES [Abstract] | |||||
Deposits | 0 | 0 | |||
Capital lease obligation | 0 | 0 | |||
Federal Home Loan Bank advances | 0 | 0 | |||
Long term subordinated debt | 0 | 0 | |||
Accrued interest payable | 0 | 0 | |||
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
ASSETS [Abstract] | |||||
Cash and due from banks | 0 | 0 | |||
Interest-earning deposits with banks | 0 | 0 | |||
Certificates of deposit with banks | 1,474 | 1,519 | |||
Federal Home Loan Bank stock | 1,050 | 1,341 | |||
Available-for-sale securities | 29,992 | 30,486 | |||
Equity securities | 0 | ||||
Net loans | 0 | 0 | |||
Accrued interest receivable | 1,210 | 1,078 | |||
LIABILITIES [Abstract] | |||||
Deposits | 375,220 | 330,672 | |||
Capital lease obligation | 158 | 207 | |||
Federal Home Loan Bank advances | 16,008 | 23,495 | |||
Long term subordinated debt | 9,716 | 9,619 | |||
Accrued interest payable | 578 | 292 | |||
Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
ASSETS [Abstract] | |||||
Cash and due from banks | 0 | 0 | |||
Interest-earning deposits with banks | 0 | 0 | |||
Certificates of deposit with banks | 0 | 0 | |||
Federal Home Loan Bank stock | 0 | 0 | |||
Available-for-sale securities | 0 | 0 | |||
Equity securities | 0 | ||||
Net loans | 365,056 | 345,370 | |||
Accrued interest receivable | 0 | 0 | |||
LIABILITIES [Abstract] | |||||
Deposits | 0 | 0 | |||
Capital lease obligation | 0 | 0 | |||
Federal Home Loan Bank advances | 0 | 0 | |||
Long term subordinated debt | 0 | 0 | |||
Accrued interest payable | $ 0 | $ 0 | |||
|
Fair Value Measurements, Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
||||||||
---|---|---|---|---|---|---|---|---|---|---|
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | $ 29,992 | |||||||||
Equity securities | 749 | $ 0 | [1] | |||||||
Available-for-sale Securities | [1] | 31,112 | ||||||||
U.S. Government and Federal Agency [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | 10,612 | 11,276 | ||||||||
Mortgage-backed Securities [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | [2] | 19,095 | 18,915 | |||||||
Municipal Securities [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | 285 | 295 | ||||||||
Recurring [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | 29,992 | |||||||||
Equity securities | 749 | |||||||||
Available-for-sale Securities | 31,112 | |||||||||
Total | 30,741 | |||||||||
Recurring [Member] | Level 1 [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | 0 | |||||||||
Equity securities | 749 | |||||||||
Available-for-sale Securities | 626 | |||||||||
Total | 749 | |||||||||
Recurring [Member] | Level 2 [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | 29,992 | |||||||||
Equity securities | 0 | |||||||||
Available-for-sale Securities | 30,486 | |||||||||
Total | 29,992 | |||||||||
Recurring [Member] | Level 3 [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | 0 | |||||||||
Equity securities | 0 | |||||||||
Available-for-sale Securities | 0 | |||||||||
Total | 0 | |||||||||
Recurring [Member] | U.S. Government and Federal Agency [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | 10,612 | |||||||||
Available-for-sale Securities | 11,276 | |||||||||
Recurring [Member] | U.S. Government and Federal Agency [Member] | Level 1 [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | 0 | |||||||||
Available-for-sale Securities | 0 | |||||||||
Recurring [Member] | U.S. Government and Federal Agency [Member] | Level 2 [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | 10,612 | |||||||||
Available-for-sale Securities | 11,276 | |||||||||
Recurring [Member] | U.S. Government and Federal Agency [Member] | Level 3 [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | 0 | |||||||||
Available-for-sale Securities | 0 | |||||||||
Recurring [Member] | Mortgage-backed Securities [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | [3] | 19,095 | ||||||||
Available-for-sale Securities | [3] | 18,915 | ||||||||
Recurring [Member] | Mortgage-backed Securities [Member] | Level 1 [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | [3] | 0 | ||||||||
Available-for-sale Securities | [3] | 0 | ||||||||
Recurring [Member] | Mortgage-backed Securities [Member] | Level 2 [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | [3] | 19,095 | ||||||||
Available-for-sale Securities | [3] | 18,915 | ||||||||
Recurring [Member] | Mortgage-backed Securities [Member] | Level 3 [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | [3] | 0 | ||||||||
Available-for-sale Securities | [3] | 0 | ||||||||
Recurring [Member] | Municipal Securities [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | 285 | |||||||||
Available-for-sale Securities | 295 | |||||||||
Recurring [Member] | Municipal Securities [Member] | Level 1 [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | 0 | |||||||||
Available-for-sale Securities | 0 | |||||||||
Recurring [Member] | Municipal Securities [Member] | Level 2 [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | 285 | |||||||||
Available-for-sale Securities | 295 | |||||||||
Recurring [Member] | Municipal Securities [Member] | Level 3 [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale securities | $ 0 | |||||||||
Available-for-sale Securities | 0 | |||||||||
Recurring [Member] | Equity Securities [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale Securities | 626 | |||||||||
Recurring [Member] | Equity Securities [Member] | Level 1 [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale Securities | 626 | |||||||||
Recurring [Member] | Equity Securities [Member] | Level 2 [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale Securities | 0 | |||||||||
Recurring [Member] | Equity Securities [Member] | Level 3 [Member] | ||||||||||
Recorded amount of assets and liabilities measured on a recurring basis [Abstract] | ||||||||||
Available-for-sale Securities | $ 0 | |||||||||
|
Fair Value Measurements, Impaired Loans (Details) $ in Thousands |
Sep. 30, 2018
USD ($)
Loan
|
Dec. 31, 2017
USD ($)
Loan
|
Sep. 30, 2017
USD ($)
|
---|---|---|---|
Impaired loans [Abstract] | |||
Specific valuation allowance allocations | $ (233) | $ (248) | |
Discounted Cash Flows Method [Member] | |||
Impaired loans [Abstract] | |||
Number of Impaired Loans | Loan | 9 | 9 | |
Impaired loans | $ 1,700 | $ 1,900 | |
Collateral Method [Member] | |||
Impaired loans [Abstract] | |||
Number of Impaired Loans | Loan | 23 | 29 | |
Impaired loans | $ 2,500 | $ 4,200 | |
Nonrecurring [Member] | |||
Impaired loans [Abstract] | |||
Impaired loans | 1,121 | 1,621 | |
Nonrecurring [Member] | Level 2 [Member] | |||
Impaired loans [Abstract] | |||
Impaired loans | 0 | 0 | |
Carrying value of impaired loans before allocations | 0 | $ 0 | |
Specific valuation allowance allocations | 0 | 0 | |
Carrying value of impaired loans after allocations | 0 | 0 | |
Nonrecurring [Member] | Level 3 [Member] | |||
Impaired loans [Abstract] | |||
Impaired loans | 1,121 | $ 1,621 | |
Carrying value of impaired loans before allocations | 1,354 | 1,812 | |
Specific valuation allowance allocations | (233) | (251) | |
Carrying value of impaired loans after allocations | $ 1,121 | $ 1,561 |
Fair Value Measurements, Foreclosed Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Carrying Value [Member] | ||||
Foreclosed assets [Abstract] | ||||
Foreclosed assets written down prior to foreclosure | $ 0 | $ 1,158 | ||
Foreclosed assets written down subsequent to foreclosure | 640 | $ 0 | 1,618 | $ 0 |
Writedowns [Member] | ||||
Foreclosed assets [Abstract] | ||||
Foreclosed assets written down prior to foreclosure | 0 | 180 | ||
Foreclosed assets written down subsequent to foreclosure | 53 | 0 | 301 | 0 |
Fair Value [Member] | ||||
Foreclosed assets [Abstract] | ||||
Foreclosed assets written down prior to foreclosure | 0 | 978 | ||
Foreclosed assets written down subsequent to foreclosure | $ 587 | $ 0 | $ 1,317 | $ 0 |
Fair Value Measurements, Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Nonrecurring [Member] - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Assets [Abstract] | ||
Foreclosed assets | $ 1,317 | $ 324 |
Impaired loans | 1,121 | 1,621 |
Total | 2,438 | 1,945 |
Level 1 [Member] | ||
Assets [Abstract] | ||
Foreclosed assets | 0 | 0 |
Impaired loans | 0 | 0 |
Total | 0 | 0 |
Level 2 [Member] | ||
Assets [Abstract] | ||
Foreclosed assets | 0 | 0 |
Impaired loans | 0 | 0 |
Total | 0 | 0 |
Level 3 [Member] | ||
Assets [Abstract] | ||
Foreclosed assets | 1,317 | 324 |
Impaired loans | 1,121 | 1,621 |
Total | $ 2,438 | $ 1,945 |
Fair Value Measurements, Quantitative Information About Level 3 (Details) $ in Thousands |
Sep. 30, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
---|---|---|
Discounted Cash Flows [Member] | ||
Quantitative information about level 3 fair value measurements [Abstract] | ||
Impaired loans | $ 1,700 | $ 1,900 |
Nonrecurring [Member] | ||
Quantitative information about level 3 fair value measurements [Abstract] | ||
Impaired loans | 1,121 | 1,621 |
Foreclosed assets | 1,317 | 324 |
Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Quantitative information about level 3 fair value measurements [Abstract] | ||
Impaired loans | 1,121 | 1,621 |
Foreclosed assets | $ 1,317 | $ 324 |
Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Appraisal Adjustments [Member] | ||
Quantitative information about level 3 fair value measurements [Abstract] | ||
Foreclosed assets, unobservable input | 0.1500 | |
Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Discounted Cash Flows [Member] | Discount Rate [Member] | Minimum [Member] | ||
Quantitative information about level 3 fair value measurements [Abstract] | ||
Impaired loans, unobservable input | 0.0475 | |
Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Discounted Cash Flows [Member] | Discount Rate [Member] | Maximum [Member] | ||
Quantitative information about level 3 fair value measurements [Abstract] | ||
Impaired loans, unobservable input | 0.0850 | |
Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Discounted Cash Flows [Member] | Discount Rate [Member] | Weighted Average [Member] | ||
Quantitative information about level 3 fair value measurements [Abstract] | ||
Impaired loans, unobservable input | 0.0718 | |
Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Discounted Appraisals [Member] | Appraisal Adjustments [Member] | Minimum [Member] | ||
Quantitative information about level 3 fair value measurements [Abstract] | ||
Foreclosed assets, unobservable input | 0.0600 | |
Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Discounted Appraisals [Member] | Appraisal Adjustments [Member] | Maximum [Member] | ||
Quantitative information about level 3 fair value measurements [Abstract] | ||
Foreclosed assets, unobservable input | 0.0800 | |
Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Discounted Appraisals [Member] | Appraisal Adjustments [Member] | Weighted Average [Member] | ||
Quantitative information about level 3 fair value measurements [Abstract] | ||
Foreclosed assets, unobservable input | 0.0712 | 0.1500 |
Impaired Loans #1 [Member] | Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Quantitative information about level 3 fair value measurements [Abstract] | ||
Impaired loans | $ 101 | |
Impaired Loans #1 [Member] | Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Discounted Appraisals [Member] | Appraisal Adjustments [Member] | Minimum [Member] | ||
Quantitative information about level 3 fair value measurements [Abstract] | ||
Impaired loans, unobservable input | 0.2000 | |
Impaired Loans #1 [Member] | Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Discounted Appraisals [Member] | Appraisal Adjustments [Member] | Maximum [Member] | ||
Quantitative information about level 3 fair value measurements [Abstract] | ||
Impaired loans, unobservable input | 0.2500 | |
Impaired Loans #1 [Member] | Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Discounted Appraisals [Member] | Appraisal Adjustments [Member] | Weighted Average [Member] | ||
Quantitative information about level 3 fair value measurements [Abstract] | ||
Impaired loans, unobservable input | 0.2333 | |
Impaired Loans #2 [Member] | Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Quantitative information about level 3 fair value measurements [Abstract] | ||
Impaired loans | $ 1,520 | |
Impaired Loans #2 [Member] | Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Discounted Cash Flows [Member] | Discount Rate [Member] | Minimum [Member] | ||
Quantitative information about level 3 fair value measurements [Abstract] | ||
Impaired loans, unobservable input | 0.0475 | |
Impaired Loans #2 [Member] | Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Discounted Cash Flows [Member] | Discount Rate [Member] | Maximum [Member] | ||
Quantitative information about level 3 fair value measurements [Abstract] | ||
Impaired loans, unobservable input | 0.0850 | |
Impaired Loans #2 [Member] | Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Discounted Cash Flows [Member] | Discount Rate [Member] | Weighted Average [Member] | ||
Quantitative information about level 3 fair value measurements [Abstract] | ||
Impaired loans, unobservable input | 0.0706 |
Investment Securities, Amortized Cost, Fair Values, and Unrealized Gains and Losses of Securities (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||||
---|---|---|---|---|---|---|---|
Amortized cost and fair value of debt securities available for sale, with gross unrealized gains and losses [Abstract] | |||||||
Amortized cost | $ 31,180 | ||||||
Unrealized gains | 19 | ||||||
Unrealized losses | (1,207) | ||||||
Fair value | 29,992 | ||||||
Amortized cost and fair value of securities available for sale, with gross unrealized gains and losses [Abstract] | |||||||
Amortized cost | [1] | $ 32,067 | |||||
Unrealized gains | 72 | ||||||
Unrealized losses | (1,027) | ||||||
Fair value | [1] | 31,112 | |||||
U.S. Government and Federal Agency [Member] | |||||||
Amortized cost and fair value of debt securities available for sale, with gross unrealized gains and losses [Abstract] | |||||||
Amortized cost | 11,076 | 11,424 | |||||
Unrealized gains | 4 | 11 | |||||
Unrealized losses | (468) | (159) | |||||
Fair value | 10,612 | 11,276 | |||||
Mortgage-backed Securities [Member] | |||||||
Amortized cost and fair value of debt securities available for sale, with gross unrealized gains and losses [Abstract] | |||||||
Amortized cost | [2] | 19,811 | 19,142 | ||||
Unrealized gains | [2] | 15 | 61 | ||||
Unrealized losses | [2] | (731) | (288) | ||||
Fair value | [2] | 19,095 | 18,915 | ||||
Municipal Securities [Member] | |||||||
Amortized cost and fair value of debt securities available for sale, with gross unrealized gains and losses [Abstract] | |||||||
Amortized cost | 293 | 297 | |||||
Unrealized gains | 0 | 0 | |||||
Unrealized losses | (8) | (2) | |||||
Fair value | $ 285 | 295 | |||||
Equity Securities [Member] | |||||||
Amortized cost and fair value of equity securities available for sale, with gross unrealized gains and losses [Abstract] | |||||||
Amortized cost | 1,204 | ||||||
Unrealized gains | 0 | ||||||
Unrealized losses | (578) | ||||||
Fair value | $ 626 | ||||||
|
Investment Securities, Contractual Maturity (Details) $ in Thousands |
Sep. 30, 2018
USD ($)
|
---|---|
Amortized Cost [Abstract] | |
Due within one year | $ 0 |
Due after one but within five years | 8,351 |
Due after five but within ten years | 6,740 |
Due after ten years | 16,089 |
Amortized cost | 31,180 |
Fair Value [Abstract] | |
Due within one year | 0 |
Due after one but within five years | 8,043 |
Due after five but within ten years | 6,439 |
Due after ten years | 15,510 |
Fair value | $ 29,992 |
Investment Securities, Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
||||
Available-for-sale, Debt Securities, Fair Value and Gross Unrealized Losses [Abstract] | ||||||
Less than 12 months, fair value | $ 7,484 | |||||
Less than 12 months, unrealized losses | (162) | |||||
Greater than 12 months, fair value | 20,731 | |||||
Greater than 12 months, unrealized losses | (1,045) | |||||
Total, fair value | 28,215 | |||||
Total, unrealized losses | (1,207) | |||||
Available-for-sale Securities, Fair Value and Gross Unrealized Losses [Abstract] | ||||||
Less than 12 months, fair value | $ 13,494 | |||||
Less than 12 months, unrealized losses | (705) | |||||
Greater than 12 months, fair value | 12,568 | |||||
Greater than 12 months, unrealized losses | (322) | |||||
Total, fair value | 26,062 | |||||
Total, unrealized Losses | (1,027) | |||||
Proceeds from sales and calls of securities [Abstract] | ||||||
Proceeds from sales of securities | 0 | $ 0 | ||||
Pledged [Member] | ||||||
Available-for-sale Securities, Fair Value and Gross Unrealized Losses [Abstract] | ||||||
Fair value of securities pledged to secure public funds | 926 | |||||
U.S. Government and Federal Agency [Member] | ||||||
Available-for-sale, Debt Securities, Fair Value and Gross Unrealized Losses [Abstract] | ||||||
Less than 12 months, fair value | 1,917 | 7,101 | ||||
Less than 12 months, unrealized losses | (73) | (88) | ||||
Greater than 12 months, fair value | 8,554 | 2,008 | ||||
Greater than 12 months, unrealized losses | (395) | (71) | ||||
Total, fair value | 10,471 | 9,109 | ||||
Total, unrealized losses | (468) | (159) | ||||
Mortgage-backed Securities [Member] | ||||||
Available-for-sale, Debt Securities, Fair Value and Gross Unrealized Losses [Abstract] | ||||||
Less than 12 months, fair value | [1] | 5,567 | 5,472 | |||
Less than 12 months, unrealized losses | [1] | (89) | (38) | |||
Greater than 12 months, fair value | [1] | 11,892 | 10,560 | |||
Greater than 12 months, unrealized losses | [1] | (642) | (250) | |||
Total, fair value | [1] | 17,459 | 16,032 | |||
Total, unrealized losses | [1] | (731) | (288) | |||
Municipal Securities [Member] | ||||||
Available-for-sale, Debt Securities, Fair Value and Gross Unrealized Losses [Abstract] | ||||||
Less than 12 months, fair value | 0 | 295 | ||||
Less than 12 months, unrealized losses | 0 | (2) | ||||
Greater than 12 months, fair value | 285 | 0 | ||||
Greater than 12 months, unrealized losses | (8) | 0 | ||||
Total, fair value | 285 | 295 | ||||
Total, unrealized losses | $ (8) | (2) | ||||
Equity Securities [Member] | ||||||
Available-for-sale Securities, Fair Value and Gross Unrealized Losses [Abstract] | ||||||
Less than 12 months, fair value | 626 | |||||
Less than 12 months, unrealized losses | (577) | |||||
Greater than 12 months, fair value | 0 | |||||
Greater than 12 months, unrealized losses | (1) | |||||
Total, fair value | 626 | |||||
Total, unrealized Losses | $ (578) | |||||
|
Loans, Summary of Loans (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Summary of loans [Abstract] | |||||
Total loans | $ 380,746 | $ 348,679 | [1] | ||
Percent of total | 100.00% | 100.00% | |||
Commercial Real Estate [Member] | |||||
Summary of loans [Abstract] | |||||
Total loans | $ 242,075 | $ 213,322 | |||
Percent of total | 63.58% | 61.18% | |||
Commercial Real Estate [Member] | Residential ADC [Member] | |||||
Summary of loans [Abstract] | |||||
Total loans | $ 4,610 | $ 7,242 | |||
Percent of total | 1.21% | 2.08% | |||
Commercial Real Estate [Member] | Commercial ADC [Member] | |||||
Summary of loans [Abstract] | |||||
Total loans | $ 23,293 | $ 24,364 | |||
Percent of total | 6.12% | 6.99% | |||
Commercial Real Estate [Member] | Farmland [Member] | |||||
Summary of loans [Abstract] | |||||
Total loans | $ 5,322 | $ 5,392 | |||
Percent of total | 1.40% | 1.55% | |||
Commercial Real Estate [Member] | Multifamily [Member] | |||||
Summary of loans [Abstract] | |||||
Total loans | $ 16,099 | $ 11,967 | |||
Percent of total | 4.23% | 3.43% | |||
Commercial Real Estate [Member] | Owner Occupied [Member] | |||||
Summary of loans [Abstract] | |||||
Total loans | $ 97,982 | $ 84,808 | |||
Percent of total | 25.73% | 24.32% | |||
Commercial Real Estate [Member] | Non-owner Occupied [Member] | |||||
Summary of loans [Abstract] | |||||
Total loans | $ 94,769 | $ 79,549 | |||
Percent of total | 24.89% | 22.81% | |||
Commercial [Member] | |||||
Summary of loans [Abstract] | |||||
Total loans | $ 48,666 | $ 48,867 | |||
Percent of total | 12.78% | 14.01% | |||
Commercial [Member] | Commercial and Industrial [Member] | |||||
Summary of loans [Abstract] | |||||
Total loans | $ 46,767 | $ 47,032 | |||
Percent of total | 12.28% | 13.49% | |||
Commercial [Member] | Agricultural [Member] | |||||
Summary of loans [Abstract] | |||||
Total loans | $ 296 | $ 415 | |||
Percent of total | 0.08% | 0.12% | |||
Commercial [Member] | Other [Member] | |||||
Summary of loans [Abstract] | |||||
Total loans | $ 1,603 | $ 1,420 | |||
Percent of total | 0.42% | 0.40% | |||
Residential Mortgage [Member] | |||||
Summary of loans [Abstract] | |||||
Total loans | $ 51,943 | $ 49,059 | |||
Percent of total | 13.64% | 14.07% | |||
Residential Mortgage [Member] | First Lien, Closed-End [Member] | |||||
Summary of loans [Abstract] | |||||
Total loans | $ 51,240 | $ 47,936 | |||
Percent of total | 13.46% | 13.75% | |||
Residential Mortgage [Member] | Junior Lien, Closed-End [Member] | |||||
Summary of loans [Abstract] | |||||
Total loans | $ 703 | $ 1,123 | |||
Percent of total | 0.18% | 0.32% | |||
Home Equity Lines [Member] | |||||
Summary of loans [Abstract] | |||||
Total loans | $ 34,110 | $ 33,672 | |||
Percent of total | 8.96% | 9.66% | |||
Consumer - Other [Member] | |||||
Summary of loans [Abstract] | |||||
Total loans | $ 3,952 | $ 3,759 | |||
Percent of total | 1.04% | 1.08% | |||
|
Loans, Non-Accrual and Past Due Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Non-accrual loans, segregated by category [Abstract] | |||||
Total non-accrual loans | $ 1,057 | $ 1,057 | $ 2,664 | ||
Interest forgone on non-accrual loans | 22 | $ 48 | 59 | $ 85 | |
Commercial Real Estate [Member] | |||||
Non-accrual loans, segregated by category [Abstract] | |||||
Total non-accrual loans | 952 | 952 | 2,064 | ||
Commercial Real Estate [Member] | Commercial ADC [Member] | |||||
Non-accrual loans, segregated by category [Abstract] | |||||
Total non-accrual loans | 3 | 3 | 5 | ||
Commercial Real Estate [Member] | Owner Occupied [Member] | |||||
Non-accrual loans, segregated by category [Abstract] | |||||
Total non-accrual loans | 944 | 944 | 2,031 | ||
Commercial Real Estate [Member] | Non-owner Occupied [Member] | |||||
Non-accrual loans, segregated by category [Abstract] | |||||
Total non-accrual loans | 5 | 5 | 28 | ||
Commercial [Member] | |||||
Non-accrual loans, segregated by category [Abstract] | |||||
Total non-accrual loans | 0 | 0 | 25 | ||
Commercial [Member] | Commercial and Industrial [Member] | |||||
Non-accrual loans, segregated by category [Abstract] | |||||
Total non-accrual loans | 0 | 0 | 25 | ||
Residential Mortgage [Member] | |||||
Non-accrual loans, segregated by category [Abstract] | |||||
Total non-accrual loans | 67 | 67 | 541 | ||
Residential Mortgage [Member] | First Lien, Closed-End [Member] | |||||
Non-accrual loans, segregated by category [Abstract] | |||||
Total non-accrual loans | 62 | 62 | 86 | ||
Residential Mortgage [Member] | Junior Lien, Closed-End [Member] | |||||
Non-accrual loans, segregated by category [Abstract] | |||||
Total non-accrual loans | 5 | 5 | 455 | ||
Home Equity Lines [Member] | |||||
Non-accrual loans, segregated by category [Abstract] | |||||
Total non-accrual loans | 29 | 29 | 34 | ||
Consumer - Other [Member] | |||||
Non-accrual loans, segregated by category [Abstract] | |||||
Total non-accrual loans | $ 9 | $ 9 | $ 0 |
Loans, Analysis of Past Due Loans (Details) $ in Thousands |
Sep. 30, 2018
USD ($)
Loan
|
Dec. 31, 2017
USD ($)
Loan
|
|||
---|---|---|---|---|---|
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | $ 1,742 | $ 3,288 | |||
Current loans | 379,004 | 345,391 | |||
Total loans | 380,746 | 348,679 | [1] | ||
Accruing loans 90 or more days past due | 0 | 82 | |||
30-89 Days Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 760 | 658 | |||
90 Days or More Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | $ 982 | $ 2,630 | |||
Number of loans past due for 90 days accruing interest | Loan | 0 | 2 | |||
Commercial Real Estate [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | $ 1,313 | $ 2,416 | |||
Current loans | 240,762 | 210,906 | |||
Total loans | 242,075 | 213,322 | |||
Accruing loans 90 or more days past due | 0 | 0 | |||
Commercial Real Estate [Member] | 30-89 Days Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 375 | 398 | |||
Commercial Real Estate [Member] | 90 Days or More Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 938 | 2,018 | |||
Commercial Real Estate [Member] | Residential ADC [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 0 | |||
Current loans | 4,610 | 7,242 | |||
Total loans | 4,610 | 7,242 | |||
Accruing loans 90 or more days past due | 0 | 0 | |||
Commercial Real Estate [Member] | Residential ADC [Member] | 30-89 Days Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 0 | |||
Commercial Real Estate [Member] | Residential ADC [Member] | 90 Days or More Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 0 | |||
Commercial Real Estate [Member] | Commercial ADC [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 41 | 0 | |||
Current loans | 23,252 | 24,364 | |||
Total loans | 23,293 | 24,364 | |||
Accruing loans 90 or more days past due | 0 | 0 | |||
Commercial Real Estate [Member] | Commercial ADC [Member] | 30-89 Days Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 41 | 0 | |||
Commercial Real Estate [Member] | Commercial ADC [Member] | 90 Days or More Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 0 | |||
Commercial Real Estate [Member] | Farmland [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 0 | |||
Current loans | 5,322 | 5,392 | |||
Total loans | 5,322 | 5,392 | |||
Accruing loans 90 or more days past due | 0 | 0 | |||
Commercial Real Estate [Member] | Farmland [Member] | 30-89 Days Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 0 | |||
Commercial Real Estate [Member] | Farmland [Member] | 90 Days or More Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 0 | |||
Commercial Real Estate [Member] | Multifamily [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 0 | |||
Current loans | 16,099 | 11,967 | |||
Total loans | 16,099 | 11,967 | |||
Accruing loans 90 or more days past due | 0 | 0 | |||
Commercial Real Estate [Member] | Multifamily [Member] | 30-89 Days Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 0 | |||
Commercial Real Estate [Member] | Multifamily [Member] | 90 Days or More Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 0 | |||
Commercial Real Estate [Member] | Owner Occupied [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 1,267 | 2,272 | |||
Current loans | 96,715 | 82,536 | |||
Total loans | 97,982 | 84,808 | |||
Accruing loans 90 or more days past due | 0 | 0 | |||
Commercial Real Estate [Member] | Owner Occupied [Member] | 30-89 Days Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 329 | 254 | |||
Commercial Real Estate [Member] | Owner Occupied [Member] | 90 Days or More Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 938 | 2,018 | |||
Commercial Real Estate [Member] | Non-owner Occupied [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 5 | 144 | |||
Current loans | 94,764 | 79,405 | |||
Total loans | 94,769 | 79,549 | |||
Accruing loans 90 or more days past due | 0 | 0 | |||
Commercial Real Estate [Member] | Non-owner Occupied [Member] | 30-89 Days Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 5 | 144 | |||
Commercial Real Estate [Member] | Non-owner Occupied [Member] | 90 Days or More Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 0 | |||
Commercial [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 128 | 25 | |||
Current loans | 48,538 | 48,842 | |||
Total loans | 48,666 | 48,867 | |||
Accruing loans 90 or more days past due | 0 | 0 | |||
Commercial [Member] | 30-89 Days Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 128 | 0 | |||
Commercial [Member] | 90 Days or More Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 25 | |||
Commercial [Member] | Commercial and Industrial [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 128 | 25 | |||
Current loans | 46,639 | 47,007 | |||
Total loans | 46,767 | 47,032 | |||
Accruing loans 90 or more days past due | 0 | 0 | |||
Commercial [Member] | Commercial and Industrial [Member] | 30-89 Days Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 128 | 0 | |||
Commercial [Member] | Commercial and Industrial [Member] | 90 Days or More Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 25 | |||
Commercial [Member] | Agricultural [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 0 | |||
Current loans | 296 | 415 | |||
Total loans | 296 | 415 | |||
Accruing loans 90 or more days past due | 0 | 0 | |||
Commercial [Member] | Agricultural [Member] | 30-89 Days Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 0 | |||
Commercial [Member] | Agricultural [Member] | 90 Days or More Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 0 | |||
Commercial [Member] | Other [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 0 | |||
Current loans | 1,603 | 1,420 | |||
Total loans | 1,603 | 1,420 | |||
Accruing loans 90 or more days past due | 0 | 0 | |||
Commercial [Member] | Other [Member] | 30-89 Days Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 0 | |||
Commercial [Member] | Other [Member] | 90 Days or More Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 0 | |||
Residential Mortgage [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 198 | 634 | |||
Current loans | 51,745 | 48,425 | |||
Total loans | 51,943 | 49,059 | |||
Accruing loans 90 or more days past due | 0 | 79 | |||
Residential Mortgage [Member] | 30-89 Days Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 161 | 50 | |||
Residential Mortgage [Member] | 90 Days or More Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 37 | 584 | |||
Residential Mortgage [Member] | First Lien, Closed-End [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 198 | 185 | |||
Current loans | 51,042 | 47,751 | |||
Total loans | 51,240 | 47,936 | |||
Accruing loans 90 or more days past due | 0 | 79 | |||
Residential Mortgage [Member] | First Lien, Closed-End [Member] | 30-89 Days Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 161 | 50 | |||
Residential Mortgage [Member] | First Lien, Closed-End [Member] | 90 Days or More Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 37 | 135 | |||
Residential Mortgage [Member] | Junior Lien, Closed-End [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 449 | |||
Current loans | 703 | 674 | |||
Total loans | 703 | 1,123 | |||
Accruing loans 90 or more days past due | 0 | 0 | |||
Residential Mortgage [Member] | Junior Lien, Closed-End [Member] | 30-89 Days Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 0 | |||
Residential Mortgage [Member] | Junior Lien, Closed-End [Member] | 90 Days or More Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 449 | |||
Home Equity Lines [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 86 | 203 | |||
Current loans | 34,024 | 33,469 | |||
Total loans | 34,110 | 33,672 | |||
Accruing loans 90 or more days past due | 0 | 3 | |||
Home Equity Lines [Member] | 30-89 Days Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 86 | 200 | |||
Home Equity Lines [Member] | 90 Days or More Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 0 | 3 | |||
Consumer - Other [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 17 | 10 | |||
Current loans | 3,935 | 3,749 | |||
Total loans | 3,952 | 3,759 | |||
Accruing loans 90 or more days past due | 0 | 0 | |||
Consumer - Other [Member] | 30-89 Days Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | 10 | 10 | |||
Consumer - Other [Member] | 90 Days or More Past Due [Member] | |||||
Analysis of past due loans, segregated by class [Abstract] | |||||
Past due | $ 7 | $ 0 | |||
|
Loans, Impaired Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Impaired loans [Abstract] | |||||
Unpaid contractual principal balance | $ 4,557 | $ 4,557 | $ 6,595 | ||
Recorded investment with no allowance | 3,099 | 3,099 | 4,589 | ||
Recorded investment with allowance | 1,354 | 1,354 | 1,768 | ||
Related allowance | 233 | 233 | 248 | ||
Average recorded investment | 1,138 | $ 8,102 | 4,958 | $ 6,506 | |
Interest income recognized | 53 | 70 | 159 | 197 | |
Commercial Real Estate [Member] | |||||
Impaired loans [Abstract] | |||||
Unpaid contractual principal balance | 2,450 | 2,450 | 3,753 | ||
Recorded investment with no allowance | 2,450 | 2,450 | 3,623 | ||
Recorded investment with allowance | 0 | 0 | 0 | ||
Related allowance | 0 | 0 | 0 | ||
Average recorded investment | 621 | 4,627 | 2,734 | 3,591 | |
Interest income recognized | 20 | 40 | 10 | 94 | |
Commercial Real Estate [Member] | Commercial ADC [Member] | |||||
Impaired loans [Abstract] | |||||
Unpaid contractual principal balance | 4 | 4 | 4 | ||
Recorded investment with no allowance | 4 | 4 | 4 | ||
Recorded investment with allowance | 0 | 0 | 0 | ||
Related allowance | 0 | 0 | 0 | ||
Average recorded investment | 1 | 746 | 7 | 1,061 | |
Interest income recognized | 0 | 0 | 0 | 0 | |
Commercial Real Estate [Member] | Farmland [Member] | |||||
Impaired loans [Abstract] | |||||
Average recorded investment | 0 | 30 | 0 | 31 | |
Interest income recognized | 0 | 0 | 0 | 0 | |
Commercial Real Estate [Member] | Multifamily [Member] | |||||
Impaired loans [Abstract] | |||||
Average recorded investment | 0 | 147 | 57 | 124 | |
Interest income recognized | 0 | 0 | 0 | 0 | |
Commercial Real Estate [Member] | Owner Occupied [Member] | |||||
Impaired loans [Abstract] | |||||
Unpaid contractual principal balance | 2,441 | 2,441 | 3,721 | ||
Recorded investment with no allowance | 2,441 | 2,441 | 3,591 | ||
Recorded investment with allowance | 0 | 0 | 0 | ||
Related allowance | 0 | 0 | 0 | ||
Average recorded investment | 619 | 3,482 | 2,658 | 2,284 | |
Interest income recognized | 20 | 40 | 10 | 94 | |
Commercial Real Estate [Member] | Non-owner Occupied [Member] | |||||
Impaired loans [Abstract] | |||||
Unpaid contractual principal balance | 5 | 5 | 28 | ||
Recorded investment with no allowance | 5 | 5 | 28 | ||
Recorded investment with allowance | 0 | 0 | 0 | ||
Related allowance | 0 | 0 | 0 | ||
Average recorded investment | 1 | 222 | 12 | 91 | |
Interest income recognized | 0 | 0 | 0 | 0 | |
Commercial [Member] | Commercial and Industrial [Member] | |||||
Impaired loans [Abstract] | |||||
Unpaid contractual principal balance | 648 | 648 | 766 | ||
Recorded investment with no allowance | 278 | 278 | 25 | ||
Recorded investment with allowance | 370 | 370 | 741 | ||
Related allowance | 103 | 103 | 144 | ||
Average recorded investment | 171 | 1,005 | 711 | 1,271 | |
Interest income recognized | 11 | 13 | 18 | 45 | |
Residential Mortgage [Member] | |||||
Impaired loans [Abstract] | |||||
Unpaid contractual principal balance | 1,319 | 1,319 | 1,924 | ||
Recorded investment with no allowance | 277 | 277 | 835 | ||
Recorded investment with allowance | 983 | 983 | 1,026 | ||
Related allowance | 129 | 129 | 103 | ||
Average recorded investment | 323 | 2,351 | 1,411 | 1,532 | |
Interest income recognized | 21 | 16 | 112 | 53 | |
Residential Mortgage [Member] | First Lien, Closed-End [Member] | |||||
Impaired loans [Abstract] | |||||
Unpaid contractual principal balance | 894 | 894 | 1,040 | ||
Recorded investment with no allowance | 62 | 62 | 165 | ||
Recorded investment with allowance | 773 | 773 | 811 | ||
Related allowance | 47 | 47 | 24 | ||
Average recorded investment | 216 | 1,461 | 892 | 1,196 | |
Interest income recognized | 16 | 13 | 96 | 44 | |
Residential Mortgage [Member] | Junior Lien, Closed-End [Member] | |||||
Impaired loans [Abstract] | |||||
Unpaid contractual principal balance | 425 | 425 | 884 | ||
Recorded investment with no allowance | 215 | 215 | 670 | ||
Recorded investment with allowance | 210 | 210 | 215 | ||
Related allowance | 82 | 82 | 79 | ||
Average recorded investment | 107 | 890 | 519 | 336 | |
Interest income recognized | 5 | 3 | 16 | 9 | |
Home Equity Lines [Member] | |||||
Impaired loans [Abstract] | |||||
Unpaid contractual principal balance | 132 | 132 | 151 | ||
Recorded investment with no allowance | 87 | 87 | 106 | ||
Recorded investment with allowance | 0 | 0 | 0 | ||
Related allowance | 0 | 0 | 0 | ||
Average recorded investment | 22 | 119 | 96 | 111 | |
Interest income recognized | 1 | 1 | 2 | 5 | |
Consumer - Other [Member] | |||||
Impaired loans [Abstract] | |||||
Unpaid contractual principal balance | 8 | 8 | 1 | ||
Recorded investment with no allowance | 7 | 7 | 0 | ||
Recorded investment with allowance | 1 | 1 | 1 | ||
Related allowance | 1 | 1 | $ 1 | ||
Average recorded investment | 1 | 0 | 6 | 1 | |
Interest income recognized | $ 0 | $ 0 | $ 17 | $ 0 |
Loans, Troubled Debt Restructurings (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
Loan
|
Sep. 30, 2017
USD ($)
Loan
|
Sep. 30, 2018
USD ($)
Loan
|
Sep. 30, 2017
USD ($)
Loan
|
Dec. 31, 2017
USD ($)
Loan
|
|
Troubled debt restructurings [Abstract] | |||||
Impaired TDR loans, number of loans | Loan | 11 | 11 | 10 | ||
Impaired TDR loans | $ 3,925 | $ 3,925 | $ 4,163 | ||
Unfunded commitments | $ 0 | $ 0 | $ 0 | ||
Number of TDR loans accruing interest | Loan | 9 | 9 | 9 | ||
TDR loan accruing interest | $ 3,200 | $ 3,200 | $ 3,398 | ||
Breakdown of TDRs by types of concessions made by loan class [Abstract] | |||||
Number of loans | Loan | 0 | 0 | 1 | 2 | |
Unpaid principal pre-modification | $ 0 | $ 0 | $ 1 | $ 636 | |
Post-modification outstanding recorded investment | $ 0 | $ 0 | $ 1 | $ 433 | |
TDR loans as percentage of total loan balance | 1.00% | 1.00% | |||
Extended Payment Terms [Member] | |||||
Breakdown of TDRs by types of concessions made by loan class [Abstract] | |||||
Number of loans | Loan | 0 | 1 | |||
Unpaid principal pre-modification | $ 0 | $ 1 | |||
Post-modification outstanding recorded investment | $ 0 | $ 1 | |||
Forgiveness of Principal [Member] | |||||
Breakdown of TDRs by types of concessions made by loan class [Abstract] | |||||
Number of loans | Loan | 0 | 2 | |||
Unpaid principal pre-modification | $ 0 | $ 636 | |||
Post-modification outstanding recorded investment | $ 0 | $ 433 | |||
Consumer - Other [Member] | Extended Payment Terms [Member] | |||||
Breakdown of TDRs by types of concessions made by loan class [Abstract] | |||||
Number of loans | Loan | 0 | 1 | |||
Unpaid principal pre-modification | $ 0 | $ 1 | |||
Post-modification outstanding recorded investment | $ 0 | $ 1 | |||
Residential Mortgage [Member] | Forgiveness of Principal [Member] | |||||
Breakdown of TDRs by types of concessions made by loan class [Abstract] | |||||
Number of loans | Loan | 0 | 2 | |||
Unpaid principal pre-modification | $ 0 | $ 636 | |||
Post-modification outstanding recorded investment | $ 0 | $ 433 | |||
Residential Mortgage [Member] | Forgiveness of Principal [Member] | Junior Lien, Closed-End [Member] | |||||
Breakdown of TDRs by types of concessions made by loan class [Abstract] | |||||
Number of loans | Loan | 0 | 2 | |||
Unpaid principal pre-modification | $ 0 | $ 636 | |||
Post-modification outstanding recorded investment | $ 0 | $ 433 |
Loans, Successes and Failures of Types of Modifications (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018
USD ($)
Loan
|
Sep. 30, 2017
USD ($)
Loan
|
Sep. 30, 2018
USD ($)
Loan
|
Sep. 30, 2017
USD ($)
Loan
|
|
TDRs, subsequent default [Abstract] | ||||
Number of loans | 0 | 0 | 0 | 1 |
Recorded investment | $ | $ 0 | $ 136 | ||
Successes and failures of types of modifications within previous 12 months [Abstract] | ||||
Number of loans | 0 | 0 | 1 | 2 |
Extended Payment Terms [Member] | ||||
Successes and failures of types of modifications within previous 12 months [Abstract] | ||||
Number of loans | 0 | 1 | ||
Forgiveness of Principal [Member] | ||||
Successes and failures of types of modifications within previous 12 months [Abstract] | ||||
Number of loans | 0 | 2 | ||
Paid in Full [Member] | ||||
Successes and failures of types of modifications within previous 12 months [Abstract] | ||||
Number of loans | 0 | 0 | ||
Recorded investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Paid in Full [Member] | Extended Payment Terms [Member] | ||||
Successes and failures of types of modifications within previous 12 months [Abstract] | ||||
Number of loans | 0 | |||
Recorded investment | $ | 0 | $ 0 | ||
Paid in Full [Member] | Forgiveness of Principal [Member] | ||||
Successes and failures of types of modifications within previous 12 months [Abstract] | ||||
Number of loans | 0 | 0 | ||
Recorded investment | $ | 0 | 0 | $ 0 | $ 0 |
Paid in Full [Member] | Other [Member] | ||||
Successes and failures of types of modifications within previous 12 months [Abstract] | ||||
Number of loans | 0 | |||
Recorded investment | $ | 0 | $ 0 | ||
Paying as Restructured [Member] | ||||
Successes and failures of types of modifications within previous 12 months [Abstract] | ||||
Number of loans | 1 | 2 | ||
Recorded investment | $ | 1 | 433 | $ 1 | $ 433 |
Paying as Restructured [Member] | Extended Payment Terms [Member] | ||||
Successes and failures of types of modifications within previous 12 months [Abstract] | ||||
Number of loans | 1 | |||
Recorded investment | $ | 1 | $ 1 | ||
Paying as Restructured [Member] | Forgiveness of Principal [Member] | ||||
Successes and failures of types of modifications within previous 12 months [Abstract] | ||||
Number of loans | 0 | 2 | ||
Recorded investment | $ | 0 | 433 | $ 0 | $ 433 |
Paying as Restructured [Member] | Other [Member] | ||||
Successes and failures of types of modifications within previous 12 months [Abstract] | ||||
Number of loans | 0 | |||
Recorded investment | $ | 0 | $ 0 | ||
Converted to Non-accrual [Member] | ||||
Successes and failures of types of modifications within previous 12 months [Abstract] | ||||
Number of loans | 0 | 0 | ||
Recorded investment | $ | 0 | 0 | $ 0 | $ 0 |
Converted to Non-accrual [Member] | Extended Payment Terms [Member] | ||||
Successes and failures of types of modifications within previous 12 months [Abstract] | ||||
Number of loans | 0 | |||
Recorded investment | $ | 0 | $ 0 | ||
Converted to Non-accrual [Member] | Forgiveness of Principal [Member] | ||||
Successes and failures of types of modifications within previous 12 months [Abstract] | ||||
Number of loans | 0 | 0 | ||
Recorded investment | $ | 0 | 0 | $ 0 | $ 0 |
Converted to Non-accrual [Member] | Other [Member] | ||||
Successes and failures of types of modifications within previous 12 months [Abstract] | ||||
Number of loans | 0 | |||
Recorded investment | $ | 0 | $ 0 | ||
Foreclosure or Default [Member] | ||||
Successes and failures of types of modifications within previous 12 months [Abstract] | ||||
Number of loans | 0 | 1 | ||
Recorded investment | $ | 0 | 136 | $ 0 | $ 136 |
Foreclosure or Default [Member] | Extended Payment Terms [Member] | ||||
Successes and failures of types of modifications within previous 12 months [Abstract] | ||||
Number of loans | 0 | |||
Recorded investment | $ | 0 | $ 0 | ||
Foreclosure or Default [Member] | Forgiveness of Principal [Member] | ||||
Successes and failures of types of modifications within previous 12 months [Abstract] | ||||
Number of loans | 0 | 0 | ||
Recorded investment | $ | $ 0 | 0 | $ 0 | $ 0 |
Foreclosure or Default [Member] | Other [Member] | ||||
Successes and failures of types of modifications within previous 12 months [Abstract] | ||||
Number of loans | 1 | |||
Recorded investment | $ | $ 136 | $ 136 | ||
Commercial [Member] | ||||
TDRs, subsequent default [Abstract] | ||||
Number of loans | 0 | 1 | ||
Recorded investment | $ | $ 0 | $ 136 | ||
Commercial [Member] | Commercial and Industrial [Member] | ||||
TDRs, subsequent default [Abstract] | ||||
Number of loans | 0 | 1 | ||
Recorded investment | $ | $ 0 | $ 136 |
Loans, Credit Quality Indicators (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | $ 380,746 | $ 348,679 | [1] | ||
Pass [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 373,798 | 339,011 | |||
Special Mention [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 5,129 | 5,729 | |||
Substandard [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 1,819 | 3,939 | |||
Doubtful [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Loss [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 242,075 | 213,322 | |||
Commercial Real Estate [Member] | Pass [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 238,818 | 208,599 | |||
Commercial Real Estate [Member] | Special Mention [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 2,041 | 2,381 | |||
Commercial Real Estate [Member] | Substandard [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 1,216 | 2,342 | |||
Commercial Real Estate [Member] | Doubtful [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | Loss [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | Residential ADC [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 4,610 | 7,242 | |||
Commercial Real Estate [Member] | Residential ADC [Member] | Pass [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 4,610 | 7,242 | |||
Commercial Real Estate [Member] | Residential ADC [Member] | Special Mention [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | Residential ADC [Member] | Substandard [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | Residential ADC [Member] | Doubtful [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | Residential ADC [Member] | Loss [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | Commercial ADC [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 23,293 | 24,364 | |||
Commercial Real Estate [Member] | Commercial ADC [Member] | Pass [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 23,047 | 23,883 | |||
Commercial Real Estate [Member] | Commercial ADC [Member] | Special Mention [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 243 | 477 | |||
Commercial Real Estate [Member] | Commercial ADC [Member] | Substandard [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 3 | 4 | |||
Commercial Real Estate [Member] | Commercial ADC [Member] | Doubtful [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | Commercial ADC [Member] | Loss [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | Farmland [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 5,322 | 5,392 | |||
Commercial Real Estate [Member] | Farmland [Member] | Pass [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 5,322 | 5,392 | |||
Commercial Real Estate [Member] | Farmland [Member] | Special Mention [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | Farmland [Member] | Substandard [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | Farmland [Member] | Doubtful [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | Farmland [Member] | Loss [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | Multifamily [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 16,099 | 11,967 | |||
Commercial Real Estate [Member] | Multifamily [Member] | Pass [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 16,099 | 11,967 | |||
Commercial Real Estate [Member] | Multifamily [Member] | Special Mention [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | Multifamily [Member] | Substandard [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | Multifamily [Member] | Doubtful [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | Multifamily [Member] | Loss [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | Owner Occupied [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 97,982 | 84,808 | |||
Commercial Real Estate [Member] | Owner Occupied [Member] | Pass [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 95,916 | 81,584 | |||
Commercial Real Estate [Member] | Owner Occupied [Member] | Special Mention [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 984 | 1,049 | |||
Commercial Real Estate [Member] | Owner Occupied [Member] | Substandard [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 1,082 | 2,175 | |||
Commercial Real Estate [Member] | Owner Occupied [Member] | Doubtful [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | Owner Occupied [Member] | Loss [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | Non-owner Occupied [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 94,769 | 79,549 | |||
Commercial Real Estate [Member] | Non-owner Occupied [Member] | Pass [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 93,824 | 78,531 | |||
Commercial Real Estate [Member] | Non-owner Occupied [Member] | Special Mention [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 814 | 855 | |||
Commercial Real Estate [Member] | Non-owner Occupied [Member] | Substandard [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 131 | 163 | |||
Commercial Real Estate [Member] | Non-owner Occupied [Member] | Doubtful [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial Real Estate [Member] | Non-owner Occupied [Member] | Loss [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 48,666 | 48,867 | |||
Commercial [Member] | Pass [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 47,231 | 47,315 | |||
Commercial [Member] | Special Mention [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 1,065 | 1,130 | |||
Commercial [Member] | Substandard [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 370 | 422 | |||
Commercial [Member] | Doubtful [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial [Member] | Loss [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial [Member] | Commercial and Industrial [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 46,767 | 47,032 | |||
Commercial [Member] | Commercial and Industrial [Member] | Pass [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 45,332 | 45,480 | |||
Commercial [Member] | Commercial and Industrial [Member] | Special Mention [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 1,065 | 1,130 | |||
Commercial [Member] | Commercial and Industrial [Member] | Substandard [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 370 | 422 | |||
Commercial [Member] | Commercial and Industrial [Member] | Doubtful [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial [Member] | Commercial and Industrial [Member] | Loss [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial [Member] | Agricultural [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 296 | 415 | |||
Commercial [Member] | Agricultural [Member] | Pass [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 296 | 415 | |||
Commercial [Member] | Agricultural [Member] | Special Mention [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial [Member] | Agricultural [Member] | Substandard [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial [Member] | Agricultural [Member] | Doubtful [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial [Member] | Agricultural [Member] | Loss [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial [Member] | Other [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 1,603 | 1,420 | |||
Commercial [Member] | Other [Member] | Pass [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 1,603 | 1,420 | |||
Commercial [Member] | Other [Member] | Special Mention [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial [Member] | Other [Member] | Substandard [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial [Member] | Other [Member] | Doubtful [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Commercial [Member] | Other [Member] | Loss [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Residential Mortgage [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 51,943 | 49,059 | |||
Residential Mortgage [Member] | Pass [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 50,727 | 47,496 | |||
Residential Mortgage [Member] | Special Mention [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 1,079 | 513 | |||
Residential Mortgage [Member] | Substandard [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 137 | 1,050 | |||
Residential Mortgage [Member] | Doubtful [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Residential Mortgage [Member] | Loss [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Residential Mortgage [Member] | First Lien, Closed-End [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 51,240 | 47,936 | |||
Residential Mortgage [Member] | First Lien, Closed-End [Member] | Pass [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 50,448 | 47,257 | |||
Residential Mortgage [Member] | First Lien, Closed-End [Member] | Special Mention [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 660 | 513 | |||
Residential Mortgage [Member] | First Lien, Closed-End [Member] | Substandard [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 132 | 166 | |||
Residential Mortgage [Member] | First Lien, Closed-End [Member] | Doubtful [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Residential Mortgage [Member] | First Lien, Closed-End [Member] | Loss [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Residential Mortgage [Member] | Junior Lien, Closed-End [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 703 | 1,123 | |||
Residential Mortgage [Member] | Junior Lien, Closed-End [Member] | Pass [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 279 | 239 | |||
Residential Mortgage [Member] | Junior Lien, Closed-End [Member] | Special Mention [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 419 | 0 | |||
Residential Mortgage [Member] | Junior Lien, Closed-End [Member] | Substandard [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 5 | 884 | |||
Residential Mortgage [Member] | Junior Lien, Closed-End [Member] | Doubtful [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Residential Mortgage [Member] | Junior Lien, Closed-End [Member] | Loss [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Home Equity Lines [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 34,110 | 33,672 | |||
Home Equity Lines [Member] | Pass [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 33,235 | 32,005 | |||
Home Equity Lines [Member] | Special Mention [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 788 | 1,543 | |||
Home Equity Lines [Member] | Substandard [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 87 | 124 | |||
Home Equity Lines [Member] | Doubtful [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Home Equity Lines [Member] | Loss [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Consumer - Other [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 3,952 | 3,759 | |||
Consumer - Other [Member] | Pass [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 3,787 | 3,596 | |||
Consumer - Other [Member] | Special Mention [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 156 | 162 | |||
Consumer - Other [Member] | Substandard [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 9 | 1 | |||
Consumer - Other [Member] | Doubtful [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | 0 | 0 | |||
Consumer - Other [Member] | Loss [Member] | |||||
Credit risk profile by internally assigned risk grades [Abstract] | |||||
Loans | $ 0 | $ 0 | |||
|
Loans, Allowance for Loan Losses (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
qtr
|
Sep. 30, 2017
USD ($)
|
||||
Loans [Abstract] | |||||||
Look-back weighted period for average loss rates | qtr | 20 | ||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Beginning balance | $ 3,844 | $ 3,213 | $ 3,599 | [1] | $ 3,393 | ||
Provision for (recovery of) loan losses | 75 | 340 | 415 | 555 | |||
Charge-offs | (3) | (278) | (138) | (716) | |||
Recoveries | 9 | 148 | 49 | 191 | |||
Ending balance | 3,925 | 3,423 | 3,925 | 3,423 | |||
Commercial Real Estate [Member] | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Beginning balance | 2,504 | 1,954 | 2,260 | 1,607 | |||
Provision for (recovery of) loan losses | 76 | 133 | 340 | 546 | |||
Charge-offs | 0 | (134) | (50) | (208) | |||
Recoveries | 3 | 140 | 33 | 148 | |||
Ending balance | 2,583 | 2,093 | 2,583 | 2,093 | |||
Commercial [Member] | Commercial and Industrial [Member] | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Beginning balance | 608 | 501 | 634 | 1,171 | |||
Provision for (recovery of) loan losses | 4 | 241 | (2) | (214) | |||
Charge-offs | 0 | (136) | (25) | (369) | |||
Recoveries | 3 | 0 | 8 | 18 | |||
Ending balance | 615 | 606 | 615 | 606 | |||
Residential Mortgage [Member] | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Beginning balance | 532 | 524 | 505 | 427 | |||
Provision for (recovery of) loan losses | 0 | (13) | 77 | 139 | |||
Charge-offs | 0 | 0 | (50) | (66) | |||
Recoveries | 0 | 0 | 0 | 11 | |||
Ending balance | 532 | 511 | 532 | 511 | |||
Consumer [Member] | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Beginning balance | 200 | 234 | 200 | 188 | |||
Provision for (recovery of) loan losses | (5) | (21) | 0 | 84 | |||
Charge-offs | (3) | (8) | (13) | (73) | |||
Recoveries | 3 | 8 | 8 | 14 | |||
Ending balance | $ 195 | $ 213 | $ 195 | $ 213 | |||
|
Loans, Allocation of Allowance for Loan Losses (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Jun. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Dec. 31, 2016 |
|||
---|---|---|---|---|---|---|---|---|---|
Allocation of allowance for loan losses [Abstract] | |||||||||
Loans individually evaluated for impairment | $ 233 | $ 248 | |||||||
Loans collectively evaluated for impairment | 3,692 | 3,351 | |||||||
Total | 3,925 | $ 3,844 | 3,599 | [1] | $ 3,423 | $ 3,213 | $ 3,393 | ||
Recorded investment in loans related to allowance for loan losses [Abstract] | |||||||||
Loans individually evaluated for impairment | 4,453 | 6,357 | |||||||
Loans collectively evaluated for impairment | 376,293 | 342,322 | |||||||
Commercial Real Estate [Member] | |||||||||
Allocation of allowance for loan losses [Abstract] | |||||||||
Loans individually evaluated for impairment | 0 | 0 | |||||||
Loans collectively evaluated for impairment | 2,583 | 2,260 | |||||||
Total | 2,583 | 2,504 | 2,260 | 2,093 | 1,954 | 1,607 | |||
Recorded investment in loans related to allowance for loan losses [Abstract] | |||||||||
Loans individually evaluated for impairment | 2,450 | 3,623 | |||||||
Loans collectively evaluated for impairment | 239,625 | 209,699 | |||||||
Commercial [Member] | Commercial and Industrial [Member] | |||||||||
Allocation of allowance for loan losses [Abstract] | |||||||||
Loans individually evaluated for impairment | 103 | 144 | |||||||
Loans collectively evaluated for impairment | 512 | 490 | |||||||
Total | 615 | 608 | 634 | 606 | 501 | 1,171 | |||
Recorded investment in loans related to allowance for loan losses [Abstract] | |||||||||
Loans individually evaluated for impairment | 648 | 766 | |||||||
Loans collectively evaluated for impairment | 48,018 | 48,101 | |||||||
Residential Mortgage [Member] | |||||||||
Allocation of allowance for loan losses [Abstract] | |||||||||
Loans individually evaluated for impairment | 129 | 103 | |||||||
Loans collectively evaluated for impairment | 403 | 402 | |||||||
Total | 532 | 532 | 505 | 511 | 524 | 427 | |||
Recorded investment in loans related to allowance for loan losses [Abstract] | |||||||||
Loans individually evaluated for impairment | 1,260 | 1,861 | |||||||
Loans collectively evaluated for impairment | 50,683 | 47,198 | |||||||
Consumer and Home Equity Lines [Member] | |||||||||
Recorded investment in loans related to allowance for loan losses [Abstract] | |||||||||
Loans individually evaluated for impairment | 95 | 107 | |||||||
Loans collectively evaluated for impairment | 37,967 | 37,324 | |||||||
Consumer [Member] | |||||||||
Allocation of allowance for loan losses [Abstract] | |||||||||
Loans individually evaluated for impairment | 1 | 1 | |||||||
Loans collectively evaluated for impairment | 194 | 199 | |||||||
Total | $ 195 | $ 200 | $ 200 | $ 213 | $ 234 | $ 188 | |||
|
Loans, Unused Lines of Credit and Related Party Loan Activity (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Related Party Loan Activity [Roll Forward] | |||
Balance, beginning of year | $ 1,740 | $ 2,043 | |
Loan disbursements | 236 | 84 | |
Loan repayments | (1,505) | (345) | |
Balance, end of quarter | 471 | 1,782 | |
Related party loan [Abstract] | |||
Unfunded commitments | 0 | $ 0 | |
Related party deposits | 2,689 | 1,912 | |
Unused lines of Credit [Member] | |||
Related party loan [Abstract] | |||
Unfunded commitments | 74,900 | ||
Executive Officers and Directors [Member] | Unused lines of Credit [Member] | |||
Related party loan [Abstract] | |||
Unfunded commitments | $ 145 | $ 374 |
Foreclosed Assets (Details) $ in Thousands |
9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
Property
|
Sep. 30, 2017
USD ($)
|
||||
Foreclosed Assets [Abstract] | |||||
Balance, beginning of year | $ 789 | [1] | $ 1,011 | ||
Additions | 1,618 | 196 | |||
Proceeds from sale | (330) | (523) | |||
Valuation adjustment | (317) | (193) | |||
Gains/(losses) on sales | 22 | (24) | |||
Balance, end of quarter | $ 1,782 | $ 467 | |||
Number of foreclosed residential real estate property | Property | 2 | ||||
Foreclosed residential real estate | $ 794 | ||||
Mortgage loans in process of foreclosure | $ 0 | ||||
|
Stock Option Plans (Details) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2018
Plan
$ / shares
shares
|
Sep. 30, 2017
Plan
shares
|
Sep. 30, 2018
Plan
$ / shares
shares
|
Sep. 30, 2017
Plan
shares
|
Dec. 31, 2014
shares
|
|
Stock option plans [Abstract] | |||||
Number of share-based compensation plans | Plan | 6 | 6 | 6 | 6 | |
Stock Option [Member] | |||||
Stock option plans [Abstract] | |||||
Exercise price of stock options granted (in dollars per share) | $ / shares | $ 3.85 | $ 3.85 | |||
Stock Option [Member] | Carolina Commerce Bank [Member] | |||||
Stock option plans [Abstract] | |||||
Conversion rate upon acquisition (in shares) | 0.625 | ||||
Vested options outstanding (in shares) | 76,845 | 76,845 | |||
Stock Option [Member] | Carolina Commerce Bank [Member] | Minimum [Member] | |||||
Stock option plans [Abstract] | |||||
Exercise price of vested options (in dollars per share) | $ / shares | $ 2.13 | $ 2.13 | |||
Stock Option [Member] | Carolina Commerce Bank [Member] | Maximum [Member] | |||||
Stock option plans [Abstract] | |||||
Exercise price of vested options (in dollars per share) | $ / shares | $ 10.40 | $ 10.40 | |||
Restricted Stock [Member] | |||||
Stock option plans [Abstract] | |||||
Grants of restricted stock (in shares) | 0 | 0 | 0 | 0 | |
2001 Employee Plan and 2001 Director Plan [Member] | Stock Option [Member] | |||||
Stock option plans [Abstract] | |||||
Aggregate number of common shares reserved for options (in shares) | 201,542 | 201,542 | |||
Exercise price of stock options granted (in dollars per share) | $ / shares | $ 3.14 | $ 3.14 | |||
Option term | 10 years | ||||
2001 Employee Plan and 2001 Director Plan [Member] | Stock Option [Member] | Granted in 2006 Through 2011 [Member] | |||||
Stock option plans [Abstract] | |||||
Options vesting period | 4 years | ||||
2001 Employee Plan and 2001 Director Plan [Member] | Stock Option [Member] | Granted in 2005 [Member] | |||||
Stock option plans [Abstract] | |||||
Options vesting period | 3 years | ||||
2001 Employee Plan [Member] | Stock Option [Member] | |||||
Stock option plans [Abstract] | |||||
Aggregate number of common shares reserved for options (in shares) | 100,771 | 100,771 | |||
2001 Director Plan [Member] | Stock Option [Member] | |||||
Stock option plans [Abstract] | |||||
Aggregate number of common shares reserved for options (in shares) | 100,771 | 100,771 | |||
2005 Employee Plan and 2005 Director Plan [Member] | Stock Option [Member] | |||||
Stock option plans [Abstract] | |||||
Aggregate number of common shares reserved for options (in shares) | 145,916 | 145,916 | |||
Option term | 10 years | ||||
2005 Employee Plan and 2005 Director Plan [Member] | Stock Option [Member] | Minimum [Member] | |||||
Stock option plans [Abstract] | |||||
Exercise price of stock options granted (in dollars per share) | $ / shares | $ 2.13 | $ 2.13 | |||
2005 Employee Plan and 2005 Director Plan [Member] | Stock Option [Member] | Maximum [Member] | |||||
Stock option plans [Abstract] | |||||
Exercise price of stock options granted (in dollars per share) | $ / shares | $ 12.25 | $ 12.25 | |||
2005 Employee Plan and 2005 Director Plan [Member] | Stock Option [Member] | Granted in 2005 [Member] | |||||
Stock option plans [Abstract] | |||||
Options vesting period | 3 years | ||||
2005 Employee Plan [Member] | Stock Option [Member] | |||||
Stock option plans [Abstract] | |||||
Aggregate number of common shares reserved for options (in shares) | 72,389 | 72,389 | |||
2005 Employee Plan [Member] | Stock Option [Member] | Granted in 2006 Through 2015 [Member] | |||||
Stock option plans [Abstract] | |||||
Options vesting period | 4 years | ||||
2005 Employee Plan [Member] | Restricted Stock [Member] | |||||
Stock option plans [Abstract] | |||||
Grants of restricted stock (in shares) | 10,000 | ||||
2005 Employee Plan [Member] | Restricted Stock [Member] | Granted in 2014 [Member] | |||||
Stock option plans [Abstract] | |||||
Options vesting period | 3 years | ||||
2005 Director Plan [Member] | Stock Option [Member] | |||||
Stock option plans [Abstract] | |||||
Aggregate number of common shares reserved for options (in shares) | 73,527 | 73,527 |
Stock Option Plans, Stock-Based Compensation (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Total stock-based compensation recognized as compensation expense [Abstract] | ||||
Total compensation expense | $ 0 | $ 5 | $ 1 | $ 23 |
Option Grants [Member] | ||||
Total stock-based compensation recognized as compensation expense [Abstract] | ||||
Total compensation expense | 0 | 5 | 1 | 23 |
Restricted Stock Grants [Member] | ||||
Total stock-based compensation recognized as compensation expense [Abstract] | ||||
Total compensation expense | $ 0 | $ 0 | $ 0 | $ 0 |
Stock Option Plans, Stock Option Awards (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Options, outstanding, shares [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 151,173 | |
Exercised (in shares) | (3,107) | |
Expired (in shares) | (12,000) | |
Outstanding, end of period (in shares) | 136,066 | 151,173 |
Exercisable, end of period (in shares) | 136,066 | |
Options, outstanding, weighted average exercise price [Rollforward] | ||
Outstanding, beginning of period (in dollars per share) | $ 4.54 | |
Exercised (in dollars per share) | 4.84 | |
Expired (in dollars per share) | 12.22 | |
Outstanding, end of period (in dollars per share) | 3.85 | $ 4.54 |
Exercisable, end of period (in dollars per share) | $ 3.85 | |
Options, weighted average remaining contractual term [Abstract] | ||
Outstanding, end of period | 4 years 11 months 8 days | 5 years 3 months 7 days |
Options, aggregate intrinsic value [Abstract] | ||
Outstanding, end of period | $ 594,586 | |
Exercisable, end of period | $ 594,586 | |
Options, additional disclosures [Abstract] | ||
Number of options vested (in shares) | 958 | |
Number of options granted (in shares) | 0 | |
Unrecognized compensation cost related to non-vested options granted | $ 0 |
Stock Option Plans, Restricted Stock Awards (Details) - Restricted Stock [Member] - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Non-vested restricted stock outstanding, number of shares [Roll Forward] | ||||
Beginning balance outstanding (in shares) | 0 | 3,334 | ||
Granted (in shares) | 0 | 0 | 0 | 0 |
Vested (in shares) | 0 | 0 | 0 | (3,334) |
Ending balance outstanding (in shares) | 0 | 0 | ||
Non-vested restricted stock outstanding, weighted average grant date fair value [Roll Forward] | ||||
Beginning balance outstanding (in dollars per share) | $ 0 | $ 3.31 | ||
Ending balance outstanding (in dollars per share) | $ 0 | $ 0 |
Off-Balance Sheet Risk and Commitments (Details) $ in Thousands |
Sep. 30, 2018
USD ($)
|
---|---|
Contract amount of exposure to off-balance sheet credit risk [Abstract] | |
Financial instruments whose contract represents credit risk | $ 75,410 |
Undisbursed Lines of Credit [Member] | |
Contract amount of exposure to off-balance sheet credit risk [Abstract] | |
Financial instruments whose contract represents credit risk | 74,864 |
Letters of Credit [Member] | |
Contract amount of exposure to off-balance sheet credit risk [Abstract] | |
Financial instruments whose contract represents credit risk | $ 546 |
Preferred Stock (Details) |
Sep. 30, 2018
shares
|
---|---|
Preferred Stock [Abstract] | |
Preferred stock, shares authorized (in shares) | 1,000,000 |
Preferred stock, shares outstanding (in shares) | 0 |
Mergers and Acquisitions (Details) - Clover Community Bankshares, Inc [Member] - USD ($) $ / shares in Units, $ in Millions |
9 Months Ended | ||
---|---|---|---|
Nov. 02, 2018 |
Jun. 14, 2018 |
Sep. 30, 2018 |
|
Proposed Merger with Clover Community Bankshares, Inc. [Abstract] | |||
Right to receive cash per share (in dollars per share) | $ 22.00 | ||
Right to receive shares of Company's common stock (in shares) | 2.7181 | ||
Percentages of common shares outstanding to be converted to cash prior to close of the merger | 20.00% | ||
Percentages of common shares outstanding to be converted to stock prior to close of the merger | 80.00% | ||
Number of outstanding preferred stock to be automatically converted into common stock prior to close of the merger (in shares) | 1 | ||
Number of days used in calculating volume weighted closing price | 10 days | ||
Subsequent Event [Member] | |||
Proposed Merger with Clover Community Bankshares, Inc. [Abstract] | |||
Volume weighted closing price (in dollars per share) | $ 8.23 | ||
Aggregate deal value of proposed merger | $ 21.8 |
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