☒ |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Oklahoma
|
|
20-0764349
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification Number)
|
1039 N.W. 63rd Street, Oklahoma City, Oklahoma
|
|
73116
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
|
Name of each exchange on which registered
|
Common Stock, $0.01 par value
|
|
The NASDAQ Global Select Market
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
Non-accelerated filer ☒
|
Smaller reporting company ☐
|
Emerging growth company ☒
|
PART I
|
|
|
4 |
|
20 |
|
46 |
|
46 |
|
46 |
|
46 |
PART II
|
|
|
46 |
|
48 |
53 | |
|
76 |
|
77 |
|
116 |
|
116 |
|
116 |
PART III
|
|
116 | |
|
116 |
117 | |
|
117 |
|
117 |
PART IV
|
|
|
117 |
119 | |
117
|
Basel III
Minimum
for Capital
Adequacy
Purposes
|
Basel III
Additional
Capital
Conservation
Buffer
|
Basel III
Ratio
with Capital
Conservation
Buffer
|
||||||||||
Total risk based capital (total capital to risk-weighted assets)
|
8.00
|
%
|
2.50
|
%
|
10.50
|
%
|
||||||
Tier 1 risk based capital (tier 1 to risk-weighted assets)
|
6.00
|
%
|
2.50
|
%
|
8.50
|
%
|
||||||
Common equity tier 1 risk based capital (CET1 to risk-weighted assets)
|
4.50
|
%
|
2.50
|
%
|
7.00
|
%
|
||||||
Tier 1 leverage ratio (tier 1 to average assets)
|
4.00
|
%
|
—
|
%
|
4.00
|
%
|
Price Per Share
|
|||||
2018
|
|||||
High
|
Low
|
||||
$20.74
|
$10.85
|
• |
historical and projected financial condition, liquidity and results of operations;
|
• |
the Company’s capital levels and requirements;
|
• |
statutory and regulatory prohibitions and other limitations;
|
• |
any contractual restriction on the Company’s ability to pay cash dividends, including pursuant to the terms of any of its credit agreements or other borrowing arrangements;
|
• |
business strategy;
|
• |
tax considerations;
|
• |
any acquisitions or potential acquisitions;
|
• |
general economic conditions; and
|
• |
other factors deemed relevant by the Board of Directors.
|
Plan
|
Number of securities to
be issued upon exercise
of outstanding options
and rights
|
Weighted average
exercise price
|
Number of securities
remaining available for
issuance under plan
|
|||||||||
Equity compensation plans approved by shareholders
|
280,000
|
$
|
19.00
|
570,000
|
||||||||
Equity compensation plans not approved by shareholders
|
––
|
––
|
––
|
As of or for the Year Ended
December 31,
|
||||||||||||
2018
|
2017
|
2016
|
||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||
Income Statement Data:
|
||||||||||||
Total interest income
|
$
|
46,800
|
$
|
42,870
|
$
|
33,153
|
||||||
Total interest expense
|
7,169
|
4,739
|
3,303
|
|||||||||
Net interest income
|
39,631
|
38,131
|
29,850
|
|||||||||
Provision for loan losses
|
200
|
1,246
|
1,554
|
|||||||||
Total noninterest income
|
1,331
|
1,435
|
1,643
|
|||||||||
Total noninterest expense
|
14,965
|
14,531
|
13,122
|
|||||||||
Provision for income taxes
|
797
|
—
|
—
|
|||||||||
Net income
|
25,797
|
23,789
|
16,817
|
|||||||||
Balance Sheet Data:
|
||||||||||||
Cash and due from banks
|
$
|
128,090
|
$
|
100,054
|
$
|
74,244
|
||||||
Total loans
|
599,910
|
563,001
|
502,482
|
|||||||||
Allowance for loan losses
|
7,832
|
7,654
|
6,873
|
|||||||||
Total assets
|
770,511
|
703,594
|
613,771
|
|||||||||
Interest-bearing deposits
|
474,744
|
459,920
|
422,122
|
|||||||||
Noninterest-bearing deposits
|
201,159
|
165,911
|
127,434
|
|||||||||
Total deposits
|
675,903
|
625,831
|
549,556
|
|||||||||
Total shareholders’ equity
|
88,466
|
69,176
|
55,136
|
Share and Per Share Data:
|
||||||||||||
Earnings per share (basic)
|
$
|
3.08
|
$
|
3.26
|
$
|
2.31
|
||||||
Earnings per share (diluted)
|
3.03
|
3.26
|
2.31
|
|||||||||
Dividends per share
|
7.71
|
1.34
|
0.96
|
|||||||||
Book value per share
|
8.68
|
9.49
|
7.57
|
|||||||||
Tangible book value per share(1)
|
8.49
|
9.19
|
7.24
|
|||||||||
Weighted average common shares outstanding–basic
|
8,105,856
|
7,287,500
|
7,287,500
|
|||||||||
Weighted average common shares outstanding–diluted
|
8,237,638
|
7,287,500
|
7,287,500
|
|||||||||
Shares outstanding at end of period
|
10,187,500
|
7,287,500
|
7,287,500
|
|||||||||
Selected Ratios:
|
||||||||||||
Return on average:
|
||||||||||||
Assets
|
3.53
|
%
|
3.62
|
%
|
2.86
|
%
|
||||||
Shareholders’ equity
|
33.01
|
37.43
|
33.29
|
|||||||||
Yield on earnings assets
|
6.48
|
6.60
|
5.73
|
|||||||||
Yield on loans
|
7.58
|
7.69
|
6.71
|
|||||||||
Yield on loans (excluding loan fee income)(1)
|
6.71
|
6.14
|
5.76
|
|||||||||
Cost of funds
|
1.11
|
0.80
|
0.62
|
|||||||||
Cost of interest-bearing deposits
|
1.52
|
1.02
|
0.75
|
|||||||||
Cost of total deposits
|
1.08
|
0.77
|
0.58
|
|||||||||
Net interest margin
|
5.49
|
5.87
|
5.16
|
|||||||||
Net interest margin (excluding loan fee income)(1)
|
4.78
|
4.59
|
4.37
|
|||||||||
Noninterest expense to average assets
|
2.05
|
2.21
|
2.23
|
|||||||||
Efficiency ratio
|
37.04
|
37.24
|
42.31
|
|||||||||
Loans to deposits
|
88.76
|
89.96
|
91.43
|
|||||||||
Credit Quality Ratios:
|
||||||||||||
Nonperforming assets to total assets
|
0.35
|
%
|
0.28
|
% |
0.37
|
%
|
||||||
Nonperforming assets to total loans and OREO
|
0.45
|
0.35
|
0.45
|
|||||||||
Nonperforming loans to total loans
|
0.44
|
0.34
|
0.43
|
|||||||||
Allowance for loan losses to nonperforming loans
|
299.50
|
404.55
|
319.53
|
|||||||||
Allowance for loan losses to total loans
|
1.31
|
1.36
|
1.37
|
|||||||||
Net charge-offs to average loans
|
0.004
|
0.09
|
0.07
|
|||||||||
Capital
Ratios (Bank) (2):
|
||||||||||||
Tangible equity to tangible assets
|
11.25
|
9.55
|
8.62
|
|||||||||
Common equity tier 1 capital ratio
|
14.78
|
12.58
|
11.33
|
|||||||||
Tier 1 leverage ratio
|
11.26
|
10.53
|
9.67
|
|||||||||
Tier 1 risk-based capital ratio
|
14.78
|
12.58
|
11.33
|
|||||||||
Total risk-based capital ratio
|
16.03
|
13.83
|
12.58
|
|||||||||
Capital Ratios (Company):
|
||||||||||||
Total shareholders’ equity to total assets
|
11.48
|
%
|
9.83
|
% |
8.98
|
%
|
||||||
Common equity tier 1 capital ratio
|
14.61
|
11.61
|
9.89
|
|||||||||
Tier 1 leverage ratio
|
11.13
|
9.72
|
8.44
|
|||||||||
Tier 1 risk-based capital ratio
|
14.61
|
11.61
|
9.89
|
|||||||||
Total risk-based capital ratio
|
15.86
|
12.86
|
11.14
|
As of or for the Year Ended
December 31,
|
|||||||||||||
2018
|
2017
|
2016
|
|||||||||||
(Dollars in thousands, except per share data)
|
|||||||||||||
Share and Per Share Data:
|
|||||||||||||
Earnings per share (basic) – S Corp
|
$
|
3.08
|
$
|
3.26
|
$
|
2.31
|
|||||||
Earnings per share (basic) – C Corp(1)
|
2.48
|
1.96
|
1.43
|
||||||||||
Earnings per share (diluted) – S Corp
|
2.44
|
3.26
|
2.31
|
||||||||||
Earnings per share (diluted) – C Corp(1)
|
2.44
|
1.96
|
1.43
|
||||||||||
Dividends per share
|
7.71
|
1.34
|
0.96
|
||||||||||
Book value per share
|
8.68
|
9.49
|
7.57
|
||||||||||
Tangible book value per share(2)
|
8.49
|
9.19
|
7.24
|
||||||||||
Weighted average common shares outstanding–basic
|
8,105,856
|
7,287,500
|
7,287,500
|
||||||||||
Weighted average common shares outstanding–diluted
|
8,238,753
|
7,287,500
|
7,287,500
|
||||||||||
Shares outstanding at end of period
|
10,187,500
|
7,287,500
|
7,287,500
|
||||||||||
Selected Ratios:
|
|||||||||||||
Return on average:
|
|||||||||||||
Assets – S Corp
|
3.53
|
%
|
3.62
|
%
|
2.86
|
%
|
|||||||
Assets – C Corp(1)
|
2.75
|
2.17
|
1.78
|
||||||||||
Shareholders’ equity – S Corp
|
33.01
|
37.43
|
33.29
|
||||||||||
Shareholders’ equity – C Corp(1)
|
25.69
|
22.46
|
20.65
|
||||||||||
Yield on earnings assets
|
6.48
|
6.60
|
5.73
|
||||||||||
Yield on loans
|
7.58
|
7.69
|
6.71
|
||||||||||
Yield on loans (excluding loan fee income)(2)
|
6.71
|
6.14
|
5.76
|
||||||||||
Cost of funds
|
1.11
|
0.80
|
0.62
|
||||||||||
Cost of interest-bearing deposits
|
1.52
|
1.02
|
0.75
|
||||||||||
Cost of total deposits
|
1.08
|
0.77
|
0.58
|
||||||||||
Net interest margin
|
5.49
|
5.87
|
5.16
|
||||||||||
Net interest margin (excluding loan fee income)(2)
|
4.78
|
4.59
|
4.37
|
||||||||||
Noninterest expense to average assets
|
2.05
|
2.21
|
2.23
|
||||||||||
Efficiency ratio
|
37.04
|
37.24
|
42.31
|
||||||||||
Loans to deposits
|
88.76
|
89.96
|
91.43
|
||||||||||
Credit Quality Ratios:
|
|||||||||||||
Nonperforming assets to total assets
|
0.35
|
%
|
0.28
|
%
|
0.37
|
%
|
|||||||
Nonperforming assets to total loans and OREO
|
0.45
|
0.35
|
0.45
|
||||||||||
Nonperforming loans to total loans
|
0.43
|
0.34
|
0.43
|
||||||||||
Allowance for loan losses to nonperforming loans
|
299.50
|
404.55
|
319.53
|
||||||||||
Allowance for loan losses to total loans
|
1.31
|
1.36
|
1.37
|
||||||||||
Net charge-offs to average loans
|
0.004
|
0.09
|
0.07
|
||||||||||
Capital Ratios:
|
|||||||||||||
Total shareholders’ equity to total assets
|
11.48
|
% |
9.83
|
% |
8.98
|
% | |||||||
Tangible equity to tangible assets(2)
|
11.25
|
9.55
|
8.62
|
||||||||||
Common equity tier 1 capital ratio(3)
|
14.78
|
12.58
|
11.33
|
||||||||||
Tier 1 leverage ratio(3)
|
11.26
|
10.53
|
9.67
|
||||||||||
Tier 1 risk-based capital ratio(3)
|
14.78
|
12.58
|
11.33
|
||||||||||
Total risk-based capital ratio(3)
|
16.03
|
13.83
|
12.58
|
As of December 31,
|
||||||||||||
2018
|
2017
|
2016
|
||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||
Tangible Shareholders’ Equity:
|
||||||||||||
Total shareholders’ equity
|
$
|
88,466
|
$
|
69,176
|
$
|
55,136
|
||||||
Adjustments:
|
||||||||||||
Goodwill and other intangibles
|
(1,995)
|
|
(2,201)
|
|
(2,407)
|
|
||||||
Tangible shareholders’ equity
|
$
|
86,471
|
$
|
66,975
|
$
|
52,729
|
||||||
Tangible Assets:
|
||||||||||||
Total assets
|
$
|
770,511
|
$
|
703,594
|
$
|
613,771
|
||||||
Adjustments:
|
||||||||||||
Goodwill and other intangibles
|
$
|
(1,995)
|
|
(2,201)
|
|
(2,407)
|
||||||
Tangible assets
|
$
|
768,516
|
$
|
701,393
|
$
|
611,364
|
||||||
End of period common shares outstanding
|
10,187,500
|
7,287,500
|
7,287,500
|
|||||||||
Book value per share
|
$
|
8.68
|
$
|
9.49
|
$
|
7.57
|
||||||
Tangible book value per share
|
$
|
8.49
|
$
|
9.19
|
$
|
7.24
|
||||||
Total shareholders’ equity to total assets
|
11.48%
|
9.83%
|
8.98%
|
|
||||||||
Tangible shareholders’ equity to tangible assets
|
11.25%
|
9.55%
|
8.62%
|
As of or for the Year Ended December 31,
|
||||||||||||
2018
|
2017
|
2016
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Loan interest income (excluding loan fee income):
|
||||||||||||
Interest income on loans, including loan fee income
|
$
|
44,279
|
$
|
41,450
|
$
|
32,254
|
||||||
Adjustments:
|
||||||||||||
Loan fee income
|
(5,121
|
)
|
(8,331
|
)
|
(4,539
|
)
|
||||||
Interest income on loans (excluding loan fee income)
|
$
|
39,158
|
$
|
33,119
|
$
|
27,715
|
||||||
Average total loans
|
$
|
584,003
|
$
|
539,302
|
$
|
481,028
|
||||||
Yield on loans
|
7.58
|
%
|
7.69
|
%
|
6.71
|
%
|
||||||
Yield on loans (excluding loan fee income)
|
6.71
|
%
|
6.14
|
%
|
5.76
|
%
|
||||||
Net interest margin (excluding loan fee income):
|
||||||||||||
Net interest income
|
$
|
39,631
|
$
|
38,131
|
$
|
29,849
|
||||||
Adjustments:
|
||||||||||||
Loan fee income
|
(5,121
|
)
|
(8,331
|
)
|
(4,539
|
)
|
||||||
Net interest income (excluding loan fee income)
|
$
|
34,510
|
$
|
29,800
|
$
|
25,310
|
||||||
Average interest-earning assets
|
$
|
721,935
|
$
|
649,757
|
$
|
578,832
|
||||||
Net interest margin
|
5.49
|
%
|
5.87
|
%
|
5.16
|
%
|
||||||
Net interest margin (excluding loan fee income)
|
4.78
|
%
|
4.59
|
%
|
4.37
|
%
|
As of or for the
year ended
December 31,
|
||||||||||||
2018
|
2017
|
2016
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Before Taxes
|
||||||||||||
Net income(1)
|
$
|
25,797
|
$
|
23,789
|
$
|
16,817
|
||||||
Pro forma C Corporation
|
||||||||||||
Combined effective income tax rate(2)
|
22.19
|
%
|
39.97
|
%
|
37.95
|
%
|
||||||
Income tax provision
|
$
|
5,720
|
$
|
9,509
|
$
|
6,382
|
||||||
Net income
|
20,077
|
14,280
|
10,435
|
|||||||||
Total shareholders’ equity
|
88,466
|
69,176
|
55,136
|
|||||||||
Earnings per share (basic)
|
2.48
|
1.96
|
1.43
|
|||||||||
Earnings per share (diluted)
|
2.44
|
1.96
|
1.43
|
|||||||||
Return on average:
|
||||||||||||
Assets
|
2.75
|
2.17
|
1.78
|
|||||||||
Shareholders’ equity
|
25.69
|
22.46
|
20.65
|
(1)
|
A portion of our net income in each of these periods was derived from nontaxable investment income and other nondeductible expenses.
|
(2)
|
Based on a statutory federal income tax rate of 21% for the year ended December 31, 2018 and 35% for each of the years ended December 31, 2017
and December 31, 2016, plus the applicable statutory state income tax rate for each of the respective periods. State income tax expense would have been approximately:
|
-
|
$1.3 million for the year ended December 31, 2018 with an effective state tax rate of 4.9%
|
-
|
$1.3 million for the year ended December 31, 2017 with an effective state tax rate of 5.4%
|
-
|
$1.0 million for the year ended December 31, 2016 with an effective state tax rate of 5.7%
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||
2018
|
2017
|
2016
|
||||||||||||||||||||||||||||||||||
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Average
Yield/
Rate
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||||||||||||||
Short-term investments(1)
|
$
|
136,880
|
$
|
2,521
|
1.84
|
%
|
$
|
109,410
|
$
|
1,420
|
1.30
|
%
|
$
|
96,787
|
$
|
899
|
0.93
|
%
|
||||||||||||||||||
Investment securities(2)
|
$
|
1,052
|
—
|
0.00
|
%
|
$
|
1,045
|
—
|
0.00
|
%
|
$
|
1,017
|
—
|
0.00
|
%
|
|||||||||||||||||||||
Loans held for sale
|
$
|
182
|
—
|
0.00
|
%
|
$
|
224
|
—
|
0.00
|
%
|
$
|
83
|
—
|
0.00
|
%
|
|||||||||||||||||||||
Total loans(3)
|
$
|
583,821
|
$
|
44,279
|
7.58
|
%
|
$
|
539,078
|
$
|
41,450
|
7.69
|
%
|
$
|
480,945
|
$
|
32,254
|
6.71
|
%
|
||||||||||||||||||
Total interest-earning assets
|
$
|
721,935
|
$
|
46,800
|
6.48
|
%
|
$
|
649,757
|
$
|
42,870
|
6.60
|
%
|
$
|
578,832
|
$
|
33,153
|
5.73
|
%
|
||||||||||||||||||
Noninterest-earning assets
|
$
|
8,629
|
$
|
7,811
|
$
|
8,558
|
||||||||||||||||||||||||||||||
Total assets
|
$
|
730,564
|
$
|
657,568
|
$
|
587,390
|
||||||||||||||||||||||||||||||
Funding sources:
|
||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||||||||||||||
Transaction accounts
|
$
|
240,881
|
$
|
3,584
|
1.49
|
%
|
$
|
242,790
|
$
|
2,214
|
0.91
|
%
|
$
|
239,438
|
$
|
1,517
|
0.63
|
%
|
||||||||||||||||||
Time deposits
|
$
|
220,023
|
$
|
3,410
|
1.55
|
%
|
$
|
200,513
|
$
|
2,288
|
1.14
|
%
|
$
|
163,303
|
$
|
1,524
|
0.93
|
%
|
||||||||||||||||||
Total interest-bearing deposits
|
$
|
460,904
|
$
|
6,994
|
1.52
|
%
|
$
|
443,303
|
$
|
4,502
|
1.02
|
%
|
$
|
402,741
|
$
|
3,041
|
0.76
|
%
|
||||||||||||||||||
Other borrowings
|
$
|
3,652
|
$
|
175
|
4.79
|
%
|
$
|
5,740
|
$
|
237
|
4.13
|
%
|
$
|
6,542
|
$
|
262
|
4.00
|
%
|
||||||||||||||||||
Total interest-bearing liabilities
|
$
|
464,556
|
$
|
7,169
|
1.54
|
%
|
$
|
449,043
|
$
|
4,739
|
1.06
|
%
|
$
|
409,283
|
$
|
3,303
|
0.81
|
%
|
||||||||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits
|
$
|
183,750
|
$
|
142,035
|
$
|
125,140
|
||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities
|
$
|
4,110
|
$
|
2,932
|
$
|
2,444
|
||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities
|
$
|
187,860
|
$
|
144,967
|
$
|
127,584
|
||||||||||||||||||||||||||||||
Shareholders’ equity
|
$
|
78,148
|
$
|
63,558
|
$
|
50,523
|
||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
730,564
|
$
|
657,568
|
$
|
587,390
|
||||||||||||||||||||||||||||||
Net interest income
|
$
|
39,631
|
$
|
38,131
|
$
|
29,850
|
||||||||||||||||||||||||||||||
Net interest spread(4)
|
4.94
|
%
|
5.54
|
%
|
4.92
|
%
|
||||||||||||||||||||||||||||||
Net interest margin
|
5.49
|
%
|
5.87
|
%
|
5.16
|
%
|
(1)
|
Includes income and weighted average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous
interest-earning assets.
|
(2)
|
Includes income and weighted average balances for FHLB and FRB stock.
|
(3)
|
Average loan balances include monthly average nonaccrual loans of $991,000, $2.6 million and $4.7 million for the years ended December 31, 2018, 2017 and 2016,
respectively.
|
(4)
|
Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
|
- |
Total interest income on loans increased $2.8 million, or 6.8%, to $44.3 million which was attributable to a $44.7 million increase in the average balance of loans to $583.8
million during the year ended 2018 as compared with the average balance of $539.1 million for the year ended 2017;
|
- |
Loan fees totaled $5.1 million, a decrease of $3.2 million or 38.5% which was attributable to nonrecurring loan fee income earned during the year ended 2017 as compared to
2018;
|
- |
Yields on our interest-earning assets totaled 6.48%, a decrease of 12 basis points which was attributable to the $3.2 million decrease in nonrecurring loan fee income earned
during the year ended 2018; and
|
- |
Net interest margin for the year ended 2018 and 2017 was 5.49% and 5.87%, respectively.
|
- |
Total interest income on loans increased $9.2 million, or 28.5%, to $41.5 million which was attributable to a $58.1 million increase in the average balance of loans to $539.1
million during the year ended 2017 as compared to $480.9 million for the year ended 2016;
|
- |
Loan fees totaled $8.3 million, an increase of $3.8 million or 83.5% which was attributable to nonrecurring loan fee income earned during the year ended 2017 as compared to
2016;
|
- |
Yields on our interest-earning assets totaled 6.60%, an increase of 87 basis points which was attributable to the increase in average loans and nonrecurring loan fee income
earned during the year ended 2017 as compared to 2016; and
|
- |
Net interest margin for the year ended 2017 and 2016 was 5.87% and 5.16%, respectively.
|
For the Year Ended
December 31, 2018 vs. 2017
|
For the Year Ended
December 31, 2017 vs. 2016
|
|||||||||||||||||||||||
Change due to:
|
Change due to:
|
|||||||||||||||||||||||
Volume(1)
|
Rate(1)
|
Interest
Variance
|
Volume(1)
|
Rate(1)
|
Interest
Variance
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Increase (decrease) in interest income:
|
||||||||||||||||||||||||
Short-term investments
|
$
|
357
|
$
|
744
|
$
|
1,101
|
$
|
117
|
$
|
404
|
$
|
521
|
||||||||||||
Total loans
|
$
|
3,440
|
$
|
(611
|
)
|
$
|
2,829
|
$
|
3,899
|
$
|
5,297
|
$
|
9,196
|
|||||||||||
Total increase in interest income
|
$
|
3,797
|
$
|
133
|
$
|
3,930
|
$
|
4,016
|
$
|
5,701
|
$
|
9,717
|
||||||||||||
Increase (decrease) in interest expense:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Transaction accounts
|
$
|
(17
|
)
|
$
|
1,387
|
$
|
1,370
|
$
|
21
|
$
|
676
|
$
|
697
|
|||||||||||
Time deposits
|
$
|
223
|
$
|
899
|
$
|
1,122
|
$
|
347
|
$
|
417
|
$
|
764
|
||||||||||||
Total interest-bearing deposits
|
$
|
205
|
$
|
2,287
|
$
|
2,492
|
$
|
368
|
$
|
1,093
|
$
|
1,461
|
||||||||||||
Other borrowings
|
(86
|
)
|
24
|
(62
|
)
|
(32
|
)
|
7
|
(25
|
)
|
||||||||||||||
Total interest-bearing liabilities
|
$
|
119
|
$
|
2,311
|
$
|
2,430
|
$
|
336
|
$
|
1,100
|
$
|
1,436
|
||||||||||||
Increase in net interest income
|
$
|
3,678
|
$
|
(2,178
|
)
|
$
|
1,500
|
$
|
3,680
|
$
|
4,601
|
$
|
8,281
|
- |
The provision for loan losses decreased by $1 million, or 83.95%, to $200,000; and
|
- |
The allowance as a percentage of loans decreased by 5 basis points to 1.31%.
|
- |
The provision for loan losses decreased by $309,000, or 19.9%, to $1.2 million; and
|
- |
The allowance as a percentage of loans decreased by 1 basis point to 1.36%.
|
For the Years Ended
December 31,
|
||||||||||||||||||||||||||||
2018
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
2017
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
2016
|
||||||||||||||||||||||
(Dollars in thousands)
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||
Noninterest income:
|
||||||||||||||||||||||||||||
Service charges on deposit accounts
|
$
|
347
|
$
|
11
|
3.27
|
%
|
$
|
336
|
$
|
(10
|
)
|
(2.89
|
%)
|
$ | 346 | |||||||||||||
Gain on sale of loans
|
$
|
212
|
$
|
29
|
15.85
|
%
|
$
|
183
|
$
|
127
|
226.79
|
%
|
$
|
56
|
||||||||||||||
Other income and fees
|
$
|
772
|
$
|
(144
|
)
|
(15.72
|
%)
|
$
|
916
|
$
|
(325
|
)
|
(26.19
|
%)
|
$
|
1,241
|
||||||||||||
Total noninterest income
|
$
|
1,331
|
$
|
(104
|
)
|
(7.25
|
%)
|
$
|
1,435
|
$
|
(208
|
)
|
(12.66
|
%)
|
$
|
1,643
|
For the Years Ended
December 31,
|
||||||||||||||||||||||||||||
2018
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
2017
|
$ Increase
(Decrease)
|
% Increase
(Decrease)
|
2016 | ||||||||||||||||||||||
(Dollars in thousands)
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||
Noninterest expense:
|
||||||||||||||||||||||||||||
Salaries and employee benefits
|
$
|
8,113
|
$
|
502
|
6.60
|
%
|
$
|
7,611
|
$
|
1,095
|
16.80
|
%
|
$
|
6,516
|
||||||||||||||
Furniture and equipment
|
684
|
(147
|
)
|
(17.69
|
%)
|
$
|
831
|
$
|
138
|
19.91
|
$ | 693 | ||||||||||||||||
Occupancy
|
1,105
|
56
|
5.34
|
%
|
$
|
1,049
|
$
|
43
|
4.27
|
$
|
1,006
|
|||||||||||||||||
Data and item processing
|
966
|
75
|
8.42
|
%
|
$
|
891
|
$
|
(59
|
)
|
(6.21
|
)
|
$
|
950
|
|||||||||||||||
Accounting, legal and professional fees
|
305
|
21
|
7.39
|
%
|
$
|
284
|
$
|
38
|
15.45
|
$
|
246
|
|||||||||||||||||
Regulatory assessments
|
542
|
92
|
20.44
|
%
|
$
|
450
|
$
|
(188
|
)
|
(29.47
|
)
|
$
|
638
|
|||||||||||||||
Advertising and public relations
|
553
|
120
|
27.71
|
%
|
$
|
433
|
$
|
(101
|
)
|
(18.91
|
)
|
$ | 534 | |||||||||||||||
Travel, lodging and entertainment
|
699
|
(342
|
)
|
(32.85
|
%)
|
$
|
1,041
|
$
|
499
|
92.07
|
$ | 542 | ||||||||||||||||
Other expense
|
1,998
|
57
|
2.94
|
%
|
$
|
1,941
|
$
|
(55
|
)
|
(2.76
|
)
|
$
|
1,996
|
|||||||||||||||
Total noninterest expense
|
$
|
14,965
|
$
|
434
|
2.99
|
%
|
$
|
14,531
|
$
|
1,410
|
10.75
|
%
|
$
|
13,121
|
- |
Salaries and employee benefits expense was $8.1 million compared to $7.6 million, an increase of $502,000, or 6.6%. The increase in 2018 was attributable to higher salaries
and incentive compensation expense.
|
- |
Furniture and equipment expense was $684,000 compared to $831,000, a decrease of $147,000, or 17.7%. The decrease in 2018 was primarily due to lower bank vehicle expenses
compared to 2017.
|
- |
Regulatory assessments totaled $542,000 compared to $450,000, an increase of $92,000, or 20.4%. The change came primarily from FDIC assessments that totaled $440,000 in 2018
compared to $394,000 in 2017, an increase of $46,000, or 11.7%. The increase is due to a higher assessment associated with an increase in deposits accounts due to organic growth and expansion into the Texas market.
|
- |
Travel, lodging and entertainment expense was $699,000 compared to $1.0 million, a decrease of $342,000, or 32.9%. The decrease in 2018 was primarily due to lower aircraft
expenses as the aircraft was sold at the end of the third quarter of 2018.
|
- |
Salaries and employee benefits expense was $7.6 million compared to $6.5 million, an increase of $1.1 million, or 16.8%. The increase in 2017 was attributable to our
expansion in the Dallas/Fort Worth metropolitan area as our number of full-time equivalent employees totaled 80 at December 31, 2017 compared to 72 at December 31, 2016.
|
- |
Furniture and equipment expense was $831,000 compared to $693,000, an increase of $138,000, or 19.9%. This increase in 2017 was primarily due to higher bank vehicle expenses
compared to 2016.
|
- |
Regulatory assessments totaled $450,000 compared to $638,000, a decrease of $188,000, or 29.5%. The change came primarily from FDIC assessments that totaled $394,000 in 2017
and $550,000 in 2016, a decrease of $156,000, or 28.4%, respectively. The primary reason for the decrease in assessments in 2017 was less reliance on non-reciprocal deposits related to non-core funding.
|
- |
Travel, lodging and entertainment expense for 2017 was $1.0 million compared to $542,000, an increase of $499,000, or 92.1%. The increase in 2017 was primarily due to
aircraft expenses and increased travel to the new branch in the Dallas/Fort Worth metropolitan area.
|
|
As of December 31,
|
|
||||||||||||||||||||||
2018
|
2017
|
2016
|
||||||||||||||||||||||
Amount
|
% of Total
|
Amount
|
% of Total
|
Amount
|
% of Total
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Construction & development
|
$
|
87,267
|
14.5
|
%
|
$
|
103,787
|
18.4
|
%
|
$
|
114,728
|
22.8
|
%
|
||||||||||||
1-4 family real estate
|
33,278
|
5.5
|
31,778
|
5.6
|
21,012
|
4.2
|
||||||||||||||||||
Commercial real estate - other
|
156,396
|
26.0
|
137,534
|
24.4
|
87,435
|
17.3
|
||||||||||||||||||
Total real estate
|
276,941
|
46.0
|
273,099
|
48.4
|
223,175
|
44.3
|
||||||||||||||||||
Commercial & industrial
|
248,394
|
41.3
|
204,976
|
36.3
|
184,952
|
36.7
|
||||||||||||||||||
Agricultural
|
62,844
|
10.4
|
74,871
|
13.3
|
78,762
|
15.6
|
||||||||||||||||||
Consumer
|
13,723
|
2.3
|
11,631
|
2.1
|
16,909
|
3.4
|
||||||||||||||||||
Gross loans
|
601,902
|
100.0
|
%
|
564,577
|
100.0
|
%
|
503,798
|
100.0
|
%
|
|||||||||||||||
Less deferred loan fees, net
|
(1,992
|
)
|
(1,576
|
)
|
(1,316
|
)
|
||||||||||||||||||
Total loans
|
599,910
|
563,001
|
502,482
|
|||||||||||||||||||||
Allowance for loan and lease losses
|
(7,832
|
)
|
(7,654
|
)
|
(6,873
|
)
|
||||||||||||||||||
Net loans
|
$
|
592,078
|
$
|
555,347
|
$
|
495,609
|
As of December 31, 2018
|
||||||||||||||||||||||||||||
Due in One Year or Less
|
Due after One Year
Through Five Years
|
Due after Five Years
|
||||||||||||||||||||||||||
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Total
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
741
|
$
|
29,412
|
$
|
617
|
$
|
56,497
|
$
|
-
|
$
|
-
|
$
|
87,267
|
||||||||||||||
1-4 family real estate
|
682
|
19,866
|
1,643
|
$
|
10,934
|
-
|
153
|
33,278
|
||||||||||||||||||||
Commercial real estate - other
|
457
|
14,280
|
283
|
$
|
134,090
|
2,197
|
5,089
|
156,396
|
||||||||||||||||||||
Total real estate
|
1,880
|
63,558
|
2,543
|
201,521
|
2,197
|
5,242
|
276,941
|
|||||||||||||||||||||
Commercial & industrial
|
13,725
|
153,891
|
7,878
|
66,631
|
14
|
6,255
|
248,394
|
|||||||||||||||||||||
Agricultural
|
4,474
|
32,496
|
4,084
|
17,669
|
1,374
|
2,747
|
62,844
|
|||||||||||||||||||||
Consumer
|
2,688
|
-
|
5,443
|
50
|
4,453
|
1,089
|
13,723
|
|||||||||||||||||||||
Gross loans
|
$
|
22,767
|
$
|
249,945
|
$
|
19,948
|
$
|
285,871
|
$
|
8,038
|
$
|
15,333
|
$
|
601,902
|
As of December 31, 2017
|
||||||||||||||||||||||||||||
Due in One Year or Less
|
Due after One Year
Through Five Years
|
Due after Five Years
|
||||||||||||||||||||||||||
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Total
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
1,699
|
$
|
45,186
|
$
|
3,006
|
$
|
53,850
|
$
|
-
|
$
|
46
|
$
|
103,787
|
||||||||||||||
1-4 family real estate
|
1,877
|
14,671
|
1,734
|
13,235
|
43
|
218
|
31,778
|
|||||||||||||||||||||
Commercial real estate - other
|
5,619
|
13,505
|
1,221
|
108,832
|
2,445
|
5,912
|
137,534
|
|||||||||||||||||||||
Total real estate
|
9,195
|
73,362
|
5,961
|
175,917
|
2,488
|
6,176
|
273,099
|
|||||||||||||||||||||
Commercial & industrial
|
45,182
|
108,921
|
5,895
|
27,169
|
704
|
17,105
|
204,976
|
|||||||||||||||||||||
Agricultural
|
3,495
|
37,335
|
6,956
|
20,927
|
2,743
|
3,415
|
74,871
|
|||||||||||||||||||||
Consumer
|
2,608
|
126
|
6,221
|
665
|
1,391
|
620
|
11,631
|
|||||||||||||||||||||
Gross loans
|
$
|
60,480
|
$
|
219,744
|
$
|
25,033
|
$
|
224,678
|
$
|
7,326
|
$
|
27,316
|
$
|
564,577
|
As of December 31, 2016
|
||||||||||||||||||||||||||||
Due in One Year or Less
|
Due after One Year
Through Five Years
|
Due after Five Years
|
||||||||||||||||||||||||||
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Fixed
Rate
|
Adjustable
Rate
|
Total
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
4,894
|
$
|
47,555
|
$
|
5,891
|
$
|
53,547
|
$
|
—
|
$
|
2,841
|
$
|
114,728
|
||||||||||||||
1-4 family real estate
|
514
|
5,908
|
3,717
|
10,484
|
117
|
272
|
21,012
|
|||||||||||||||||||||
Commercial real estate - other
|
74
|
9.353
|
1,688
|
66,013
|
2,670
|
7,637
|
87,435
|
|||||||||||||||||||||
Total real estate
|
5,482
|
62.816
|
11,296
|
130,044
|
2,787
|
10,750
|
223,175
|
|||||||||||||||||||||
Commercial & industrial
|
7,996
|
90,889
|
27,840
|
49,480
|
1,115
|
7,632
|
184,952
|
|||||||||||||||||||||
Agricultural
|
6,670
|
33,819
|
9,245
|
20,523
|
2,319
|
6,186
|
78,762
|
|||||||||||||||||||||
Consumer
|
4,228
|
55
|
8,019
|
1,805
|
1,750
|
1,052
|
16,909
|
|||||||||||||||||||||
Gross loans
|
$
|
24,376
|
$
|
187,579
|
$
|
56,400
|
$
|
201,852
|
$
|
7,971
|
$
|
25,620
|
$
|
503,798
|
For the Year Ended
December 31,
|
||||||||||||
2018
|
2017
|
2016
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Balance at beginning of the period
|
$
|
7,654
|
$
|
6,873
|
$
|
5,677
|
||||||
Provision for loan losses
|
200
|
1,246
|
1,554
|
|||||||||
Charge-offs:
|
||||||||||||
Construction & development
|
-
|
-
|
(1
|
)
|
||||||||
1-4 family real estate
|
(25
|
)
|
-
|
(104
|
)
|
|||||||
Commercial real estate - other
|
-
|
(224
|
)
|
(10
|
)
|
|||||||
Commercial & industrial
|
(73
|
)
|
(242
|
)
|
(305
|
)
|
||||||
Agricultural
|
-
|
-
|
(75
|
)
|
||||||||
Consumer
|
-
|
(46
|
)
|
(93
|
)
|
|||||||
Total charge-offs
|
(98
|
)
|
(512
|
)
|
(588
|
)
|
||||||
Recoveries:
|
||||||||||||
Construction & development
|
-
|
-
|
-
|
|||||||||
1-4 family real estate
|
3
|
23
|
60
|
|||||||||
Commercial real estate - other
|
-
|
6
|
-
|
|||||||||
Commercial & industrial
|
71
|
6
|
151
|
|||||||||
Agricultural
|
1
|
-
|
-
|
|||||||||
Consumer
|
1
|
12
|
19
|
|||||||||
Total recoveries
|
76
|
47
|
230
|
|||||||||
Net charge-offs
|
(22
|
)
|
(465
|
)
|
(358
|
)
|
||||||
Balance at end of the period
|
$
|
7,832
|
$
|
7,654
|
$
|
6,873
|
As of December 31,
|
||||||||||||||||||||||||
2018
|
2017
|
2016
|
||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Construction & development
|
$
|
1,136
|
14.50
|
%
|
$
|
1,407
|
18.38
|
%
|
$
|
1,565
|
22.77
|
%
|
||||||||||||
1-4 family real estate
|
433
|
5.53
|
%
|
431
|
5.63
|
%
|
287
|
4.17
|
%
|
|||||||||||||||
Commercial real estate - other
|
2,035
|
25.98
|
%
|
1,865
|
24.37
|
%
|
1,193
|
17.36
|
%
|
|||||||||||||||
Commercial & industrial
|
3,231
|
41.26
|
%
|
2,779
|
36.31
|
%
|
2,523
|
36.71
|
%
|
|||||||||||||||
Agricultural
|
818
|
10.44
|
%
|
1,015
|
13.26
|
%
|
1,074
|
15.63
|
%
|
|||||||||||||||
Consumer
|
179
|
2.29
|
%
|
157
|
2.05
|
%
|
231
|
3.36
|
%
|
|||||||||||||||
Total
|
$
|
7,832
|
100.0
|
%
|
$
|
7,654
|
100.0
|
%
|
$
|
6,873
|
100.0
|
%
|
As of
December 31,
|
||||||||||||
2018
|
2017
|
2016
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Nonaccrual loans
|
$
|
2,615
|
$
|
1,217
|
$
|
661
|
||||||
Troubled debt restructurings
|
-
|
675
|
805
|
|||||||||
Accruing loans 90 or more days past due
|
-
|
—
|
685
|
|||||||||
Total nonperforming loans
|
2,615
|
1,892
|
2,151
|
|||||||||
Other real estate owned
|
110
|
100
|
100
|
|||||||||
Total nonperforming assets
|
$
|
2,725
|
$
|
1,992
|
$
|
2,251
|
||||||
Ratio of nonperforming loans to total loans
|
0.44
|
%
|
0.34
|
%
|
0.43
|
%
|
||||||
Ratio of nonperforming assets to total assets
|
0.35
|
%
|
0.28
|
%
|
0.37
|
%
|
As of December 31, 2018
|
||||||||||||||||||||||||||||
Loans
30-59 days
past due
|
Loans
60-89 days
past due
|
Loans
90+ days
past due
|
Total Loans
90+ days and
accruing
|
Total past
due
Loans
|
Current
Loans
|
Gross
Loans
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
87,267
|
$
|
87,267
|
||||||||||||||
1-4 family real estate
|
8
|
-
|
-
|
-
|
8
|
33,270
|
33,278
|
|||||||||||||||||||||
Commercial real estate - other
|
-
|
-
|
-
|
-
|
-
|
156,396
|
156,396
|
|||||||||||||||||||||
Commercial & industrial
|
-
|
5
|
-
|
-
|
5
|
248,389
|
248,394
|
|||||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
62,844
|
62,844
|
|||||||||||||||||||||
Consumer
|
41
|
-
|
-
|
-
|
41
|
13,682
|
13,723
|
|||||||||||||||||||||
Total
|
$
|
49
|
$
|
5
|
$
|
0
|
$
|
0
|
$
|
54
|
$
|
601,848
|
$
|
601,902
|
As of December 31, 2017
|
||||||||||||||||||||||||||||
Loans
30-59 days
past due
|
Loans
60-89 days
past due
|
Loans
90+ days
past due
|
Total Loans
90+ days and
accruing
|
Total past
due
Loans
|
Current
Loans
|
Gross
Loans
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
103,787
|
$
|
103,787
|
||||||||||||||
1-4 family real estate
|
—
|
—
|
111
|
—
|
111
|
31,667
|
31,778
|
|||||||||||||||||||||
Commercial real estate - other
|
—
|
—
|
—
|
—
|
—
|
137,534
|
137,534
|
|||||||||||||||||||||
Commercial & industrial
|
2
|
—
|
—
|
—
|
2
|
204,974
|
204,976
|
|||||||||||||||||||||
Agricultural
|
—
|
—
|
—
|
—
|
—
|
74,871
|
74,871
|
|||||||||||||||||||||
Consumer
|
54
|
—
|
—
|
—
|
54
|
11,577
|
11,631
|
|||||||||||||||||||||
Total
|
$
|
56
|
$
|
—
|
$
|
111
|
$
|
—
|
$
|
167
|
$
|
564,410
|
$
|
564,577
|
As of December 31, 2016
|
||||||||||||||||||||||||||||
Loans
30-59 days
past due
|
Loans
60-89 days
past due
|
Loans
90+ days
past due
|
Total Loans
90+ days and
accruing
|
Total past
due
Loans
|
Current
Loans
|
Gross
Loans
|
||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
114,728
|
$
|
114,728
|
||||||||||||||
1-4 family real estate
|
—
|
—
|
111
|
—
|
111
|
20,901
|
21,012
|
|||||||||||||||||||||
Commercial real estate - other
|
—
|
—
|
—
|
—
|
—
|
87,435
|
87,435
|
|||||||||||||||||||||
Commercial & industrial
|
233
|
—
|
—
|
—
|
233
|
184,719
|
184,952
|
|||||||||||||||||||||
Agricultural
|
—
|
—
|
802
|
686
|
802
|
77,960
|
78,762
|
|||||||||||||||||||||
Consumer
|
115
|
—
|
209
|
—
|
324
|
16,585
|
16,909
|
|||||||||||||||||||||
Total
|
$
|
348
|
$
|
—
|
$
|
1,122
|
$
|
686
|
$
|
1,470
|
$
|
502,328
|
$
|
503,798
|
As of December 31, 2018
|
||||||||||||||||||||
Pass
|
Watch
|
Special mention
|
Substandard
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Construction & development
|
$
|
84,485
|
$
|
2,782
|
$
|
—
|
$
|
—
|
$
|
87,267
|
||||||||||
1-4 family real estate
|
29,942
|
3,221
|
—
|
115
|
33,278
|
|||||||||||||||
Commercial real estate - other
|
154,353
|
1,559
|
—
|
484
|
156,396
|
|||||||||||||||
Commercial & industrial
|
204,671
|
36,342
|
—
|
7,381
|
248,394
|
|||||||||||||||
Agricultural
|
57,782
|
758
|
3,207
|
1,097
|
62,844
|
|||||||||||||||
Consumer
|
13,723
|
—
|
—
|
—
|
13,723
|
|||||||||||||||
Total
|
$
|
544,956
|
$
|
44,662
|
$
|
3,207
|
$
|
9,077
|
$
|
601,902
|
As of December 31, 2017
|
||||||||||||||||||||
Pass
|
Watch
|
Special mention
|
Substandard
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Construction & development
|
$
|
103,787
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
103,787
|
||||||||||
1-4 family real estate
|
23,011
|
8,656
|
—
|
111
|
31,778
|
|||||||||||||||
Commercial real estate - other
|
127,771
|
9,088
|
—
|
675
|
137,534
|
|||||||||||||||
Commercial & industrial
|
192,035
|
7,764
|
4,146
|
1,031
|
204,976
|
|||||||||||||||
Agricultural
|
64,990
|
90
|
7,228
|
2,563
|
74,871
|
|||||||||||||||
Consumer
|
11,555
|
—
|
—
|
76
|
11,631
|
|||||||||||||||
Total
|
$
|
523,149
|
$
|
25,598
|
$
|
11,374
|
$
|
4,456
|
$
|
564,577
|
As of December 31, 2016
|
||||||||||||||||||||
Pass
|
Watch
|
Special mention
|
Substandard
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Construction & development
|
$
|
114,728
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
114,728
|
||||||||||
1-4 family real estate
|
19,184
|
675
|
—
|
1,153
|
21,012
|
|||||||||||||||
Commercial real estate - other
|
74,682
|
5,826
|
2,815
|
4,112
|
87,435
|
|||||||||||||||
Commercial & industrial
|
163,112
|
6,268
|
9,631
|
5,941
|
184,952
|
|||||||||||||||
Agricultural
|
74,989
|
812
|
2,640
|
321
|
78,762
|
|||||||||||||||
Consumer
|
16,263
|
—
|
—
|
646
|
16,909
|
|||||||||||||||
Total
|
$
|
462,958
|
$
|
13,581
|
$
|
15,086
|
$
|
12,173
|
$
|
503,798
|
As of December 31, 2018
|
||||||||||||||||
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded Investment
|
Post-Modification
Outstanding
Recorded Investment
|
Specific Reserves
Allocated
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial & industrial
|
1
|
$
|
501
|
$
|
501
|
$
|
-
|
|||||||||
Total
|
1
|
$
|
501
|
$
|
501
|
$
|
-
|
As of December 31, 2017
|
||||||||||||||||
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded Investment
|
Post-Modification
Outstanding
Recorded Investment
|
Specific Reserves
Allocated
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial real estate - other
|
1
|
$
|
675
|
$
|
675
|
$
|
300
|
|||||||||
Commercial & industrial
|
1
|
861
|
861
|
-
|
||||||||||||
Total
|
2
|
$
|
1,536
|
$
|
1,536
|
$
|
300
|
As of December 31, 2016
|
||||||||||||||||
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded Investment
|
Post-Modification
Outstanding
Recorded Investment
|
Specific Reserves
Allocated
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial real estate - other
|
1
|
$
|
805
|
$
|
805
|
$
|
—
|
|||||||||
Total
|
1
|
$
|
805
|
$
|
805
|
$
|
—
|
As of December 31, 2018
|
As of December 31, 2017
|
As of December 31, 2016
|
||||||||||||||||||||||
Number of
Contracts
|
Amount
|
Number of
Contracts
|
Amount
|
Number of
Contracts
|
Amount
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Accrual
|
-
|
$
|
-
|
1
|
$
|
675
|
1
|
$
|
805
|
|||||||||||||||
Nonaccrual
|
1
|
501
|
1
|
861
|
—
|
—
|
||||||||||||||||||
Total
|
1
|
$
|
501
|
2
|
$
|
1,536
|
1
|
$
|
805
|
As of December 31,
|
||||||||||||||||||||||||
2018
|
2017
|
2016
|
||||||||||||||||||||||
Amount
|
Percentage
of
Total
|
Amount
|
Percentage
of
Total
|
Amount
|
Percentage
of
Total
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Noninterest-bearing demand
|
$
|
201,159
|
29.8
|
%
|
$
|
165,911
|
26.5
|
%
|
$
|
127,434
|
23.2
|
%
|
||||||||||||
Interest-bearing:
|
||||||||||||||||||||||||
NOW deposits
|
91,896
|
13.6
|
74,870
|
12.0
|
141,224
|
25.7
|
||||||||||||||||||
Money market
|
118,150
|
17.5
|
56,671
|
9.1
|
21,430
|
3.9
|
||||||||||||||||||
Savings deposits
|
69,548
|
10.3
|
85,000
|
13.6
|
107,266
|
19.5
|
||||||||||||||||||
Time deposits (more than $100,000)
|
167,304
|
24.8
|
213,575
|
34.1
|
118,797
|
21.6
|
||||||||||||||||||
Time deposits ($100,000 or less)
|
27,846
|
4.1
|
29,804
|
4.8
|
33,405
|
6.1
|
||||||||||||||||||
Total interest-bearing
|
474,744
|
70.2
|
459,920
|
73.5
|
422,122
|
76.8
|
||||||||||||||||||
Total deposits
|
$
|
675,903
|
100.0
|
%
|
$
|
625,831
|
100.0
|
%
|
$
|
549,556
|
100.0
|
%
|
As of the Year Ended
December 31,
|
||||||||||||||||||||||||
2018
|
2017
|
2016
|
||||||||||||||||||||||
Average
Balance
|
Weighted
Average
Rate
|
Average
Balance
|
Weighted
Average
Rate
|
Average
Balance
|
Weighted
Average
Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Noninterest-bearing demand
|
$
|
183,750
|
0.00
|
%
|
$
|
142,035
|
0.00
|
%
|
$
|
125,139
|
0.00
|
%
|
||||||||||||
Interest-bearing:
|
||||||||||||||||||||||||
NOW
|
71,384
|
1.56
|
134,351
|
1.02
|
113,485
|
0.67
|
||||||||||||||||||
Money market
|
90,230
|
1.65
|
29,961
|
0.90
|
21,753
|
0.71
|
||||||||||||||||||
Savings
|
79,267
|
1.23
|
78,477
|
0.73
|
104,200
|
0.58
|
||||||||||||||||||
Time
|
220,023
|
1.55
|
200,513
|
1.14
|
163,303
|
0.93
|
||||||||||||||||||
Total interest-bearing
|
460,904
|
1.52
|
443,302
|
1.02
|
402,741
|
0.76
|
||||||||||||||||||
Total deposits
|
$
|
644,654
|
1.08
|
%
|
$
|
585,337
|
0.77
|
%
|
$
|
527,880
|
0.58
|
%
|
As of December 31, 2018 Maturity Within:
|
||||||||||||||||||||
Three Months
|
Three to
Six Months
|
Six to
12 Months
|
After
12 Months
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Time deposits (more than $100,000)
|
$
|
6,229
|
$
|
4,791
|
$
|
10,342
|
$
|
6,484
|
$
|
27,846
|
||||||||||
Time deposits ($100,000 or less)
|
33,308
|
41,193
|
71,827
|
20,976
|
167,304
|
|||||||||||||||
Total time deposits
|
$
|
39,537
|
$
|
45,984
|
$
|
82,169
|
$
|
27,460
|
$
|
195,150
|
As of December 31, 2017 Maturity Within:
|
||||||||||||||||||||
(Dollars in thousands)
|
Three Months
|
Three to
Six Months
|
Six to
12 Months
|
After
12 Months
|
Total
|
|||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Time deposits (more than $100,000)
|
$
|
25,436
|
$
|
46,661
|
$
|
94,473
|
$
|
47,005
|
$
|
213,575
|
||||||||||
Time deposits ($100,000 or less)
|
7,615
|
4,710
|
8,243
|
9,236
|
29,804
|
|||||||||||||||
Total time deposits
|
$
|
33,051
|
$
|
51,371
|
$
|
102,716
|
$
|
56,241
|
$
|
243,379
|
As of December 31, 2016 Maturity Within:
|
||||||||||||||||||||
(Dollars in thousands)
|
Three Months
|
Three to
Six Months
|
Six to
12 Months
|
After
12 Months
|
Total
|
|||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Time deposits (more than $100,000)
|
$
|
19,543
|
$
|
24,648
|
$
|
49,806
|
$
|
24,800
|
$
|
118,797
|
||||||||||
Time deposits ($100,000 or less)
|
8,864
|
5,920
|
9,976
|
8,645
|
33,405
|
|||||||||||||||
Total time deposits
|
$
|
28,407
|
$
|
30,568
|
$
|
59,782
|
$
|
33,445
|
$
|
152,202
|
Actual
|
With
Capital Conservation
Buffer
|
Minimum
To be Considered
“Well-Capitalized”
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
As of
December 31, 2018:
|
||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
$
|
92,693
|
15.86
|
%
|
$
|
57,709
|
9.875
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank
|
93,704
|
16.03
|
57,709
|
9.875
|
58,439
|
10.00
|
||||||||||||||||||
Tier 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
85,382
|
14.61
|
46,021
|
7.875
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
86,393
|
14.78
|
46,021
|
7.875
|
46,751
|
8.00
|
||||||||||||||||||
CET 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
85,382
|
14.61
|
37,255
|
6.375
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
86,393
|
14.78
|
37,255
|
6.375
|
37,985
|
6.50
|
||||||||||||||||||
Tier 1 leverage ratio
|
||||||||||||||||||||||||
Company
|
85,382
|
11.13
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
86,393
|
11.26
|
N/A
|
N/A
|
38,355
|
5.00
|
Actual
|
With
Capital Conservation
Buffer
|
Minimum
To be Considered
“Well-Capitalized”
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
As of
December 31, 2017:
|
||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
$
|
74,140
|
12.86
|
%
|
$
|
53,331
|
9.250
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank
|
79,740
|
13.83
|
53,330
|
9.250
|
57,654
|
10.00
|
||||||||||||||||||
Tier 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
66,928
|
11.61
|
41,800
|
7.250
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
75,528
|
12.58
|
41,799
|
7.250
|
46,123
|
8.00
|
||||||||||||||||||
CET 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
66,928
|
11.61
|
33,152
|
5.750
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
75,528
|
12.58
|
33,151
|
5.750
|
37,475
|
6.50
|
||||||||||||||||||
Tier 1 leverage ratio
|
||||||||||||||||||||||||
Company
|
66,928
|
9.72
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
75,528
|
10.53
|
N/A
|
N/A
|
34,436
|
5.00
|
Actual
|
With
Capital Conservation
Buffer
|
Minimum
To be Considered
“Well-Capitalized”
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
As of December 31, 2016:
|
||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
$
|
58,077
|
11.14
|
%
|
$
|
44,975
|
8.625
|
%
|
N/A
|
N/A
|
||||||||||||||
Bank
|
65,582
|
12.58
|
44,975
|
8.625
|
52,145
|
10.00
|
||||||||||||||||||
Tier 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
51,559
|
9.89
|
34,546
|
6.625
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
59,060
|
11.33
|
34,546
|
6.625
|
41,716
|
8.00
|
||||||||||||||||||
CET 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Company
|
51,559
|
9.89
|
26,724
|
5.125
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
59,060
|
11.33
|
26,724
|
5.125
|
33,894
|
6.50
|
||||||||||||||||||
Tier 1 leverage ratio
|
||||||||||||||||||||||||
Company
|
51,559
|
8.44
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||
Bank
|
59,060
|
9.67
|
N/A
|
N/A
|
30,529
|
5.00
|
Payments Due as of December 31, 2018
|
||||||||||||||||||||
Within
One Year
|
One to
Three Years
|
Three to
Five Years
|
After
Five Years
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Deposits without a stated maturity
|
$
|
480,753
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
480,753
|
||||||||||
Time deposits
|
167,681
|
23,406
|
4,054
|
-
|
195,141
|
|||||||||||||||
Borrowings
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Operating lease commitments
|
579
|
802
|
303
|
-
|
1,684
|
|||||||||||||||
Total contractual obligations
|
$
|
649,022
|
$
|
24,208
|
$
|
4,357
|
$
|
-
|
$
|
677,587
|
As of December 31,
|
||||||||||||
2018
|
2017
|
2016
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Commitments to extend credit
|
$
|
135,015
|
$
|
145,888
|
$
|
158,700
|
||||||
Standby letters of credit
|
1,078
|
1,544
|
747
|
|||||||||
Total
|
$
|
136,093
|
$
|
147,432
|
$
|
159,447
|
As of December 31,
|
As of December 31,
|
||||||||||||||||
2018
|
2017
|
||||||||||||||||
Change in Interest Rates (Basis Points)
|
Percent
Change in
Net Interest
Income
|
Percent
Change in
Fair Value of
Equity
|
Percent
Change in
Net Interest
Income
|
Percent
Change in
Fair Value of
Equity
|
|||||||||||||
+400
|
48.28
|
%
|
22.97
|
%
|
41.60
|
%
|
21.96
|
%
|
|||||||||
+300
|
35.66
|
21.50
|
28.87
|
20.54
|
|||||||||||||
+200
|
22.99
|
19.95
|
17.24
|
19.01
|
|||||||||||||
+100
|
10.17
|
18.29
|
6.23
|
17.36
|
|||||||||||||
Base
|
(3.07
|
)
|
16.50
|
0.04
|
15.59
|
||||||||||||
-100
|
(15.30
|
)
|
14.58
|
(4.72
|
)
|
13.73
|
78 | |
Consolidated Financial Statements
|
|
79 | |
80 | |
81 | |
82 | |
83-115 |
Assets
|
December 31,
2018
|
December 31,
2017
|
||||||
Cash and due from banks
|
$
|
128,090
|
$
|
100,054
|
||||
Interest-bearing time deposits in other banks
|
31,759
|
30,168
|
||||||
Loans, net of allowance for loan losses of $7,832 and $7,654 at December 31, 2018 and December 31, 2017, respectively
|
592,078
|
555,347
|
||||||
Loans held for sale
|
512
|
388
|
||||||
Premises and equipment, net
|
7,753
|
9,602
|
||||||
Nonmarketable equity securities
|
1,055
|
1,049
|
||||||
Foreclosed assets held for sale
|
110
|
100
|
||||||
Goodwill and intangibles
|
1,995
|
2,201
|
||||||
Interest receivable and other assets
|
7,159
|
4,685
|
||||||
Total assets
|
$
|
770,511
|
$
|
703,594
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Deposits
|
||||||||
Noninterest-bearing
|
$
|
201,159
|
$
|
165,911
|
||||
Interest-bearing
|
474,744
|
459,920
|
||||||
Total deposits
|
675,903
|
625,831
|
||||||
Borrowings
|
-
|
5,600
|
||||||
Income taxes payable
|
1,913
|
-
|
||||||
Interest payable and other liabilities
|
4,229
|
2,987
|
||||||
Total liabilities
|
682,045
|
634,418
|
||||||
Shareholders’ equity
|
||||||||
Preferred stock, par value $0.01 per share, 1,000,000 shares authorized; none issued or outstanding
|
-
|
-
|
||||||
Common stock, non-voting, par value $0.01 per share, 20,000,000 shares authorized; none issued or outstanding
|
-
|
-
|
||||||
Common stock, $0.01 par value; 50,000,000 shares authorized; 10,187,500 shares issued and outstanding at December 31, 2018: 7,287,500 shares outstanding at December 31, 2017
|
102
|
73
|
||||||
Additional paid-in capital
|
80,275
|
6,987
|
||||||
Retained earnings
|
8,089
|
62,116
|
||||||
Total shareholders’ equity
|
88,466
|
69,176
|
||||||
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
770,511
|
$
|
703,594
|
For the Years Ended December 31,
|
||||||||||||
2018
|
2017
|
2016
|
||||||||||
Interest Income
|
||||||||||||
Loans, including fees
|
$
|
44,279
|
$
|
41,450
|
$
|
32,254
|
||||||
Interest-bearing time deposits in other banks
|
588
|
592
|
574
|
|||||||||
Interest-bearing deposits in other banks
|
1,933
|
828
|
325
|
|||||||||
Total interest income
|
46,800
|
42,870
|
33,153
|
|||||||||
Interest Expense
|
||||||||||||
Deposits
|
6,994
|
4,502
|
3,041
|
|||||||||
Other borrowings
|
175
|
237
|
262
|
|||||||||
Total interest expense
|
7,169
|
4,739
|
3,303
|
|||||||||
Net Interest Income
|
39,631
|
38,131
|
29,850
|
|||||||||
Provision for Loan Losses
|
200
|
1,246
|
1,554
|
|||||||||
Net Interest Income After Provision for Loan Losses
|
39,431
|
36,885
|
28,296
|
|||||||||
Noninterest Income
|
||||||||||||
Secondary market income
|
212
|
183
|
56
|
|||||||||
Service charges on deposit accounts
|
347
|
336
|
346
|
|||||||||
Other
|
772
|
916
|
1,241
|
|||||||||
Total noninterest income
|
1,331
|
1,435
|
1,643
|
|||||||||
Noninterest Expense
|
||||||||||||
Salaries and employee benefits
|
8,113
|
7,611
|
6,516
|
|||||||||
Furniture and equipment
|
684
|
831
|
693
|
|||||||||
Occupancy
|
1,310
|
1,049
|
1,006
|
|||||||||
Data and item processing
|
966
|
891
|
949
|
|||||||||
Accounting, marketing and legal fees
|
305
|
284
|
246
|
|||||||||
Regulatory assessments
|
542
|
450
|
638
|
|||||||||
Advertising and public relations
|
553
|
433
|
534
|
|||||||||
Travel, lodging and entertainment
|
699
|
1,041
|
543
|
|||||||||
Other
|
1,793
|
1,941
|
1,997
|
|||||||||
Total noninterest expense
|
14,965
|
14,531
|
13,122
|
|||||||||
Income Before Taxes
|
25,797
|
23,789
|
16,817
|
|||||||||
Income tax expense
|
797
|
-
|
-
|
|||||||||
Net Income
|
$
|
25,000
|
$
|
23,789
|
$
|
16,817
|
||||||
Basic earnings per common share
|
$
|
3.08
|
$
|
3.26
|
$
|
2.31
|
||||||
Diluted earnings per common share
|
3.03
|
3.26
|
2.31
|
|||||||||
Weighted average common shares outstanding - basic
|
8,105,856
|
7,287,500
|
7,287,500
|
|||||||||
Weighted average common shares outstanding - diluted
|
8,237,638
|
7,287,500
|
7,287,500
|
Common Stock
|
Additional
CapitalPaid-in
|
Retained
Earnings |
Total
|
|||||||||||||||||
Shares
|
Amount
|
|||||||||||||||||||
Balance at January 1, 2016
|
7,287,500
|
$
|
73
|
$
|
6,987
|
$
|
38,254
|
$
|
45,314
|
|||||||||||
Net income
|
-
|
-
|
-
|
16,817
|
16,817
|
|||||||||||||||
Cash distributions declared, $0.96 per
share
|
-
|
-
|
-
|
(6,995
|
)
|
(6,995
|
)
|
|||||||||||||
Balance at December 31, 2016
|
7,287,500
|
73
|
6,987
|
48,076
|
55,136
|
|||||||||||||||
Net income
|
-
|
-
|
-
|
23,789
|
23,789
|
|||||||||||||||
Cash distributions declared, $1.34 per
share
|
-
|
-
|
-
|
(9,749
|
)
|
(9,749
|
)
|
|||||||||||||
Balance at December 31, 2017
|
7,287,500
|
73
|
6,987
|
62,116
|
69,176
|
|||||||||||||||
Net income
|
-
|
-
|
-
|
25,000
|
25,000
|
|||||||||||||||
Common stock issued, net of offering
costs
|
2,900,000
|
29
|
50,125
|
-
|
50,154
|
|||||||||||||||
Capital injection
|
-
|
-
|
137
|
-
|
137
|
|||||||||||||||
Reclassification of undistributed S
Corporation earnings
|
-
|
-
|
22,872
|
(22,872
|
)
|
-
|
||||||||||||||
Stock-based compensation expense
|
-
|
-
|
154
|
-
|
154
|
|||||||||||||||
Cash distributions declared, $7.71 per
share
|
-
|
-
|
-
|
(56,155
|
)
|
(56,155
|
)
|
|||||||||||||
Balance at December 31, 2018
|
10,187,500
|
$
|
102
|
$
|
80,275
|
$
|
8,089
|
$
|
88,466
|
For the Years Ended December 31,
|
||||||||||||
2018
|
2017
|
2016
|
||||||||||
Operating Activities
|
||||||||||||
Net income
|
$
|
25,000
|
$
|
23,789
|
$
|
16,817
|
||||||
Items not requiring (providing) cash
|
||||||||||||
Depreciation and amortization
|
1,097
|
1,088
|
799
|
|||||||||
Provision for loan losses
|
200
|
1,246
|
1,554
|
|||||||||
Net increase on other real estate owned
|
(10
|
)
|
-
|
-
|
||||||||
Gain on sales of loans
|
(212
|
)
|
(183
|
)
|
(56
|
)
|
||||||
Stock-based compensation expense
|
154
|
-
|
-
|
|||||||||
Cash receipts from the sale of loans originated for sale
|
8,185
|
9,060
|
2,115
|
|||||||||
Cash disbursements for loans originated for sale
|
(8,097
|
)
|
(9,108
|
)
|
(2,216
|
)
|
||||||
Loss (gain) on sale of other real estate owned
|
3
|
92
|
(147
|
)
|
||||||||
Benefit for deferred income tax
|
(1,069
|
)
|
-
|
-
|
||||||||
Changes in
|
||||||||||||
Interest receivable and other assets
|
(1,405
|
)
|
(415
|
)
|
41
|
|||||||
Interest payable and other liabilities
|
3,155
|
308
|
450
|
|||||||||
Net cash provided by operating activities
|
27,001
|
25,877
|
19,357
|
|||||||||
Investing Activities
|
||||||||||||
Maturities of interest-bearing time deposits in other banks
|
3,884
|
1,743
|
1,494
|
|||||||||
Purchases of interest-bearing time deposits in other banks
|
(5,475
|
)
|
(2,490
|
)
|
(1,734
|
)
|
||||||
Net change in loans
|
(36,981
|
)
|
(61,668
|
)
|
(42,579
|
)
|
||||||
Purchases of premises and equipment
|
(378
|
)
|
(3,969
|
)
|
(2,319
|
)
|
||||||
Proceeds from sale of premises and equipment
|
1,336
|
-
|
-
|
|||||||||
Purchase of nonmarketable equity securities
|
(6
|
)
|
(6
|
)
|
(38
|
)
|
||||||
Proceeds from sale of foreclosed assets
|
47
|
597
|
896
|
|||||||||
Net cash used in investing activities
|
(37,573
|
)
|
(65,793
|
)
|
(44,280
|
)
|
||||||
Financing Activities
|
||||||||||||
Net change in deposits
|
50,072
|
76,275
|
40,786
|
|||||||||
Repayment of borrowed funds
|
(5,600
|
)
|
(800
|
)
|
(800
|
)
|
||||||
Cash distributions paid
|
(56,155
|
)
|
(9,749
|
)
|
(6,995
|
)
|
||||||
Capital injection
|
137
|
-
|
-
|
|||||||||
Net proceeds from issuance of common stock
|
50,154
|
-
|
-
|
|||||||||
Net cash provided by financing activities
|
38,608
|
65,726
|
32,991
|
|||||||||
Increase in Cash and Due from Banks
|
28,036
|
25,810
|
8,068
|
|||||||||
Cash and Due from Banks, Beginning of Year
|
100,054
|
74,244
|
66,176
|
|||||||||
Cash and Due from Banks, End of Year
|
$
|
128,090
|
$
|
100,054
|
$
|
74,244
|
||||||
Supplemental Disclosure of Cash Flows Information
|
||||||||||||
Interest paid
|
$
|
7,304
|
$
|
4,739
|
$
|
3,303
|
||||||
Supplemental Disclosures of Non-Cash Investing Activities
|
||||||||||||
Foreclosed assets acquired in settlement of loans
|
$
|
50
|
$
|
684
|
$
|
4
|
Note 1: |
Nature of Operations and Summary of Significant Accounting Policies
|
Buildings and improvements
|
15–30 years
|
Furniture and equipment
|
5–10 years
|
Aircraft
|
5-7 years
|
Automobiles
|
3–5 years
|
Note 2: |
Change in Capital Structure
|
Note 3: |
Restriction on Cash and Due from Banks
|
Note 4: |
Earnings Per Share
|
|
As of and for the Years Ended December 31,
|
|||||||||||
|
2018
|
2017
|
2016
|
|||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||
Numerator
|
||||||||||||
Net income
|
$
|
25,000
|
$
|
23,789
|
$
|
16,817
|
||||||
|
||||||||||||
Denominator
|
||||||||||||
Denominator for basic earnings per common share
|
8,105,856
|
7,287,500
|
7,287,500
|
|||||||||
Dilutive effect of stock compensation (1)
|
131,782
|
-
|
-
|
|||||||||
Denominator for diluted earnings per share
|
8,237,638
|
7,287,500
|
7,287,500
|
|||||||||
|
||||||||||||
Earnings per common share
|
||||||||||||
Basic
|
$
|
3.08
|
$
|
3.26
|
$
|
2.31
|
||||||
Diluted
|
$
|
3.03
|
$
|
3.26
|
$
|
2.31
|
(1)
|
Nonqualified stock options outstanding of 150,000 in 2018 have not been included in diluted earnings per share because to do so would have been antidilutive for the
periods presented.
|
Note 5: |
Loans and Allowance for Loan Losses
|
December 31,
2018
|
December 31,
2017
|
|||||||
Construction & development
|
$
|
87,267
|
$
|
103,787
|
||||
1-4 family commercial
|
33,278
|
31,778
|
||||||
Commercial real estate - other
|
156,396
|
137,534
|
||||||
Total commercial real estate
|
276,941
|
273,099
|
||||||
Commercial & industrial
|
248,394
|
204,976
|
||||||
Agricultural
|
62,844
|
74,871
|
||||||
Consumer
|
13,723
|
11,631
|
||||||
Gross loans
|
601,902
|
564,577
|
||||||
Less allowance for loan losses
|
(7,832
|
)
|
(7,654
|
)
|
||||
Less deferred loan fees
|
(1,992
|
)
|
(1,576
|
)
|
||||
Net loans
|
$
|
592,078
|
$
|
555,347
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
December 31, 2018
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
1,407
|
$
|
431
|
$
|
1,865
|
$
|
2,779
|
$
|
1,015
|
$
|
157
|
$
|
7,654
|
||||||||||||||
Charge-offs
|
-
|
(25
|
)
|
-
|
(73
|
)
|
-
|
-
|
(98
|
)
|
||||||||||||||||||
Recoveries
|
-
|
3
|
-
|
71
|
1
|
1
|
76
|
|||||||||||||||||||||
Net charge-offs
|
-
|
(22
|
)
|
-
|
(2
|
)
|
1
|
1
|
(22
|
)
|
||||||||||||||||||
Provision (credit) for loan losses
|
(271
|
)
|
24
|
170
|
454
|
(198
|
)
|
21
|
200
|
|||||||||||||||||||
Balance, end of period
|
$
|
1,136
|
$
|
433
|
$
|
2,035
|
$
|
3,231
|
$
|
818
|
$
|
179
|
$
|
7,832
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
December 31, 2017
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
1,565
|
$
|
287
|
$
|
1,193
|
$
|
2,523
|
$
|
1,074
|
$
|
231
|
$
|
6,873
|
||||||||||||||
Charge-offs
|
-
|
-
|
(224
|
)
|
(242
|
)
|
-
|
(46
|
)
|
(512
|
)
|
|||||||||||||||||
Recoveries
|
-
|
23
|
6
|
6
|
-
|
12
|
47
|
|||||||||||||||||||||
Net charge-offs
|
-
|
23
|
(218
|
)
|
(236
|
)
|
-
|
(34
|
)
|
(465
|
)
|
|||||||||||||||||
Provision (credit) for loan losses
|
(158
|
)
|
121
|
890
|
492
|
(59
|
)
|
(40
|
)
|
1,246
|
||||||||||||||||||
Balance, end of period
|
$
|
1,407
|
$
|
431
|
$
|
1,865
|
$
|
2,779
|
$
|
1,015
|
$
|
157
|
$
|
7,654
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
December 31, 2016
|
||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
847
|
$
|
245
|
$
|
739
|
$
|
2,567
|
$
|
986
|
$
|
293
|
$
|
5,677
|
||||||||||||||
Charge-offs
|
(1
|
)
|
(104
|
)
|
(10
|
)
|
(305
|
)
|
(75
|
)
|
(93
|
)
|
(588
|
)
|
||||||||||||||
Recoveries
|
-
|
60
|
-
|
151
|
-
|
19
|
230
|
|||||||||||||||||||||
Net charge-offs
|
(1
|
)
|
(44
|
)
|
(10
|
)
|
(154
|
)
|
(75
|
)
|
(74
|
)
|
(358
|
)
|
||||||||||||||
Provision (credit) for loan losses
|
719
|
86
|
464
|
110
|
163
|
12
|
1,554
|
|||||||||||||||||||||
Balance, end of period
|
$
|
1,565
|
$
|
287
|
$
|
1,193
|
$
|
2,523
|
$
|
1,074
|
$
|
231
|
$
|
6,873
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
December 31, 2018
|
||||||||||||||||||||||||||||
Allowance Balance
|
||||||||||||||||||||||||||||
Ending balance
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
-
|
$
|
-
|
$
|
32
|
$
|
14
|
$
|
-
|
$
|
-
|
$
|
46
|
||||||||||||||
Collectively evaluated for impairment
|
1,136
|
433
|
2,003
|
3,217
|
818
|
179
|
7,786
|
|||||||||||||||||||||
Total
|
$
|
1,136
|
$
|
433
|
$
|
2,035
|
$
|
3,231
|
$
|
818
|
$
|
179
|
$
|
7,832
|
||||||||||||||
Gross Loans
|
||||||||||||||||||||||||||||
Ending balance
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
-
|
$
|
115
|
$
|
484
|
$
|
7,381
|
$
|
1,097
|
$
|
-
|
$
|
9,077
|
||||||||||||||
Collectively evaluated for impairment
|
87,267
|
33,163
|
155,912
|
241,013
|
61,747
|
13,723
|
592,825
|
|||||||||||||||||||||
Total
|
$
|
87,267
|
$
|
33,278
|
$
|
156,396
|
$
|
248,394
|
$
|
62,844
|
$
|
13,723
|
$
|
601,902
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
December 31, 2017
|
||||||||||||||||||||||||||||
Allowance Balance
|
||||||||||||||||||||||||||||
Ending balance
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
-
|
$
|
-
|
$
|
300
|
$
|
22
|
$
|
64
|
$
|
10
|
$
|
396
|
||||||||||||||
Collectively evaluated for impairment
|
1,407
|
431
|
1,565
|
2,757
|
951
|
147
|
7,258
|
|||||||||||||||||||||
Total
|
$
|
1,407
|
$
|
431
|
$
|
1,865
|
$
|
2,779
|
$
|
1,015
|
$
|
157
|
$
|
7,654
|
||||||||||||||
Gross Loans
|
||||||||||||||||||||||||||||
Ending balance
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
-
|
$
|
111
|
$
|
675
|
$
|
1,031
|
$
|
2,563
|
$
|
76
|
$
|
4,456
|
||||||||||||||
Collectively evaluated for impairment
|
103,787
|
31,667
|
136,859
|
203,945
|
72,308
|
11,555
|
560,121
|
|||||||||||||||||||||
Total
|
$
|
103,787
|
$
|
31,778
|
$
|
137,534
|
$
|
204,976
|
$
|
74,871
|
$
|
11,631
|
$
|
564,577
|
·
|
Grade 1 (Pass) – These loans generally conform to Bank policies, and are characterized by policy conforming advance rates on collateral, and have well-defined repayment sources. In addition, these credits
are extended to Borrowers and/or Guarantors with a strong balance sheet and either substantial liquidity or a reliable income history.
|
· |
Grade 2 (Watch) – These loans are still considered “Pass” credits; however,
various factors such as industry stress, material changes in cash flow or financial conditions, or deficiencies in loan documentation, or other risk issues determined by the Lending Officer, Commercial Loan Committee (CLC), or Credit
Quality Committee (CQC) warrant a heightened sense and frequency of monitoring.
|
· |
Grade 3 (Special Mention) – These
loans must have observable weaknesses or evidence imprudent handling or structural issues. The weaknesses require close attention and the remediation of those weaknesses is necessary. No risk of probable loss exists. Credits in this
category are expected to quickly migrate to a “2” or a “4” as this is viewed as a transitory loan grade.
|
· |
Grade 4 (Substandard) – These loans are not adequately protected by the sound
worth and debt service capacity of the Borrower, but may be well secured. They have defined weaknesses relative to cash flow, collateral, financial condition, or other factors that might jeopardize repayment of all of the principal
and interest on a timely basis. There is the possibility that a future loss will occur if weaknesses are not remediated.
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
December 31, 2018
|
||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||
1 (Pass)
|
$
|
84,485
|
$
|
29,942
|
$
|
154,353
|
$
|
204,671
|
$
|
57,782
|
$
|
13,723
|
$
|
544,956
|
||||||||||||||
2 (Watch)
|
2,782
|
3,221
|
1,559
|
36,342
|
758
|
-
|
44,662
|
|||||||||||||||||||||
3 (Special Mention)
|
-
|
-
|
-
|
-
|
3,207
|
-
|
3,207
|
|||||||||||||||||||||
4 (Substandard)
|
-
|
115
|
484
|
7,381
|
1,097
|
-
|
9,077
|
|||||||||||||||||||||
Total
|
$
|
87,267
|
$
|
33,278
|
$
|
156,396
|
$
|
248,394
|
$
|
62,844
|
$
|
13,723
|
$
|
601,902
|
Construction &
Development
|
1 - 4 Family
Commercial
|
Commercial
Real Estate -
Other
|
Commercial
& Industrial
|
Agricultural
|
Consumer
|
Total
|
||||||||||||||||||||||
December 31, 2017
|
||||||||||||||||||||||||||||
Grade
|
||||||||||||||||||||||||||||
1 (Pass)
|
$
|
103,787
|
$
|
23,011
|
$
|
127,771
|
$
|
192,035
|
$
|
64,990
|
$
|
11,555
|
$
|
523,149
|
||||||||||||||
2 (Watch)
|
-
|
8,656
|
9,088
|
7,764
|
90
|
-
|
25,598
|
|||||||||||||||||||||
3 (Special Mention)
|
-
|
-
|
-
|
4,146
|
7,228
|
-
|
11,374
|
|||||||||||||||||||||
4 (Substandard)
|
-
|
111
|
675
|
1,031
|
2,563
|
76
|
4,456
|
|||||||||||||||||||||
Total
|
$
|
103,787
|
$
|
31,778
|
$
|
137,534
|
$
|
204,976
|
$
|
74,871
|
$
|
11,631
|
$
|
564,577
|
Past Due
|
Total Loans
|
|||||||||||||||||||||||||||
30–59
Days
|
60–89
Days
|
Greater than
90 Days
|
Total
|
Current
|
Total
Loans
|
> 90 Days &
Accruing
|
||||||||||||||||||||||
December 31, 2018
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
87,267
|
$
|
87,267
|
$
|
-
|
||||||||||||||
1 - 4 Family Real Estate
|
8
|
-
|
-
|
8
|
33,270
|
33,278
|
-
|
|||||||||||||||||||||
Commercial Real Estate - other
|
-
|
-
|
-
|
-
|
156,396
|
156,396
|
-
|
|||||||||||||||||||||
Commercial & industrial
|
-
|
5
|
-
|
5
|
248,389
|
248,394
|
-
|
|||||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
62,844
|
62,844
|
-
|
|||||||||||||||||||||
Consumer
|
41
|
-
|
-
|
41
|
13,682
|
13,723
|
-
|
|||||||||||||||||||||
Total
|
$
|
49
|
$
|
5
|
$
|
-
|
$
|
54
|
$
|
601,848
|
$
|
601,902
|
$
|
-
|
||||||||||||||
December 31, 2017
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
103,787
|
$
|
103,787
|
$
|
-
|
||||||||||||||
1 - 4 Family Real Estate
|
-
|
-
|
111
|
111
|
31,667
|
31,778
|
-
|
|||||||||||||||||||||
Commercial Real Estate - other
|
-
|
-
|
-
|
-
|
137,534
|
137,534
|
-
|
|||||||||||||||||||||
Commercial & industrial
|
2
|
-
|
-
|
2
|
204,974
|
204,976
|
-
|
|||||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
74,871
|
74,871
|
-
|
|||||||||||||||||||||
Consumer
|
54
|
-
|
-
|
54
|
11,577
|
11,631
|
-
|
|||||||||||||||||||||
Total
|
$
|
56
|
$
|
-
|
$
|
111
|
$
|
167
|
$
|
564,410
|
$
|
564,577
|
$
|
-
|
Unpaid
Principal
Balance
|
Recorded
Investment
with No
Allowance
|
Recorded
Investment
with an
Allowance
|
Total
Recorded
Investment
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||||||||||||
December 31, 2018
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||
1 - 4 Family Real Estate
|
115
|
115
|
-
|
115
|
-
|
82
|
4
|
|||||||||||||||||||||
Commercial Real Estate - other
|
1,990
|
1,506
|
484
|
1,990
|
32
|
440
|
148
|
|||||||||||||||||||||
Commercial & industrial
|
7,614
|
7,359
|
22
|
7,381
|
14
|
7,049
|
560
|
|||||||||||||||||||||
Agricultural
|
1,097
|
1,097
|
-
|
1,097
|
-
|
1,313
|
82
|
|||||||||||||||||||||
Consumer
|
5
|
-
|
-
|
-
|
-
|
28
|
1
|
|||||||||||||||||||||
Total
|
$
|
10,821
|
$
|
10,077
|
$
|
506
|
$
|
10,583
|
$
|
46
|
$
|
8,912
|
$
|
795
|
||||||||||||||
December 31, 2017
|
||||||||||||||||||||||||||||
Construction & development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
8
|
$
|
-
|
||||||||||||||
1 - 4 Family Real Estate
|
-
|
111
|
-
|
111
|
-
|
111
|
-
|
|||||||||||||||||||||
Commercial Real Estate - other
|
787
|
-
|
675
|
675
|
300
|
1,615
|
50
|
|||||||||||||||||||||
Commercial & industrial
|
1,207
|
990
|
41
|
1,031
|
22
|
3,645
|
109
|
|||||||||||||||||||||
Agricultural
|
2,578
|
2,273
|
290
|
2,563
|
64
|
2,042
|
178
|
|||||||||||||||||||||
Consumer
|
88
|
61
|
15
|
76
|
10
|
219
|
5
|
|||||||||||||||||||||
Total
|
$
|
4,660
|
$
|
3,435
|
$
|
1,021
|
$
|
4,456
|
$
|
396
|
$
|
7,640
|
$
|
342
|
As of
December 31,
|
||||||||
2018
|
2017
|
|||||||
Nonaccrual loans
|
$
|
2,615
|
$
|
1,217
|
||||
Troubled-debt restructurings (1)
|
-
|
675
|
||||||
Accruing loans 90 or more days past due
|
-
|
-
|
||||||
Total nonperforming loans
|
$
|
2,615
|
$
|
1,892
|
(1)
|
$501,000 and $861,000 of TDRs as of December 31, 2018 and 2017, respectively, are included in
the nonaccrual loans balance in the line above
|
Note 6: |
Premises and Equipment
|
December 31,
2018
|
December 31,
2017
|
|||||||
Land, buildings and improvements
|
$
|
8,414
|
$
|
8,225
|
||||
Furniture and equipment
|
1,654
|
1,554
|
||||||
Aircraft
|
-
|
2,083
|
||||||
Automobiles
|
722
|
699
|
||||||
10,790
|
12,561
|
|||||||
Less accumulated depreciation
|
(3,037
|
)
|
(2,959
|
)
|
||||
Net premises and equipment
|
$
|
7,753
|
$
|
9,602
|
Note 7: |
Intangible Assets
|
December 31,
2018
|
December 31,
2017
|
|||||||||||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
|||||||||||||
Core deposit
intangible
|
$
|
2,061
|
$
|
(1,077
|
)
|
$
|
2,061
|
$
|
(871
|
)
|
2019
|
$
|
206
|
||
2020
|
206
|
|||
2021
|
206
|
|||
2022
|
206
|
|||
2023
|
160
|
|||
$
|
984
|
Note 8: |
Interest-Bearing Deposits
|
2019
|
$
|
167,681
|
||
2020
|
23,406
|
|||
2021
|
2,487
|
|||
Thereafter
|
1,567
|
|||
$
|
195,141
|
Note 9: |
Income Taxes
|
For the Year
Ended
December 31,
2018 |
||||
Federal:
|
||||
Current
|
$
|
1,563
|
||
Deferred
|
(1,036
|
)
|
||
Total federal tax provision
|
$
|
527
|
||
State:
|
||||
Current
|
$
|
303
|
||
Deferred
|
(33
|
)
|
||
Total state tax provision
|
$
|
270
|
||
Total income tax provision
|
$
|
797
|
For the Year
Ended
December 31,
|
||||
2018
|
||||
Statutory U.S. Federal Income Tax
|
$
|
5,417
|
||
Increase (decrease) resulting from:
|
||||
State Taxes
|
213
|
|||
Benefit of S corporation status
|
(3,933
|
) | ||
Conversion as of September 24, 2018 to C corporation
|
(863
|
) | ||
Other
|
(37
|
) | ||
Provision for income taxes
|
$
|
797
|
For the
Year
Ended
December 31,
2018 |
||||
Deferred tax assets:
|
||||
Allowance for loan losses
|
$
|
1,942
|
||
Deferred compensation
|
38
|
|||
Other
|
80
|
|||
Total deferred tax assets
|
$
|
2,060
|
||
Deferred tax liabilities:
|
||||
Property and equipment
|
$
|
(268
|
)
|
|
Intangible assets
|
(220
|
)
|
||
Prepaid expenses
|
(177
|
)
|
||
Method change IRC 481(a)
|
(254
|
)
|
||
Other
|
(72
|
)
|
||
Total deferred tax liabilities
|
$
|
(991
|
)
|
|
Net deferred tax assets
|
$
|
1,069
|
For the
Year
Ended
December 31,
2018 |
||||
Balance at beginning of year
|
$
|
-
|
||
Additions for positions taken in prior years
|
15
|
|||
Reductions for positions taken in prior years
|
(2
|
)
|
||
Balance at end of year
|
$
|
13
|
Note 10: |
Letters of Credit
|
Note 11: |
Advances and Borrowings
|
Note 12: |
Regulatory Matters
|
Actual
|
Minimum
Capital Requirements
|
Minimum
To Be Well Capitalized
Under Prompt
Corrective Action
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
As of December 31, 2018
|
||||||||||||||||||||||||
Total capital (to
risk-weighted assets)-
|
$
|
93,704
|
16.03
|
%
|
$
|
46,751
|
8.00
|
%
|
$
|
58,439
|
10.00
|
%
|
||||||||||||
Tier I capital (to
risk-weighted assets)-
|
$
|
86,393
|
14.78
|
%
|
$
|
35,063
|
6.00
|
%
|
$
|
46,751
|
8.00
|
%
|
||||||||||||
Common Equity Tier I capital (to risk-weighted assets)-
|
$
|
86,393
|
14.78
|
%
|
$
|
26,298
|
4.50
|
%
|
$
|
37,985
|
6.50
|
%
|
||||||||||||
Tier I capital (to
average assets)-
|
$
|
86,393
|
11.26
|
%
|
$
|
30,684
|
4.00
|
%
|
$
|
38,355
|
5.00
|
%
|
||||||||||||
As of December 31, 2017
|
||||||||||||||||||||||||
Total capital (to
risk-weighted assets)-
|
$
|
79,740
|
13.83
|
%
|
$
|
46,123
|
8.00
|
%
|
$
|
57,654
|
10.00
|
%
|
||||||||||||
Tier I capital (to
risk-weighted assets)-
|
$
|
72,528
|
12.58
|
%
|
$
|
34,593
|
6.00
|
%
|
$
|
46,123
|
8.00
|
%
|
||||||||||||
Common Equity Tier I capital (to risk-weighted assets)-
|
$
|
72,528
|
12.58
|
%
|
$
|
25,945
|
4.50
|
%
|
$
|
37,475
|
6.50
|
%
|
||||||||||||
Tier I capital (to average assets)-
|
$
|
72,528
|
10.53
|
%
|
$
|
27,549
|
4.00
|
%
|
$
|
34,436
|
5.00
|
%
|
As of January 1:
|
2015
|
2016
|
2017
|
2018
|
2019
|
|||||||||||||||
Capital conservation buffer
|
0.00
|
%
|
0.625
|
%
|
1.25
|
%
|
1.875
|
%
|
2.50
|
%
|
||||||||||
Minimum total capital plus capital conservation buffer
|
8.00
|
%
|
8.625
|
%
|
9.25
|
%
|
9.875
|
%
|
10.50
|
%
|
||||||||||
Minimum Tier 1 capital plus capital conservation buffer
|
6.00
|
%
|
6.625
|
%
|
7.25
|
%
|
7.875
|
%
|
8.50
|
%
|
||||||||||
Minimum Common Equity Tier 1 capital plus capital conservation buffer
|
4.50
|
%
|
5.125
|
%
|
5.75
|
%
|
6.375
|
%
|
7.00
|
%
|
Capital Conservation Buffer
(as a % of risk-weighted assets)
|
Maximum Payout
(as a % of eligible retained income)
|
|
Greater than 2.5%
|
No payout limitations applies
|
|
≤2.5% and >1.875%
|
60%
|
|
≤1.875% and >1.25%
|
40%
|
|
≤1.25% and >0.625%
|
20%
|
|
≤0.625%
|
0%
|
Note 13: |
Related-Party Transactions
|
Year ended December 31,
|
Balance
Beginning of |
Additions
|
Collections/
Terminations |
Balance
End of
the Period |
||||||||||||
2018
|
$
|
6,684
|
$
|
7,319
|
$
|
(7,106
|
)
|
$
|
6,897
|
|||||||
2017
|
$
|
3,446
|
$
|
3,684
|
$
|
(446
|
)
|
$
|
6,684
|
Note 14: |
Employee Benefits
|
Options
|
Wgtd. Avg.
Exercise Price
|
Wgtd. Avg.
Remaining
Contractual Term
|
Aggregate
Intrinsic
Value
|
||||||||||
Year Ended December 31, 2018
|
|||||||||||||
Options Granted
|
150,000
|
$
|
19.00
|
||||||||||
Options Exercised
|
-
|
-
|
|||||||||||
Outstanding at December 31, 2018
|
150,000
|
$
|
19.00
|
9.73 Yrs
|
$
|
-
|
|||||||
Exercisable at December 31, 2018
|
-
|
-
|
-
|
Unearned stock-based compensation expense
|
||||
Risk-free interest rate
|
2.69
|
%
|
||
Dividend yield
|
2.20
|
%
|
||
Stock price volatility
|
13.70
|
%
|
||
Expected term
|
4 yrs.
|
Number of
Shares
|
Wgtd. Avg. Grant
Date Fair Value
|
|||||||
Shares granted
|
130,000
|
$
|
19.09
|
|||||
Shares settled
|
-
|
-
|
||||||
Shares forfeited
|
-
|
-
|
||||||
End of the period balance
|
130,000
|
$
|
19.09
|
Note 15: |
Disclosures About Fair Value of Assets and Liabilities
|
Level 1 |
Quoted prices in active markets for identical assets or liabilities
|
Level 2 |
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that
are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities
|
Level 3 |
Unobservable inputs supported by little or no market activity and significant to the fair value of the assets or liabilities
|
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
December 31, 2018
|
||||||||||||||||
Impaired loans (collateral- dependent)
|
$
|
506
|
$
|
-
|
$
|
-
|
$
|
506
|
||||||||
Foreclosed assets held for sale
|
$
|
110
|
$
|
-
|
$
|
-
|
$
|
110
|
||||||||
December 31, 2017
|
||||||||||||||||
Impaired loans (collateral- dependent)
|
$
|
1,021
|
$
|
-
|
$
|
-
|
$
|
1,021
|
||||||||
Foreclosed assets held for sale
|
$
|
100
|
$
|
-
|
$
|
-
|
$
|
100
|
Fair Value
|
Valuation
Technique
|
Unobservable
Inputs
|
Weighted-
Average
|
||||||||
December 31, 2018
|
|||||||||||
Collateral-dependent
impaired loans
|
$
|
506
|
Appraisals from
comparable properties
|
Estimated cost to sell
|
7-10
|
%
|
|||||
Foreclosed assets held for sale
|
$
|
110
|
Appraisals from
comparable properties
|
Estimated cost to sell
|
7-10
|
%
|
|||||
December 31, 2017
|
|||||||||||
Collateral-dependent
impaired loans
|
$
|
1,021
|
Appraisals from
comparable properties
|
Estimated cost to sell
|
7-10
|
%
|
|||||
Foreclosed assets held for sale
|
$
|
100
|
Appraisals from
comparable properties
|
Estimated cost to sell
|
7-10
|
%
|
Fair Value Measurements
|
||||||||||||||||||||
Carrying
Amount |
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
December 31, 2018
|
||||||||||||||||||||
Financial Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
128,090
|
$
|
128,090
|
$
|
-
|
$
|
-
|
$
|
128,090
|
||||||||||
Interest-bearing time deposits in other banks
|
$
|
31,759
|
$
|
-
|
$
|
31,758
|
$
|
-
|
$
|
31,758
|
||||||||||
Loans, net of allowance
|
$
|
592,078
|
$
|
-
|
$
|
591,893
|
$
|
506
|
$
|
592,399
|
||||||||||
Mortgage loans held for sale
|
$
|
512
|
$
|
-
|
$
|
512
|
$
|
-
|
$
|
512
|
||||||||||
Nonmarketable equity securities
|
$
|
1,055
|
$
|
-
|
$
|
1,055
|
$
|
-
|
$
|
1,055
|
||||||||||
Interest receivable
|
$
|
4,538
|
$
|
-
|
$
|
4,538
|
$
|
-
|
$
|
4,538
|
||||||||||
Financial Liabilities
|
||||||||||||||||||||
Deposits
|
$
|
675,903
|
$
|
-
|
$
|
675,017
|
$
|
-
|
$
|
675,017
|
||||||||||
Interest payable
|
$
|
461
|
$
|
-
|
$
|
461
|
$
|
-
|
$
|
461
|
||||||||||
December 31, 2017
|
||||||||||||||||||||
Financial Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
100,054
|
$
|
100,054
|
$
|
-
|
$
|
-
|
$
|
100,054
|
||||||||||
Interest-bearing time deposits in other banks
|
$
|
30,168
|
$
|
-
|
$
|
30,176
|
$
|
-
|
$
|
30,176
|
||||||||||
Loans, net of allowance
|
$
|
555,347
|
$
|
-
|
$
|
553,875
|
$
|
1,021
|
$
|
554,896
|
||||||||||
Mortgage loans held for sale
|
$
|
388
|
$
|
-
|
$
|
388
|
$
|
-
|
$
|
388
|
||||||||||
Nonmarketable equity securities
|
$
|
1,049
|
$
|
-
|
$
|
1,049
|
$
|
-
|
$
|
1,049
|
||||||||||
Interest receivable
|
$
|
3,674
|
$
|
-
|
$
|
3,674
|
$
|
-
|
$
|
3,674
|
||||||||||
|
||||||||||||||||||||
Financial Liabilities
|
||||||||||||||||||||
Deposits
|
$
|
625,831
|
$
|
-
|
$
|
625,013
|
$
|
-
|
$
|
625,013
|
||||||||||
Borrowings
|
$
|
5,600
|
$
|
-
|
$
|
5,600
|
$
|
-
|
$
|
5,600
|
||||||||||
Interest payable
|
$
|
404
|
$
|
-
|
$
|
404
|
$
|
-
|
$
|
404
|
Note 16: |
Financial Instruments with Off-Balance Sheet Risk
|
December 31,
2018
|
December 31,
2017
|
|||||||
Commitments to extend credit
|
$
|
135,015
|
$
|
145,888
|
||||
Financial and performance standby letters of credit
|
1,078
|
1,544
|
||||||
$
|
136,093
|
$
|
147,432
|
Note 17: |
Significant Estimates and Concentrations
|
Note 18: |
Operating Leases
|
2019
|
$
|
579
|
||
2020
|
473
|
|||
2021
|
329
|
|||
2022
|
175
|
|||
Thereafter
|
128
|
|||
$
|
1,684
|
Note 19: |
Parent-only Financial Statements
|
Condensed Balance Sheets
|
||||||||
Assets
|
December 31,
2018
|
December 31,
2017
|
||||||
Cash and due from banks
|
$
|
295
|
$
|
64
|
||||
Investment in bank subsidiary
|
87,377
|
73,718
|
||||||
Goodwill
|
1,011
|
1,011
|
||||||
Other assets
|
39
|
-
|
||||||
Total assets
|
$
|
88,722
|
$
|
74,793
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Borrowings
|
$
|
-
|
$
|
5,600
|
||||
Other liabilities
|
256
|
17
|
||||||
Total liabilities
|
256
|
5,617
|
||||||
Total shareholders’ equity
|
88,466
|
69,176
|
||||||
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
88,722
|
$
|
74,793
|
Condensed Statements of Income
|
For the Years Ended December 31,
|
|||||||||||
2018
|
2017
|
2016
|
||||||||||
Income
|
||||||||||||
Dividends received from subsidiary bank
|
$
|
11,930
|
$
|
10,765
|
$
|
8,050
|
||||||
Expense
|
||||||||||||
Interest expense
|
175
|
238
|
263
|
|||||||||
Other
|
315
|
-
|
-
|
|||||||||
Total expense
|
490
|
238
|
263
|
|||||||||
Income before income taxes and equity in undistributed net income of bank subsidiary
|
11,440
|
10,527
|
7,787
|
|||||||||
Equity in undistributed net income of bank subsidiary
|
13,521
|
13,262
|
9,030
|
|||||||||
Income before Taxes
|
24,961
|
23,789
|
16,817
|
|||||||||
Income tax benefit
|
(39
|
)
|
-
|
-
|
||||||||
Net Income Available to Common Shareholders
|
$
|
25,000
|
$
|
23,789
|
$
|
16,817
|
For the Years Ended December 31,
|
||||||||||||
Condensed Statements of Cash Flows
|
2018
|
2017
|
2016
|
|||||||||
Operating Activities
|
||||||||||||
Net income
|
$
|
25,000
|
$
|
23,789
|
$
|
16,817
|
||||||
Items not requiring (providing) cash
|
||||||||||||
Equity in undistributed net income of bank subsidiary
|
(13,521
|
)
|
(13,262
|
)
|
(9,030
|
)
|
||||||
Stock-based compensation expense
|
154
|
-
|
-
|
|||||||||
Changes in
|
||||||||||||
Other assets
|
(39
|
)
|
-
|
-
|
||||||||
Other liabilities
|
238
|
(2
|
)
|
(2
|
)
|
|||||||
Net cash provided by operating activities
|
11,832
|
10,525
|
7,785
|
|||||||||
Financing Activities
|
||||||||||||
Repayment of borrowed funds
|
(5,600
|
)
|
(800
|
)
|
(800
|
)
|
||||||
|
||||||||||||
Cash dividends paid
|
(56,155
|
)
|
(9,749
|
)
|
(6,995
|
)
|
||||||
Common stock issued, net of offering
costs
|
50,154
|
-
|
-
|
|||||||||
Net cash used in financing activities
|
(11,601
|
)
|
(10,549
|
)
|
(7,795
|
)
|
||||||
Increase (Decrease) in Cash and Due from Banks
|
231
|
(24
|
)
|
(10
|
)
|
|||||||
Cash and Due from Banks, Beginning of Year
|
64
|
88
|
98
|
|||||||||
Cash and Due from Banks, End of Year
|
$
|
295
|
$
|
64
|
$
|
88
|
||||||
Supplemental Disclosure of Cash Flows Information
|
||||||||||||
Interest paid
|
$
|
175
|
$
|
239
|
$
|
265
|
Note 20: |
Selected Quarterly Financial Data (Unaudited)
|
For the three months ended
|
||||||||||||||||
March 31,
2018
|
June 30,
2018
|
September 30,
2018
|
December 31,
2018
|
|||||||||||||
Net interest income
|
$
|
9,861
|
$
|
9,439
|
$
|
9,801
|
$
|
10,530
|
||||||||
Provision for loan losses
|
100
|
-
|
-
|
100
|
||||||||||||
Noninterest income
|
264
|
486
|
319
|
262
|
||||||||||||
Noninterest expense
|
3,675
|
3,546
|
3,805
|
3,939
|
||||||||||||
Income before income taxes
|
6,350
|
6,379
|
6,315
|
6,753
|
||||||||||||
Income tax expense (benefit)
|
-
|
-
|
(395
|
)
|
1,192
|
|||||||||||
Net income
|
$
|
6,350
|
$
|
6,379
|
$
|
6,710
|
$
|
5,561
|
||||||||
EPS (1)
|
||||||||||||||||
Basic
|
$
|
0.87
|
$
|
0.88
|
$
|
0.88
|
$
|
0.55
|
||||||||
Diluted
|
$
|
0.87
|
$
|
0.88
|
$
|
0.87
|
$
|
0.54
|
For the three months ended
|
||||||||||||||||
March 31,
2017
|
June 30,
2017
|
September 30,
2017
|
December 31,
2017
|
|||||||||||||
Net interest income
|
$
|
9,694
|
$
|
10,495
|
$
|
9,453
|
$
|
8,489
|
||||||||
Provision for loan losses
|
160
|
785
|
150
|
151
|
||||||||||||
Noninterest income
|
482
|
428
|
382
|
143
|
||||||||||||
Noninterest expense
|
3,433
|
3,449
|
3,735
|
3,914
|
||||||||||||
Income before income taxes
|
6,583
|
6,689
|
5,950
|
4,567
|
||||||||||||
Income tax expense
|
-
|
-
|
-
|
-
|
||||||||||||
Net income
|
$
|
6,583
|
$
|
6,689
|
$
|
5,950
|
$
|
4,567
|
||||||||
EPS (1)
|
||||||||||||||||
Basic
|
$
|
0.90
|
$
|
0.92
|
$
|
0.82
|
$
|
0.62
|
||||||||
Diluted
|
$
|
0.90
|
$
|
0.92
|
$
|
0.82
|
$
|
0.62
|
a) |
Controls and Procedures
|
b) |
Management’s Annual Report on Internal Control over Financial Reporting
|
c) |
Attestation Report of the Independent Registered Public Accounting Firm
|
d) |
Changes in Internal Control Over Financial Reporting
|
Amended and Restated Certificate of Incorporation of Bank7 Corp.(1)
|
|
Amended and Restated Bylaws of Bank7 Corp.(2)
|
|
Specimen Common Stock Certificate of Bank7 Corp.(3)
|
|
Form of Tax Sharing Agreement(4)
|
|
Bank7 Corp. 2018 Equity Incentive Plan(5)
|
|
Form of Stock Option award Agreement under the Bank7 Corp. 2018 Equity Incentive Plan(6)
|
|
Form of Restricted Stock Unit Award Agreement under the Bank7 Corp. 2018 Equity Incentive
Plan(7)
|
|
Form of Indemnification Agreement(8)
|
|
Form of Registration Rights Agreement(9)
|
|
Subsidiaries of Bank7 Corp.*
|
|
Consent of Independent Registered Public Accounting Firm*
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
|
Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
|
|
Certification of Chief Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
|
|
101
|
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets as of December 31, 2018 and 2017, (ii) the
Consolidated Statements of Income for the years ended December 31, 2018 and 2017, (iii) the Consolidated Statements of Retained Earnings for the years ended December 31, 2018 and 2017, (iv) the Consolidated Statements of Cash Flows for the
years ended December 31, 2018 and 2017, and (v) the notes to the Consolidated Financial Statements
|
* |
Filed herewith |
(1) |
Incorporated by reference to Exhibit 3.1 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on August 24, 2018 (File No. 333-227010).
|
(2) |
Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on August 24, 2018 (File No. 333-227010).
|
(3) |
Incorporated by reference to Exhibit 4.1 to the Registration Statement on Form S-1/A filed with the Securities and Exchange Commission on September 10, 2018 (File No.
333-227010).
|
(4) |
Incorporated by reference to Exhibit 10.1 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on August 24, 2018 (File No.
333-227010).
|
(5) |
Incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-1/A filed with the Securities and Exchange Commission on September 10, 2018 (File No.
333-227010).
|
(6) |
Incorporated by reference to Exhibit 10.3 to the Registration Statement on Form S-1/A filed with the Securities and Exchange Commission on September 10, 2018 (File No.
333-227010).
|
(7) |
Incorporated by reference to Exhibit 10.4 to the Registration Statement on Form S-1/A filed with the Securities and Exchange Commission on September 10, 2018 (File No.
333-227010).
|
(8) |
Incorporated by reference to Exhibit 10.5 to the Registration Statement on Form S-1/A filed with the Securities and Exchange Commission on September 10, 2018 (File No.
333-227010).
|
(9) |
Incorporated by reference to Exhibit 10.4 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on August 24, 2018 (File No.
333-227010).
|
Bank7 Corp.
|
||
Date: March 29, 2019
|
By:
|
/s/ Thomas L. Travis
|
Thomas L. Travis
|
||
President and Chief Executive Officer
|
||
(Principal Executive Officer)
|
||
By:
|
/s/ Kelly J. Harris
|
|
Kelly J. Harris
|
||
Senior Vice President and Chief Financial Officer
|
||
(Principal Financial and Accounting Officer)
|
Signatures
|
Title
|
Date
|
|
|
Director; Chairman
|
March 29, 2019
|
|
William B. Haines
|
|||
/s/ Thomas L. Travis |
Director; President and Chief Executive Officer (Principal Executive Officer)
|
March 29, 2019
|
|
Thomas L. Travis
|
|||
|
Director
|
March 29, 2019
|
|
Bobby J. Alexander
|
|||
/s/ Charles W. Brown
|
Director
|
March 29, 2019
|
|
Charles W. Brown
|
/s/ William M. Buergler
|
Director
|
March 29, 2019
|
|
William M. Buergler
|
|||
/s/ John T. Phillips
|
Director
|
March 29, 2019 |
|
John T. Phillips
|
|||
/s/ Gary D. Whitcomb
|
Director
|
March 29, 2019
|
|
Gary D. Whitcomb
|
|||
/s/ Lonny D. Wilson
|
Director
|
March 29, 2019
|
|
Lonny D. Wilson
|
|||
/s/ J. Michael Sanner
|
Director
|
March 29, 2019
|
|
J. Michael Sanner
|
Entity Name
|
State of Incorporation
|
|
Bank7
|
Oklahoma
|
Entity Name
|
State of Organization
|
|
1039 NW63RD, LLC
|
Oklahoma
|
Date: March 29, 2019
|
||
By:
|
/s/ Thomas L. Travis
|
|
Thomas L. Travis
|
||
President and Chief Executive Officer
|
Date: March 29, 2019
|
||
By:
|
/s/ Kelly J. Harris
|
|
Kelly J. Harris
|
||
Senior Vice President and Chief Financial Officer
|
Date: March 29, 2019
|
||
By:
|
/s/ Thomas L. Travis
|
|
Thomas L. Travis
|
||
President and Chief Executive Officer
|
||
By:
|
/s/ Kelly J. Harris
|
|
Kelly J. Harris
|
||
Senior Vice President and Chief Financial Officer
|
Document and Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Mar. 28, 2019 |
Jun. 30, 2018 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Bank7 Corp. | ||
Entity Central Index Key | 0001746129 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 10,187,500 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Assets | ||
Allowance for loan losses | $ 7,832 | $ 7,654 |
Shareholders' equity | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 10,187,500 | 7,287,500 |
Common stock, shares outstanding (in shares) | 10,187,500 | 7,287,500 |
Non-voting Common Stock [Member] | ||
Shareholders' equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Consolidated Statements of Shareholders' Equity [Abstract] | |||
Cash distributions declared per share (in dollars per share) | $ 7.71 | $ 1.34 | $ 0.96 |
Nature of Operations and Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||
Nature of Operations and Summary of Significant Accounting Policies [Abstract] | |||||||||||
Nature of Operations and Summary of Significant Accounting Policies |
Nature of Operations Bank7 Corp. (the Company), formerly known as Haines Financial Corp, is a bank holding company whose principal activity is the ownership and management of its wholly owned subsidiary, Bank7 (the Bank). The Bank is primarily engaged in providing a full range of banking and financial services to individual and corporate customers located in Oklahoma, Kansas, and Texas. The Bank is subject to competition from other financial institutions. The Company is subject to the regulation of certain federal agencies and undergoes periodic examinations by those regulatory authorities. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, the Bank and its subsidiary, 1039 NW 63rd, LLC, which holds real estate utilized by the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of other real estate owned, other-than-temporary impairments income taxes, goodwill and intangibles and fair values of financial instruments. Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. Interest-Bearing Time Deposits in Other Banks Interest-bearing time deposits in other banks totaled $31.8 million and $30.2 million at December 31, 2018 and December 31, 2017, respectively, and have original maturities generally ranging from one to five years. Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Securities not classified as held-to-maturity or trading, including equity securities with readily determinable fair values, are classified as “available-for-sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. For debt securities with fair value below amortized cost when the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. The Company had no “available-for-sale” or held to maturity investments as of December 31, 2018 and 2017. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized over the respective term of the loan. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past-due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Mortgage Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon the sale of the loan. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay and estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows or collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers nonimpaired loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral-dependent. Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. Premises and Equipment Depreciable assets are stated at cost, less accumulated depreciation. Depreciation is charged to expense using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are capitalized and depreciated using the straight-line method over the terms of the estimated useful lives of the improvements. The estimated useful lives for each major depreciable classification of premises and equipment are as follows:
Non-Marketable Equity Securities Non-marketable equity securities consist primarily of Federal Home Loan Bank of Topeka (FHLB) stock and Federal Reserve Bank of Kansas City stock and are required investments for financial institutions that are members of the FHLB and Federal Reserve systems. The required investment in common stock is based on a predetermined formula, carried at cost and evaluated for impairment. Long-Lived Asset Impairment The Company evaluates the recoverability of the carrying value of long-lived assets whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows is expected to result from the use and eventual disposition of the asset is less than the carrying amount of the asset, the asset cost is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value. No asset impairment was recognized during the years ended December 31, 2018, 2017, and 2016. Foreclosed Assets Held for Sale Foreclosed assets held for sale consist of assets acquired through, or in lieu of, loan foreclosure and are initially recorded at fair value, less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount of fair value less costs to sell. Revenue and expenses from operations and changes in the valuation allowance are included in current operations. Goodwill and Intangible Assets Goodwill is tested annually for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the accompanying consolidated financial statements. Other intangible assets consist of core deposit intangible assets and are amortized on a straight-line basis based on an estimated useful life of 10 years. Such assets are periodically evaluated as to the recoverability of their carrying values. Segments While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Discrete financial information is not available other than on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. Income Taxes Prior to September 24, 2018, the Company had elected to be taxed as an S Corporation for federal and state income tax purposes. As such, stockholders were taxed on their pro rata share of earnings and deductions of the Company, regardless of the amount of distributions received. Generally, the Company was not subject to federal income tax. Effective September 24, 2018, the Company converted from an S Corporation to a C Corporation and is subject to federal and state taxes at that date. The Company uses a comprehensive model for recognizing, measuring, presenting, and disclosing in the financial statements tax positions taken or expected to be taken on a tax return. A tax position is recognized as a benefit only if it is ‘‘more likely than not’’ that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2018, 2017 and 2016, the Company recognized no interest and penalties. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU supersedes and replaces nearly all existing revenue recognition guidance, including industry-specific guidance, and establishes a new principles-based revenue recognition model for revenue from contracts with customers. The revenue line items in scope of this ASU have been identified and final assessment is pending; however, the majority of the Company’s revenues are not within the scope of Topic 606. Significant revenue streams within the scope of Topic 606 include service charges on deposits. The guidance in the ASU is effective for annual periods beginning after December 15, 2018. It is expected that that the implementation of this ASU will not have a significant impact on the Company’s financial condition and results of operations. The Company will adopt this ASU for the annual reporting period ending December 31, 2019. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU requires certain equity investments to be measured at fair value with changes recognized in net income. It also requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purpose and eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value disclosed for financial instruments measured at amortized cost. The guidance in the ASU is effective for reporting periods beginning after December 15, 2018. It is expected that that the implementation of this ASU will not have a significant impact on the Company’s financial condition and results of operations. The Company will adopt this ASU in the first quarter of 2019. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The ASU requires lessees to recognize a lease liability and a right-of-use asset for all leases, excluding short-term leases, at the commencement date. The guidance in the ASU is effective for reporting periods beginning after December 15, 2019. Additionally, a modified retrospective transition approach is required for leases existing at the earliest comparative period presented. Management is assessing the impact of this ASU; however, it is not expected to have a material impact on the Company’s financial condition, results of operation, or capital position, but will impact the presentation on the balance sheet for the Company’s current operating leases. The Company will adopt this ASU in the first quarter of 2020. In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share- Based Payment Accounting.” Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Previously, such amounts were recorded in the pool of excess tax benefits included in additional paid-in capital, if such pool was available. Because excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method when computing earnings per share should exclude the amount of excess tax benefits that would have previously been recognized in additional paid-in capital. Additionally, excess tax benefits should be classified along with other income tax cash flows as an operating activity rather than a financing activity, as was previously the case. ASU 2016-09 also provides that an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. The Company elected to account for forfeitures as they occur. ASU 2016-09 changes the threshold to qualify for equity classification (rather than as a liability) to permit withholding up to the maximum statutory tax rates (rather than the minimum as was previously the case) in the applicable jurisdictions. ASU 2016-09 was adopted on September 5, 2018, in conjunction with the Board’s approval of the 2018 Equity Incentive Plan, and did not have a significant impact on the Company’s financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). The ASU requires the replacement of the current incurred loss model with an expected loss model, referred to as the current expected credit loss (CECL) model. The guidance in the ASU is effective for fiscal years beginning after December 15, 2021 with a cumulative-effect adjustment to retained earnings required for the first reporting period in which the amendments are effective. Management is still assessing the impact of this ASU; however, it is expected that it will not have a significant impact on the Company’s financial condition and results of operations as this modifies the calculation of the allowance by accelerating the recognition of losses. The Company will adopt this ASU in the first quarter of 2022. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU amends existing guidance to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The guidance in the ASU is effective for reporting periods beginning after December 15, 2021 with prospective application. Management is still assessing the impact of this ASU; however, it is expected that it will not have a significant impact on the Company’s financial condition and results of operations. The Company will adopt this ASU in the first quarter of 2022. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820).” ASU 2018-13 removes, modifies and adds disclosure requirements on fair value measurements. ASU 2018-13 will be effective for the Company on January 1, 2020. Early adoption is permitted. In addition, early adoption of any removed or modified disclosures and delayed adoption of the additional disclosures until the effective date is also permitted. It is expected that adoption will not have a significant impact on the Company’s financial condition and results of operations. The Company will adopt this ASU in the first quarter of 2020. |
Change in Capital Structure |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 | |||
Change in Capital Structure [Abstract] | |||
Change in Capital Structure |
On June 26, 2018, the Company amended and restated its Certificate of Incorporation. The original Certificate of Incorporation was amended to change the name of the Company from Haines Financial Corp to Bank7 Corp. In addition, the amendment changed the capital structure to authorize the issuance of 50,000,000 shares of common stock, par value $0.01 per share (the “Common Stock”), 20,000,000 shares of non-voting common stock, par value $0.01 per share (the “Non-voting Common Stock”), and 1,000,000 shares of preferred stock, par value $0.01 per share (the “Preferred Stock”). The Company completed a 24 to 1 stock split of the Company’s outstanding shares of common stock for shareholders on record as of July 6, 2018. The stock was payable in the form of a dividend on or about July 9, 2018. Shareholders received 24 additional shares for each share held. All share and per share amounts in the consolidated financial statements and related notes have been retroactively adjusted to reflect this stock split for all periods presented. Initial Public Offering On September 20, 2018, the Company completed the initial public offering of its common stock. In connection with the Company’s initial public offering, the Company sold and issued 2,900,000 shares of common stock at $19 per share. After deducting the underwriting discounts and offering expenses, the Company received total net proceeds of $50.1 million from the initial public offering. In connection with the initial public offering, the Company terminated its S Corporation status and became a taxable entity (“C Corporation”) on September 24, 2018. As such, any periods prior to September 24, 2018 will only reflect an effective state income tax rate. As a result of the termination of S Corporation status, we increased our deferred tax asset and recorded an initial tax benefit of $863,000. The deferred tax asset is the result of timing differences in the recognition of income/deductions for generally accepted accounting principles (“GAAP”) and tax purposes. Net deferred tax assets are included in other assets and no valuation allowance is considered necessary. We or one of our subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. We are no longer subject to U.S. federal or state tax examinations for years before 2015. |
Restriction on Cash and Due from Banks |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 | |||
Restriction on Cash and Due from Banks [Abstract] | |||
Restriction on Cash and Due from Banks |
The Company is required to maintain reserve funds in cash and/or on deposit with the Federal Reserve Bank. The reserve required at December 31, 2018, was $16.1 million. |
Earnings Per Share |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share |
Basic earnings per common share represents the amount of earnings for the period available to each share of common stock outstanding during the reporting period. Basic EPS is computed based upon net income divided by the weighted average number of common shares outstanding during the year. Diluted EPS represents the amount of earnings for the period available to each share of common stock outstanding including common stock that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during each reporting period. Diluted EPS is computed based upon net income dividend by the weighted average number of commons shares outstanding during each period, adjusted for the effect of dilutive potential common shares, such as restricted stock awards and nonqualified stock options, calculated using the treasury stock method. The following table shows the computation of basic and diluted earnings per share:
|
Loans and Allowance for Loan Losses |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses |
A summary of loans at December 31, 2018 and 2017 are as follows (dollars in thousands):
The following table presents, by portfolio segment, the activity in the allowance for loan losses for the years ended December 31, 2018, 2017, and 2016 (dollars in thousands):
The following table presents, by portfolio segment, the balance in allowance for loan losses and the gross loans based upon portfolio segment and impairment method as of December 31, 2018 and December 31, 2017 (dollars in thousands).
Internal Risk Categories Certain loan segments were reclassified during the year. Each loan segment is made up of loan categories possessing similar risk characteristics. The Company’s re-alignment of the segments primarily consisted of reclassifying consumer-related and agricultural-related real estate loans from the real estate category to the consumer and agricultural categories, respectively. Management believes this accurately represents the risk profile of each loan segment. In addition, the real estate segment was renamed to commercial real estate, and the commercial segment was renamed to commercial & industrial. The prior period amounts have been revised to conform to the current period presentation. These reclassifications did not have a significant impact on the allowance for loan losses. Risk characteristics applicable to each segment of the loan portfolio are described as follows: Real Estate – The real estate portfolio consists of residential and commercial properties. Residential loans are generally secured by owner occupied 1–4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans can be impacted by economic conditions within the Company’s market areas that might impact either property values or a borrower’s personal income. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Commercial real estate loans in this category typically involve larger principal amounts and are repaid primarily from the cash flow of a borrower’s principal business operation, the sale of the real estate or income independent of the loan purpose. Credit risk in these loans is driven by the creditworthiness of a borrower, property values, the local economy and other economic conditions impacting a borrower’s business or personal income. Commercial & Industrial – The commercial portfolio includes loans to commercial customers for use in financing working capital needs, equipment purchases and expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations. Agricultural – Loans secured by agricultural assets are generally made for the purpose of acquiring land devoted to crop production, cattle or poultry or the operation of a similar type of business on the secured property. Sources of repayment for these loans generally include income generated from operations of a business on the property, rental income or sales of the property. Credit risk in these loans may be impacted by crop and commodity prices, the creditworthiness of a borrower, and changes in economic conditions which might affect underlying property values and the local economies in the Company’s market areas. Consumer – The consumer loan portfolio consists of various term and line of credit loans such as automobile loans and loans for other personal purposes. Repayment for these types of loans will come from a borrower’s income sources that are typically independent of the loan purpose. Credit risk is driven by consumer economic factors, such as unemployment and general economic conditions in the Company’s market area and the creditworthiness of a borrower. Loan grades are numbered 1 through 4. Grade 1 is considered satisfactory. The grades of 2 and 3, or Watch and Special Mention, respectively, represent loans of lower quality and are considered criticized. Grade of 4, or Substandard, refers to loans that are classified.
The Company evaluates the definitions of loan grades and the allowance for loan losses methodology on an ongoing basis. No changes were made to either during the year ended December 31, 2018. The following table presents the credit risk profile of the Company’s loan portfolio based on internal rating category as of December 31, 2018 and 2017 (dollars in thousands):
The following table presents the Company’s loan portfolio aging analysis of the recorded investment in loans as of December 31, 2018 and 2017 (dollars in thousands):
The following table presents impaired loans as of December 31, 2018 and 2017 (dollars in thousands):
Impaired loans include nonperforming loans and also include loans modified in troubled-debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Included in certain loan categories in the impaired loans are troubled debt restructurings that were classified as impaired. At December 31, 2018, the Company had $501,000 of commercial & industrial loans that were modified in troubled-debt restructurings and impaired. At December 31, 2017, the Company had $675,000 of commercial real estate loans and $861,000 of commercial & industrial loans that were modified in troubled-debt restructurings and impaired . There were no newly modified troubled-debt restructurings during the years ended December 31, 2018 and 2017. There were no troubled-debt restructurings modified in the past twelve months that subsequently defaulted for the year ended December 31, 2018. The following table represents information regarding nonperforming assets as of the year ended December 31, 2018 and 2017 (dollars in thousands):
|
Premises and Equipment |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment |
Major classifications of premises and equipment, stated at cost and net of accumulated depreciation are as follows (dollars in thousands):
|
Intangible Assets |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets |
The gross carrying amount and accumulated amortization of recognized intangible assets at December 31, 2018 and 2017, were (dollars in thousands):
Amortization expense for intangible assets totaled $206,000 for the years ended December 31, 2018, 2017, and 2016. Estimated amortization expense for each of the following five years is as follows (dollars in thousands):
|
Interest-Bearing Deposits |
12 Months Ended | ||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||
Interest-Bearing Deposits [Abstract] | |||||||||||||||||||||||||||||||||
Interest-Bearing Deposits |
Interest-bearing time deposits in denominations of $250,000 or more were $58.2 million and $58.7 million at December 31, 2018 and 2017, respectively. At December 31, 2018, the scheduled maturities of interest-bearing time deposits were as follows (dollars in thousands):
Some interest-bearing deposits are obtained through brokered transactions and the Company participates in the Certificate of Deposit Account Registry Service (“CDARS”). CDARS deposits totaled $32.5 and $86.5 million at December 31, 2018 and 2017, respectively. |
Income Taxes |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes |
In connection with the initial public offering, as discussed in Note 1, the Company terminated its S Corporation status and became a taxable entity (“C Corporation”) effective September 24, 2018. As such, any periods prior to September 24, 2018 will only reflect an effective state income tax rate. As a result of the termination of S Corporation status, we increased our deferred tax asset and recorded an initial tax benefit of $863,000. The deferred tax asset is the result of timing differences in the recognition of income/deductions for generally accepted accounting principles (“GAAP”) and tax purposes. The (benefit)/provision for income taxes for the year ended December 31, 2018 consists of the following (dollars in thousands):
The provision for income taxes for the year ended December 31, 2018 differs from the statutory federal rate of 21% due to the following:
The Company’s effective tax rate for 2018 differs from the statutory rate primarily as a result of tax benefits from the effect of the change in the Company’s tax status from S Corporation to C Corporation. Deferred tax assets (liabilities) included in other assets in the accompanying consolidated balance sheet consist of the following (dollars in thousands):
In assessing the Company’s ability to realize deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize all benefits related to these deductible differences as of December 31, 2018. The Company does not have any net operating loss or tax credit carryforwards as of December 31, 2018. The Company is not presently under examination by the Internal Revenue Service or any state tax authority. The Company establishes reserves for uncertain tax positions that reflect management’s best estimate of deductions and credits that may not be sustained on a more-likely-than-not basis. Recognized income tax positions are measured at the largest amount that is considered greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. A reconciliation of the beginning and ending amount of uncertain tax positions is as follows (in thousands):
There were no interest or penalties related to uncertain tax positions reflected in the consolidated statements of income for the years ended December 31, 2018, 2017, and 2016. |
Letters of Credit |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 | |||
Letters of Credit [Abstract] | |||
Letters of Credit |
The Bank has entered into an arrangement with the FHLB resulting in the FHLB issuing letters of credit on behalf of the Bank with the resulting beneficiary being certain public funds in connection with these deposits. Outstanding letters of credit to secure these public funds at December 31, 2018 and 2017 were $1.5 million and $25.3 million, respectively. Loans with a collateral value of approximately $67.8 million were used to secure the letters of credit. |
Advances and Borrowings |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 | |||
Advances and Borrowings [Abstract] | |||
Advances and Borrowings |
The Bank has a blanket floating lien security agreement with a maximum borrowing capacity of $66.3 million at December 31, 2018, with the FHLB, under which the Bank is required to maintain collateral for any advances, including its stock in the FHLB, as well as qualifying first mortgage and other loans. The Bank had no advances from the FHLB at December 31, 2018 or 2017. The Company had debt outstanding with The Bankers Bank of $5.6 million at December 31, 2017, secured by certain shares of common stock of the Bank held by the Company. The purpose of this transaction was to facilitate the purchase of The Montezuma State Bank in 2014 and to inject capital into the Bank. The remaining principal balance of the note, as well as the accrued interest payable, was paid in full in September 2018. |
Regulatory Matters |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters |
The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under GAAP, regulatory reporting requirements and regulatory capital standards. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Company’s and the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of total, Tier I , and Common Equity capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined). Management believes, as of December 31, 2018, that the Bank meets all capital adequacy requirements to which it is subject and maintains capital conservation buffers that allow the Company and Bank to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to certain executive officers. As of December 31, 2018, the most recent notification from the Federal Deposit Insurance Corporation (FDIC) categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain capital ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Bank’s actual capital amounts and ratios are presented in the following table (dollars in thousands):
In July 2013, the federal regulatory authorities issued a new capital rule based, in part, on revisions developed by the Basel Committee on Banking Supervision to the Basel capital framework (Basel III). The Bank became subject to the new rule effective January 1, 2015. Generally, the new rule implements higher minimum capital requirements, revises the definition of regulatory capital components and related calculations, adds a new common equity tier 1 capital ratio, implements a new capital conservation buffer, increases the risk weighting for past due loans and provides a transition period for several aspects of the new rule. In addition, banks with less than $250 billion in assets were given a one-time, opt-out election under Basel III Capital Rules to filter from regulatory capital certain accumulated other comprehensive income (AOCI) components. The Bank made the-opt out election and excludes the AOCI components from the capital ratio computations. The current (new) capital rule provides that, in order to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers, a banking organization must hold a capital conservation buffer composed of common equity tier 1 capital above its minimum risk-based capital requirements. The buffer is measured relative to risk-weighted assets. Phase-in of the capital conservation buffer requirements became effective January 1, 2016. The transition schedule for new ratios, including the capital conservation buffer, is as follows:
As fully phased in, a banking organization with a buffer greater than 2.5% would not be subject to additional limits on dividend payments or discretionary bonus payments; however, a banking organization with a buffer less than 2.5% would be subject to increasingly stringent limitations as the buffer approaches zero. The new rule also prohibits a banking organization from making dividend payments or discretionary bonus payments if its eligible retained income is negative in that quarter and its capital conservation buffer ratio was less than 2.5% as the beginning of that quarter. Eligible net income is defined as net income for the four calendar quarters preceding the current calendar quarter, net of any distributions and associated tax effects not already reflected in net income. A summary of payout restrictions based on the capital conservation buffer is as follows:
The Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. At December 31, 2018, approximately $41.2 million of retained earnings was available for dividend declaration from the Bank without prior regulatory approval. |
Related-Party Transactions |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related-Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related-Party Transactions |
At December 31, 2018 and 2017, the Company had loans outstanding to executive officers, directors, significant shareholders and their affiliates (related parties) approximating $6.9 million and $6.7 million, respectively. A summary of these loans is as follows (dollars in thousands):
In management’s opinion, such loans and other extensions of credit and deposits were made in the ordinary course of business and were made on substantially the same terms (including interest rates and collateral) as those prevailing at the time for comparable transactions with other persons. Further, in management’s opinion, these loans did not involve more than normal risk of collectability or present other unfavorable features. On September 28, 2018, the Bank sold its aircraft subsidiary, 711 Holdings, LLC to a related party of the Company for $1.5 million, resulting in a net gain of $137,000. As this was a common control transaction, the gain is considered a capital injection, and is recognized as such in the consolidated statement of shareholders’ equity. The Bank leases office and retail banking space in Woodward, Oklahoma from Haines Realty Investments Company, LLC, a related party of the Company. Lease expense totaled $184,000, $184,000, and $180,000 for the years ended December 31, 2018, 2017, and 2016, respectively. In addition, payroll and office sharing arrangements were in place between the Company and certain of its affiliates. |
Employee Benefits |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits |
401(k) Savings Plan The Company has a retirement savings 401(k) plan covering substantially all employees. Employees may contribute up to the maximum legal limit with the Bank matching up to 5% of the employee’s salary. Employer contributions charged to expense for the years ended December 31, 2018, 2017, and 2016 totaled $198,000, $178,000, and $138,000 respectively. Stock-Based Compensation The Company adopted a nonqualified incentive stock option plan (the “Bank7 Corp. 2018 Equity Incentive Plan”) in September 2018. The Bank7 Corp. 2018 Equity Incentive Plan will terminate in September 2028, if not extended. Compensation expense related to the Plan for the year ended December 31, 2018 was $154,000. In connection with its IPO in September 2018, the Company granted to employees restricted stock units (RSUs) which vest ratably over five years and stock options which vest ratably over four years. All RSUs and stock options were granted at the fair value of the common stock at the time of the award. The RSUs are considered fixed awards as the number of shares and fair value are known at the date of grant and the fair value at the grant date is amortized over the vesting and/or service period. The Company uses newly issued shares for granting RSUs and stock options. The following table is a summary of the stock option activity under the Bank7 Corp. 2018 Equity Incentive Plan:
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model and is based on certain assumptions including risk-free rate of return, dividend yield, stock price volatility and the expected term. The fair value of each option is expensed over its vesting period. The following table shows the assumptions used for computing stock-based compensation expense under the fair value method on options granted during 2018:
The following table summarizes share information about RSUs for the year ended December 31, 2018:
As of December 31, 2018, there was approximately $2.34 million of unrecognized compensation expense related to 130,000 unvested RSUs and $287,000 of unrecognized compensation expense related to 150,000 unvested stock options. The stock option expense is expected to be recognized over a weighted average period of four years, and the RSU expense is expected to be recognized over a weighted average period of five years. As of December 31, 2018, no RSUs or stock options were vested. |
Disclosures About Fair Value of Assets and Liabilities |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosures About Fair Value of Assets and Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosures About Fair Value of Assets and Liabilities |
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:
Recurring Measurements There were no assets measured at fair value on a recurring basis as of December 31, 2018 and 2017. Nonrecurring Measurements The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2018 and 2017 (dollars in thousands):
Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Collateral-Dependent Impaired Loans, Net of Allowance for Loan Losses The estimated fair value of collateral-dependent impaired loans is based on fair value, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. The Company considers evaluation analysis as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Values of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by executive management and loan administration. Values are reviewed for accuracy and consistency by executive management and loan administration. The ultimate collateral values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. Foreclosed Assets Held for Sale Foreclosed assets held for sale are carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell when the asset is acquired. Estimated fair value of foreclosed assets is based on appraisals or evaluations. Foreclosed assets held for sale are classified within Level 3 of the fair value hierarchy. Appraisals of foreclosed assets held for sale are obtained when the asset is acquired and subsequently as deemed necessary by the Company. Appraisals are reviewed for accuracy and consistency by executive management and loan administration. Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.
The following tables presents estimated fair values of the Company’s financial instruments not recorded at fair value at December 31, 2018 and December 31, 2017 (dollars in thousands):
The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying consolidated balance sheets at amounts other than fair value: Cash and Due from Banks, Interest-Bearing Time Deposits in Other Banks, Nonmarketable Equity Securities, Interest Receivable and Interest Payable and Borrowings The carrying amount approximates fair value. Loans and Mortgage Loans Held for Sale The fair value of loans is estimated by discounting the future cash flows using the market rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics were aggregated for purposes of the calculations. Deposits Deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits. The carrying amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. Commitments to Extend Credit, Lines of Credit and Standby Letters of Credit The fair values of unfunded commitments are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. The fair values of standby letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. The estimated fair values of the Company’s commitments to extend credit, lines of credit and standby letters of credit were not material at December 31, 2018 or December 31, 2017. |
Financial Instruments with Off-Balance Sheet Risk |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments with Off-Balance Sheet Risk [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments with Off-Balance Sheet Risk |
The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the accompanying consolidated balance sheets. The following summarizes those financial instruments with contract amounts representing credit risk as of December 31, 2018 and December 31, 2017 (dollars in thousands):
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Each instrument generally has fixed expiration dates or other termination clauses. Since many of the instruments are expected to expire without being drawn upon, total commitments to extend credit 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 customer. Standby letters of credit are irrevocable conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. |
Significant Estimates and Concentrations |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 | |||
Significant Estimates and Concentrations [Abstract] | |||
Significant Estimates and Concentrations |
GAAP requires disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for loan losses are reflected in Note 5 regarding loans. Current vulnerabilities due to off-balance sheet credit risk are discussed in Note 16. As of December 31, 2018, hospitality loans were 20.4% of gross total loans with outstanding balances of $123.0 million and unfunded commitments of $28.3 million; energy loans were 18.3% of gross total loans with outstanding balances of $110.0 million and unfunded commitments of $23.4 million. |
Operating Leases |
12 Months Ended | |||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||
Operating Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||
Operating Leases |
The Company leases certain of its branch facilities and office equipment under operating leases. Rental expense for these leases was $596,000 and $421,000, and $418,000 for the years ended December 31, 2018, 2017, and 2016 respectively. Future minimum rental commitments of branch facilities and office equipment due under non-cancelable operating leases at December 31, 2018, were as follows (dollars in thousands):
|
Parent-only Financial Statements |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent-only Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent-only Financial Statements |
|
Selected Quarterly Financial Data (Unaudited) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data (Unaudited) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data (Unaudited) |
The following tables summarize the unaudited condensed consolidated results of operations for each of the quarters during the fiscal years ended December 31, 2018 and 2017:
(1) The quarterly EPS amounts, when added, may not coincide with the full fiscal year EPS reported on the Consolidated Statements of Income due to differences in the computed weighted average shares outstanding as well as rounding differences. |
Nature of Operations and Summary of Significant Accounting Policies (Policies) |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||
Nature of Operations and Summary of Significant Accounting Policies [Abstract] | |||||||||
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, the Bank and its subsidiary, 1039 NW 63rd, LLC, which holds real estate utilized by the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. |
||||||||
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of other real estate owned, other-than-temporary impairments income taxes, goodwill and intangibles and fair values of financial instruments. |
||||||||
Cash Equivalents | Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. |
||||||||
Interest-Bearing Time Deposits in Other Banks | Interest-Bearing Time Deposits in Other Banks Interest-bearing time deposits in other banks totaled $31.8 million and $30.2 million at December 31, 2018 and December 31, 2017, respectively, and have original maturities generally ranging from one to five years. |
||||||||
Securities | Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Securities not classified as held-to-maturity or trading, including equity securities with readily determinable fair values, are classified as “available-for-sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. For debt securities with fair value below amortized cost when the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. The Company had no “available-for-sale” or held to maturity investments as of December 31, 2018 and 2017. |
||||||||
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized over the respective term of the loan. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past-due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
||||||||
Mortgage Loans Held for Sale | Mortgage Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon the sale of the loan. |
||||||||
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay and estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows or collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers nonimpaired loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral-dependent. Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. |
||||||||
Premises and Equipment | Premises and Equipment Depreciable assets are stated at cost, less accumulated depreciation. Depreciation is charged to expense using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are capitalized and depreciated using the straight-line method over the terms of the estimated useful lives of the improvements. The estimated useful lives for each major depreciable classification of premises and equipment are as follows:
|
||||||||
Non-Marketable Equity Securities | Non-Marketable Equity Securities Non-marketable equity securities consist primarily of Federal Home Loan Bank of Topeka (FHLB) stock and Federal Reserve Bank of Kansas City stock and are required investments for financial institutions that are members of the FHLB and Federal Reserve systems. The required investment in common stock is based on a predetermined formula, carried at cost and evaluated for impairment. |
||||||||
Long-Lived Asset Impairment | Long-Lived Asset Impairment The Company evaluates the recoverability of the carrying value of long-lived assets whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows is expected to result from the use and eventual disposition of the asset is less than the carrying amount of the asset, the asset cost is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value. No asset impairment was recognized during the years ended December 31, 2018, 2017, and 2016. |
||||||||
Foreclosed Assets Held for Sale | Foreclosed Assets Held for Sale Foreclosed assets held for sale consist of assets acquired through, or in lieu of, loan foreclosure and are initially recorded at fair value, less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount of fair value less costs to sell. Revenue and expenses from operations and changes in the valuation allowance are included in current operations. |
||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is tested annually for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the accompanying consolidated financial statements. Other intangible assets consist of core deposit intangible assets and are amortized on a straight-line basis based on an estimated useful life of 10 years. Such assets are periodically evaluated as to the recoverability of their carrying values. |
||||||||
Segments | Segments While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Discrete financial information is not available other than on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. |
||||||||
Income Taxes | Income Taxes Prior to September 24, 2018, the Company had elected to be taxed as an S Corporation for federal and state income tax purposes. As such, stockholders were taxed on their pro rata share of earnings and deductions of the Company, regardless of the amount of distributions received. Generally, the Company was not subject to federal income tax. Effective September 24, 2018, the Company converted from an S Corporation to a C Corporation and is subject to federal and state taxes at that date. The Company uses a comprehensive model for recognizing, measuring, presenting, and disclosing in the financial statements tax positions taken or expected to be taken on a tax return. A tax position is recognized as a benefit only if it is ‘‘more likely than not’’ that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2018, 2017 and 2016, the Company recognized no interest and penalties. |
||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU supersedes and replaces nearly all existing revenue recognition guidance, including industry-specific guidance, and establishes a new principles-based revenue recognition model for revenue from contracts with customers. The revenue line items in scope of this ASU have been identified and final assessment is pending; however, the majority of the Company’s revenues are not within the scope of Topic 606. Significant revenue streams within the scope of Topic 606 include service charges on deposits. The guidance in the ASU is effective for annual periods beginning after December 15, 2018. It is expected that that the implementation of this ASU will not have a significant impact on the Company’s financial condition and results of operations. The Company will adopt this ASU for the annual reporting period ending December 31, 2019. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU requires certain equity investments to be measured at fair value with changes recognized in net income. It also requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purpose and eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value disclosed for financial instruments measured at amortized cost. The guidance in the ASU is effective for reporting periods beginning after December 15, 2018. It is expected that that the implementation of this ASU will not have a significant impact on the Company’s financial condition and results of operations. The Company will adopt this ASU in the first quarter of 2019. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The ASU requires lessees to recognize a lease liability and a right-of-use asset for all leases, excluding short-term leases, at the commencement date. The guidance in the ASU is effective for reporting periods beginning after December 15, 2019. Additionally, a modified retrospective transition approach is required for leases existing at the earliest comparative period presented. Management is assessing the impact of this ASU; however, it is not expected to have a material impact on the Company’s financial condition, results of operation, or capital position, but will impact the presentation on the balance sheet for the Company’s current operating leases. The Company will adopt this ASU in the first quarter of 2020. In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share- Based Payment Accounting.” Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Previously, such amounts were recorded in the pool of excess tax benefits included in additional paid-in capital, if such pool was available. Because excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method when computing earnings per share should exclude the amount of excess tax benefits that would have previously been recognized in additional paid-in capital. Additionally, excess tax benefits should be classified along with other income tax cash flows as an operating activity rather than a financing activity, as was previously the case. ASU 2016-09 also provides that an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. The Company elected to account for forfeitures as they occur. ASU 2016-09 changes the threshold to qualify for equity classification (rather than as a liability) to permit withholding up to the maximum statutory tax rates (rather than the minimum as was previously the case) in the applicable jurisdictions. ASU 2016-09 was adopted on September 5, 2018, in conjunction with the Board’s approval of the 2018 Equity Incentive Plan, and did not have a significant impact on the Company’s financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). The ASU requires the replacement of the current incurred loss model with an expected loss model, referred to as the current expected credit loss (CECL) model. The guidance in the ASU is effective for fiscal years beginning after December 15, 2021 with a cumulative-effect adjustment to retained earnings required for the first reporting period in which the amendments are effective. Management is still assessing the impact of this ASU; however, it is expected that it will not have a significant impact on the Company’s financial condition and results of operations as this modifies the calculation of the allowance by accelerating the recognition of losses. The Company will adopt this ASU in the first quarter of 2022. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU amends existing guidance to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The guidance in the ASU is effective for reporting periods beginning after December 15, 2021 with prospective application. Management is still assessing the impact of this ASU; however, it is expected that it will not have a significant impact on the Company’s financial condition and results of operations. The Company will adopt this ASU in the first quarter of 2022. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820).” ASU 2018-13 removes, modifies and adds disclosure requirements on fair value measurements. ASU 2018-13 will be effective for the Company on January 1, 2020. Early adoption is permitted. In addition, early adoption of any removed or modified disclosures and delayed adoption of the additional disclosures until the effective date is also permitted. It is expected that adoption will not have a significant impact on the Company’s financial condition and results of operations. The Company will adopt this ASU in the first quarter of 2020. |
Nature of Operations and Summary of Significant Accounting Policies (Tables) |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||
Nature of Operations and Summary of Significant Accounting Policies [Abstract] | |||||||||
Estimated Useful Lives of Premises and Equipment | The estimated useful lives for each major depreciable classification of premises and equipment are as follows:
|
Earnings Per Share (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings Per Share | The following table shows the computation of basic and diluted earnings per share:
|
Loans and Allowance for Loan Losses (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Loans | A summary of loans at December 31, 2018 and 2017 are as follows (dollars in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in Allowance for Loan Losses by Portfolio Segment | The following table presents, by portfolio segment, the activity in the allowance for loan losses for the years ended December 31, 2018, 2017, and 2016 (dollars in thousands):
The following table presents, by portfolio segment, the balance in allowance for loan losses and the gross loans based upon portfolio segment and impairment method as of December 31, 2018 and December 31, 2017 (dollars in thousands).
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Portfolio Based on Internal Rating Category | The following table presents the credit risk profile of the Company’s loan portfolio based on internal rating category as of December 31, 2018 and 2017 (dollars in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Portfolio Aging Analysis of Recorded Investment in Loans | The following table presents the Company’s loan portfolio aging analysis of the recorded investment in loans as of December 31, 2018 and 2017 (dollars in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impaired Loans | The following table presents impaired loans as of December 31, 2018 and 2017 (dollars in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information Regarding Nonperforming Assets | The following table represents information regarding nonperforming assets as of the year ended December 31, 2018 and 2017 (dollars in thousands):
|
Premises and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment | Major classifications of premises and equipment, stated at cost and net of accumulated depreciation are as follows (dollars in thousands):
|
Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount and Accumulated Amortization of Recognized Intangible Assets | The gross carrying amount and accumulated amortization of recognized intangible assets at December 31, 2018 and 2017, were (dollars in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization Expense for Intangible Assets | Estimated amortization expense for each of the following five years is as follows (dollars in thousands):
|
Interest-Bearing Deposits (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||
Interest-Bearing Deposits [Abstract] | |||||||||||||||||||||||||||||||
Scheduled Maturities of Interest-Bearing Time Deposits | At December 31, 2018, the scheduled maturities of interest-bearing time deposits were as follows (dollars in thousands):
|
Income Taxes (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Benefit)/ Provision for Income Taxes | The (benefit)/provision for income taxes for the year ended December 31, 2018 consists of the following (dollars in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for Income Taxes | The provision for income taxes for the year ended December 31, 2018 differs from the statutory federal rate of 21% due to the following:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Tax Assets (Liabilities) | Deferred tax assets (liabilities) included in other assets in the accompanying consolidated balance sheet consist of the following (dollars in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Uncertain Tax Positions | A reconciliation of the beginning and ending amount of uncertain tax positions is as follows (in thousands):
|
Regulatory Matters (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual Capital Amounts and Ratios | The Bank’s actual capital amounts and ratios are presented in the following table (dollars in thousands):
The transition schedule for new ratios, including the capital conservation buffer, is as follows:
A summary of payout restrictions based on the capital conservation buffer is as follows:
|
Related-Party Transactions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related-Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Loans | A summary of these loans is as follows (dollars in thousands):
|
Employee Benefits (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Options Activity | The following table is a summary of the stock option activity under the Bank7 Corp. 2018 Equity Incentive Plan:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-Average Inputs and Risk-Free Rate of Return Ranges used to Calculate Grant Date Fair Value of Options | The following table shows the assumptions used for computing stock-based compensation expense under the fair value method on options granted during 2018:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Units | The following table summarizes share information about RSUs for the year ended December 31, 2018:
|
Disclosures About Fair Value of Assets and Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosures About Fair Value of Assets and Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Measured at Fair Value on Nonrecurring Basis | The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2018 and 2017 (dollars in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quantitative Information About Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements | The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Value of Financial Instruments not Recorded at Fair Value | The following tables presents estimated fair values of the Company’s financial instruments not recorded at fair value at December 31, 2018 and December 31, 2017 (dollars in thousands):
|
Financial Instruments with Off-Balance Sheet Risk (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments with Off-Balance Sheet Risk [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments with Contract Amounts Representing Credit Risk | The following summarizes those financial instruments with contract amounts representing credit risk as of December 31, 2018 and December 31, 2017 (dollars in thousands):
|
Operating Leases (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||
Operating Leases [Abstract] | ||||||||||||||||||||||||||||||||||||
Future Minimum Rental Commitments Non-Cancelable Operating Leases | Future minimum rental commitments of branch facilities and office equipment due under non-cancelable operating leases at December 31, 2018, were as follows (dollars in thousands):
|
Parent-only Financial Statements (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent-only Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Balance Sheets |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Statements of Income |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Statements of Cash Flows |
|
Selected Quarterly Financial Data (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data (Unaudited) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information | The following tables summarize the unaudited condensed consolidated results of operations for each of the quarters during the fiscal years ended December 31, 2018 and 2017:
(1) The quarterly EPS amounts, when added, may not coincide with the full fiscal year EPS reported on the Consolidated Statements of Income due to differences in the computed weighted average shares outstanding as well as rounding differences. |
Restriction on Cash and Due from Banks (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Restriction on Cash and Due from Banks [Abstract] | |
Reserve funds to be maintained with Federal Reserve Bank | $ 16,100 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
||||||||||||||
Numerator [Abstract] | ||||||||||||||||||||||||
Net income | $ 5,561 | $ 6,710 | $ 6,379 | $ 6,350 | $ 4,567 | $ 5,950 | $ 6,689 | $ 6,583 | $ 25,000 | $ 23,789 | $ 16,817 | |||||||||||||
Denominator [Abstract] | ||||||||||||||||||||||||
Denominator for basic earnings per common share (in shares) | 8,105,856 | 7,287,500 | 7,287,500 | |||||||||||||||||||||
Dilutive effect of stock compensation (in shares) | 131,782 | [1] | 0 | 0 | ||||||||||||||||||||
Denominator for diluted earnings per share (in shares) | 8,237,638 | 7,287,500 | 7,287,500 | |||||||||||||||||||||
Earnings per common share [Abstract] | ||||||||||||||||||||||||
Basic (in dollars per share) | $ 0.55 | [2] | $ 0.88 | [2] | $ 0.88 | [2] | $ 0.87 | [2] | $ 0.62 | [2] | $ 0.82 | [2] | $ 0.92 | [2] | $ 0.90 | [2] | $ 3.08 | $ 3.26 | $ 2.31 | |||||
Diluted (in dollars per share) | $ 0.54 | [2] | $ 0.87 | [2] | $ 0.88 | [2] | $ 0.87 | [2] | $ 0.62 | [2] | $ 0.82 | [2] | $ 0.92 | [2] | $ 0.90 | [2] | $ 3.03 | $ 3.26 | $ 2.31 | |||||
Stock Option [Member] | ||||||||||||||||||||||||
Antidilutive securities [Abstract] | ||||||||||||||||||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 150,000 | |||||||||||||||||||||||
|
Loans and Allowance for Loan Losses, Information Regarding Nonperforming Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
||
---|---|---|---|---|
Loans and Allowance for Loan Losses [Abstract] | ||||
Nonaccrual loans | $ 2,615 | $ 1,217 | ||
Troubled-debt restructurings | [1] | 0 | 675 | |
Accruing loans 90 or more days past due | 0 | 0 | ||
Total nonperforming loans | 2,615 | 1,892 | ||
Commercial & Industrial [Member] | ||||
Loans and Allowance for Loan Losses [Abstract] | ||||
Accruing loans 90 or more days past due | 0 | 0 | ||
Troubled Debt Restructurings [Abstract] | ||||
TDR's loans impaired | $ 501 | $ 861 | ||
|
Premises and Equipment (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Premises and equipment [Abstract] | ||
Gross premises and equipment | $ 10,790 | $ 12,561 |
Less accumulated depreciation | (3,037) | (2,959) |
Net premises and equipment | 7,753 | 9,602 |
Land, Buildings and Improvements [Member] | ||
Premises and equipment [Abstract] | ||
Gross premises and equipment | 8,414 | 8,225 |
Furniture and Equipment [Member] | ||
Premises and equipment [Abstract] | ||
Gross premises and equipment | 1,654 | 1,554 |
Aircraft [Member] | ||
Premises and equipment [Abstract] | ||
Gross premises and equipment | 0 | 2,083 |
Automobiles [Member] | ||
Premises and equipment [Abstract] | ||
Gross premises and equipment | $ 722 | $ 699 |
Intangible Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Intangible Assets, Gross [Abstract] | |||
Amortization expense | $ 206 | $ 206 | $ 206 |
Estimated Amortization Expenses [Abstract] | |||
2019 | 206 | ||
2020 | 206 | ||
2021 | 206 | ||
2022 | 206 | ||
2023 | 160 | ||
Total | 984 | ||
Core Deposit Intangible [Member] | |||
Intangible Assets, Gross [Abstract] | |||
Gross Carrying Amount | 2,061 | 2,061 | |
Accumulated Amortization | $ (1,077) | $ (871) |
Interest-Bearing Deposits (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Interest-Bearing Deposits [Abstract] | ||
Interest bearing time deposits in denominations of $250,000 or more | $ 58,200 | $ 58,700 |
Scheduled maturities of interest-bearing time deposits [Abstract] | ||
2019 | 167,681 | |
2020 | 23,406 | |
2021 | 2,487 | |
Thereafter | 1,567 | |
Time Deposits | 195,141 | |
CDARS deposits | $ 32,500 | $ 86,500 |
Income Taxes, (Benefit)/Provision for Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Taxes [Abstract] | |||||||||||
Benefit from deferred income tax | $ (863) | ||||||||||
Federal [Abstract] | |||||||||||
Current | 1,563 | ||||||||||
Deferred | (1,036) | ||||||||||
Total federal tax provision | 527 | ||||||||||
State [Abstract] | |||||||||||
Current | 303 | ||||||||||
Deferred | (33) | ||||||||||
Total state tax provision | 270 | ||||||||||
Total income tax provision | $ 1,192 | $ (395) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 797 | $ 0 | $ 0 |
Income Taxes, Provision for Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Taxes [Abstract] | |||||||||||
Statutory federal rate | 21.00% | ||||||||||
Provision for Income Taxes [Abstract] | |||||||||||
Statutory U.S. Federal Income Tax | $ 5,417 | ||||||||||
Increase (decrease) resulting from [Abstract] | |||||||||||
State Taxes | 213 | ||||||||||
Benefit of S corporation status | (3,933) | ||||||||||
Conversion as of September 24, 2018 to C corporation | (863) | ||||||||||
Other | (37) | ||||||||||
Total income tax provision | $ 1,192 | $ (395) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 797 | $ 0 | $ 0 |
Income Taxes, Deferred Tax Assets (Liabilities) (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Deferred tax assets [Abstract] | |
Allowance for loan losses | $ 1,942 |
Deferred compensation | 38 |
Other | 80 |
Total deferred tax assets | 2,060 |
Deferred tax liabilities [Abstract] | |
Property and equipment | (268) |
Intangible assets | (220) |
Prepaid expenses | (177) |
Method change IRC 481(a) | (254) |
Other | (72) |
Total deferred tax liabilities | (991) |
Net deferred tax assets | $ 1,069 |
Income Taxes, Uncertain Tax Positions (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Taxes [Abstract] | |||
Interest or penalties related to uncertain tax positions | $ 0 | $ 0 | $ 0 |
Uncertain Tax Positions [Roll Forward] | |||
Balance at beginning of period | 0 | ||
Additions for positions taken in prior years | 15 | ||
Reductions for positions taken in prior years | (2) | ||
Balance at end of period | $ 13 |
Letters of Credit (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Letters of Credit [Abstract] | ||
Outstanding letters of credit | $ 1,500 | $ 25,300 |
Loans pledged as collateral | $ 67,800 |
Advances and Borrowings (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Advances and Borrowings [Abstract] | ||
Maximum borrowing capacity | $ 66,300 | |
Advances from FHLB | 0 | $ 0 |
Debt Instrument [Line Items] | ||
Debt outstanding | $ 0 | 5,600 |
Debt Note [Member] | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 5,600 |
Regulatory Matters, Capital Conservation Buffer (Details) |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|---|
Capital Conservation Buffer [Abstract] | |||||
Capital Conservation Buffer | 1.875% | 1.25% | 0.625% | 0.00% | |
Minimum total capital plus capital conservation buffer | 9.875% | 9.25% | 8.625% | 8.00% | |
Minimum Tier 1 capital plus capital conservation buffer | 7.875% | 7.25% | 6.625% | 6.00% | |
Minimum Common Equity Tier 1 capital plus capital conservation buffer | 6.375% | 5.75% | 5.125% | 4.50% | |
Forecast [Member] | |||||
Capital Conservation Buffer [Abstract] | |||||
Capital Conservation Buffer | 2.50% | ||||
Minimum total capital plus capital conservation buffer | 10.50% | ||||
Minimum Tier 1 capital plus capital conservation buffer | 8.50% | ||||
Minimum Common Equity Tier 1 capital plus capital conservation buffer | 7.00% |
Related-Party Transactions (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Sep. 28, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Summary of Loans [Roll Forward] | ||||
Balance Beginning of the Period | $ 6,684 | $ 3,446 | ||
Additions | 7,319 | 3,684 | ||
Collections/ Terminations | (7,106) | (446) | ||
Balance End of the Period | 6,897 | 6,684 | $ 3,446 | |
711 Holdings, LLC [Member] | ||||
Sale of subsidiary [Abstract] | ||||
Sale of subsidiary to related party | $ 1,500 | |||
Net gain from sale of subsidiary | $ 137 | |||
Haines Realty Investments Company, LLC [Member] | ||||
Sale of subsidiary [Abstract] | ||||
Lease expense | $ 184 | $ 184 | $ 180 |
Employee Benefits (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Employee Benefits [Abstract] | |||
Percentage of employee's compensation matched by company | 5.00% | ||
Defined benefit plan, employer contribution | $ 198 | $ 178 | $ 138 |
Unearned stock-based compensation expense [Abstract] | |||
Risk-free interest rate | 2.69% | ||
Dividend yield | 2.20% | ||
Stock price volatility | 13.70% | ||
Expected term | 4 years | ||
2018 Equity Incentive Plan [Member] | |||
Share-based Compensation [Abstract] | |||
Compensation expense related to the plan | $ 154 | ||
Stock Option [Member] | |||
Share-based Compensation [Abstract] | |||
Unrecognized compensation expense | $ 287 | ||
Period for recognition of compensation cost not yet recognized | 4 years | ||
Stock Option [Member] | IPO [Member] | |||
Share-based Compensation [Abstract] | |||
Vesting period | 4 years | ||
Stock Option [Member] | 2018 Equity Incentive Plan [Member] | |||
Stock Option Activity [Roll Forward] | |||
Options Granted (in shares) | 150,000 | ||
Options Exercised (in shares) | 0 | ||
Outstanding at end of period (in shares) | 150,000 | ||
Exercisable at end of period (in shares) | 0 | ||
Weighted Average Exercise Price [Roll Forward] | |||
Options Granted (in dollars per share) | $ 19.00 | ||
Options Exercised (in dollars per share) | 0 | ||
Outstanding at end of period (in dollars per share) | $ 19.00 | ||
Options, Additional Disclosures [Abstract] | |||
Weighted average remaining contractual term, Outstanding | 9 years 8 months 23 days | ||
Weighted average remaining contractual term, Exercisable | 0 years | ||
Aggregate intrinsic value, Outstanding | $ 0 | ||
Aggregate intrinsic value, Exercisable | 0 | ||
RSUs [Member] | |||
Share-based Compensation [Abstract] | |||
Unrecognized compensation expense | $ 2,340 | ||
Period for recognition of compensation cost not yet recognized | 5 years | ||
Restricted Stock Units [Roll Forward] | |||
Shares granted (in shares) | 130,000 | ||
Shares settled (in shares) | 0 | ||
Shares forfeited (in shares) | 0 | ||
End of the period balance (in shares) | 130,000 | ||
Weighted Average Grant Date Fair Value [Abstract] | |||
Shares granted (in dollars per share) | $ 19.09 | ||
Shares settled (in dollars per share) | 0 | ||
Shares forfeited (in dollars per share) | 0 | ||
End of the period balance (in dollars per share) | $ 19.09 | ||
RSUs [Member] | IPO [Member] | |||
Share-based Compensation [Abstract] | |||
Vesting period | 5 years |
Disclosures About Fair Value of Assets and Liabilities, Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Recurring Basis [Member] | ||
Asset measured at fair value on recurring basis [Abstract] | ||
Assets measured at fair value | $ 0 | $ 0 |
Nonrecurring Basis [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | 506 | 1,021 |
Foreclosed assets held for sale | 110 | 100 |
Level 1 [Member] | Nonrecurring Basis [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | 0 | 0 |
Foreclosed assets held for sale | 0 | 0 |
Level 2 [Member] | Nonrecurring Basis [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | 0 | 0 |
Foreclosed assets held for sale | 0 | 0 |
Level 3 [Member] | Nonrecurring Basis [Member] | ||
Asset measured at fair value on nonrecurring basis [Abstract] | ||
Impaired loans (collateral-dependent) | 506 | 1,021 |
Foreclosed assets held for sale | $ 110 | $ 100 |
Disclosures About Fair Value of Assets and Liabilities, Quantitative Information (Details) - Nonrecurring Basis [Member] $ in Thousands |
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
---|---|---|
Quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements [Abstract] | ||
Collateral-dependent impaired loans | $ 506 | $ 1,021 |
Foreclosed assets held for sale | 110 | 100 |
Level 3 [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements [Abstract] | ||
Collateral-dependent impaired loans | 506 | 1,021 |
Foreclosed assets held for sale | $ 110 | $ 100 |
Level 3 [Member] | Appraisals from Comparable Properties [Member] | Estimated Cost to Sell [Member] | Minimum [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements [Abstract] | ||
Collateral-dependent impaired loans, measurement input | 0.07 | 0.07 |
Foreclosed assets held for sale, measurement input | 0.07 | 0.07 |
Level 3 [Member] | Appraisals from Comparable Properties [Member] | Estimated Cost to Sell [Member] | Maximum [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements [Abstract] | ||
Collateral-dependent impaired loans, measurement input | 0.1 | 0.1 |
Foreclosed assets held for sale, measurement input | 0.1 | 0.1 |
Disclosures About Fair Value of Assets and Liabilities, Financial Instruments not Recorded at Fair Value (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Carrying Amount [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | $ 128,090 | $ 100,054 |
Interest-bearing time deposits in other banks | 31,759 | 30,168 |
Loans, net of allowance | 592,078 | 555,347 |
Mortgage loans held for sale | 512 | 388 |
Nonmarketable equity securities | 1,055 | 1,049 |
Interest receivable | 4,538 | 3,674 |
Financial Liabilities [Abstract] | ||
Deposits | 675,903 | 625,831 |
Borrowings | 5,600 | |
Interest payable | 461 | 404 |
Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 128,090 | 100,054 |
Interest-bearing time deposits in other banks | 31,758 | 30,176 |
Loans, net of allowance | 592,399 | 554,896 |
Mortgage loans held for sale | 512 | 388 |
Nonmarketable equity securities | 1,055 | 1,049 |
Interest receivable | 4,538 | 3,674 |
Financial Liabilities [Abstract] | ||
Deposits | 675,017 | 625,013 |
Borrowings | 5,600 | |
Interest payable | 461 | 404 |
Fair Value [Member] | Level 1 [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 128,090 | 100,054 |
Interest-bearing time deposits in other banks | 0 | 0 |
Loans, net of allowance | 0 | 0 |
Mortgage loans held for sale | 0 | 0 |
Nonmarketable equity securities | 0 | 0 |
Interest receivable | 0 | 0 |
Financial Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Borrowings | 0 | |
Interest payable | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 0 | 0 |
Interest-bearing time deposits in other banks | 31,758 | 30,176 |
Loans, net of allowance | 591,893 | 553,875 |
Mortgage loans held for sale | 512 | 388 |
Nonmarketable equity securities | 1,055 | 1,049 |
Interest receivable | 4,538 | 3,674 |
Financial Liabilities [Abstract] | ||
Deposits | 675,017 | 625,013 |
Borrowings | 5,600 | |
Interest payable | 461 | 404 |
Fair Value [Member] | Level 3 [Member] | ||
Financial Assets [Abstract] | ||
Cash and due from banks | 0 | 0 |
Interest-bearing time deposits in other banks | 0 | 0 |
Loans, net of allowance | 506 | 1,021 |
Mortgage loans held for sale | 0 | 0 |
Nonmarketable equity securities | 0 | 0 |
Interest receivable | 0 | 0 |
Financial Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Borrowings | 0 | |
Interest payable | $ 0 | $ 0 |
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Financial instruments, off-balance sheet credit risk [Abstract] | ||
Financial instruments, off-balance sheet credit risk | $ 136,093 | $ 147,432 |
Commitments to Extend Credit [Member] | ||
Financial instruments, off-balance sheet credit risk [Abstract] | ||
Financial instruments, off-balance sheet credit risk | 135,015 | 145,888 |
Financial and Performance Standby Letters of Credit [Member] | ||
Financial instruments, off-balance sheet credit risk [Abstract] | ||
Financial instruments, off-balance sheet credit risk | $ 1,078 | $ 1,544 |
Significant Estimates and Concentrations (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Significant Estimates of Loans [Abstract] | ||
Outstanding balance | $ 601,902 | $ 564,577 |
Hospitality Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Unfunded commitments | $ 28,300 | |
Hospitality Loans [Member] | Gross Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Percentage of gross loans | 20.40% | |
Outstanding balance | $ 123,000 | |
Energy Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Unfunded commitments | $ 23,400 | |
Energy Loans [Member] | Gross Loans [Member] | ||
Significant Estimates of Loans [Abstract] | ||
Percentage of gross loans | 18.30% | |
Outstanding balance | $ 110,000 |
Operating Leases (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Operating Leases [Abstract] | |||
Rental expense | $ 596 | $ 421 | $ 418 |
Non-Cancelable Operating Leases [Abstract] | |||
2019 | 579 | ||
2020 | 473 | ||
2021 | 329 | ||
2022 | 175 | ||
Thereafter | 128 | ||
Future minimum rental commitments | $ 1,684 |
Parent-only Financial Statements, Condensed Balance Sheets (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|
Assets [Abstract] | ||||
Cash and due from banks | $ 128,090 | $ 100,054 | ||
Total assets | 770,511 | 703,594 | ||
Liabilities and Shareholders' Equity [Abstract] | ||||
Borrowings | 0 | 5,600 | ||
Total liabilities | 682,045 | 634,418 | ||
Total shareholders' equity | 88,466 | 69,176 | $ 55,136 | $ 45,314 |
Total liabilities and shareholders' equity | 770,511 | 703,594 | ||
Parent Company [Member] | ||||
Assets [Abstract] | ||||
Cash and due from banks | 295 | 64 | ||
Investment in bank subsidiary | 87,377 | 73,718 | ||
Goodwill | 1,011 | 1,011 | ||
Other assets | 39 | 0 | ||
Total assets | 88,722 | 74,793 | ||
Liabilities and Shareholders' Equity [Abstract] | ||||
Borrowings | 0 | 5,600 | ||
Other liabilities | 256 | 17 | ||
Total liabilities | 256 | 5,617 | ||
Total shareholders' equity | 88,466 | 69,176 | ||
Total liabilities and shareholders' equity | $ 88,722 | $ 74,793 |
Parent-only Financial Statements, Condensed Statements of Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Expense [Abstract] | |||||||||||
Interest expense | $ 7,169 | $ 4,739 | $ 3,303 | ||||||||
Income Before Taxes | $ 6,753 | $ 6,315 | $ 6,379 | $ 6,350 | $ 4,567 | $ 5,950 | $ 6,689 | $ 6,583 | 25,797 | 23,789 | 16,817 |
Income tax benefit | 1,192 | (395) | 0 | 0 | 0 | 0 | 0 | 0 | 797 | 0 | 0 |
Net Income | $ 5,561 | $ 6,710 | $ 6,379 | $ 6,350 | $ 4,567 | $ 5,950 | $ 6,689 | $ 6,583 | 25,000 | 23,789 | 16,817 |
Parent Company [Member] | |||||||||||
Income [Abstract] | |||||||||||
Dividends received from subsidiary bank | 11,930 | 10,765 | 8,050 | ||||||||
Expense [Abstract] | |||||||||||
Interest expense | 175 | 238 | 263 | ||||||||
Other | 315 | 0 | 0 | ||||||||
Total expense | 490 | 238 | 263 | ||||||||
Income before income taxes and equity in undistributed net income of bank subsidiary | 11,440 | 10,527 | 7,787 | ||||||||
Equity in undistributed net income of bank subsidiary | 13,521 | 13,262 | 9,030 | ||||||||
Income Before Taxes | 24,961 | 23,789 | 16,817 | ||||||||
Income tax benefit | (39) | 0 | 0 | ||||||||
Net Income | $ 25,000 | $ 23,789 | $ 16,817 |
Parent-only Financial Statements, Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Operating Activities [Abstract] | |||||||||||
Net income | $ 5,561 | $ 6,710 | $ 6,379 | $ 6,350 | $ 4,567 | $ 5,950 | $ 6,689 | $ 6,583 | $ 25,000 | $ 23,789 | $ 16,817 |
Items not requiring (providing) cash [Abstract] | |||||||||||
Stock-based compensation expense | 154 | 0 | 0 | ||||||||
Changes in [Abstract] | |||||||||||
Net cash provided by operating activities | 27,001 | 25,877 | 19,357 | ||||||||
Financing Activities [Abstract] | |||||||||||
Repayment of Borrowed Funds | (5,600) | (800) | (800) | ||||||||
Cash dividends paid | (56,155) | (9,749) | (6,995) | ||||||||
Common stock issued, net of offering costs | 50,154 | 0 | 0 | ||||||||
Net cash provided by financing activities | 38,608 | 65,726 | 32,991 | ||||||||
Increase (Decrease) in Cash and Due from Banks | 28,036 | 25,810 | 8,068 | ||||||||
Cash and Due from Banks, Beginning of Year | 100,054 | 74,244 | 100,054 | 74,244 | 66,176 | ||||||
Cash and Due from Banks, End of Year | 128,090 | 100,054 | 128,090 | 100,054 | 74,244 | ||||||
Supplemental Disclosure of Cash Flows Information [Abstract] | |||||||||||
Interest paid | 7,304 | 4,739 | 3,303 | ||||||||
Parent Company [Member] | |||||||||||
Operating Activities [Abstract] | |||||||||||
Net income | 25,000 | 23,789 | 16,817 | ||||||||
Items not requiring (providing) cash [Abstract] | |||||||||||
Equity in undistributed net income of bank subsidiary | (13,521) | (13,262) | (9,030) | ||||||||
Stock-based compensation expense | 154 | 0 | 0 | ||||||||
Changes in [Abstract] | |||||||||||
Other assets | (39) | 0 | 0 | ||||||||
Other liabilities | 238 | (2) | (2) | ||||||||
Net cash provided by operating activities | 11,832 | 10,525 | 7,785 | ||||||||
Financing Activities [Abstract] | |||||||||||
Repayment of Borrowed Funds | (5,600) | (800) | (800) | ||||||||
Cash dividends paid | (56,155) | (9,749) | (6,995) | ||||||||
Common stock issued, net of offering costs | 50,154 | 0 | 0 | ||||||||
Net cash provided by financing activities | (11,601) | (10,549) | (7,795) | ||||||||
Increase (Decrease) in Cash and Due from Banks | 231 | (24) | (10) | ||||||||
Cash and Due from Banks, Beginning of Year | $ 64 | $ 88 | 64 | 88 | 98 | ||||||
Cash and Due from Banks, End of Year | $ 295 | $ 64 | 295 | 64 | 88 | ||||||
Supplemental Disclosure of Cash Flows Information [Abstract] | |||||||||||
Interest paid | $ (175) | $ 239 | $ 265 |
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||||||||
Selected Quarterly Financial Data (Unaudited) [Abstract] | |||||||||||||||||||||
Net interest income | $ 10,530 | $ 9,801 | $ 9,439 | $ 9,861 | $ 8,489 | $ 9,453 | $ 10,495 | $ 9,694 | $ 39,631 | $ 38,131 | $ 29,850 | ||||||||||
Provision for loan losses | 100 | 0 | 0 | 100 | 151 | 150 | 785 | 160 | 200 | 1,246 | 1,554 | ||||||||||
Noninterest income | 262 | 319 | 486 | 264 | 143 | 382 | 428 | 482 | 1,331 | 1,435 | 1,643 | ||||||||||
Noninterest expense | 3,939 | 3,805 | 3,546 | 3,675 | 3,914 | 3,735 | 3,449 | 3,433 | 14,965 | 14,531 | 13,122 | ||||||||||
Income Before Taxes | 6,753 | 6,315 | 6,379 | 6,350 | 4,567 | 5,950 | 6,689 | 6,583 | 25,797 | 23,789 | 16,817 | ||||||||||
Income tax expense (benefit) | 1,192 | (395) | 0 | 0 | 0 | 0 | 0 | 0 | 797 | 0 | 0 | ||||||||||
Net Income | $ 5,561 | $ 6,710 | $ 6,379 | $ 6,350 | $ 4,567 | $ 5,950 | $ 6,689 | $ 6,583 | $ 25,000 | $ 23,789 | $ 16,817 | ||||||||||
EPS [Abstract] | |||||||||||||||||||||
Basic (in dollars per share) | $ 0.55 | [1] | $ 0.88 | [1] | $ 0.88 | [1] | $ 0.87 | [1] | $ 0.62 | [1] | $ 0.82 | [1] | $ 0.92 | [1] | $ 0.90 | [1] | $ 3.08 | $ 3.26 | $ 2.31 | ||
Diluted (in dollars per share) | $ 0.54 | [1] | $ 0.87 | [1] | $ 0.88 | [1] | $ 0.87 | [1] | $ 0.62 | [1] | $ 0.82 | [1] | $ 0.92 | [1] | $ 0.90 | [1] | $ 3.03 | $ 3.26 | $ 2.31 | ||
|
F!NK,I?3(<1?CFS!N7O11TGV3DXHEFS''"T!4F
M71#$L2\2-"9QI/^4TWCY)NIP$\HW:_7]?9Q@&R78!H+M7RVF-RW&,/]QN8N*
M["($FQN1&&9[(T)6%R= -^')&E2J089Q6667J7B@X>+_P*>1>F*ZZ:1!9V7=
M\PF77"MEP5E)[IR7UDWQ$G"HK=_>N[V>WO(46-7/8TJ6_XKB U!+ P04
M" !MB'U.XM(-1[@! #2 P &0 'AL+W=O .>3M]Y[S?EA
MG[)K$)HPIQ'#%YC-C&!>?0[!UT*<^']TOD[?KF:XC?3M,OJG9%U@MRJPBP*[
M?TJ\_5#B&N;N0Q"VZ*D&4\=ILJ3 OHV3O/#. WO/XYO\A8_3_DV86K:67-#Y
MEXW]KQ =^%22&S]"C?]@LZ&@ 'S9V/_:
M& ^82G*#(]3B!UL,!;4/QUL\VVG,)L.;?OY!;/G&Q6]02P,$% @ ;8A]
M3G%[CHZX 0 T@, !D !X;"]W;W)K O&N 3)TY[5\ /,S_ZL;$06E;(5T.E6=DA!E>'[^'@Z.+P'
M_&IAU*L] =1A=I[!WU-ZF2TH M
M);JS#3?VJ5@"#I5QVT]VKZ:!F0(C^_DM(,N#E/\%4$L#!!0 ( &V(?4XM
ME[W3MP$ -(# 9 >&PO=V]R:W-H965T +1U/LY0$P;9II?,8. Y$)1)Q5R'@><^$90Y#"D7$Y0Y
M$)0E](E= Y5VJ1!F.J%J'U6V1W5[;@>Q+)56!Y/*Q01F[G(E#4BTQ&^'*>5B
MPC*':O=\90"GG)=6!I/*Q<1E[G)%#4B\%9Q@2+F8J,P!_AA%?], *IU(17./
M,>5CPC(?D8 "C9*>)H]YYU%8)DT'4\I_(BSSF%(^)BSS/."B90H@R:3UP+#S
M,1&9YQBCFQ9()/A[S#D?$XWYJ;QR<((25,&)\-MD3##F+R,.2*2BI<>$\S%Q
MF+]<60,2);#68[CYF##,(?)._1>"WYWF[%K
M$)HQIPG#5YC=@F"HOH3@6R%._!\ZWZ;O-S/<1_I^34_^(Y!N"J11(/VKQ,.;
M$K*S.!(S-3[7H0GWAVX
M[TT9G+$5\0-, N@Q@XJ<#^#2 WSI 3 /$K0/D-$!: \(Q
M]V$RMVF;KI=U=5[4X_UP2OO;CCW*KER[_N10G>&_;CZ;[NS'6D3),OSH TW,
MT\C0C*%K8N,27%\C6Q?1ZAIY=A'!H@L3=GE
A ?1QJ+VLFS0@'#A3@6=HI:"4<.5 E9PZ4<.A 99TZ.*CXHBVI)MDK+T[.
MAPTG]OZH=L_+33O[VG1=LQX/A#TU35?W!=6GOM)+73T>7ZSJIVYX.@3HW?Z@
MW/Y%UVRO]Z< %\>CB#?_ U!+ P04 " !MB'U.WAT5FET& I+ &0
M 'AL+W=O
KN?9?/88GO+7
MHOE:OO\6A@FY^6R8_1_A+12MO'/2CK$IB[K_.]N\UDVY&WIIK>SR'\?7[;Y_
M?1_Z_VB&&^BA@3XU4'ZR@1D:F)\-;#_YH[-^JK_D37ZSJLKW677\M YYMRG4
ME6D7<]/=[->N_U\[V[J]^W9CEWJU>.LZ&C1W1XT^TZB38M'V?AI"HR'N-&M.
M!EASA4GQ" 9.PO3MS6@2!G=@80>V[\"..K!D%8X:UVOVQU5(,JW(5+C*>I]@
M+PYZ<<"+(UZ.&C_RDJ0I\<)5QAJ'O7CHQ0,OGGCQ;!27$,V::U2BA4V40BY>"45QFB!>NLM9Y["6#7C+@)2->,CX*710N,4O!QQ+Z6 (?2^)CR0;)
MEHH^?UR4>BML6I5@CB3,C$L2"I*$#T3W]AJ(C-6"&0%JB@'!)<)V4Q!:MTJ#
M^3 P:F8UH;.9DHR-8+8I XP8:L1$CX(!J !E; 9%>:6
WL9K!>JY';7HZQ7\5J"NK]9[B?%K@0*O*]! ;Q-H\J'L[#)H
MV=P!&W;L7*CW"34^:HV%+1_/"?0ND=XETJ3=U2OPJU%[%]D#$B]!]5"AW9%X
MT'7I@0&IEZ!&[F&7D?Y6>P".QLA3C9R6D1/8'48=IQ- C9&OWN.P=;H 4*^D
MN09U!R,EZ$<-2CG+3_V0YW[(2S_DM1^RZ(