DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | GNTY | |
Entity File Number | 001-38087 | |
Entity Tax Identification Number | 75-1656431 | |
Entity Address, Address Line One | 16475 Dallas Parkway, Suite 600 | |
Entity Address, City or Town | Addison | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75001 | |
City Area Code | 888 | |
Local Phone Number | 572 - 9881 | |
Entity Registrant Name | GUARANTY BANCSHARES INC /TX/ | |
Entity Central Index Key | 0001058867 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,531,943 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, par value $1.00 per share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | TX | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 42,051 | $ 44,471 |
Federal funds sold | 14,250 | 20,275 |
Interest-bearing deposits | 2,347 | 6,764 |
Total cash and cash equivalents | 58,648 | 71,510 |
Securities available for sale | 221,345 | 232,975 |
Securities held to maturity | 156,925 | 163,164 |
Loans held for sale | 3,841 | 1,795 |
Loans, net | 1,720,595 | 1,645,444 |
Accrued interest receivable | 7,825 | 9,292 |
Premises and equipment, net | 52,956 | 52,227 |
Other real estate owned | 551 | 751 |
Cash surrender value of life insurance | 34,280 | 26,301 |
Deferred tax asset | 2,363 | 3,209 |
Core deposit intangible, net | 4,066 | 4,706 |
Goodwill | 32,160 | 32,160 |
Other assets | 30,467 | 23,436 |
Total assets | 2,326,022 | 2,266,970 |
Deposits | ||
Noninterest-bearing | 528,301 | 489,789 |
Interest-bearing | 1,435,012 | 1,381,691 |
Total deposits | 1,963,313 | 1,871,480 |
Securities sold under agreements to repurchase | 11,363 | 12,228 |
Accrued interest and other liabilities | 23,508 | 10,733 |
Federal Home Loan Bank advances | 60,623 | 115,136 |
Subordinated debentures | 11,310 | 12,810 |
Total liabilities | 2,070,117 | 2,022,387 |
Commitments and contingencies (see Note 12) | ||
Shareholders' equity | ||
Preferred stock, $5.00 par value, 15,000,000 shares authorized, no shares issued | 0 | 0 |
Common stock, $1.00 par value, 50,000,000 shares authorized, 12,889,597 and 12,835,486 shares issued, and 11,534,393 and 11,829,868 shares outstanding, respectively | 12,890 | 12,835 |
Additional paid-in capital | 186,165 | 185,174 |
Retained earnings | 92,947 | 80,088 |
Treasury stock, 1,355,204 and 1,005,618 shares at cost | (34,419) | (24,352) |
Accumulated other comprehensive loss | (1,678) | (9,162) |
Total shareholders' equity | 255,905 | 244,583 |
Total liabilities and shareholders' equity | $ 2,326,022 | $ 2,266,970 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 5 | $ 5 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 12,889,597 | 12,835,486 |
Common stock, shares outstanding (in shares) | 11,534,393 | 11,829,868 |
Treasury stock (in shares) | 1,355,204 | 1,005,618 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest income | ||||
Loans, including fees | $ 22,996 | $ 20,879 | $ 67,821 | $ 55,377 |
Securities | ||||
Taxable | 1,417 | 1,526 | 4,543 | 4,713 |
Nontaxable | 955 | 966 | 2,871 | 2,812 |
Federal funds sold and interest-bearing deposits | 485 | 304 | 1,478 | 837 |
Total interest income | 25,853 | 23,675 | 76,713 | 63,739 |
Interest expense | ||||
Deposits | 5,304 | 4,670 | 16,681 | 11,948 |
FHLB advances and federal funds purchased | 298 | 593 | 1,126 | 1,181 |
Subordinated debentures | 156 | 173 | 495 | 516 |
Other borrowed money | 12 | 10 | 35 | 34 |
Total interest expense | 5,770 | 5,446 | 18,337 | 13,679 |
Net interest income | 20,083 | 18,229 | 58,376 | 50,060 |
Provision for loan losses | 100 | 500 | 1,250 | 1,750 |
Net interest income after provision for loan losses | 19,983 | 17,729 | 57,126 | 48,310 |
Noninterest income | ||||
Service charges | 978 | 921 | 2,693 | 2,661 |
Net realized gain (loss) on securities transactions | 1 | (22) | (50) | |
Net realized gain on sale of loans | 910 | 637 | 2,070 | 1,871 |
Other income | 2,728 | 1,990 | 7,547 | 6,648 |
Total noninterest income | 4,616 | 3,549 | 12,288 | 11,130 |
Noninterest expense | ||||
Employee compensation and benefits | 8,896 | 8,156 | 26,575 | 23,723 |
Occupancy expenses | 2,448 | 2,217 | 7,336 | 6,076 |
Other expenses | 4,091 | 4,654 | 12,388 | 12,431 |
Total noninterest expense | 15,435 | 15,027 | 46,299 | 42,230 |
Income before income taxes | 9,164 | 6,251 | 23,115 | 17,210 |
Income tax provision | 1,634 | 1,160 | 4,205 | 3,126 |
Net earnings | $ 7,530 | $ 5,091 | $ 18,910 | $ 14,084 |
Basic earnings per share (in USD per share) | $ 0.65 | $ 0.43 | $ 1.62 | $ 1.23 |
Diluted earnings per share (in USD per share) | $ 0.65 | $ 0.42 | $ 1.62 | $ 1.22 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net earnings | $ 7,530 | $ 5,091 | $ 18,910 | $ 14,084 |
Unrealized gains (losses) on securities | ||||
Unrealized holding gains (losses) arising during the period | 1,232 | (1,592) | 9,716 | (6,104) |
Amortization of net unrealized gains on held to maturity securities | 5 | 6 | 14 | 28 |
Reclassification adjustment for net (gains) losses included in net earnings | (1) | 22 | 50 | |
Tax effect | (260) | 334 | (2,065) | 1,271 |
Unrealized gains (losses) on securities, net of tax | 977 | (1,253) | 7,687 | (4,755) |
Unrealized holding (losses) gains arising during the period on interest rate swaps | (29) | 67 | (203) | 263 |
Total other comprehensive income (loss) | 948 | (1,186) | 7,484 | (4,492) |
Reclassification of certain tax effects from accumulated other comprehensive income | (486) | |||
Comprehensive income | $ 8,478 | $ 3,905 | $ 26,394 | $ 9,106 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2017 | $ 207,345 | $ 0 | $ 11,921 | $ 155,601 | $ 66,037 | $ (20,087) | $ (6,127) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 14,084 | 14,084 | |||||
Other comprehensive income (loss) | (4,492) | (4,492) | |||||
Reclassification of certain tax effects from accumulated other comprehensive income | 486 | (486) | |||||
Exercise of stock options | 140 | 6 | 134 | ||||
Purchase of treasury stock | (9) | (9) | |||||
Issuance of common stock | 29,568 | 900 | 28,668 | ||||
Stock based compensation | 378 | 378 | |||||
Dividends: Common Stock | (5,017) | (5,017) | |||||
Ending balance at Sep. 30, 2018 | 241,997 | 0 | 12,827 | 184,781 | 75,590 | (20,096) | (11,105) |
Beginning balance at Jun. 30, 2018 | 239,658 | 0 | 12,823 | 184,548 | 72,293 | (20,087) | (9,919) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 5,091 | 5,091 | |||||
Other comprehensive income (loss) | (1,186) | (1,186) | |||||
Exercise of stock options | 94 | 4 | 90 | ||||
Purchase of treasury stock | (9) | (9) | |||||
Stock based compensation | 143 | 143 | |||||
Dividends: Common Stock | (1,794) | (1,794) | |||||
Ending balance at Sep. 30, 2018 | 241,997 | 0 | 12,827 | 184,781 | 75,590 | (20,096) | (11,105) |
Beginning balance at Dec. 31, 2018 | 244,583 | 0 | 12,835 | 185,174 | 80,088 | (24,352) | (9,162) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 18,910 | 18,910 | |||||
Other comprehensive income (loss) | 7,484 | 7,484 | |||||
Exercise of stock options | 553 | 24 | 529 | ||||
Purchase of treasury stock | (10,067) | (10,067) | |||||
Restricted stock grants | 31 | (31) | |||||
Stock based compensation | 493 | 493 | |||||
Dividends: Common Stock | (6,051) | (6,051) | |||||
Ending balance at Sep. 30, 2019 | 255,905 | 0 | 12,890 | 186,165 | 92,947 | (34,419) | (1,678) |
Beginning balance at Jun. 30, 2019 | 250,121 | 0 | 12,886 | 185,918 | 87,492 | (33,549) | (2,626) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 7,530 | 7,530 | |||||
Other comprehensive income (loss) | 948 | 948 | |||||
Exercise of stock options | 72 | 4 | 68 | ||||
Purchase of treasury stock | (870) | (870) | |||||
Stock based compensation | 179 | 179 | |||||
Dividends: Common Stock | (2,075) | (2,075) | |||||
Ending balance at Sep. 30, 2019 | $ 255,905 | $ 0 | $ 12,890 | $ 186,165 | $ 92,947 | $ (34,419) | $ (1,678) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||||
Common stock dividends (in USD per share) | $ 0.18 | $ 0.15 | $ 0.52 | $ 0.43 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Cash flows from operating activities | |||||
Net earnings | $ 7,530 | $ 5,091 | $ 18,910 | $ 14,084 | |
Adjustments to reconcile net earnings to net cash provided from operating activities: | |||||
Depreciation | 2,914 | 2,457 | |||
Amortization | 1,040 | 881 | |||
Deferred taxes | (1,219) | 577 | |||
Premium amortization, net of discount accretion | 2,888 | 3,247 | |||
Net realized loss on securities transactions | (1) | 22 | 50 | ||
Gain on sale of loans | (910) | (637) | (2,070) | (1,871) | |
Provision for loan losses | 100 | 500 | 1,250 | 1,750 | $ 2,250 |
Origination of loans held for sale | (55,265) | (56,276) | |||
Proceeds from loans held for sale | 55,289 | 59,217 | |||
Write-down of other real estate and repossessed assets | 0 | 392 | |||
Net loss on sale of premises, equipment, other real estate owned and other assets | 19 | 478 | |||
Stock based compensation | 493 | 378 | |||
Net change in accrued interest receivable and other assets | (13,943) | (5,170) | |||
Net change in accrued interest payable and other liabilities | 10,495 | 1,768 | |||
Net cash provided by operating activities | 20,823 | 21,962 | |||
Securities available for sale: | |||||
Purchases | (5,120) | (124,914) | |||
Proceeds from sales | 3,957 | 111,813 | |||
Proceeds from maturities and principal repayments | 21,182 | 20,697 | |||
Securities held to maturity: | |||||
Proceeds from maturities and principal repayments | 4,692 | 8,184 | |||
Cash paid in connection with acquisitions | 0 | (6,423) | |||
Net originations of loans | (76,538) | (138,024) | |||
Net purchases of premises and equipment | (3,643) | (2,924) | |||
Net proceeds from sale of premises, equipment, other real estate owned and other assets | 318 | 1,898 | |||
Net cash used in investing activities | (55,152) | (104,766) | |||
Cash flows from financing activities | |||||
Net change in deposits | 91,833 | (20,402) | |||
Net change in securities sold under agreements to repurchase | (865) | (1,772) | |||
Proceeds from FHLB advances | 156,000 | 325,000 | |||
Repayment of FHLB advances | (210,513) | (251,513) | |||
Repayments of debentures | (1,500) | (1,000) | |||
Purchase of treasury stock | (10,067) | (9) | |||
Exercise of stock options | 553 | 140 | |||
Cash dividends | (3,974) | (5,017) | |||
Net cash provided by financing activities | 21,467 | 45,427 | |||
Net change in cash and cash equivalents | (12,862) | (37,377) | |||
Cash and cash equivalents at beginning of period | 71,510 | 91,428 | 91,428 | ||
Cash and cash equivalents at end of period | 58,648 | 54,051 | 58,648 | 54,051 | $ 71,510 |
Supplemental disclosures of cash flow information | |||||
Interest paid | 18,269 | 13,137 | |||
Income taxes paid | 4,011 | 4,008 | |||
Supplemental schedule of noncash investing and financing activities | |||||
Cash dividends accrued | $ 2,077 | $ 0 | 2,077 | 0 | |
Transfer loans to other real estate owned and repossessed assets | 137 | 591 | |||
Common stock issued in acquisitions | 0 | 29,568 | |||
Reclassification of certain tax effects from accumulated other comprehensive income | 0 | 486 | |||
Acquired banks | |||||
Securities held to maturity: | |||||
Cash received from acquired banks | $ 0 | $ 24,927 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations : Guaranty Bancshares, Inc. (“Guaranty”) is a bank holding company headquartered in Mount Pleasant, Texas that provides, through its wholly-owned subsidiary, Guaranty Bank & Trust, N.A. (the “Bank”), a broad array of financial products and services to individuals and corporate customers, primarily in its markets of East Texas, Dallas/Fort Worth, Greater Houston and Central Texas. The terms “the Company,” “we,” “us” and “our” mean Guaranty and its subsidiaries, when appropriate. The Company’s main sources of income are derived from making loans throughout its markets and investing in securities issued by the U.S. Treasury, U.S. government agencies and state and political subdivisions. The Company’s primary lending products are real estate, commercial and consumer loans. Although the Company has a diversified loan portfolio, a substantial portion of its debtors’ abilities to honor contracts is dependent on the economy of the State of Texas and primarily the economies of East Texas, Dallas/Fort Worth, Greater Houston and Central Texas. The Company primarily funds its lending activities with deposit operations. The Company’s primary deposit products are checking accounts, money market accounts and certificates of deposit. Basis of Presentation : The consolidated financial statements in this Quarterly Report on Form 10-Q (this “Report”) include the accounts of Guaranty, the Bank, and their respective other direct and indirect subsidiaries and any other entities in which Guaranty has a controlling interest. The Bank has six wholly-owned non-bank subsidiaries, Guaranty Company, Inc., G B COM, INC., 2800 South Texas Avenue LLC, Pin Oak Realty Holdings, Inc., Pin Oak Energy Holdings, LLC and White Oak Aviation, LLC. All significant intercompany balances and transactions have been eliminated in consolidation. The accounting and financial reporting policies followed by the Company conform, in all material respects, to accounting principles generally accepted in the United States of America (“GAAP”) and to general practices within the financial services industry. The consolidated financial statements in this Report have not been audited by an independent registered public accounting firm, but in the opinion of management, reflect all adjustments necessary for a fair presentation of the Company’s financial position and results of operations. All such adjustments were of a normal and recurring nature. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s consolidated financial statements, and notes thereto, for the year ended December 31, 2018, included in Guaranty’s Annual Report on Form 10-K for the year ended December 31, 2018. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. All dollar amounts referenced and discussed in the notes to the consolidated financial statements in this Report are presented in thousands, unless noted otherwise. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions may also affect 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 these estimates. Recent Accounting Pronouncements : In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which sets forth a "current expected credit loss" ("CECL") model requiring the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. For public companies, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company expects that the transition will result in an increase to the allowance for loan losses upon adoption on January 1, 2020, although we are not yet prepared to disclosure the magnitude of the expected increase. The Company’s transition team has run parallel models for calculating the expected losses using various forecasts and qualitative factor adjustments, beginning in January 2019, to gain a comprehensive understanding of the impact that CECL and its underlying assumptions will have on the allowance upon adoption and through future periods. Documentation and model assumptions will continue to be refined during the fourth quarter of 2019. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | NOTE 2 - ACQUISITIONS On close of business June 1, 2018, the Company acquired 100% of the outstanding shares of capital stock of Westbound Bank, a Texas banking association (“Westbound”), in exchange for a combination of cash and shares of the Company’s common stock amounting to total consideration of $35,991. Under the terms of the acquisition, the Company issued 899,816 shares of the Company’s common stock in exchange for 2,311,952 shares of Westbound, representing 100% of the outstanding shares of common and preferred stock of Westbound. With the acquisition, the Company has expanded its market into the Houston metropolitan region. Results of operations of the acquired company were included in the Company’s results beginning June 2, 2018. The fair value of the common shares issued as part of the consideration paid for Westbound was determined based upon the closing price of the Company’s common shares on the acquisition date. Goodwill of $13,418 arising from the acquisition of Westbound consisted largely of synergies and the cost savings resulting from the combining of the operations of the companies. None of the goodwill is expected to be deductible for income tax purposes. The following table summarizes the consideration paid for Westbound: Consideration: Westbound Cash $ 6,423 Equity instruments 29,568 Fair value of total consideration transferred $ 35,991 Cash consideration includes contingent consideration related to an escrow agreement in which $1,750 was retained from amounts paid to Westbound shareholders for payment to Guaranty in the event that certain defined loan relationships experienced actual losses during the three year period following the close of the transaction on June 1, 2018. If the loans defined in the escrow agreement do experience losses, funds from the escrow account will be remitted to Guaranty. If the loans payoff or do not experience losses, funds from the escrow account will be remitted to Westbound shareholders according to terms set forth in the escrow agreement. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition, June 1, 2018. Westbound Cash and due from banks $ 24,927 Investment securities available for sale 15,264 Loans, net of discount 154,687 Accrued interest receivable 651 Premises and equipment 8,625 Core deposit intangible 2,700 Other assets 9,205 Total assets acquired 216,059 Non-interest bearing deposits 40,595 Interest bearing deposits 140,826 Federal Home Loan Bank advances 10,500 Accrued interest and other liabilities 1,565 Total liabilities assumed 193,486 Net assets acquired 22,573 Total consideration paid 35,991 Goodwill $ 13,418 The fair value of net assets acquired includes fair value adjustments to certain receivables that were not considered impaired as of the acquisition date (“acquired performing loans”). The fair value adjustments were determined using discounted contractual cash flows. However, the Company believed that all contractual cash flows related to these financial instruments would be collected. As such, these receivables were not considered impaired at the acquisition date and were not subject to the guidance relating to purchased credit impaired loans, which have shown evidence of credit deterioration since origination. Acquired performing loans had fair value and gross contractual amounts receivable of $154,687. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 9 Months Ended |
Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 3 - MARKETABLE SECURITIES The following tables summarize the amortized cost and fair value of securities available for sale and securities held to maturity as of September 30, 2019 and December 31, 2018 and the corresponding amounts of gross unrealized gains and losses: September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Corporate bonds $ 19,686 $ 533 $ — $ 20,219 Municipal securities 15,670 603 — 16,273 Mortgage-backed securities 87,946 676 555 88,067 Collateralized mortgage obligations 95,297 1,522 33 96,786 Total available for sale $ 218,599 $ 3,334 $ 588 $ 221,345 Held to maturity: Municipal securities $ 138,876 $ 4,985 $ 8 $ 143,853 Mortgage-backed securities 15,119 188 43 15,264 Collateralized mortgage obligations 2,930 118 — 3,048 Total held to maturity $ 156,925 $ 5,291 $ 51 $ 162,165 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Corporate bonds $ 19,743 $ — $ 789 $ 18,954 Municipal securities 15,778 75 260 15,593 Mortgage-backed securities 93,083 52 3,676 89,459 Collateralized mortgage obligations 111,341 — 2,372 108,969 Total available for sale $ 239,945 $ 127 $ 7,097 $ 232,975 Held to maturity: Municipal securities $ 141,942 $ 1,156 $ 1,094 $ 142,004 Mortgage-backed securities 17,163 54 500 16,717 Collateralized mortgage obligations 4,059 48 28 4,079 Total held to maturity $ 163,164 $ 1,258 $ 1,622 $ 162,800 Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. The Company did not record any OTTI losses on any of its securities during the nine months ended September 30, 2019 or for the year ended December 31, 2018. Information pertaining to securities with gross unrealized losses as of September 30, 2019 and December 31, 2018 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position is detailed in the following tables: Less Than 12 Months 12 Months or Longer Total September 30, 2019 Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Available for sale: Corporate bonds $ — $ — $ — $ — $ — $ — Municipal securities — — — — — — Mortgage-backed securities — — (555 ) 64,192 (555 ) 64,192 Collateralized mortgage obligations — — (33 ) 2,965 (33 ) 2,965 Total available for sale $ — $ — $ (588 ) $ 67,157 $ (588 ) $ 67,157 Held to maturity: Municipal securities $ (6 ) $ 3,016 $ (2 ) $ 763 $ (8 ) $ 3,779 Mortgage-backed securities — — (43 ) 7,287 (43 ) 7,287 Collateralized mortgage obligations — 13 — — — 13 Total held to maturity $ (6 ) $ 3,029 $ (45 ) $ 8,050 $ (51 ) $ 11,079 Less Than 12 Months 12 Months or Longer Total December 31, 2018 Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Available for sale: Corporate bonds $ (453 ) $ 11,236 $ (336 ) $ 7,718 $ (789 ) $ 18,954 Municipal securities (17 ) 2,219 (243 ) 7,407 (260 ) 9,626 Mortgage-backed securities (89 ) 7,173 (3,587 ) 76,717 (3,676 ) 83,890 Collateralized mortgage obligations (79 ) 9,232 (2,293 ) 99,390 (2,372 ) 108,622 Total available for sale $ (638 ) $ 29,860 $ (6,459 ) $ 191,232 $ (7,097 ) $ 221,092 Held to maturity: Municipal securities $ (512 ) $ 55,793 $ (582 ) $ 26,511 $ (1,094 ) $ 82,304 Mortgage-backed securities (21 ) 1,478 (479 ) 12,317 (500 ) 13,795 Collateralized mortgage obligations (28 ) 2,171 — — (28 ) 2,171 Total held to maturity $ (561 ) $ 59,442 $ (1,061 ) $ 38,828 $ (1,622 ) $ 98,270 The number of investment positions in an unrealized loss position totaled 26 at September 30, 2019. The securities in a loss position were composed of tax-exempt municipal bonds, corporate bonds, collateralized mortgage obligations and mortgage backed securities. Mortgage-backed securities and collateralized mortgage obligations are backed by pools of mortgages that are insured or guaranteed by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association or the Government National Mortgage Association. As of September 30, 2019, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of shareholders’ equity. Securities with fair values of approximately $240,348 and $259,557 at September 30, 2019 and December 31, 2018, respectively, were pledged to secure public fund deposits and for other purposes as required or permitted by law. The proceeds from sales of available for sale securities and the associated gains and losses are listed below for the: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Proceeds from sales $ — $ 102,356 $ 3,957 $ 111,813 Gross gains — 4 — 4 Gross losses — (3 ) (22 ) (54 ) There were no held to maturity securities sold during the three or nine months ended September 30, 2019 or 2018. The contractual maturities at September 30, 2019 of available for sale and held to maturity securities at carrying value and estimated fair value are shown below. The Company invests in mortgage-backed securities and collateralized mortgage obligations that have expected maturities that differ from their contractual maturities. These differences arise because borrowers and/or issuers may have the right to call or prepay their obligation with or without call or prepayment penalties. Available for Sale Held to Maturity September 30, 2019 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 1,023 $ 1,027 $ 2,150 $ 2,164 Due after one year through five years 13,421 13,748 29,272 30,148 Due after five years through ten years 13,333 13,907 33,943 35,375 Due after ten years 7,579 7,810 73,511 76,166 Mortgage-backed securities 87,946 88,067 15,119 15,264 Collateralized mortgage obligations 95,297 96,786 2,930 3,048 Total Securities $ 218,599 $ 221,345 $ 156,925 $ 162,165 |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | NOTE 4 - LOANS AND ALLOWANCE FOR LOAN LOSSES The following table summarizes the Company’s loan portfolio by type of loan as of: September 30, 2019 December 31, 2018 Commercial and industrial $ 299,714 $ 261,779 Real estate: Construction and development 256,459 237,503 Commercial real estate 581,742 582,519 Farmland 61,073 67,845 1-4 family residential 406,880 393,067 Multi-family residential 58,198 38,386 Consumer 53,315 54,777 Agricultural 18,728 23,277 Overdrafts 330 382 Total loans 1,736,439 1,659,535 Net of: Deferred loan costs 550 560 Allowance for loan losses (16,394 ) (14,651 ) Total net loans $ 1,720,595 $ 1,645,444 The following tables present the activity in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method for the nine months ended September 30, 2019, for the year ended December 31, 2018 and for the nine months ended September 30, 2018: For the Nine Months Ended September 30, 2019 Commercial and industrial Construction and development Commercial real estate Farmland 1-4 family residential Multi-family residential Consumer Agricultural Overdrafts Total Allowance for loan losses: Beginning balance $ 1,751 $ 1,920 $ 6,025 $ 643 $ 2,868 $ 631 $ 565 $ 238 $ 10 $ 14,651 Provision for loan losses (152 ) 215 863 (49 ) 220 199 (28 ) (126 ) 108 1,250 Loans charged-off (49 ) — — — (14 ) — (32 ) — (137 ) (232 ) Recoveries 507 — 1 — 3 — 95 89 30 725 Ending balance $ 2,057 $ 2,135 $ 6,889 $ 594 $ 3,077 $ 830 $ 600 $ 201 $ 11 $ 16,394 Allowance ending balance: Individually evaluated for impairment $ — $ — $ 1,186 $ 62 $ 20 $ — $ — $ — $ — $ 1,268 Collectively evaluated for impairment 2,057 2,135 5,703 532 3,057 830 600 201 11 15,126 Ending balance $ 2,057 $ 2,135 $ 6,889 $ 594 $ 3,077 $ 830 $ 600 $ 201 $ 11 $ 16,394 Loans: Individually evaluated for impairment $ 302 $ 1,325 $ 17,222 $ 133 $ 2,337 $ — $ — $ 64 $ — $ 21,383 Collectively evaluated for impairment 299,412 $ 255,134 564,520 60,940 404,543 58,198 53,315 18,664 330 1,715,056 Ending balance $ 299,714 $ 256,459 $ 581,742 $ 61,073 $ 406,880 $ 58,198 $ 53,315 $ 18,728 $ 330 $ 1,736,439 For the Year Ended December 31, 2018 Commercial and industrial Construction and development Commercial real estate Farmland 1-4 family residential Multi-family residential Consumer Agricultural Overdrafts Total Allowance for loan losses: Beginning balance $ 1,581 $ 1,724 $ 4,585 $ 523 $ 3,022 $ 629 $ 602 $ 187 $ 6 $ 12,859 Provision for loan losses 426 196 1,472 120 (196 ) 2 127 (12 ) 115 2,250 Loans charged-off (367 ) — (33 ) — (93 ) — (254 ) (2 ) (169 ) (918 ) Recoveries 111 — 1 — 135 — 90 65 58 460 Ending balance $ 1,751 $ 1,920 $ 6,025 $ 643 $ 2,868 $ 631 $ 565 $ 238 $ 10 $ 14,651 Allowance ending balance: Individually evaluated for impairment $ 64 $ 4 $ 341 $ 78 $ 6 $ — $ — $ — $ — $ 493 Collectively evaluated for impairment 1,687 1,916 5,684 565 2,862 631 565 238 10 14,158 Ending balance $ 1,751 $ 1,920 $ 6,025 $ 643 $ 2,868 $ 631 $ 565 $ 238 $ 10 $ 14,651 Loans: Individually evaluated for impairment $ 1,022 $ 1,250 $ 7,153 $ 140 $ 1,383 $ — $ — $ 408 $ — $ 11,356 Collectively evaluated for impairment 260,757 $ 236,253 575,366 67,705 391,684 38,386 54,777 22,869 382 1,648,179 Ending balance $ 261,779 $ 237,503 $ 582,519 $ 67,845 $ 393,067 $ 38,386 $ 54,777 $ 23,277 $ 382 $ 1,659,535 For the Nine Months Ended September 30, 2018 Commercial and industrial Construction and development Commercial real estate Farmland 1-4 family residential Multi-family residential Consumer Agricultural Overdrafts Total Allowance for loan losses: Beginning balance $ 1,581 $ 1,724 $ 4,585 $ 523 $ 3,022 $ 629 $ 602 $ 187 $ 6 $ 12,859 Provision for loan losses 138 119 1,329 100 (161 ) 41 101 (3 ) 86 1,750 Loans charged-off (66 ) — (32 ) — (19 ) — (175 ) (2 ) (117 ) (411 ) Recoveries 54 — — — 49 — 41 65 34 243 Ending balance $ 1,707 $ 1,843 $ 5,882 $ 623 $ 2,891 $ 670 $ 569 $ 247 $ 9 $ 14,441 Allowance ending balance: Individually evaluated for impairment $ 315 $ — $ 61 $ 74 $ 4 $ — $ — $ — $ — $ 454 Collectively evaluated for impairment 1,392 1,843 5,821 549 2,887 670 569 247 9 13,987 Ending balance $ 1,707 $ 1,843 $ 5,882 $ 623 $ 2,891 $ 670 $ 569 $ 247 $ 9 $ 14,441 Loans: Individually evaluated for impairment $ 1,584 $ 1,684 $ 6,360 $ 218 $ 1,571 $ — $ — $ 409 $ — $ 11,826 Collectively evaluated for impairment 247,174 $ 227,623 592,793 64,991 390,885 38,523 53,947 23,775 326 1,640,037 Ending balance $ 248,758 $ 229,307 $ 599,153 $ 65,209 $ 392,456 $ 38,523 $ 53,947 $ 24,184 $ 326 $ 1,651,863 Credit Quality The Company closely monitors economic conditions and loan performance trends to manage and evaluate the exposure to credit risk. Key factors tracked by the Company and utilized in evaluating the credit quality of the loan portfolio include trends in delinquency ratios, the level of nonperforming assets, borrower’s repayment capacity, and collateral coverage. Assets are graded “pass” when the relationship exhibits acceptable credit risk and indicates repayment ability, tolerable collateral coverage and reasonable performance history. Lending relationships exhibiting potentially significant credit risk and marginal repayment ability and/or asset protection are graded “special mention.” Assets classified as “substandard” are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness that jeopardizes the liquidation of the debt. Substandard graded loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Assets graded “doubtful” are substandard graded loans that have added characteristics that make collection or liquidation in full improbable. The Company typically measures impairment based on the present value of expected future cash flows, discounted at the loan's effective interest rate, or based on the loan's observable market price or the fair value of the collateral if the loan is collateral-dependent. The following tables summarize the credit exposure in the Company’s consumer and commercial loan portfolios as of: September 30, 2019 Commercial and industrial Construction and development Commercial real estate Farmland 1-4 family residential Multi-family residential Consumer and Overdrafts Agricultural Total Grade: Pass $ 299,358 $ 254,527 $ 561,933 $ 60,792 $ 405,635 $ 58,198 $ 53,495 $ 18,493 $ 1,712,431 Special mention 149 600 2,859 44 830 — 61 102 4,645 Substandard 207 1,332 16,950 237 415 — 89 133 19,363 Total $ 299,714 $ 256,459 $ 581,742 $ 61,073 $ 406,880 $ 58,198 $ 53,645 $ 18,728 $ 1,736,439 December 31, 2018 Commercial and industrial Construction and development Commercial real estate Farmland 1-4 family residential Multi-family residential Consumer and Overdrafts Agricultural Total Grade: Pass $ 260,863 $ 236,253 $ 569,648 $ 67,541 $ 391,956 $ 38,386 $ 55,055 $ 22,713 $ 1,642,415 Special mention 224 — 5,691 49 514 — 48 115 6,641 Substandard 692 1,250 7,180 255 597 — 56 449 10,479 Total $ 261,779 $ 237,503 $ 582,519 $ 67,845 $ 393,067 $ 38,386 $ 55,159 $ 23,277 $ 1,659,535 The following tables summarize the payment status of loans in the Company’s total loan portfolio, including an aging of delinquent loans, loans 90 days or more past due continuing to accrue interest and loans classified as nonperforming as of: September 30, 2019 30 to 59 Days Past Due 60 to 89 Days Past Due 90 Days and Greater Past Due Total Past Due Current Total Loans Recorded Investment > 90 Days and Accruing Commercial and industrial $ 664 $ 88 $ — $ 752 $ 298,962 $ 299,714 $ — Real estate: Construction and development 1,498 — 99 1,597 254,862 256,459 — Commercial real estate 1,960 278 521 2,759 578,983 581,742 — Farmland 255 — — 255 60,818 61,073 — 1-4 family residential 4,819 890 414 6,123 400,757 406,880 — Multi-family residential — — — — 58,198 58,198 — Consumer 341 81 90 512 52,803 53,315 — Agricultural 65 — — 65 18,663 18,728 — Overdrafts — — — — 330 330 — Total $ 9,602 $ 1,337 $ 1,124 $ 12,063 $ 1,724,376 $ 1,736,439 $ — December 31, 2018 30 to 59 Days Past Due 60 to 89 Days Past Due 90 Days and Greater Past Due Total Past Due Current Total Loans Recorded Investment > 90 Days and Accruing Commercial and industrial $ 209 $ 493 $ 266 $ 968 $ 260,811 $ 261,779 $ — Real estate: Construction and development 735 2,816 — 3,551 233,952 237,503 — Commercial real estate 1,803 3 3,227 5,033 577,486 582,519 — Farmland 485 — — 485 67,360 67,845 — 1-4 family residential 2,849 666 596 4,111 388,956 393,067 — Multi-family residential — — — — 38,386 38,386 — Consumer 526 51 56 633 54,144 54,777 — Agricultural 105 59 41 205 23,072 23,277 — Overdrafts — — — — 382 382 — Total $ 6,712 $ 4,088 $ 4,186 $ 14,986 $ 1,644,549 $ 1,659,535 $ — The following table presents information regarding nonaccrual loans as of: September 30, 2019 December 31, 2018 Commercial and industrial $ 15 $ 366 Real estate: Construction and development 106 — Commercial real estate 6,966 3,700 Farmland 133 140 1-4 family residential 3,403 1,567 Consumer 214 66 Agricultural 44 52 Total $ 10,881 $ 5,891 Impaired Loans and Troubled Debt Restructurings A troubled debt restructuring (“TDR”) is a restructuring in which a bank, for economic or legal reasons related to a borrower's financial difficulties, grants a concession to the borrower that it would not otherwise consider. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due from the borrower in accordance with original contractual terms of the loan. Loans with insignificant delays or insignificant short falls in the amount of payments expected to be collected are not considered to be impaired. Loans defined as individually impaired, based on applicable accounting guidance, include larger balance nonperforming loans and TDRs. The outstanding balances of TDRs are shown below: September 30, 2019 December 31, 2018 Nonaccrual TDRs $ 118 $ 335 Performing TDRs 7,297 861 Total $ 7,415 $ 1,196 Specific reserves on TDRs $ 184 $ — The following tables present loans by class, modified as TDRs, that occurred during the nine months ended September 30, 2019, the twelve months ended December 31, 2018 and the nine months ended September 30, 2018: Nine Months Ended September 30, 2019 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: Commercial real estate 4 $ 1,680 $ 1,515 Total 4 $ 1,680 $ 1,515 There were no TDRs that subsequently defaulted through September 30, 2019. Year Ended December 31, 2018 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: Commercial and industrial 3 $ 504 $ 504 1-4 family residential 1 78 78 Total 4 $ 582 $ 582 There was one TDR that subsequently defaulted, therefore remained on nonaccrual status as of December 31, 2018. The TDRs described above did not increase the allowance for loan losses and resulted in no charge-offs during the year ended December 31, 2018. Nine Months Ended September 30, 2018 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: 1-4 family residential 1 $ 15 $ 15 Farmland 1 78 78 Total 2 $ 93 $ 93 There were no TDRs that subsequently defaulted through September 30, 2018. The TDRs described above did not increase the allowance for loan losses and resulted in no charge-offs during the nine months ended September 30, 2018. The following table presents information about the Company’s impaired loans as of: September 30, 2019 Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment With no related allowance recorded: Commercial and industrial $ 302 $ 302 $ — $ 239 Real estate: Construction and development 1,325 1,325 — 938 Commercial real estate 3,923 3,923 — 3,115 Farmland — — — — 1-4 family residential 2,283 2,283 — 1,225 Multi-family residential — — — — Consumer — — — — Agricultural 64 64 — 175 Subtotal 7,897 7,897 — 5,692 With allowance recorded: Commercial and industrial — — — 61 Real estate: Construction and development — — — — Commercial real estate 13,299 13,299 1,186 5,892 Farmland 133 133 62 102 1-4 family residential 54 54 20 73 Multi-family residential — — — — Consumer — — — — Agricultural — — — — Subtotal 13,486 13,486 1,268 6,128 Total $ 21,383 $ 21,383 $ 1,268 $ 11,820 The following table presents information about the Company’s impaired loans as of: December 31, 2018 Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment With no related allowance recorded: Commercial and industrial $ 837 $ 837 $ — $ 842 Real estate: Construction and development 720 720 — 518 Commercial real estate 5,168 5,168 — 5,138 Farmland — — — 62 1-4 family residential 1,223 1,223 — 1,132 Multi-family residential — — — 54 Consumer — — — — Agricultural 408 408 — 456 Subtotal 8,356 8,356 — 8,202 With allowance recorded: Commercial and industrial 185 185 64 300 Real estate: Construction and development 530 530 4 44 Commercial real estate 1,985 1,985 341 677 Farmland 140 140 78 147 1-4 family residential 160 160 6 128 Multi-family residential — — — — Consumer — — — — Agricultural — — — 52 Subtotal 3,000 3,000 493 1,348 Total $ 11,356 $ 11,356 $ 493 $ 9,550 During the nine months ended September 30, 2019 and 2018, total interest income and cash-based interest income recognized on impaired loans was minimal. |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER DEBT | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER DEBT | NOTE 5 - SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER DEBT At September 30, 2019 and December 31, 2018, securities sold under agreements to repurchase totaled $11,363 and $12,228, respectively. The Company has a $25,000 revolving line of credit, which had no outstanding balance at quarter end, bears interest at the prime rate, with interest payable quarterly, and matures in March 2020. Federal Home Loan Bank (FHLB) advances as of September 30, 2019 , were as follows: Fixed rate advances, with monthly interest payments, principal due in: Year Current Weighted Average Rate Principal Due 2019 1.83 % $ 45,000 2020 2.09 % 6,500 2021 1.87 % 1,500 2022 1.99 % 1,500 2023 — — Thereafter 1.76 % 6,000 60,500 Fixed rate advances, with monthly principal and interest payments, principal due in: Year Current Weighted Average Rate 2021 1.38 % 123 $ 60,623 NOTE 6 - SUBORDINATED DEBENTURES Subordinated debentures are made up of the following as of: September 30, 2019 December 31, 2018 Trust II Debentures $ 3,093 $ 3,093 Trust III Debentures 2,062 2,062 DCB Trust I Debentures 5,155 5,155 Other debentures 1,000 2,500 $ 11,310 $ 12,810 The Company has three trusts, Guaranty (TX) Capital Trust II (“Trust II”), Guaranty (TX) Capital Trust III (“Trust III”), and DCB Financial Trust I (“DCB Trust I”) (“Trust II”, “Trust III” and together with “DCB Trust I,” the “Trusts”). Upon formation, the Trusts issued pass-through securities (“TruPS”) with a liquidation value of $1,000 per share to third parties in private placements. Concurrently with the issuance of the TruPS, the Trusts issued common securities to the Company. The Trusts invested the proceeds of the sales of securities to the Company (“Debentures”). The Debentures mature approximately 30 years after the formation date, which may be shortened if certain conditions are met (including the Company having received prior approval of the Federal Reserve and any other required regulatory approvals). Trust II Trust III DCB Trust I Formation date October 30, 2002 July 25, 2006 March 29, 2007 Capital trust pass-through securities Number of shares 3,000 2,000 5,000 Original liquidation value $ 3,000 $ 2,000 $ 5,000 Common securities liquidation value 93 62 155 The securities held by the Trusts qualify as Tier 1 capital for the Company under Federal Reserve Board guidelines. The Federal Reserve’s guidelines restrict core capital elements (including trust preferred securities and qualifying perpetual preferred stock) to 25% of all core capital elements, net of goodwill less any associated deferred tax liability. Because the Company’s aggregate amount of trust preferred securities is less than the limit of 25% of Tier 1 capital, net of goodwill, the full amount is includable in Tier 1 capital at September 30, 2019 and December 31, 2018 . Additionally, the terms provide that trust preferred securities would no longer qualify for Tier 1 capital within five years of their maturity, but would be included as Tier 2 capital. However, the trust preferred securities would be amortized out of Tier 2 capital by one-fifth each year and excluded from Tier 2 capital completely during the year prior to maturity of the junior subordinated debentures. With certain exceptions, the amount of the principal and any accrued and unpaid interest on the Debentures are subordinated in right of payment to the prior payment in full of all senior indebtedness of the Company. Interest on the Debentures is payable quarterly. The interest is deferrable on a cumulative basis for up to five consecutive years following a suspension of dividend payments on all other capital stock. No principal payments are due until maturity for each of the Debentures. Trust II Debentures Trust III Debentures DCB Trust I Debentures Original amount $ 3,093 $ 2,062 $ 5,155 Maturity date October 30, 2032 October 1, 2036 June 15, 2037 Interest due Quarterly Quarterly Quarterly In accordance with ASC 810, " Consolidation, Trust II Debentures Interest is payable at a variable rate per annum, reset quarterly, equal to 3 month LIBOR plus 3.35%. On any interest payment date on or after October 30, 2012 and prior to maturity date, the debentures are redeemable for cash at the option of the Company, on at least 30, but not more than 60 days’ notice, in whole or in part, at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued interest to the date of redemption. Trust III Debentures Interest is payable at a variable rate per annum, reset quarterly, equal to 3 month LIBOR plus 1.67%. On any interest payment date on or after October 1, 2016 and prior to maturity date, the debentures are redeemable for cash at the option of the Company, on at least 30, but not more than 60 days’ notice, in whole or in part, at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued interest to the date of redemption. DCB Trust I Debentures Interest is payable at a variable rate per annum, reset quarterly, equal to 3 month LIBOR plus 1.80%. On any interest payment date on or after June 15, 2012 and prior to maturity date, the debentures are redeemable for cash at the option of the Company, on at least 30, but not more than 60 days’ notice, in whole or in part, at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued interest to the date of redemption. Other Debentures In July 2015, the Company issued $4,000 in debentures, of which $3,000 were issued to directors and other related parties. The $3,000 of debentures to related parties were repaid in May 2017 and a $500 par value debenture, which carried a rate of 2.5%, matured and was repaid in July 2017. The remaining $500 debenture, which carried a rate of 4.00%, matured and was repaid in January 2019. In December 2015, the Company issued $5,000 in debentures, of which $2,500 were issued to directors and other related parties. In May 2017, $2,000 of the related party debentures were repaid with a portion of the proceeds of Guaranty’s initial public offering. A further $1,000 of other debentures matured and were paid off in full in July of 2018 and another $1,000 of debentures matured and were paid off in full in July of the current year. The remaining $1,000 of debentures were issued at par value of $500 each with rates of 4.50% and 5.00% and maturity dates of January 1, 2020 and July 1, 2020, respectively. At the Company’s option, and with 30 days advanced notice to the holder, the entire principal amount and all accrued interest may be paid to the holder on or before the due date of any debenture. The redemption price is equal to 100 % of the face amount of the debenture rede emed, plus all accrued interest. |
SUBORDINATED DEBENTURES
SUBORDINATED DEBENTURES | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER DEBT | NOTE 5 - SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER DEBT At September 30, 2019 and December 31, 2018, securities sold under agreements to repurchase totaled $11,363 and $12,228, respectively. The Company has a $25,000 revolving line of credit, which had no outstanding balance at quarter end, bears interest at the prime rate, with interest payable quarterly, and matures in March 2020. Federal Home Loan Bank (FHLB) advances as of September 30, 2019 , were as follows: Fixed rate advances, with monthly interest payments, principal due in: Year Current Weighted Average Rate Principal Due 2019 1.83 % $ 45,000 2020 2.09 % 6,500 2021 1.87 % 1,500 2022 1.99 % 1,500 2023 — — Thereafter 1.76 % 6,000 60,500 Fixed rate advances, with monthly principal and interest payments, principal due in: Year Current Weighted Average Rate 2021 1.38 % 123 $ 60,623 NOTE 6 - SUBORDINATED DEBENTURES Subordinated debentures are made up of the following as of: September 30, 2019 December 31, 2018 Trust II Debentures $ 3,093 $ 3,093 Trust III Debentures 2,062 2,062 DCB Trust I Debentures 5,155 5,155 Other debentures 1,000 2,500 $ 11,310 $ 12,810 The Company has three trusts, Guaranty (TX) Capital Trust II (“Trust II”), Guaranty (TX) Capital Trust III (“Trust III”), and DCB Financial Trust I (“DCB Trust I”) (“Trust II”, “Trust III” and together with “DCB Trust I,” the “Trusts”). Upon formation, the Trusts issued pass-through securities (“TruPS”) with a liquidation value of $1,000 per share to third parties in private placements. Concurrently with the issuance of the TruPS, the Trusts issued common securities to the Company. The Trusts invested the proceeds of the sales of securities to the Company (“Debentures”). The Debentures mature approximately 30 years after the formation date, which may be shortened if certain conditions are met (including the Company having received prior approval of the Federal Reserve and any other required regulatory approvals). Trust II Trust III DCB Trust I Formation date October 30, 2002 July 25, 2006 March 29, 2007 Capital trust pass-through securities Number of shares 3,000 2,000 5,000 Original liquidation value $ 3,000 $ 2,000 $ 5,000 Common securities liquidation value 93 62 155 The securities held by the Trusts qualify as Tier 1 capital for the Company under Federal Reserve Board guidelines. The Federal Reserve’s guidelines restrict core capital elements (including trust preferred securities and qualifying perpetual preferred stock) to 25% of all core capital elements, net of goodwill less any associated deferred tax liability. Because the Company’s aggregate amount of trust preferred securities is less than the limit of 25% of Tier 1 capital, net of goodwill, the full amount is includable in Tier 1 capital at September 30, 2019 and December 31, 2018 . Additionally, the terms provide that trust preferred securities would no longer qualify for Tier 1 capital within five years of their maturity, but would be included as Tier 2 capital. However, the trust preferred securities would be amortized out of Tier 2 capital by one-fifth each year and excluded from Tier 2 capital completely during the year prior to maturity of the junior subordinated debentures. With certain exceptions, the amount of the principal and any accrued and unpaid interest on the Debentures are subordinated in right of payment to the prior payment in full of all senior indebtedness of the Company. Interest on the Debentures is payable quarterly. The interest is deferrable on a cumulative basis for up to five consecutive years following a suspension of dividend payments on all other capital stock. No principal payments are due until maturity for each of the Debentures. Trust II Debentures Trust III Debentures DCB Trust I Debentures Original amount $ 3,093 $ 2,062 $ 5,155 Maturity date October 30, 2032 October 1, 2036 June 15, 2037 Interest due Quarterly Quarterly Quarterly In accordance with ASC 810, " Consolidation, Trust II Debentures Interest is payable at a variable rate per annum, reset quarterly, equal to 3 month LIBOR plus 3.35%. On any interest payment date on or after October 30, 2012 and prior to maturity date, the debentures are redeemable for cash at the option of the Company, on at least 30, but not more than 60 days’ notice, in whole or in part, at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued interest to the date of redemption. Trust III Debentures Interest is payable at a variable rate per annum, reset quarterly, equal to 3 month LIBOR plus 1.67%. On any interest payment date on or after October 1, 2016 and prior to maturity date, the debentures are redeemable for cash at the option of the Company, on at least 30, but not more than 60 days’ notice, in whole or in part, at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued interest to the date of redemption. DCB Trust I Debentures Interest is payable at a variable rate per annum, reset quarterly, equal to 3 month LIBOR plus 1.80%. On any interest payment date on or after June 15, 2012 and prior to maturity date, the debentures are redeemable for cash at the option of the Company, on at least 30, but not more than 60 days’ notice, in whole or in part, at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued interest to the date of redemption. Other Debentures In July 2015, the Company issued $4,000 in debentures, of which $3,000 were issued to directors and other related parties. The $3,000 of debentures to related parties were repaid in May 2017 and a $500 par value debenture, which carried a rate of 2.5%, matured and was repaid in July 2017. The remaining $500 debenture, which carried a rate of 4.00%, matured and was repaid in January 2019. In December 2015, the Company issued $5,000 in debentures, of which $2,500 were issued to directors and other related parties. In May 2017, $2,000 of the related party debentures were repaid with a portion of the proceeds of Guaranty’s initial public offering. A further $1,000 of other debentures matured and were paid off in full in July of 2018 and another $1,000 of debentures matured and were paid off in full in July of the current year. The remaining $1,000 of debentures were issued at par value of $500 each with rates of 4.50% and 5.00% and maturity dates of January 1, 2020 and July 1, 2020, respectively. At the Company’s option, and with 30 days advanced notice to the holder, the entire principal amount and all accrued interest may be paid to the holder on or before the due date of any debenture. The redemption price is equal to 100 % of the face amount of the debenture rede emed, plus all accrued interest. |
STOCK OPTIONS
STOCK OPTIONS | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
STOCK OPTIONS | NOTE 7 - STOCK OPTIONS The Company’s 2015 Equity Incentive Plan (the “Plan”) which was adopted by the Company and approved by its shareholders in April 2015, amended and restated the Company’s 2014 Stock Option Plan. The maximum number of shares of common stock that may be issued pursuant to stock-based awards under the Plan equals 1,000,000 shares, all of which may be subject to incentive stock option treatment. Option awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant. Currently outstanding option awards have vesting periods ranging from 5 to 10 years and have 10-year contractual terms. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock and similar peer group averages. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes in to account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on U.S. Treasury yield curve in effect at the time of the grant. A summary of activity in the Plan during the nine months ended September 30, 2019 and 2018 follows: Nine Months Ended September 30, 2019 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at beginning of year 537,872 $ 26.49 6.96 $ 2,088 Granted 35,000 29.85 9.61 26 Exercised (22,172 ) 24.93 5.29 125 Forfeited (26,400 ) 29.53 8.20 46 Balance, September 30, 2019 524,300 $ 26.63 6.38 $ 2,255 Exercisable at end of period 235,680 $ 25.22 5.42 $ 1,307 Nine Months Ended September 30, 2018 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at beginning of year 469,044 $ 25.11 7.32 $ 2,623 Granted 90,000 32.59 9.72 — Exercised (6,000 ) 23.33 5.98 41 Forfeited (11,800 ) 23.41 5.74 81 Balance, September 30, 2018 541,244 $ 26.41 7.12 $ 2,320 Exercisable at end of period 171,184 $ 24.29 5.81 $ 1,024 A summary of nonvested activity in the Plan during the nine months ended September 30, 2019 and 2018 follows: Nine Months Ended September 30, 2019 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at beginning of year 331,560 $ 27.74 7.77 $ 975 Granted 35,000 29.85 9.61 26 Vested (54,340 ) 28.10 7.48 172 Forfeited (23,600 ) 33.03 9.18 46 Balance, September 30, 2019 288,620 $ 27.78 7.16 $ 949 Nine Months Ended September 30, 2018 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at beginning of year 334,400 $ 25.72 7.91 $ 1,673 Granted 90,000 32.59 9.72 — Vested (44,940 ) 26.19 8.04 199 Forfeited (9,400 ) 29.38 7.20 81 Balance, September 30, 2018 370,060 $ 27.39 7.72 $ 1,297 As of September 30, 2019, there was $2,255 of total unrecognized compensation expense related to unvested stock options granted under the Plan. The expense is expected to be recognized over a weighted-average period of 3.48 years. The Company granted options under the Plan during the first nine months of 2019 and 2018. Expense of $493 and $378 was recorded during the nine months ended September 30, 2019 and 2018, respectively. Restricted Stock Awards and Units A summary of activity in the Plan during the nine months ended September 30, 2019 and 2018 follows: Nine Months Ended September 30, 2019 Number of Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year 2,398 $ 31.57 Granted 30,500 30.25 Exercised (1,439 ) 31.57 Forfeited — — Balance, September 30, 2019 31,459 $ 29.33 Exercisable at end of period — $ — Nine Months Ended September 30, 2018 Number of Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year 2,398 $ 31.57 Granted — — Exercised — — Forfeited — — Balance, September 30, 2018 2,398 $ 31.57 Exercisable at end of period 959 $ — A summary of nonvested activity in the Plan during the nine months ended September 30, 2019 and 2018 follows: Nine Months Ended September 30, 2019 Number of Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year 1,439 $ 31.57 Granted 30,500 30.25 Vested (480 ) 31.57 Forfeited — — Balance, September 30, 2019 31,459 $ 29.33 Nine Months Ended September 30, 2018 Number of Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year 2,398 $ 31.57 Granted — — Vested (959 ) 31.57 Forfeited — — Balance, September 30, 2018 1,439 $ 31.57 Information related to the Plan is as follows for the nine months ended: September 30, 2019 September 30, 2018 Intrinsic value of options exercised $ 125 $ 41 Cash received from options exercised 553 140 Weighted average fair value of options granted 16.75 5.62 Restricted stock granted to employees typically vests over five years, but vesting periods may vary. Compensation expense for these grants will be recognized over the vesting period of the awards based on the fair value of the stock at the issue date. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 9 Months Ended |
Sep. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFITS | NOTE 8 - EMPLOYEE BENEFITS KSOP The Company maintains an Employee Stock Ownership Plan containing Section 401(k) provisions covering substantially all employees (“KSOP”). The plan provides for a matching contribution of up to 5% of a participant’s qualified compensation starting January 1, 2016. Guaranty’s total contributions accrued or paid during the nine months ended September 30, 2019 and 2018 totaled $973 and $856, respectively. Upon separation from service or other distributable event, a participant’s account under the KSOP may be distributed in kind in the form of the GNTY common shares allocated to his or her account (with the balance payable in cash), or the entire account can be liquidated and distributed in cash. As of September 30, 2019 and December 31, 2018, the number of shares held by the KSOP were 1,262,078 and 1,333,496, respectively. There were no unallocated shares to plan participants as of September 30, 2019 or as of December 31, 2018. All shares held by the KSOP were treated as outstanding at each of the respective period ends. Executive Incentive Retirement Plan The Company established a non-qualified, non-contributory executive incentive retirement plan covering a selected group of key personnel to provide benefits equal to amounts computed under an “award criteria” at various targeted salary levels as adjusted for annual earnings performance of the Company. The plan is non-funded. In connection with the Executive Incentive Retirement Plan, the Company has purchased life insurance policies on the respective officers. The cash surrender value of life insurance policies held by the Company totaled $34,280 and $26,301 as of September 30, 2019 and December 31, 2018, respectively. Expense related to these plans totaled $504 and $419 for the nine months ended September 30, 2019 and 2018, respectively, and $502 for the year ended December 31, 2018. This expense is included in employee compensation and benefits on the Company’s consolidated statements of earnings. The recorded liability totaled approximately $4,023 and $3,667 as of September 30, 2019 and December 31, 2018, respectively and is included in accrued interest and other liabilities on the Company’s consolidated balance sheets. Bonus Plan The Company has a bonus plan that rewards officers and employees based on performance of individual business units of the Company. Earnings and growth performance goals for each business unit and for the Company as a whole are established at the beginning of the calendar year and approved annually by Guaranty’s board of directors. The bonus plan provides for a predetermined bonus amount to be contributed to the employee bonus pool based on (i) earnings target and growth for individual business units and (ii) achieving certain pre-tax return on average equity and pre-tax return on average asset levels for the Company as a whole. These bonus amounts are established annually by Guaranty’s board of directors. The bonus expense under this plan for the nine months ended September 30, 2019 and 2018 totaled $2,304 and $2,170, respectively, and $2,943 for the year ended December 31, 2018. This expense is included in employee compensation and benefits on the consolidated statements of earnings. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
LEASES | NOTE 9 – LEASES The Company has operating leases for bank locations, ATMs, corporate offices, and certain other arrangements, which have remaining lease terms of 1 year to 15 years. Some of the Company’s operating leases include options to extend the leases for up to 5 years. Operating leases in which we are the lessee must be recorded as right-of-use assets with corresponding lease liabilities. The right-of-use asset represents our right to utilize the underlying asset during the lease term, while the lease liability represents the obligation of the Company to make periodic lease payments over the life of the lease. The associated operating lease costs are comprised of the amortization of the right-of-use asset and the implicit interest accreted on the lease liability, which is recognized on a straight-line basis over the life of the lease. As of September 30, 2019, operating lease right-of-use assets and liabilities were both $11.4 million. Operating lease expense for operating leases accounted for under ASC 842 for the nine months ended September 30, 2019 was approximately $1,306, and is included as a component of occupancy expenses within the accompanying consolidated statements of earnings. The table below summarizes other information related to our operating leases: As of September 30, 2019 Operating leases Operating lease right-of-use assets $ 11,360 Operating lease liabilities 11,433 Weighted average remaining lease term Operating leases 10 years Weighted average discount rate Operating leases 2.74 % The Company leases some of its banking facilities under non-cancelable operating leases expiring in various years through 2023 and thereafter. Minimum future lease payments under these non-cancelable operating leases in excess of one year as of September 30, 2019, are as follows: 2019 $ 444 2020 1,536 2021 1,340 2022 1,229 2023 1,219 Thereafter 7,340 Total lease payments 13,108 Less: interest (1,675 ) Present value of lease liabilities $ 11,433 As of September 30, 2019, the Company has no additional operating leases commencing subsequent to the quarter end date. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 10 - INCOME TAXES Tax Cuts and Jobs Act The Tax Cuts and Jobs Act was enacted on December 22, 2017. Among other things, the new law (i) establishes a new, flat corporate federal statutory income tax rate of 21%, (ii) eliminates the corporate alternative minimum tax and allows the use of any such carryforwards to offset regular tax liability for any taxable year, (iii) limits the deduction for net interest expense incurred by U.S. corporations, (iv) allows businesses to immediately expense, for tax purposes, the cost of new investments in certain qualified depreciable assets, (v) eliminates or reduces certain deductions related to meals and entertainment expenses, (vi) modifies the limitation on excessive employee remuneration to eliminate the exception for performance-based compensation and clarifies the definition of a covered employee and (vii) limits the deductibility of deposit insurance premiums. The Tax Cuts and Jobs Act also significantly changes U.S. tax law related to foreign operations; however, such changes do not currently impact us. As stated above, as a result of the enactment of the Tax Cuts and Jobs Act on December 22, 2017, we remeasured our deferred tax assets and liabilities based upon the newly enacted U.S. statutory federal income tax rate of 21%, which is the tax rate at which these assets and liabilities are expected to reverse in the future. Notwithstanding the foregoing, we are still analyzing certain aspects of the new law and refining our calculations, which could affect the measurement of these assets and liabilities or give rise to new deferred tax amounts. Income tax expense was as follows for: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Income tax expense for the period $ 1,634 $ 1,160 $ 4,205 $ 3,126 Effective tax rate 17.83 % 18.56 % 18.19 % 18.16 % The effective tax rates differ from the statutory federal tax rate of 21% |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 11 - DERIVATIVE FINANCIAL INSTRUMENTS The Company utilizes certain derivative financial instruments. Stand-alone derivative financial instruments such as interest rate swaps, are used to economically hedge interest rate risk related to the Company’s liabilities. These derivative instruments involve both credit and market risk. The notional amounts are amounts on which calculations, payments, and the value of the derivative are based. Notional amounts do not represent direct credit exposures. Direct credit exposure is limited to the net difference between the calculated amounts to be received and paid, if any. Such difference, which represents the fair value of the derivative instruments, is reflected on the Company’s consolidated balance sheet in other liabilities. The Company is exposed to credit related losses in the event of nonperformance by the counterparties to those agreements. The Company controls the credit risk of its financial contracts through credit approvals, limits and monitoring procedures, and does not expect any counterparties to fail to perform their respective obligations. The Company entered into interest rate swaps to receive payments at a fixed rate in exchange for paying a floating rate on the debentures discussed in Note 6. Management believes that entering into the interest rate swaps exposed the Company to variability in their fair value due to changes in the level of interest rates. It is the Company’s objective to hedge the change in fair value of floating rate debentures at coverage levels that are appropriate, given anticipated or existing interest rate levels and other market considerations, as well as the relationship of change in this liability to other liabilities of the Company. To meet this objective, the Company utilizes interest rate swaps as an asset/liability management strategy to hedge the change in value of the cash flows due to changes in expected interest rate assumptions. Interest rate swaps with notional amounts totaling $5,000 as of September 30, 2019 and December 31, 2018, were designated as cash flow hedges of the debentures and were determined to be fully effective during all periods presented. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swaps is recorded in accrued interest and other liabilities within the Company’s consolidated balance sheets with changes in fair value recorded in other comprehensive income. The amount included in accumulated other comprehensive income would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining terms of the swaps. The information pertaining to outstanding interest rate swap agreements used to hedge floating rate debentures was as follows as of: September 30, 2019 Notional Amount Pay Rate Receive Rate Effective Date Maturity in Years Unrealized Losses $ 2,000 5.979 % 3 month LIBOR plus 1.67% 10/1/2016 6.50 $ 356 $ 3,000 7.505 % 3 month LIBOR plus 3.35% 10/30/2012 3.08 $ 240 December 31, 2018 Notional Amount Pay Rate Receive Rate Effective Date Maturity in Years Unrealized Losses $ 2,000 5.979 % 3 month LIBOR plus 1.67% 10/1/2016 7.25 $ 220 $ 3,000 7.505 % 3 month LIBOR plus 3.35% 10/30/2012 3.83 $ 173 Interest expense recorded on these swap transactions totaled $495 and $516 during the nine months ended September 30, 2019 and 2018, respectively, and $687 for the year ended December 31, 2018. This expense is reported as a component of interest expense on the debentures. At September 30, 2019, the Company expected none of the unrealized loss to be reclassified as a reduction of interest expense during the remainder of 2019. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 12 - COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company enters into various transactions, which, in accordance with GAAP, are not included in its consolidated balance sheets. These transactions are referred to as “off-balance sheet commitments.” The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and letters of credit, which involve elements of credit risk in excess of the amounts recognized in the consolidated balance sheets. The Company minimizes its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures. The Company enters into contractual commitments to extend credit, normally with fixed expiration dates or termination clauses, at specified rates and for specific purposes. Customers use credit commitments to ensure that funds will be available for working capital purposes, for capital expenditures and to ensure access to funds at specified terms and conditions. Substantially all of the Company’s commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of loan funding. Management assesses the credit risk associated with certain commitments to extend credit in determining the level of the allowance for credit losses. Letters of credit are written conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The Company’s policies generally require that letters of credit arrangements contain security and debt covenants similar to those contained in loan agreements. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount shown in the table below. If the commitment were funded, the Company would be entitled to seek recovery from the customer. As of September 30, 2019 and December 31, 2018, no amounts have been recorded as liabilities for the Bank’s potential obligations under these guarantees. Commitments and letters of credit outstanding were as follows as of: Contract or Notional Amount September 30, 2019 December 31, 2018 Commitments to extend credit $ 381,699 $ 342,523 Letters of credit 9,069 11,675 Litigation The Company is involved in certain claims and lawsuits occurring in the normal course of business. Management, after consultation with legal counsel, does not believe that the outcome of these actions, if determined adversely, would have a material impact on the consolidated financial statements of the Company. FHLB Letters of Credit At September 30, 2019, the Company had letters of credit of $2,000 pledged to secure public deposits, repurchase agreements, and for other purposes required or permitted by law. |
REGULATORY MATTERS
REGULATORY MATTERS | 9 Months Ended |
Sep. 30, 2019 | |
Banking And Thrift [Abstract] | |
REGULATORY MATTERS | NOTE 13 - REGULATORY MATTERS The Company on a consolidated basis and the Bank are subject to various regulatory capital requirements administered by 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 financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Basel III Capital Rules, a comprehensive capital framework for U.S. banking organizations, became effective for the Company and Bank on January 1, 2015, with certain transition provisions that were fully phased in on January 1, 2019. Quantitative measures established by the Basel III Capital Rules to ensure capital adequacy require the maintenance of minimum amounts and ratios (set forth in the table below) of Common Equity Tier 1 capital, Tier 1 capital and Total capital (as defined in the regulations) to risk-weighted assets (as defined), and or Tier 1 capital to adjusted quarterly average assets (as defined). Management believes, as of September 30, 2019 and December 31, 2018 that the Bank met all capital adequacy requirements to which it was subject. The Basel III Capital Rules, among other things, have (i) introduced a new capital measure called “Common Equity Tier I” (“CETI”), (ii) specified that Tier I capital consist of CETI and “Additional Tier I Capital” instruments meeting specified requirements, (iii) defined CETI narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to CETI and not to the other components of capital and (iv) expanded the scope of the deductions/adjustments as compared to existing regulations. Starting in January 2016, the implementation of the capital conservation buffer was effective for the Company starting at the 0.625% level and increasing 0.625% each year thereafter, until it reached 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. As of September 30, 2019 and December 31, 2018, the Company’s capital ratios exceeded those levels necessary to be categorized as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized”, the Company must maintain minimum total risk-based, CETI, Tier 1 risk-based and Tier I leverage ratios as set forth in the table. There are no conditions or events since September 30, 2019 that management believes have changed the Company’s category. The Federal Reserve’s guidelines regarding the capital treatment of trust preferred securities limits restricted core capital elements (including trust preferred securities and qualifying perpetual preferred stock) to 25% of all core capital elements, net of goodwill less any associated deferred tax liability. Because the Company’s aggregate amount of trust preferred securities is less than the limit of 25% of Tier I capital, net of goodwill, the rules permit the inclusion of $10,310 of trust preferred securities in Tier I capital at September 30, 2019 and December 31, 2018. Additionally, the rules provide that trust preferred securities would no longer qualify for Tier I capital within five years of their maturity, but would be included as Tier 2 capital. However, the trust preferred securities would be amortized out of Tier 2 capital by one-fifth each year and excluded from Tier 2 capital completely during the year prior to maturity of the subordinated debentures. A comparison of the Company’s and Bank’s actual capital amounts and ratios to required capital amounts and ratios are presented in the following tables as of: Actual Minimum Required For Capital Adequacy Purposes Minimum Required Under Basel III Fully Phased-In To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio September 30, 2019 Total capital to risk-weighted assets: Consolidated $ 248,009 13.22 % $ 150,082 8.00 % $ 196,983 10.50 % n/a Bank 246,851 12.89 % 153,230 8.00 % 201,114 10.50 % $ 191,537 10.00 % Tier 1 capital to risk-weighted assets: Consolidated 231,615 12.35 % 112,562 6.00 % 159,462 8.50 % n/a Bank 230,457 12.03 % 114,922 6.00 % 162,807 8.50 % 153,230 8.00 % Tier 1 capital to average assets: (1) Consolidated 231,615 10.16 % 91,205 4.00 % 91,205 4.00 % n/a Bank 230,457 10.04 % 91,784 4.00 % 91,784 4.00 % 114,730 5.00 % Common equity tier 1 capital to risk-weighted assets: Consolidated 221,305 11.80 % 84,421 4.50 % 131,322 7.00 % n/a Bank 230,457 12.03 % 86,192 4.50 % 134,076 7.00 % 124,499 6.50 % (1) The Tier 1 capital ratio (to average assets) is not impacted by the Basel III Capital Rules; however, the Federal Reserve Board and the FDIC may require the Consolidated Company and the Bank, respectively, to maintain a Tier 1 capital ratio (to average assets) above the required minimum. Actual Minimum Required For Capital Adequacy Purposes Minimum Required Under Basel III Fully Phased-In To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Total capital to risk-weighted assets: Consolidated $ 241,791 13.25 % $ 146,020 8.00 % $ 191,651 10.50 % n/a Bank 242,142 13.27 % 146,015 8.00 % 191,645 10.50 % $ 182,519 10.00 % Tier 1 capital to risk-weighted assets: Consolidated 227,140 12.44 % 109,515 6.00 % 155,146 8.50 % n/a Bank 227,491 12.46 % 109,511 6.00 % 155,141 8.50 % 146,015 8.00 % Tier 1 capital to average assets: Consolidated 227,140 10.16 % 89,422 4.00 % 89,422 4.00 % n/a Bank 227,491 10.18 % 89,414 4.00 % 89,414 4.00 % 111,768 5.00 % Common equity tier 1 capital to risk-weighted assets: Consolidated 216,830 11.88 % 82,136 4.50 % 127,768 7.00 % n/a Bank 227,491 12.46 % 82,134 4.50 % 127,763 7.00 % 118,637 6.50 % Dividends paid by Guaranty are mainly provided by dividends from its subsidiaries. However, certain regulatory restrictions exist regarding the ability of its bank subsidiary to transfer funds to Guaranty in the form of cash dividends, loans or advances. The amount of dividends that a subsidiary bank organized as a national banking association, such as the Bank, may declare in a calendar year is the subsidiary bank’s net profits for that year combined with its retained net profits for the preceding two years. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | NOTE 14 - FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 - Significant other 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. Level 3 - Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Marketable Securities: The fair values for marketable securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Loans Held For Sale: Loans held for sale are carried at the lower of cost or fair value, which is evaluated on a pool-level basis. The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan or other observable market data, such as outstanding commitments from third party investors (Level 2). Derivative Instruments : The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). Impaired Loans: The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on the present value of estimated future cash flows using the loan's existing rate or, if repayment is expected solely from the collateral, the fair value of collateral, less costs to sell. The fair value of real estate collateral is determined using recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant (Level 3). Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business (Level 3). Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Other Real Estate Owned: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly (Level 3). The following tables summarize quantitative disclosures about the fair value measurements for each category of financial assets (liabilities) carried at fair value: As of September 30, 2019 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Assets (liabilities) at fair value on a recurring basis: Available for sale securities: Mortgage-backed securities $ 88,067 $ — $ 88,067 $ — Collateralized mortgage obligations 96,786 — 96,786 — Municipal securities 16,273 — 16,273 — Corporate bonds 20,219 — 20,219 — Loans held for sale 3,841 — — 3,841 Cash surrender value of life insurance 34,280 — 34,280 — SBA servicing assets 706 — — 706 Derivative instrument assets 596 — 596 — Derivative instrument liabilities (596 ) — (596 ) — Assets at fair value on a nonrecurring basis: Impaired loans 20,115 — — 20,115 Other real estate owned 551 — — 551 As of December 31, 2018 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Assets (liabilities) at fair value on a recurring basis: Available for sale securities: Mortgage-backed securities $ 89,459 $ — $ 89,459 $ — Collateralized mortgage obligations 108,969 — 108,969 — Municipal securities 15,593 — 15,593 — Corporate bonds 18,954 — 18,954 — Derivative instruments (392 ) — (392 ) — Assets at fair value on a nonrecurring basis: Impaired loans 10,863 — — 10,863 Other real estate owned 751 — — 751 There were no transfers between Level 2 and Level 3 during the nine months ended September 30, 2019 or for the year ended December 31, 2018. Nonfinancial Assets and Nonfinancial Liabilities Nonfinancial assets measured at fair value on a nonrecurring basis during the nine months ended September 30, 2019 and 2018 include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for loan losses and certain foreclosed assets which, subsequent to their initial recognition, were remeasured at fair value through a write-down included in current earnings. The fair value of a foreclosed asset is estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria. The following table presents foreclosed assets that were remeasured and recorded at fair value as of: September 30, 2019 December 31, 2018 September 30, 2018 Other real estate owned remeasured at initial recognition: Carrying value of other real estate owned prior to remeasurement $ 137 $ 542 $ 180 Charge-offs recognized in the allowance for loan losses (9 ) (25 ) (23 ) Fair value of other real estate owned remeasured at initial recognition $ 128 $ 517 $ 157 Other real estate owned remeasured subsequent to initial recognition: Carrying value of other real estate owned prior to remeasurement $ — $ 599 $ 599 Write-downs included in collection and other real estate owned expense — (56 ) (56 ) Fair value of other real estate owned remeasured subsequent to initial recognition $ — $ 543 $ 543 The following tables present quantitative information about nonrecurring Level 3 fair value measurements as of: Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) September 30, 2019 Impaired loans $ 20,115 Fair value of collateral - sales comparison approach Selling costs or other normal adjustments: Real estate Equipment 10%-20% (16%) 10%-20% (12%) Other real estate owned $ 551 Appraisal value of collateral Selling costs or other normal adjustments 10%-20% (16%) . Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) December 31, 2018 Impaired loans $ 10,863 Fair value of collateral - sales comparison approach Selling costs or other normal adjustments: Real estate Equipment 10%-20% (16%) 10%-20% (19%) Other real estate owned $ 751 Appraisal value of collateral Selling costs or other normal adjustments 10%-20% (16%) The carrying amounts and estimated fair values of financial instruments not previously discussed in this note, as of September 30, 2019 and December 31, 2018, are as follows: Fair value measurements as of September 30, 2019 using: Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Financial assets: Cash, due from banks, federal funds sold and interest-bearing deposits $ 58,648 $ 58,648 $ — $ — $ 58,648 Marketable securities held to maturity 156,925 — 162,165 — 162,165 Loans, net 1,720,595 — — 1,719,467 1,719,467 Accrued interest receivable 7,825 — 7,825 — 7,825 Nonmarketable equity securities 11,644 — 11,644 — 11,644 Cash surrender value of life insurance 34,280 — 34,280 — 34,280 Financial liabilities: Deposits $ 1,963,313 $ 1,432,490 $ 534,075 $ — $ 1,966,565 Securities sold under repurchase agreements 11,363 — 11,363 — 11,363 Accrued interest payable 1,719 — 1,719 — 1,719 Federal Home Loan Bank advances 60,623 — 60,634 — 60,634 Subordinated debentures 11,310 — 9,153 — 9,153 Fair value measurements as of December 31, 2018 using: Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Financial assets: Cash, due from banks, federal funds sold and interest-bearing deposits $ 71,510 $ 71,510 $ — $ — $ 71,510 Marketable securities held to maturity 163,164 — 162,800 — 162,800 Loans, net 1,645,444 — — 1,630,600 1,630,600 Accrued interest receivable 9,292 — 9,292 — 9,292 Nonmarketable equity securities 14,937 — 14,937 — 14,937 Cash surrender value of life insurance 26,301 — 26,301 — 26,301 Financial liabilities: Deposits $ 1,871,480 $ 1,435,985 $ 434,647 $ — $ 1,870,632 Securities sold under repurchase agreements 12,228 — 12,228 — 12,228 Accrued interest payable 1,651 — 1,651 — 1,651 Federal Home Loan Bank advances 115,136 — 114,934 — 114,934 Subordinated debentures 12,810 — 10,724 — 10,724 The methods and assumptions, not previously presented, used to estimate fair values are described as follows: Cash and Cash Equivalents The carrying amounts of cash and short-term instruments approximate fair values (Level 1). Loans, net The fair value of fixed-rate loans and variable-rate loans that reprice on an infrequent basis is estimated by discounting future cash flows using the current interest rates at which similar loans with similar terms would be made to borrowers of similar credit quality (Level 3). Cash Surrender Value of Life Insurance The carrying amounts of bank-owned life insurance approximate their fair value. Nonmarketable Equity Securities It is not practical to determine the fair value of Independent Bankers Financial Corporation, Federal Home Loan Bank, Federal Reserve Bank and other stock due to restrictions placed on its transferability. Deposits and Securities Sold Under Repurchase Agreements The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) (Level 1). The fair values of deposit liabilities with defined maturities are estimated by discounting future cash flows using interest rates currently offered for deposits of similar remaining maturities (Level 2). Other Borrowings The fair value of borrowings, consisting of lines of credit, Federal Home Loan Bank advances and Subordinated debentures is estimated by discounting future cash flows using currently available rates for similar financing (Level 2). Accrued Interest Receivable/Payable The carrying amounts of accrued interest approximate their fair values (Level 2). Off-balance Sheet Instruments Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 15 - EARNINGS PER SHARE Basic earnings per share is computed by dividing net earnings available to common shareholders by the weighted-average common shares outstanding for the period. Diluted earnings per share reflects the maximum potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and would then share in the net earnings of the Company. Dilutive share equivalents include stock-based awards issued to employees. Stock options granted by the Company are treated as potential shares in computing earnings per share. Diluted shares outstanding include the dilutive effect of in-the-money awards which is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount that the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax impact that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. The computations of basic and diluted earnings per share for the Company were as follows for the: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net earnings (basic) $ 7,530 $ 5,091 $ 18,910 $ 14,084 Net earnings (diluted) $ 7,530 $ 5,091 $ 18,910 $ 14,084 Denominator: Weighted-average shares outstanding (basic) 11,550,335 11,962,654 11,674,298 11,452,968 Effect of dilutive securities: Common stock equivalent shares from stock options 62,538 70,780 58,844 100,539 Weighted-average shares outstanding (diluted) 11,612,873 12,033,434 11,733,142 11,553,507 Net earnings per share Basic $ 0.65 $ 0.43 $ 1.62 $ 1.23 Diluted $ 0.65 $ 0.42 $ 1.62 $ 1.22 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation : The consolidated financial statements in this Quarterly Report on Form 10-Q (this “Report”) include the accounts of Guaranty, the Bank, and their respective other direct and indirect subsidiaries and any other entities in which Guaranty has a controlling interest. The Bank has six wholly-owned non-bank subsidiaries, Guaranty Company, Inc., G B COM, INC., 2800 South Texas Avenue LLC, Pin Oak Realty Holdings, Inc., Pin Oak Energy Holdings, LLC and White Oak Aviation, LLC. All significant intercompany balances and transactions have been eliminated in consolidation. The accounting and financial reporting policies followed by the Company conform, in all material respects, to accounting principles generally accepted in the United States of America (“GAAP”) and to general practices within the financial services industry. The consolidated financial statements in this Report have not been audited by an independent registered public accounting firm, but in the opinion of management, reflect all adjustments necessary for a fair presentation of the Company’s financial position and results of operations. All such adjustments were of a normal and recurring nature. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s consolidated financial statements, and notes thereto, for the year ended December 31, 2018, included in Guaranty’s Annual Report on Form 10-K for the year ended December 31, 2018. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. All dollar amounts referenced and discussed in the notes to the consolidated financial statements in this Report are presented in thousands, unless noted otherwise. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions may also affect 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 these estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements : In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which sets forth a "current expected credit loss" ("CECL") model requiring the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. For public companies, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company expects that the transition will result in an increase to the allowance for loan losses upon adoption on January 1, 2020, although we are not yet prepared to disclosure the magnitude of the expected increase. The Company’s transition team has run parallel models for calculating the expected losses using various forecasts and qualitative factor adjustments, beginning in January 2019, to gain a comprehensive understanding of the impact that CECL and its underlying assumptions will have on the allowance upon adoption and through future periods. Documentation and model assumptions will continue to be refined during the fourth quarter of 2019. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | The following table summarizes the consideration paid for Westbound: Consideration: Westbound Cash $ 6,423 Equity instruments 29,568 Fair value of total consideration transferred $ 35,991 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition, June 1, 2018. Westbound Cash and due from banks $ 24,927 Investment securities available for sale 15,264 Loans, net of discount 154,687 Accrued interest receivable 651 Premises and equipment 8,625 Core deposit intangible 2,700 Other assets 9,205 Total assets acquired 216,059 Non-interest bearing deposits 40,595 Interest bearing deposits 140,826 Federal Home Loan Bank advances 10,500 Accrued interest and other liabilities 1,565 Total liabilities assumed 193,486 Net assets acquired 22,573 Total consideration paid 35,991 Goodwill $ 13,418 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Value of Available for Sale and Held to Maturity Securities | The following tables summarize the amortized cost and fair value of securities available for sale and securities held to maturity as of September 30, 2019 and December 31, 2018 and the corresponding amounts of gross unrealized gains and losses: September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Corporate bonds $ 19,686 $ 533 $ — $ 20,219 Municipal securities 15,670 603 — 16,273 Mortgage-backed securities 87,946 676 555 88,067 Collateralized mortgage obligations 95,297 1,522 33 96,786 Total available for sale $ 218,599 $ 3,334 $ 588 $ 221,345 Held to maturity: Municipal securities $ 138,876 $ 4,985 $ 8 $ 143,853 Mortgage-backed securities 15,119 188 43 15,264 Collateralized mortgage obligations 2,930 118 — 3,048 Total held to maturity $ 156,925 $ 5,291 $ 51 $ 162,165 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Corporate bonds $ 19,743 $ — $ 789 $ 18,954 Municipal securities 15,778 75 260 15,593 Mortgage-backed securities 93,083 52 3,676 89,459 Collateralized mortgage obligations 111,341 — 2,372 108,969 Total available for sale $ 239,945 $ 127 $ 7,097 $ 232,975 Held to maturity: Municipal securities $ 141,942 $ 1,156 $ 1,094 $ 142,004 Mortgage-backed securities 17,163 54 500 16,717 Collateralized mortgage obligations 4,059 48 28 4,079 Total held to maturity $ 163,164 $ 1,258 $ 1,622 $ 162,800 |
Schedule of Securities with Gross Unrealized Losses | Information pertaining to securities with gross unrealized losses as of September 30, 2019 and December 31, 2018 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position is detailed in the following tables: Less Than 12 Months 12 Months or Longer Total September 30, 2019 Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Available for sale: Corporate bonds $ — $ — $ — $ — $ — $ — Municipal securities — — — — — — Mortgage-backed securities — — (555 ) 64,192 (555 ) 64,192 Collateralized mortgage obligations — — (33 ) 2,965 (33 ) 2,965 Total available for sale $ — $ — $ (588 ) $ 67,157 $ (588 ) $ 67,157 Held to maturity: Municipal securities $ (6 ) $ 3,016 $ (2 ) $ 763 $ (8 ) $ 3,779 Mortgage-backed securities — — (43 ) 7,287 (43 ) 7,287 Collateralized mortgage obligations — 13 — — — 13 Total held to maturity $ (6 ) $ 3,029 $ (45 ) $ 8,050 $ (51 ) $ 11,079 Less Than 12 Months 12 Months or Longer Total December 31, 2018 Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Available for sale: Corporate bonds $ (453 ) $ 11,236 $ (336 ) $ 7,718 $ (789 ) $ 18,954 Municipal securities (17 ) 2,219 (243 ) 7,407 (260 ) 9,626 Mortgage-backed securities (89 ) 7,173 (3,587 ) 76,717 (3,676 ) 83,890 Collateralized mortgage obligations (79 ) 9,232 (2,293 ) 99,390 (2,372 ) 108,622 Total available for sale $ (638 ) $ 29,860 $ (6,459 ) $ 191,232 $ (7,097 ) $ 221,092 Held to maturity: Municipal securities $ (512 ) $ 55,793 $ (582 ) $ 26,511 $ (1,094 ) $ 82,304 Mortgage-backed securities (21 ) 1,478 (479 ) 12,317 (500 ) 13,795 Collateralized mortgage obligations (28 ) 2,171 — — (28 ) 2,171 Total held to maturity $ (561 ) $ 59,442 $ (1,061 ) $ 38,828 $ (1,622 ) $ 98,270 |
Schedule of Proceeds from Sales of Securities | The proceeds from sales of available for sale securities and the associated gains and losses are listed below for the: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Proceeds from sales $ — $ 102,356 $ 3,957 $ 111,813 Gross gains — 4 — 4 Gross losses — (3 ) (22 ) (54 ) |
Investments Classified by Contractual Maturity Date | The contractual maturities at September 30, 2019 of available for sale and held to maturity securities at carrying value and estimated fair value are shown below. The Company invests in mortgage-backed securities and collateralized mortgage obligations that have expected maturities that differ from their contractual maturities. These differences arise because borrowers and/or issuers may have the right to call or prepay their obligation with or without call or prepayment penalties. Available for Sale Held to Maturity September 30, 2019 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 1,023 $ 1,027 $ 2,150 $ 2,164 Due after one year through five years 13,421 13,748 29,272 30,148 Due after five years through ten years 13,333 13,907 33,943 35,375 Due after ten years 7,579 7,810 73,511 76,166 Mortgage-backed securities 87,946 88,067 15,119 15,264 Collateralized mortgage obligations 95,297 96,786 2,930 3,048 Total Securities $ 218,599 $ 221,345 $ 156,925 $ 162,165 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Summary of Loan Portfolio by Type of Loan | The following table summarizes the Company’s loan portfolio by type of loan as of: September 30, 2019 December 31, 2018 Commercial and industrial $ 299,714 $ 261,779 Real estate: Construction and development 256,459 237,503 Commercial real estate 581,742 582,519 Farmland 61,073 67,845 1-4 family residential 406,880 393,067 Multi-family residential 58,198 38,386 Consumer 53,315 54,777 Agricultural 18,728 23,277 Overdrafts 330 382 Total loans 1,736,439 1,659,535 Net of: Deferred loan costs 550 560 Allowance for loan losses (16,394 ) (14,651 ) Total net loans $ 1,720,595 $ 1,645,444 |
Schedule of Allowance for Loan Losses Activity | The following tables present the activity in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method for the nine months ended September 30, 2019, for the year ended December 31, 2018 and for the nine months ended September 30, 2018: For the Nine Months Ended September 30, 2019 Commercial and industrial Construction and development Commercial real estate Farmland 1-4 family residential Multi-family residential Consumer Agricultural Overdrafts Total Allowance for loan losses: Beginning balance $ 1,751 $ 1,920 $ 6,025 $ 643 $ 2,868 $ 631 $ 565 $ 238 $ 10 $ 14,651 Provision for loan losses (152 ) 215 863 (49 ) 220 199 (28 ) (126 ) 108 1,250 Loans charged-off (49 ) — — — (14 ) — (32 ) — (137 ) (232 ) Recoveries 507 — 1 — 3 — 95 89 30 725 Ending balance $ 2,057 $ 2,135 $ 6,889 $ 594 $ 3,077 $ 830 $ 600 $ 201 $ 11 $ 16,394 Allowance ending balance: Individually evaluated for impairment $ — $ — $ 1,186 $ 62 $ 20 $ — $ — $ — $ — $ 1,268 Collectively evaluated for impairment 2,057 2,135 5,703 532 3,057 830 600 201 11 15,126 Ending balance $ 2,057 $ 2,135 $ 6,889 $ 594 $ 3,077 $ 830 $ 600 $ 201 $ 11 $ 16,394 Loans: Individually evaluated for impairment $ 302 $ 1,325 $ 17,222 $ 133 $ 2,337 $ — $ — $ 64 $ — $ 21,383 Collectively evaluated for impairment 299,412 $ 255,134 564,520 60,940 404,543 58,198 53,315 18,664 330 1,715,056 Ending balance $ 299,714 $ 256,459 $ 581,742 $ 61,073 $ 406,880 $ 58,198 $ 53,315 $ 18,728 $ 330 $ 1,736,439 For the Year Ended December 31, 2018 Commercial and industrial Construction and development Commercial real estate Farmland 1-4 family residential Multi-family residential Consumer Agricultural Overdrafts Total Allowance for loan losses: Beginning balance $ 1,581 $ 1,724 $ 4,585 $ 523 $ 3,022 $ 629 $ 602 $ 187 $ 6 $ 12,859 Provision for loan losses 426 196 1,472 120 (196 ) 2 127 (12 ) 115 2,250 Loans charged-off (367 ) — (33 ) — (93 ) — (254 ) (2 ) (169 ) (918 ) Recoveries 111 — 1 — 135 — 90 65 58 460 Ending balance $ 1,751 $ 1,920 $ 6,025 $ 643 $ 2,868 $ 631 $ 565 $ 238 $ 10 $ 14,651 Allowance ending balance: Individually evaluated for impairment $ 64 $ 4 $ 341 $ 78 $ 6 $ — $ — $ — $ — $ 493 Collectively evaluated for impairment 1,687 1,916 5,684 565 2,862 631 565 238 10 14,158 Ending balance $ 1,751 $ 1,920 $ 6,025 $ 643 $ 2,868 $ 631 $ 565 $ 238 $ 10 $ 14,651 Loans: Individually evaluated for impairment $ 1,022 $ 1,250 $ 7,153 $ 140 $ 1,383 $ — $ — $ 408 $ — $ 11,356 Collectively evaluated for impairment 260,757 $ 236,253 575,366 67,705 391,684 38,386 54,777 22,869 382 1,648,179 Ending balance $ 261,779 $ 237,503 $ 582,519 $ 67,845 $ 393,067 $ 38,386 $ 54,777 $ 23,277 $ 382 $ 1,659,535 For the Nine Months Ended September 30, 2018 Commercial and industrial Construction and development Commercial real estate Farmland 1-4 family residential Multi-family residential Consumer Agricultural Overdrafts Total Allowance for loan losses: Beginning balance $ 1,581 $ 1,724 $ 4,585 $ 523 $ 3,022 $ 629 $ 602 $ 187 $ 6 $ 12,859 Provision for loan losses 138 119 1,329 100 (161 ) 41 101 (3 ) 86 1,750 Loans charged-off (66 ) — (32 ) — (19 ) — (175 ) (2 ) (117 ) (411 ) Recoveries 54 — — — 49 — 41 65 34 243 Ending balance $ 1,707 $ 1,843 $ 5,882 $ 623 $ 2,891 $ 670 $ 569 $ 247 $ 9 $ 14,441 Allowance ending balance: Individually evaluated for impairment $ 315 $ — $ 61 $ 74 $ 4 $ — $ — $ — $ — $ 454 Collectively evaluated for impairment 1,392 1,843 5,821 549 2,887 670 569 247 9 13,987 Ending balance $ 1,707 $ 1,843 $ 5,882 $ 623 $ 2,891 $ 670 $ 569 $ 247 $ 9 $ 14,441 Loans: Individually evaluated for impairment $ 1,584 $ 1,684 $ 6,360 $ 218 $ 1,571 $ — $ — $ 409 $ — $ 11,826 Collectively evaluated for impairment 247,174 $ 227,623 592,793 64,991 390,885 38,523 53,947 23,775 326 1,640,037 Ending balance $ 248,758 $ 229,307 $ 599,153 $ 65,209 $ 392,456 $ 38,523 $ 53,947 $ 24,184 $ 326 $ 1,651,863 |
Summary of Credit Exposure by Internally Assigned Grade | The following tables summarize the credit exposure in the Company’s consumer and commercial loan portfolios as of: September 30, 2019 Commercial and industrial Construction and development Commercial real estate Farmland 1-4 family residential Multi-family residential Consumer and Overdrafts Agricultural Total Grade: Pass $ 299,358 $ 254,527 $ 561,933 $ 60,792 $ 405,635 $ 58,198 $ 53,495 $ 18,493 $ 1,712,431 Special mention 149 600 2,859 44 830 — 61 102 4,645 Substandard 207 1,332 16,950 237 415 — 89 133 19,363 Total $ 299,714 $ 256,459 $ 581,742 $ 61,073 $ 406,880 $ 58,198 $ 53,645 $ 18,728 $ 1,736,439 December 31, 2018 Commercial and industrial Construction and development Commercial real estate Farmland 1-4 family residential Multi-family residential Consumer and Overdrafts Agricultural Total Grade: Pass $ 260,863 $ 236,253 $ 569,648 $ 67,541 $ 391,956 $ 38,386 $ 55,055 $ 22,713 $ 1,642,415 Special mention 224 — 5,691 49 514 — 48 115 6,641 Substandard 692 1,250 7,180 255 597 — 56 449 10,479 Total $ 261,779 $ 237,503 $ 582,519 $ 67,845 $ 393,067 $ 38,386 $ 55,159 $ 23,277 $ 1,659,535 |
Summary of Payment Status of Loans | The following tables summarize the payment status of loans in the Company’s total loan portfolio, including an aging of delinquent loans, loans 90 days or more past due continuing to accrue interest and loans classified as nonperforming as of: September 30, 2019 30 to 59 Days Past Due 60 to 89 Days Past Due 90 Days and Greater Past Due Total Past Due Current Total Loans Recorded Investment > 90 Days and Accruing Commercial and industrial $ 664 $ 88 $ — $ 752 $ 298,962 $ 299,714 $ — Real estate: Construction and development 1,498 — 99 1,597 254,862 256,459 — Commercial real estate 1,960 278 521 2,759 578,983 581,742 — Farmland 255 — — 255 60,818 61,073 — 1-4 family residential 4,819 890 414 6,123 400,757 406,880 — Multi-family residential — — — — 58,198 58,198 — Consumer 341 81 90 512 52,803 53,315 — Agricultural 65 — — 65 18,663 18,728 — Overdrafts — — — — 330 330 — Total $ 9,602 $ 1,337 $ 1,124 $ 12,063 $ 1,724,376 $ 1,736,439 $ — December 31, 2018 30 to 59 Days Past Due 60 to 89 Days Past Due 90 Days and Greater Past Due Total Past Due Current Total Loans Recorded Investment > 90 Days and Accruing Commercial and industrial $ 209 $ 493 $ 266 $ 968 $ 260,811 $ 261,779 $ — Real estate: Construction and development 735 2,816 — 3,551 233,952 237,503 — Commercial real estate 1,803 3 3,227 5,033 577,486 582,519 — Farmland 485 — — 485 67,360 67,845 — 1-4 family residential 2,849 666 596 4,111 388,956 393,067 — Multi-family residential — — — — 38,386 38,386 — Consumer 526 51 56 633 54,144 54,777 — Agricultural 105 59 41 205 23,072 23,277 — Overdrafts — — — — 382 382 — Total $ 6,712 $ 4,088 $ 4,186 $ 14,986 $ 1,644,549 $ 1,659,535 $ — |
Schedule of Nonaccrual Loans | The following table presents information regarding nonaccrual loans as of: September 30, 2019 December 31, 2018 Commercial and industrial $ 15 $ 366 Real estate: Construction and development 106 — Commercial real estate 6,966 3,700 Farmland 133 140 1-4 family residential 3,403 1,567 Consumer 214 66 Agricultural 44 52 Total $ 10,881 $ 5,891 |
Summary of Troubled Debt Restructuring | The outstanding balances of TDRs are shown below: September 30, 2019 December 31, 2018 Nonaccrual TDRs $ 118 $ 335 Performing TDRs 7,297 861 Total $ 7,415 $ 1,196 Specific reserves on TDRs $ 184 $ — The following tables present loans by class, modified as TDRs, that occurred during the nine months ended September 30, 2019, the twelve months ended December 31, 2018 and the nine months ended September 30, 2018: Nine Months Ended September 30, 2019 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: Commercial real estate 4 $ 1,680 $ 1,515 Total 4 $ 1,680 $ 1,515 There were no TDRs that subsequently defaulted through September 30, 2019. Year Ended December 31, 2018 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: Commercial and industrial 3 $ 504 $ 504 1-4 family residential 1 78 78 Total 4 $ 582 $ 582 There was one TDR that subsequently defaulted, therefore remained on nonaccrual status as of December 31, 2018. The TDRs described above did not increase the allowance for loan losses and resulted in no charge-offs during the year ended December 31, 2018. Nine Months Ended September 30, 2018 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: 1-4 family residential 1 $ 15 $ 15 Farmland 1 78 78 Total 2 $ 93 $ 93 |
Summary of Impaired Loans | The following table presents information about the Company’s impaired loans as of: September 30, 2019 Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment With no related allowance recorded: Commercial and industrial $ 302 $ 302 $ — $ 239 Real estate: Construction and development 1,325 1,325 — 938 Commercial real estate 3,923 3,923 — 3,115 Farmland — — — — 1-4 family residential 2,283 2,283 — 1,225 Multi-family residential — — — — Consumer — — — — Agricultural 64 64 — 175 Subtotal 7,897 7,897 — 5,692 With allowance recorded: Commercial and industrial — — — 61 Real estate: Construction and development — — — — Commercial real estate 13,299 13,299 1,186 5,892 Farmland 133 133 62 102 1-4 family residential 54 54 20 73 Multi-family residential — — — — Consumer — — — — Agricultural — — — — Subtotal 13,486 13,486 1,268 6,128 Total $ 21,383 $ 21,383 $ 1,268 $ 11,820 The following table presents information about the Company’s impaired loans as of: December 31, 2018 Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment With no related allowance recorded: Commercial and industrial $ 837 $ 837 $ — $ 842 Real estate: Construction and development 720 720 — 518 Commercial real estate 5,168 5,168 — 5,138 Farmland — — — 62 1-4 family residential 1,223 1,223 — 1,132 Multi-family residential — — — 54 Consumer — — — — Agricultural 408 408 — 456 Subtotal 8,356 8,356 — 8,202 With allowance recorded: Commercial and industrial 185 185 64 300 Real estate: Construction and development 530 530 4 44 Commercial real estate 1,985 1,985 341 677 Farmland 140 140 78 147 1-4 family residential 160 160 6 128 Multi-family residential — — — — Consumer — — — — Agricultural — — — 52 Subtotal 3,000 3,000 493 1,348 Total $ 11,356 $ 11,356 $ 493 $ 9,550 |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER DEBT (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Maturities | Fixed rate advances, with monthly interest payments, principal due in: Year Current Weighted Average Rate Principal Due 2019 1.83 % $ 45,000 2020 2.09 % 6,500 2021 1.87 % 1,500 2022 1.99 % 1,500 2023 — — Thereafter 1.76 % 6,000 60,500 Fixed rate advances, with monthly principal and interest payments, principal due in: Year Current Weighted Average Rate 2021 1.38 % 123 $ 60,623 |
SUBORDINATED DEBENTURES (Tables
SUBORDINATED DEBENTURES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Subordinated Debentures and Other Debentures | Subordinated debentures are made up of the following as of: September 30, 2019 December 31, 2018 Trust II Debentures $ 3,093 $ 3,093 Trust III Debentures 2,062 2,062 DCB Trust I Debentures 5,155 5,155 Other debentures 1,000 2,500 $ 11,310 $ 12,810 Trust II Debentures Trust III Debentures DCB Trust I Debentures Original amount $ 3,093 $ 2,062 $ 5,155 Maturity date October 30, 2032 October 1, 2036 June 15, 2037 Interest due Quarterly Quarterly Quarterly |
Schedule of Trusts | Trust II Trust III DCB Trust I Formation date October 30, 2002 July 25, 2006 March 29, 2007 Capital trust pass-through securities Number of shares 3,000 2,000 5,000 Original liquidation value $ 3,000 $ 2,000 $ 5,000 Common securities liquidation value 93 62 155 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock Option Activity | A summary of activity in the Plan during the nine months ended September 30, 2019 and 2018 follows: Nine Months Ended September 30, 2019 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at beginning of year 537,872 $ 26.49 6.96 $ 2,088 Granted 35,000 29.85 9.61 26 Exercised (22,172 ) 24.93 5.29 125 Forfeited (26,400 ) 29.53 8.20 46 Balance, September 30, 2019 524,300 $ 26.63 6.38 $ 2,255 Exercisable at end of period 235,680 $ 25.22 5.42 $ 1,307 Nine Months Ended September 30, 2018 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at beginning of year 469,044 $ 25.11 7.32 $ 2,623 Granted 90,000 32.59 9.72 — Exercised (6,000 ) 23.33 5.98 41 Forfeited (11,800 ) 23.41 5.74 81 Balance, September 30, 2018 541,244 $ 26.41 7.12 $ 2,320 Exercisable at end of period 171,184 $ 24.29 5.81 $ 1,024 |
Schedule of Nonvested Stock Option Activity | A summary of nonvested activity in the Plan during the nine months ended September 30, 2019 and 2018 follows: Nine Months Ended September 30, 2019 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at beginning of year 331,560 $ 27.74 7.77 $ 975 Granted 35,000 29.85 9.61 26 Vested (54,340 ) 28.10 7.48 172 Forfeited (23,600 ) 33.03 9.18 46 Balance, September 30, 2019 288,620 $ 27.78 7.16 $ 949 Nine Months Ended September 30, 2018 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at beginning of year 334,400 $ 25.72 7.91 $ 1,673 Granted 90,000 32.59 9.72 — Vested (44,940 ) 26.19 8.04 199 Forfeited (9,400 ) 29.38 7.20 81 Balance, September 30, 2018 370,060 $ 27.39 7.72 $ 1,297 |
Summary of Restricted Stock Awards and Units Activity | A summary of activity in the Plan during the nine months ended September 30, 2019 and 2018 follows: Nine Months Ended September 30, 2019 Number of Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year 2,398 $ 31.57 Granted 30,500 30.25 Exercised (1,439 ) 31.57 Forfeited — — Balance, September 30, 2019 31,459 $ 29.33 Exercisable at end of period — $ — Nine Months Ended September 30, 2018 Number of Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year 2,398 $ 31.57 Granted — — Exercised — — Forfeited — — Balance, September 30, 2018 2,398 $ 31.57 Exercisable at end of period 959 $ — |
Summary of Nonvested Restricted Stock Awards and Units Activity | A summary of nonvested activity in the Plan during the nine months ended September 30, 2019 and 2018 follows: Nine Months Ended September 30, 2019 Number of Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year 1,439 $ 31.57 Granted 30,500 30.25 Vested (480 ) 31.57 Forfeited — — Balance, September 30, 2019 31,459 $ 29.33 Nine Months Ended September 30, 2018 Number of Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year 2,398 $ 31.57 Granted — — Vested (959 ) 31.57 Forfeited — — Balance, September 30, 2018 1,439 $ 31.57 |
Plan Information | Information related to the Plan is as follows for the nine months ended: September 30, 2019 September 30, 2018 Intrinsic value of options exercised $ 125 $ 41 Cash received from options exercised 553 140 Weighted average fair value of options granted 16.75 5.62 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Summarizes Other Information Related to Operating Leases | The table below summarizes other information related to our operating leases: As of September 30, 2019 Operating leases Operating lease right-of-use assets $ 11,360 Operating lease liabilities 11,433 Weighted average remaining lease term Operating leases 10 years Weighted average discount rate Operating leases 2.74 % |
Schedule of Minimum Future Lease Payments Under Non-Cancelable Operating Leases | The Company leases some of its banking facilities under non-cancelable operating leases expiring in various years through 2023 and thereafter. Minimum future lease payments under these non-cancelable operating leases in excess of one year as of September 30, 2019, are as follows: 2019 $ 444 2020 1,536 2021 1,340 2022 1,229 2023 1,219 Thereafter 7,340 Total lease payments 13,108 Less: interest (1,675 ) Present value of lease liabilities $ 11,433 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense and Effective Tax Rate | Income tax expense was as follows for: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Income tax expense for the period $ 1,634 $ 1,160 $ 4,205 $ 3,126 Effective tax rate 17.83 % 18.56 % 18.19 % 18.16 % |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rates Swap Agreements | The information pertaining to outstanding interest rate swap agreements used to hedge floating rate debentures was as follows as of: September 30, 2019 Notional Amount Pay Rate Receive Rate Effective Date Maturity in Years Unrealized Losses $ 2,000 5.979 % 3 month LIBOR plus 1.67% 10/1/2016 6.50 $ 356 $ 3,000 7.505 % 3 month LIBOR plus 3.35% 10/30/2012 3.08 $ 240 December 31, 2018 Notional Amount Pay Rate Receive Rate Effective Date Maturity in Years Unrealized Losses $ 2,000 5.979 % 3 month LIBOR plus 1.67% 10/1/2016 7.25 $ 220 $ 3,000 7.505 % 3 month LIBOR plus 3.35% 10/30/2012 3.83 $ 173 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Commitments and Letters of Credit Outstanding | Commitments and letters of credit outstanding were as follows as of: Contract or Notional Amount September 30, 2019 December 31, 2018 Commitments to extend credit $ 381,699 $ 342,523 Letters of credit 9,069 11,675 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Banking And Thrift [Abstract] | |
Comparison of the Company's and Bank's Actual Capital Amounts and Ratios to Required Capital Amounts and Ratios | A comparison of the Company’s and Bank’s actual capital amounts and ratios to required capital amounts and ratios are presented in the following tables as of: Actual Minimum Required For Capital Adequacy Purposes Minimum Required Under Basel III Fully Phased-In To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio September 30, 2019 Total capital to risk-weighted assets: Consolidated $ 248,009 13.22 % $ 150,082 8.00 % $ 196,983 10.50 % n/a Bank 246,851 12.89 % 153,230 8.00 % 201,114 10.50 % $ 191,537 10.00 % Tier 1 capital to risk-weighted assets: Consolidated 231,615 12.35 % 112,562 6.00 % 159,462 8.50 % n/a Bank 230,457 12.03 % 114,922 6.00 % 162,807 8.50 % 153,230 8.00 % Tier 1 capital to average assets: (1) Consolidated 231,615 10.16 % 91,205 4.00 % 91,205 4.00 % n/a Bank 230,457 10.04 % 91,784 4.00 % 91,784 4.00 % 114,730 5.00 % Common equity tier 1 capital to risk-weighted assets: Consolidated 221,305 11.80 % 84,421 4.50 % 131,322 7.00 % n/a Bank 230,457 12.03 % 86,192 4.50 % 134,076 7.00 % 124,499 6.50 % (1) The Tier 1 capital ratio (to average assets) is not impacted by the Basel III Capital Rules; however, the Federal Reserve Board and the FDIC may require the Consolidated Company and the Bank, respectively, to maintain a Tier 1 capital ratio (to average assets) above the required minimum. Actual Minimum Required For Capital Adequacy Purposes Minimum Required Under Basel III Fully Phased-In To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Total capital to risk-weighted assets: Consolidated $ 241,791 13.25 % $ 146,020 8.00 % $ 191,651 10.50 % n/a Bank 242,142 13.27 % 146,015 8.00 % 191,645 10.50 % $ 182,519 10.00 % Tier 1 capital to risk-weighted assets: Consolidated 227,140 12.44 % 109,515 6.00 % 155,146 8.50 % n/a Bank 227,491 12.46 % 109,511 6.00 % 155,141 8.50 % 146,015 8.00 % Tier 1 capital to average assets: Consolidated 227,140 10.16 % 89,422 4.00 % 89,422 4.00 % n/a Bank 227,491 10.18 % 89,414 4.00 % 89,414 4.00 % 111,768 5.00 % Common equity tier 1 capital to risk-weighted assets: Consolidated 216,830 11.88 % 82,136 4.50 % 127,768 7.00 % n/a Bank 227,491 12.46 % 82,134 4.50 % 127,763 7.00 % 118,637 6.50 % |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets (Liabilities) Measured at Fair Value | The following tables summarize quantitative disclosures about the fair value measurements for each category of financial assets (liabilities) carried at fair value: As of September 30, 2019 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Assets (liabilities) at fair value on a recurring basis: Available for sale securities: Mortgage-backed securities $ 88,067 $ — $ 88,067 $ — Collateralized mortgage obligations 96,786 — 96,786 — Municipal securities 16,273 — 16,273 — Corporate bonds 20,219 — 20,219 — Loans held for sale 3,841 — — 3,841 Cash surrender value of life insurance 34,280 — 34,280 — SBA servicing assets 706 — — 706 Derivative instrument assets 596 — 596 — Derivative instrument liabilities (596 ) — (596 ) — Assets at fair value on a nonrecurring basis: Impaired loans 20,115 — — 20,115 Other real estate owned 551 — — 551 As of December 31, 2018 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Assets (liabilities) at fair value on a recurring basis: Available for sale securities: Mortgage-backed securities $ 89,459 $ — $ 89,459 $ — Collateralized mortgage obligations 108,969 — 108,969 — Municipal securities 15,593 — 15,593 — Corporate bonds 18,954 — 18,954 — Derivative instruments (392 ) — (392 ) — Assets at fair value on a nonrecurring basis: Impaired loans 10,863 — — 10,863 Other real estate owned 751 — — 751 |
Schedule of Foreclosed Assets Measured at Fair Value | The following table presents foreclosed assets that were remeasured and recorded at fair value as of: September 30, 2019 December 31, 2018 September 30, 2018 Other real estate owned remeasured at initial recognition: Carrying value of other real estate owned prior to remeasurement $ 137 $ 542 $ 180 Charge-offs recognized in the allowance for loan losses (9 ) (25 ) (23 ) Fair value of other real estate owned remeasured at initial recognition $ 128 $ 517 $ 157 Other real estate owned remeasured subsequent to initial recognition: Carrying value of other real estate owned prior to remeasurement $ — $ 599 $ 599 Write-downs included in collection and other real estate owned expense — (56 ) (56 ) Fair value of other real estate owned remeasured subsequent to initial recognition $ — $ 543 $ 543 |
Schedule of Quantitative Information About Nonrecurring Level 3 Fair Value Measurements | The following tables present quantitative information about nonrecurring Level 3 fair value measurements as of: Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) September 30, 2019 Impaired loans $ 20,115 Fair value of collateral - sales comparison approach Selling costs or other normal adjustments: Real estate Equipment 10%-20% (16%) 10%-20% (12%) Other real estate owned $ 551 Appraisal value of collateral Selling costs or other normal adjustments 10%-20% (16%) . Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) December 31, 2018 Impaired loans $ 10,863 Fair value of collateral - sales comparison approach Selling costs or other normal adjustments: Real estate Equipment 10%-20% (16%) 10%-20% (19%) Other real estate owned $ 751 Appraisal value of collateral Selling costs or other normal adjustments 10%-20% (16%) |
Schedule of Carrying Amounts And Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments not previously discussed in this note, as of September 30, 2019 and December 31, 2018, are as follows: Fair value measurements as of September 30, 2019 using: Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Financial assets: Cash, due from banks, federal funds sold and interest-bearing deposits $ 58,648 $ 58,648 $ — $ — $ 58,648 Marketable securities held to maturity 156,925 — 162,165 — 162,165 Loans, net 1,720,595 — — 1,719,467 1,719,467 Accrued interest receivable 7,825 — 7,825 — 7,825 Nonmarketable equity securities 11,644 — 11,644 — 11,644 Cash surrender value of life insurance 34,280 — 34,280 — 34,280 Financial liabilities: Deposits $ 1,963,313 $ 1,432,490 $ 534,075 $ — $ 1,966,565 Securities sold under repurchase agreements 11,363 — 11,363 — 11,363 Accrued interest payable 1,719 — 1,719 — 1,719 Federal Home Loan Bank advances 60,623 — 60,634 — 60,634 Subordinated debentures 11,310 — 9,153 — 9,153 Fair value measurements as of December 31, 2018 using: Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Financial assets: Cash, due from banks, federal funds sold and interest-bearing deposits $ 71,510 $ 71,510 $ — $ — $ 71,510 Marketable securities held to maturity 163,164 — 162,800 — 162,800 Loans, net 1,645,444 — — 1,630,600 1,630,600 Accrued interest receivable 9,292 — 9,292 — 9,292 Nonmarketable equity securities 14,937 — 14,937 — 14,937 Cash surrender value of life insurance 26,301 — 26,301 — 26,301 Financial liabilities: Deposits $ 1,871,480 $ 1,435,985 $ 434,647 $ — $ 1,870,632 Securities sold under repurchase agreements 12,228 — 12,228 — 12,228 Accrued interest payable 1,651 — 1,651 — 1,651 Federal Home Loan Bank advances 115,136 — 114,934 — 114,934 Subordinated debentures 12,810 — 10,724 — 10,724 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The computations of basic and diluted earnings per share for the Company were as follows for the: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net earnings (basic) $ 7,530 $ 5,091 $ 18,910 $ 14,084 Net earnings (diluted) $ 7,530 $ 5,091 $ 18,910 $ 14,084 Denominator: Weighted-average shares outstanding (basic) 11,550,335 11,962,654 11,674,298 11,452,968 Effect of dilutive securities: Common stock equivalent shares from stock options 62,538 70,780 58,844 100,539 Weighted-average shares outstanding (diluted) 11,612,873 12,033,434 11,733,142 11,553,507 Net earnings per share Basic $ 0.65 $ 0.43 $ 1.62 $ 1.23 Diluted $ 0.65 $ 0.42 $ 1.62 $ 1.22 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands | Sep. 30, 2019USD ($)subsidary | Jan. 01, 2019USD ($) | Mar. 31, 2018USD ($) |
Property, Plant and Equipment [Line Items] | |||
Number of subsidiaries | subsidary | 6 | ||
Operating lease liability | $ 11,433 | ||
Operating lease right of use asset | $ 11,360 | ||
Accounting Standards Update 2018-02 | |||
Property, Plant and Equipment [Line Items] | |||
Operating lease liability | $ 12,000 | ||
Operating lease right of use asset | $ 12,000 | ||
Accumulated Other Comprehensive Loss | Accounting Standards Update 2018-02 | |||
Property, Plant and Equipment [Line Items] | |||
Reclassification of certain tax effects from accumulated other comprehensive income | $ 486 | ||
Retained Earnings | Accounting Standards Update 2018-02 | |||
Property, Plant and Equipment [Line Items] | |||
Reclassification of certain tax effects from accumulated other comprehensive income | $ 486 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) | Jun. 01, 2018 | Sep. 30, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 32,160,000 | $ 32,160,000 | |
Westbound Bank | |||
Business Acquisition [Line Items] | |||
Percentage of shares acquired | 100.00% | ||
Total consideration transferred | $ 35,991,000 | ||
Shares issued (shares) | 899,816 | ||
Shares of acquired company exchanged (shares) | 2,311,952 | ||
Goodwill | $ 13,418,000 | ||
Goodwill expected to be deducted | 0 | ||
Contingent consideration withheld in escrow | $ 1,750,000 | ||
Performance period pertinent to contingent consideration | 3 years | ||
Fair value of performing loans | $ 154,687,000 |
ACQUISITIONS - Consideration (D
ACQUISITIONS - Consideration (Details) - USD ($) $ in Thousands | Jun. 01, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Business Acquisition [Line Items] | |||
Cash | $ 0 | $ 6,423 | |
Westbound Bank | |||
Business Acquisition [Line Items] | |||
Cash | $ 6,423 | ||
Equity instruments | 29,568 | ||
Fair value of total consideration transferred | $ 35,991 |
ACQUISITIONS - Purchase Price A
ACQUISITIONS - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Jun. 01, 2018 |
Liabilities [Abstract] | |||
Goodwill | $ 32,160 | $ 32,160 | |
Westbound Bank | |||
Assets [Abstract] | |||
Cash and due from banks | $ 24,927 | ||
Investment securities available for sale | 15,264 | ||
Loans, net of discount | 154,687 | ||
Accrued interest receivable | 651 | ||
Premises and equipment | 8,625 | ||
Core deposit intangible | 2,700 | ||
Other assets | 9,205 | ||
Total assets acquired | 216,059 | ||
Liabilities [Abstract] | |||
Non-interest bearing deposits | 40,595 | ||
Interest bearing deposits | 140,826 | ||
Federal Home Loan Bank advances | 10,500 | ||
Accrued interest and other liabilities | 1,565 | ||
Total liabilities assumed | 193,486 | ||
Net assets acquired | 22,573 | ||
Total consideration paid | 35,991 | ||
Goodwill | $ 13,418 |
MARKETABLE SECURITIES - Schedul
MARKETABLE SECURITIES - Schedule of Amortized Cost and Fair Value of Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | $ 218,599 | $ 239,945 |
Gross Unrealized Gain | 3,334 | 127 |
Gross Unrealized Loss | 588 | 7,097 |
Estimated Fair Value | 221,345 | 232,975 |
Held to maturity: | ||
Amortized Cost | 156,925 | 163,164 |
Gross Unrealized Gains | 5,291 | 1,258 |
Gross Unrealized Losses | 51 | 1,622 |
Estimated Fair Value | 162,165 | 162,800 |
Corporate bonds | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 19,686 | 19,743 |
Gross Unrealized Gain | 533 | 0 |
Gross Unrealized Loss | 0 | 789 |
Estimated Fair Value | 20,219 | 18,954 |
Mortgage-backed securities | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 87,946 | 93,083 |
Gross Unrealized Gain | 676 | 52 |
Gross Unrealized Loss | 555 | 3,676 |
Estimated Fair Value | 88,067 | 89,459 |
Held to maturity: | ||
Amortized Cost | 15,119 | 17,163 |
Gross Unrealized Gains | 188 | 54 |
Gross Unrealized Losses | 43 | 500 |
Estimated Fair Value | 15,264 | 16,717 |
Collateralized mortgage obligations | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 95,297 | 111,341 |
Gross Unrealized Gain | 1,522 | 0 |
Gross Unrealized Loss | 33 | 2,372 |
Estimated Fair Value | 96,786 | 108,969 |
Held to maturity: | ||
Amortized Cost | 2,930 | 4,059 |
Gross Unrealized Gains | 118 | 48 |
Gross Unrealized Losses | 0 | 28 |
Estimated Fair Value | 3,048 | 4,079 |
Municipal securities | ||
Available for sale: | ||
Available-for-sale debt securities, amortized cost basis | 15,670 | 15,778 |
Gross Unrealized Gain | 603 | 75 |
Gross Unrealized Loss | 0 | 260 |
Estimated Fair Value | 16,273 | 15,593 |
Held to maturity: | ||
Amortized Cost | 138,876 | 141,942 |
Gross Unrealized Gains | 4,985 | 1,156 |
Gross Unrealized Losses | 8 | 1,094 |
Estimated Fair Value | $ 143,853 | $ 142,004 |
MARKETABLE SECURITIES - Narrati
MARKETABLE SECURITIES - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)Position | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Positionsecurity | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Investments Debt And Equity Securities [Abstract] | |||||
Other than temporary impairment losses on debt securities related to credit losses | $ 0 | $ 0 | $ 0 | ||
Number of investment positions in an unrealized loss position | Position | 26 | 26 | |||
Number of securities other than agencies amount | security | 0 | ||||
Fair value of securities pledged as collateral | $ 240,348,000 | $ 240,348,000 | $ 259,557,000 | ||
Number of held-to-maturity securities sold | 0 | 0 | 0 | 0 |
MARKETABLE SECURITIES - Securit
MARKETABLE SECURITIES - Securities in Continuous Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Gross Unrealized Losses | ||
Less Than 12 Months | $ 0 | $ (638) |
12 Months or Longer | (588) | (6,459) |
Total | (588) | (7,097) |
Estimated Fair Value | ||
Less Than 12 Months | 0 | 29,860 |
12 Months or Longer | 67,157 | 191,232 |
Total | 67,157 | 221,092 |
Gross Unrealized Losses | ||
Less Than 12 Months | (6) | (561) |
12 Months or Longer | (45) | (1,061) |
Total | (51) | (1,622) |
Estimated Fair Value | ||
Less Than 12 Months | 3,029 | 59,442 |
12 Months or Longer | 8,050 | 38,828 |
Total | 11,079 | 98,270 |
Corporate bonds | ||
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | (453) |
12 Months or Longer | 0 | (336) |
Total | 0 | (789) |
Estimated Fair Value | ||
Less Than 12 Months | 0 | 11,236 |
12 Months or Longer | 0 | 7,718 |
Total | 0 | 18,954 |
Mortgage-backed securities | ||
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | (89) |
12 Months or Longer | (555) | (3,587) |
Total | (555) | (3,676) |
Estimated Fair Value | ||
Less Than 12 Months | 0 | 7,173 |
12 Months or Longer | 64,192 | 76,717 |
Total | 64,192 | 83,890 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | (21) |
12 Months or Longer | (43) | (479) |
Total | (43) | (500) |
Estimated Fair Value | ||
Less Than 12 Months | 0 | 1,478 |
12 Months or Longer | 7,287 | 12,317 |
Total | 7,287 | 13,795 |
Collateralized mortgage obligations | ||
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | (79) |
12 Months or Longer | (33) | (2,293) |
Total | (33) | (2,372) |
Estimated Fair Value | ||
Less Than 12 Months | 0 | 9,232 |
12 Months or Longer | 2,965 | 99,390 |
Total | 2,965 | 108,622 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | (28) |
12 Months or Longer | 0 | 0 |
Total | 0 | (28) |
Estimated Fair Value | ||
Less Than 12 Months | 13 | 2,171 |
12 Months or Longer | 0 | 0 |
Total | 13 | 2,171 |
Municipal securities | ||
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | (17) |
12 Months or Longer | 0 | (243) |
Total | 0 | (260) |
Estimated Fair Value | ||
Less Than 12 Months | 0 | 2,219 |
12 Months or Longer | 0 | 7,407 |
Total | 0 | 9,626 |
Gross Unrealized Losses | ||
Less Than 12 Months | (6) | (512) |
12 Months or Longer | (2) | (582) |
Total | (8) | (1,094) |
Estimated Fair Value | ||
Less Than 12 Months | 3,016 | 55,793 |
12 Months or Longer | 763 | 26,511 |
Total | $ 3,779 | $ 82,304 |
MARKETABLE SECURITIES - Sale of
MARKETABLE SECURITIES - Sale of Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Sale Of Marketable Securities [Abstract] | ||||
Proceeds from sales | $ 0 | $ 102,356 | $ 3,957 | $ 111,813 |
Gross gains | 0 | 4 | 0 | 4 |
Gross losses | $ 0 | $ (3) | $ (22) | $ (54) |
MARKETABLE SECURITIES - Contrac
MARKETABLE SECURITIES - Contractual Maturities of Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due within one year | $ 1,023 | |
Due after one year through five years | 13,421 | |
Due after five years through ten years | 13,333 | |
Due after ten years | 7,579 | |
Available-for-sale debt securities, amortized cost basis | 218,599 | $ 239,945 |
Estimated Fair Value | ||
Due within one year | 1,027 | |
Due after one year through five years | 13,748 | |
Due after five years through ten years | 13,907 | |
Due after ten years | 7,810 | |
Available-for-sale debt securities, estimated fair value | 221,345 | 232,975 |
Amortized Cost | ||
Due within one year | 2,150 | |
Due after one year through five years | 29,272 | |
Due after five years through ten years | 33,943 | |
Due after ten years | 73,511 | |
Amortized Cost | 156,925 | 163,164 |
Estimated Fair Value | ||
Due within one year | 2,164 | |
Due after one year through five years | 30,148 | |
Due after five years through ten years | 35,375 | |
Due after ten years | 76,166 | |
Held-to-maturity securities, estimated fair value | 162,165 | 162,800 |
Mortgage-backed securities | ||
Amortized Cost | ||
Available-for-sale securities without single maturity date | 87,946 | |
Available-for-sale debt securities, amortized cost basis | 87,946 | 93,083 |
Estimated Fair Value | ||
Available-for-sale securities without single maturity date | 88,067 | |
Available-for-sale debt securities, estimated fair value | 88,067 | 89,459 |
Amortized Cost | ||
Held-to-maturity securities, without single maturity date | 15,119 | |
Amortized Cost | 15,119 | 17,163 |
Estimated Fair Value | ||
Held-to-maturity securities, without single maturity date | 15,264 | |
Held-to-maturity securities, estimated fair value | 15,264 | 16,717 |
Collateralized mortgage obligations | ||
Amortized Cost | ||
Available-for-sale securities without single maturity date | 95,297 | |
Available-for-sale debt securities, amortized cost basis | 95,297 | 111,341 |
Estimated Fair Value | ||
Available-for-sale securities without single maturity date | 96,786 | |
Available-for-sale debt securities, estimated fair value | 96,786 | 108,969 |
Amortized Cost | ||
Held-to-maturity securities, without single maturity date | 2,930 | |
Amortized Cost | 2,930 | 4,059 |
Estimated Fair Value | ||
Held-to-maturity securities, without single maturity date | 3,048 | |
Held-to-maturity securities, estimated fair value | $ 3,048 | $ 4,079 |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Loan Portfolio by Type of Loan (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Loans held for investment: | ||||
Total loans | $ 1,736,439 | $ 1,659,535 | $ 1,651,863 | |
Deferred loan costs | 550 | 560 | ||
Allowance for loan losses | (16,394) | (14,651) | (14,441) | $ (12,859) |
Total net loans | 1,720,595 | 1,645,444 | ||
Commercial and industrial | ||||
Loans held for investment: | ||||
Total loans | 299,714 | 261,779 | 248,758 | |
Allowance for loan losses | (2,057) | (1,751) | (1,707) | (1,581) |
Construction and development | ||||
Loans held for investment: | ||||
Total loans | 256,459 | 237,503 | 229,307 | |
Allowance for loan losses | (2,135) | (1,920) | (1,843) | (1,724) |
Commercial real estate | ||||
Loans held for investment: | ||||
Total loans | 581,742 | 582,519 | 599,153 | |
Allowance for loan losses | (6,889) | (6,025) | (5,882) | (4,585) |
Farmland | ||||
Loans held for investment: | ||||
Total loans | 61,073 | 67,845 | 65,209 | |
Allowance for loan losses | (594) | (643) | (623) | (523) |
1-4 family residential | ||||
Loans held for investment: | ||||
Total loans | 406,880 | 393,067 | 392,456 | |
Allowance for loan losses | (3,077) | (2,868) | (2,891) | (3,022) |
Multi-family residential | ||||
Loans held for investment: | ||||
Total loans | 58,198 | 38,386 | 38,523 | |
Allowance for loan losses | (830) | (631) | (670) | (629) |
Consumer | ||||
Loans held for investment: | ||||
Total loans | 53,315 | 54,777 | 53,947 | |
Allowance for loan losses | (600) | (565) | (569) | (602) |
Agricultural | ||||
Loans held for investment: | ||||
Total loans | 18,728 | 23,277 | 24,184 | |
Allowance for loan losses | (201) | (238) | (247) | (187) |
Overdrafts | ||||
Loans held for investment: | ||||
Total loans | 330 | 382 | 326 | |
Allowance for loan losses | $ (11) | $ (10) | $ (9) | $ (6) |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES - Schedule of Allowance for Loan Losses Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Allowance for loan losses: | |||||
Beginning balance | $ 14,651 | $ 12,859 | $ 12,859 | ||
Provision for loan losses | $ 100 | $ 500 | 1,250 | 1,750 | 2,250 |
Loans charged-off | (232) | (411) | (918) | ||
Recoveries | 725 | 243 | 460 | ||
Ending balance | 16,394 | 14,441 | 16,394 | 14,441 | 14,651 |
Allowance ending balance: | |||||
Individually evaluated for impairment | 1,268 | 454 | 1,268 | 454 | 493 |
Collectively evaluated for impairment | 15,126 | 13,987 | 15,126 | 13,987 | 14,158 |
Ending balance | 16,394 | 14,441 | 16,394 | 14,441 | 14,651 |
Loans: | |||||
Individually evaluated for impairment | 21,383 | 11,826 | 21,383 | 11,826 | 11,356 |
Collectively evaluated for impairment | 1,715,056 | 1,640,037 | 1,715,056 | 1,640,037 | 1,648,179 |
Ending balance | 1,736,439 | 1,651,863 | 1,736,439 | 1,651,863 | 1,659,535 |
Commercial and industrial | |||||
Allowance for loan losses: | |||||
Beginning balance | 1,751 | 1,581 | 1,581 | ||
Provision for loan losses | (152) | 138 | 426 | ||
Loans charged-off | (49) | (66) | (367) | ||
Recoveries | 507 | 54 | 111 | ||
Ending balance | 2,057 | 1,707 | 2,057 | 1,707 | 1,751 |
Allowance ending balance: | |||||
Individually evaluated for impairment | 315 | 315 | 64 | ||
Collectively evaluated for impairment | 2,057 | 1,392 | 2,057 | 1,392 | 1,687 |
Ending balance | 2,057 | 1,707 | 2,057 | 1,707 | 1,751 |
Loans: | |||||
Individually evaluated for impairment | 302 | 1,584 | 302 | 1,584 | 1,022 |
Collectively evaluated for impairment | 299,412 | 247,174 | 299,412 | 247,174 | 260,757 |
Ending balance | 299,714 | 248,758 | 299,714 | 248,758 | 261,779 |
Construction and development | |||||
Allowance for loan losses: | |||||
Beginning balance | 1,920 | 1,724 | 1,724 | ||
Provision for loan losses | 215 | 119 | 196 | ||
Ending balance | 2,135 | 1,843 | 2,135 | 1,843 | 1,920 |
Allowance ending balance: | |||||
Individually evaluated for impairment | 4 | ||||
Collectively evaluated for impairment | 2,135 | 1,843 | 2,135 | 1,843 | 1,916 |
Ending balance | 2,135 | 1,843 | 2,135 | 1,843 | 1,920 |
Loans: | |||||
Individually evaluated for impairment | 1,325 | 1,684 | 1,325 | 1,684 | 1,250 |
Collectively evaluated for impairment | 255,134 | 227,623 | 255,134 | 227,623 | 236,253 |
Ending balance | 256,459 | 229,307 | 256,459 | 229,307 | 237,503 |
Commercial real estate | |||||
Allowance for loan losses: | |||||
Beginning balance | 6,025 | 4,585 | 4,585 | ||
Provision for loan losses | 863 | 1,329 | 1,472 | ||
Loans charged-off | (32) | (33) | |||
Recoveries | 1 | 1 | |||
Ending balance | 6,889 | 5,882 | 6,889 | 5,882 | 6,025 |
Allowance ending balance: | |||||
Individually evaluated for impairment | 1,186 | 61 | 1,186 | 61 | 341 |
Collectively evaluated for impairment | 5,703 | 5,821 | 5,703 | 5,821 | 5,684 |
Ending balance | 6,889 | 5,882 | 6,889 | 5,882 | 6,025 |
Loans: | |||||
Individually evaluated for impairment | 17,222 | 6,360 | 17,222 | 6,360 | 7,153 |
Collectively evaluated for impairment | 564,520 | 592,793 | 564,520 | 592,793 | 575,366 |
Ending balance | 581,742 | 599,153 | 581,742 | 599,153 | 582,519 |
Farmland | |||||
Allowance for loan losses: | |||||
Beginning balance | 643 | 523 | 523 | ||
Provision for loan losses | (49) | 100 | 120 | ||
Ending balance | 594 | 623 | 594 | 623 | 643 |
Allowance ending balance: | |||||
Individually evaluated for impairment | 62 | 74 | 62 | 74 | 78 |
Collectively evaluated for impairment | 532 | 549 | 532 | 549 | 565 |
Ending balance | 594 | 623 | 594 | 623 | 643 |
Loans: | |||||
Individually evaluated for impairment | 133 | 218 | 133 | 218 | 140 |
Collectively evaluated for impairment | 60,940 | 64,991 | 60,940 | 64,991 | 67,705 |
Ending balance | 61,073 | 65,209 | 61,073 | 65,209 | 67,845 |
1-4 family residential | |||||
Allowance for loan losses: | |||||
Beginning balance | 2,868 | 3,022 | 3,022 | ||
Provision for loan losses | 220 | (161) | (196) | ||
Loans charged-off | (14) | (19) | (93) | ||
Recoveries | 3 | 49 | 135 | ||
Ending balance | 3,077 | 2,891 | 3,077 | 2,891 | 2,868 |
Allowance ending balance: | |||||
Individually evaluated for impairment | 20 | 4 | 20 | 4 | 6 |
Collectively evaluated for impairment | 3,057 | 2,887 | 3,057 | 2,887 | 2,862 |
Ending balance | 3,077 | 2,891 | 3,077 | 2,891 | 2,868 |
Loans: | |||||
Individually evaluated for impairment | 2,337 | 1,571 | 2,337 | 1,571 | 1,383 |
Collectively evaluated for impairment | 404,543 | 390,885 | 404,543 | 390,885 | 391,684 |
Ending balance | 406,880 | 392,456 | 406,880 | 392,456 | 393,067 |
Multi-family residential | |||||
Allowance for loan losses: | |||||
Beginning balance | 631 | 629 | 629 | ||
Provision for loan losses | 199 | 41 | 2 | ||
Ending balance | 830 | 670 | 830 | 670 | 631 |
Allowance ending balance: | |||||
Collectively evaluated for impairment | 830 | 670 | 830 | 670 | 631 |
Ending balance | 830 | 670 | 830 | 670 | 631 |
Loans: | |||||
Collectively evaluated for impairment | 58,198 | 38,523 | 58,198 | 38,523 | 38,386 |
Ending balance | 58,198 | 38,523 | 58,198 | 38,523 | 38,386 |
Consumer | |||||
Allowance for loan losses: | |||||
Beginning balance | 565 | 602 | 602 | ||
Provision for loan losses | (28) | 101 | 127 | ||
Loans charged-off | (32) | (175) | (254) | ||
Recoveries | 95 | 41 | 90 | ||
Ending balance | 600 | 569 | 600 | 569 | 565 |
Allowance ending balance: | |||||
Collectively evaluated for impairment | 600 | 569 | 600 | 569 | 565 |
Ending balance | 600 | 569 | 600 | 569 | 565 |
Loans: | |||||
Collectively evaluated for impairment | 53,315 | 53,947 | 53,315 | 53,947 | 54,777 |
Ending balance | 53,315 | 53,947 | 53,315 | 53,947 | 54,777 |
Agricultural | |||||
Allowance for loan losses: | |||||
Beginning balance | 238 | 187 | 187 | ||
Provision for loan losses | (126) | (3) | (12) | ||
Loans charged-off | (2) | (2) | |||
Recoveries | 89 | 65 | 65 | ||
Ending balance | 201 | 247 | 201 | 247 | 238 |
Allowance ending balance: | |||||
Collectively evaluated for impairment | 201 | 247 | 201 | 247 | 238 |
Ending balance | 201 | 247 | 201 | 247 | 238 |
Loans: | |||||
Individually evaluated for impairment | 64 | 409 | 64 | 409 | 408 |
Collectively evaluated for impairment | 18,664 | 23,775 | 18,664 | 23,775 | 22,869 |
Ending balance | 18,728 | 24,184 | 18,728 | 24,184 | 23,277 |
Overdrafts | |||||
Allowance for loan losses: | |||||
Beginning balance | 10 | 6 | 6 | ||
Provision for loan losses | 108 | 86 | 115 | ||
Loans charged-off | (137) | (117) | (169) | ||
Recoveries | 30 | 34 | 58 | ||
Ending balance | 11 | 9 | 11 | 9 | 10 |
Allowance ending balance: | |||||
Collectively evaluated for impairment | 11 | 9 | 11 | 9 | 10 |
Ending balance | 11 | 9 | 11 | 9 | 10 |
Loans: | |||||
Collectively evaluated for impairment | 330 | 326 | 330 | 326 | 382 |
Ending balance | $ 330 | $ 326 | $ 330 | $ 326 | $ 382 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Credit Exposure (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | $ 1,736,439 | $ 1,659,535 | $ 1,651,863 |
Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 1,712,431 | 1,642,415 | |
Special Mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 4,645 | 6,641 | |
Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 19,363 | 10,479 | |
Commercial and industrial | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 299,714 | 261,779 | 248,758 |
Commercial and industrial | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 299,358 | 260,863 | |
Commercial and industrial | Special Mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 149 | 224 | |
Commercial and industrial | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 207 | 692 | |
Construction and development | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 256,459 | 237,503 | 229,307 |
Construction and development | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 254,527 | 236,253 | |
Construction and development | Special Mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 600 | ||
Construction and development | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 1,332 | 1,250 | |
Commercial real estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 581,742 | 582,519 | 599,153 |
Commercial real estate | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 561,933 | 569,648 | |
Commercial real estate | Special Mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 2,859 | 5,691 | |
Commercial real estate | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 16,950 | 7,180 | |
Farmland | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 61,073 | 67,845 | 65,209 |
Farmland | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 60,792 | 67,541 | |
Farmland | Special Mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 44 | 49 | |
Farmland | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 237 | 255 | |
1-4 family residential | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 406,880 | 393,067 | 392,456 |
1-4 family residential | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 405,635 | 391,956 | |
1-4 family residential | Special Mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 830 | 514 | |
1-4 family residential | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 415 | 597 | |
Multi-family residential | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 58,198 | 38,386 | 38,523 |
Multi-family residential | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 58,198 | 38,386 | |
Consumer and Overdrafts | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 53,645 | 55,159 | |
Consumer and Overdrafts | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 53,495 | 55,055 | |
Consumer and Overdrafts | Special Mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 61 | 48 | |
Consumer and Overdrafts | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 89 | 56 | |
Agricultural | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 18,728 | 23,277 | $ 24,184 |
Agricultural | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 18,493 | 22,713 | |
Agricultural | Special Mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 102 | 115 | |
Agricultural | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | $ 133 | $ 449 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Payment Status of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | $ 12,063 | $ 14,986 | |
Current | 1,724,376 | 1,644,549 | |
Ending balance | 1,736,439 | 1,659,535 | $ 1,651,863 |
Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 9,602 | 6,712 | |
Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 1,337 | 4,088 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 1,124 | 4,186 | |
Commercial and industrial | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 752 | 968 | |
Current | 298,962 | 260,811 | |
Ending balance | 299,714 | 261,779 | 248,758 |
Commercial and industrial | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 664 | 209 | |
Commercial and industrial | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 88 | 493 | |
Commercial and industrial | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 266 | ||
Construction and development | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 1,597 | 3,551 | |
Current | 254,862 | 233,952 | |
Ending balance | 256,459 | 237,503 | 229,307 |
Construction and development | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 1,498 | 735 | |
Construction and development | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 2,816 | ||
Construction and development | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 99 | ||
Commercial real estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 2,759 | 5,033 | |
Current | 578,983 | 577,486 | |
Ending balance | 581,742 | 582,519 | 599,153 |
Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 1,960 | 1,803 | |
Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 278 | 3 | |
Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 521 | 3,227 | |
Farmland | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 255 | 485 | |
Current | 60,818 | 67,360 | |
Ending balance | 61,073 | 67,845 | 65,209 |
Farmland | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 255 | 485 | |
1-4 family residential | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 6,123 | 4,111 | |
Current | 400,757 | 388,956 | |
Ending balance | 406,880 | 393,067 | 392,456 |
1-4 family residential | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 4,819 | 2,849 | |
1-4 family residential | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 890 | 666 | |
1-4 family residential | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 414 | 596 | |
Multi-family residential | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Current | 58,198 | 38,386 | |
Ending balance | 58,198 | 38,386 | 38,523 |
Consumer | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 512 | 633 | |
Current | 52,803 | 54,144 | |
Ending balance | 53,315 | 54,777 | 53,947 |
Consumer | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 341 | 526 | |
Consumer | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 81 | 51 | |
Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 90 | 56 | |
Agricultural | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 65 | 205 | |
Current | 18,663 | 23,072 | |
Ending balance | 18,728 | 23,277 | 24,184 |
Agricultural | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 65 | 105 | |
Agricultural | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 59 | ||
Agricultural | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total past due loans | 41 | ||
Overdrafts | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Current | 330 | 382 | |
Ending balance | $ 330 | $ 382 | $ 326 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES - Schedule of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | $ 10,881 | $ 5,891 |
Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 15 | 366 |
Construction and development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 106 | 0 |
Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 6,966 | 3,700 |
Farmland | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 133 | 140 |
1-4 family residential | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 3,403 | 1,567 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 214 | 66 |
Agricultural | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | $ 44 | $ 52 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES - Troubled Debt Restructuring (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019USD ($)contract | Sep. 30, 2018USD ($)contract | Dec. 31, 2018USD ($)contract | |
Financing Receivable, Modifications [Line Items] | |||
Total | $ 7,415 | $ 1,196 | |
Specific reserves on TDRs | $ 184 | $ 0 | |
Troubled Debt Restructurings: | |||
Number of Contracts | contract | 4 | 2 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 1,680 | $ 93 | $ 582 |
Post-Modification Outstanding Recorded Investment | $ 1,515 | $ 93 | $ 582 |
Commercial real estate | |||
Troubled Debt Restructurings: | |||
Number of Contracts | contract | 4 | ||
Pre-Modification Outstanding Recorded Investment | $ 1,680 | ||
Post-Modification Outstanding Recorded Investment | 1,515 | ||
Commercial and industrial | |||
Troubled Debt Restructurings: | |||
Number of Contracts | contract | 3 | ||
Pre-Modification Outstanding Recorded Investment | $ 504 | ||
Post-Modification Outstanding Recorded Investment | $ 504 | ||
1-4 family residential | |||
Troubled Debt Restructurings: | |||
Number of Contracts | contract | 1 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 15 | $ 78 | |
Post-Modification Outstanding Recorded Investment | $ 15 | 78 | |
Farmland | |||
Troubled Debt Restructurings: | |||
Number of Contracts | contract | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 78 | ||
Post-Modification Outstanding Recorded Investment | $ 78 | ||
Nonaccrual TDRs | |||
Financing Receivable, Modifications [Line Items] | |||
Total | 118 | 335 | |
Performing TDRs | |||
Financing Receivable, Modifications [Line Items] | |||
Total | $ 7,297 | $ 861 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES - Narrative (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||
Increase in allowance for loan losses due to TDRs | $ 0 | $ 0 |
Troubled debt restructuring charge-offs | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Impaired Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Unpaid Principal Balance [Abstract] | ||
Unpaid Principal Balance, With no related allowance recorded | $ 7,897 | $ 8,356 |
Unpaid Principal Balance, With related allowance recorded | 13,486 | 3,000 |
Unpaid Principal Balance | 21,383 | 11,356 |
Recorded Investment [Abstract] | ||
Recorded Investment, With no related allowance recorded | 7,897 | 8,356 |
Recorded Investment, With related allowance recorded | 13,486 | 3,000 |
Recorded Investment, With related allowance recorded | 21,383 | 11,356 |
Related Allowance [Abstract] | ||
Related Allowance | 1,268 | 493 |
Average Recorded Investment [Abstract] | ||
Average Recorded Investment, With no related allowance recorded | 5,692 | 8,202 |
Average Recorded Investment, With related allowance recorded | 6,128 | 1,348 |
Average Recorded Investment, With related allowance recorded | 11,820 | 9,550 |
Commercial and industrial | ||
Unpaid Principal Balance [Abstract] | ||
Unpaid Principal Balance, With no related allowance recorded | 302 | 837 |
Unpaid Principal Balance, With related allowance recorded | 185 | |
Recorded Investment [Abstract] | ||
Recorded Investment, With no related allowance recorded | 302 | 837 |
Recorded Investment, With related allowance recorded | 185 | |
Related Allowance [Abstract] | ||
Related Allowance | 64 | |
Average Recorded Investment [Abstract] | ||
Average Recorded Investment, With no related allowance recorded | 239 | 842 |
Average Recorded Investment, With related allowance recorded | 61 | 300 |
Construction and development | ||
Unpaid Principal Balance [Abstract] | ||
Unpaid Principal Balance, With no related allowance recorded | 1,325 | 720 |
Unpaid Principal Balance, With related allowance recorded | 530 | |
Recorded Investment [Abstract] | ||
Recorded Investment, With no related allowance recorded | 1,325 | 720 |
Recorded Investment, With related allowance recorded | 530 | |
Related Allowance [Abstract] | ||
Related Allowance | 4 | |
Average Recorded Investment [Abstract] | ||
Average Recorded Investment, With no related allowance recorded | 938 | 518 |
Average Recorded Investment, With related allowance recorded | 44 | |
Commercial real estate | ||
Unpaid Principal Balance [Abstract] | ||
Unpaid Principal Balance, With no related allowance recorded | 3,923 | 5,168 |
Unpaid Principal Balance, With related allowance recorded | 13,299 | 1,985 |
Recorded Investment [Abstract] | ||
Recorded Investment, With no related allowance recorded | 3,923 | 5,168 |
Recorded Investment, With related allowance recorded | 13,299 | 1,985 |
Related Allowance [Abstract] | ||
Related Allowance | 1,186 | 341 |
Average Recorded Investment [Abstract] | ||
Average Recorded Investment, With no related allowance recorded | 3,115 | 5,138 |
Average Recorded Investment, With related allowance recorded | 5,892 | 677 |
Farmland | ||
Unpaid Principal Balance [Abstract] | ||
Unpaid Principal Balance, With related allowance recorded | 133 | 140 |
Recorded Investment [Abstract] | ||
Recorded Investment, With related allowance recorded | 133 | 140 |
Related Allowance [Abstract] | ||
Related Allowance | 62 | 78 |
Average Recorded Investment [Abstract] | ||
Average Recorded Investment, With no related allowance recorded | 62 | |
Average Recorded Investment, With related allowance recorded | 102 | 147 |
1-4 family residential | ||
Unpaid Principal Balance [Abstract] | ||
Unpaid Principal Balance, With no related allowance recorded | 2,283 | 1,223 |
Unpaid Principal Balance, With related allowance recorded | 54 | 160 |
Recorded Investment [Abstract] | ||
Recorded Investment, With no related allowance recorded | 2,283 | 1,223 |
Recorded Investment, With related allowance recorded | 54 | 160 |
Related Allowance [Abstract] | ||
Related Allowance | 20 | 6 |
Average Recorded Investment [Abstract] | ||
Average Recorded Investment, With no related allowance recorded | 1,225 | 1,132 |
Average Recorded Investment, With related allowance recorded | 73 | 128 |
Multi-family residential | ||
Average Recorded Investment [Abstract] | ||
Average Recorded Investment, With no related allowance recorded | 54 | |
Agricultural | ||
Unpaid Principal Balance [Abstract] | ||
Unpaid Principal Balance, With no related allowance recorded | 64 | 408 |
Recorded Investment [Abstract] | ||
Recorded Investment, With no related allowance recorded | 64 | 408 |
Average Recorded Investment [Abstract] | ||
Average Recorded Investment, With no related allowance recorded | $ 175 | 456 |
Average Recorded Investment, With related allowance recorded | $ 52 |
SECURITIES SOLD UNDER AGREEME_3
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER DEBT - Narrative (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Securities sold under agreements to repurchase | $ 11,363,000 | $ 12,228,000 |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, current borrowing capacity | 25,000,000 | |
Long-term line of credit | $ 0 |
SECURITIES SOLD UNDER AGREEME_4
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER DEBT - Summary of Fixed-Rate Advances (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
Federal Home Loan Bank advances | $ 60,623 | $ 115,136 |
Fixed-rate Advances, With Monthly Interest Payments | ||
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | ||
2019 (percent) | 1.83% | |
2020 (percent) | 2.09% | |
2021 (percent) | 1.87% | |
2022 (percent) | 1.99% | |
Thereafter | 1.76% | |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
2019 | $ 45,000 | |
2020 | 6,500 | |
2021 | 1,500 | |
2022 | 1,500 | |
Thereafter | 6,000 | |
Federal Home Loan Bank advances | $ 60,500 | |
Fixed-rate Advances, With Monthly Principal and Interest Payments | ||
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | ||
2021 (percent) | 1.38% | |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
2021 | $ 123 | |
Federal Home Loan Bank advances | $ 60,623 |
SUBORDINATED DEBENTURES - Sched
SUBORDINATED DEBENTURES - Schedule of Subordinated Debentures (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Subordinated debentures | $ 11,310 | $ 12,810 |
Trust II Debentures | ||
Debt Instrument [Line Items] | ||
Subordinated debentures | 3,093 | 3,093 |
Trust III Debentures | ||
Debt Instrument [Line Items] | ||
Subordinated debentures | 2,062 | 2,062 |
DCB Trust I Debentures | ||
Debt Instrument [Line Items] | ||
Subordinated debentures | 5,155 | 5,155 |
Other debentures | ||
Debt Instrument [Line Items] | ||
Subordinated debentures | $ 1,000 | $ 2,500 |
SUBORDINATED DEBENTURES - Narra
SUBORDINATED DEBENTURES - Narrative (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2019 | Jan. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | May 31, 2017 | Sep. 30, 2019 | Dec. 31, 2015 | Jul. 31, 2015 | |
Debt Instrument [Line Items] | ||||||||
Liquidation value per share | $ 1,000 | |||||||
Debentures mature date | 30 years | |||||||
Subordinated debentures | Trust II Debentures | ||||||||
Debt Instrument [Line Items] | ||||||||
Debenture issued | $ 3,093,000 | |||||||
Subordinated debentures | Trust II Debentures | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Notice period required for redemption of debentures | 30 days | |||||||
Subordinated debentures | Trust II Debentures | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Notice period required for redemption of debentures | 60 days | |||||||
Redemption price of debentures as a percentage of principal | 100.00% | |||||||
Subordinated debentures | Trust II Debentures | 3 Month LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Spread on variable rate | 3.35% | |||||||
Subordinated debentures | Trust III Debentures | ||||||||
Debt Instrument [Line Items] | ||||||||
Debenture issued | $ 2,062,000 | |||||||
Subordinated debentures | Trust III Debentures | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Notice period required for redemption of debentures | 30 days | |||||||
Subordinated debentures | Trust III Debentures | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Notice period required for redemption of debentures | 60 days | |||||||
Redemption price of debentures as a percentage of principal | 100.00% | |||||||
Subordinated debentures | Trust III Debentures | 3 Month LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Spread on variable rate | 1.67% | |||||||
Subordinated debentures | DCB Trust I Debentures | ||||||||
Debt Instrument [Line Items] | ||||||||
Debenture issued | $ 5,155,000 | |||||||
Subordinated debentures | DCB Trust I Debentures | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Notice period required for redemption of debentures | 30 days | |||||||
Subordinated debentures | DCB Trust I Debentures | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Notice period required for redemption of debentures | 60 days | |||||||
Redemption price of debentures as a percentage of principal | 100.00% | |||||||
Subordinated debentures | DCB Trust I Debentures | 3 Month LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Spread on variable rate | 1.80% | |||||||
Subordinated debentures | Other Debentures Issued in July 2015 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debenture issued | $ 4,000,000 | |||||||
Debentures that matured and were paid off | $ 1,000,000 | $ 1,000,000 | ||||||
Repayments of related party debt | $ 3,000,000 | |||||||
Subordinated debentures | Other Debentures Issued in July 2015 | Directors and Related Parties | ||||||||
Debt Instrument [Line Items] | ||||||||
Debenture issued | $ 3,000,000 | |||||||
Subordinated debentures | Other Subordinated Debentures Issued in July 2015, 2.50%, Maturing July 1, 2017 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 2.50% | |||||||
Debentures that matured and were paid off | $ 500,000 | |||||||
Subordinated debentures | Other Subordinated Debentures Issued in July 2015, 4.00%, Maturing January 1, 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 4.00% | |||||||
Debentures that matured and were paid off | $ 500,000 | |||||||
Subordinated debentures | Other Debentures Issued in December 2015 | ||||||||
Debt Instrument [Line Items] | ||||||||
Notice period required for redemption of debentures | 30 days | |||||||
Redemption price of debentures as a percentage of principal | 100.00% | |||||||
Debenture issued | $ 1,000,000 | $ 5,000,000 | ||||||
Repayments of related party debt | $ 2,000,000 | |||||||
Debenture issued, par value per instrument issued | $ 500,000 | |||||||
Debt instrument maturity start date | Jan. 1, 2020 | |||||||
Debt instrument maturity end date | Jul. 1, 2020 | |||||||
Subordinated debentures | Other Debentures Issued in December 2015 | Directors and Related Parties | ||||||||
Debt Instrument [Line Items] | ||||||||
Debenture issued | $ 2,500,000 | |||||||
Subordinated debentures | Other Debentures Issued in December 2015 | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 4.50% | |||||||
Subordinated debentures | Other Debentures Issued in December 2015 | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 5.00% |
SUBORDINATED DEBENTURES - Sch_2
SUBORDINATED DEBENTURES - Schedule of Trusts (Details) $ in Thousands | Sep. 30, 2019USD ($)shares |
Trust II | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Common securities liquidation value | $ 93 |
Trust III | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Common securities liquidation value | 62 |
DCB Trust I | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Common securities liquidation value | $ 155 |
Capital trust pass-through securities | Trust II | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Number of shares (in shares) | shares | 3,000 |
Original liquidation value | $ 3,000 |
Capital trust pass-through securities | Trust III | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Number of shares (in shares) | shares | 2,000 |
Original liquidation value | $ 2,000 |
Capital trust pass-through securities | DCB Trust I | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Number of shares (in shares) | shares | 5,000 |
Original liquidation value | $ 5,000 |
SUBORDINATED DEBENTURES - Sch_3
SUBORDINATED DEBENTURES - Schedule of Terms of Subordinated Debentures (Details) - Subordinated debentures $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Trust II Debentures | |
Debt Instrument [Line Items] | |
Original amount | $ 3,093 |
Maturity date | Oct. 30, 2032 |
Original amount | Quarterly |
Trust III Debentures | |
Debt Instrument [Line Items] | |
Original amount | $ 2,062 |
Maturity date | Oct. 1, 2036 |
Original amount | Quarterly |
DCB Trust I Debentures | |
Debt Instrument [Line Items] | |
Original amount | $ 5,155 |
Maturity date | Jun. 15, 2037 |
Original amount | Quarterly |
STOCK OPTIONS - Narrative (Deta
STOCK OPTIONS - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost, nonvested options | $ 2,255 | |
Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost, nonvested options, period for recognition | 3 years 5 months 23 days | |
Restricted Stock | Minimum | Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 5 years | |
2015 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares permitted for grant (in shares) | 1,000,000 | |
2015 Equity Incentive Plan | Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Contractual term | 10 years | |
Share-based compensation expense | $ 493 | $ 378 |
2015 Equity Incentive Plan | Option | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 5 years | |
2015 Equity Incentive Plan | Option | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 10 years |
STOCK OPTIONS - Schedule of Opt
STOCK OPTIONS - Schedule of Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | ||||
Outstanding at beginning of year (in shares) | 537,872 | 469,044 | 469,044 | |
Granted (in shares) | 35,000 | 90,000 | ||
Exercised (in shares) | (22,172) | (6,000) | ||
Forfeited (in shares) | (26,400) | (11,800) | ||
Balance (in shares) | 524,300 | 541,244 | 537,872 | 469,044 |
Exercisable | ||||
Outstanding (in shares) | 235,680 | 171,184 | ||
Weighted-average exercise price (in USD per share) | $ 25.22 | $ 24.29 | ||
Weighted-average remaining contractual life in years | 5 years 5 months 1 day | 5 years 9 months 21 days | ||
Aggregate intrinsic value | $ 1,307 | $ 1,024 | ||
Weighted-Average Exercise Price | ||||
Outstanding at beginning of year (in USD per share) | $ 26.49 | $ 25.11 | $ 25.11 | |
Granted (in USD per share) | 29.85 | 32.59 | ||
Exercised (in USD per share) | 24.93 | 23.33 | ||
Forfeited (in USD per share) | 29.53 | 23.41 | ||
Balance (in USD per share) | $ 26.63 | $ 26.41 | $ 26.49 | $ 25.11 |
Weighted-Average Remaining Contractual Life in Years | ||||
Outstanding | 6 years 4 months 17 days | 7 years 1 month 13 days | 6 years 11 months 15 days | 7 years 3 months 25 days |
Granted | 9 years 7 months 9 days | 9 years 8 months 19 days | ||
Exercised | 5 years 3 months 14 days | 5 years 11 months 23 days | ||
Forfeited | 8 years 2 months 12 days | 5 years 8 months 26 days | ||
Aggregate Intrinsic Value | ||||
Outstanding | $ 2,088 | $ 2,623 | $ 2,623 | |
Granted | 26 | 0 | ||
Exercised | 125 | 41 | ||
Forfeited | 46 | 81 | ||
Outstanding | $ 2,255 | $ 2,320 | $ 2,088 | $ 2,623 |
STOCK OPTIONS - Schedule of Non
STOCK OPTIONS - Schedule of Nonvested Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | ||||
Outstanding at beginning of year (in shares) | 331,560 | 334,400 | 334,400 | |
Granted (in shares) | 35,000 | 90,000 | ||
Vested (in shares) | (54,340) | (44,940) | ||
Forfeited (in shares) | (23,600) | (9,400) | ||
Balance (in shares) | 288,620 | 370,060 | 331,560 | 334,400 |
Weighted-Average Exercise Price | ||||
Outstanding at beginning of year (in USD per share) | $ 27.74 | $ 25.72 | $ 25.72 | |
Granted (in USD per share) | 29.85 | 32.59 | ||
Vested (in USD per share) | 28.10 | 26.19 | ||
Forfeited (in USD per share) | 33.03 | 29.38 | ||
Balance (in USD per share) | $ 27.78 | $ 27.39 | $ 27.74 | $ 25.72 |
Weighted-Average Remaining Contractual Life in Years | ||||
Outstanding | 7 years 1 month 28 days | 7 years 8 months 19 days | 7 years 9 months 7 days | 7 years 10 months 28 days |
Granted | 9 years 7 months 9 days | 9 years 8 months 19 days | ||
Vested | 7 years 5 months 23 days | 8 years 14 days | ||
Forfeited | 9 years 2 months 4 days | 7 years 2 months 12 days | ||
Aggregate Intrinsic Value | ||||
Outstanding | $ 975 | $ 1,673 | $ 1,673 | |
Granted | 26 | 0 | ||
Vested | 172 | 199 | ||
Forfeited | 46 | 81 | ||
Outstanding | $ 949 | $ 1,297 | $ 975 | $ 1,673 |
STOCK OPTIONS - Summary of Rest
STOCK OPTIONS - Summary of Restricted Stock Awards and Units Activity (Details) - Restricted Stock Awards And Units [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Number of Shares | ||
Outstanding at beginning of year (in shares) | 2,398 | 2,398 |
Granted (in shares) | 30,500 | 0 |
Exercised (in shares) | (1,439) | 0 |
Forfeited (in shares) | 0 | 0 |
Balance (in shares) | 31,459 | 2,398 |
Outstanding (in shares) | 0 | 959 |
Outstanding at beginning of year | $ 31.57 | $ 31.57 |
Granted | 30.25 | 0 |
Exercised | 31.57 | 0 |
Forfeited | 0 | 0 |
Balance | 29.33 | 31.57 |
Exercisable at end of period | $ 0 | $ 0 |
STOCK OPTIONS - Summary of Nonv
STOCK OPTIONS - Summary of Nonvested Restricted Stock Awards and Units Activity (Details) - Restricted Stock Awards And Units [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Number of Shares | ||
Outstanding at beginning of year (in shares) | 1,439 | 2,398 |
Granted (in shares) | 30,500 | 0 |
Vested (in shares) | (480) | (959) |
Forfeited (in shares) | 0 | 0 |
Balance (in shares) | 31,459 | 1,439 |
Outstanding at beginning of year | $ 31.57 | $ 31.57 |
Granted | 30.25 | 0 |
Vested | 31.57 | 31.57 |
Forfeited | 0 | 0 |
Balance | $ 29.33 | $ 31.57 |
STOCK OPTIONS - Information Rel
STOCK OPTIONS - Information Related to Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Intrinsic value of options exercised | $ 125 | $ 41 |
Cash received from options exercised | $ 553 | $ 140 |
Weighted average fair value of options granted (in USD per share) | $ 16.75 | $ 5.62 |
EMPLOYEE BENEFITS - Narrative (
EMPLOYEE BENEFITS - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employee stock ownership plan, maximum employer contribution as a percentage of participant's qualified compensation | 5.00% | ||
Employee stock ownership plan, total contributions accrued or paid | $ 973 | $ 856 | |
Employee stock ownership plan, shares held under plan (in shares) | 1,262,078 | 1,333,496 | |
Employee stock ownership plan, unallocated shares (in shares) | 0 | 0 | |
Cash surrender value of life insurance | $ 34,280 | $ 26,301 | |
Bonus expense | 2,304 | 2,170 | 2,943 |
Executive Incentive Retirement Plan | Postretirement Life Insurance | Nonqualified Plan | Unfunded Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash surrender value of life insurance | 34,280 | 26,301 | |
Plan cost | 504 | $ 419 | 502 |
Plan obligation | $ 4,023 | $ 3,667 |
LEASES - Additional Information
LEASES - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Operating leases, remaining lease term | 10 years |
Operating leases, option to extend | 5 years |
Operating lease right-of-use assets | $ 11,360,000 |
Operating lease right-of-use liabilities | 11,400,000 |
Additional operating leases commenced | 0 |
Occupancy Expenses [Member] | |
Operating leases, rental expense | $ 1,306,000 |
Minimum | |
Operating leases, remaining lease term | 1 year |
Maximum | |
Operating leases, remaining lease term | 15 years |
LEASES - Schedule of Summarizes
LEASES - Schedule of Summarizes Other Information Related to Operating Leases (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Operating leases | |
Operating lease right-of-use assets | $ 11,360 |
Operating lease liabilities | $ 11,433 |
Weighted average remaining lease term | |
Operating leases, remaining lease term | 10 years |
Weighted average discount rate | |
Operating leases | 2.74% |
LEASES - Schedule of Minimum Fu
LEASES - Schedule of Minimum Future Lease Payments Under Non-Cancelable Operating Leases (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 444 |
2020 | 1,536 |
2021 | 1,340 |
2022 | 1,229 |
2023 | 1,219 |
Thereafter | 7,340 |
Total lease payments | 13,108 |
Less: interest | (1,675) |
Operating lease liability | $ 11,433 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Expense and Effective Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 1,634 | $ 1,160 | $ 4,205 | $ 3,126 |
Effective tax rate | 17.83% | 18.56% | 18.19% | 18.16% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Federal statutory tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | |||||
Ineffectiveness included in net income | $ 0 | ||||
Interest expense | $ 5,770,000 | $ 5,446,000 | 18,337,000 | $ 13,679,000 | |
Unrealized loss to be reclassified as a reduction of interest expense | 0 | ||||
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Notional amount | $ 5,000,000 | 5,000,000 | $ 5,000,000 | ||
Interest expense | $ 495,000 | $ 516,000 | $ 687,000 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Interest Rate Swaps (Details) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Interest Rate Swap, 3 month LIBOR plus 1.67% | ||
Derivative [Line Items] | ||
Notional Amount | $ 2,000,000 | $ 2,000,000 |
Pay Rate | 5.979% | 5.979% |
Effective Date | Oct. 1, 2016 | Oct. 1, 2016 |
Maturity in Years | 6 years 6 months | 7 years 3 months |
Unrealized Losses | $ 356,000 | $ 220,000 |
Interest Rate Swap, 3 month LIBOR plus 1.67% | LIBOR | ||
Derivative [Line Items] | ||
Receive Rate | 1.67% | 1.67% |
Interest Rate Swap, 3 month LIBOR plus 3.35% | ||
Derivative [Line Items] | ||
Notional Amount | $ 3,000,000 | $ 3,000,000 |
Pay Rate | 7.505% | 7.505% |
Effective Date | Oct. 30, 2012 | Oct. 30, 2012 |
Maturity in Years | 3 years 29 days | 3 years 9 months 29 days |
Unrealized Losses | $ 240,000 | $ 173,000 |
Interest Rate Swap, 3 month LIBOR plus 3.35% | LIBOR | ||
Derivative [Line Items] | ||
Receive Rate | 3.35% | 3.35% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Other Commitments [Line Items] | ||
FHLB letters of credit | $ 2,000,000 | |
Letters of credit | ||
Other Commitments [Line Items] | ||
Potential guarantee obligation | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Commitments and Letters of Credit (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Off-balance sheet liability | $ 381,699 | $ 342,523 |
Letters of credit | ||
Other Commitments [Line Items] | ||
Off-balance sheet liability | $ 9,069 | $ 11,675 |
REGULATORY MATTERS - Narrative
REGULATORY MATTERS - Narrative (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Common equity tier 1 capital to risk-weighted assets: | |||||
Capital conservation buffer percentage, increase | 0.625% | 0.625% | 0.625% | ||
Subordinated debentures | Subordinated Debentures II, Subordinated Debentures III, and DCB Debentures I | |||||
Common equity tier 1 capital to risk-weighted assets: | |||||
Debenture issued | $ 10,310,000 | $ 10,310,000 | |||
Minimum | |||||
Common equity tier 1 capital to risk-weighted assets: | |||||
Capital conservation buffer percentage | 0.625% | ||||
Maximum | |||||
Common equity tier 1 capital to risk-weighted assets: | |||||
Capital conservation buffer percentage | 2.50% |
REGULATORY MATTERS - Comparison
REGULATORY MATTERS - Comparison of the Company's and Bank's Actual Capital Amounts and Ratios to Required Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Total capital to risk-weighted assets: | ||
Actual, Amount | $ 248,009 | $ 241,791 |
Actual, Ratio | 13.22% | 13.25% |
Minimum Required for Capital Adequacy Purposes, Amount | $ 150,082 | $ 146,020 |
Minimum Required for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Minimum Required Under Basel III Fully Phased-In, Amount | $ 196,983 | $ 191,651 |
Minimum Required Under Basel III Fully Phased-In, Ratio | 10.50% | 10.50% |
Tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 231,615 | $ 227,140 |
Actual, Ratio | 12.35% | 12.44% |
Minimum Required for Capital Adequacy Purposes, Amount | $ 112,562 | $ 109,515 |
Minimum Required for Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
Minimum Required Under Basel III Fully Phased-In, Amount | $ 159,462 | $ 155,146 |
Minimum Required Under Basel III Fully Phased-In, Ratio | 8.50% | 8.50% |
Tier 1 capital to average assets: | ||
Actual, Amount | $ 231,615 | $ 227,140 |
Actual, Ratio | 10.16% | 10.16% |
Minimum Required for Capital Adequacy Purposes, Amount | $ 91,205 | $ 89,422 |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Minimum Required Under Basel III Fully Phased-In, Amount | $ 91,205 | $ 89,422 |
Minimum Required Under Basel III Fully Phased-In, Ratio | 4.00% | 4.00% |
Common equity tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 221,305 | $ 216,830 |
Actual, Ratio | 11.80% | 11.88% |
Minimum Required for Capital Adequacy Purposes, Amount | $ 84,421 | $ 82,136 |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Minimum Required Under Basel III Fully Phased-In, Amount | $ 131,322 | $ 127,768 |
Minimum Required Under Basel III Fully Phased-In, Ratio | 7.00% | 7.00% |
Bank | ||
Total capital to risk-weighted assets: | ||
Actual, Amount | $ 246,851 | $ 242,142 |
Actual, Ratio | 12.89% | 13.27% |
Minimum Required for Capital Adequacy Purposes, Amount | $ 153,230 | $ 146,015 |
Minimum Required for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Minimum Required Under Basel III Fully Phased-In, Amount | $ 201,114 | $ 191,645 |
Minimum Required Under Basel III Fully Phased-In, Ratio | 10.50% | 10.50% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 191,537 | $ 182,519 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 230,457 | $ 227,491 |
Actual, Ratio | 12.03% | 12.46% |
Minimum Required for Capital Adequacy Purposes, Amount | $ 114,922 | $ 109,511 |
Minimum Required for Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
Minimum Required Under Basel III Fully Phased-In, Amount | $ 162,807 | $ 155,141 |
Minimum Required Under Basel III Fully Phased-In, Ratio | 8.50% | 8.50% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 153,230 | $ 146,015 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Tier 1 capital to average assets: | ||
Actual, Amount | $ 230,457 | $ 227,491 |
Actual, Ratio | 10.04% | 10.18% |
Minimum Required for Capital Adequacy Purposes, Amount | $ 91,784 | $ 89,414 |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Minimum Required Under Basel III Fully Phased-In, Amount | $ 91,784 | $ 89,414 |
Minimum Required Under Basel III Fully Phased-In, Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 114,730 | $ 111,768 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Common equity tier 1 capital to risk-weighted assets: | ||
Actual, Amount | $ 230,457 | $ 227,491 |
Actual, Ratio | 12.03% | 12.46% |
Minimum Required for Capital Adequacy Purposes, Amount | $ 86,192 | $ 82,134 |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Minimum Required Under Basel III Fully Phased-In, Amount | $ 134,076 | $ 127,763 |
Minimum Required Under Basel III Fully Phased-In, Ratio | 7.00% | 7.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 124,499 | $ 118,637 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
FAIR VALUE - Schedule of Financ
FAIR VALUE - Schedule of Financial Assets (Liabilities) Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 221,345 | $ 232,975 |
Loans held for sale | 3,841 | |
Cash surrender value of life insurance | 34,280 | 26,301 |
SBA servicing assets | 706 | |
Derivative instrument assets | 596 | |
Derivative instrument liabilities | (596) | |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 88,067 | 89,459 |
Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 96,786 | 108,969 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 20,219 | 18,954 |
Assets (liabilities) at fair value on a recurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instrument liabilities | (392) | |
Assets (liabilities) at fair value on a recurring basis: | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 88,067 | 89,459 |
Assets (liabilities) at fair value on a recurring basis: | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 96,786 | 108,969 |
Assets (liabilities) at fair value on a recurring basis: | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 20,219 | 18,954 |
Assets at fair value on a nonrecurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 20,115 | 10,863 |
Other real estate owned | 551 | 751 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 16,273 | 15,593 |
Municipal securities | Assets (liabilities) at fair value on a recurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 16,273 | 15,593 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | |
Cash surrender value of life insurance | 0 | |
SBA servicing assets | 0 | |
Derivative instrument assets | 0 | |
Derivative instrument liabilities | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Assets (liabilities) at fair value on a recurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instrument liabilities | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Assets (liabilities) at fair value on a recurring basis: | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Assets (liabilities) at fair value on a recurring basis: | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Assets (liabilities) at fair value on a recurring basis: | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Assets at fair value on a nonrecurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal securities | Assets (liabilities) at fair value on a recurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | |
Cash surrender value of life insurance | 34,280 | |
SBA servicing assets | 0 | |
Derivative instrument assets | 596 | |
Derivative instrument liabilities | (596) | |
Significant Other Observable Inputs (Level 2) | Assets (liabilities) at fair value on a recurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instrument liabilities | (392) | |
Significant Other Observable Inputs (Level 2) | Assets (liabilities) at fair value on a recurring basis: | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 88,067 | 89,459 |
Significant Other Observable Inputs (Level 2) | Assets (liabilities) at fair value on a recurring basis: | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 96,786 | 108,969 |
Significant Other Observable Inputs (Level 2) | Assets (liabilities) at fair value on a recurring basis: | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 20,219 | 18,954 |
Significant Other Observable Inputs (Level 2) | Assets at fair value on a nonrecurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Municipal securities | Assets (liabilities) at fair value on a recurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 16,273 | 15,593 |
Significant Other Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 3,841 | |
Cash surrender value of life insurance | 0 | |
SBA servicing assets | 706 | |
Derivative instrument assets | 0 | |
Derivative instrument liabilities | 0 | |
Significant Other Unobservable Inputs (Level 3) | Assets (liabilities) at fair value on a recurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instrument liabilities | 0 | |
Significant Other Unobservable Inputs (Level 3) | Assets (liabilities) at fair value on a recurring basis: | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) | Assets (liabilities) at fair value on a recurring basis: | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) | Assets (liabilities) at fair value on a recurring basis: | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) | Assets at fair value on a nonrecurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 20,115 | 10,863 |
Other real estate owned | 551 | 751 |
Significant Other Unobservable Inputs (Level 3) | Municipal securities | Assets (liabilities) at fair value on a recurring basis: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 0 | $ 0 |
FAIR VALUE - Fair Value of Fore
FAIR VALUE - Fair Value of Foreclosed Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Carrying Value | Other real estate owned remeasured at initial recognition | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | $ 137 | $ 542 | $ 180 |
Carrying Value | Other real estate owned remeasured subsequent to initial recognition | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | 0 | 599 | 599 |
Charge-offs | Other real estate owned remeasured at initial recognition | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | (9) | (25) | (23) |
Charge-offs | Other real estate owned remeasured subsequent to initial recognition | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | 0 | (56) | (56) |
Fair Value | Other real estate owned remeasured at initial recognition | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | 128 | 517 | 157 |
Fair Value | Other real estate owned remeasured subsequent to initial recognition | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | $ 0 | $ 543 | $ 543 |
FAIR VALUE - Schedule of Quanti
FAIR VALUE - Schedule of Quantitative Information About Nonrecurring Level 3 Fair Value Measurements (Details) $ in Thousands | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Assets at fair value on a nonrecurring basis: | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | $ 20,115 | $ 10,863 |
Other real estate owned | 551 | 751 |
Assets at fair value on a nonrecurring basis: | Significant Other Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | 20,115 | 10,863 |
Other real estate owned | 551 | 751 |
Cost to Sell | Impaired loans | Fair value of collateral- sales comparison approach | Assets at fair value on a nonrecurring basis: | Significant Other Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | 20,115 | 10,863 |
Cost to Sell | Other real estate owned | Appraisal value of collateral | Assets at fair value on a nonrecurring basis: | Significant Other Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned | $ 551 | $ 751 |
Minimum | Cost to Sell | Other real estate owned | Appraisal value of collateral | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, input (percent) | 0.10 | 0.10 |
Minimum | Cost to Sell | Real Estate | Impaired loans | Fair value of collateral- sales comparison approach | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, input (percent) | 0.10 | 0.10 |
Minimum | Cost to Sell | Equipment | Impaired loans | Fair value of collateral- sales comparison approach | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, input (percent) | 0.10 | 0.10 |
Maximum | Cost to Sell | Other real estate owned | Appraisal value of collateral | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, input (percent) | 0.20 | 0.20 |
Maximum | Cost to Sell | Real Estate | Impaired loans | Fair value of collateral- sales comparison approach | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, input (percent) | 0.20 | 0.20 |
Maximum | Cost to Sell | Equipment | Impaired loans | Fair value of collateral- sales comparison approach | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, input (percent) | 0.20 | 0.20 |
Weighted Average | Cost to Sell | Other real estate owned | Appraisal value of collateral | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, input (percent) | 0.16 | 0.16 |
Weighted Average | Cost to Sell | Real Estate | Impaired loans | Fair value of collateral- sales comparison approach | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, input (percent) | 0.16 | 0.16 |
Weighted Average | Cost to Sell | Equipment | Impaired loans | Fair value of collateral- sales comparison approach | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, input (percent) | 0.12 | 0.19 |
FAIR VALUE - Schedule of Carryi
FAIR VALUE - Schedule of Carrying Amounts and Estimated Fair Value of Assets And Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Marketable securities held to maturity | $ 162,165 | $ 162,800 |
Reported Value Measurement | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | 58,648 | 71,510 |
Marketable securities held to maturity | 156,925 | 163,164 |
Loans, net | 1,720,595 | 1,645,444 |
Accrued interest receivable | 7,825 | 9,292 |
Nonmarketable equity securities | 11,644 | 14,937 |
Cash surrender value of life insurance | 34,280 | 26,301 |
Financial liabilities: | ||
Deposits | 1,963,313 | 1,871,480 |
Securities sold under repurchase agreements | 11,363 | 12,228 |
Accrued interest payable | 1,719 | 1,651 |
Federal Home Loan Bank advances | 60,623 | 115,136 |
Subordinated debentures | 11,310 | 12,810 |
Fair Value | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | 58,648 | 71,510 |
Marketable securities held to maturity | 162,165 | 162,800 |
Loans, net | 1,719,467 | 1,630,600 |
Accrued interest receivable | 7,825 | 9,292 |
Nonmarketable equity securities | 11,644 | 14,937 |
Cash surrender value of life insurance | 34,280 | 26,301 |
Financial liabilities: | ||
Deposits | 1,966,565 | 1,870,632 |
Securities sold under repurchase agreements | 11,363 | 12,228 |
Accrued interest payable | 1,719 | 1,651 |
Federal Home Loan Bank advances | 60,634 | 114,934 |
Subordinated debentures | 9,153 | 10,724 |
Fair Value | Level 1 Inputs | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | 58,648 | 71,510 |
Marketable securities held to maturity | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Nonmarketable equity securities | 0 | 0 |
Cash surrender value of life insurance | 0 | 0 |
Financial liabilities: | ||
Deposits | 1,432,490 | 1,435,985 |
Securities sold under repurchase agreements | 0 | 0 |
Accrued interest payable | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debentures | 0 | 0 |
Fair Value | Level 2 Inputs | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | 0 | 0 |
Marketable securities held to maturity | 162,165 | 162,800 |
Loans, net | 0 | 0 |
Accrued interest receivable | 7,825 | 9,292 |
Nonmarketable equity securities | 11,644 | 14,937 |
Cash surrender value of life insurance | 34,280 | 26,301 |
Financial liabilities: | ||
Deposits | 534,075 | 434,647 |
Securities sold under repurchase agreements | 11,363 | 12,228 |
Accrued interest payable | 1,719 | 1,651 |
Federal Home Loan Bank advances | 60,634 | 114,934 |
Subordinated debentures | 9,153 | 10,724 |
Fair Value | Level 3 Inputs | ||
Financial assets: | ||
Cash, due from banks, federal funds sold and interest-bearing deposits | 0 | 0 |
Marketable securities held to maturity | 0 | 0 |
Loans, net | 1,719,467 | 1,630,600 |
Accrued interest receivable | 0 | 0 |
Nonmarketable equity securities | 0 | 0 |
Cash surrender value of life insurance | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Securities sold under repurchase agreements | 0 | 0 |
Accrued interest payable | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debentures | $ 0 | $ 0 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator: | ||||
Net earnings (basic) | $ 7,530 | $ 5,091 | $ 18,910 | $ 14,084 |
Net earnings (diluted) | $ 7,530 | $ 5,091 | $ 18,910 | $ 14,084 |
Denominator: | ||||
Weighted-average shares outstanding (basic) (in shares) | 11,550,335 | 11,962,654 | 11,674,298 | 11,452,968 |
Effect of dilutive securities: | ||||
Common stock equivalent shares from stock options (in shares) | 62,538 | 70,780 | 58,844 | 100,539 |
Weighted-average shares outstanding (diluted) (in shares) | 11,612,873 | 12,033,434 | 11,733,142 | 11,553,507 |
Net earnings per share | ||||
Basic (in USD per share) | $ 0.65 | $ 0.43 | $ 1.62 | $ 1.23 |
Diluted (in USD per share) | $ 0.65 | $ 0.42 | $ 1.62 | $ 1.22 |